Legalize / United Kingdom / Public General Act

Finance Act 2021

Type Public General Act

Publication 2021-06-10

Last updated 2025-05-31

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(6) Nothing in this section authorises a disclosure of information which contravenes the data protection legislation (but in determining whether a disclosure would do so, take into account the powers conferred by this section).

(7) In this Part—

“data protection legislation” has the meaning given by section 3(9) of the Data Protection Act 2018;

“the register” means the register under subsection (1) and references to registration are to registration in it.

Liability to register: producers and importers

55

(1) A person (P) who—

(a) produces finished plastic packaging components, or

(b) on whose behalf finished plastic packaging components are imported,

becomes liable to be registered on a given day if subsection (2) applies in relation to P on that day (subject to subsection (5)).

(2) This subsection applies—

(a) on any day, where there are reasonable grounds for believing that the amount of finished plastic packaging components that will be produced by, or imported on behalf of, P within the period of 30 days beginning with that day will equal or exceed 10 metric tonnes, or

(b) on the first day of any calendar month, where the amount of finished plastic packaging components produced by, or imported on behalf of, P over the 12 months ending with the day before that day equals or exceeds 10 metric tonnes.

(3) Finished plastic packaging components to which section 52(1) or (3) applies are not to be taken into account for the purposes of subsection (2).

(4) In the application of subsection (2)(b) to the first day of a month falling within the year beginning with 1 April 2022, that paragraph has effect as if for “over the 12 months” there were substituted “ during the period beginning with 1 April 2022 and ”.

(5) Subsection (1) does not apply to any person for the time being listed in section 13B(1) of the Customs and Excise Duties (General Reliefs) Act 1979 (members of visiting forces etc).

(6) The Commissioners may by regulations make provision about the administration of the disapplication of subsection (1) by subsection (5), including provision making it subject to conditions or requirements set out in the regulations.

Notification of liability and registration

56

(1) A person who becomes liable to be registered under section 55 must notify the Commissioners of the liability before the end of the notification period.

(2) The “notification period” is the period of 30 days beginning with the day on which the liability arises.

(3) Where the Commissioners are satisfied that a person is liable to be registered (whether or not the person has notified liability under subsection (1)), the Commissioners must register the person with effect from the day on which the liability arises.

(4) Where an unincorporated body (other than a partnership) is registered in the name of the body concerned, no account is to be taken of any change in its members in determining how any provision of or under this Part applies in relation to the body.

(5) The Commissioners may by regulations make provision—

(a) about the form and manner in which a notification under this section is to be given;

(b) about the information to be contained in or provided with a notification under this section;

(d) requiring notifications and other communications with the Commissioners in connection with registration to be made electronically.

Cancellation of registration

57

(1) A registration under section 56 may be cancelled only in accordance with this section.

(2) The Commissioners may cancel a person's registration if—

(a) the person requests the cancellation, and

(b) the person satisfies the Commissioners that the person does not, on the day of the request, meet the liability condition.

(3) The Commissioners may cancel a person's registration if they are satisfied that the person does not meet the liability condition and has not met the liability condition for a period of at least 12 months.

(4) The Commissioners may cancel a person's registration if they are satisfied that the person did not meet the liability condition on the day on which the person was registered, and has not at any subsequent time met the liability condition.

(5) A cancellation under subsection (2) is to be made with effect from—

(a) the day on which the request is made, or

(b) such later day as may be agreed between the Commissioners and that person.

(6) A cancellation under subsection (3) is to be made with effect from—

(a) the day on which the person ceased to meet the liability condition, or

(b) such later day as may be agreed between the Commissioners and that person.

(7) A cancellation under subsection (4) is to be made with effect from the day on which the person was registered.

(8) But the Commissioners must not cancel a person's registration under subsection (2) or (3) if—

(a) there are outstanding amounts of plastic packaging tax, or amounts recoverable as plastic packaging tax, due from that person, or

(b) there are one or more outstanding returns for the purposes of plastic packaging tax due from that person.

(9) The Commissioners may decline to cancel a person's registration on any day if they reasonably believe that the person will become liable to be registered under section 55 during the period of 12 months beginning with that day.

(10) For the purposes of this section, a person meets the liability condition on a particular day if—

(a) the condition in section 55(2)(a) is met in relation to that person on that day,

(b) the day is the first day of a month and the condition in section 55(2)(b) is met in relation to that person on that day, or

Correction of the register

58

(1) The Commissioners may by regulations make provision about the correction of entries in the register.

(2) Regulations under subsection (1) may make provision for requiring persons who are, or are liable to be, registered to notify the Commissioners of changes in circumstances which are relevant to the register.

Secondary liability and joint and several liability notices

Notices imposing secondary or joint and several liability

59

Schedule 9 makes provision about notices that may in certain circumstances—

(a) impose secondary liability on a person in respect of an amount of plastic packaging tax which another person has failed to pay, or

(b) make one person jointly and severally liable with another person in respect of some or all of the other person's liability to pay plastic packaging tax in respect of a period of time in the future.

Administration and enforcement

Measurement of weight etc

60

(1) The Commissioners may by regulations make provision for and about the measurement of weight for the purposes of plastic packaging tax.

(2) The regulations may (among other things) include provision about—

(a) how weight is to be measured;

(b) the time in relation to which weight is to be measured;

(d) agreements between the Commissioners and particular persons about how weight is to be measured or evidenced, including provision for the Commissioners to disregard the terms of an agreement in circumstances set out in the regulations;

(e) the Commissioners making their own assessment or best judgement of weight in relation to plastic packaging components and substituting that assessment or judgement for the assessment or judgement of any other person;

(f) the Commissioners inspecting or weighing plastic packaging components or samples;

(g) the assessment of weight by the Commissioners being based on estimates or assumptions.

Payment, collection, recovery

61

(1) The Commissioners may by regulations make provision about the payment, collection and recovery of amounts for the purposes of plastic packaging tax.

(2) Regulations under subsection (1) may (among other things)—

(a) make provision for determining the accounting periods by reference to which payments are to be made;

(b) require persons who are registered or who are liable to be registered under section 55 (“relevant persons”) to keep accounts for the purposes of plastic packaging tax in a specified form and manner;

(d) make provision about the times at which payments of plastic packaging tax are to be made and methods of payment;

(e) require the amounts payable by reference to accounting periods to be calculated by or under the regulations;

(f) make provision about the payment, collection and recovery of amounts payable by a person as a result of a secondary liability and assessment notice or a joint and several liability notice;

(g) make provision for the correction of errors made in accounting for plastic packaging tax.

(3) Provision may be made by or under regulations under subsection (2)(c) about—

(a) the form and manner of making returns;

(b) the information to be included in returns;

(d) the periods by reference to which returns are to be made;

(e) timing.

(4) Schedule 10 makes provision about recovery and overpayments.

Reviews and appeals

62

Schedule 11 makes provision about reviews and appeals.

Records

63

(1) The Commissioners may by regulations require persons—

(a) to keep, for purposes connected with plastic packaging tax, records of specified matters, and

(b) to preserve records for a specified period.

(2) A duty under regulations under subsection (1) to preserve records may be discharged by preserving them, or the information contained in them, in any form and by any means, subject to any conditions or exceptions specified in the regulations.

(3) The period specified in regulations under subsection (1) may not exceed —

(a) in a case where the records relate to an accounting period, 6 years beginning with the day after the end of the accounting period to which the records relate, or

(b) in any other case, 6 years beginning with the day on which the records are created.

(4) The Commissioners may direct a person who is, or is liable to be, registered under this Part or to whom a secondary liability and assessment notice or a joint and several liability notice has been given—

(a) to keep such records as are specified in the direction;

(b) to preserve those records for a specified period.

(5) The Commissioners may not give a direction under subsection (4) unless they have reasonable grounds for believing that the records specified in the direction might assist in identifying chargeable plastic packaging components in respect of which plastic packaging tax might not be paid.

(6) A direction under subsection (4)—

(a) must be in writing,

(b) must specify the consequences under section 80 of a failure to comply with a requirement imposed under that section, and

(7) The period specified in a direction under subsection (4)(b) may not exceed 6 years.

Information and evidence

64

Schedule 12 makes provision about the collection and sharing of information and about evidence.

Security for tax

65

(1) The Commissioners may by regulations prescribe circumstances in which a person who is liable to be registered under section 55 may be required to give security (or further security) of such amount and in such manner as the Commissioners may determine for the payment of any plastic packaging tax due, or which may become due, from the person.

(2) The Commissioners may only exercise the power in subsection (1) if they consider it is necessary for the protection of the revenue.

Unincorporated bodies

66

The Commissioners may by regulations make provision in relation to a business which is carried on by a partnership or by another unincorporated body specifying by what person anything required by or under this Part to be done by a person is to be done.

Service

67

(1) Anything required to be given to a person (“P”) by or under a provision of this Part may be given by sending it to P or to P's representative by post, addressed to that person's last known address.

(2) Anything given to P's representative is to be treated as having been given to P.

(3) In this section, “representative”, in relation to P, means—

(a) any of P's personal representatives;

(b) any person holding office as receiver in relation to P or any of P's property;

(d) a trustee (or interim trustee) in a sequestration of P's estate under the Bankruptcy (Scotland) Act 2016;

(e) any other person acting in a representative capacity in relation to P (including under section 69).

Miscellaneous

Statements for business customers

68

(1) A person who—

(a) supplies to a business customer a plastic packaging component in respect of which a charge to plastic packaging tax has arisen, and

(b) is liable to pay plastic packaging tax on that component,

must, when invoicing that customer in respect of that component, include with that invoice a statement of the amount of plastic packaging tax arising in relation to that component (a “PPT statement”).

(2) The reference in subsection (1)(a) to supplying a plastic packaging component to a business customer includes supplying that component by virtue of supplying other goods, such as goods that are contained within the component.

(3) A PPT statement must contain such particulars as the Commissioners may prescribe in regulations.

(4) In this section, “business customer” means a person who is supplied with a plastic packaging component in the course of their carrying out a business (within the meaning of section 43(2)).

Tax representatives of non-resident taxpayers

69

(1) The Commissioners may by regulations make provision requiring that every non-resident taxpayer appoint a person resident in the United Kingdom to act as the taxpayer's tax representative for the purposes of plastic packaging tax.

(2) Regulations under subsection (1) may, in particular, make provision—

(a) requiring notification to be given to the Commissioners where a person becomes a non-resident taxpayer;

(b) requiring notification to be given to the Commissioners where a person appoints a person as a tax representative;

(c) for the appointment of a person as a tax representative to take effect only where the person appointed is approved by the Commissioners;

(d) authorising the Commissioners to give a direction requiring the replacement of a tax representative;

(e) about the circumstances in which a person ceases to be a tax representative and about the withdrawal by the Commissioners of their approval of a tax representative;

(f) enabling a tax representative to act on behalf of the person for whom they are the tax representative through an agent of the representative;

(g) for the purposes of any provision made by virtue of paragraphs (a) to (f) regulating the procedure to be followed in any case and imposing requirements as to the information and other particulars to be provided to the Commissioners;

(h) as to the time at which things done under or for the purposes of the regulations are to take effect.

(3) The tax representative of a non-resident taxpayer—

(a) may act on the non-resident taxpayer's behalf for the purposes of any provision relating to plastic packaging tax, and

(b) is under a duty, except to such extent as the Commissioners may by regulations otherwise provide, to secure the non-resident taxpayer's compliance with, and discharge of, the obligations and liabilities to which the non-resident taxpayer is subject by virtue of any provision relating to plastic packaging tax (including obligations and liabilities arising or incurred before the representative was appointed).

(4) A person who is or has been the tax representative of a non-resident taxpayer is personally liable—

(a) in respect of any failure to secure compliance with, or the discharge of, any obligation or liability to which subsection (3)(b) applies while they are or were the non-resident taxpayer's tax representative, and

(b) in respect of anything done in the course of, or for purposes connected with, acting on the non-resident taxpayer's behalf,

as if the obligations and liabilities to which subsection (3)(b) applies were imposed jointly and severally on the tax representative and the non-resident taxpayer.

(5) A tax representative is not liable by virtue of this section to be registered for the purposes of plastic packaging tax; but the Commissioners may by regulations—

(a) require the registration of the names of tax representatives against the names of the non-resident taxpayers of whom they are the representatives;

(b) make provision for the deletion of the names of persons who cease to be tax representatives.

(6) A tax representative is not, by virtue of this section, guilty of an offence except in so far as—

(a) they consented to, or connived in, the commission of the offence by the non-resident taxpayer;

(b) the commission of the offence by the non-resident taxpayer is attributable to any neglect on the part of the tax representative;

(c) the offence consists in a contravention by the tax representative of an obligation which, by virtue of this section, is imposed both on the tax representative and on the non-resident taxpayer.

(7) In this section “non-resident taxpayer” means a person who—

(a) is, or is liable to be, registered under this Part, and

(b) is not resident in the United Kingdom.

(8) For the purposes of subsection (7), a person is resident in the United Kingdom at any time if, at that time—

(a) that person has an established place of business in the United Kingdom;

(b) that person has a usual place of residence in the United Kingdom;

(c) that person is a firm or unincorporated body which (without being resident in the United Kingdom by virtue of paragraph (a)) has amongst its partners or members at least one individual with a usual place of residence in the United Kingdom.

Adjustment of contracts

70

(1) Subsection (2) applies where—

(a) a person (S) supplies a chargeable plastic packaging component that S has produced, or that was imported on behalf of S, to another person (P) under a contract,

(b) a payment falls to be made under the contract for the supply of the component, and

(i) plastic packaging tax becomes chargeable on the component, or

(ii) there is a change in the plastic packaging tax chargeable on the component.

(2) Unless the contract otherwise provides, S may adjust the amount of the payment mentioned in subsection (1)(b) so as to reflect the tax chargeable on the component.

(3) Subsection (4) applies where a person (S) supplies another person (P) with a chargeable plastic packaging component under a contract.

(4) Unless the contract provides otherwise, S may adjust the contract so that if P subsequently converts the component into a different chargeable plastic packaging component, P must provide S with information about the conversion.

(5) For the purposes of subsections (1) and (3), it is immaterial—

(a) when the contract was made;

(b) whether the contract also provides for other matters.

Groups of companies

71

(1) Subsection (2) applies where a body corporate (P) is liable to pay an amount of plastic packaging tax (or an amount recoverable on the basis that it is an amount of plastic packaging tax)—

(a) in respect of plastic packaging components produced by, or imported on behalf of, P, or

(b) by virtue of a secondary liability and assessment notice or a joint and several liability notice,

at the time P is treated as a member of a group.

(2) For the purposes of this Part , and save as otherwise provided by or under this Part,, the representative member of the group is to be treated as if —

(a) it were liable to pay the amount instead of P,

(b) it had assumed all other obligations in relation to plastic packaging tax that, apart from this subsection, would have been obligations of P, and

(i) apart from this subsection, would have been entitlements of P, and

(ii) arose after P and the representative member began to be treated as members of the same group.

(3) All the bodies corporate who are treated as members of a group when any amount becomes due from the representative member, together with any bodies corporate who become treated as members of the group while any such amount remains unpaid, are jointly and severally liable for the amount due from the representative member.

(3A) The Commissioners may by regulations make such further provision as they consider appropriate about—

(a) a body corporate that is treated as a member of a group being treated as if it had or had not assumed an entitlement given by or under this Part (ignoring the regulations) to another body corporate that is treated as a member of the group;

(b) the performance or discharge by a body corporate that is treated as a member of a group of an obligation or liability imposed by or under this Part (ignoring the regulations) on another body corporate that is treated as a member of the group.

(4) For the purposes of this Part—

(a) a body corporate is to be treated as a member of a group at any time in relation to which it falls to be treated as such in accordance with provision made by Schedule 13, and

(b) the representative member of a group at any time is the body corporate which falls to treated as such in accordance with that Schedule.

(5) Schedule 13 makes provision about applications by two or more bodies corporate to be treated as members of the same group for the purposes of this Part.

Prevention of artificial separation of business activities: directions

72

(1) This section, and section 73, apply for the purpose of preventing the maintenance or creation of any artificial separation of business activities carried on by two or more persons from resulting in an avoidance of plastic packaging tax.

(2) The Commissioners may make a direction under this section naming any person only if they are satisfied that—

(a) the person is producing or importing, or has produced or imported, chargeable plastic packaging components,

(b) the activities in the course of which the person produces or imports, or produced or imported, chargeable plastic packaging components form only part of certain activities, the other activities being carried on concurrently or previously (or both) by one or more other persons,

(c) the activities carried on by those persons have been, or are, artificially separated, having regard to whether the persons carrying on those activities are connected within the meaning of section 1122 of CTA 2010 (“connected” persons), and

(d) if all the activities of those persons were taken into account, a single person carrying on that business would at the time of the direction be liable to be registered by virtue of section 55.

(3) Subsection (4) applies where, after making a direction under this section that specifies a description of business, it appears to the Commissioners that a person (P) who was not named in that direction is producing or importing, or has produced or imported, chargeable plastic packaging components in the course of activities which should be regarded as part of the activities of that business.

(4) The Commissioners may make a supplementary direction referring to the earlier direction and the description of business specified in it and adding P's name to those of the persons named in the earlier direction with effect from—

(a) the date on which P began to produce or import those components, or

(b) if later, the date with effect from which the single taxable person referred to in the earlier direction became liable to be registered under this Part.

(5) If, immediately before a direction (including a supplementary direction) is made under this section, any person named in the direction is registered under this Part, the person ceases to be liable to be so registered with effect from the later of—

(a) the date with effect from which the single taxable person concerned became liable to be registered, and

(b) the date of the direction.

(6) A direction under this section must be given to each person named in it.

Prevention of artificial separation of business activities: effect of directions

73

(1) For the purposes of this Part, where a direction is made under section 72—

(a) the persons named in the direction are to be treated as a single taxable person carrying on the activities of a business described in the direction;

(b) the taxable person is liable to be registered under this Part with effect from—

(i) the date of the direction, or

(ii) such later date as may be specified in the direction;

(i) the persons named in the direction may jointly nominate in writing to the Commissioners not later than 14 days after the date of the direction, or

(ii) if no such name is nominated, in such name as may be specified in the direction;

(d) any production or import of chargeable plastic packaging components by or on behalf of one of the constituent members in the course of the activities of the taxable person is to be treated as production by or import on behalf of that person;

(e) each of the constituent members is to be jointly and severally liable for any plastic packaging tax due from the taxable person;

(f) any failure by the taxable person to comply with any requirement imposed by or under this Part is to be treated as a failure by each of the constituent members severally;

(g) subject to the preceding paragraphs, for the purposes of this Part the constituent members are to be treated as a partnership carrying on the business of the taxable person and any question as to the scope of the activities of that business at any time are to be determined accordingly.

(2) Subsection (3) applies where—

(a) it appears to the Commissioners that any person (P) who is one of the constituent members should no longer be regarded as such for the purposes of subsection (1)(e) and (f), and

(b) the Commissioners give notice to that effect.

(3) P is not liable by virtue of subsection (1)(e) and (f) for anything done after the date specified in that notice (and accordingly on that date P is to be treated as having ceased to be a member of the partnership referred to in subsection (1)(g)).

(4) In subsections (1) and (2), the “constituent members” means, in relation to a business specified in a direction under section 72, the persons named in the direction, together with any person named in a supplementary direction relating to that business (together being the persons who are to be treated as the taxable person).

Death, incapacity or insolvency of person carrying on a business: regulations

74

(1) The Commissioners may by regulations make provision for the purposes of plastic packaging tax in relation to cases where a person carries on the business of—

(a) an individual who has died or become incapacitated;

(b) a person (whether or not an individual) who is subject to an insolvency procedure (as defined in the regulations).

(2) Provision may be made by regulations under this section—

(a) requiring the person who is carrying on the business (P) to inform the Commissioners that P is carrying on the business and of the event that has led to P carrying it on;

(b) allowing P to be treated for a limited time as if P and the person who has died, become incapacitated or is subject to an insolvency procedure were the same person;

(c) about such other matters as the Commissioners think fit for securing continuity in the application of this Part in cases to which the regulations apply.

Transfer of business as a going concern: regulations

75

(1) The Commissioners may by regulations make provision for the purposes of plastic packaging tax in relation to cases where any business carried on by a person (P) is transferred to another person (T) as a going concern.

(2) Regulations under this section may (among other things) make—

(a) provision requiring P to inform the Commissioners of the transfer;

(b) provision for P's liabilities and duties under this Part to become, to such extent as may be provided by the regulations, liabilities and duties of T;

(c) provision for any right of either P or T to a tax credit or repayment of plastic packaging tax to be satisfied by allowing the credit or making the repayment to the other;

(d) provision as to the preservation of any records or accounts relating to the business which, by virtue of any regulations under section 63, are required to be preserved for any period after the transfer;

(e) such other provision as the Commissioners think fit for securing continuity in the application of this Part in cases to which the regulations apply.

(3) Regulations under this section may provide that no such provision as is mentioned in subsection (2)(b) or (c) has effect in relation to any transferor or transferee unless an application for the purpose has been made by them under the regulations.

Isle of Man: import and export of chargeable plastic packaging components

76

(1) Subsections (2) and (3) apply if—

(a) a chargeable plastic packaging component is imported into the United Kingdom from the Isle of Man, and

(b) a charge corresponding to plastic packaging tax (the “corresponding charge”) has arisen in relation to the component under the law of the Isle of Man.

(2) If the corresponding charge has arisen at a rate equal to, or greater than, the United Kingdom rate, the component is to be treated as not being imported into the United Kingdom for the purposes of plastic packaging tax.

(3) If the corresponding charge has arisen at a rate lower than the United Kingdom rate, the amount of plastic packaging tax charged under this Part in relation to the component is to be reduced by an amount equal to the corresponding charge.

(4) “The United Kingdom rate” in relation to a chargeable plastic packaging component is the rate of plastic packaging tax that would (apart from this section) be chargeable in relation to the component under this Part.

(5) For the purposes of provision made by or under sections 51 and 53, a chargeable plastic packaging component is to be treated as not being exported from the United Kingdom if it is exported from the United Kingdom to the Isle of Man.

(6) For the purposes of determining, in accordance with section 50, when a chargeable plastic packaging component is imported into the United Kingdom from the Isle of Man, section 8 of the Isle of Man Act 1979 (removal of goods from the Isle of Man) is to have effect as if, in subsection (2), at the end of paragraph (c), there were inserted

; or (d) goods which are chargeable plastic packaging components for the purposes of plastic packaging tax.

Offences and penalties

Fraudulent evasion

77

(1) A person commits an offence if the person is knowingly concerned in, or in the taking of steps with a view to, the fraudulent evasion (by that person or another person) of plastic packaging tax.

(2) The reference in subsection (1) to the evasion of plastic packaging tax includes reference to obtaining, in circumstances where there is no entitlement to it—

(a) a tax credit;

(b) a repayment of plastic packaging tax.

(3) A person guilty of an offence under this section is liable—

(a) on summary conviction in England and Wales—

(i) to imprisonment for a term not exceeding the general limit in a magistrates’ court,

(ii) to a fine not exceeding £20,000 or (if greater) three times the total of the amounts of plastic packaging tax that were, or were intended to be, evaded, or

(iii) to both;

(b) on summary conviction in Scotland—

(i) to imprisonment for a term not exceeding 12 months,

(ii) to a fine not exceeding the statutory maximum or (if greater) three times the total of the amounts of plastic packaging tax that were, or were intended to be, evaded, or

(iii) to both;

(i) to imprisonment for a term not exceeding 6 months,

(ii) to a fine not exceeding the statutory maximum or (if greater) three times the total of the amounts of plastic packaging tax that were, or were intended to be, evaded, or

(iii) to both;

(d) on conviction on indictment—

(i) to imprisonment for a term not exceeding 14 years,

(ii) to a fine, or

(iii) to both.

(4) For the purposes of subsection (3), the amounts of plastic packing tax that were, or were intended to be, evaded are to be taken as including—

(a) the amount of any tax credit, and

(b) the amount of any repayment of plastic packaging tax,

which was, or was intended to be, obtained in circumstances when there was no entitlement to it.

(5) In determining for the purposes of subsection (3) the amounts of plastic packaging tax that were, or were intended to be, evaded, no account is to be taken of the extent to which any liability to tax of a person would be, or would have been, reduced by the amount of any tax credit or repayment of plastic packaging tax to which the person was, or would have been, entitled.

(6) In relation to an offence committed before 2 May 2022, the reference in subsection (3)(a)(i) to the general limit in a magistrates’ court is to be read as a reference to 6 months.

Misstatements

78

(1) A person commits an offence if, for purposes connected with plastic packaging tax, the person—

(a) produces or provides, causes to be produced or provided, or otherwise makes use of any document which is false in a material particular, and

(b) does so intending to deceive any person or to secure that a machine will respond to the document as if it were a true document.

(2) A person commits an offence if, in providing any information under any provision made by or under this Part the person—

(a) makes a statement which the person knows to be false in a material particular, or

(b) recklessly makes a statement which is false in a material particular.

(3) A person guilty of an offence under this section is liable (subject to subsection (4))—

(a) on summary conviction in England and Wales—

(i) to imprisonment for a term not exceeding 6 months,

(ii) to a fine not exceeding £20,000, or

(iii) to both;

(b) on summary conviction in Scotland—

(i) to imprisonment for a term not exceeding 6 months,

(ii) to a fine not exceeding the statutory maximum, or

(iii) to both;

(i) to imprisonment for a term not exceeding 6 months,

(ii) to a fine not exceeding the statutory maximum, or

(iii) to both;

(d) on conviction on indictment—

(i) to imprisonment for a term not exceeding 14 years,

(ii) to a fine, or

(iii) to both.

(4) In the case of an offence under this section where—

(a) the document referred to in subsection (1) is a return required under any provision made by or under this Part of this Act, or

(b) the information referred to in subsection (2) is contained in or otherwise relevant to such a return,

the maximum amount of the fine on summary conviction is the greater of £20,000 or the statutory maximum (as the case may be), and the amount equal to three times the sum of the amounts (if any) by which the return underestimates any person's liability to plastic packaging tax.

(5) In subsection (4) the reference to the amount by which a person's liability to plastic packaging tax is understated is the sum of—

(a) the amount (if any) by which the person's gross liability was understated, and

(b) the amount (if any) by which any entitlements of the person to tax credits and repayments of plastic packaging tax were overstated.

(6) In subsection (5) “gross liability” means liability to plastic packaging tax before any deduction is made in respect of—

(a) any entitlement to any tax credits, or

(b) any repayment of plastic packaging tax.

Conduct involving evasions or misstatements

79

(1) A person commits an offence if the person's conduct during any particular period must have involved the person committing one or more offences under section 77 or 78.

(2) For the purposes of any proceedings for an offence under this section it is immaterial whether the particulars of the offence or offences that must have been committed are known.

(3) A person guilty of an offence under this section is liable (subject to subsection (4))—

(a) on summary conviction in England and Wales—

(i) to imprisonment for a term not exceeding 6 months,

(ii) to a fine not exceeding £20,000, or

(iii) to both;

(b) on summary conviction in Scotland—

(i) to imprisonment for a term not exceeding 6 months,

(ii) to a fine not exceeding the statutory maximum, or

(iii) to both;

(i) to imprisonment for a term not exceeding 6 months,

(ii) to a fine not exceeding the statutory maximum, or

(iii) to both;

(d) on conviction on indictment—

(i) to imprisonment for a term not exceeding 14 years,

(ii) to a fine, or

(iii) to both.

(4) In the case of any offence under this section, the maximum amount of the fine on summary conviction is the greater of £20,000 or the statutory maximum (as the case may be), and the amount equal to three times the sum of the amounts of plastic packaging tax which are shown to be amounts that were or were intended to be evaded by the conduct in question.

(5) For the purposes of subsection (4), the amounts of plastic packaging tax that were, or were intended to be, evaded are to be taken as including—

(a) the amount of any tax credit, and

(b) the amount of any repayment of plastic packaging tax,

which was, or was intended to be, obtained in circumstances when there was no entitlement to it.

(6) In determining for the purposes of subsection (4) the amounts of plastic packaging tax that were, or were intended to be, evaded, no account is to be taken of the extent to which any liability to tax of a person would be, or would have been, reduced by the amount of any tax credit or repayment of plastic packaging tax to which the person was, or would have been, entitled.

Penalty for contravening relevant requirements

80

(1) Where a person (P) fails to comply with a relevant requirement, P is liable to—

(a) a fixed penalty of £500, and

(b) a daily penalty of £40 for each day, after the first, on which the person continues to fail to comply.

(2) Where P is liable to a daily penalty in respect of a continuing failure to comply with a relevant requirement P is not liable to a further fixed penalty in respect of that failure.

(3) P is not liable to a penalty under this section in respect of an act or omission in respect of which P—

(a) has been convicted of an offence, or

(b) is liable to a penalty other than under this section.

(4) P is not liable to a penalty under this section if P satisfies the Commissioners or (on appeal) the appeal tribunal within the meaning of Schedule 11 that there is a reasonable excuse for the failure.

(5) For the purposes of subsection (4)—

(a) an insufficiency of funds is not a reasonable excuse, unless it is attributable to events outside P's control,

(b) where P relies on any other person to do anything, that is not a reasonable excuse unless P took reasonable care to avoid the failure, and

(c) where P had a reasonable excuse for the failure but the excuse has ceased, P is to be treated as having continued to have the excuse if the failure is remedied without unreasonable delay after the excuse ceased.

(6) Where P is liable to a penalty under this section—

(a) the Commissioners or, on appeal, the appeal tribunal within the meaning of Schedule 11, may reduce the penalty to such amount (including nil) as they think proper;

(b) on an appeal relating to any penalty reduced by the Commissioners, the appeal tribunal may cancel the whole or any part of the Commissioners' reduction.

(7) In this section, “relevant requirement” means an obligation or a requirement imposed by or under—

(a) section 58 (variation and correction of the register);

(b) section 61 (payment, collection and recovery);

(d) section 65 (security for tax);

(e) section 68 (statements);

(f) section 69 (tax representatives);

(g) section 74 (death, incapacity or insolvency of person carrying on a business);

(h) section 75 (transfer of business as a going concern);

(i) Schedule 9 (secondary liability and assessment notices and joint and several liability notices);

(j) Schedule 13 (groups of companies).

(8) The Treasury may by regulations amend subsection (1) so as to substitute for the amounts for the time being specified there amounts taking account of inflation.

(9) The Treasury may by regulations amend subsection (7) so as to add or remove a requirement relating to plastic packaging tax as a “relevant requirement”.

(10) Schedule 14 makes provision about the assessment of penalties under this section.

Criminal proceedings

81

Sections 145 to 155 of CEMA 1979 (proceedings for offences, mitigation of penalties and certain other matters) apply in relation to offences under this Part as they apply in relation to offences under the customs and excise Acts.

General

Minor and consequential amendments

82

Schedule 15 makes minor and consequential amendments to other legislation.

Interpretation

83

In this Part—

“accounting period” has the meaning given by section 46(2);

“chargeable plastic packaging component” is to be construed in accordance with section 47;

“the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs;

“the customs and excise Acts” has the same meaning as in CEMA 1979 (see section 1(1) of that Act);

“finished” has the meaning given by section 47(3);

“HMRC” means Her Majesty's Revenue and Customs;

“imported” is to be construed in accordance with section 50;

“joint and several liability notice” has the meaning that it has in Part 2 of Schedule 9;

“packaging component” and “plastic packaging component” are to be construed in accordance with section 48;

“plastic” and “recycled plastic” are to be construed in accordance with section 49;

“the register” means the register under section 54(1) (and references to registration are to registration in that register);

“secondary liability and assessment notice” has the meaning that it has in Part 1 of Schedule 9;

“tax credit”, unless the context requires otherwise, means a tax credit in accordance with regulations under section 53.

Regulations

84

(1) Regulations under this Part—

(a) may make different provision for different purposes;

(b) may include incidental, consequential, supplementary, transitional or transitory provision.

(2) Regulations under this Part may make provision by reference to things specified in a notice that is—

(a) published by the Commissioners in accordance with the regulations, and

(b) not withdrawn by a further notice.

(3) Any power of the Commissioners to make regulations under this Part may instead be exercised by the Treasury.

(4) Regulations under this Part are to be made by statutory instrument.

(5) A statutory instrument containing regulations under the following provisions is subject to the made affirmative procedure—

(a) section 48(5) (meaning of “packaging component”);

(b) section 49(8) (meaning of “plastic” and “recycled plastic”);

(ba) section 50(3) (timing of importation);

(d) section 80(8) or (9) (penalties for contravening relevant requirements).

(6) Any other statutory instrument containing regulations under this Part is subject to annulment in pursuance of a resolution of the House of Commons (“the negative procedure”).

(7) But subsection (6) does not apply to a statutory instrument containing only regulations under section 85 (commencement of this Part).

(8) Where a statutory instrument under this Act is subject to “the made affirmative procedure”—

(a) it must be laid before the House of Commons after being made, and

(b) it ceases to have effect at the end of the period of 28 sitting days beginning with the day on which the instrument is made, unless within that period the instrument is approved by a resolution of the House of Commons.

(9) Where regulations cease to have effect as a result of subsection (8), that does not—

(a) affect anything previously done under the regulations, or

(b) prevent the making of new regulations.

(10) Any provision that may be included in regulations in a statutory instrument under this Act subject to the negative procedure may be included in regulations in a statutory instrument subject to the made affirmative procedure.

(11) In this section, “sitting day” means a day on which the House of Commons is sitting (and a day is only a day on which the House of Commons is sitting if the House begins to sit on that day).

Commencement etc

85

(1) This Part—

(a) comes into force on such day as the Treasury may by regulations appoint, and

(b) has effect in relation to packaging components that are produced in the United Kingdom or imported into the United Kingdom on or after 1 April 2022.

(2) Regulations under this section may appoint different days for different purposes.

PART 3 — Other taxes

Inheritance tax

Rate bands etc for tax years 2021-22 to 2025-26

86

Sections 8 and 8D(7) of IHTA 1984 (indexation of rate bands, residential enhancement and taper threshold) do not have effect by virtue of any difference between—

(a) the consumer prices index for the month of September in 2020, 2021, 2022, 2023 , 2024, 2025 , 2026, 2027 or 2028, and

(b) that index for the previous September.

Stamp duty land tax

Temporary period for reduced rates on residential property

87

(1) The Stamp Duty Land Tax (Temporary Relief) Act 2020 is amended as follows.

(2) In section 1 (reduced rates of SDLT on residential property for a temporary period)—

(a) in subsection (1)(b) (which specifies the end of that temporary period), for “31 March 2021” substitute “ 30 June 2021 ”,

(b) in subsections (1) and (6)(a), for “temporary” substitute “ initial temporary ”, and

(3) After that section insert—

(1A) (1) This section makes modifications of Part 4 of the Finance Act 2003 in relation to any land transaction the effective date of which falls in the period (“the further temporary relief period”)— (a) beginning with 1 July 2021, and (b) ending with 30 September 2021. (2) Section 55(1B) (amount of stamp duty land tax chargeable: general) has effect as if for Table A there were substituted—

Part of relevant consideration	Percentage
So much as does not exceed £250,000	0%
So much as exceeds £250,000 but does not exceed £925,000	5%
So much as exceeds £925,000 but does not exceed £1,500,000	10%
The remainder (if any)	12%

(3) Schedule 4ZA (higher rates of stamp duty land tax for additional dwellings etc) has effect as if for the Table A in section 55(1B) mentioned in paragraph 1(2) there were substituted—

Part of relevant consideration	Percentage
So much as does not exceed £250,000	3%
So much as exceeds £250,000 but does not exceed £925,000	8%
So much as exceeds £925,000 but does not exceed £1,500,000	13%
The remainder (if any)	15%

(4) Paragraph 2(3) of Schedule 5 (amount of SDLT chargeable in respect of rent) has effect as if for Table A there were substituted—

Rate bands	Percentage
£0 to £250,000	0%
Over £250,000	1%

(5) In a case where— (a) as a result of section 44(4) of the Finance Act 2003 the effective date of a land transaction falls in the further temporary relief period, and (b) the contract concerned is completed by a conveyance after that period ends, section 44(8) of that Act is not to apply in relation to that conveyance if the sole reason that (but for this subsection) it would have applied is that the modifications made by this section have no effect in relation to that conveyance. (6) Section 44(10) of the Finance Act 2003 applies for the purposes of subsection (5).

Increased rates for non-resident transactions

88

Schedule 16 makes provision for increased rates of stamp duty land tax in respect of non-resident transactions.

Relief from higher rate charge for certain housing co-operatives etc

89

(1) In Schedule 4A to FA 2003 (higher rate of SDLT for certain transactions), after paragraph 5F insert—

(5FA) Paragraph 3 does not apply to a chargeable transaction so far as its subject-matter consists of a higher threshold interest that is acquired by a company on a day on which the company is a qualifying housing co-operative for the purposes of section 150(3A) of the Finance Act 2013 (relief from ATED).

(2) In that Schedule, after paragraph 5K insert—

(5L) (1) This paragraph applies where relief under paragraph 5FA (qualifying housing co-operatives) has been allowed in respect of a higher threshold interest forming the whole or part of the subject-matter of a chargeable transaction. (2) References in this paragraph to a qualifying housing body are to— (a) a company that is a qualifying housing co-operative for the purposes of section 150(3A) of the Finance Act 2013 (relief from ATED), (b) a registered provider of social housing, or (c) a registered social landlord. (3) The relief under paragraph 5FA is withdrawn (subject to sub-paragraph (4)) if— (a) on any day in the period of three years beginning with the effective date of the chargeable transaction (“the control period”), the purchaser is not a qualifying housing body, and (b) immediately before the first day on which that is the case the purchaser still holds the higher threshold interest or holds a chargeable interest derived from it. (4) If, on any day in the control period, the purchaser is not a qualifying housing body because it ceases to exist (whether by virtue of a conversion into, or amalgamation with, another person or for any other reason), relief is not to be withdrawn under this paragraph unless— (a) another person (“the first successor”) has succeeded to the engagements of the purchaser, and (b) condition A or condition B is met (and if condition B is met, subject to sub-paragraph (7)). (5) Condition A is that, on the day the first successor succeeds to the engagements of the purchaser (“the day of succession”), the first successor is not a qualifying housing body. (6) Condition B is that— (a) on any day in the part of the control period that falls after the day of succession, the first successor is not a qualifying housing body, and (b) immediately before the first day on which that is the case the first successor still holds the higher threshold interest or holds a chargeable interest derived from it. (7) If condition B is met because the first successor ceases to exist (whether by virtue of a conversion into, or amalgamation with, another person or for any other reason), relief is not to be withdrawn under this paragraph unless it would have been withdrawn by virtue of sub-paragraph (4) if references in sub-paragraphs (4) to (6)— (a) to the purchaser were references to the first successor, and (b) to the first successor were references to the person who has succeeded to the engagements of the first successor (“the second successor”). (8) Sub-paragraph (7) is to apply to the second successor as it applies to the first successor, and so on, subject to the necessary modifications.

(3) Schedule 17 contains minor and consequential amendments of Part 4 of FA 2003 (stamp duty land tax).

(4) The amendments made by this section and Schedule 17 have effect in relation to any land transaction of which the effective date is 3 March 2021 or a later date.

Annual tax on enveloped dwellings

Relief for certain housing co-operatives

90

(1) In section 150 of FA 2013 (providers of social housing)—

(a) after subsection (3) insert—

(3A) A day in a chargeable period is relievable in relation to a single-dwelling interest if on that day a qualifying housing co-operative (as defined by section 150A) is entitled to the interest.

, and

(b) in the heading, at the end insert “ etc ”.

(2) After that section insert—

(150A) (1) A company is a “qualifying housing co-operative” for the purposes of section 150(3A) on any day if on that day— (a) it is a housing association within the meaning of— (i) the Housing Associations Act 1985, or (ii) Part 2 of the Housing (Northern Ireland) Order 1992 (S.I. 1992/1725 (N.I. 15)), (b) it is a registered society within the meaning of— (i) the Co-operative and Community Benefit Societies Act 2014, or (ii) the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969, and (c) the rules of the association comply with subsection (2). (2) The rules of the association— (a) must restrict membership to persons who are tenants, or prospective tenants, of the association, (b) must preclude the granting or assignment of tenancies to persons other than members, (c) must prevent members from transferring any of their shares, (d) must prevent members from receiving any more than the nominal value of their shares on a return of share capital, and (e) must confer on members equal voting rights.

(3) The amendments made by this section have effect in relation to—

(a) the chargeable period beginning with 1 April 2021 and all subsequent chargeable periods;

(b) the chargeable period beginning with 1 April 2020 but only in relation to a person and a single-dwelling interest falling within case A or case B.

(4) Case A is that the first day in the chargeable period on which the person is within the charge with respect to the single-dwelling interest is on or after 3 March 2021.

(5) Case B is that the person was within the charge with respect to the single-dwelling interest on one or more days in the chargeable period before 3 March 2021 but has not delivered an annual tax on enveloped dwellings return for the period with respect to the interest by 3 March 2021.

(6) For the purposes of subsections (3) to (5), “single-dwelling interest”, “within the charge” and “annual tax on enveloped dwellings return” have the same meanings that they have for the purposes of Part 3 of FA 2013.

Repayment to certain housing co-operatives: 2020-21 chargeable period

91

(1) A claim for repayment of annual tax on enveloped dwellings paid, before 3 March 2021, by or on behalf of a chargeable person with respect to a single-dwelling interest may be made by the person for each day (if any) in the chargeable period beginning with 1 April 2020 on which—

(a) the person was within the charge with respect to the interest and not treated as being outside the charge by virtue of section 132(2) of FA 2013 (effect of reliefs under sections 133 to 150), and

(b) a qualifying housing co-operative was entitled to the interest.

(2) For the purposes of a claim under this section with respect to a single-dwelling interest—

(a) a company is a qualifying housing co-operative on any day if on that day it would have been a qualifying housing co-operative for the purposes of section 150(3A) of FA 2013 (if sections 150(3A) and 150A of FA 2013 (inserted by section 90) had been in force on that day);

(b) each day on which the conditions in subsection (1)(a) and (b) are met with respect to the interest is a “relievable day”;

(c) references to “the relevant return” are to the annual tax on enveloped dwellings return for the chargeable period beginning with 1 April 2020 with respect to the interest.

(3) Where a claim is made under this section with respect to a single-dwelling interest, HMRC must repay the total of the daily amounts for all the relievable days.

(4) A claim under this section must be made by amending the relevant return under paragraph 3 of Schedule 33 to FA 2013 on the same basis as it would have been amended if, on each of the relievable days, the chargeable person had been entitled to claim the type of relief numbered 8 in the table in section 159A(9) of FA 2013.

(5) Terms used in this section and in Part 3 of FA 2013 have the same meaning in this section as in that Part.

Value added tax

Extension of temporary 5% reduced rate for hospitality and tourism sectors

92

In Articles 2 and 5 of the Value Added Tax (Reduced Rate) (Hospitality and Tourism) (Coronavirus) Order 2020 (S.I. 2020/728), for “31st March 2021” substitute “ 30th September 2021 ”.

Temporary 12.5% reduced rate for hospitality and tourism sectors

93

(1) The modifications made by Articles 3 and 4 of the Value Added Tax (Reduced Rate) (Hospitality and Tourism) (Coronavirus) Order 2020 (S.I. 2020/728) (“the Reduced Rate Order”) continue to have effect (despite Article 2 of that Order) during the relevant period.

(2) During that period, in relation to a supply that is of a description within Groups 14 to 16 in Part 2 of Schedule 7A to VATA 1994, the reference in section 29A(1) of that Act to “5 per cent” is to be read as a reference to “12.5 per cent” (and any reference elsewhere in that Act to a rate of 5% in the context of a supply of a description specified in Schedule 7A is to be read accordingly).

(3) The modifications made by Article 6 of the Reduced Rate Order also continue to have effect (despite Article 5 of that Order) during the relevant period, but subject to the modifications in subsection (4).

(4) The modifications to Article 6 of the Reduced Rate Order mentioned in subsection (3) are—

(a) as if in paragraph (a), for “4.5” there were substituted “ 8.5 ”;

(b) as if in paragraph (b), for “0” there were substituted “ 5.5 ”;

(5) The relevant period means the period—

(a) beginning with the day after the day on which the modifications made by Articles 3, 4 and 6 of the Reduced Rate Order would otherwise cease to apply by virtue of the ending of the periods mentioned in Articles 2 and 5 of that Order (whether in accordance with section 92 or any regulations made under section 26B or 29A(3) of VATA 1994), and

(b) ending on 31 March 2022.

(6) The Treasury may by regulations—

(a) repeal subsections (1) to (5);

(b) amend subsection (5) so as to substitute for the period for the time being mentioned there such other period as they consider appropriate.

(7) A statutory instrument containing regulations under subsection (6) that would increase the rate of value added tax to be charged on a supply must be laid before the House of Commons after being made and, unless approved by that House before the end of the period of 28 days beginning with the date on which the instrument is made, ceases to have effect at the end of that period.

(8) Any other statutory instrument containing regulations under subsection (6) is subject to annulment in pursuance of a resolution of the House of Commons.

(9) The fact that a statutory instrument ceases to have effect as a result of subsection (7) does not affect—

(a) anything previously done under the instrument, or

(b) the making of a new instrument.

(10) In calculating the period of 28 days mentioned in subsection (7), no account is to be taken of any time—

(a) during which Parliament is dissolved or prorogued, or

(b) during which the House of Commons is adjourned for more than four days.

Extending digital record-keeping for VAT purposes to all businesses

94

In paragraph 6 of Schedule 11 to VATA 1994 (duty of taxable person to keep records), omit sub-paragraphs (7) to (9).

Distance selling: Northern Ireland

95

(1) In Schedule 18, which makes provision in relation to the Protocol on Ireland/Northern Ireland in the EU withdrawal agreement about value added tax and distance selling—

(a) Part 1 makes provision amending—

(i) the criteria for registration under Part 9 of Schedule 9ZA to VATA 1994 (value added tax on acquisitions in Northern Ireland from member States: registration in respect of distance sales), and

(ii) the application of the place of supply rules in Part 5 of Schedule 9ZB to VATA 1994 (goods removed to or from Northern Ireland: rules relating to particular supplies);

(b) Part 2 makes provision implementing the European Union schemes known as the One Stop Shop (“OSS”) and the Import One Stop Shop (“IOSS”);

(c) Part 3 makes provision amending Schedule 9ZC to VATA 1994 (online sales by overseas persons and low value importations: modifications relating to the Northern Ireland Protocol) to omit Part 2 of that Schedule (modifications of the Value Added Tax (Imported Goods) Relief Order 1984);

(d) Part 4 makes provision about supplies of goods by persons established outside the United Kingdom that are facilitated by online marketplaces.

(2) The Treasury may by regulations made by statutory instrument make such provision as they consider appropriate in consequence of this section or Schedule 18, including provision amending, repealing or revoking any provision of an Act whenever passed or made (including this Act and any Act amended by it).

(3) The Treasury may by regulations made by statutory instrument make such transitional, transitory, saving, supplementary or incidental provision as they consider appropriate in connection with the coming into force of this section or Schedule 18.

(4) Regulations under subsections (2) and (3) may (among other things)—

(a) confer on a person specified in the regulations a discretion to do anything under, or for the purposes of, the regulations;

(b) make provision by reference to things specified in a notice published in accordance with the regulations;

(5) A statutory instrument that—

(a) contains (whether alone or with other provision) regulations under subsection (2), and

(b) is not subject to any requirement under section 96 that the instrument be laid before, and approved by a resolution of, the House of Commons after being made,

is subject to annulment in pursuance of a resolution of the House of Commons.

(6) This subsection and the following provisions come into force on the day on which this Act is passed—

(a) subsection (1) and Schedule 18 so far as making provision for anything to be done by regulations, directions or public notice, and

(b) subsections (2) to (5), (7) and (8).

(7) Subsection (1) and Schedule 18 come into force for all remaining purposes on such day as the Treasury may by regulations made by statutory instrument appoint.

(8) Regulations under subsection (7) may appoint different days for different purposes.

Distance selling: power to make further provision

96

(1) The Treasury may by regulations made by statutory instrument make such provision relating to value added tax as they consider appropriate in relation to the Protocol on Ireland/Northern Ireland in the EU withdrawal agreement—

(a) for the purposes of, or in connection with, giving effect to Council Directive (EU) 2017/2455 of 5 December 2017 amending Directive 2006/112/EC and Directive 2009/132/EC as regards certain value added tax obligations for supplies of services and distance sales of goods, or

(b) otherwise for the purposes of dealing with matters arising out of, or related to, that Directive.

(2) No regulations may be made under this section on or after 1 April 2024.

(3) Regulations under this section—

(a) may make any such provision as might be made by an Act of Parliament, including provision amending or repealing any provision of this Act, but

(b) may not make provision taking effect from a date earlier than that of the making of the regulations.

(4) A statutory instrument containing (whether alone or with other provision) regulations under this section that amend or repeal any Act of Parliament must be laid before the House of Commons after being made.

(5) Regulations contained in a statutory instrument laid before the House of Commons under subsection (4) cease to have effect at the end of the period of 28 days beginning with the day on which the instrument is made unless, during that period, the instrument is approved by a resolution of the House of Commons.

(6) In calculating the period of 28 days, no account is to be taken of any whole days that fall within a period during which—

(a) Parliament is dissolved or prorogued, or

(b) the House of Commons is adjourned for more than four days.

(7) If regulations cease to have effect as a result of subsection (5), that does not—

(a) affect the validity of anything previously done under or by virtue of the instrument, or

(b) prevent the making of new regulations.

(8) A statutory instrument containing (whether alone or with other provision) regulations under this section to which subsection (4) does not apply is subject to annulment in pursuance of a resolution of the House of Commons.

(9) This section comes into force on the day on which this Act is passed.

Supply of imported works of art etc

97

(1) In Schedule 6 to VATA 1994 (valuation: special cases), after paragraph 11 insert—

(11A) (1) Sub-paragraph (2) applies to goods that— (a) fall within subsection (5) of section 21 (works of art etc), and (b) are treated as supplied in the United Kingdom as a result of section 7(5B) (importation of consignments with an intrinsic value not exceeding £135). (2) The value of a supply of goods to which this sub-paragraph applies is to be taken to be an amount equal to 25% of the amount that, apart from this sub-paragraph, would be its value for the purposes of this Act. (3) An order under section 2(2) may contain provision making such alteration of the percentage for the time being specified in sub-paragraph (2) as the Treasury consider appropriate in consequence of any increase or decrease by that order of the rate of VAT.

(2) The amendment made by subsection (1) has effect in relation to supplies made on or after IP completion day.

Continuing effect of principle preventing the abuse of the VAT system

98

(1) In section 42 of TCTA 2018 (EU law relating to VAT), after subsection (4) insert—

(4A) Accordingly, that principle may continue to be relied upon in determining any matter relating to value added tax (including in determining the effect of any provision made by or under an enactment).

(2) That section has effect, and is to be deemed always to have had effect, with the amendment made by subsection (1).

Deferring VAT payment by reason of the coronavirus emergency

99

(1) Schedule 19 makes provision about—

(a) powers of the Commissioners for Her Majesty's Revenue and Customs to agree that payment of sums to meet liabilities described in article 5 of the Finance Act 2008, Section 135 (Coronavirus) Order 2020 (S.I. 2020/934) (“the Coronavirus Order 2020”) may be further deferred,

(b) surcharges arising on such sums, and

(2) Subsection (1) and Schedule 19 are to be treated as having come into force on 9 March 2021.

(3) The Treasury may by regulations repeal paragraphs 4 to 11 of Schedule 19 (penalty) where they consider it appropriate to do so by reason of circumstances arising as a result of the emergency specified in article 2 of the Coronavirus Order 2020.

(4) Regulations made under subsection (3)—

(a) must make provision for the repayment of amounts paid in respect of penalties under Schedule 19, and

(b) may make other transitional provision.

(5) Regulations under this section are to be made by statutory instrument.

(6) A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.

Refunds to S4C

100

(1) In section 33(3) of the Value Added Tax Act 1994 (refunds of VAT in certain cases), after paragraph (i) insert—

(ia) S4C;

(2) The amendment made by this section has effect in relation to supplies made, and acquisitions and importations taking place, on or after 1 April 2021.

Customs duty

Steel removed to Northern Ireland

101

Schedule 20 contains amendments of the Customs (Northern Ireland) (EU Exit) Regulations 2020 (S.I. 2020/1605) in connection with the removal of certain steel products to Northern Ireland.

Fuel duties

Restriction of use of rebated diesel and biofuels

102

(1) Schedule 21 makes—

(a) provision amending HODA 1979 to restrict the use of rebated diesel and biofuels to specified categories of machines, and

(b) related provision.

(2) Schedule 21 comes into force on 1 April 2022.

(3) The Treasury may by regulations make such consequential, supplementary, incidental, transitional, transitory or saving provision as the Treasury consider appropriate in connection with the coming into force of Schedule 21.

(4) Regulations under subsection (3) may—

(a) amend, repeal or revoke provision made by or under an Act passed before this Act;

(b) make different provision for different purposes or areas.

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