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

(4) The review must take account of any representations made by P, or the other person, at a stage which gives HMRC a reasonable opportunity to consider them.

(5) The review may conclude that the decision is to be—

(a) upheld,

(b) varied, or

(6) HMRC must give P, or the other person, notice of the conclusions of the review and their reasoning within—

(a) the period of 45 days beginning with the relevant date, or

(b) such other period as HMRC and P, or HMRC and the other person, may agree.

(7) In sub-paragraph (6), “the relevant date” means—

(a) in a case falling within paragraph 3, the date HMRC received P's notification accepting the offer of a review,

(b) in a case falling within paragraph 4, the date HMRC received notification from another person requiring a review, or

(8) Where HMRC are required to undertake a review but do not give notice of the conclusions within the period specified in sub-paragraph (6), the review is to be treated as having concluded that the decision is upheld.

(9) If sub-paragraph (8) applies, HMRC must notify P, or the other person, of the conclusion which the review is treated as having reached.

PART 3 — Appeals

“Appeal tribunal”

9

In this Schedule “appeal tribunal” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal.

Bringing of appeals

10

(1) An appeal under paragraph 1 is to be made to the appeal tribunal before—

(a) the end of the period of 30 days beginning with—

(i) in a case where P is the appellant, the date of the document notifying P of the decision to which the appeal relates, or

(ii) in a case where a person other than P is the appellant, the day on which that person becomes aware of the decision, or

(b) if later, the end of the period for requiring a review (within the meaning of paragraph 6).

(2) But that is subject to sub-paragraphs (3) to (5).

(3) In a case where HMRC are required to undertake a review under paragraph 5—

(a) an appeal may not be made until the conclusion date, and

(b) any appeal is to be made within the period of 30 days beginning with that date.

(4) In a case where HMRC are requested to undertake a review under paragraph 7—

(a) an appeal may not be made to the appeal tribunal—

(i) unless HMRC have notified P, or the other person, as to whether or not a review will be undertaken, and

(ii) if HMRC have notified P, or the other person, that a review will be undertaken, until the conclusion date;

(b) any appeal where paragraph (a)(ii) applies is to be made within the period of 30 days beginning with the conclusion date;

(c) if HMRC have notified P, or the other person, that a review will not be undertaken, an appeal may be made only if the appeal tribunal gives permission to do so.

(5) In a case where paragraph 8(8) applies, an appeal may be made at any time from the end of the period specified in paragraph 8(6) to the date 30 days after the conclusion date.

(6) An appeal may be made after the end of any period specified in this paragraph if the appeal tribunal gives permission to do so.

(7) In this paragraph, “conclusion date” means the date of the document notifying the conclusions of the review.

Further provision about appeals

11

(1) An appeal relating to a decision that an amount is due from a person may not be considered by the appeal tribunal unless the amount which HMRC have determined to be due has been paid or deposited with HMRC.

(2) But sub-paragraph (1) does not apply if—

(a) HMRC are satisfied or, if HMRC are not satisfied but the appeal tribunal have decided, on the application of the appellant, that the requirement to pay or deposit the amount would cause the appellant to suffer hardship, and

(b) the appellant has paid or deposited such other amount (if any) by way of security as HMRC or, as the case may be, the appeal tribunal consider appropriate.

(3) Notwithstanding the provisions of sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007, the decision of the appeal tribunal as to the issue of hardship is final.

Determinations on appeal

12

(1) Where, on an appeal under paragraph 1—

(a) it is found that an assessment of the appellant is an assessment for an amount that is less than it ought to have been, and

(b) the appeal tribunal give a direction specifying the correct amount,

the assessment has effect as an assessment of the amount specified in the direction and (without prejudice to any power under this Schedule to reduce the amount of interest payable on the amount of an assessment) as if it were an assessment notified to the appellant in that amount at the same time as the original assessment.

(2) On an appeal under paragraph 1, the powers of the appeal tribunal in relation to any decision of the Commissioners includes a power, where the tribunal allow an appeal on the ground that the Commissioners could not reasonably have arrived at the decision, either—

(a) to direct that the decision, so far as it remains in force, is to cease to have effect from such time as the tribunal may direct, or

(b) to require the Commissioners to conduct, in accordance with the directions of the tribunal, a review or a further review of the original decision as appropriate.

(3) Where, on an appeal under paragraph 1, the appeal tribunal find that a liability to a penalty or to an amount of interest arises, the tribunal must not give any direction for the modification of the amount payable in respect of that liability except—

(a) in exercise of a power conferred on the tribunal by section 80(6) (penalties), or

(b) for the purpose of making the amount payable conform to the amount due in accordance with this Part.

(4) Sections 85 and 85B of the Value Added Tax Act 1994 (settling of appeals by agreement and payment of tax where there is a further appeal) have effect as if—

(a) the references to section 83 of that Act included references to paragraph 1 of this Schedule, and

(b) the references to value added tax included references to plastic packaging tax.

SCHEDULE 12

PART 1 — Information

Power to take samples

1

(1) An authorised person may at any time take such samples from a product as the person requires for the purpose of determining how the product ought to be treated, or ought to have been treated, for the purposes of plastic packaging tax.

(2) A sample may only be taken under this paragraph if the authorised person—

(a) has reasonable cause to believe that the product is a chargeable plastic packaging component, and

(b) considers it necessary for the protection of the revenue against mistake or fraud.

(3) A sample taken under this paragraph must be disposed of in such manner as the Commissioners may direct.

(4) In this paragraph “authorised person” means a person acting under the authority of the Commissioners.

Disclosure of information

2

(1) The Commissioners may disclose information obtained or held by them in, or in connection with, their functions in relation to plastic packaging tax to—

(a) the Secretary of State;

(b) the Environment Agency;

(d) Natural Resources Wales;

(e) the Medicines and Healthcare Products Regulatory Agency;

(f) the Department of Agriculture, Environment and Rural Affairs in Northern Ireland or any agency thereof;

(g) an authorised officer of a person listed in paragraphs (a) to (f).

(2) Information may only be disclosed under sub-paragraph (1) for the purpose of assisting a person listed in paragraphs (a) to (g) of that sub-paragraph in the performance of their duties.

(3) A person listed in sub-paragraph (1)(a) to (g) may disclose information to the Commissioners, or to an authorised officer of the Commissioners, for the purposes of assisting the Commissioners in the performance of their duties relating to plastic packaging tax.

(4) No charge may be made for any disclosure made by virtue of this paragraph.

(5) Nothing in this paragraph permits the disclosure of information which, although disclosed in compliance with this paragraph, would contravene the data protection legislation.

(6) In this paragraph “data protection legislation” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act).

(7) References in this paragraph to an authorised officer of any person are to any person who has been designated by the principal as a person to and by whom information may be disclosed by virtue of this paragraph.

PART 2 — Evidence

Evidence by certificate

3

(1) A certificate of the Commissioners that—

(a) a person was or was not at any time registered, or

(b) that a return required by regulations under section 61 has not been made or had not been made at any time,

is, in any proceedings evidence, or in proceedings in Scotland sufficient evidence, of that fact.

(2) A copy of any document provided to the Commissioners for the purposes of this Part and certified by them to be such a copy shall be admissible in any proceedings, whether civil or criminal, to the same extent as the document itself.

(3) In any proceedings any document purporting to be a certificate under sub-paragraph (1) or (2) is to be taken to be such a certificate unless the contrary is shown.

Inducements to provide information

4

(1) This paragraph applies to—

(a) criminal proceedings against a person in respect of an offence in connection with or in relation to plastic packaging tax;

(b) proceedings against a person for the recovery of a sum due in connection with or in relation to plastic packaging tax.

(2) A statement made, or a document produced, by or on behalf of the person is not inadmissible in proceedings to which this paragraph applies only by reason that—

(a) a matter falling within sub-paragraph (3) or (4) was drawn to that person's attention, and

(b) the person was, or may have been, induced to make the statement or provide the document as a result.

(3) The matters falling within this sub-paragraph are—

(a) that, in relation to plastic packaging tax, the Commissioners may assess an amount due by way of a penalty instead of instituting criminal proceedings;

(b) that it is the practice of the Commissioners (without giving any undertaking as to whether they will make such an assessment in any case) to be influenced by whether a person—

(i) has made a full confession of any dishonest conduct to which the person has been, or is, a party;

(ii) has otherwise co-operated fully with any investigation.

(4) The matter falling within this sub-paragraph is the fact that the Commissioners or, on appeal, an appeal tribunal have power by or under this Part to reduce a penalty.

SCHEDULE 13

Bodies eligible for group treatment

1

(1) Two or more bodies are eligible to be treated as members of the same group for the purposes of this Part (“eligible bodies”) if—

(a) they are all bodies corporate,

(b) at least one of the bodies has an established place of business in the United Kingdom, and

(2) A body is eligible to be the representative member of a group if the body—

(a) is resident in the United Kingdom, or

(b) has a permanent establishment in the United Kingdom.

(3) A body is not an eligible body in relation to a group if it is a member of another group.

2

For the purposes of paragraph 1—

(a) two or more bodies are under the same control if—

(i) one of them controls each of the others,

(ii) one person (whether a body corporate or an individual) controls all of them, or

(iii) two or more individuals carrying on a business in partnership control all of them;

(b) a body corporate controls another body corporate only if—

(i) it is empowered by statute to control that body's activities, or

(ii) it is that body's holding company within the meaning of section 1159 of and Schedule 6 to the Companies Act 2006;

(c) an individual controls, or individuals control, a body corporate only if they would be that body's holding company within the meaning of those provisions, if they were a company.

Application for group treatment

3

(1) Two or more eligible bodies may apply to the Commissioners to be treated as members of the same group ....

(2) An application under this paragraph must specify which body is to be the representative member.

(3) Where the Commissioners receive an application under sub-paragraph (1), they must, by notice to the applicants or the body that is to be the representative member—

(a) confirm whether they accept or refuse the application, and

(b) if they accept the application, specify a date from which the applicants are to be treated as members of the same group.

(4) The Commissioners must give the notice within the period of 90 days beginning with the day on which the application is received.

(5) The date mentioned in sub-paragraph (3)(b) must be within that period.

4

(1) The Commissioners may only refuse an application under paragraph 3 if—

(a) it appears to them that the application—

(i) has been made in respect of a body that is not an eligible body, or

(ii) specifies as the representative body a body that is not eligible to be the representative body, or

(b) they consider it necessary to refuse the application for the protection of the revenue.

(2) But the Commissioners may not refuse an application on the basis of sub-paragraph (1)(b) after the end of the period of 90 days beginning with the day on which the application is received by them.

Applications to modify group treatment

5

(1) Where two or more bodies are treated as members of the same group, the representative member may apply to the Commissioners to—

(a) treat another eligible body as a member of the group,

(b) change which member of the group is the representative member,

(d) terminate the treatment of the members as members of a group,

...

(2) Where the Commissioners receive an application under sub-paragraph (1), they must, by notice to the applicant and, in a case within sub-paragraph (1)(b), the proposed new representative member—

(a) confirm whether they accept or refuse the application, and

(b) if they accept the application, specify a date from which the application is to be treated as having been accepted.

(3) The Commissioners must give the notice within the period of 90 days beginning with the day on which the application is received.

(4) The date mentioned in sub-paragraph (2)(b) must be within that period.

6

(1) The Commissioners may only refuse an application under paragraph 5(1)(a) or (1)(b) if they consider it necessary to refuse the application for the protection of the revenue.

(2) The Commissioners may only refuse an application under paragraph 5(1)(c) or (1)(d) if—

(a) the case does not fall within paragraph 8, and

(b) they consider it necessary to refuse the application for the protection of the revenue.

Applications relating to group treatment

7

Any application under this Schedule in respect of any bodies corporate must be made by—

(a) one of those bodies, or

(b) the person controlling those bodies.

Termination of group treatment by the Commissioners

8

The Commissioners may, by notice given to the members of the group concerned, terminate the treatment of any body corporate as a member of the group from the time specified in the notice where—

(a) it appears to the Commissioners that the body is not an eligible body in relation to the group, or

(b) the Commissioners consider it necessary to do so for the protection of the revenue.

9

Where—

(a) a body corporate ceases to be treated as a member of a group under paragraph 5(1)(c) or 8,

(b) immediately before that time the body was the representative member of the group,

(c) immediately after that time there are two or more bodies corporate who will continue to be treated as members of the group, and

(d) none of those bodies becomes the representative member under paragraph 5(1)(b),

the Commissioners must, by notice given to such one of the bodies mentioned in paragraph (c) as the Commissioners consider appropriate, substitute that body as the representative member from the time specified in the notice.

10

(1) The time specified in a notice under paragraph 8(a) may be a time before the giving of the notice but must not be before the time when the body ceased to be an eligible body.

(2) The time specified in a notice under paragraph 8(b) must not be a time before the day on which the notice is given to the members.

(3) The time specified in a notice under paragraph 9 may be a time before the giving of the notice.

Notifications relating to group treatment

11

(1) Where two or more bodies are treated as members of the same group and one of those bodies ceases to be an eligible body, that body must so notify the Commissioners.

(2) A body corporate designated as a representative member of a group must not cease to have an established place of business in the United Kingdom without first notifying the Commissioners.

Regulations about applications and notifications

12

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

(a) the timing of applications under this Schedule (including conferring power on the Commissioners to extend the time for making such applications);

(b) the form and manner of such applications;

(2) The Commissioners may also by regulations make provision requiring a person who has made an application under this Schedule to notify the Commissioners if any of the information contained in or provided in connection with the application is or becomes inaccurate.

(3) Sub-paragraph (1) applies in relation to notifications by the Commissioners under this Schedule as it applies in relation to applications under this Schedule.

SCHEDULE 14

Interpretation

1

In this Schedule “penalty” means a penalty under section 80 (penalty for contravening relevant requirements).

Assessment etc of penalty

2

Where a person is liable to a penalty, the Commissioners—

(a) may assess the amount of that penalty, and

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

3

(1) Sub-paragraph (2) applies where—

(a) the Commissioners have made an assessment of a penalty, and

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

(2) The Commissioners—

(a) may make a supplementary assessment of the amount of the penalty, and

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

Further provision about assessments under paragraphs 2 and 3

4

(1) An amount assessed and notified to a person under paragraph 2 or 3 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.

5

The fact that an act or omission giving rise to a penalty has ceased before an assessment is made under paragraph 2 or 3 does not affect the power of the Commissioners to make such an assessment.

6

(1) Sub-paragraph (2) applies where—

(a) the Commissioners assess a person to an amount due by way of a penalty under paragraph 2 or 3, and

(b) the person is also assessed under Schedule 10 for an accounting period to which the act or omission attracting the penalty is referable.

(2) The assessments under paragraph 2 or 3 and Schedule 10 may be combined and notified to the person as one assessment.

(3) A notice of a combined assessment under sub-paragraph (2) must separately identify the penalty being assessed.

Assessment etc of daily penalties

7

(1) Where an assessment is made under paragraph 2 or 3 to an amount of a penalty to which any person is liable, the notification of that amount must specify a time, not later than the end of the day of the giving of the notification, to which the amount of any daily penalty is calculated.

(2) For the purposes of sub-paragraph (1) “daily penalty” means a penalty imposed under section 80(1)(b).

(3) If further penalties accrue in respect of a continuing failure after that date, a further assessment or further assessments may be made under paragraph 2 or 3 in respect of the amounts so accruing.

8

(1) Sub-paragraph (2) applies where—

(a) an assessment to a penalty is made specifying a date for the purposes of paragraph 7(1) above, and

(b) the failure in question is remedied within such period as may for the purposes of this sub-paragraph have been notified by the Commissioners to the person liable for the penalty.

(2) The failure is to be deemed for the purposes of any further liability to a penalty to have been remedied on the specified date.

Time limits for assessments

9

(1) An assessment under paragraph 2 or 3 may not be made after the end of the relevant period.

(2) Except in a case within sub-paragraph (3) the relevant period is the period of 4 years from the act or omission to which the penalty relates.

(3) Where an assessment under paragraph 2 or 3 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 period is the period of 20 years from the act or omission to which the penalty 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.

SCHEDULE 15

PART 1 — Penalties

Failure to notify etc

1

(1) Schedule 41 to FA 2008 (penalties: failure to notify etc) is amended as follows.

(2) In the Table in paragraph 1, after the entries relating to insurance premium tax, insert—

Plastic packaging tax	Obligation under section 56 of FA 2021 (obligation to give notice of liability to be registered).

(3) In paragraph 7(9) (potential lost revenue), in the opening words, after “insurance premium tax,” insert “ plastic packaging tax , ”.

Failure to comply with requirements relating to returns

2

(1) Schedule 55 to FA 2009 (penalty for failure to make returns etc) is amended as follows.

(2) In paragraph 1(4), in the definition of “penalty date” for “13A” substitute “ 13B ”.

(3) In the table in paragraph 1, after item 13A insert—

13B	Plastic packaging tax	Return under regulations under section 61 of FA 2021

3

(1) In Schedule 10 to F(No.3)A 2010 (which prospectively amends Schedule 55 to FA 2009 (penalties for failure to make returns etc)) in paragraph 7, in the inserted paragraph 13A(1), after “13A” insert “ , 13B ”.

(2) The amendments to Schedule 55 to FA 2009 made by Schedule 10 to F(No.3)A 2010 (including the amendment made by sub-paragraph (1)) are taken to have come into force for the purposes of plastic packaging tax on the day on which this paragraph comes into force.

Failure to make payment on time

4

In Schedule 56 to FA 2009, in the Table in paragraph 1 (penalty for failure to make payments on time)—

(a) after item 11A insert—

11AA	Plastic packaging tax	Amount payable under regulations under section 61 of FA 2021	The date determined by or under regulations under section 61 of FA 2021 as the date by which the amount must be paid
11AB	Plastic packaging tax	Amount payable by virtue of secondary liability and assessment notice or joint and several liability notice under Schedule 9 to FA 2021	The date determined in accordance with Schedule 9 to FA 2021 as the date by which the amount must be paid

;

(b) after item 16A insert—

16AA	Plastic packaging tax	Amount assessed under Schedule 10 to FA 2021	The date by which the amount would have been required to be paid if it had been shown in the return

5

(1) In Schedule 11 to F(No.3)A 2010 (which prospectively amends Schedule 56 to FA 2009 (penalties for failure to make payments)), in paragraph 2—

(a) in sub-paragraph (13)(a), in the substituted text of item 23 in the Table in paragraph 1 of Schedule 56 to FA 2009, in columns 1 and 2, for “ or 11A ” substitute “, 11A or 11B”;

(b) in sub-paragraph (14)(a), in the substituted text of item 24 in the Table in paragraph 1 of Schedule 56 to FA 2009, for “ or 11A ” substitute “, 11A or 11B”.

(2) The amendments to Schedule 56 to FA 2009 made by Schedule 11 to F(No.3)A 2010 (including the amendments made by this paragraph) are taken to have come into force for the purposes of plastic packaging tax on the day on which paragraph 4 of this Schedule comes into force.

Errors in documents

6

In Schedule 24 to FA 2007 (penalties for errors), in the Table in paragraph 1, after the entry relating to the statement under section 1(1)(a) of the Petroleum Revenue Tax Act 1980, insert—

Plastic packaging tax	Return under regulations under section 61 of FA 2021.

Failure to disclose tax avoidance schemes

7

In Schedule 17 to F(No.2)A 2017 (disclosure of tax avoidance schemes: indirect taxes), in paragraph 2(1), after “landfill tax” insert— “ plastic packaging tax ”.

Modifications

8

(1) Paragraph 16(1) of Schedule 41 to FA 2008 (penalties: failure to notify etc) has effect in its application to plastic packaging tax as if for “shall” there were substituted “ may ”.

(2) The following provisions have effect in their application to plastic packaging tax as if in each case for “must” there were substituted “ may ”

(a) paragraph 18(1) of Schedule 55 to FA 2009 (penalty for failure to make returns etc);

(b) paragraph 11(1) of Schedule 56 to FA 2009 (penalty for failure to make payments on time).

PART 2 — Miscellaneous

Provisional collection of plastic packaging tax

9

In section 1(1) of the Provisional Collection of Taxes Act 1968 (temporary statutory effect of House of Commons resolutions affecting income tax etc) after “digital services tax,” insert “ plastic packaging tax, ”.

Isle of Man

10

In section 1(1) of the Isle of Man Act 1979 (common duties), at the end insert

; (g) plastic packaging tax chargeable under the law of the United Kingdom or the Isle of Man.

HMRC powers to obtain information etc

11

(1) Schedule 36 to FA 2008 (powers to obtain information etc) is amended as follows.

(2) In the Table in paragraph 61A (involved third parties), after item 12 insert—

13	A person involved (in any capacity) in the production, or importation to or exportation from the United Kingdom, of packaging components (within the meaning of section 48 of FA 2021) or in connected activities	Documents relating to matters in which the person is or has been involved	Plastic packaging tax
14	A person involved (in any capacity) in the purchase or sale of plastic packaging components (within the meaning of section 48 of FA 2021) or of goods packaged in such components	Documents relating to matters in which the person is or has been involved	Plastic packaging tax

(3) In paragraph 63(1) (meaning of “tax”), after paragraph (i) insert—

(iza) plastic packaging tax,

Interest

12

In Schedule 53 to FA 2009 (late payment interest) after paragraph 11C insert—

(11D) (1) This paragraph applies where an amount of plastic packaging tax is due from a person (P) in respect of a period during which P meets the liability condition but was not registered. (2) The late payment interest start date in respect of the amount is the date which would have been the late payment interest date in respect of that amount if P had been registered when P first became liable to be registered. (3) For the purposes of this paragraph P meets the “liability condition” at a particular time if— (a) at the end of the preceding month, the condition in section 55(2)(b) of FA 2021 (liability to register) is met in relation to P, or (b) at that time, the condition in section 55(2)(a) of that Act is met in relation to P.

Serial tax avoidance

13

In Schedule 18 to FA 2016 (serial tax avoidance), in paragraph 4(2), after “landfill tax” insert— “ plastic packaging tax ”.

SCHEDULE 16

Amendments of FA 2003

1

In FA 2003, Part 4 (stamp duty land tax) is amended as follows.

2

After section 75 insert—

(75ZA) (1) In its application for the purpose of determining the amount of tax chargeable in respect of a chargeable transaction that is a non-resident transaction, this Part has effect as if 2% were added to each rate specified in the rate-specifying provisions. (2) The “rate-specifying provisions” are— (a) in section 55(1B), Table A; (b) in Schedule 4ZA, in paragraph 1(2), Table A; (c) in Schedule 4A, paragraph 3(1)(a); (d) in Schedule 5, in paragraph 2(3), Table A; (e) in Schedule 6ZA, in paragraph 4, Table A; (f) in section 74(1A), Step 4. (3) Schedule 9A defines “non-resident transaction” and makes further provision in connection with this section. Anti-avoidance

3

In section 101 (unit trust schemes), in subsection (7), at the end insert

, or Schedule 9A (increased rates for non-resident transactions).

4

In section 122 (index of defined expressions), in the table, at the appropriate place insert—

non-resident transaction	Schedule 9A, paragraph 2

5

After Schedule 9 insert—

SCHEDULE 9A (1) This Schedule is arranged as follows— (a) Part 2 explains how to determine for the purposes of this Part of this Act whether a chargeable transaction is a “non-resident transaction”; (b) Part 3 explains how to determine for the purposes of this Schedule whether an individual is “non-resident” in relation to a chargeable transaction; (c) Part 4 explains how to determine for the purposes of this Schedule whether a company is “non-resident” in relation to a chargeable transaction; (d) Part 5 contains special rules applying in relation to particular purchasers and transactions; (e) Part 6 contains supplementary provision. (2) (1) A chargeable transaction is a “non-resident transaction” for the purposes of this Part of this Act if— (a) the purchaser is, or (if there is more than one) the purchasers include, a person who is non-resident in relation to the transaction, (b) the main subject-matter of the transaction consists of— (i) a major interest in one or more dwellings, or (ii) a major interest in one or more dwellings and other property, (c) that major interest, at the beginning of the effective date of the transaction, is not a term of years absolute or leasehold estate that has 7 years or less to run, and (d) the de minimis threshold is exceeded. (2) A reference in sub-paragraph (1)(b) or (c) to a major interest in a dwelling includes an undivided share in a major interest in a dwelling. (3) For the purposes of sub-paragraph (1)(d), the de minimis threshold is exceeded if— (a) in a case in which the chargeable consideration for the transaction does not consist of or include rent, the chargeable consideration for the transaction is £40,000 or more; (b) in a case in which the chargeable consideration for the transaction consists of or includes rent— (i) the chargeable consideration other than rent is £40,000 or more, or (ii) the annual rent is £1,000 or more. (4) In sub-paragraph (3) “annual rent” in relation to a transaction, means the average annual rent over the term of the lease to which the transaction relates or, if— (a) different amounts of rents are payable for different parts of the term, and (b) those amounts (or any of them) are ascertainable at the effective date of the transaction, the average annual rent over the period for which the highest ascertainable rent is payable. (5) For provision modifying sub-paragraph (1)(a) in its application to chargeable transactions of particular descriptions, see— - paragraph 13 (bare trust acquiring new lease); - paragraph 14 (purchases by certain settlements). (6) Sub-paragraph (1) is subject to paragraph 17 (completion of contract previously substantially performed). (3) For the purposes of this Schedule, an individual is “non-resident” in relation to a chargeable transaction if the individual is not UK resident in relation to the transaction (see paragraphs 4 and 5). (4) (1) For the purposes of this Schedule, an individual is “UK resident” in relation to a chargeable transaction if the individual is present in the United Kingdom on at least 183 days during any continuous period of 365 days that falls within the relevant period. (2) “The relevant period” means the period that— (a) begins with the day 364 days before the effective date of the chargeable transaction, and (b) ends with the day 365 days after the effective date of the chargeable transaction. (3) This paragraph does not apply in relation to a chargeable transaction to which paragraph 5 applies. (4) References in this paragraph to an individual being present in the United Kingdom on a day are to the individual being present in the United Kingdom at the end of that day. (5) This paragraph is subject to paragraph 12 (spouses and civil partners of UK residents). (5) (1) For the purposes of this Schedule, an individual is “UK resident” in relation to a chargeable transaction to which this paragraph applies if the individual is present in the United Kingdom on at least 183 days during the period that— (a) begins with the day 364 days before the effective date of the chargeable transaction, and (b) ends with the effective date of the chargeable transaction. (2) This paragraph applies to a chargeable transaction if any of conditions A to C is met in relation to the transaction. (3) Condition A is that the purchaser is, or (if there is more than one) the purchasers include— (a) a company, or (b) a person acting as a trustee of a unit trust scheme. (4) Condition B is that the purchaser is, or (if there is more than one) the purchasers include, an individual who is treated as entering into the transaction by virtue of paragraph 2 of Schedule 15 (transaction entered into for the purposes of a partnership treated as entered into by partners). (5) Condition C is that— (a) the purchaser is, or (if there is more than one) the purchasers include, an individual who is acting as a trustee of a settlement, and (b) under the terms of the settlement no beneficiary is entitled— (i) to occupy the dwelling or dwellings for life, or (ii) to income earned in respect of the dwelling or dwellings. (6) References in this paragraph to an individual being present in the United Kingdom on a day are to the individual being present in the United Kingdom at the end of that day. (7) This paragraph is subject to paragraph 12 (spouses and civil partners of UK residents). (6) (1) For the purposes of paragraphs 4 and 5, an individual is (subject to sub-paragraph (3)) treated as present in the United Kingdom at the end of a day if at that time the individual— (a) is in Crown employment, and (b) is present in a country or territory outside the United Kingdom for the purpose of performing activities in the course of that employment. (2) For the purposes of paragraphs 4 and 5, an individual is (subject to sub-paragraph (3)) treated as present in the United Kingdom at the end of a day if at that time the individual— (a) is the spouse or civil partner of an individual who is treated as present in the United Kingdom at the end of that day under sub-paragraph (1), and (b) is living with that spouse or civil partner. (3) Sub-paragraph (1) or (2) applies in relation to an individual only if a claim that it should so apply is included in a land transaction return or an amendment of such a return. (4) “Crown employment” means employment under the Crown— (a) which is of a public nature, and (b) the earnings from which are payable out of the public revenue of the United Kingdom or of Northern Ireland. (5) Section 1011 of the Income Tax Act 2007 (references to married persons, or civil partners, living together) applies for the purposes of this paragraph. (7) (1) For the purposes of this Schedule a company is “non-resident” in relation to a chargeable transaction if either of the following conditions is met. (2) The first condition is that, on the effective date of the chargeable transaction, the company is not UK resident for the purposes of the Corporation Tax Acts (see Chapter 3 of Part 2 of CTA 2009). (3) The second condition is that, on the effective date of the chargeable transaction, the company (though UK resident for the purposes of the Corporation Tax Acts)— (a) is a close company (see paragraph 8), (b) meets the non-UK control test in relation to the transaction (see paragraphs 9 and 10), and (c) is not an excluded company (see paragraph 11). (4) This paragraph is subject to— (a) paragraph 15 (co-ownership authorised contractual schemes); (b) paragraph 16 (alternative property finance). (8) (1) For the purposes of this Schedule, a company is a “close company” if it is a close company within the meaning given by Chapter 2 of Part 10 of CTA 2010 (basic definitions), applying that Chapter subject to the following modifications. (2) Section 444 (companies involved with close companies) applies as if condition A in that section were omitted. (3) Section 446 (particular types of quoted company not treated as close) is treated as omitted. (9) (1) For the purposes of this Schedule, a company meets the “non-UK control test” in relation to a chargeable transaction if it is a close company within the meaning given by Chapter 2 of Part 10 of CTA 2010 (basic definitions), applying that Chapter subject to the following modifications. (2) Section 439 (“close company”) applies as if— (a) references to a participator were to a relevant participator, and (b) references to five or fewer participators were to any number of relevant participators. (3) In sub-paragraph (2), “relevant participator” means a participator (within the meaning given by Chapter 2 of Part 10 of CTA 2010) who— (a) is non-resident in relation to the chargeable transaction (within the meaning of this Schedule), and (b) is not a general partner in a limited partnership. (4) Section 444 (companies involved with close companies) applies as if condition A in that section were omitted. (5) Section 446 (particular types of quoted company not treated as close) is treated as omitted. (6) Section 451 (attribution of rights and powers) has effect subject to the limitations set out in paragraph 10. (7) The reference in sub-paragraph (3)(b) to a general partner does not include a general partner who possesses, or is entitled to acquire, rights that entitle the general partner, in the event of the winding up of the company or in any other circumstances, to receive more than 1% of the assets of the company which would then be available for distribution among its members. (10) (1) This paragraph sets out limitations on the rights and powers of a person (A) that, apart from this paragraph, would be capable of being attributed to another person (B) under section 451(4) of CTA 2010, as that provision applies for the purposes of paragraph 9(1). (2) Where A and B are partners in a partnership, no rights and powers of A may be attributed to B under paragraph (c) or (d) of section 451(4) of CTA 2010 by virtue of that fact. (3) Where— (a) A and B are spouses or civil partners of each other, (b) A and B are living together, and (c) A is UK resident in relation to the chargeable transaction, no rights and powers of A may be attributed to B under paragraph (c) or (d) of section 451(4) of CTA 2010 by virtue of the fact mentioned in paragraph (a). (4) Where A's or B's interest in a company is de minimis, no rights and powers of A in relation to the company may be attributed to B under any of paragraphs (a) to (d) of section 451(4) of CTA 2010. (5) For this purpose, a person's interest in a company is “de minimis” if— (a) the proportion of the share capital or issued share capital in the company that the person possesses or is entitled to acquire is less than 5%, (b) the proportion of the voting rights in the company that the person possesses or is entitled to acquire is less than 5%, (c) the issued share capital in the company that the person possesses or is entitled to acquire would, on the assumption that the whole of the income of the company were distributed among the participators, entitle the person to receive less than 5% of the income so distributed, and (d) the person's rights in the company entitle the person, in the event of the winding up of the company or in any other circumstances, to less than 5% of the assets of the company which would then be available for distribution among the participators. (6) Any rights A has as a loan creditor are to be disregarded for the purposes of the assumption in sub-paragraph (5)(c). (7) Section 1011 of the Income Tax Act 2007 (references to married persons, or civil partners, living together) applies for the purposes of this paragraph. (11) (1) A company is an “excluded company” for the purposes of paragraph 7(3)(c) if it is any of the following— (a) a PAIF; (b) a body corporate that is a 51% subsidiary of PAIF; (c) a company UK REIT; (d) a company that is a member of a group UK REIT; (e) a company acting as a trustee of a settlement. (2) In this paragraph— (a) “PAIF” means a body corporate that is a property AIF for the purposes of Schedule 7A to this Act by virtue of paragraph 2(2) of that Schedule; (b) “51% subsidiary” has the same meaning as in the Corporation Tax Acts (see Chapter 3 of Part 24 of CTA 2010); (c) “company UK REIT” has the same meaning as in Part 12 of CTA 2010 (see section 524(5) of that Act); (d) “group UK REIT” has the same meaning as in Part 12 of CTA 2010 (see section 523(5) of that Act). (12) (1) This paragraph applies where— (a) there are two or more purchasers in relation to a chargeable transaction who are or will be jointly entitled to the interest acquired, and (b) the following conditions are met in relation to those purchasers. (2) The conditions are— (a) that, on the effective date of the transaction, the purchasers, or (if there are more than two) two of them, are spouses or civil partners of each other; (b) that, on the effective date of the transaction, those spouses or civil partners are living together; (c) that one of those spouses or civil partners is UK resident in relation to the chargeable transaction; (d) that (apart from this paragraph) one of those spouses or civil partners is non-resident in relation to the chargeable transaction; (e) that neither of the spouses or civil partners is acting as a trustee of a settlement. (3) For the purposes of this Schedule, the spouse or civil partner mentioned in sub-paragraph (2)(d) is UK resident in relation to the chargeable transaction. (4) Section 1011 of the Income Tax Act 2007 (references to married persons, or civil partners, living together) applies for the purposes of this paragraph. (13) (1) Sub-paragraph (2) applies to a chargeable transaction if— (a) the purchaser is, or (if there is more than one) the purchasers include, a person (P) who is acting as a trustee of a bare trust, and (b) paragraph 3(3) of Schedule 16 (trustee of bare trust granted a lease treated as purchaser of the whole of the interest acquired) applies in relation to P. (2) In determining for the purposes of this Part of this Act whether the chargeable transaction is a “non-resident transaction”, paragraph 2(1)(a) (condition that purchaser be non-resident) has effect as if a reference to the purchaser or purchasers— (a) included the beneficiary or beneficiaries of the bare trust, and (b) did not include P. (14) (1) Sub-paragraph (2) applies to a chargeable transaction if— (a) the purchaser is, or (if there is more than one) the purchasers include, a person (P) who is acting as a trustee of a settlement, and (b) under the terms of the settlement a beneficiary is entitled— (i) to occupy the dwelling or dwellings for life, or (ii) to income earned in respect of the dwelling or dwellings. (2) In determining for the purposes of this Part of this Act whether the chargeable transaction is a “non-resident transaction”, paragraph 2(1)(a) (condition that purchaser be non-resident) has effect as if a reference to the purchaser or purchasers— (a) included the beneficiary or beneficiaries of the settlement, and (b) did not include P. (3) In this paragraph “settlement” does not include a settlement under a unit trust scheme. (15) (1) Subject to sub-paragraph (2), a co-ownership authorised contractual scheme is not “non-resident” in relation to any chargeable transaction. (2) A collective investment scheme that is a co-ownership authorised contractual scheme by virtue of section 102A(7) (EEA schemes) is “non-resident” in relation to all chargeable transactions. (16) (1) Sub-paragraph (2) applies in relation to a chargeable transaction within section 71A(1)(a) (purchase of land by financial institution as part of alternative property finance arrangements). (2) The financial institution that enters into the transaction is “non-resident” in relation to the transaction if and only if the person with whom it enters into the arrangements mentioned in section 71A(1) is non-resident in relation to the transaction. (3) Sub-paragraph (4) applies in relation to a chargeable transaction within section 73(1)(a)(i) (purchase of land by financial institution as part of alternative property finance arrangements). (4) The financial institution that enters into the transaction is “non-resident” in relation to the transaction if and only if the person with whom it enters into the arrangements mentioned in section 73(1) is non-resident in relation to the transaction. (17) In a case within section 44(8) (contract substantially performed and subsequently completed by a conveyance) the later of the notifiable transactions mentioned in that provision is a “non-resident transaction” for the purposes of this Part if and only if the earlier of those notifiable transactions is a non-resident transaction for the purposes of this Part. (18) (1) Sub-paragraph (2) applies in relation to a land transaction return in respect of a chargeable transaction if— (a) in order to determine whether the chargeable transaction is a non-resident transaction, it is necessary to determine whether one or more individuals are UK resident in relation to the transaction under paragraph 4(1), and (b) that individual or any of those individuals, at the beginning of the day on which the land transaction return is delivered, has not yet met the condition in that provision (but might turn out to do so depending on their residence during the remainder of the relevant period). (2) The land transaction return must be prepared on the assumption that the individual or (as the case may be) each of the individuals is resident outside the United Kingdom throughout the period— (a) beginning with the day on which the land transaction return is delivered, and (b) ending at the end of the relevant period. (3) In this paragraph “the relevant period” has the same meaning as in paragraph 4(1). (19) (1) Sub-paragraph (2) applies where— (a) a land transaction return in respect of a chargeable transaction is prepared on the assumption mentioned in paragraph 18(2), and (b) the individual or (as the case may be) each of the individuals in respect of whom the assumption was made subsequently meets the condition in paragraph 4(1) (with the result that the transaction is not a non-resident transaction). (2) The land transaction return may be amended, at any time before the end of the period of 2 years beginning with the day after the effective date of the transaction, to take account of the fact that the transaction is not a non-resident transaction. (3) Where a land transaction return is amended under sub-paragraph (2), paragraph 6(2A) of Schedule 10 (notice of amendment of return to be accompanied by the contract for the transaction etc) does not apply in relation to the amendment. (20) (1) This paragraph sets out rules for determining what counts as a dwelling for the purposes of this Schedule. (2) A building or part of a building counts as a dwelling if— (a) it is used or suitable for use as a single dwelling, or (b) it is in the process of being constructed or adapted for such use. (3) Land that is, or is to be, occupied or enjoyed with a dwelling as a garden or grounds (including any building or structure on that land) is taken to be part of that dwelling. (4) Land that subsists, or is to subsist, for the benefit of a dwelling is taken to be part of that dwelling. (5) The main subject-matter of a transaction is also taken to consist of or include an interest in a dwelling if— (a) substantial performance of a contract constitutes the effective date of that transaction by virtue of a relevant deeming provision, (b) the main subject-matter of the transaction consists of or includes an interest in a building, or a part of a building, that is to be constructed or adapted under the contract for use as a single dwelling, and (c) construction or adaptation of the building, or part of a building, has not begun by the time the contract is substantially performed. (6) In sub-paragraph (5)— - “contract” includes any agreement; - “relevant deeming provision” means any of sections 44 to 45A or paragraph 5(1) or (2) of Schedule 2A or paragraph 12A of Schedule 17A; - “substantially performed” has the same meaning as in section 44. (7) A building or part of a building used for a purpose specified in section 116(2) or (3) is not used as a dwelling for the purposes of sub-paragraph (2) or (5). (8) Where a building or part of a building is used for a purpose mentioned in sub-paragraph (7), no account is to be taken for the purposes of sub-paragraph (2) of its suitability for any other use. (21) In this Schedule— - “CTA 2009” means the Corporation Tax Act 2009; - “CTA 2010” means the Corporation Tax Act 2010. (22) (1) The Treasury may by regulations amend or otherwise modify this Schedule for the purpose of preventing certain chargeable transactions from being non-resident transactions for the purposes of this Schedule. (2) The provision which may be included in regulations under this paragraph by reason of section 114(6)(c) includes incidental or consequential provision which may cause a chargeable transaction to be a non-resident transaction for the purposes of this Schedule.

Commencement

6

(1) The amendments made by this Schedule have effect in relation to any land transaction of which the effective date is, or is after, the commencement date.

(2) But those amendments do not have effect in relation to—

(a) a transaction effected in pursuance of a contract entered into and substantially performed before the commencement date, or

(b) a transaction that—

(i) is entered into pursuant to a contract entered into before 11 March 2020, and

(ii) is not excluded for the purposes of this paragraph.

(3) A transaction is excluded for the purposes of paragraph (b) of sub-paragraph (2) if—

(a) there is any variation of the contract, or assignment of rights under the contract, on or after 11 March 2020,

(b) the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or

(c) on or after that date there is an assignment, subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.

(4) In this paragraph “the commencement date” means 1 April 2021.

SCHEDULE 17

1

Part 4 of FA 2003 (stamp duty land tax) is amended in accordance with this Schedule.

2

(1) Section 81 (further return where relief withdrawn) is amended as follows.

(2) For subsection (1A) substitute—

(1A) Where relief is withdrawn to any extent under— (a) any of paragraphs 5G to 5L of Schedule 4A (relief from higher rate under Schedule 4A (higher rate for certain transactions)), (b) paragraph 6 of Schedule 7A (PAIF seeding relief), or (c) paragraph 14 or 16 of Schedule 7A (COACS seeding relief), the purchaser must deliver a further return before the end of the period of 30 days after the relevant date.

(3) In subsection (1B), after paragraph (e) insert—

(ea) in the case of relief under paragraph 5FA of that Schedule (qualifying housing co-operatives), the date determined in accordance with subsection (1C);

(4) After subsection (1B) insert—

(1C) For the purposes of subsection (1B)(ea) (relief under paragraph 5FA of Schedule 4A withdrawn because the conditions in paragraph 5L(3) of that Schedule are met), the date is— (a) where paragraph 5L(4) of Schedule 4A does not apply, the first day in the period mentioned in paragraph 5L(3)(a) of that Schedule on which the purchaser is not a qualifying housing body; (b) where paragraph 5L(4) or (7) of that Schedule applies and relief is withdrawn because condition A in paragraph 5L(5) of that Schedule is met, the day of succession of the relevant successor; (c) where paragraph 5L(4) or (7) of that Schedule applies and relief is withdrawn because condition B in paragraph 5L(6) of that Schedule is met, the first day in the part of the control period that falls after the day of succession of the relevant successor on which the relevant successor is not a qualifying housing body. (1D) Where relief is withdrawn to any extent under paragraph 5L of Schedule 4A in a case to which paragraph 5L(4) or (7) applies, the reference in subsection (1A) to the purchaser is to be read as a reference to the relevant successor.

(5) For subsection (3) substitute—

(3) The provisions of Schedule 10 (returns, assessments and other matters) apply for the purposes of this section with the following modifications— (a) references to a return under section 76 (general requirement to deliver land transaction return) are to be read as references to a return under subsection (1) or (1A); (b) references to the transaction to which a return relates are to be read as references to the withdrawal of relief in respect of which the return is required under subsection (1) or (1A); (c) references to a chargeable transaction to which (as yet) no return relates are to be read as references to the withdrawal of relief under any of the provisions mentioned in subsection (1) or (1A); (d) references to the effective date of a transaction— (i) in relation to the withdrawal of relief under any of the provisions mentioned in subsection (1), are to be read as references to the date on which the disqualifying event occurs, and (ii) in relation to the withdrawal of relief under any of the provisions mentioned in subsection (1A), are to be read as references to the relevant date (see subsections (1B) and (1C)); (e) where, by virtue of subsection (1D), a return is to be made by the relevant successor, references to the purchaser are to be read as references to the relevant successor; (f) paragraph 36(5A) is to be read as if it also permitted an appeal under paragraph 35(1)(e) on the ground that no further return is required.

(6) Omit subsection (5).

(7) At the end insert—

(6) In subsections (1C), (1D) and (3)(e) (which relate to the withdrawal of relief under paragraph 5L of Schedule 4A) “the relevant successor” means the person who is the most recent successor in the chain of succession at the time relief is withdrawn (and that person could be the first successor, the second successor or a subsequent successor). (7) Terms used in subsections (1C) and (6) which are defined for the purposes of paragraph 5L of Schedule 4A have the same meaning in those subsections as they have in that paragraph.

3

(1) Section 81ZA (alternative finance arrangements: return where relief withdrawn) is amended as follows.

(2) In subsection (1), for “or 6H” substitute “ , 6H or 6I ”.

(3) For subsection (2) substitute—

(2) The provisions of Schedule 10 (returns, assessments and other matters) apply for the purposes of this section with the following modifications— (a) references to a return under section 76 (general requirement to deliver land transaction return) are to be read as references to a return under subsection (1); (b) references to the transaction to which a return relates are to be read as references to the withdrawal of relief in respect of which the return is required under subsection (1); (c) references to a chargeable transaction to which (as yet) no return relates are to be read as references to the withdrawal of relief under any of the provisions mentioned in subsection (1); (d) references to the effective date of a transaction are to be read as references to the date of the disqualifying event; (e) references to the purchaser are to be read as references to the relevant person so far as that is necessary as a result of subsection (1) of this section or section 85(3) (payment of additional tax by relevant person where relief withdrawn); (f) paragraph 36(5A) is to be read as if it also permitted an appeal under paragraph 35(1)(e) on the ground that no further return is required.

(4) In subsection (3), for the words from “the first day” to the end substitute

— (a) where the relief was given under paragraph 5, 5B, 5C, 5D or 5F of Schedule 4A, the first day in the control period on which a relevant requirement was not met; (b) where the relief was given under paragraph 5FA of Schedule 4A, the date determined in accordance with subsection (5A).

(5) In subsections (4) and (5), for “subsection (3)” substitute “ subsection (3)(a) ”.

(6) After subsection (5) insert—

(5A) For the purposes of subsection (3)(b) (relief withdrawn because the conditions in paragraph 6I(2) of Schedule 4A are met), the date is— (a) where paragraph 6I(3) of Schedule 4A does not apply, the first day in the period mentioned in paragraph 6I(2)(a) of that Schedule on which the relevant person is not a qualifying housing body; (b) where paragraph 6I(3) or (6) of that Schedule applies and relief is withdrawn because condition A in paragraph 6I(4) of that Schedule is met, the day of succession of the relevant successor; (c) where paragraph 6I(3) or (6) of that Schedule applies and relief is withdrawn because condition B in paragraph 6I(5) of that Schedule is met, the first day in the part of the control period that falls after the day of succession of the relevant successor on which the relevant successor is not a qualifying housing body.

(7) In subsection (6), for the definition of “the relevant person” substitute—

“the relevant person” means— (a) the person (other than the financial institution) who entered into the arrangements in question, or (b) where relief is withdrawn to any extent under paragraph 6I of Schedule 4A in a case to which paragraph 6I(3) or (6) applies, the relevant successor; “the relevant successor” means the person who is the most recent successor in the chain of succession at the time relief is withdrawn (and that person could be the first successor, the second successor or a subsequent successor).

(8) After subsection (6) insert—

(7) Terms used in subsection (5A), and in the definition of “the relevant successor” in subsection (6), which are defined for the purposes of paragraph 6I of Schedule 4A have the same meaning in those provisions as they have in that paragraph.

4

(1) Section 85 (liability for tax) is amended as follows.

(2) After subsection (2) insert—

(2A) Where relief is withdrawn to any extent under paragraph 5L of Schedule 4A (qualifying housing co-operatives) in a case to which paragraph 5L(4) or (7) applies— (a) subsection (1) does not apply in relation to the additional tax payable as a result of the withdrawal of the relief, and (b) the relevant successor is liable to pay that additional tax. (2B) In subsection (2A) “the relevant successor” has the same meaning as it has in subsections (1C), (1D) and (3)(e) of section 81 (see subsections (6) and (7) of that section).

(3) In subsection (3), for “and 6H” substitute “ , 6H and 6I ”.

(4) In subsection (4), for the words from “means” to the end substitute “ has the same meaning as in section 81ZA (see subsections (6) and (7) of that section) ”.

5

(1) Section 86 (payment of tax) is amended as follows.

(2) In subsection (2)(za), for “5K” substitute “ 5L ”.

(3) In subsection (2A), for “and 6H” substitute “ , 6H and 6I ”.

6

In section 87(3) (interest on unpaid tax)—

(a) in paragraph (za), for “5K” substitute “ 5L ”;

(b) after paragraph (za) insert—

(zb) in the case of an amount payable because relief is withdrawn under any of paragraphs 6D, 6F, 6G, 6H and 6I of Schedule 4A, the date which is the date of the disqualifying event for the purposes of section 81ZA (see subsection (3) of that section);

7

(1) Schedule 4A (stamp duty land tax: higher rate for certain transactions) is amended as follows.

(2) In paragraph 2(6)(a)—

(a) for “5K” substitute “ 5L ”;

(b) for “6H” substitute “ 6I ”.

(3) In paragraph 6A—

(a) in sub-paragraph (4), for “and 5F(1)” substitute “ , 5F(1) and 5FA ”;

(b) in sub-paragraph (5), for “or 5F(1)” substitute “ , 5F(1) or 5FA ”.

(4) In paragraph 6C(2)(b), for “and 5F(1)” substitute “ , 5F(1) and 5FA ”.

(5) After paragraph 6H insert—

(6I) (1) This paragraph applies where relief under paragraph 5FA (qualifying housing co-operatives) has been allowed, in accordance with paragraph 6A(4), in relation to the purchase of a major interest in land. (2) The relief is withdrawn (subject to sub-paragraph (3)) if— (a) on any day in the period of three years beginning with the effective date of the first transaction (“the control period”), the relevant person is not a qualifying housing body, and (b) immediately before the first day on which that is the case the relevant person holds a relevant interest (whether jointly, or in common, or otherwise). (3) If, on any day in the control period, the relevant person 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 relevant person, and (b) condition A or condition B is met (and if condition B is met, subject to sub-paragraph (6)). (4) Condition A is that, on the day the first successor succeeds to the engagements of the relevant person (“the day of succession”), the first successor is not a qualifying housing body. (5) 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 a relevant interest (whether jointly, or in common, or otherwise). (6) 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 (3) if references in sub-paragraphs (3) to (5)— (a) to the relevant person 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”). (7) Sub-paragraph (6) is to apply to the second successor as it applies to the first successor, and so on, subject to the necessary modifications. (8) In this paragraph— (a) “qualifying housing body” means— (i) a company that is a qualifying housing co-operative for the purposes of section 150(3A) of the Finance Act 2013 (relief from ATED), (ii) a registered provider of social housing, or (iii) a registered social landlord; (b) “relevant interest” has the same meaning as in paragraph 6D; (c) “the relevant person” means the person (other than the financial institution) who enters into the arrangements mentioned in section 71A(1) or 73(1); (d) references to a major interest include an undivided share in a major interest in land.

(6) In paragraph 9, in the definition of “financial institution”, for “6H” substitute “ 6I ”.

8

In Schedule 10 (returns, assessments and other matters), in paragraph 12(2A) (notice of enquiry)—

(a) in paragraph (b), omit “in respect of the same land transaction”;

(b) in the words after paragraph (b), for “land transaction” substitute “ return ”.

SCHEDULE 18

PART 1 — Amendments to Schedules 9ZA and 9ZB to VATA 1994

Amendments to Part 9 of Schedule 9ZA to VATA 1994

1

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) is amended as follows.

2

(1) Paragraph 48 (liability to be registered) is amended as follows.

(2) In sub-paragraph (1), in the words after paragraph (b), for “on any day” to the end substitute

— (i) in a case where sub-paragraph (1A) applies, on a day determined in accordance with sub-paragraph (1B), or (ii) in a case where sub-paragraph (1A) does not apply, on any day when the person makes a relevant supply.

(3) After that sub-paragraph insert—

(1A) This sub-paragraph applies where — (a) the person has a single place of establishment, or (where the person does not have a place of establishment) a single place where the person has a permanent address or where the person usually resides, and (b) that place is in a member State or Northern Ireland. (1B) The person becomes liable to be registered on any day in a given year if— (a) in the period beginning with 1 January of that year and ending with that day, the person makes a relevant supply, and (b) in that period, or in the period beginning with 1 January and ending with 31 December of the year before the year in which that day falls, the person makes European supplies whose value exceeds £8,818.

(4) Omit sub-paragraphs (6) and (7).

(5) At the end insert—

(8) For the purposes of this paragraph, a supply of goods or services is a “European supply” if it is— (a) a supply of services listed in Article 58(1) of the VAT Directive to a person who is not a taxable person and who is established, or (where the person does not have a place of establishment) who has a permanent address or who usually resides, in a member State or Northern Ireland and that is not the place mentioned in sub-paragraph (1A)(a) (that is, the place in which the person supplying the services is established etc), or (b) a supply of goods that would be an “intra-Community distance sale of goods” within the meaning given by Article 14(4) of the VAT Directive if references in that Article to a “Member State” were read as if they included a reference to Northern Ireland (and references to a “third country” and “third territory” were read accordingly as including Great Britain) involving the removal of goods to a member State or Northern Ireland and that is not the place mentioned in sub-paragraph (1A)(a) (that is, the place in which the person supplying the goods is established etc). (9) For the purposes of sub-paragraph (8)(a), a person is not a taxable person if they are not liable or entitled to register for VAT in accordance with the law of the place where the person to whom the services are supplied is established, has their permanent address or usually resides. (10) In sub-paragraph (8), “the VAT Directive” means Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax.

3

(1) Paragraph 49 (ceasing to be liable to be registered) is amended as follows.

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