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

(2) In subsection (3), at the beginning insert “ Subject to subsections (4A) to (4C) ”.

(3) After subsection (4), insert—

(4A) No excess is to be taken to arise by reason of a hybrid payer being a hybrid entity for the purposes of subsection (1)(b) so far as it is attributable to a qualifying institutional investor based in a territory under the law of which— (a) the income or profits of the hybrid entity are treated as income and profits of the investor, or (b) the hybrid entity is not regarded as a distinct and separate person to the investor. (4B) Excess is attributable to such a qualifying institutional investor to the extent that ordinary income (arising by reason of the payment or quasi-payment) would fall to be brought into account by the investor if— (a) where subsection (4A)(a) applies, under the law of the territory the income or profits of the hybrid entity were not treated as income and profits of the investor, and (b) where subsection (4A)(b) applies, under the law of the territory the hybrid entity were regarded as a distinct and separate person to the investor. (4C) To determine if a “qualifying institutional investor” is “based” in a particular territory for the purposes of subsections (4A) and (4B) see section 259NDA.

28

In section 259GB (hybrid payee deduction/non-inclusion mismatches and their extent), after subsection (2) insert—

(2A) No excess is to be taken to arise by reason of a hybrid payee being a hybrid entity for the purposes of subsection (1)(b) so far as it is attributable to a qualifying institutional investor based in a territory under the law of which— (a) the income or profits of the hybrid entity are not treated as income or profits of the investor, or (b) the hybrid entity is regarded as a distinct and separate person to the investor. (2B) Excess is attributable to such a qualifying institutional investor to the extent that ordinary income (arising by reason of the payment or quasi-payment) would fall to be brought into account by the investor if— (a) where subsection (2A)(a) applies, under the law of the territory the income or profits of the hybrid entity were treated as income or profits of the investor, and (b) where subsection (2A)(b) applies, under the law of the territory the hybrid entity were not regarded as a distinct and separate person to the investor. (2C) To determine if a “qualifying institutional investor” is “based” in a particular territory for the purposes of subsections (2A) and (2B) see section 259NDA.

29

After section 259ND insert—

(259NDA) (1) This section has effect for the purposes of this Part. (2) References to “qualifying institutional investor” have the meaning given by paragraph 30A of Schedule 7AC to TCGA 1992. (3) A qualifying institutional investor is “based” in a territory— (a) if it is resident for tax purposes in the territory, or (b) where it is not resident anywhere for tax purposes, if it is established in the territory.

PART 12 — Interaction with Part 4 of TIOPA 2010

30

TIOPA 2010 is amended as follows.

31

In Part 4 (transfer pricing), after section 192 insert—

(192A) (1) Subsection (2) applies to the extent that— (a) there is an amount to be deducted in respect of a payment by the issuing company under the security, (b) that amount is required to be reduced (whether or not to nil) under section 147(3) or (5), (c) the guarantor company makes a claim under section 192(1) in respect of that reduction, and (d) as regards the payment, provision in Part 6A would, but for the reduction, apply in relation to the tax treatment of the issuing company (“the relevant tax treatment”). (2) The relevant tax treatment is to apply in relation to the guarantor company.

32

In Chapter 11 of Part 6A (imported mismatches), in section 259K (overview of chapter), after subsection (4B) (as inserted by paragraph 20) insert—

(4C) Section 259KF contains provision for cases also falling within Part 4 (transfer pricing).

33

After section 259KE (as inserted by paragraph 23) insert—

(259KF) (1) This section applies where, in calculating the profits and losses of P for tax purposes, the amount to be deducted in respect of the imported mismatch payment is required to be reduced (whether or not to nil) under section 147(3) or (5) (tax calculations to be based on arm's length, not actual, provision). (2) For the purposes of section 259KC(2), the amount of the relevant mismatch is to be determined as if the mismatch payment was reduced by the same proportion as the reduction mentioned in subsection (1). (3) For the purposes of section 259KC(3)— (a) the amount of the relevant mismatch is taken to be the amount it would have been had the arm's length provision been made or imposed instead of the actual provision in relation to the imported mismatch payment (making such assumptions as to the amount of the mismatch payment as are reasonable in the circumstances), and (b) P's share of the relevant mismatch is to be determined accordingly. (4) In subsection (3) “the arm's length provision” and “the actual provision” are to be construed in accordance with section 147(1).

PART 13 — Securitisation companies

34

After section 259NE of TIOPA 2010 insert—

(259NEZA) (1) If the tax treatment of a securitisation company would (apart from this section) fall to be adjusted by virtue of provision in this Part, the provision is to be treated as of no effect as regards that company (and accordingly, no such adjustment may be made). (2) In this section— - “securitisation company” means a company to which specified regulations apply; - “specified regulations” has the meaning given by regulation 2 of the Taxation of Securitisation Companies Regulations 2006 (S.I. 2006/3296).

PART 14 — Transparent funds

35

(1) Part 6A of TIOPA 2010 is amended as follows.

(2) In section 259A (overview of Part), after subsection (17) insert—

(17A) Chapter 13A makes provision about the application of Chapters 3, 4, 5, 7, 9 and 11 in cases involving transparent funds (within the meaning of that Chapter).

(3) After Chapter 13 insert—

(259MA) (1) In this Chapter “transparent fund” means a collective investment scheme, or an AIF (that is not a collective investment scheme), if— (a) were all of the profits or income of the fund to arise from sources inside the United Kingdom and (b) were all of its participants within the charge to income tax, its profits or income would be profits or income of its participants for the purposes of that tax. (2) In this section— - “AIF” has the meaning given by regulation 3 of the Alternative Investment Fund Managers Regulations 2013 (S.I. 2013/1773); - “collective investment scheme” has the meaning given by section 235 of the Financial Services and Markets Act 2000; - “participant”, in relation to a transparent fund, means a person who— 1. takes part in the arrangements constituting the fund, whether by becoming the owner of, or of any part of, the property that is the subject of the arrangements or otherwise, and 2. does not have day-to-day control over the management of the property, whether or not they have the right to be consulted or to give directions. (259MB) (1) This section applies where— (a) Chapter 3, 4, 5 or 7 applies in respect of a payment or quasi-payment, (b) the relevant structured arrangement condition is not met, and (c) it is reasonable to suppose that a proportion of the payment or quasi-payment is attributable to a person as a result of that person's interest (direct or indirect) in a transparent fund that is the primary fund in relation to that person. (2) For the purposes of this section, a proportion of a payment or quasi-payment is attributable to a person if, as a result of that payment or quasi-payment— (a) ordinary income arises to that person, or (b) would arise if the person were resident for tax purposes in the United Kingdom. (3) The primary fund in relation to a person is— (a) where the income arises or would arise because of an indirect interest the person has in a transparent fund as a result of another transparent fund, or a series of transparent funds, having an interest in that first fund, that first fund, or (b) where the income arises or would arise because of a direct or indirect interest the person has in a single transparent fund, that fund. (4) The relevant structured arrangement condition is the condition— (a) where Chapter 3 applies, in section 259CA(6)(c), (b) where Chapter 4 applies, in section 259DA(6)(c), (c) where Chapter 5 applies, in section 259EA(7)(c), and (d) where Chapter 7 applies, in section 259GA(7)(c). (5) The Chapter in question applies subject to subsection (6). (6) If it is reasonable to suppose that the proportion of the payment or quasi-payment that is attributable to a person as a result of the person's interest in the primary fund is less than 10% of the relevant amount, that proportion is to be ignored for the purposes of determining the extent of a mismatch under the Chapter in question. (7) For the purposes of subsection (6) “the relevant amount” means the amount of ordinary income that it would, on the relevant assumption, have been reasonable to expect to arise to the primary fund as a result of— (a) in the case of a payment, the payment, or (b) in the case of a quasi payment, the circumstances giving rise to the relevant deduction (see section 259BB(2)). (8) The relevant assumption is that the primary fund were a person to whom ordinary income would arise as a result of that payment or those circumstances. (9) Where a person to whom a proportion of the payment or quasi-payment is attributable as a result of the person's interest in the primary fund is connected (within the meaning given by section 1122 of CTA 2010, ignoring subsections (4) and (7) of that section) to another person to whom a proportion is attributable as a result of that person's interest in that same fund, the rights and interests of those persons are to be aggregated (and accordingly if the proportion attributable between them is 10% or more of the relevant amount, that proportion is not to be ignored). (259MC) (1) This section applies where— (a) Chapter 9 applies in relation to a hybrid entity double deduction amount (see section 259IA(4)) in respect of an investor in a hybrid entity, (b) the condition in section 259IA(6)(b) is not met, and (c) that investor in the hybrid entity is an investor in it as a result of an interest (direct or indirect) it has in a transparent fund (“the relevant fund”) that directly holds an interest in— (i) the hybrid entity, or (ii) another entity that is not a transparent fund and which holds a direct or indirect interest in the hybrid entity. (2) Chapter 9 applies subject to subsection (3). (3) If it is reasonable to suppose that— (a) some or all of the hybrid entity double deduction amount that relates to the investor arises as a result of the investor's interest in the relevant fund, and (b) the amount that arises as a result of that interest (“the relevant amount”) is less than 10% of the potential double deduction amount, the relevant amount is to be ignored for the purposes of determining the extent of a mismatch under that Chapter. (4) In this section “potential double deduction amount” means the hybrid double deduction amount that would arise in relation to the relevant fund if it were an investor in the hybrid entity. (5) Where the investor is connected (within the meaning given by section 1122 of CTA 2010, ignoring subsections (4) and (7) of that section) to another investor with an interest in the relevant fund, the rights and interests of those investors are to be aggregated (and accordingly, if the sum of the relevant amounts in respect of each of them is 10% or more of the potential double deduction amount, that proportion is not to be ignored). (259MD) (1) Subsection (2) applies where— (a) Chapter 11 applies as a result of sub-paragraph (i), (ii), (iii) or (iv) of section 259KA(6)(a) applying as a result of a payment or quasi-payment to which section 259MB would apply if the Chapter corresponding to that sub-paragraph applied in relation to that payment or quasi-payment, and (b) the condition in section 259KA(9)(c) is not met. (2) Where this subsection applies, section 259MB(6) applies for the purposes of determining the extent of a relevant mismatch under Chapter 11. (3) The Chapters corresponding to the sub-paragraphs of section 269KA(6)(a) mentioned in subsection (1) are as follows—

Sub-paragraph (i)	Chapter 3
Sub-paragraph (ii)	Chapter 4
Sub-paragraph (iii)	Chapter 5
Sub-paragraph (iv)	Chapter 7.

(4) Subsection (5) applies where— (a) Chapter 11 applies as a result of section 259KA(6)(a)(vi) applying as a result of a hybrid double deduction amount to which section 259MC would apply if Chapter 9 applied in relation to that amount, and (b) the condition in section 259KA(9)(c) is not met. (5) Where this subsection applies, section 259MC(3) applies for the purposes of determining the extent of a relevant mismatch under Chapter 11.

PART 15 — Commencement

36

Part 6A of TIOPA 2010 has effect, and is deemed always to have had effect—

(a) with the amendments contained in Parts 2 to 3, 7, 10 and 13 of this Schedule, and

(b) with the amendment made by paragraph 26 so far as it applies in relation to a qualifying institutional investor that is an investment trust.

37

The amendments made by Parts 1, 4, 5, 8, 9, 11, 12 and 14 of this Schedule (except that made by paragraph 26 so far as it applies by virtue of paragraph 36(b)) have effect—

(a) in the case of their application to Chapter 6 of Part 6A of TIOPA 2010, in relation to excessive deductions in relation to which the relevant PE period begins on or after the day on which this Act is passed,

(b) in the case of their application to Chapter 9 or 10 of Part 6A of TIOPA 2010, in relation to accounting periods beginning on or after that date, and

(i) payments made on or after that date, or

(ii) quasi-payments in relation to which the payment period begins on or after that date.

38

(1) For the purposes of paragraph 37, where there is a straddling period—

(a) so much of the straddling period as falls before the day on which this Act is passed, and so much of it as falls on or after that date, are to be treated as separate accounting periods or taxable periods (as the case may be), and

(b) if it is necessary to apportion an amount for the straddling period to the two separate periods, it is to be apportioned—

(i) on a time basis, according to the respective length of the separate periods, or

(ii) if that would produce a result that is unjust or unreasonable, on a just and reasonable basis.

(2) A “straddling period” is an accounting period or payment period (as the case may be) beginning before the day on which this Act is passed and ending on or after that date.

39

(1) Notwithstanding paragraph 37, a taxpayer may make an election (a “Part 4 retrospection election”) that the amendments made by Part 4 of this Schedule are to be deemed always to have had effect in relation to the taxpayer.

(2) A Part 4 retrospection election must be made on or before 31 December 2021.

(3) Sub-paragraphs (4) to (9) apply where a Part 4 retrospection election is made by a taxpayer.

(4) The taxpayer may, in consequence of the Part 4 retrospection election, make reasonable adjustments to claims, returns and elections made before the Part 4 retrospection election.

(5) Any such adjustments must be made on or before 31 December 2021 but, subject to that, the time limits otherwise applicable to amending or withdrawing the claim, return or election in question do not prevent an adjustment being made under sub-paragraph (4).

(6) Sub-paragraph (7) applies where—

(a) before the Part 4 retrospection election is made, the taxpayer has made a group relief claim, and

(b) under sub-paragraph (4), the taxpayer withdraws the group relief claim, or withdraws the group relief claim and replaces it with a group relief claim for a lesser amount.

(7) The surrendering company may make such adjustments to claims, returns and elections made before the Part 4 retrospection election as are reasonably necessary in consequence of the withdrawal, or the withdrawal and replacement, of the group relief claim.

(8) Any such adjustments must be made on or before 31 December 2021 but, subject to that, the time limits otherwise applicable to amending or withdrawing the claim, return or election in question do not prevent an adjustment being made under sub-paragraph (7).

(9) In sub-paragraphs (6) to (8)—

“group relief claim” means—a claim for group relief under Part 5 of CTA 2010, ora claim for group relief for carried-forward losses under Part 5A of CTA 2010;

“surrendering company” has the same meaning as in Part 5 or 5A (as the case may be) of CTA 2010.

40

(1) Part 6 of this Schedule (allocation of dual inclusion income within group) has effect in relation to accounting periods of a claimant company that begin on or after 1 January 2021.

(2) A “claimant company” is a company that makes an allocation claim for the purposes of Chapter 12A of Part 6A of TIOPA 2010 (inserted by Part 6 of this Schedule).

(3) For the purposes of sub-paragraph (1), where there is a straddling period—

(a) so much of the straddling period as falls before 1 January 2021, and so much of it as falls on or after that date, are to be treated as separate accounting periods, and

(b) if it is necessary to apportion an amount for the straddling period to the two separate periods, it is to be apportioned—

(i) on a time basis, according to the respective length of the separate periods, or

(ii) if that would produce a result that is unjust or unreasonable, on a just and reasonable basis.

(4) A “straddling period” is an accounting period beginning before 1 January 2021 and ending on or after that date.

SCHEDULE 8

PART 1 — Allocation of deductions allowance of former groups

1

Part 7ZA of CTA 2010 (restrictions on deductions for carried-forward losses and other amounts) is amended as follows.

2

After section 269ZS (group deductions allowance and the nominated company) insert—

(269ZSA) (1) This section applies where— (a) a group ceases to be a group for the purposes of this Part (because the companies that were members of the group no longer together meet the condition in section 269ZZB(2)), and (b) immediately before the group ceased to be a group for the purposes of this Part— (i) two or more members of the group were companies within the charge to corporation tax, and (ii) no group allowance nomination under section 269ZS had effect in relation to the group. (2) All the companies that were, immediately before the group ceased to be a group for the purposes of this Part, members of the group and within the charge to corporation tax may together nominate (“the group allowance nomination”) one of their number (“the nominated company”) for the purposes of this Part. (3) It is irrelevant for the purposes of subsection (2) whether or not the companies (including the nominated company) are within the charge to corporation tax when the nomination is made. (4) A group allowance nomination under this section has effect during the period— (a) beginning with the date on which it is stated to take effect (see section 269ZS(5), as it has effect by virtue of subsection (5)(a) of this section), and (b) ending immediately before the group ceased to be a group for the purposes of this Part. (5) For the purposes of this Part, treat a group allowance nomination under this section as a group allowance nomination under section 269ZS, but that section is to apply to a group allowance nomination under this section subject to the following modifications— (a) section 269ZS(5) has effect as if, for the words in brackets, there were substituted “ (which must be earlier than the date on which the group ceased to be a group for the purposes of this Part) ”; (b) section 269ZS(6) has effect as if, for the words “is, when the nomination is made”, there were substituted “ was, immediately before the group ceased to be a group for the purposes of this Part ”; (c) section 269ZS(7) does not apply (but see subsection (4) of this section); (d) in section 269ZS(8), ignore references to the revocation of a group allowance nomination (however expressed). (6) Only one group allowance nomination under this section may be made in respect of a group.

3

After section 269ZV (group allowance allocation statement: requirements and effects) insert—

(269ZVA) (1) This section applies where— (a) a group ceases to be a group for the purposes of this Part (because the companies that were members of the group no longer together meet the condition in section 269ZZB(2)), and (b) immediately before the group ceased to be a group for the purposes of this Part, a group allowance nomination had effect in relation to the group (including a group allowance nomination made after that event under section 269ZSA). (2) Sections 269ZT to 269ZV have effect subject to the following modifications— (a) section 269ZT(2)(a) does not apply to the company that was the nominated company under the group allowance nomination mentioned in subsection (1)(b) (accordingly, that company may submit a group allowance allocation statement under section 269ZT); (b) for the purposes of sections 269ZT(2)(b), 269ZU(2) and 269ZV(7) and (8), treat the company that was the nominated company under the group allowance nomination mentioned in subsection (1)(b) as the company that is, for the time being, the nominated company in relation to the group; (c) section 269ZV(5A) has effect as if the reference to a listed company that is the ultimate parent of a group were to a listed company that was the ultimate parent of the group immediately before the group ceased to be a group for the purposes of this Part.

PART 2 — Other amendments of CTA 2010

Amendments of section 137 of CTA 2010

4

In section 137 of CTA 2010 (deductions from total profits for claims for group relief), in subsection (5)—

(a) omit paragraph (d);

(b) at the end insert—

(e) of a type to which section 269ZB(2), 269ZBA(2), 269ZC(2) or 269ZD(2) of Part 7ZA (restrictions on deductions for carried-forward losses and other amounts) could apply.

Amendments of Part 5A of CTA 2010

5

Part 5A of CTA 2010 (group relief for carried-forward losses) is amended as follows.

6

In section 188BE (restriction on surrendering losses etc where surrendering company could use them itself), for the existing text substitute—

The surrendering company may not surrender under this Chapter any loss or other amount carried forward to the surrender period to the extent that the loss or other amount could be deducted from the total profits of the company for the period at Step 2 of section 4(2).

7

(1) Section 188DD (claimant company's relevant maximum for overlapping period) is amended as follows.

(2) In subsection (3), for “269ZD(6)” substitute “ 269ZDA ”.

(3) In subsection (3A)—

(a) in paragraph (a), for “qualifying trading profits and qualifying non-trading profits” substitute “ modified total profits ”;

(b) in paragraph (b), for “in determining” substitute “ which could be relieved against ”.

Amendments of Part 7ZA of CTA 2010

8

Part 7ZA of CTA 2010 is amended as follows.

9

In section 269ZF(3) (steps for determining a company's qualifying trading profits, qualifying non-trading income profits and qualifying chargeable gains), in paragraph (2) of step 2—

(a) for “sum,” substitute

sum— (a)

;

(b) at the end insert

, and (b) ignore any amount (or any part of any amount) which could be relieved against the company's total profits of the accounting period on the making of a claim in respect of the amount (or part) if a claim is not in fact made in respect of it.

10

In section 269ZFA (“relevant profits” for purposes of section 269ZD), in subsection (1), after paragraph (b) insert—

But if the allowance mentioned in paragraph (b) exceeds the profits mentioned in paragraph (a), the company's “relevant profits” for the accounting period are nil.

11

(1) Section 269ZT (group allowance allocation statement: submission) is amended as follows.

(2) In subsection (1), for “and (3)” substitute “ to (3A) ”.

(3) After subsection (3) insert—

(3A) A company need not submit a group allowance allocation statement to HMRC for an accounting period if the statement would, if submitted, allocate no amount of group deductions allowance in accordance with section 269ZV(3)(f).

(4) In subsection (4), for the words from “before” to the end substitute

on or before whichever is the latest of the following dates— (a) the first anniversary of the filing date for the company tax return for the accounting period to which the statement relates; (b) if notice of enquiry (within the meaning of Schedule 18 to FA 1998) is given into a company tax return of a company for an accounting period for which an amount of group deductions allowance is, or could be, allocated by the statement, 30 days after the enquiry is completed; (c) if, after such an enquiry, an officer of Revenue and Customs amends the return under paragraph 34(2) of that Schedule, 30 days after the notice of amendment is issued; (d) if an appeal is brought against such an amendment, 30 days after the date on which the appeal is finally determined.

12

In section 269ZV(5) (maximum amount of group deductions allowance that may be allocated to a listed company by a group allowance allocation statement)—

(a) In the definition of “DAP”—

(i) in paragraph (a), after “period” insert “ on which the nominee was the nominated company in relation to the group ”;

(ii) in paragraph (b), after “which the” insert “ listed ”;

(b) in the definition of “DNAP”, after “period” insert “ on which the nominee was the nominated company in relation to the group ”.

Amendments of Chapter 7 of Part 14 of CTA 2010

13

Chapter 7 of Part 14 of CTA 2010 (meaning of “change in the ownership of a company”) is amended as follows.

14

In section 719(4A) (certain acquisitions giving rise to a change in the ownership of a company) for “2D” substitute “ 2E ”.

15

In section 721(4) (things other than ordinary share capital that may be taken into account in determining change in ownership), after “2D,” insert “ 2E, ”.

PART 3 — Commencement and transitional provision

Commencement

16

(1) The amendments made by paragraphs 2 and 3 have effect in relation to accounting periods beginning on or after 1 April 2017.

(2) Where a company has an accounting period beginning before 1 April 2017 and ending on or after that date (“the straddling period”)—

(a) so much of the straddling period as falls before 1 April 2017, and so much of that period as falls on or after that date, are treated as separate accounting periods, and

(b) where it is necessary to apportion an amount for the straddling period to the two separate accounting periods, it is to be apportioned—

(i) in accordance with section 1172 of CTA 2010 (time basis), or

(ii) if that method would produce a result that is unjust or unreasonable, on a just and reasonable basis.

17

The amendments made by paragraphs 4, 6 and 11 have effect in relation to accounting periods beginning on or after 1 April 2021.

18

The amendments made by paragraph 7 have effect as if they had been made by Schedule 4 to FA 2020 (see Part 3 of that Schedule).

19

The amendments made by paragraphs 9 and 10 are to be treated as having always had effect.

20

The amendments made by paragraph 12 have effect in relation to a group allowance allocation statement submitted under section 269ZT or 269ZU of CTA 2010 in respect of an accounting period beginning on or after 1 April 2021.

21

The amendments made by paragraphs 14 and 15 have effect in relation to an acquisition that takes place on or after 1 April 2021.

Transitional provision

22

(1) This paragraph applies where—

(a) section 269ZSA of CTA 2010 (inserted by paragraph 2 of this Schedule) applies in relation to a group (see section 269ZSA(1)),

(b) the group ceased to be a group for the purposes of Part 7ZA of CTA 2010 before the date on which this Act is passed, and

(c) one or more (but not all) of the companies that were, immediately before the group ceased to be a group for those purposes, members of the group and within the charge to corporation tax (the “former group companies”) no longer exist.

(2) If two or more of the former group companies still exist—

(a) section 269ZSA(2) of CTA 2010 has effect as if the reference to all the companies mentioned in that provision were to all the former group companies that still exist;

(b) section 269ZS(6) of CTA 2010, as it has effect by virtue of section 269ZSA(5)(b) of that Act, has effect as if the reference to each company mentioned in that provision were to each former group company that still exists.

(3) If only one of the former group companies still exists—

(a) section 269ZSA(2) of CTA 2010 has effect as if it enabled that company to nominate itself for the purposes of Part 7ZA of that Act;

(b) section 269ZS(6) of CTA 2010, as it has effect by virtue of section 269ZSA(5)(b) of that Act, has effect as if it provided that a group allowance nomination is of no effect unless it is signed by the appropriate person on behalf of that company.

23

(1) This paragraph applies where, in a case to which section 269ZVA of CTA 2010 (inserted by paragraph 3 of this Schedule) applies—

(a) the company that was the nominated company under the group allowance nomination mentioned in section 269ZVA(1)(b) of CTA 2010 must submit a group allowance allocation statement to HMRC (under section 269ZT of that Act, as that section has effect by virtue of section 269ZVA of that Act), and

(b) the date given by section 269ZT(4) of CTA 2010, as the date on or before which the statement must be received by HMRC, is earlier than 31 March 2022.

(2) For the purposes of Part 7ZA of CTA 2010, section 269ZT(4) of that Act is satisfied if the statement is received by HMRC on or before 31 March 2022.

SCHEDULE 9

PART 1 — Secondary liability and assessment notices

Effect of secondary liability and assessment notice

1

A secondary liability and assessment notice given to a person (“R”) makes that person liable to pay an amount which is equal to or less than an amount of plastic packaging tax which another person (“P”) is liable to pay in relation to an accounting period of P (the “relevant time”) but which P has failed to pay on or before the date on which the amount became due and payable.

Test for giving a secondary liability and assessment notice

2

(1) The Commissioners may give a secondary liability and assessment notice to R if they consider that—

(a) R is acting in the course of a related business, and

(b) sub-paragraph (2) or (3) applies to R.

(2) This sub-paragraph applies to R if—

(a) R is or has been concerned in, or in the taking of steps with a view to, P failing to pay plastic packaging tax, and

(b) R knows or ought to know that R is or was so concerned.

(3) This sub-paragraph applies to R if—

(a) R is or has been involved in transporting, storing or otherwise dealing with a chargeable plastic packaging component, and

(b) R knows or ought to know that P has failed to pay plastic packaging tax which P is liable to pay in respect of the component.

(4) The Commissioners may—

(a) by regulations make provision about the factors which they may take into account in considering whether they may give a secondary liability and assessment notice to R;

(b) issue directions about those factors.

(5) The Commissioners may—

(a) give R more than one secondary liability and assessment notice in relation to the same relevant time;

(b) give R a secondary liability and assessment notice whether or not P has asked HMRC to review, or has appealed against, a decision that P is liable to pay some or all of the amount of plastic packaging tax which P has failed to pay as mentioned in paragraph 1.

Content of secondary liability and assessment notice

3

(1) A secondary liability and assessment notice must—

(a) set out why the Commissioners consider that it is appropriate to give a secondary liability and assessment notice to R under paragraph 2(1);

(b) specify the amount which the Commissioners have assessed that P has failed to pay as mentioned in paragraph 1;

(d) specify how and when R must pay;

(e) specify how late payment interest will accrue if R does not make the payment by the date on which it is due and payable;

(f) set out how the Commissioners assessed the amount which R is required to pay.

(2) The amount must be an amount which the Commissioners consider just and reasonable, having regard in particular to their reasons for considering that paragraph 2(2) or (3) applies to R.

(3) The Commissioners must publish guidance on the matters which they will take into account when determining whether an amount is just and reasonable.

(4) A secondary liability and assessment notice may not require R to pay an amount before the end of the period of 30 days beginning with the day on which the notice is given to R.

(5) An amount assessed and notified to R in a secondary liability and assessment notice is recoverable on the basis that it is an amount of plastic packaging tax due from R.

(6) But sub-paragraph (5) does not apply if, or to the extent that, the assessment has been withdrawn or reduced.

Copy of notice to be given to P

4

When the Commissioners give a secondary liability and assessment notice to R, they must, as soon as practicable, give a copy of that notice to P.

Application to revoke or reduce amount

5

(1) R may apply to the Commissioners to—

(a) revoke a secondary liability and assessment notice, on the grounds that R took all reasonable steps to establish that P had paid or intended to pay all the plastic packaging tax which P was liable to pay in relation to the relevant time, or

(b) reduce the amount which R is required to pay by a secondary liability and assessment notice, on the grounds that the amount is not just and reasonable.

(2) The Commissioners may by regulations make provision about—

(a) the steps which are to be regarded as reasonable for the purposes of sub-paragraph (1)(a);

(b) applications for the purposes of sub-paragraph (1).

(3) The regulations may (among other things) make provision about information that must be supplied as part of an application.

(4) The Commissioners must notify R of their decision in response to an application under sub-paragraph (1) within the period of 30 days beginning with the day on which they receive the application.

(5) If the Commissioners decide to reduce the amount which R is required to pay, the notification of their decision must specify—

(a) the new amount which R is liable to pay, and

(b) how and when R must pay.

(6) R may not be required to pay the new amount before the end of the period of 30 days beginning with the day on which the notification is given to R.

(7) The Commissioners must repay any amount which R has paid in excess of the new amount.

Limitation on secondary liability

6

(1) The Commissioners may not give a secondary liability and assessment notice to R in respect of an amount of plastic packaging tax after the end of the period of 2 years beginning with—

(a) the day after the last day of the accounting period by reference to which P was liable to pay the amount, or, if later,

(b) the day on which a court or tribunal finally determines that P is liable to pay the amount.

(2) But in a case involving a loss of tax brought about deliberately by R or P (whether acting alone or with another person) sub-paragraph (1) has effect as if the reference to 2 years were to 20 years.

Reduction of amount where P’s liability is reduced

7

(1) Where the amount which P is liable to pay in relation to the relevant time is reduced for any reason the Commissioners must consider whether to reduce the amount which R is liable to pay.

(2) If the Commissioners decide to reduce or cancel the amount which R is liable to pay, they must, within the period of 30 days beginning with the day on which they make their decision—

(a) inform R of the new amount which R is liable to pay (if any), and

(b) repay any amount which R has paid in excess of the new amount.

(3) The new amount must be such amount as the Commissioners consider just and reasonable, having regard in particular to their reasons for considering that paragraph 2(2) or (3) applies to R.

(4) Where P's liability to pay in relation to the relevant time is cancelled, the Commissioners must, within the period of 30 days beginning with the day on which that happens—

(a) notify R that the secondary liability and assessment notice is revoked, and

(b) repay any amount which R has paid.

No double payment

8

(1) R may not be required to pay any amount by a secondary liability and assessment notice if or to the extent that P has paid the amount mentioned in paragraph 1.

(2) P may not be required to pay the amount mentioned in paragraph 1 if or to the extent that R has paid an amount referable to that amount.

PART 2 — Joint and several liability notices

Effect of joint and several liability notice

9

A joint and several liability notice given to a person (“R”) makes that person jointly and severally liable to pay plastic packaging tax that another person (“P”) will be liable to pay in respect of so much of any accounting period of P as falls within the period of two years beginning with—

(a) the day on which the notice is given to R, or

(b) if a joint and several liability notice is given to R at a time when another joint and several liability notice already has effect in relation to R, the day after the day on which the previous notice ceases to have effect.

Test for giving joint and several liability notice

10

(1) The Commissioners may give a joint and several liability notice to R if the Commissioners consider that—

(a) R is acting in the course of a related business, and

(b) sub-paragraph (2) or (3) applies to R.

(2) This sub-paragraph applies to R if—

(a) R is concerned in, or in the taking of steps with a view to, P not paying plastic packaging tax, and

(b) R knows or ought to know that R is so concerned.

(3) This sub-paragraph applies to R if—

(a) R is involved in transporting, storing or otherwise dealing with a chargeable plastic packaging component in respect of which P is or will be liable to pay plastic packaging tax,

(b) P has not paid that tax in respect of that component, and

(4) The Commissioners may—

(a) by regulations make provision about the factors which they may take into account in considering whether they may give a joint and several liability notice to R;

(b) issue directions about those factors.

Content of joint and several liability notice

11

A joint and several liability notice must—

(a) state that R is jointly and severally liable with P to pay any plastic packaging tax that P is liable to pay in respect of so much of any accounting period of P as falls within the period of two years determined in accordance with paragraph 9, and

(b) set out why the Commissioners consider that it is appropriate to give a joint and several liability notice to R under paragraph 10(1), including whether the Commissioners consider that paragraph 10(2) or (3) (or both) applies to R.

Copy of notice to be given to P

12

When the Commissioners give a joint and several liability notice to R, they must, as soon as practicable, give a copy of that notice to P.

Revocation

13

(1) After being given a joint and several liability notice R must notify the Commissioners if paragraph 10(2)(a) or, as the case may be, (3)(a) (or both), does not apply or ceases to apply to R, including as a result of R ceasing to have dealings with P, at any time within the period of two years mentioned in paragraph 9.

(2) If—

(a) R notifies the Commissioners under sub-paragraph (1) within the period of 30 days beginning with the day on which R is given the joint and several liability notice (the “cancellation period”), and

(b) as a result of the notification the Commissioners consider that paragraph 10(2)(a) or, as the case may be, (3)(a), does not apply to R, including as a result of R ceasing to have dealings with P during the cancellation period,

the Commissioners must notify R that the joint and several liability notice is revoked with the result that R is not liable to pay any plastic packaging tax as mentioned in paragraph 9.

(3) If R does not notify the Commissioners under sub-paragraph (1), or notifies them only after the end of the cancellation period, R must be treated in relation to the period of liability as—

(a) knowing that R is concerned in, or in the taking of steps with a view to, P not paying plastic packaging tax as mentioned in paragraph 10(2), or

(b) knowing that P has not paid and intends not to pay tax as mentioned in paragraph 10(3).

(4) The period of liability is—

(a) if R does not notify the Commissioners under sub-paragraph (1) within the period of two years mentioned in paragraph 9, that period of two years, or

(b) if R does notify the Commissioners under sub-paragraph (1) within that period of two years but after the cancellation period, and as a result of the notification the Commissioners accept that paragraph 10(2)(a) or, as the case may be, (3)(a), does not apply to R—

(i) the cancellation period, or,

(ii) if the Commissioners consider that paragraph 10(2)(a) or, as the case may be, (3)(a), applied to R after the cancellation period, the period beginning with the day on which the joint and several liability notice was given to R and ending with the day on which the Commissioners consider that paragraph 10(2)(a) or, as the case may be, (3)(a), ceased to apply to R.

(5) The Commissioners must inform R and P of the result of a notification under sub-paragraph (1) within the period of 30 days beginning with the day on which they are given the notification.

14

(1) P may apply to the Commissioners to revoke a joint and several liability notice given to R, on the ground that the Commissioners were wrong to consider that paragraph 10(2) or (3) applies to R so far as relating to anything done or not done by, or any intention of, P.

(2) An application under sub-paragraph (1) must be made within the period of 30 days beginning with the day on which the Commissioners give a copy of the notice to P.

(3) The Commissioners must notify R and P of their decision in response to an application under sub-paragraph (1) within the period of 30 days beginning with the day on which they receive the application.

15

(1) The Commissioners may by regulations make further provision about—

(a) notifications for the purposes of paragraph 13(1);

(b) applications for the purposes of paragraph 14(1).

(2) The regulations may (among other things) make provision about information that must be supplied as part of the notification or application.

Assessments of liability

16

(1) Where P is liable to pay an amount of plastic packaging tax, the Commissioners may assess that R is liable to pay an amount equal to or less than the amount due from P.

(2) Where such an assessment is made, the Commissioners must notify R of—

(a) the amount due from P;

(b) the amount assessed as due from R;

(d) the date by which payment must be made;

(e) how payment must be made;

(f) how late payment interest will accrue if R does not make the payment by the date on which it is due and payable.

(3) The amount assessed as due from R must be an amount which the Commissioners consider just and reasonable, having regard in particular to—

(a) their reasons for considering that paragraph 10(2) or (3) applies to R, and

(b) the requirement mentioned in paragraph 13(3) (requirement to treat R as knowingly involved in P's failure to pay tax).

(4) The Commissioners must publish guidance on the matters which they will take into account when determining whether an amount is just and reasonable.

(5) The date by which payment must be made may not be before the end of the period of 30 days beginning with the day on which R is notified in accordance with sub-paragraph (2).

(6) An amount may be assessed and notified to R even if R has made a notification under paragraph 13(1) (and the Commissioners must repay any amount that is subsequently found to have been overpaid).

Adjustments

17

(1) Where an assessment to P is withdrawn or reduced, or P's liability in respect of plastic packaging tax is otherwise adjusted, the Commissioners may determine that R's liability is to be cancelled or reduced, or otherwise adjusted, in whatever way they consider just and reasonable, having regard in particular to their reasons for considering that paragraph 10(2) or (3) applies to R.

(2) If the Commissioners decide to reduce or cancel the amount which R is liable to pay, or make any other adjustment to the assessment to R, they must, within the period of 30 days beginning with the day on which they make their decision—

(a) inform R of the new amount which R is liable to pay (if any), and

(b) repay any amount which R has paid in excess of the new amount.

Limitation on assessments

18

R may not be notified of any assessment under paragraph 16(2) or of any increase in an assessment under paragraph 4(2) of Schedule 10 in respect of an amount after the end of the period of 2 years beginning with—

(a) the day after the last day of the accounting period by reference to which P was liable to pay the amount, or, if later,

(b) the day on which a court or tribunal finally determines that P is liable to pay the amount.

No double payment

19

R may not be required to pay plastic packaging tax if or to the extent that P has paid it (and vice versa).

PART 3 — Application of Schedule 10

20

(1) Schedule 10 applies with any necessary modifications, and subject as follows, in relation to any amount which R is liable to pay as a result of a secondary liability and assessment notice or a joint and several liability notice.

(2) Paragraphs 4 to 6 of that Schedule apply in relation to an assessment under paragraph 16(1) of this Schedule as they apply to an assessment under paragraph 2(2) of that Schedule, except that paragraph 6 applies as if, in sub-paragraph (2), “4” were “2”.

PART 4 — Interpretation

21

In this Schedule—

(a) “related business” means a business that is—

(i) involved in the production or importation of chargeable plastic packaging components by P, including in the transportation or storage of the components, or in the manufacture or supply of raw or processed materials used in, or in the production of, the components,

(ii) supplied, whether directly or indirectly, with chargeable plastic packaging components produced or imported by P, or

(iii) involved in the marketing or sale of chargeable plastic packaging components by P as an operator of an online marketplace or fulfilment business, and

(b) references to acting in the course of a related business include—

(i) in relation to a business that is carried on by a body corporate, being a director, manager, secretary, chief executive or member of the committee of management, or a person purporting to act in such a capacity, and

(ii) in relation to a business that is carried on by an unincorporated body (other than a partnership), being an officer of the the body or a member of its governing body, or a person purporting to act in such a capacity.

Interpretation: general

22

(1) In this Schedule—

(a) references to “R” and “P” have the meanings given by paragraph 1, in relation to secondary liability and assessment notices, or 9, in relation to joint and several liability notices;

(b) references to P paying, failing to pay or being liable to pay an amount of plastic packaging tax are references to P paying, failing to pay or being liable to pay in accordance with provisions of or under this Part apart from this Schedule;

(c) references to an amount of plastic packaging tax which P is liable to pay include references to an amount which P would have been liable to pay but for anything done, or not done, by R.

(2) In this Schedule—

“fulfilment business” means a business that stores or packs goods that are owned by another person with a view to sale by that person;

“online marketplace” means a website, or any other means by which information is made available over the internet, which facilitates the sale of goods through the website or other means by persons other than the operator (whether or not the operator also sells goods through the marketplace);

“operator” means the person who controls access to, and the contents of, the online marketplace or the fulfilment business.

(3) The Commissioners may by regulations—

(a) provide that goods offered for sale in circumstances specified in the regulations are or are not to be treated, for the purposes of this Schedule, as having been offered through an online marketplace or a fulfilment business;

(b) amend this paragraph so as to alter the definitions of “online marketplace”, “operator” and “fulfilment business”.

SCHEDULE 10

PART 1 — Recovery

Recovery as a debt due

1

Plastic packaging tax is recoverable as a debt due to the Crown.

Assessments of amounts of plastic packaging tax due

2

(1) Sub-paragraph (2) applies where it appears to the Commissioners—

(a) that any period is an accounting period by reference to which a person who is registered or who is liable to be registered is liable to pay plastic packaging tax,

(b) that an amount of plastic packaging tax for which that person is liable to account by reference to that period has become due, and

(2) The Commissioners—

(a) may—

(i) in a case where the amount of plastic packaging tax due from the person for that period cannot be ascertained, assess the amount due from the person for that period to the best of their judgement;

(ii) in any other case, assess the amount due from the person for that period, and

(b) where such an assessment is made, must notify the person of that amount.

(3) The following are “relevant defaults”—

(a) a failure to comply with a requirement of regulations under section 58;

(b) a failure to make a return required to be made by regulations under section 61;

(d) the making, in purported compliance with a requirement of those regulations, of an incomplete or incorrect return;

(e) a failure to comply with a requirement imposed by or under section 63;

(f) a failure to provide the Commissioners with complete or accurate information in complying with any requirement imposed by or under this Part;

(g) an unreasonable delay in complying with a requirement, where the failure to comply would be a default within any of paragraphs (a) to (f).

(4) Where it appears to the Commissioners that a default falling within sub-paragraph (3) is a default by a person (A) on whom the requirement to make a return is imposed in A's capacity as the representative of another person (B), sub-paragraph (1)(b) applies as if the reference to the amount of plastic packaging tax due included a reference to any plastic packaging tax due from B.

3

(1) Sub-paragraph (2) applies where—

(a) the Commissioners have made an assessment for an accounting period as a result of a person's failure to make a return for that period,

(b) the plastic packaging tax assessed has been paid but no proper return has been made for that period, and

(c) as a result of a failure to make a return for a later accounting period, the Commissioners make another assessment (“the later assessment”) under paragraph 2 in relation to the later period.

(2) The Commissioners may, if they consider it appropriate in light of the absence of a proper return for the earlier period, specify in the later assessment an amount of plastic packaging tax due that is greater than the amount that they would have considered to be appropriate had they had regard only to the later period.

Supplementary assessments

4

(1) Sub-paragraph (2) applies where—

(a) an assessment has been notified to a person under paragraph 2(2), and

(b) it appears to the Commissioners that the amount which ought to have been assessed as due exceeds the amount that has already been assessed.

(2) The Commissioners—

(a) may make a supplementary assessment of the amount of plastic packaging tax due from the person to the best of their judgement, and

(b) where such an assessment is made, must notify the person of that amount.

Further provision about assessments under paragraphs 2 and 4

5

(1) An amount assessed and notified to a person under paragraph 2 or 4 is recoverable on the basis that it is an amount of plastic packaging tax due from that person.

(2) But sub-paragraph (1) does not apply if, or to the extent that, the assessment has been withdrawn or reduced.

Time limits for assessments

6

(1) An assessment under paragraph 2 or 4 may not be made after the relevant time.

(2) Except in a case within sub-paragraph (3) the relevant time is the earlier of—

(a) the end of the period of 4 years from the end of the accounting period to which the assessment relates, or

(b) the end of the period of 1 year beginning with the day on which evidence of facts, sufficient in the opinion of the Commissioners to justify the making of the assessment, comes to their knowledge.

(3) Where an assessment of an amount due from a person is made in a case involving loss of plastic packaging tax—

(a) brought about deliberately by the person, or

(b) attributable to a failure by the person to comply with a requirement of section 55 or a requirement of regulations under section 58,

the relevant time is the end of the period of 20 years from the end of the accounting period to which the assessment relates.

(4) In sub-paragraph (3) the reference to a loss brought about by a person includes a reference to a loss brought about by another person acting on behalf of that person.

PART 2 — Repayments

Repayments of overpaid tax

7

(1) This paragraph applies where a person (P) has paid an amount to the Commissioners by way of plastic packaging tax which was not tax due.

(2) The Commissioners are liable, on the making of a claim by P, to repay the amount.

(3) The Commissioners may by regulations make provision about—

(a) the form and manner of a claim;

(b) the information required in support of a claim.

(4) Except as provided by this paragraph, the Commissioners are not liable to repay any amount paid by way of plastic packaging tax by reason of the fact that it was not tax due.

(5) This paragraph is subject to paragraph 8.

Supplementary provision about repayment etc

8

(1) The Commissioners are not liable, on any claim for a repayment of plastic packaging tax, to repay any amount—

(a) paid more than 4 years before the making of the claim;

(b) if, or to the extent that, any person has become entitled to a tax credit in respect of that amount.

(2) It is a defence to any claim for repayment of an amount of plastic packaging tax that the repayment of that amount would unjustly enrich the claimant.

9

(1) This paragraph applies where—

(a) an amount has been paid by way of plastic packaging tax which (apart from paragraph 8(2)) would fall to be repaid to a person (P), and

(b) the whole or a part of the cost of the payment of that amount to the Commissioners has, for practical purposes, been borne by a person other than P.

(2) Where loss or damage has been, or may be, incurred by P as a result of mistaken assumptions made in P's case about the operation of any provisions relating to plastic packaging tax, that loss or damage is to be disregarded, except to the extent of the quantified amount, in the making of a relevant determination.

(3) In sub-paragraph (2)—

(a) “the quantified amount” means the amount (if any) which is shown by P to constitute the amount that would appropriately compensate P for loss or damage shown by P to have resulted, for any business carried on by P, from the making of the mistaken assumptions;

(b) a “relevant determination” means a determination for the purposes of paragraph 8(2) as to—

(i) whether or to what extent the repayment of an amount would enrich P, or

(ii) whether or to what extent any enrichment of P would be unjust.

(4) The reference in sub-paragraph (2) to provisions relating to plastic packaging tax is a reference to—

(a) any provision made by or under any enactment which relates to the tax or to any matter connected with it, or

(b) any notice published by the Commissioners under or for the purposes of any such provision.

Reimbursement arrangements

10

(1) The Commissioners may by regulations make provision for reimbursement arrangements to be disregarded for the purposes of paragraph 8(2) except where the arrangements—

(a) contain such provision as may be required by the regulations, and

(b) are supported by such undertakings to comply with the provisions of the arrangements as may be required by the regulations to be given to the Commissioners.

(2) In this paragraph “reimbursement arrangements” means arrangements for the purposes of a claim to a repayment of plastic packaging tax which—

(a) are made by a person for the purpose of securing that the person is not unjustly enriched by the repayment of any amount in pursuance of the claim, and

(b) provide for the reimbursement of a person who has for practical purposes borne the whole or any part of the cost of the original payment of that amount to the Commissioners.

(3) Regulations under this paragraph may (among other things) make provision requiring reimbursement arrangements to contain provision—

(a) requiring a reimbursement for which the arrangements provide to be made within a specified period after the repayment to which it relates;

(b) for the repayment of amounts to the Commissioners where those amounts are not reimbursed in accordance with the arrangements;

(c) requiring interest paid by the Commissioners on any amount repaid by them to be treated in the same way as that amount for the purposes of any requirement under the arrangements to make reimbursement or to repay the Commissioners;

(d) requiring records of a specified description relating to the arrangements to be kept and produced to the Commissioners, or to an officer of HMRC;

(e) imposing obligations on specified persons for the purposes of provision made under paragraphs (a) to (d).

(4) Regulations under this paragraph may—

(a) make provision about the form, manner and timing of undertakings given to the Commissioners in accordance with the regulations;

(b) provide for those matters to be determined by the Commissioners in accordance with the regulations.

Assessment for excessive repayment

11

(1) Sub-paragraph (3) applies where—

(a) an amount has been paid at any time to a person by way of a repayment of plastic packaging tax, and

(b) the amount paid exceeded the amount which the Commissioners were liable at that time to repay to that person.

(2) Sub-paragraph (3) also applies where a person is liable to pay any amount to the Commissioners in pursuance of an obligation imposed by regulations under paragraph 10(3)(b), (c) or (e).

(3) The Commissioners may—

(a) to the best of their judgement, assess the amount of the excess (in a case within sub-paragraph (1)) or the amount due (in a case within sub-paragraph (2)), and

(b) where such an assessment is made, notify the amount to the person.

(4) Subject to sub-paragraph (5), where—

(a) an assessment is made on any person under this paragraph in respect of a repayment of plastic packaging tax, and

(b) the Commissioners have power under Part 1 of this Schedule to make an assessment on that person as to an amount of plastic packaging tax due from that person,

the assessments may be combined and notified to the person as one assessment.

(5) A notice of a combined assessment under sub-paragraph (4) must separately identify the amount being assessed in respect of repayments of plastic packaging tax.

Supplementary assessments

12

(1) Sub-paragraph (2) applies where—

(a) an assessment has been notified to a person under paragraph 11, and

(b) it appears to the Commissioners that the amount which ought to have been assessed as due exceeds the amount that has already been assessed.

(2) The Commissioners may—

(a) on or before the last day on which the assessment under paragraph 11 could have been made, make a supplementary assessment of the amount of plastic packaging tax due from the person, and

(b) where such a supplementary assessment is made, notify the amount to that person.

Further provision about assessments under paragraphs 11 and 12

13

(1) Where an amount has been assessed and notified to a person under paragraph 11 or 12, it is recoverable on the basis that it is an amount of plastic packaging tax due from that person.

(2) But sub-paragraph (1) does not have effect if, or to the extent that, the assessment has been withdrawn or reduced.

Time limit for assessments

14

An assessment under paragraph 11 or 12 may not be made more than 2 years after evidence of facts sufficient in the opinion of the Commissioners to justify making the assessment comes to their knowledge.

SCHEDULE 11

PART 1 — Appealable decisions etc

Appealable decisions etc

1

(1) A person may appeal against a decision of the Commissioners or an officer of HMRC in respect of any of the following matters—

(a) whether or not a person is liable to pay an amount of plastic packaging tax;

(b) the amount of plastic packaging tax payable by a person;

(c) the registration, or cancellation of registration, of a person under this Part for the purposes of plastic packaging tax;

(d) the issuing of a secondary liability and assessment notice under paragraph 2 of Schedule 9;

(e) a refusal to revoke a secondary liability and assessment notice under paragraph 5 of Schedule 9;

(f) the issuing of a joint and several liability notice under paragraph 10 of Schedule 9;

(g) a refusal to revoke a joint and several liability notice under paragraph 13 or 14 of Schedule 9;

(h) a decision about the date on which the revocation of a joint and several liability notice is to have effect in accordance with a notification given under paragraph 13 of Schedule 9;

(i) a person's entitlement to a tax credit, the withdrawal of a tax credit, the amount of a tax credit or the period for which a tax credit is to be brought into account under regulations under section 53;

(j) a decision to require any security under regulations under section 65 or as to its amount;

(k) whether the Commissioners are liable to repay an amount to a person under paragraph 7(2) of Schedule 10 or the amount of such a repayment;

(l) whether or not the repayment of an amount under that paragraph is excessive (see paragraph 11 of that Schedule);

(m) the amount that a person is liable to pay the Commissioners in pursuance of an obligation imposed by regulations under paragraph 10(3)(b), (c) and (e) of that Schedule;

(n) whether or not a person is liable to a penalty under this Part or in respect of this Part or the amount of such a penalty;

(o) the period by reference to which payments of plastic packaging tax are to be made.

(2) A person may also appeal against the following determinations and directions of the Commissioners or an officer of HMRC—

(a) a determination that a packaging component—

(i) is a plastic packaging component;

(ii) is chargeable;

(b) a direction under section 63(4);

(i) that a person must appoint a tax representative;

(ii) not to approve the appointment of a tax representative;

(iii) withdrawing their approval of a tax representative;

(iv) requiring the replacement of a tax representative;

(d) the giving of a direction or supplementary direction by the Commissioners under section 72(2) or (4);

(e) a determination in respect of an application under regulations under section 74 or 75;

(f) a direction given to the person under paragraph 2(4)(b) or 10(4)(b) of Schedule 9;

(g) a determination on an application under Schedule 13 for group treatment or a determination by the Commissioners to terminate group treatment under that Schedule.

2

In Parts 2 and 3 of this Schedule, references to a decision include references to a determination and a direction.

PART 2 — Reviews

Offer of review

3

(1) HMRC must offer a person (P) a review of a decision that has been notified to P if an appeal in respect of the decision may be brought under paragraph 1.

(2) The offer of the review must be made by notice given to P at the same time as the decision is notified to P.

(3) This paragraph does not apply to the notification of the conclusions of a review.

Right to require review

4

(1) Any person (other than P) who has the right of appeal under paragraph 1 against a decision may require HMRC to review that decision if the person has not appealed to the appeal tribunal under that paragraph.

(2) A notification that such a person requires a review must be made within the period of 30 days beginning with the day on which that person became aware of the decision.

Review by HMRC

5

(1) HMRC must review a decision if—

(a) they have offered a review of the decision under paragraph 3, and

(b) P notifies HMRC accepting the offer within the period of 30 days beginning with the date of the document notifying P of the decision.

(2) But P may not notify acceptance of the offer if P has already appealed to the appeal tribunal under paragraph 1.

(3) HMRC must also review a decision if a person other than P notifies them under paragraph 4.

(4) HMRC may not review a decision if P, or another person, has appealed to the appeal tribunal under paragraph 1 in respect of the decision.

Extensions of time for requiring review

6

(1) If under paragraph 3 HMRC have offered P a review of a decision, HMRC may within the period for requiring a review notify P that that period is extended.

(2) If under paragraph 4 another person may require HMRC to review a matter, HMRC may within the period for requiring a review notify the other person that that period is extended.

(3) If notice is given the period for requiring a review is extended to the end of the period of 30 days beginning with—

(a) the date of the notice, or

(b) any other date set out in the notice or a further notice.

(4) In this paragraph, “period for requiring a review” means—

(a) the period of 30 days referred to in—

(i) paragraph 5(1)(b)(in a case falling within sub-paragraph (1)), or

(ii) paragraph 4(2) (in a case falling within sub-paragraph (2)), or

(b) if notice has been given under sub-paragraph (1) or (2), that period as extended (or as most recently extended) in accordance with sub-paragraph (3).

Review out of time

7

(1) This paragraph applies if—

(a) HMRC have offered a review of a decision under paragraph 3 and P does not accept the offer within the time allowed under paragraph 5(1)(b) or 6(3), or

(b) a person who requires a review under paragraph 4 does not notify HMRC within the time allowed under paragraph 4(2) or 6(3).

(2) HMRC must review the decision under paragraph 5 if—

(a) after the time allowed, P, or the other person, notifies HMRC in writing requesting a review out of time,

(b) HMRC are satisfied that P, or the other person, had a reasonable excuse for not accepting the offer or requiring a review within the time allowed, and

(c) HMRC are satisfied that P, or the other person, made the request without unreasonable delay after the excuse had ceased to apply.

(3) But HMRC shall not review a decision if P, or another person, has appealed to the appeal tribunal under paragraph 1 in respect of the decision.

Nature of review etc

8

(1) This paragraph applies if HMRC are required to undertake a review under paragraph 5 or 7.

(2) The nature and extent of the review are to be such as appear appropriate to HMRC in the circumstances.

(3) For the purposes of sub-paragraph (2), HMRC must, in particular, have regard to steps taken before the beginning of the review—

(a) by HMRC in reaching the decision, and

(b) by any person in seeking to resolve disagreement about the decision.

Reading this document does not replace reading the official text published on legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. We assume no responsibility for any inaccuracies arising from the conversion of the original CLML XML to this format.

This text is published under legislation.gov.uk's own terms of reuse, not a Legalize or public-domain licence. legislation.gov.uk
Open Government Licence v3.0 (attribution required)
© Crown and database right. Derived from content available under the Open Government Licence v3.0 from legislation.gov.uk.