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Finance Act 2021

Current text a fecha 2023-02-07

PART 1 — Income tax, corporation tax and capital gains tax

Income tax charge, rates etc

Income tax charge for tax year 2021-22

1

Income tax is charged for the tax year 2021-22.

Main rates of income tax for tax year 2021-22

2

For the tax year 2021-22 the main rates of income tax are as follows—

Default and savings rates of income tax for tax year 2021-22

3

Starting rate limit for savings for tax year 2021-22

4

Basic rate limit and personal allowance for future tax years

5

for the tax years 2022-23, 2023-24, 2024-25 , 2025-26, 2026-27 and 2027-28.

Corporation tax charge and rates

Repeal of carbon emissions tax

6

Small profits rate chargeable on companies from 1 April 2023

7

Rate of diverted profits tax

Increase in the rate of diverted profits tax

8

for “25%” substitute “ 31% ”.

are to be treated as separate accounting periods.

Capital allowances: super-deductions etc

Super-deductions and other temporary first-year allowances

9
Expenditure qualifying under section 9(2) of FA 2021 130%
Expenditure qualifying under section 9(3) of that Act 50%
Expenditure qualifying under section 9(4) of that Act 100%

.

Expenditure qualifying under this subsection is referred to as “super-deduction expenditure” and a first-year allowance made as a result of expenditure qualifying under this subsection is referred to as a “super-deduction”.

Expenditure qualifying under this subsection is referred to as “SR allowance expenditure” and a first-year allowance made as a result of expenditure qualifying under this subsection is referred to as an “SR allowance”.

(b) the expenditure is incurred under a contract in respect of which Conditions A and B in section 1129 of CTA 2010 (definition of hire-purchase agreement) are met on the basis that— (i) the “goods” referred to in those conditions are the plant or machinery, and (ii) the person to whom they are bailed or hired is the person who incurs the expenditure.

Further provision about super-deductions etc

10

Reduced super-deduction

11

Disposal of assets where super-deduction made

12

Disposal of assets where SR allowance made

13

Counteraction where arrangements are contrived etc

14

or otherwise.

Capital allowances: other measures

Extension of temporary increase in annual investment allowance

15

Meaning of “general decommissioning expenditure”

16

(aa) the condition in subsection (3AB) is met, or

.

, or (d) otherwise in anticipation of a decommissioning measure.

(3AA) For the purposes of subsection (3A)(d), expenditure is incurred otherwise in anticipation of a decommissioning measure if it is incurred— (a) in preserving plant or machinery, the reuse or demolition of which it is reasonable to anticipate will be authorised or required by an approved abandonment programme, a condition to which the approval of such a programme will be subject or a condition or agreement described in subsection (3A)(c), or (b) in doing something else which it is reasonable to anticipate will be authorised or required by an approved abandonment programme, a condition to which the approval of such a programme will be subject or a condition or agreement described in subsection (3A)(c).

(3AB) The condition in this subsection is met if— (a) the expenditure was incurred— (i) in preparing an abandonment programme for approval, or (ii) in preparing for the imposition of a condition by, or the making of an agreement with, the Secretary of State before the approval of an abandonment programme, and (b) it is reasonable to anticipate that the approved abandonment programme, the condition imposed or the agreement made, as the case may be, will wholly or mainly relate to the decommissioning of plant or machinery to which subsection (3) applies.

(163A) (1) Expenditure to which section 163(3A)(d) applies by virtue of section 163(3AA)(b) is to be treated as never having been general decommissioning expenditure for the purposes of sections 164 and 165 unless, before the end of the relevant period, condition A or condition B is met in relation to the expenditure. (2) Condition A is that— (a) an abandonment programme is approved, and (b) the programme, or a condition to which the approval of the programme was subject, authorises or requires the decommissioning of the plant or machinery to which the expenditure relates. (3) Condition B is that— (a) a condition is imposed by the Secretary of State, or an agreement is made with the Secretary of State, before the approval of an abandonment programme, and (b) the condition or, as the case may be, the agreement authorises or requires the decommissioning of the plant or machinery to which the expenditure relates. (4) For the purposes of this section “the relevant period” means the period— (a) beginning with the day on which the expenditure was incurred, and (b) ending with the fifth anniversary of the last day of the accounting period in which the expenditure was incurred. (5) All such assessments and adjustments of assessments are to be made as are necessary to give effect to subsection (1). (6) If a person who has made a return becomes aware that, after making it, anything in it has become incorrect because of the operation of this section, the person must give notice to an officer of Revenue and Customs specifying how the return needs to be amended. (7) A notice under subsection (6) must be given within 3 months beginning with the day on which the person first became aware that anything in the return had become incorrect because of the operation of this section. (8) In this section, “abandonment programme”, “approval” and “approved” (in relation to an abandonment programme) have the same meaning as in Part 4 of the Petroleum Act 1998.

Extensions of plant or machinery leases for reasons related to coronavirus

17

(70YCA) (1) Sections 70YB(1) and 70YC(1) (extension of lease terms) do not apply in any case where subsection (2) applies (but see subsection (3)). (2) This subsection applies where, in relation to a relevant lease— (a) on or after 1 January 2020, there is (or was) a change in the payments under the lease that would have been payable on or before 30 June 2021, (b) the effect of the change is that the term of the lease is extended (and, were it not for this section, section 70YB(1) or 70YC(1) would apply), (c) the change would not have been made if it were not for coronavirus, (d) after the change, the consideration for the lease is substantially the same as, or less than, the consideration for the lease before the change, (e) there is no other substantive change to the terms of the lease, and (f) the lessor and lessee have not made any arrangement in connection with any changes to capital allowances relating to the lease and arising as a result of the change mentioned in paragraph (a). (3) But subsection (2) does not apply where, in relation to a relevant lease, the lessor or the lessee elects that subsection (2) does not apply. (4) The Treasury may by regulations substitute for the second date for the time being specified in subsection (2)(a) such other date as they consider appropriate. (5) In this section— - “coronavirus” has the same meaning as in the Coronavirus Act 2020 (see section 1(1) of that Act); - “relevant lease” means— 1. a long funding operating lease, or 2. a plant or machinery lease that is not a long funding lease. (70YCB) (1) An election under section 70YCA must be made by notice to an officer of Revenue and Customs no later than the end of the period of 21 months beginning with the day after the day on which the change mentioned in section 70YCA(2)(a) occurred. (2) But an election under that section is of no effect unless— (a) the party making the election notifies the other party to the lease of the election, and (b) the notice under subsection (1) is accompanied by a copy of the notification given to the other party. (3) A notice under subsection (1) must include such information as may be specified (whether generally or specifically) by an officer of Revenue and Customs. (4) An election under section 70YCA is irrevocable. (5) Where a party to the lease makes or amends a tax return for a period in which the change mentioned in section 70YCA(2)(a) occurred, that party must include with that return or amended return a copy of any election made under that section in respect of the lease. (6) The following provisions do not apply to an election under section 70YCA— (a) section 42 of, and Schedule 1A to, TMA 1970 (claims and elections for income tax purposes); (b) paragraphs 54 to 60 of Schedule 18 to FA 1998 (claims and elections for corporation tax purposes). (7) References in this section to a tax return, in the case of an election for the purposes of a trade, profession or business carried on by persons in partnership, are to be read, in relation to those persons, as references to a return under section 12AA of TMA 1970 (partnership returns).

Reliefs for business

Temporary extension of periods to which trade losses may be carried back

18

Schedule 2 contains provision for a temporary extension of the periods to which trade losses may be carried back.

R&D tax credits for SMEs

19

Extension of social investment tax relief for further two years

20

In—

for “6 April 2021” substitute “ 6 April 2023 ”.

Employment income

Workers’ services provided through intermediaries

21

(b) subsection (1A) or (1B) is satisfied.

;

(1A) This subsection is satisfied where the worker has a material interest in the intermediary. (1B) This subsection is satisfied where— (a) the worker has a non-material interest in the intermediary, (b) the worker— (i) has received, (ii) has rights which entitle, or which in any circumstances would entitle, the worker to receive, or (iii) expects to receive, a chain payment from the intermediary, and (c) the chain payment does not, or will not, wholly constitute employment income of the worker (apart from as a result of this Chapter).

;

(4A) The worker is treated as having a non-material interest in the intermediary if— (a) the worker, alone or with one or more associates of the worker, or (b) an associate of the worker, with or without other associates of the worker, has a non-material interest in the intermediary. (4B) For this purpose a non-material interest means— (a) beneficial ownership of, or the ability to control, directly or through the medium of other companies or by any other indirect means, 5% or less of the ordinary share capital of the company, (b) possession of, or entitlement to acquire, rights entitling the holder to receive 5% or less of any distributions that may be made by the company, or (c) where the company is a close company, possession of, or entitlement to acquire, rights that would in the event of the winding up of the company, or in any other circumstances, entitle the holder to receive 5% or less of the assets that would then be available for distribution among the participators. (4C) In subsection (4B)(c) “participator” has the meaning given by section 454 of CTA 2010.

— “relevant person” means the worker or, in a case where the worker has not complied with subsection (1), the intermediary;

.

(d) a person in the chain who is resident in the United Kingdom or has a place of business in the United Kingdom.

(61WA) (1) This section applies if in any case at least one relevant person in a chain participates in a relevant avoidance arrangement. (2) An arrangement is a “relevant avoidance arrangement” if its main purpose, or one of its main purposes, is to secure a tax advantage by securing that at least one of the conditions mentioned in section 61O or 61P is not met in relation to an intermediary. (3) Section 61N(3) has effect as if the reference to the fee-payer were a reference to the participating person, but— (a) section 61N(4) continues to have effect as if the reference to the fee-payer were a reference to the deemed employer, and (b) Step 1 of section 61Q(1) continues to have effect as referring to the chain payment made by the deemed employer. (4) The participating person is— (a) in a case where only one relevant person participates in the arrangement, that person; (b) in any other case the highest relevant person in the chain who participated in the arrangement and from whom HMRC considers there is a realistic prospect of recovering, within a reasonable period, the amount of tax that would have been paid (or not repaid) in the absence of the arrangement. (5) Subsection (3) has effect even though that may involve a participating person being treated as both employer and employee in relation to the deemed employment under section 61N(3). (6) In this section— - “arrangement” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable); - “deemed employer” means a person who would, but for this section, be treated by section 61N(3) as making a payment to the worker; - “relevant person” means— 1. the worker; 2. a person who is resident in the United Kingdom or who has a place of business in the United Kingdom; - “tax” means income tax (and “tax advantage” is to be construed accordingly”); - “tax advantage” includes— 1. avoidance or reduction of a charge to tax or an assessment to tax, 2. repayment or increased repayment of tax, 3. avoidance of a possible assessment to tax, and 4. deferral of a payment of tax or advancement of a repayment of tax.

Payments on termination of employment

22

, or (c) general earnings to which section 402B (termination payments, and other benefits, that cannot benefit from the section 403 threshold, to be treated as earnings) applies.

(2A) The percentage of the general earnings within subsection (1)(c) that are an amount of “taxable earnings” from the employment in the tax year in which they are received is given by— $$A B x 100$where—B is the total amount of general earnings from the employment that it is reasonable to assume the employee would have received in respect of the post-employment notice period (within the meaning given by section 402E(5)) if the employee's employment had not been terminated until the end of that period, andA is the total amount of those general earnings that it is reasonable to assume would have been taxable earnings by virtue of subsection (1)(a) or (b).$

, but (b) is not capable of being an amount to which section 27 applies by virtue of subsection 1(a) or (b) of that section (UK-based taxable earnings for year when employee not resident in UK).

(6A) In any other case where the last pay period of the employee to end before the trigger date is a month and the employee's basic pay is paid in equal monthly instalments, then— - BP is the employee's basic pay from the employment in respect of the last pay period of the employee to end before the trigger date, - P is 30.42, and - D is the number of days in the post-employment notice period.

Cash equivalent benefit of a zero-emissions van

23

(aa) if the van cannot in any circumstances emit CO₂ by being driven and the tax year is 2021-22 or a subsequent tax year, the cash equivalent is nil, and

.

(ba) section 155(1B)(aa) (cash equivalent for zero-emissions vans in tax year 2021-22 and subsequent tax years), and

.

Enterprise management incentives

24

In FA 2020, for section 107 substitute—

(107) (1) Schedule 5 to ITEPA 2003 (enterprise management incentives) is modified in accordance with subsections (2) and (3). (2) Paragraph 26 (requirement as to commitment of working time) has effect as if, in sub-paragraph (3)— (a) the “or” at the end of paragraph (c) were omitted, and (b) at the end of paragraph (d), there were inserted , or (e) not being required to work for reasons connected with coronavirus disease (within the meaning given by section 1(1) of the Coronavirus Act 2020). (3) Paragraph 27 (meaning of “working time”) has effect as if, in sub-paragraph (1)(b), for “(d)” there were substituted “ (e) ”. (4) Section 535 of ITEPA 2003 (disqualifying events relating to employee in relation to enterprise management incentives) has effect as if, in the closing words of subsection (3), for “(d)” there were substituted “ (e) ”. (5) The modifications made by this section have effect in relation to the period— (a) beginning with 19 March 2020, and (b) ending with 5 April 2022.

Cycles and cyclist’s safety equipment

25

Exemption for coronavirus tests

26

Optional remuneration arrangements: statutory parental bereavement pay

27

Pensions

Freezing the standard lifetime allowance

28

Section 218(2C) and (2D) of FA 2004 (indexation of standard lifetime allowance) do not apply in relation to the standard lifetime allowance for the tax years 2021-22, 2022-23, 2023-24, 2024-25 and 2025-26 (so that the amount of the standard lifetime allowance for each of those tax years remains at the amount for the tax year 2020-21, namely £1,073,100).

Collective money purchase benefits

29

Schedule 5 contains amendments of Part 4 of FA 2004 (pension schemes etc) relating to collective money purchase benefits.

Construction industry scheme

Construction industry scheme

30

Coronavirus support payments etc

Covid-19 support scheme: working households receiving tax credits

31

Self-employment income support scheme

32

Deduction where business rates etc repaid

33

is waived, or reduced, for purposes connected with the provision of support to businesses in connection with coronavirus.

Exemptions from income tax

Repeal of provisions relating to the Interest and Royalties Directive

34

and the remainder of this section makes amendments consequential on the repeal of those provisions.

Payments made to victims of modern slavery etc

35

Miscellaneous corporation tax measures

Hybrid and other mismatches

36

Schedule 7 makes amendments to Part 6A of TIOPA 2010 (hybrid and other mismatches).

Relief for losses etc

37

Schedule 8 makes provision about corporation tax relief for losses and other amounts.

Corporate interest restriction: minor amendments

38

(2A) In applying subsection (2) and giving effect to the remainder of this section, the company is treated, at all times in the accounting period, as carrying on a residual business within the charge to corporation tax (and, accordingly, amounts falling to be brought into account in the accounting period as a result of this section are within the charge to corporation tax).

(29A) (1) Liability to a penalty under paragraph 29 does not arise if the company has a reasonable excuse for failing to submit the return by the filing date. (2) If the company has a reasonable excuse for the failure but the excuse has ceased, the company is to be treated as having continued to have the excuse if the return is submitted without unreasonable delay after the excuse ceased.

Northern Ireland Housing Executive

39

(987C) The Northern Ireland Housing Executive is not liable to corporation tax.

Capital gains tax

Annual exempt amount

40

Section 1L of TCGA 1992 (which provides for an increase in the annual exempt amount to reflect increases in CPI) does not apply for the tax years 2021-22, 2022-23, 2023-24, 2024-25 and 2025-26 (so that the annual exempt amount for each of those tax years remains at £12,300).

Hold-over relief for foreign-controlled companies

41

PART 2 — Plastic packaging tax

Introductory

Plastic packaging tax

42

Charging of plastic packaging tax

Charge to plastic packaging tax

43

Liability to pay plastic packaging tax

44

Rate

45

Payment

46

Interpretation of main terms etc

Chargeable plastic packaging components

47

even if waste or surplus material remains attached to it.

Meaning of “plastic packaging component”

48

Meaning of “plastic” and “recycled plastic”

49

but does not include plastic that is reused in the same process in which it was generated as scrap and from which it was recovered.

This includes returns of plastic from the distribution chain.

Time of importation

50

Deferrals, exemptions and credits

Plastic packaging components intended for export

51

Exempt plastic packaging components

52

Tax credits

53

Registration

The register

54

apart from information relating to a registration which is subject to an outstanding appeal.

Liability to register: producers and importers

55

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

Notification of liability and registration

56

Cancellation of registration

57

Correction of the register

58

Secondary liability and joint and several liability notices

Notices imposing secondary or joint and several liability

59

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

Administration and enforcement

Measurement of weight etc

60

Payment, collection, recovery

61

Reviews and appeals

62

Schedule 11 makes provision about reviews and appeals.

Records

63

Information and evidence

64

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

Security for tax

65

Unincorporated bodies

66

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

Service

67

Miscellaneous

Statements for business customers

68

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

Tax representatives of non-resident taxpayers

69

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

Adjustment of contracts

70

Groups of companies

71

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

Prevention of artificial separation of business activities: directions

72

Prevention of artificial separation of business activities: effect of directions

73

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

74

Transfer of business as a going concern: regulations

75

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

76

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

Offences and penalties

Fraudulent evasion

77

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

Misstatements

78

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

Conduct involving evasions or misstatements

79

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

Penalty for contravening relevant requirements

80

Criminal proceedings

81

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

General

Minor and consequential amendments

82

Schedule 15 makes minor and consequential amendments to other legislation.

Interpretation

83

In this Part—

Regulations

84

Commencement etc

85

PART 3 — Other taxes

Inheritance tax

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

86

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

Stamp duty land tax

Temporary period for reduced rates on residential property

87

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

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

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

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

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

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

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

Increased rates for non-resident transactions

88

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

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

89

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

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

Annual tax on enveloped dwellings

Relief for certain housing co-operatives

90

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

, and

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

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

91

Value added tax

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

92

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

Temporary 12.5% reduced rate for hospitality and tourism sectors

93

Extending digital record-keeping for VAT purposes to all businesses

94

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

Distance selling: Northern Ireland

95

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

Distance selling: power to make further provision

96

Supply of imported works of art etc

97

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

Continuing effect of principle preventing the abuse of the VAT system

98

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

Deferring VAT payment by reason of the coronavirus emergency

99

Refunds to S4C

100

(ia) S4C;

.

Customs duty

Steel removed to Northern Ireland

101

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

Fuel duties

Restriction of use of rebated diesel and biofuels

102

Tobacco products duty

Rates of tobacco products duty

103
1 Cigarettes An amount equal to the higher of—16.5% of the retail price plus £244.78 per thousand cigarettes, or£320.90 per thousand cigarettes.
2 Cigars £305.32 per kilogram
3 Hand-rolling tobacco £271.40 per kilogram
4 Other smoking tobacco and chewing tobacco £134.24 per kilogram
5 Tobacco for heating £251.60 per kilogram

Vehicle taxes

Rates for light passenger or light goods vehicles, motorcycles etc

104
CO₂ emissions figure CO₂ emissions figure Rate Rate
(1) (2) (3) (4)
Exceeding Not exceeding Reduced rate Standard rate
g/km g/km £ £
100 110 10 20
110 120 20 30
120 130 120 130
130 140 145 155
140 150 160 170
150 165 200 210
165 175 240 250
175 185 265 275
185 200 305 315
200 225 330 340
225 255 575 585
255 590 600

.

(a) in column (3), in the last two rows, “330” were substituted for “575” and “ 590 ”, and (b) in column (4), in the last two rows, “340” were substituted for “585” and “ 600 ”.

CO₂ emissions figure CO₂ emissions figure Rate Rate
(1) (2) (3) (4)
Exceeding Not exceeding Reduced rate Standard rate
g/km g/km £ £
0 50 0 10
50 75 15 25
75 90 105 115
90 100 130 140
100 110 150 160
110 130 170 180
130 150 210 220
150 170 545 555
170 190 885 895
190 225 1335 1345
225 255 1900 1910
255 2235 2245
CO₂ emissions figure CO₂ emissions figure Rate
(1) (2) (3)
Exceeding Not exceeding Rate
g/km g/km £
0 50 25
50 75 115
75 90 140
90 100 160
100 110 180
110 130 220
130 150 555
150 170 895
170 190 1345
190 225 1910
225 255 2245
255 2245

.

Rebates where higher rate of duty paid

105

(3C) Where the annual rate of duty chargeable on a vehicle licence at the time when it was taken out is determined in accordance with paragraph 1GE(2) of Schedule 1 (higher rates of duty: vehicles with a price exceeding £40,000) the relevant amount is given by— $$( H × R ) + ( L × P ) 12$where—H is the annual rate of duty chargeable on the licence at the time when it was taken out;R is the number of complete months (if any) of that part of the currency of the licence which is unexpired—in respect of which the rebate condition is satisfied, andwhich are within the period of six years beginning with the day of registration;L is the annual rate of duty that would have been chargeable on the licence at the time when it was taken out if that time had been after the period of six years beginning with the day of registration;P is the number of complete months (if any) of that part of the currency of the licence which is unexpired—in respect of which the rebate condition is satisfied, andwhich are not within R.$ (3D) In subsection (3C) the “day of registration” means the day on which the vehicle in respect of which the licence is in force was first registered under this Act or under the law of a country or territory outside the United Kingdom.

HGV road user levy (extension of suspension)

106

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Air passenger duty

Rates of air passenger duty from 1 April 2022

107

Gaming duty

Amounts of gross gaming yield charged to gaming duty

108
Part of gross gaming yield Rate
The first £2,548,500 15%
The next £1,757,000 20%
The next £3,077,000 30%
The next £6,494,500 40%
The remainder 50%

.

Environmental taxes

Rates of climate change levy from 1 April 2022 to 31 March 2023

109
Taxable commodity supplied Rate at which levy payable if supply is not a reduced-rate supply
Electricity £0.00775 per kilowatt hour
Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility £0.00568 per kilowatt hour
Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state £0.02175 per kilogram
Any other taxable commodity £0.04449 per kilogram

.

Rates of climate change levy from 1 April 2023

110
Taxable commodity supplied Rate at which levy payable if supply is not a reduced-rate supply
Electricity £0.00775 per kilowatt hour
Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility £0.00672 per kilowatt hour
Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state £0.02175 per kilogram
Any other taxable commodity £0.05258 per kilogram

.

Rates of landfill tax

111

Repeal of carbon emissions tax

112

PART 4 — Miscellaneous and final

Freeports

Designation of freeport tax sites

113

Capital allowances for freeport tax sites

114

Relief from stamp duty land tax for freeport tax sites

115

Schedule 23 provides for relief under Part 4 of FA 2003 in the case of transactions relating to land in a freeport tax site.

Penalties

Penalties for failure to make returns etc

116

Penalties for failure to pay tax

117

Penalties for failure to make returns etc or pay tax: consequential provision

118

Follower notice penalties

119

Schedule 28 makes provision in relation to penalties to which a person may be liable after a follower notice has been given under Chapter 2 of Part 4 of FA 2014.

Interest

Late payment interest and repayment interest: VAT

120

Avoidance

Promoters of tax avoidance schemes

121

Disclosure of tax avoidance schemes

122

Schedule 31 makes provision about the disclosure of tax avoidance schemes.

Penalties for enablers of defeated tax avoidance

123

(2A) Condition 1 is that a defeat that is a tribunal or court defeat is incurred in the case of at least one of the number of related arrangements implementing the proposal. (2B) Condition 2 is that the required number or percentage of relevant defeats is reached. (2C) For the purposes of this paragraph, a defeat incurred in respect of arrangements is a “tribunal or court defeat” if— (a) condition A (in paragraph 5) is met and the adjustments mentioned in paragraph 5(2) have been confirmed by a tribunal or court, or (b) condition B (in paragraph 6) is met and the assessment mentioned in paragraph 6(2) has been confirmed by a tribunal or court. (2D) An adjustment or assessment (as the case may be) has been confirmed by a tribunal or court if the First-tier Tribunal, the Upper Tribunal or a court has determined in proceedings before it that the adjustment or assessment in question should not be varied. (2E) For the purposes of sub-paragraph (2D), disregard variations that do not substantively alter the basis of the adjustment or assessment in question.

;

— (a) the number of related arrangements implementing the proposal is fewer than 21 and defeats have been incurred in the case of 50% or more of those arrangements; (b) the number of related arrangements implementing the proposal is more than 20 but fewer than 44 and defeats have been incurred in the case of 11 or more of those arrangements; (c) the number of related arrangements implementing the proposal is more than 43 but fewer than 200 and defeats have been incurred in the case of 25% or more of those arrangements; (d) the number of related arrangements implementing the proposal is 200 or more and defeats have been incurred in the case of 50 or more of those arrangements.

(b) condition 1 or condition 2 has been met,

;

(1) Schedule 36 to FA 2008 (information and inspection powers) applies for the purpose of— (a) checking a relevant person's position as regards liability for a penalty under paragraph 1 in relation to particular tax arrangements; (b) ascertaining the identity of any other person who has or may have enabled those arrangements, as it applies for the purpose of checking a person's tax position, subject to the modifications in paragraphs 41 to 43.

;

(3) References in this paragraph and paragraphs 41 and 42 to a person who has or may have enabled particular tax arrangements are to be read in accordance with Part 4 of this Schedule (persons who “enabled” the arrangements), save that— (a) references in that Part to the arrangements mentioned in paragraph 1 (however expressed) are to be read as references to the particular tax arrangements, and (b) references in that Part to “T” are to be read as references to the person who entered into the particular tax arrangements.

— (i) the investigation of the relevant person's position as regards liability for a penalty under paragraph 1 in relation to particular tax arrangements, or (as the case may be) (ii) the identification of any other person who has or may have enabled those arrangements, and

.

(1A) Paragraph 1 (taxpayer notices) has effect as if the reference to checking the taxpayer's tax position (as modified by paragraph 41 of this Schedule) included a reference to ascertaining the identity of any other person who has or may have enabled the particular tax arrangements in relation to which the relevant person's position as regards liability to a penalty under paragraph 1 is to be checked. (1B) Paragraph 10 (power to inspect business premises etc) has effect as if the reference to checking that person's tax position (as modified by paragraph 41 of this Schedule) included a reference to ascertaining the identity of any other person who has or may have enabled the particular tax arrangements in relation to which the relevant person's position as regards liability to a penalty under paragraph 1 is to be checked.

;

(2A) Paragraph 25 (tax advisers) is treated as omitted.

The GAAR and partnerships

124

Conditionality

Licensing authorities: requirements to give or obtain tax information

125

HMRC powers

Financial institution notices

126

(4A) (1) An officer of Revenue and Customs may by notice in writing require a financial institution— (a) to provide information, or (b) to produce a document, if conditions A and B are met. (2) Condition A is that the information or document is, in the reasonable opinion of the officer giving the notice, of a kind that it would not be onerous for the institution to provide or produce. (3) Condition B is that the information or document is reasonably required by the officer— (a) for the purpose of checking the tax position of another person whose identity is known to the officer (“the taxpayer”), or (b) for the purpose of collecting a tax debt of the taxpayer. (4) In this Schedule, “financial institution notice” means a notice under this paragraph. (5) A financial institution notice may be given by an officer of Revenue and Customs only if— (a) the officer is an authorised officer of Revenue and Customs, or (b) an authorised officer of Revenue and Customs has agreed to the giving of the notice. (6) A financial institution notice must name the taxpayer to whom it relates. (7) An officer of Revenue and Customs— (a) must give a copy of a financial institution notice to the taxpayer to whom it relates, and (b) must give the taxpayer a summary of the reasons why an officer of Revenue and Customs requires the information and documents. (8) An application (without notice) may be made to the tribunal by, or with the agreement of, an authorised officer of Revenue and Customs to disapply any of the requirements under sub-paragraph (6) or (7). (9) The tribunal must grant the application to disapply the requirement under sub-paragraph (6) if it is satisfied that the officer has reasonable grounds for believing that naming the taxpayer might seriously prejudice the assessment or collection of tax. (10) The tribunal must grant the application to disapply a requirement under sub-paragraph (7) if it is satisfied that complying with the requirement might prejudice the assessment or collection of tax.

(61ZA) (1) In this Schedule “financial institution” means— (a) a financial institution under the CRS other than one which is such an institution because (and only because) it is an investment entity within section VIII (A)(6)(b) of the CRS, or (b) a person who issues credit cards. (2) In this paragraph “the CRS” means the common reporting standard for automatic exchange of financial account information developed by the Organisation for Economic Co-operation and Development, as that standard has effect from time to time.

Collection of tax debts

127

(63A) (1) In this Schedule a reference to collecting a tax debt of a person is a reference to taking any steps for, or in connection with, the recovery of— (a) an amount of tax due from the person, or (b) any other amount due from the person in connection with any tax. (2) It does not matter whether or not another person is, or has been, at any time liable to pay the tax or other amount.

(63B) Where this Schedule applies for the purpose of collecting a tax debt of a person, “relevant foreign tax” is to be taken to include (in addition to what is mentioned in paragraph 63(4)) any tax or duty which is covered by the provisions for the exchange of information under Council Directive 2010/24/EU of 16 March 2010 concerning mutual assistance for the recovery of claims relating to taxes, duties and other measures (as it had effect immediately before IP completion day).

Miscellaneous amendments of Schedule 36 to FA 2008

128

Schedule 34 makes miscellaneous amendments of Schedule 36 to FA 2008 (information and inspection powers).

International arrangements for exchanging information on the gig economy

129

Unauthorised removal or disposal of seized goods

130

(18) (1) This paragraph applies where a thing is seized as liable to forfeiture and, with the agreement of a person within sub-paragraph (2) (“the responsible person”), the thing remains at the place where it is first seized. (2) A person is within this sub-paragraph if the person is— (a) the person whose offence or suspected offence occasioned the seizure, (b) the owner or any of the owners of the thing seized or any servant or agent of such an owner, (c) a person who has (or appears to have) possession or control over the thing being seized, (d) in the case of any thing seized on a ship or aircraft, the master or commander, (e) in the case of any thing seized on any other vehicle, the vehicle operator, or (f) a person whom the person who seizes the thing reasonably believes to be a person within any of paragraphs (a) to (e). (3) Where the thing is deemed to be seized as liable to forfeiture under paragraph 2(3) of Schedule 2A— (a) the offence or suspected offence that occasioned its detention is to be treated, for the purpose of sub-paragraph (2)(a), as having occasioned its seizure, and (b) sub-paragraph (2)(f) has effect as if the reference to the person who seizes the thing were a reference to any officer of Revenue and Customs. (4) If the responsible person fails to prevent the unauthorised removal or disposal of the thing from the place where it is seized, that failure attracts a penalty under section 9 of the Finance Act 1994 (civil penalties). (5) The removal or disposal of the thing is unauthorised unless it is done with the permission of a proper officer of Revenue and Customs. (6) Where any duty of excise is payable in respect of the thing— (a) the penalty is to be calculated by reference to the amount of that duty (whether it has been paid or not), and (b) section 9 of the Finance Act 1994 has effect as if in subsection (2)(a) the words “5 per cent of” were omitted. (7) If no duty of excise is payable in respect of the thing, that section has effect as if the penalty provided for by subsection (2)(b) of that section were whichever is the greater of— (a) the value of the thing at the time when it was first seized, or (b) £250. (19) (1) This paragraph applies where— (a) a thing is seized at a revenue trader's premises, (b) the thing is liable to forfeiture under the customs and excise Acts, and (c) without the permission of a proper officer of Revenue and Customs, the thing is removed from the trader's premises, or otherwise disposed of, by any person. (2) The Commissioners may seize as liable to forfeiture goods of equivalent value to the thing from the revenue trader's stock. (3) For the purposes of this paragraph, a revenue trader's premises include any premises used to hold or store anything for the purposes of the revenue trader's trade, regardless of who owns or occupies the premises.

Temporary approvals etc pending review or appeal

131

(16A) (1) Section 16B applies where HMRC notify P of an approval decision and— (a) HMRC are required to review the decision under section 15C or 15E, or (b) the decision, or the decision on a review under that section, has been appealed to an appeal tribunal under section 16. (2) An approval decision is a decision as to whether or not, and in which respects, any person or place (as the case may be) is to be or is to continue to be— (a) approved under section 92 of CEMA 1979 (warehousekeepers and owners of warehouses goods regime: approval of excise warehouses); (b) approved and registered under section 100G of CEMA 1979 by virtue of— (i) regulation 3 of the Warehousekeepers and Owners of Warehoused Goods Regulations 1999 (S.I. 1999/1278) (authorized warehousekeepers); (ii) regulation 5 of those Regulations (registered owners); (iii) regulation 6 of those Regulations (duty representatives); (iv) regulation 4 of the Hydrocarbon Oil (Registered Dealers in Controlled Oil) Regulations 2002 (S.I. 2002/3057) (registered dealers in controlled oil); (c) approved and registered to carry on a controlled activity under section 88C ALDA 1979 (alcohol wholesalers registration scheme); (d) approved to carry on a controlled activity under section 8L of TPDA 1979 (raw tobacco scheme); (e) approved and registered under section 49 F(No.2)A 2017 (fulfilment houses due diligence scheme); (f) licensed to carry out a regulated activity under the Tobacco Products Manufacturing Machinery (Licensing Scheme) Regulations 2018 (S.I. 2018/75) (tobacco machinery scheme). (3) The Commissioners may by regulations made by statutory instrument amend subsection (2) so as to add, vary or remove a paragraph of that subsection. (4) A statutory instrument containing regulations under subsection (3) is subject to annulment in pursuance of a resolution of the House of Commons. (16B) (1) On an application by P, HMRC may grant temporary approval if they are satisfied that— (a) P has demonstrated that if temporary approval were not granted the review or appeal in respect of the approval decision, or the appeal from a decision on review of that decision, would be rendered nugatory by virtue of P being unable to continue as a going concern or otherwise, and (b) it is appropriate in all the circumstances to grant temporary approval (despite the approval decision). (2) In determining whether it would be appropriate to grant temporary approval, HMRC must have regard to— (a) the prospect of the review or appeal in respect of the approval decision, or appeal from a decision on review of that decision, being determined in P's favour; (b) any alternative steps available to, and taken by, P to protect P's position pending the final determination of the review or appeal; (c) whether P has acted expeditiously in requiring the review or in bringing and progressing the appeal. (3) Subject to any provision made in regulations under section 16C, temporary approval has effect as an approval, registration or licence (as the case may be) under the relevant provision listed in section 16A(2) that— (a) commences on the day on which the application for temporary approval is granted, (b) expires on the day determined in accordance with subsection (4), and (c) is subject to any conditions or restrictions imposed on the temporary approval. (4) The day on which a temporary approval expires is— (a) in a case where the approval decision is cancelled on a review, the day on which it is cancelled; (b) in a case where the approval decision is upheld on a review, the last day on which an appeal could be brought against that decision (ignoring any possibility of an appeal brought out of time with permission), unless paragraph (4)(c) applies; (c) in a case where an appeal (other than an appeal brought out of time with permission) is brought in respect of an approval decision or a decision on a review of that decision, the day on which the appeal is finally determined. (5) HMRC may revoke a temporary approval, or vary the conditions or restrictions to which it is subject, if they are satisfied that a change in circumstances justifies doing so. (6) HMRC may by notice published in such form as HMRC considers appropriate make provision about the timing, form, content and determination of applications under subsection (1). (7) Subsection (8) applies if HMRC— (a) refuse an application under subsection (1), (b) grant an application under that subsection subject to conditions or restrictions, (c) vary the conditions or restrictions to which a temporary approval is subject, or (d) revoke a temporary approval, and the approval decision, or the decision on a review of that decision under section 15C or 15E, has been appealed to an appeal tribunal under section 16. (8) If, on an application by P, the appeal tribunal decides that HMRC should not have (as the case may be)— (a) refused the application, (b) granted the application subject to particular conditions or restrictions, (c) varied the conditions or restrictions to which the temporary approval is subject, or (d) revoked the temporary approval, the appeal tribunal may order HMRC to make any decision that it would have been open to HMRC to make under this section. (9) If the appeal tribunal makes an order under subsection (8), HMRC or P may apply to the appeal tribunal to vary or revoke that order. (10) HMRC must notify P of any decision to grant or revoke a temporary approval or to vary the conditions or restrictions to which such approval is subject. (16C) (1) The Commissioners may by regulations make such provision as they consider appropriate in consequence of provision made in sections 16A and 16B (including by virtue of regulations under section 16A(3)). (2) Regulations under this section may amend, repeal, revoke or otherwise modify any enactment. (3) Regulations under this section are to be made by statutory instrument. (4) A statutory instrument containing regulations under this section which amend, repeal or modify the application of an Act of Parliament must be laid before the House of Commons after being made and, unless approved by that House before the end of the period of 28 days beginning with the date on which the instrument is made, ceases to have effect at the end of that period. (5) Any other statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons. (6) The fact that a statutory instrument ceases to have effect as a result of subsection (4) does not affect— (a) anything previously done under the instrument, or (b) the making of a new instrument. (7) In calculating the period of 28 days mentioned in subsection (4), no account is to be taken of any time— (a) during which Parliament is dissolved or prorogued, or (b) during which the House of Commons is adjourned for more than four days. (8) In this section “enactment” includes an enactment contained in subordinate legislation within the meaning of the Interpretation Act 1978.

Banking

Replacement of LIBOR with incremental borrowing rate

132

(5) For this purpose, the incremental borrowing rate has the same meaning as it has for accounting purposes. (6) The Treasury may by regulations amend this section for the purpose of replacing references to the incremental borrowing rate with references to another rate.

(4) For this purpose, the incremental borrowing rate has the same meaning as it has for accounting purposes. (5) The Treasury may by regulations amend this section for the purpose of replacing references to the incremental borrowing rate with references to another rate.

(7) For this purpose, the incremental borrowing rate has the same meaning as it has for accounting purposes. (7A) The Treasury may by regulations amend this section for the purpose of replacing references to the incremental borrowing rate with references to another rate.

Tax consequences of reform etc of LIBOR and other reference rates

133

Powers of the Treasury to amend legislation relating to banks

134

(3A) Regulations under this section made on or before 30 June 2022 may have retrospective effect in relation to any time on or after 1 January 2022.

(1A) The Treasury may by regulations— (a) amend sections 269B to 269BD; (b) amend other provisions of this Part in consequence of provision made under paragraph (a). (1B) Regulations under this section may include transitional provision. (1C) Regulations under this section made on or before 30 June 2022 may have retrospective effect in relation to any accounting period ending on or after 1 January 2022. (1D) A statutory instrument containing (whether alone or with other provision) regulations under subsection (1A) may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons.

(1A) The Treasury may by regulations made by statutory instrument— (a) amend Part 8 of this Schedule (definitions); (b) amend other Parts of this Schedule in consequence of provision made under paragraph (a).” (1B) An order under sub-paragraph (1) or regulations under sub-paragraph (1A) may include transitional provision.

;

(c) in the case of an order made on or before 30 June 2022, in relation to any chargeable period ending on or after 1 January 2022.

;

(2A) Regulations under sub-paragraph (1A) made on or before 30 June 2022 may have retrospective effect in relation to any chargeable period ending on or after 1 January 2022.

;

(4) Any other statutory instrument containing provision made under this paragraph may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons.

Other

Interpretation

135

In this Act the following abbreviations are references to the following Acts—

Short title

136

This Act may be cited as the Finance Act 2021.

SCHEDULE 1

PART 1 — Small profits rate

1

CTA 2010 is amended as follows.

2

In section 3 (corporation tax rates), for subsection (2) substitute—

(2) Subsection (1) is subject to— (a) section 18A (which provides for tax to be charged at the standard small profits rate instead of the main rate in certain cases), and (b) any other provision of the Corporation Tax Acts which provides for corporation tax to be charged at a different rate.

3

Before Part 4 insert the following as a new Part 3A—

(18A) (1) Corporation tax is charged at the standard small profits rate on a company's taxable total profits of an accounting period which are not ring fence profits if— (a) the company is UK resident in the accounting period, (b) it is not a close investment-holding company in the period, and (c) its augmented profits of the accounting period do not exceed the lower limit. (2) In this Act “the standard small profits rate” means a rate that— (a) is lower than the main rate, and (b) is set by Parliament for the financial year as the standard small profits rate. (3) In this Part “ring fence profits” has the same meaning as in Part 8 (see section 276). (4) In the case of a company with ring fence profits, see section 279A(3) (small ring fence profits rate chargeable on ring fence profits). (18B) (1) This section applies if— (a) a company is UK resident in an accounting period, (b) it is not a close investment-holding company in the period, (c) its augmented profits of the accounting period exceed the lower limit but do not exceed the upper limit, and (d) its augmented profits of the accounting period do not include any ring fence profits. (2) The corporation tax charged on the company's taxable total profits of the accounting period is reduced by an amount equal to— $$F × ( U − A ) × N A$where—F is the standard marginal relief fraction,U is the upper limit,A is the amount of the augmented profits, andN is the amount of the taxable total profits.$ (3) In this Act “the standard marginal relief fraction” means the fraction set by Parliament for the financial year as the standard marginal relief fraction for the purposes of this Part. (18C) In the case of a company with ring fence profits— (a) see section 279B (if the company's augmented profits of an accounting period consist exclusively of ring fence profits), and (b) see section 279C (if the company's augmented profits of an accounting period consist of both ring fence profits and other profits). (18D) (1) This section gives the meaning in this Part of “the lower limit” and “the upper limit” in relation to an accounting period of a company (“C”). (2) If C has no associated company in the accounting period— (a) the lower limit is £50,000, and (b) the upper limit is £250,000. (3) If C has one or more associated companies in the accounting period— (a) the lower limit is— $£ 50,000 ( 1 + N )$ (b) the upper limit is— $$£ 250,000 ( 1 + N )$where N is the number of those associated companies.$ (4) For an accounting period of less than 12 months the lower limit and the upper limit are proportionately reduced. (18E) (1) For the purposes of section 18D, a company is another company's associated company in an accounting period if it is an associated company (see subsection (4)) for any part of the accounting period. (2) The rule in subsection (1) applies to each of two or more associated companies even if they are associated companies for different parts of the accounting period. (3) But an associated company is ignored for the purposes of section 18D if— (a) it has not carried on a trade or business at any time in the accounting period, or (b) it was an associated company for part only of the accounting period and has not carried on a trade or business at any time in that part of the accounting period. (4) For the purposes of this Part, a company is an associated company of another at any time when— (a) one of the two has control of the other, or (b) both are under the control of the same person or persons. (5) In subsection (4) “control” has the same meaning as in Part 10 (see sections 450 and 451). (6) In this section— (a) subsection (3) is subject to section 18F, and (b) subsections (4) and (5) are subject to sections 18G to 18J. (18F) (1) Subsection (2) applies if a company carries on a business of making investments in an accounting period and throughout the period the company— (a) carries on no trade, (b) has one or more 51% subsidiaries, and (c) is a passive company. (2) The company is treated for the purposes of section 18E(3) as not carrying on a business at any time in the accounting period. (3) A company is a passive company throughout an accounting period only if the following requirements are met— (a) it has no assets in that period, other than shares in companies which are its 51% subsidiaries, (b) no income arises to it in that period other than dividends, (c) if income arises to it in that period in the form of dividends— (i) the redistribution condition is met (see subsection (4)), and (ii) the dividends are exempt distributions of a qualifying kind received by it (see subsection (5)), (d) no chargeable gains accrue to it in that period, (e) no expenses of management of the business mentioned in subsection (1) are referable to that period, and (f) no qualifying charitable donations are deductible from the company's total profits of that period. (4) The redistribution condition is that— (a) the company pays dividends to one or more of its shareholders in the accounting period, and (b) the total amount paid in the form of those dividends is at least equal to the amount of the income arising to the company in the form of dividends in that period. (5) For the purposes of this section a distribution is an “exempt distribution of a qualifying kind” if— (a) it is a distribution for the purposes of the Corporation Tax Acts because (and only because) it falls within paragraph A, B, G or H in section 1000(1), and (b) it is exempt for the purposes of Part 9A of CTA 2009 (company distributions). (6) If income arises to a company in an accounting period in the form of a dividend and the requirement in subsection (3)(c) is met in respect of the income— (a) neither the dividend nor any asset representing it is treated as an asset of the company in that accounting period for the purposes of subsection (3)(a), and (b) no right of the company to receive the dividend is treated as an asset of the company for the purposes of subsection (3)(a) in that period or any earlier accounting period. (18G) (1) This section applies if— (a) it is necessary to determine in accordance with section 18E(4) and (5) whether a company is an associated company of another company, and (b) the relationship between the two companies is not one of substantial commercial interdependence. (2) In the application of section 451 (meaning of “control”: rights to be attributed) for the purposes of the determination, any person to whom rights and duties fall to be attributed under subsections (4) and (5) of that section is to be treated, for the purposes of those subsections, as having no associates. (3) The Treasury may by regulations prescribe factors that are to be taken into account in determining whether a relationship between two companies amounts to substantial commercial interdependence for the purposes of this section. (18H) (1) In determining for the purposes of section 18E(4) whether a company is under the control of another, fixed-rate preference shares held by a company are ignored if the company holding them— (a) is not a close company, (b) takes no part in the management or conduct of the company which issued the shares, or in the management or conduct of its business, and (c) subscribed for the shares in the ordinary course of a business which includes the provision of finance. (2) In this section “fixed-rate preference shares” means shares which— (a) were issued wholly for new consideration, (b) do not carry any right either to conversion into shares or securities of any other description or to the acquisition of any additional shares or securities, and (c) do not carry any right to dividends other than dividends which— (i) are of a fixed amount or at a fixed rate per cent of the nominal value of the shares, and (ii) together with any sum paid on redemption, represent no more than a reasonable commercial return on the consideration for which the shares were issued. (3) In subsection (2)(a) “new consideration” has the meaning given by section 1115. (18I) (1) A company (“A”) is not under the control of another company (“B”) for the purposes of section 18E(4) if— (a) B is a loan creditor of A, (b) there is no other connection between A and B, and (c) either— (i) B is not a close company, or (ii) B's relationship to A as a loan creditor arose in the ordinary course of a business which B carries on. (2) Subsection (3) applies if— (a) two companies (“A” and “B”) are controlled by the same person who is a loan creditor of each of them, (b) there is no other connection between A and B, and (c) either— (i) the loan creditor is a company which is not a close company, or (ii) the loan creditor's relationship to each of A and B as a loan creditor arose in the ordinary course of a business which the loan creditor carries on. (3) In determining for the purposes of this Part whether A and B are associated with each other, rights which the loan creditor has as a loan creditor of A, or as a loan creditor of B, are ignored. (4) In subsection (2)(a) “control” has the same meaning as in section 18E(4). (5) In this section— (a) “connection” includes a connection in the past as well as a connection in the present, and (b) references to a connection between two companies include any dealings between them. (6) In this section references to a loan creditor of a company are to be read in accordance with section 453. (18J) (1) Subsection (2) applies if— (a) two companies (“A” and “B”) are controlled by the same person by virtue of rights or powers (or both) held in trust by that person, and (b) there is no other connection between A and B. (2) In determining for the purposes of this Part whether A and B are associated with each other, the rights and powers mentioned in subsection (1)(a) are ignored. (3) In subsection (1)— (a) “control” has the same meaning as in section 18E(4), (b) “connection” includes a connection in the past as well as a connection in the present, and (c) the reference to a connection between A and B includes any dealings between them. (18K) (1) This section applies if a company (“the issuing company”) appears to an officer of Revenue and Customs to be a close company. (2) The officer may, for the purposes of this Part, by notice require the issuing company to provide the officer with— (a) particulars of any bearer securities issued by the company, (b) the names and addresses of the persons to whom the securities were issued, and (c) details of the amounts issued to each person. (3) The officer may, for the purposes of this Part, by notice require— (a) any person to whom bearer securities were issued by the company, or (b) any person to or through whom bearer securities issued by the company were subsequently sold or transferred, to provide any further information that the officer reasonably requires with a view to enabling the officer to find out the names and addresses of the persons beneficially interested in the securities. (4) In this section— - “loan creditor” has the meaning given by section 453, and - “securities” includes— 1. shares, stocks, bonds, debentures and debenture stock, and 2. any promissory note or other instrument evidencing indebtedness to a loan creditor of the company. (18L) (1) For the purposes of this Part a company's “augmented profits” of an accounting period are— (a) the company's taxable total profits of that period, plus (b) any exempt distributions of a qualifying kind received by the company (“R”) that are not excluded. (2) For the purposes of this section a distribution is an “exempt distribution of a qualifying kind” if— (a) it is a distribution for the purposes of the Corporation Tax Acts because (and only because) it falls within paragraph A, B, G or H in section 1000(1), and (b) it is exempt for the purposes of Part 9A of CTA 2009 (company distributions). (3) For the purposes of this section a distribution which R receives from a company (“C”) is excluded if— (a) C is a 51% subsidiary of R or of a company of which R is a 51% subsidiary, or (b) C is a trading company or relevant holding company that is a quasi-subsidiary of R. (4) Section 18M— (a) makes further provision for determining whether a company is a 51% subsidiary of another for the purposes of subsection (3), and (b) defines expressions used in that subsection. (18M) (1) This section applies for the purposes of section 18L(3). (2) In addition to meeting the requirements of section 1154(2), a company (“A”) is a 51% subsidiary of another company (“B”) only at times when— (a) B would be beneficially entitled to more than 50% of any profits available for distribution to equity holders of A, and (b) B would be beneficially entitled to more than 50% of any assets of A available for distribution to its equity holders on a winding up. (3) In determining whether or not a company is a 51% subsidiary of another company (“C”), C is treated as not owning share capital if— (a) it owns the share capital indirectly, (b) the share capital is owned directly by a company (“D”), and (c) a profit on the sale of the shares would be a trading receipt for D. (4) A company is a “trading company” if its business consists wholly or mainly of carrying on one or more trades. (5) A company is a “relevant holding company” if its business consists wholly or mainly of holding shares in or securities of trading companies (as defined by subsection (4)) that are its 90% subsidiaries. (6) A company is a “quasi-subsidiary” of R if— (a) it is owned by a consortium of which R is a member, (b) it is not a 75% subsidiary of any company, and (c) no arrangements of any kind (whether in writing or not) exist as a result of which it could become a 75% subsidiary of any company. (7) A company is owned by a consortium if at least 75% of the company's ordinary share capital is beneficially owned by two or more companies each of which— (a) beneficially owns at least 5% of that capital, (b) would be beneficially entitled to at least 5% of any profits available for distribution to equity holders of the company, and (c) would be beneficially entitled to at least 5% of any asset of the company available for distribution to its equity holders on a winding up. (8) The companies meeting those conditions are called the members of the consortium. (9) Chapter 6 of Part 5 (equity holders and profits or assets available for distribution) applies for the purposes of this section as it applies for the purposes of section 151(4)(a) and (b). (18N) (1) For the purposes of this Part, a close company (“the candidate company”) is a close investment-holding company in an accounting period unless throughout the period it exists wholly or mainly for one or more of the permitted purposes set out in subsection (2). There is an exception to this rule in subsection (5). (2) The candidate company exists for a permitted purpose so far as it exists— (a) for the purpose of carrying on a trade or trades on a commercial basis, (b) for the purpose of making investments in land, or estates or interests in land, in cases where the land is, or is intended to be, let commercially (see subsection (3)), (c) for the purpose of holding shares in and securities of, or making loans to, one or more companies each of which— (i) is a qualifying company, or (ii) falls within subsection (4), (d) for the purpose of co-ordinating the administration of two or more qualifying companies, (e) for the purpose of the making of investments as mentioned in paragraph (b)— (i) by one or more qualifying companies, or (ii) by a company which has control of the candidate company, or (f) for the purpose of a trade or trades carried on on a commercial basis— (i) by one or more qualifying companies, or (ii) by a company which has control of the candidate company. (3) For the purposes of subsection (2)(b), any letting of land is taken to be commercial unless the land is let to— (a) a person connected with the candidate company (“a connected person”), or (b) a person who is— (i) the spouse or civil partner of a connected person, (ii) a relative of a connected person, or the spouse or civil partner of a relative of a connected person, (iii) a relative of the spouse or civil partner of a connected person, or (iv) the spouse or civil partner of a relative of the spouse or civil partner of the connected person. (4) A company falls within this subsection (see subsection (2)(c)(ii)) if— (a) it is under the control of the candidate company or of a company which has control of the candidate company, and (b) it exists wholly or mainly for the purpose of holding shares in or securities of, or of making loans to, one or more qualifying companies. (5) If a company is wound up and was not a close investment-holding company in the accounting period that ends (by virtue of section 12(2) of CTA 2009) immediately before the winding up starts, the company is not treated for the purposes of this Part as being a close investment-holding company in the subsequent accounting period. (6) In this section “qualifying company” means a company which— (a) is under the control of the candidate company or of a company which has control of the candidate company, and (b) exists wholly or mainly for either or both of the purposes mentioned in subsection (2)(a) or (b). (7) In this section— - “control” has the meaning given by section 450, and - “relative” means brother, sister, ancestor or lineal descendant.

PART 2 — Amendments of Chapter 3A of Part 8 of CTA 2010

4

Chapter 3A of Part 8 of CTA 2010 (rates at which corporation tax is charged on ring fence profits) is amended as follows.

5

In section 279A (corporation tax rates on ring fence profits), in subsection (3), after paragraph (a) but before the “and” at the end of that paragraph insert—

(ab) it is not a close investment-holding company in the period,

.

6

In section 279B (company with only ring fence profits)—

(ab) it is not a close investment-holding company in the period,

,

7

(ab) it is not a close investment-holding company in the period,

.

(2) The corporation tax charged on the company's taxable total profits of the accounting period is reduced by the total of— (a) the sum equal to the ring fence marginal relief fraction of the ring fence amount, and (b) the sum equal to the standard marginal relief fraction of the remaining amount.

8

After section 279D insert—

(279DA) (1) In section 279C “the remaining amount” means the amount given by the formula— $( UZ − AZ ) × NZ AZ$ (2) In this section— - UZ is the amount given by multiplying the upper limit by—$A Z A$ - AZ is the total amount of any profits other than ring fence profits that form part of the augmented profits of the accounting period, - NZ is the total amount of any profits other than ring fence profits that form part of the taxable total profits of the accounting period, and - A is the amount of the augmented profits of the accounting period.

9
10

After section 279E insert—

(279EA) (1) The rules in Part 3A (see sections 18E to 18J) which apply for determining whether a company is another company's associated company in an accounting period for the purposes of section 18D apply for the purposes of section 279E. (2) Section 18K (power to obtain information) applies for the purposes of this Part as it applies for the purposes of Part 3A. (3) For the purposes of this Chapter— - “augmented profits” has the same meaning as in Part 3A (see sections 18L and 18M), and - “close investment-holding company” has the same meaning as in that Part (see section 18N).

11

Omit sections 279F to 279H (meaning of “related 51% group company” etc).

PART 3 — Consequential amendments

FA 1998

12

In Schedule 18 to FA 1998 (company tax returns, assessments and related matters), in paragraph 8(1) (calculation of tax payable), in the second step, for “Chapter 3A of Part 8 of the Corporation Tax Act 2010 (marginal relief for companies with small ring fence profits etc)” substitute “ Part 3A or Chapter 3A of Part 8 of the Corporation Tax Act 2010 (marginal relief for companies with small profits) ”.

Corporation Tax (Instalment Payments) Regulations 1998

13

(2A) The rules in Part 3A of CTA 2010 (see sections 18E to 18J) which apply for determining whether a company is another company's associated company in an accounting period for the purposes of section 18D of that Act apply for the purposes of these Regulations.

FA 2000

14

In Schedule 22 to FA 2000 (tonnage tax), in paragraph 57(6)(a) (exclusion of relief or set-off against tax liability), for “Chapter 3A of Part 8 of CTA 2010 (marginal relief for companies with small ring fence profits)” substitute “ Part 3A or Chapter 3A of Part 8 of the Corporation Tax Act 2010 (marginal relief for companies with small profits) ”.

CAA 2001

15

CAA 2001 is amended as follows.

16

(4A) The rules in Part 3A of CTA 2010 (see sections 18E to 18J) which apply for determining whether a company is another company's associated company in an accounting period for the purposes of section 18D of that Act apply for the purposes of subsection (4).

17

In Part 2 of Schedule 1 (defined expressions), omit the entry for “related 51% group company”.

CTA 2010

18

CTA 2010 is amended as follows.

19

In section 1(2) (overview of Act)—

(a) relief for companies with small profits (other than ring-fence profits) (see Part 3A),

.

20

(9) The rules in Part 3A (see sections 18E to 18J) which apply for determining whether a company is another company's associated company in an accounting period for the purposes of section 18D apply for the purposes of this section.

21

(10) The rules in Part 3A (see sections 18E to 18J) which apply for determining whether a company is another company's associated company in an accounting period for the purposes of section 18D apply for the purposes of this section.

22

In section 534 (REITs: profits), after subsection (2) insert—

(3) Profits which— (a) arise from the residual business of a UK company which is, or is a member of, a UK REIT, and (b) are charged to corporation tax, are to be charged at a rate determined without reference to sections 18A and 18B (companies with small profits).

23

In section 535 (REITs: gains), after subsection (5) insert—

(6) Gains which— (a) accrue to residual business of a company which is, or is a member of, a UK REIT, and (b) are charged to corporation tax, are to be charged at a rate determined without reference to sections 18A and 18B (companies with small profits).

24

In section 543 (REITs: financing-cost ratio), after subsection (4) insert—

(5) Accordingly, it is charged to corporation tax at the main rate of corporation tax.

25

In section 551 (REITs: distribution to holder of excessive rights), after subsection (5) insert—

(6) Accordingly, it is charged to corporation tax at the main rate of corporation tax.

26

In section 564 (REITs: breach of condition as to distribution of profits), after subsection (3) insert—

(4) Accordingly, it is charged to corporation tax at the main rate of corporation tax.

27

In section 614 (open-ended investment companies: applicable corporation tax rate), at the end insert “ (and sections 18A and 18B (relief for companies with small profits) do not apply) ”.

28

In section 618 (authorised unit trusts: applicable corporation tax rate), at the end insert “ (and sections 18A and 18B (relief for companies with small profits) do not apply) ”.

29

For section 627 substitute—

(627) (1) This section applies if corporation tax chargeable on any profits of a company for a financial year— (a) is to be charged at the main ring fence profits rate, (b) is to be charged at the standard small profits rate or the small ring profits rate, or (c) is to be reduced by reference to the standard marginal relief fraction or the ring fence marginal relief fraction (within the meaning of Part 3A or Chapter 3A of Part 8). (2) References in this Chapter to the main rate of corporation tax are to be taken, so far as relating to profits charged at any of the rates mentioned in subsection (1)(a) or (b), as references to the rate or rates concerned. (3) References in this Chapter to the main rate of corporation tax are, if corporation tax is reduced as mentioned in subsection (1)(c), to be taken as including references to the fraction or fractions concerned (and with references to a rate being “fixed” or “proposed” read accordingly as references to the fraction or fractions concerned being fixed or proposed).

30

In section 1119 (Corporation Tax Acts definitions), omit the definition of “related 51% group company”.

31

In Schedule 4 (index of defined expressions)—

close investment-holding company (in Part 3A or Chapter 3A of Part 8) section 18N (including as applied by section 279EA)
the standard marginal relief fraction section 18B
--- ---
the standard small profits rate section 18A
--- ---

,

ring fence profits (in Part 3A or 8) section 276 (including as applied by section 18A)

, and

FA 2012

32

In section 102 of FA 2012 (policyholders' rate of tax on policyholders' share of I - E profit), at the end insert—

(5) The policyholders' share of the I - E profit for an insurance company's accounting period is to be left out of account in determining for the purposes of Part 3A of CTA 2010 (companies with small profits)— (a) the augmented profits of the company for the accounting period, and (b) the taxable total profits of the company for the accounting period.

PART 4 — Commencement etc

Commencement

33

The amendments made by paragraphs 13, 16, 17, 20 and 21 have effect in relation to accounting periods beginning on or after 1 April 2023.

34

Power to make further consequential amendments

35

SCHEDULE 2

PART 1 — Income tax

Relief for trade losses made in tax year 2020-21

1

But see sub-paragraph (9) (limit on total deductions under this paragraph).

Relief for trade losses made in tax year 2021-22

2

But see sub-paragraph (9) (limit on total deductions under this paragraph).

Further provision about relief under paragraph 1 or 2

3

PART 2 — Corporation tax

Relief for trade losses incurred in accounting periods ending in financial year 2020 or 2021

4

Cap on claims by company that is not a member of a 2020 group or 2021 group

5

Non-de minimis claims to be made after end of financial year

6

Non-de minimis claims to be made in company tax return

7

Meaning of “de minimis claim” etc

8

Cap on non-de minimis claims by company that is a member of a 2020 group or 2021 group

9

Non-de minimis claims by group company to conform with statement

10

Loss carry-back allocation statements

11

Anti-avoidance

12

Interpretation

13

Power to modify

14

SCHEDULE 3

Introductory

1

Chapter 2 of Part 13 of CTA 2009 (relief for cost of research and development incurred by small and medium-sized enterprises) is amended as follows.

Cap on amount of tax credit

2

and (aa) the amount given by subsection (1A).

(1A) The amount given by this subsection is the sum of— (a) £20,000, and (b) the amount produced by multiplying by three (“the multiplier”) the company's relevant expenditure on workers for payment periods ending in the accounting period (see section 1058A). (1B) If the accounting period is less than 12 months, the amount specified in subsection (1A)(a) is proportionately reduced. (1C) Subsection (1)(aa) does not apply if section 1058D (exceptions to tax credit cap) applies in relation to the company for the accounting period.

(2) The Treasury may by regulations— (a) replace the percentage for the time being specified in subsection (1)(a) with a different percentage; (b) replace the amount for the time being specified in subsection (1A)(a) with a different amount; (c) replace the multiplier for the time being specified in subsection (1A)(b) with a different multiplier.

3

After section 1058 insert—

(1058A) (1) For the purposes of section 1058, the amount of a company's relevant expenditure on workers for a payment period is the sum of— (a) the total amount of the company's PAYE and NIC liabilities for the payment period (see section 1058B) less any amount deducted in accordance with section 1058C (avoiding double counting of PAYE and NIC liabilities), (b) if the company is connected with another company and has incurred qualifying expenditure on externally provided workers (see section 1127), the relevant portion of any staffing costs for the payment period incurred by the connected company in providing any of those workers for the company (see subsection (2)), and (c) if the company is connected with another company and has incurred qualifying expenditure on contracted out research and development (see section 1053), any staffing costs for the payment period incurred by the connected company in undertaking any of that contracted out research and development on behalf of the company (see subsection (3)). (2) The relevant portion of any staffing costs for a payment period incurred by a connected company in providing externally provided workers for a company is the sum of the amounts to be determined in the case of each of those workers as follows— - Step 1 Calculate the amount of expenditure that— 1. has been incurred by the connected company in providing the externally provided worker for the company, 2. has been incurred on staffing costs (see section 1123), and 3. forms part of the total amount of the connected company's PAYE and NIC liabilities for the payment period. - Step 2 Calculate the percentage (“the appropriate percentage”) given by—$R T × 100$where—R is the amount of the company's qualifying expenditure on the externally provided worker that has been taken into account in calculating the amount of the company's qualifying Chapter 2 expenditure (see section 1051) for the payment period, andT is the total amount of the company's qualifying expenditure on the externally provided worker (see section 1127) for the payment period. - Step 3 The amount to be determined in the case of the externally provided worker is the appropriate percentage of the amount given by step 1. (3) The staffing costs for a payment period incurred by a connected company in undertaking contracted out research and development on behalf of a company is the amount of expenditure that— (a) has been incurred by the connected company in undertaking relevant research and development on behalf of the company, (b) has been incurred on staffing costs (see section 1123), and (c) forms part of the total amount of the connected company's PAYE and NIC liabilities for the payment period. (4) If, for the purposes of step 1(c) of subsection (2) or paragraph (c) of subsection (3), it is necessary to calculate the amount of a connected company's PAYE and NIC liabilities for a payment period that falls within (but is shorter than) the connected company's payment period, the total amount for the connected company's payment period is proportionately reduced. (1058B) (1) For the purposes of section 1058A, the total amount of a company's PAYE and NIC liabilities for a payment period is the sum of— (a) amount A, and (b) amount B. (2) Amount A is the amount of income tax for which the company is required to account to an officer of Revenue and Customs for the payment period under PAYE regulations. (3) In calculating amount A disregard any deduction the company is authorised to make in respect of— (a) child tax credit; (b) working tax credit. (4) Amount B is the amount of Class 1 national insurance contributions for which the company is required to account to an officer of Revenue and Customs for the payment period. (5) In calculating amount B disregard any deduction the company is authorised to make in respect of— (a) statutory maternity pay; (b) statutory adoption pay; (c) statutory paternity pay; (d) statutory shared parental pay; (e) statutory parental bereavement pay; (f) child tax credit; (g) working tax credit. (1058C) When determining for the purposes of section 1058 a company's relevant expenditure on workers for a payment period (see section 1058A), deduct the following from the total amount of the company's PAYE and NIC liabilities for the payment period— (a) the relevant portion of any staffing costs for the payment period incurred by the company in providing externally provided workers for a connected company (within the meaning given by section 1058A(2)); (b) any staffing costs for the payment period incurred by the company in undertaking contracted out research and development on behalf of a connected company (within the meaning given by section 1058A(3)). (1058D) (1) This section applies (and accordingly, section 1058(1)(aa) does not apply) in relation to a company for an accounting period if the company meets conditions A and B. (2) A company meets condition A for an accounting period if, during the period, the company is engaged in— (a) taking, or preparing to take, steps in order that relevant intellectual property will be created by it, (b) creating relevant intellectual property, or (c) performing a significant amount of management activity in relation to relevant intellectual property it holds. (3) For the purposes of subsection (2)— (a) a company is only engaged in an activity mentioned in paragraph (a), (b) or (c) of subsection (2) if the activity is wholly or mainly undertaken by employees of the company; (b) intellectual property is “relevant” intellectual property in relation to a company if the whole or the greater part (in terms of value) of it is created by the company; (c) intellectual property is created by a company if it is created in circumstances in which the right to exploit it vests in the company (whether alone or jointly with others). (4) For the purposes of this section— - “intellectual property” means— 1. any patent, trade mark, registered design, copyright, design right or plant breeder's right, 2. any rights under the law of a country or territory outside the United Kingdom which correspond or are similar to those falling within paragraph (a), or 3. any information or technique not protected by a right within paragraph (a) or (b) but having industrial, commercial or other economic value; - “management activity”, in relation to intellectual property, means formulating plans and making decisions in relation to the development or exploitation of the intellectual property. (5) A company meets condition B for an accounting period if the amount given by subsection (6) (if any) does not exceed 15% of the company's qualifying Chapter 2 expenditure (see section 1051) for the period. (6) The amount given by this subsection is the sum of the following incurred by the company in the period— (a) qualifying expenditure on externally provided workers (see section 1127), where the company, the staff provider and (if different) the staff controller (or staff controllers)— (i) are all connected (see section 1129), or (ii) have jointly elected (under section 1130) that section 1129 is to apply to them as if they were all connected; (b) qualifying expenditure on contracted out research and development (see section 1053) where the company and the sub-contractor— (i) are connected (see section 1134), or (ii) have jointly elected (under section 1135) that section 1134 is to apply to them as if they were connected. (7) The Treasury may by regulations replace the percentage for the time being specified in subsection (5) with a different percentage.

Commencement

4

The amendments made by this Schedule have effect in relation to accounting periods beginning on or after 1 April 2021.

SCHEDULE 4

Cap on amount of tax credit

1

In Chapter 9 of Part 8B of CTA 2010 (research and development expenditure), section 357PD (amount of tax credit under section 1054 of CTA 2009) is amended in accordance with paragraphs 2 to 5.

2

For subsection (2) substitute—

(2) The amount of the R&D tax credit to which the company is entitled for the accounting period is, where the company has a Northern Ireland Chapter 2 surrenderable loss but does not have a mainstream Chapter 2 surrenderable loss, the lesser of— (a) the amount of the Northern Ireland Chapter 2 surrenderable loss multiplied by the relevant percentage, and (b) the amount given by section 1058(1A) of CTA 2009. (2A) Subsection (2)(b) does not apply if section 1058D of CTA 2009 (exceptions to tax credit cap) applies in relation to the company for the accounting period.

3

For subsection (3) substitute—

(3) The amount of the R&D tax credit to which the company is entitled for the accounting period is, where the company has a mainstream Chapter 2 surrenderable loss but does not have a Northern Ireland Chapter 2 surrenderable loss, the lesser of— (a) the amount of the mainstream Chapter 2 surrenderable loss multiplied by the percentage specified in section 1058(1)(a) of CTA 2009, and (b) the amount given by section 1058(1A) of CTA 2009. (3A) Subsection (3)(b) does not apply if section 1058D of CTA 2009 (exceptions to tax credit cap) applies in relation to the company for the accounting period.

4

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

lesser of— (a) the sum of— (i) the amount of the Northern Ireland Chapter 2 surrenderable loss multiplied by the relevant percentage, and (ii) the amount of the mainstream Chapter 2 surrenderable loss multiplied by the percentage specified in section 1058(1)(a) of CTA 2009, and (b) the amount given by section 1058(1A) of CTA 2009.

5

After subsection (4) insert—

(4A) Subsection (4)(b) does not apply if section 1058D of CTA 2009 (exceptions to tax credit cap) applies in relation to the company for the accounting period.

Commencement

6

Section 5(4) to (6) of CT(NI)A 2015 (commencement) has effect as if references to Part 8B of CTA 2010 were to that Part as amended by this Schedule.

SCHEDULE 5

PART 1 — Amendments of Part 4 of FA 2004

1

Part 4 of FA 2004 is amended in accordance with paragraphs 2 to 23.

2

(3A) For the purposes of this Part a money purchase arrangement is a “collective money purchase arrangement” at any time if, at that time, all the benefits that may be provided to or in respect of the member under the arrangement are collective money purchase benefits.

(4A) The reference in subsection (4) to an amount available for the provision of benefits to or in respect of the member includes, in relation to a collective money purchase arrangement, an amount available for the provision of benefits to or in respect of members collectively.

(b) that are not collective money purchase benefits.

(5A) In this Part “collective money purchase benefits” means benefits that are collective money purchase benefits within the meaning of Part 1 or 2 of the Pension Schemes Act 2021.

(10) The varieties of benefits mentioned in subsections (8) and (9) are— (a) cash balance benefits, (b) collective money purchase benefits, (c) money purchase benefits that are neither cash balance benefits nor collective money purchase benefits, and (d) defined benefits.

3
4
5
6
7
8

(1A) In this section “relevant arrangement” means an arrangement that— (a) is not a money purchase arrangement, or (b) is a collective money purchase arrangement.

9

(7) If this subsection applies, the value of the member's uncrystallised rights under the arrangement on the date (“the hybrid value”) is to be calculated by taking the following steps— - Step 1 In relation to each relevant variety of benefits, calculate (in accordance with the preceding provisions of this section) the value of the member's uncrystallised rights on the date, assuming that benefits of that variety are provided under the arrangement. - Step 2 The hybrid value is the higher or highest of the amounts determined under step 1.” (8) For the purposes of this section a variety of benefits is “relevant” in relation to a hybrid arrangement if, in any circumstances, benefits of that variety may be provided under the arrangement. (9) In this section “variety of benefits” means a variety of benefits specified in section 152(10).

10
11

(aa) what would be the other money purchase arrangement non-residence factor (under that section) if the arrangement were a collective money purchase arrangement,

;

12

(aa) what would be the other money purchase relevant relievable amount (under that section) if that arrangement had been a collective money purchase arrangement,

;

13
14
15
16
17

(9A) In subsection (9), “relevant arrangement” means a money purchase arrangement that is not a collective money purchase arrangement.

18

(3A) Input amount AA is what would be the pension input amount under section 233 if the benefits provided to or in respect of the individual under the arrangement were collective money purchase benefits.

19

In section 280 (abbreviations and general index), in the table in subsection (2) insert at the appropriate places—

collective money purchase arrangement section 152(3A)
collective money purchase benefits section 152(5A)
--- ---

.

20

(9) Where, under a collective money purchase arrangement— (a) a scheme pension has become payable to the member, and (b) the member subsequently becomes entitled to income payable by virtue of section 36(7)(b) or 87(7)(b) of the Pension Schemes Act 2021 (periodic income paid while pursuing continuity option 1), the income so payable is to be treated for the purposes of this Part as a continuation of the scheme pension. (10) Where, under a collective money purchase arrangement— (a) the member becomes entitled to income payable by virtue of section 36(7)(b) or 87(7)(b) of the Pension Schemes Act 2021 (periodic income paid while pursuing continuity option 1), and (b) no scheme pension was previously payable to the member, the income so payable is to be treated for the purposes of this Part as a scheme pension.

(3A) But for the purposes of sub-paragraph (2)(b), no substantial reduction occurs in the rate of a pension if— (a) the pension is payable in respect of a collective money purchase arrangement, and (b) the reduction is in accordance with the rules of the scheme.

21

(4A) A lump sum is an excluded lump sum if— (a) the pension in connection with which the member becomes entitled to it is income withdrawal, and (b) the sums or assets designated as available for the payment of the pension were sums or assets out of which benefits were provided under a collective money purchase arrangement.

22

(2B) (1) This paragraph applies for the purposes of benefit crystallisation event 1 where— (a) the designation was in connection with the winding-up of the scheme, and (b) the sums or assets designated were sums or assets out of which benefits were provided under a collective money purchase arrangement. (2) The amount crystallised by the event is to be reduced by the amount (or an appropriate proportion of the amount) previously crystallised on the individual becoming entitled to a scheme pension under the collective money purchase arrangement.

(A1) For the purposes of benefit crystallisation event 3 “excepted circumstances” exist if condition A or B is met.

(za) the entitlement to payment of a scheme pension at an increased annual rate is under an arrangement that is not a collective money purchase arrangement,

;

(5) Condition B is that— (a) the entitlement to payment of a scheme pension at an increased annual rate is under an arrangement that is a collective money purchase arrangement, and (b) at the time when the annual rate of the individual's pension is increased, all the scheme pensions being paid under collective money purchase arrangements are increased at the same rate.

(14ZA) (1) This paragraph applies where, immediately before the individual reaches the age of 75 (“the relevant time”), there is under any of the relevant pension schemes a hybrid arrangement relating to the individual. (2) If defined benefits or collective money purchase benefits are a relevant variety of benefits, benefit crystallisation event 5 applies in relation to that variety of benefits as if, at the relevant time, circumstances were such that benefits of that variety were to be provided under the arrangement. (3) If cash balance benefits, or money purchase benefits that are neither cash balance benefits nor collective money purchase benefits, are a relevant variety of benefits, benefit crystallisation event 5B applies in relation to that variety of benefits as if, at the relevant time, circumstances were such that benefits of that variety were to be provided under the arrangement. (4) The amount crystallised on the individual reaching the age of 75 is the greater or (as the case may be) greatest of the amounts crystallised by the benefit crystallisation event or events applying by virtue of sub-paragraphs (2) and (3). (5) For the purposes of this paragraph a variety of benefits is “relevant” in relation to a hybrid arrangement if, in any circumstances, benefits of that variety may be provided under the arrangement. (6) In this paragraph “variety of benefits” means a variety of benefits specified in section 152(10).

(14ZB) In determining, for the purposes of benefit crystallisation event 5A, an amount crystallised by benefit crystallisation event 1 in relation to the arrangement and the individual, any reduction made for the purposes of that crystallisation event under paragraph 2B (prevention of overlap) is to be disregarded.

23
24
Section 216(1), benefit crystallisation event 5A (benefit crystallisation event on individual reaching the age of 75, having sums or assets designated as available for the payment of a drawdown pension) To determine, for the purposes of benefit crystallisation event 5A, the aggregate of amounts crystallised by benefit crystallisation event 1 by reference to the old arrangement (so that, in an appropriate case, paragraph 14ZB of Schedule 32 applies).

PART 2 — Commencement

25

SCHEDULE 6

Introductory

1

Chapter 3 of Part 3 of FA 2004 (construction industry scheme) is amended as follows.

Contractors

2

(l) a person carrying on a business at any time if, in the period of one year ending with that time, the person's expenditure on construction operations exceeds £3,000,000.

(2) But this section only applies to a body or person falling within any of paragraphs (b) to (fa) or (h) to (k) of subsection (1) at any time if, in the period of one year ending with that time, the body or person's expenditure on construction operations exceeds £3,000,000. (3) Where the condition in subsection (1)(l) or (2) is met in relation to a body or person at any time, the body or person may elect for the condition to be treated as no longer being met if, at that time, the body or person is not expected to make any further expenditure on construction operations. (3A) Where the condition in subsection (1)(l) or (2) ceases to be met in relation to a body or person at any time, the body or person may elect for the condition to be treated as continuing to be met until the body or person is not expected to make any further expenditure on construction operations. (3B) Subsections (3) and (3A) do not prevent the condition in subsection (1)(l) or (2) from being met again in relation to the body or person.

3

Deductions for materials

4

In section 61(1) of FA 2004 (deductions on account of tax from contract payments), for “any other person” substitute “ the sub-contractor ”.

Grace period

5

In section 61 of FA 2004 (deductions on account of tax from contract payments), after subsection (3) insert—

(4) Subsection (5) applies where the contractor is a person falling within section 59(1)(l). (5) An officer of Revenue and Customs may, if the officer considers it appropriate to do so, by notice in writing— (a) exempt the contractor from the requirement to deduct sums from contract payments under subsection (1) for a specified period; (b) treat the contractor as if such an exemption had applied in relation to— (i) specified contract payments made before the date of the notice, or (ii) contract payments made during a specified period before the date of the notice. (6) The period referred to in subsection (5)(a)— (a) must not exceed 90 days, but (b) may be extended by one or more further notices under subsection (5). (7) In subsection (5) “specified” means specified in the notice.

Restrictions on set-off

6

(3A) Regulations under subsection (3) may include provision authorising an officer of Revenue and Customs to— (a) correct an error or omission relating to a set-off claim; (b) remove a set-off claim; (c) prohibit a person from making a further set-off claim, for a specified period or indefinitely. (3B) Regulations under subsection (3) that include provision of the kind mentioned in subsection (3A) may, for example, include provision— (a) allowing the things mentioned in subsection (3A)(a) to (c) to be done by amending a return (including a return not made under the regulations) or otherwise; (b) allowing a set-off claim to be removed where the claimant is not eligible to make the claim (including where the claimant is not a company, not a sub-contractor, or is registered for gross payment); (c) requiring information to be given to the Commissioners of Revenue and Customs, at such times as may be specified in the regulations. (3C) In subsections (3A) and (3B), “set-off claim” means a claim for treating a sum deducted under section 61 as paid on account of any relevant liabilities.

Penalties

7

For section 72 of FA 2004 (penalties) substitute—

(72) (1) This section applies in a case within subsection (2), (3) or (4). (2) A case is within this subsection if a person (“A”)— (a) makes a statement, or furnishes a document, which A knows to be false in a material particular, or (b) recklessly makes a statement, or furnishes a document, which is false in a material particular, for the purpose of becoming registered for gross payment or for payment under deduction. (3) A case is within this subsection if a person (“A”) who exercises influence or control over another person (“B”) or is in a position to do so — (a) makes a statement, or furnishes a document, which A knows to be false in a material particular, or (b) recklessly makes a statement, or furnishes a document, which is false in a material particular, for the purpose of enabling or facilitating B to become registered for gross payment or for payment under deduction. (4) A case is within this subsection if a person (“A”) who exercises influence or control over another person (“B”) or is in a position to do so— (a) encourages B to make a statement, or furnish a document, which A knows to be false in a material particular, or (b) encourages B to make a statement or furnish a document— (i) which is false in a material particular, and (ii) where A is reckless as to whether the statement or document is false in a material particular, for the purpose of enabling or facilitating B to become registered for gross payment or for payment under deduction. (5) In a case where this section applies, A is liable to a penalty not exceeding £3,000.

Commencement

8

SCHEDULE 7

PART 1 — Meaning of “tax”

1

After section 259B(3) of TIOPA 2010 insert—

(3ZA) A tax is not within paragraph (a) or (b) of subsection (2) so far as it is charged on income that— (a) has arisen to an entity that— (i) is not subject to the tax (as regards that income), and (ii) is, under the law of the territory referred to in that subsection, regarded as being a person for the purposes of the tax, but (b) is to be brought into account for the purposes of that tax by a different entity.

PART 2 — Chapter 3 mismatches: relevant debt relief circumstances

2

Part 6A of TIOPA is amended as follows.

3

In section 259CB (hybrid or otherwise impermissible deduction/non-inclusion mismatches and their extent), for subsection (3) substitute—

(3) So far as the excess arises— (a) by reason of a relevant debt relief provision, or (b) in relevant debt relief circumstances, it is to be taken not to arise by reason of the terms, or any other feature, of the financial instrument (whether or not it would have arisen by reason of the terms, or any other feature, of the financial instrument regardless).

4

In section 259CC (interpretation of section 259CB), after subsection (3) insert—

(3A) To determine whether excess arises in “relevant debt relief circumstances” see sections 259NEB to 259NEF.

5

After section 259NEA insert—

(259NEB) (1) This section applies for the purposes of section 259CB(3). (2) Excess arises in “relevant debt relief circumstances” if (and only if)— (a) the payment or quasi-payment mentioned in section 259CB(2) comprises the release of a liability to pay an amount under a debtor relationship (within the meaning given by section 302(6) of CTA 2009), and (b) the circumstances in section 259NEC, 259NED, 259NEE, or 259NEF apply. (3) For the purposes of those sections references to— (a) “the relevant release” means the release of liability mentioned in subsection (2)(a), (b) “loan relationship” is to be construed in accordance with section 302 of CTA 2009, (c) “amortised cost basis of accounting” is to be construed in accordance with section 313(4) and (4A) of that Act, (d) “connected companies relationship” is to be construed in accordance with section 348 of that Act, and (e) “deemed release” and “relevant rights” are to be construed in accordance with section 358(3) to (4A) of that Act. (259NEC) (1) This section is to be read with section 259NEB (relevant debt relief circumstances: introductory). (2) The circumstances in this section are— (a) the relevant release takes place in an accounting period for which an amortised cost basis of accounting is used in respect of the debtor relationship, and (b) condition A, B, C, D or E is met. (3) Condition A is that the release is part of a statutory insolvency arrangement (within the meaning of section 1319 of CTA 2009). (4) Condition B is that the release is not a release of relevant rights and is— (a) in consideration of shares forming part of the ordinary share capital of a payee, or (b) in consideration of any entitlement to such shares. (5) Condition C is that— (a) a payee meets one of the insolvency conditions (see subsection (8)), and (b) the debtor relationship is not a connected companies relationship. (6) Condition D is that the release is in consequence of the making of a mandatory reduction instrument or a third country instrument or the exercise of a stabilisation power under Part 1 of the Banking Act 2009. (7) Condition E is that— (a) the release is neither a deemed release nor a release of relevant rights, and (b) immediately before the release, it is reasonable to assume that, without the release and any arrangements of which the release forms part, there would be a material risk that at some time within the next 12 months a payee would be unable to pay its debts. (8) For the purposes of this section a company meets the insolvency conditions if— (a) it is in insolvent liquidation, (b) it is in insolvent administration, (c) it is in insolvent administrative receivership, (d) an appointment of a provisional liquidator is in force in relation to the company under section 135 of the Insolvency Act 1986 or Article 115 of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)), or (e) under the law of a country or territory outside the United Kingdom circumstances corresponding to those mentioned in paragraph (a), (b), (c) or (d) exist. (9) Section 323(A1) of CTA 2009 applies for the interpretation of subsection (7)(b); and the rest of that section applies for the interpretation of subsection (8). (259NED) (1) This section is to be read with section 259NEB (relevant debt relief circumstances: introductory). (2) The circumstances in this section are— (a) the relevant release takes place in an accounting period for which— (i) an amortised cost basis of accounting is used in respect of the debtor relationship, and (ii) the debtor relationship is a connected companies relationship, and (b) the release is neither— (i) a deemed release, nor (ii) a release of relevant rights. (259NEE) (1) This section is to be read with section 259NEB (relevant debt relief circumstances: introductory). (2) The circumstances in this section are— (a) the relevant release takes place in an accounting period for which an amortised cost basis of accounting is used in respect of the debtor relationship, (b) condition A, B, C, D or E in section 357 of CTA 2009 is met in relation to the payer, (c) immediately before the time when any of those conditions was first met the debtor relationship was a connected companies relationship, and (d) immediately after that time it was not such a relationship. (259NEF) (1) This section is to be read with section 259NEB (relevant debt relief circumstances: introductory). (2) The circumstances in this section are— (a) the relevant release takes place within 60 days of the payer and a payee becoming connected with one another (within the meaning of section 363 of CTA 2009), and (b) the corporate rescue conditions are met. (3) The corporate rescue conditions are— (a) that the payer and the payee became connected as a result of an arm's length transaction, and (b) immediately before the payer and the payee became connected it was reasonable to assume that, without the connection and any arrangements of which the connection forms part, there would be a material risk that at some point within the next 12 months the payee would have been unable to pay its debts. (4) For the purposes of subsection (3)(b), a payee is unable to pay its debts if— (a) it is unable to pay its debts as they fall due, or (b) the value of its assets is less than the amount of its liabilities, taking into account its contingent and prospective liabilities.

PART 3 — Chapter 3 mismatches: Investment trusts

6

Chapter 3 of Part 6A of TIOPA is amended as follows.

7

In section 259CB (hybrid or otherwise impermissible deduction/non-inclusion mismatches and their extent)—

(3A) So far as the excess arises by reason of an interest distribution designation, it is to be taken not to arise by reason of the terms, or any other feature, of the financial instrument (whether or not it would have arisen by reason of the terms, or any other feature, of the financial instrument regardless of that designation).

, and

8

In section 259CC (interpretation of section 259CB), after subsection (3A) (as inserted by paragraph 4) insert—

(3B) An “interest distribution designation” means a designation made under regulation 5(2) of the Investment Trusts (Dividends) (Optional Treatment as Interest Distributions) Regulations 2009 (S.I. 2009/2034).

PART 4 — Deemed dual inclusion income

9

Part 6A of TIOPA 2010 (hybrid and other mismatches) is amended as follows.

10

(6) For the purposes of subsection (4)(b) the reference to ordinary income of an investor in the payer for a permitted taxable period for the purposes of any tax charged under the law of an investor jurisdiction is taken to include a reference to an amount that meets the following requirements. (7) The requirements are that— (a) the amount may not be deducted under the law of any territory from the income of any person for the purposes of calculating taxable profits for a relevant taxable period; (b) in the case of a person resident for tax purposes in a zero-tax territory, the amount could not be deducted from the income of the person for the purposes of calculating taxable profits for a relevant taxable period if the person were resident in the United Kingdom for tax purposes; and (c) under the law of the investor jurisdiction, the amount could be deducted from the income of the investor in the hybrid payer for the purposes of calculating the investor's taxable profits for a relevant taxable period if the following assumptions were made. (8) The assumptions are that, for the purposes of identifying the recipient of the amount for tax purposes in the investor jurisdiction— (a) condition B in section 259BE(3) was not met by the hybrid payer as respects the investor jurisdiction, and (b) as a result of that, the hybrid payer was not a hybrid entity as respects the investor jurisdiction. (9) In subsection (7), “zero-tax territory”, in relation to a person, means a territory in which the person— (a) is not within the charge to tax, or (b) is within the charge to tax at a nil rate. (10) Section 259B(5) (determination of residence where no concept of residence for tax purposes exists) applies to the reference in subsection (7)(b) to a person's residence for tax purposes in a zero-tax territory as it applies to references to a person's residence for tax purposes in Chapter 8 or 11. (11) A taxable period of an investor or another person is “relevant” for the purposes of subsection (7) if— (a) the period begins before the end of 12 months after the end of the accounting period mentioned in subsection (4)(a), or (b) where the period begins after that, it is just and reasonable for the question of whether the amount concerned may or could be deducted in calculating taxable profits to be determined by reference to that taxable period rather than an earlier period.

11

(5) For the purposes of subsection (3)(b) the reference to ordinary income of the company for a permitted taxable period for the purposes of a tax charged under the law of the parent jurisdiction is taken to include a reference to excessive PE inclusion income of the company. (6) Section 259FC defines “excessive PE inclusion income” of the company for this purpose.

(259FC) (1) In section 259FB(5), “excessive PE inclusion income” of the company means— (a) where paragraph (a) of subsection (4) applies, the PE inclusion income of the company, or (b) where paragraph (b) of that subsection applies, the PE inclusion income of the company so far as it is reasonable to suppose that it exceeds the aggregate effect on taxable profits. (2) For this purpose, “PE inclusion income” of the company means an amount in respect of which conditions A and B are met. (3) Condition A is that the amount is in respect of a transfer of money or money's worth from the company in the parent jurisdiction to the company in the United Kingdom that— (a) is actually made, or (b) is (in substance) treated as being made for corporation tax purposes. (4) Condition B is that it is reasonable to suppose that— (a) the circumstances giving rise to the amount will not result in— (i) a reduction in the taxable profits of the company for a relevant taxable period, or (ii) an increase in a loss made by the company for a relevant taxable period, for the purposes of a tax charged under the law of the parent jurisdiction, or (b) those circumstances will result in such a reduction or increase for one or more relevant taxable periods, but the amount exceeds the aggregate effect on taxable profits. (5) “The aggregate effect on taxable profits” is the sum of— (a) any reductions, resulting from the circumstances giving rise to the amount, in the taxable profits of the company, for a relevant taxable period, for the purposes of a tax charged under the law of the parent jurisdiction, and (b) any amounts by which a loss made by the company, for a relevant taxable period, for the purposes of a tax charged under the law of the parent jurisdiction, is increased as a result of the circumstances giving rise to the amount. (6) For the purposes of subsections (4) and (5), any reduction in taxable profits or increase of losses is to be ignored in any case where tax is charged at a nil rate under the law of the parent jurisdiction. (7) A taxable period of the company is “relevant” for the purposes of subsections (4) and (5) if— (a) the period begins before the end of 12 months after the end of the accounting period mentioned in section 259FB(3)(a), or (b) where the period begins after that, it is just and reasonable for the question of whether the circumstances giving rise to the amount will result in a reduction in taxable profits or an increase in a loss to be determined by reference to that taxable period rather than an earlier period.

12

(259ICA) (1) For the purposes of section 259IC(10)(b) the reference to ordinary income of an investor in the hybrid entity for a permitted taxable period for the purposes of any tax charged under the law of an investor jurisdiction is taken to include a reference to an amount that meets the following requirements. (2) The requirements are that— (a) the amount may not be deducted under the law of any territory from the income of any person for the purposes of calculating taxable profits for a relevant taxable period; (b) in the case of a person resident for tax purposes in a zero-tax territory, the amount could not be deducted from the income of the person for the purposes of calculating taxable profits for a relevant taxable period if the person were resident in the United Kingdom for tax purposes; and (c) under the law of the investor jurisdiction, the amount could be deducted from the income of the investor in the hybrid entity for the purposes of calculating the investor's taxable profits for a relevant taxable period if the following assumptions were made. (3) The assumptions are that, for the purposes of identifying the recipient of the amount for tax purposes in the investor jurisdiction, it is assumed that— (a) condition B in section 259BE(3) was not met by the hybrid entity as respects the investor jurisdiction, and (b) as a result of that, the hybrid entity was not a hybrid entity as respects the investor jurisdiction. (4) In subsection (2), “zero-tax territory”, in relation to a person, means a territory in which the person— (a) is not within the charge to tax, or (b) is within the charge to tax at a nil rate. (5) Section 259B(5) (determination of residence where no concept of residence for tax purposes exists) applies to the reference in subsection (2)(b) to a person's residence for tax purposes in a zero-tax territory as it applies to references to a person's residence for tax purposes in Chapter 8 or 11. (6) A taxable period of an investor or another person is “relevant” for the purposes of subsection (2) if— (a) the period begins before the end of 12 months after the end of the accounting period mentioned in section 259IC(10)(a), or (b) where the period begins after that, it is just and reasonable for the question of whether the amount concerned may or could be deducted in calculating taxable profits to be determined by reference to that taxable period rather than an earlier period.

13

(10) For the purposes of subsection (8)(b) the reference to ordinary income of the company for a permitted taxable period for the purposes of a tax charged under the law of a territory outside the United Kingdom is taken to include a reference to excessive PE inclusion income of the company. (11) Section 259JE defines “excessive PE inclusion income” of the company for this purpose.

(259JE) (“1) In section 259JD(10), “excessive PE inclusion income” of the company means— (a) where paragraph (a) of subsection (4) applies, the PE inclusion income of the company, or (b) where paragraph (b) of that subsection applies, the PE inclusion income of the company so far as it is reasonable to suppose that it exceeds the aggregate effect on taxable profits. (2) For this purpose, “PE inclusion income” of a company for an accounting period means an amount in respect of which conditions A and B are met. (3) Condition A is that the amount is in respect of a transfer of money or money's worth from the company in the parent jurisdiction to the company in the United Kingdom that— (a) is actually made, or (b) is (in substance) treated as being made for corporation tax purposes. (4) Condition B is that it is reasonable to suppose that— (a) the circumstances giving rise to the amount will not result in— (i) a reduction in the taxable profits of the company for a relevant taxable period, or (ii) an increase in a loss made by the company for a relevant taxable period, for the purposes of a tax charged under the law of the parent jurisdiction, or (b) those circumstances will result in such a reduction or increase for one or more relevant taxable periods, but the amount exceeds the aggregate effect on taxable profits. (5) “The aggregate effect on taxable profits” is the sum of— (a) any reductions, resulting from the circumstances giving rise to the amount, in the taxable profits of the company, for a relevant taxable period, for the purposes of a tax charged under the law of the parent jurisdiction, and (b) any amounts by which a loss made by the company, for a relevant taxable period, for the purposes of a tax charged under the law of the parent jurisdiction, is increased as a result of the circumstances giving rise to the amount. (6) For the purposes of subsections (4) and (5), any reduction in taxable profits or increase of losses is to be ignored in any case where tax is charged at a nil rate under the law of the parent jurisdiction. (7) A taxable period of the company is “relevant” for the purposes of subsections (4) and (5) if— (a) the period begins before the end of 12 months after the end of the accounting period mentioned in section 259JD(8)(a), or (b) where the period begins after that, it is just and reasonable for the question of whether the circumstances giving rise to the amount will result in a reduction in taxable profits or an increase in a loss to be determined by reference to that taxable period rather than an earlier period.

PART 5 — Deemed dual inclusion income: anti-avoidance

14

In Chapter 13 of Part 6A of TIOPA 2010 (hybrid and other mismatches: anti-avoidance), in section 259M(4) (countering the effect of avoidance arrangements), omit the “or” after paragraph (a) and after paragraph (b) insert

, or (c) the person does anything which, to any extent, results in an amount being treated as dual inclusion income of that person under any provision of this Part.

PART 6 — Allocation of dual inclusion income within group

15

(16A) Chapter 12A contains provision allowing surplus dual inclusion income to be allocated within a group of companies.

(259ZM) (1) This Chapter contains provision that allows surplus dual inclusion income to be allocated within a group of companies. (2) Section 259ZMA contains the conditions that must be met for this Chapter to apply. (3) Subsection (2) of that section defines “the DII surplus” and subsection (3) of that section defines “the DII shortfall”. (4) Sections 259ZMB to 259ZMD contain provision allowing the unused part of the DII surplus of one company to be treated as dual inclusion income of another company in the same group, where it can be matched against the unused part of the DII shortfall of the other company. (5) Section 259ZME identifies when companies are in the same group. (259ZMA) (1) This Chapter applies if conditions A to E are met. (2) Condition A is that, for an accounting period (“the surplus period”), the dual inclusion income of a company (“company A”) exceeds its counteraction amount. In this Chapter, the amount of the excess is referred to as “the DII surplus”. (3) Condition B is that, for an accounting period (“the shortfall period”), the counteraction amount of another company (“company B”) exceeds its dual inclusion income. In this Chapter, the amount of the excess is referred to as “the DII shortfall”. (4) See section 259ZMF for the meanings of “dual inclusion income” and “counteraction amount”. (5) Condition C is that there is a period (“the overlapping period”) that is common to both the surplus period and the shortfall period (and see subsections (8) and (9)). (6) Condition D is that there is a time during the overlapping period when both company A and company B are within the charge to corporation tax. (7) Condition E is that there is a time during the overlapping period when company A and company B are members of the same group of companies (see section 259ZME). (8) Subsection (9) applies if, during any part of the overlapping period— (a) either company A or company B is not within the charge to corporation tax, or (b) company A and company B are not members of the same group of companies. (9) That part is treated as not forming part of the overlapping period but instead as— (a) forming part of the surplus period that is not included in the overlapping period, and (b) forming part of the shortfall period that is not included in the overlapping period. (259ZMB) (1) Company B may make a claim (an “allocation claim”) for all or part of the unused part of the DII surplus of company A for the overlapping period (see section 259ZMC) to be allocated to company B for the shortfall period, if the following requirements are met. - Requirement 1 Company A consents to the allocation claim. - Requirement 2 The allocation claim identifies the amount of the DII surplus to which it relates. - Requirement 3 Company B has an amount of ordinary income for the shortfall period (“matchable income”) that— 1. is not dual inclusion income, and 2. is equal to or exceeds the amount of the DII surplus to which the allocation claim relates. - Requirement 4 The allocation claim identifies the amount of matchable income to which the claim relates. - Requirement 5 The amount of matchable income to which the claim relates— 1. is equal to the amount of the DII surplus to which the claim relates, and 2. does not exceed the unused part of the DII shortfall of company B for the shortfall period (see section 259ZMD). (2) If company B makes an allocation claim— (a) the amount of company A's dual inclusion income for the surplus period is reduced by the amount of matchable income to which the claim relates, and (b) the amount of matchable income to which the claim relates is treated in relation to company B as if the following assumptions were made. (3) The assumptions are that— (a) things done by or to company A in relation to that amount are treated as done by or to company B, and (b) all other factual circumstances (or circumstances treated as existing as a result of any provision made by this Part) in relation to that amount are unchanged. (259ZMC) (1) This section identifies the unused part of the DII surplus of company A for the overlapping period, for the purposes of an allocation claim made by company B (“the current allocation claim”). (2) The unused part of the DII surplus of company A for the overlapping period is the amount equal to— (a) the DII surplus for the overlapping period (see subsection (3)), less (b) the amount of prior allocations for that period (see subsections (4) to (7)). (3) To determine the DII surplus for the overlapping period— (a) take the proportion of the surplus period included in the overlapping period, and (b) apply that proportion to the DII surplus for the surplus period. The DII surplus for the overlapping period is the amount given as a result of paragraph (b). (4) To determine the amount of prior allocations for the overlapping period— (a) identify any prior allocation claims for the purposes of this section (see subsection (5)), and (b) take the steps set out in subsection (6) in relation to each such claim. The amount of prior allocations for the overlapping period is the total of the previously used amounts given at Step 3 in subsection (6) for all the prior allocation claims. (5) An allocation claim is a prior allocation claim for the purposes of this section if— (a) it is an allocation claim made by a company in respect of all or part of the DII surplus of company A for the surplus period, (b) it is made before the current allocation claim, and (c) it has not been withdrawn. (6) These are the steps referred to in subsection (4)(b) to be taken in relation to each prior allocation claim. - Step 1 Identify the overlapping period for the prior allocation claim. - Step 2 Identify any period that is common to the overlapping period for the current allocation claim and the overlapping period for the prior allocation claim. If there is a common period, go to Step 3. If there is no common period, there is no previously allocated amount in relation to the prior allocation claim (and ignore Step 3). - Step 3 Determine the previously allocated amount of the DII surplus in relation to the prior allocation claim (see subsection (7)). (7) To determine the previously allocated amount of the DII surplus in relation to the prior allocation claim— (a) take the proportion of the overlapping period for the prior allocation claim that is included in the common period identified at Step 2 in subsection (6) in relation to that claim, and (b) apply that proportion to the amount of the DII surplus allocated on the prior allocation claim. The previously allocated amount of the DII surplus in relation to the prior allocation claim is the amount given as a result of paragraph (b). (8) If two or more allocation claims are made at the same time, for the purposes of this section treat the claims as made— (a) in such order as the companies making them may jointly elect, or (b) if no such election is made, in such order as an officer of Revenue and Customs may direct. (9) For the purposes of Step 3 in subsection (6), the amount of the DII surplus allocated on a prior allocation claim is determined on the basis that an amount is allocated on the claim before it is allocated on a later claim. (10) If the use of the proportion mentioned in subsection (3) or (7) would, in the circumstances of a particular case, produce a result that is unjust or unreasonable, the proportion is to be modified so far as necessary to produce a result that is just and reasonable. (259ZMD) (1) This section identifies the unused part of the DII shortfall of company B for the shortfall period, for the purposes of an allocation claim made by company B (“the current allocation claim”). (2) The unused part of the DII shortfall of company B for the shortfall period is the amount equal to— (a) the DII shortfall for the shortfall period, less (b) the amount of prior matches for the shortfall period (see subsections (3) to (5)). (3) To determine the amount of prior matches for the shortfall period— (a) identify any prior allocation claims for the purposes of this section (see subsection (4)), and (b) determine the previously matched amount of the DII shortfall in relation to each prior allocation claim (see subsection (5)). The amount of prior matches for the shortfall period is the total of the previously matched amounts of the DII shortfall in relation to all the prior allocation claims. (4) An allocation claim is a prior allocation claim for the purposes of this section if— (a) it is an allocation claim made by company B for the shortfall period, (b) it is made before the current allocation claim, and (c) it has not been withdrawn. (5) The previously matched amount of the DII shortfall in relation to a prior allocation claim is the amount that is treated as dual inclusion income of company B for the shortfall period as a result of the claim (see section 259ZMB(3)(a)). (6) If two or more allocation claims are made at the same time, for the purposes of this section treat the claims as made— (a) in such order as company B may elect, or (b) if no such election is made, in such order as an officer of Revenue and Customs may direct. (7) For the purposes of subsection (3)(b), the amount of the DII shortfall matched in relation to a prior allocation claim is determined on the basis that an amount is matched on the claim before it is matched on a later claim. (259ZME) (1) For the purposes of this Chapter, company A and company B are members of the same group of companies if— (a) one is a 75% subsidiary of the other, or (b) both are 75% subsidiaries of a third company. (2) In subsection (1), “75% subsidiary” has the same meaning as in Part 5 of CTA 2010 (group relief) (see section 151 of that Act). (3) Sections 154, 155A, 155B and 156 of CTA 2010 (members of group of companies: arrangements for transfers of companies) apply for the purposes of this Chapter as they apply for the purposes of Part 5 of CTA 2010, but as if references to a surrenderable amount were to the DII surplus. (259ZMF) (1) This section applies for the purposes of this Chapter. (2) The “dual inclusion income” of a company for an accounting period means the amount of any income that is dual inclusion income of the company for that period for the purposes of any provision of this Part. (3) An amount of income that is dual inclusion income of a company for the purposes of more than one provision of this Part is not counted more than once for the purposes of subsection (2). (4) The “counteraction amount” of a company for an accounting period means the total of all the following amounts that are applicable to the company for that period— (a) the restricted deduction, within the meaning given by section 259EC(2); (b) where section 259ED applies and there is only one payee, the relevant amount, within the meaning given by section 259ED(3); (c) where section 259ED applies and there is more than one payee, the payee's share of the relevant amount, within the meaning given by section 259ED(3) and (6); (d) the excessive PE deduction, within the meaning given by section 259FA(8); (e) where section 259IB applies, the hybrid entity double deduction amount, within the meaning given by section 259IA(4); (f) where section 259IC applies, the restricted deduction, within the meaning given by section 259IC(3); (g) the dual territory double deduction amount, within the meaning given by section 259JA(5), reduced by the amount of the impermissible overseas deduction (if any), within the meaning given by section 259JC(2); (h) a dual territory double deduction, within the meaning given by section 259KB(2); (i) an excessive PE deduction, within the meaning given by section 259KB(3) to (5).

16

In Schedule 18 to FA 1998 (company tax returns, assessments and related matters), after Part 8 insert—

(77B) (1) This Part of this Schedule applies to allocation claims under Chapter 12A of Part 6A of TIOPA 2010 (hybrid and other mismatches: allocation of dual inclusion income within group). (2) Expressions used in this Part of this Schedule and in that Chapter have the same meaning in this Part of this Schedule as they have in that Chapter. (77C) (1) An allocation claim must be made by being included in the company tax return of the claimant company (“company B”) for the shortfall period. (2) It may be included in the return originally made or by amendment. (77D) (1) In accordance with Requirement 1 in section 259ZMB of TIOPA 2010, an allocation claim in respect of all or part of the DII surplus of a company (“company A”) requires the company's consent. (2) The necessary consent must be given— (a) by notice in writing, (b) to an officer of Revenue and Customs, (c) at or before the time the allocation claim is made. Otherwise the allocation claim is ineffective. (3) An allocation claim by company B is ineffective unless it is accompanied by a copy of the notice of consent to the allocation claim given by company A. (77E) (1) Notice of consent to an allocation claim given by company A must contain all the following details— (a) the name of company A; (b) the name of company B; (c) the amount of the DII surplus to be allocated to company B; (d) the accounting period of company A which is the surplus period. (2) Notice of consent may not be amended, but it may be withdrawn and replaced by another notice of consent. (3) Notice of consent may be withdrawn by notice to an officer of Revenue and Customs. (4) Except where the consent is withdrawn under paragraph 77I (withdrawal in consequence of reduction of DII surplus), the notice of withdrawal must be accompanied by a notice signifying the consent of company B to the withdrawal. Otherwise the notice of withdrawal is ineffective. (5) Company B must, so far as it may do so, amend its company tax return for the accounting period for which the allocation claim was made so as to reflect the withdrawal of consent. (77F) (1) Where company A gives notice of consent to an allocation claim in respect of all or part of an accounting period after filing its company tax return for the accounting period, company A must amend its company tax return for the accounting period so as to reflect the notice of consent. (2) The time limits otherwise applicable to amendment of a company tax return do not prevent an amendment being made under sub-paragraph (1). (3) If company A fails to comply with sub-paragraph (1), the notice of consent is ineffective. (77G) (1) An allocation claim may be withdrawn by company B only by amending its company tax return. (2) An allocation claim may not be amended, but must be withdrawn and replaced by another allocation claim. (77H) (1) An allocation claim may be made or withdrawn at any time up to whichever is the last of the following dates— (a) the first anniversary of the filing date for the company tax return of company B for the accounting period for which the claim is made; (b) if notice of enquiry is given into that return, 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), 30 days after notice of the 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. (2) An allocation claim may be made or withdrawn at a later time if an officer of Revenue and Customs allows it. (3) The time limits otherwise applicable to amendment of a company tax return do not apply to an amendment to the extent that it makes or withdraws an allocation claim within the time allowed by or under this paragraph, (4) The references in sub-paragraph (1) to an enquiry into a company tax return do not include an enquiry restricted to a previous amendment making or withdrawing a claim. (5) An enquiry is so restricted if— (a) the scope of the enquiry is limited as mentioned in paragraph 25(2), and (b) the amendment giving rise to the enquiry consisted of the making or withdrawing of an allocation claim. (77I) (1) This paragraph applies if, after company A has given one or more notices of consent to an allocation claim or claims, the unused part of the DII surplus of company A is reduced to less than the amount stated in the notice of consent, or the total of the amounts stated in the notices of consent. (2) Company A must within 30 days withdraw the notice of consent, or as many of the notices of consent as is necessary to bring the total amount of the DII surplus to which the claim or claims relate within the new unused part of the DII surplus of company A. (3) Company A may give one or more new notices of consent. (4) Company A must give notice in writing of the withdrawal of consent, and send a copy of any new notice of consent— (a) to each of the companies affected, and (b) to an officer of Revenue and Customs. (5) If company A fails to act in accordance with sub-paragraph (2), an officer of Revenue and Customs may by notice to company A give such directions as the officer thinks fit as to which notice or notices are to be ineffective or are to have effect in a lesser amount. (6) The power in sub-paragraph (5) must not be exercised to any greater extent than is necessary to secure that the total amount stated in the notice or notices is consistent with the unused part of the DII surplus of company A. (7) An officer of Revenue and Customs must at the same time send a copy of the notice to each company affected by the exercise of the power. (8) A company which receives— (a) notice of the withdrawal of consent, or a copy of a new notice of consent, under sub-paragraph (4), or (b) a copy of a notice containing directions by an officer of Revenue and Customs under sub-paragraph (7), must, so far as it may do so, amend its company tax return for the accounting period for which the claim is made so that it is consistent with the new position with regard to consent to an allocation claim. (9) An appeal may be brought by company A against any directions given by an officer of Revenue and Customs under sub-paragraph (5). (10) Notice of appeal must be given— (a) in writing, (b) within 30 days after the notice containing the directions was issued, and (c) to the officer of Revenue and Customs by whom the notice was given. (77J) (1) This paragraph applies where, after company A has given notice of consent to an allocation claim, company B has become liable to tax in consequence of receiving— (a) notice of the withdrawal of consent, or a copy of a new notice of consent, under paragraph 77I(4), or (b) a copy of a notice containing directions by an officer of Revenue and Customs under paragraph 77I(7). (2) If any of the tax is unpaid 6 months after company B's time limit for allocation claims, an officer of Revenue and Customs may make an assessment to tax in the name of company B on any other company that has benefited as a result of the consent given by company A. (3) The assessment may not be made more than two years after that time limit. (4) The amount of the assessment must not exceed— (a) the amount of the unpaid tax, or (b) if less, the amount of tax which the other company saves by virtue of the consent. (5) A company assessed to an amount of tax under sub-paragraph (2) is entitled to recover from company B— (a) a sum equal to that amount, and (b) any interest on that amount which it has paid under section 87A of the Taxes Management Act 1970 (interest on unpaid corporation tax). (6) For the purposes of this paragraph, company B's time limit for allocation claims is the last of the dates mentioned in paragraph 77H(1) on which company B could make or withdraw an allocation claim for the accounting period for which the claim in question is made. (77K) (1) If an officer of Revenue and Customs discovers that any amount which is the subject of an allocation claim is or has become excessive, the officer may make an assessment to tax in the amount which in the officer's opinion ought to be charged. (2) This power is without prejudice to— (a) the power to make a discovery assessment under paragraph 41(1); (b) the making of all such adjustments by way of discharge or repayment of tax or otherwise as may be required where an amount claimed by company B on an allocation claim is excessive or company A has given consent to an allocation claim in respect of a corresponding amount. (3) If an assessment under this paragraph is made because company B fails, or is unable, to amend its company tax return under paragraph 77I(8), the assessment is not out of time if it is made within one year from— (a) the date on which company A gives notice of the withdrawal of consent, or (if later) sends a copy of a new notice of consent, to company B under paragraph 77I(4), or (b) the date on which an officer of Revenue and Customs sends company B a copy of a notice containing the officer's direction under paragraph 77I(7). (77L) (1) The Treasury may by regulations make provision for arrangements under which— (a) an allocation claim may be made without being accompanied by a copy of the notice of consent to the claim given by company A, provided authority for the claim being so made is given by a company which is authorised in relation to company B as mentioned in paragraph (b), and (b) one company may be authorised to act on behalf of two or more companies in the same group in amending their company tax returns for the purpose of making an allocation claim or giving consent to an allocation claim or revising the amount to which an allocation claim or consent relates. (2) Regulations under this paragraph may add to, exclude or modify the operation of any provisions of this Part of this Schedule to such extent as the Treasury think necessary or expedient for the purpose of, or in connection with, such arrangements. (3) Provision may in particular be made— (a) altering the conditions for making and withdrawing allocation claims, and (b) giving an officer of revenue and Customs power to recover from the authorised company or another company in the group any amount which might be recovered from company B by an assessment under paragraph 77K.

PART 7 — Financing cost of loan capital

17

, and (c) is not in respect of the financing cost of loan capital which the permanent establishment is assumed to have by virtue of section 21(2) of CTA 2009 for the purpose of applying subsection (1) of that section (the separate enterprise principle).

PART 8 — Chapters 9 and 10: carry forward of illegitimate overseas deduction

18

PART 9 — Imported mismatches

19

Chapter 11 of Part 6A of TIOPA (imported mismatches) is amended as follows.

20

In section 259K (overview of chapter), after subsection (4A) insert—

(4B) Section 259KE sets a limit on reductions under section 259KC.

21

(7) Condition E is that it is reasonable to suppose that the relevant mismatch is not capable of counteraction. (7A) A relevant mismatch is capable of counteraction to the extent it is capable of being considered, for the purposes of determining the tax treatment of a person, other than P, under the law of a territory that is OECD mismatch compliant. (7B) If a proportion of the relevant mismatch is not capable of being so considered under the law of any such territory— (a) Condition E is met in relation to that proportion, and (b) the remainder of the relevant mismatch is to be ignored for the purposes of this Part. (7C) A determination about the extent to which a relevant mismatch is capable of being so considered is to be made on a just and reasonable basis. (7D) A territory is OECD mismatch compliant if under the law of that territory effect is given to the Final Report on Neutralising the Effects of Hybrid Mismatch Arrangements published by the Organisation for Economic Cooperation and Development on 5 October 2015 or any replacement or supplementary publication (within the meaning of section 259BA(3)).

22

In section 259KC(2A), at the end insert “ and section 259KE (limit on reduction under section 259KC) ”.

23

After section 259KD insert—

(259KE) (1) This section applies where, in relation to the imported mismatch payment, the relevant deduction that may be deducted from P's income for a payment period is to be reduced under section 259KC. (2) The reduction is not to exceed the amount that the relevant mismatch would have been if the amount of the mismatch payment had been equal to the amount of the imported mismatch payment.

PART 10 — Meaning of “act together”

24

(7) P is to be taken to “act together” with T in relation to U if (and only if) subsection (7A) or (7B) applies. (7A) This subsection applies if— (a) P and T are party to a partnership agreement that— (i) it is reasonable to suppose is designed to affect the value of any of T's rights or interest in relation to U, or (ii) relates to the exercise of any of T's rights in relation to U, or (b) the same person manages— (i) some or all of P's rights or interests in relation to U, and (ii) some or all of T's rights or interests in relation to U. (7B) This subsection applies if P has a relevant investment in U and— (a) P and T are connected (within the meaning given by section 163), (b) for the purposes of influencing the conduct of U's affairs— (i) P is able to secure that T acts in accordance with P's wishes, (ii) T can reasonably be expected to act, or typically acts, in accordance with P's wishes, (iii) T is able to secure that P acts in accordance with T's wishes, or (iv) P can reasonably be expected to act, or typically acts, in accordance with T's wishes, or (c) P and T are party to any arrangement that— (i) it is reasonable to suppose is designed to affect the value of any of T's rights or interests in relation to U, or (ii) relates to the exercise of any of T's rights in relation to U. (7C) To determine whether P has a “relevant investment” in U at a particular time, subsections (3) and (4) apply but as if— (a) for “an X%”, in both places, there were substituted “ a relevant ”, and (b) for “X% or more”, in each place, there were substituted “ greater than 5% ”. (7D) For that purpose— (a) subsection (6) is to be ignored, and (b) P's rights and interests are to be aggregated with the rights and interests of persons connected to P (within the meaning given by section 1122 of CTA 2010, ignoring subsection (4) of that section).

PART 11 — Exempt investors in hybrid entities

25

Part 6A of TIOPA 2010 is amended as follows.

26

In section 259BC (the basic rules), after subsection (8) insert—

(8A) Income is to be treated as “ordinary income” if it would fall to be brought into account for the purpose of calculating taxable profits of a person but for the fact that the person is a qualifying institutional investor (and, if the person is based in a territory under the law of which there is no relevant tax on income of the kind in question, if the territory had such a tax). For the meaning of “qualifying institutional investor” see section 259NDA.

27

(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

(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).

(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—

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—

38
39
40

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)—

(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

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—

sum— (a)

;

, 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

(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).

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)—

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
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
23

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

Content of secondary liability and assessment notice

3

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

Limitation on secondary liability

6

Reduction of amount where P’s liability is reduced

7

No double payment

8

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—

Test for giving joint and several liability notice

10

Content of joint and several liability notice

11

A joint and several liability notice must—

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

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.

14
15

Assessments of liability

16

Adjustments

17

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—

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

PART 4 — Interpretation

Interpretation: related businesses

21

In this Schedule—

Interpretation: general

22

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
3

Supplementary assessments

4

Further provision about assessments under paragraphs 2 and 4

5

Time limits for assessments

6

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

PART 2 — Repayments

Repayments of overpaid tax

7

Supplementary provision about repayment etc

8
9

Reimbursement arrangements

10

Assessment for excessive repayment

11

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

Supplementary assessments

12

Further provision about assessments under paragraphs 11 and 12

13

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
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

Right to require review

4

Review by HMRC

5

Extensions of time for requiring review

6

Review out of time

7

Nature of review etc

8

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

Further provision about appeals

11

Determinations on appeal

12

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.

SCHEDULE 12

PART 1 — Information

Power to take samples

1

Disclosure of information

2

PART 2 — Evidence

Evidence by certificate

3

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

Inducements to provide information

4

SCHEDULE 13

Bodies eligible for group treatment

1
2

For the purposes of paragraph 1—

Application for group treatment

3
4

Applications to modify group treatment

5

...

6

Applications relating to group treatment

7

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

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—

9

Where—

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

Notifications relating to group treatment

11

Regulations about applications and notifications

12

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—

3

Further provision about assessments under paragraphs 2 and 3

4
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

Assessment etc of daily penalties

7
8

Time limits for assessments

9

the relevant period is the period of 20 years from the act or omission to which the penalty relates.

SCHEDULE 15

PART 1 — Penalties

Failure to notify etc

1
Plastic packaging tax Obligation under section 56 of FA 2021 (obligation to give notice of liability to be registered).

Failure to comply with requirements relating to returns

2
13B Plastic packaging tax Return under regulations under section 61 of FA 2021

.

3

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)—

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

;

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

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

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
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

(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

SCHEDULE 17

1

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

2

(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.

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

.

(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.

(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) 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

(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.

— (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).

(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.

“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).

(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

(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).

5
6

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

(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

(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.

8

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

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

— (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.

(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.

(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

(1A) A person who has become liable to be registered under this Part of this Schedule by virtue of paragraph 48(1)(ii) ceases to be so liable by virtue of that paragraph if at any time paragraph 48(1A) applies in relation to that person. (1B) A person who has become liable to be registered under this Part of this Schedule by virtue of paragraph 48(3) ceases to be so liable by virtue of that paragraph if at any time the Commissioners are satisfied that the person— (a) has ceased to make supplies as mentioned in that paragraph, and (b) will not make such supplies within the period of one year beginning with the day on which the Commissioners are notified or otherwise become aware that the person has ceased to make them.

— (a) the fact that a person ceases to be liable to be registered under this Part of this Schedule by virtue of one provision does not prevent the person being liable to be registered under this Part of this Schedule by virtue of another provision, and (b)

.

(3) Sub-paragraphs (8) to (10) of paragraph 48 apply for the purposes of this paragraph as they apply for the purposes of that paragraph.

Amendments to Part 5 of Schedule 9ZB to VATA 1994

4

In Part 5 of Schedule 9ZB to VATA 1994 (goods removed to or from Northern Ireland: rules relating to particular supplies), in paragraph 29 (distance selling between EU and Northern Ireland: place of supply)—

(iii) is registered under the OSS scheme or a non-UK scheme (within the meaning of Schedule 9ZD), and

;

PART 2 — Amendments relating to the One Stop Shop and Import One Stop Shop Schemes

5

In section 40A of VATA 1994 (Northern Ireland Protocol) after subsection (3) insert—

(4) Schedule 9ZD— (a) establishes a special accounting scheme (“the OSS scheme”) for use by persons making intra-Community distance sales of goods from Northern Ireland to member States, and (b) makes provision about corresponding schemes in member States. (5) Schedule 9ZE— (a) establishes a special accounting scheme (“the IOSS scheme”) for use by persons supplying imported goods to Northern Ireland or into the European Union, and (b) makes provision about corresponding schemes in member States. (6) Schedule 9ZF makes provision modifying other provisions of this Act and other enactments in connection with the provision made in Schedules 9ZD and 9ZE. (7) The Treasury may by regulations— (a) amend Schedules 9ZD and 9ZE, and (b) amend Parts 1 and 2 of Schedule 9ZF, (including by inserting provision modifying any provision of an Act whenever passed or made). (8) The Commissioners may by regulations— (a) amend Part 3 of Schedule 9ZF (including by inserting provision modifying any provision of an Act whenever passed or made), and (b) make such further provision as they consider appropriate about the administration, collection or enforcement of value added tax due under Schedules 9ZD and 9ZE. (9) Regulations under subsections (7) and (8) may— (a) confer on a person specified in the regulations a discretion to do anything under, or for the purposes of, the regulations; (b) make provision by reference to things specified in a notice published in accordance with the regulations; (c) make consequential, transitional, transitory, saving, supplementary or incidental provision.

6

After Schedule 9ZC to VATA 1994 insert—

SCHEDULE 9ZD (1) In this Schedule— (a) Parts 2 and 3 establish a special accounting scheme (the One Stop Shop scheme, referred to in this Schedule as the “OSS scheme”) which may be used by persons making intra-Community distance sales of goods from Northern Ireland to member States; (b) Part 4 is about persons participating in schemes in member States that correspond to the OSS scheme; (c) Part 5 is about the collection of non-UK VAT in relation to such corresponding schemes; (d) Part 6 is about appeals; (e) Part 7 contains definitions. (2) For the purposes of this Schedule, “scheme supply” means 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). (3) Persons registered under the OSS scheme are to be registered in a single register kept by the Commissioners for the purposes of the scheme. (4) (1) A person (“P”) may register under the OSS scheme if— (a) P makes or intends to make one or more scheme supplies in the course of a business that P carries on, (b) one of the following applies— (i) P's business is established in Northern Ireland, (ii) P's business is not established in Northern Ireland or a member State but P has a fixed establishment in Northern Ireland, or (iii) P's business is not established in Northern Ireland or a member State and P does not have a fixed establishment in Northern Ireland, but P makes or intends to make scheme supplies from Northern Ireland to a member State and does not have a fixed establishment in a member State, and (c) P is not barred from registering by— (i) sub-paragraph (2), (ii) the second or third paragraph of Article 369a(2) of the VAT Directive, or (iii) any provision of the Implementing Regulation. (2) P may not be registered under the OSS scheme if they are a participant in a non-UK scheme (see para 38(1)). (3) P must register under the OSS scheme if P intends to account for VAT on scheme supplies even if P is otherwise registered under this Act. (5) (1) The Commissioners must register a person (“P”) under the OSS scheme if P— (a) satisfies them that the requirements for registration are met (see paragraph 4), and (b) makes a request in accordance with this paragraph (a “registration request”). (2) A registration request must state— (a) P's name and postal and electronic addresses (including any websites), (b) whether or not P has begun to make scheme supplies and (if so) the date on which P began to do so, and (c) whether or not P has previously been identified under a non-UK scheme and (if so) the date on which P was first identified under the scheme concerned. (3) A registration request must— (a) contain any further information, and any declaration about its contents, that the Commissioners may by regulations require, and (b) be made by such electronic means, and in such manner, as the Commissioners may direct (by means of a notice published by them or otherwise) or may by regulations require. (6) Where a person (“P”) is registered under this Schedule, P's registration takes effect on the date determined in accordance with Article 57d of the Implementing Regulation. (7) The Commissioners may, by means of a notice published by them, make further provision about registration under this Schedule. (8) (1) A person (“P”) registered under the OSS scheme must inform the Commissioners of the date when P first makes scheme supplies (unless P has already given the Commissioners that information under paragraph 5(2)(b)). (2) That information, and any information P is required to give under Article 57h of the Implementing Regulation (notification of certain changes), must be communicated by such electronic means, and in such manner, as the Commissioners may direct (by means of a notice published by them or otherwise) or may by regulations require. (9) The Commissioners must cancel the registration of a person (“P”) under the OSS scheme if— (a) P has ceased to make, or no longer intends to make, scheme supplies and has notified the Commissioners of that fact; (b) the Commissioners otherwise determine that P has ceased to make, or no longer intends to make, such supplies; (c) P has ceased to satisfy any of the other requirements for registration in paragraph 4(1) and has notified the Commissioners of that fact, (d) the Commissioners otherwise determine that P has ceased to satisfy any of those conditions, or (e) the Commissioners determine that P has persistently failed to comply with P's obligations in or under this Schedule or the Implementing Regulation. (10) (1) This paragraph applies where a person (“P”)— (a) makes a scheme supply, and (b) is registered under the OSS scheme when the supply is made. (2) P is liable to pay to the Commissioners the gross amount of VAT on the supply. (3) The reference in sub-paragraph (2) to the gross amount of VAT on the supply is to the amount of VAT charged on the supply in accordance with the law of the member State in which the supply is treated as made, without any deduction of VAT pursuant to Article 168 of the VAT Directive. (11) (1) A person (“P”) who is or has been registered under the OSS scheme must submit a return (an “OSS scheme return”) to the Commissioners for each reporting period. (2) Each quarter for the whole or part of which P is registered under the OSS scheme is a “reporting period” for P. (12) (1) An OSS scheme return is to be made out in sterling. (2) Any conversion from one currency into another for the purposes of sub-paragraph (1) is to be made using the exchange rates published by the European Central Bank— (a) for the last day of the reporting period to which the OSS scheme return relates, or (b) if no such rate is published for that day, for the next day for which such a rate is published. (3) An OSS scheme return— (a) must be submitted to the Commissioners before the end of the month following the month in which the last day of the reporting period to which it relates falls; (b) must be submitted by such electronic means, and in such form and manner, as the Commissioners may direct (by means of a notice published by them or otherwise) or may by regulations require. (13) (1) A person who is required to submit an OSS scheme return must pay, by the deadline for submitting the return, the amounts required in accordance with paragraph 10 in respect of scheme supplies made in the reporting period to which the return relates. (2) A payment under this paragraph must be made in such manner as the Commissioners may direct (by means of a notice published by them or otherwise) or may by regulations require. (14) (1) A person (“P”) who is registered under the OSS scheme must make available to the Commissioners, on request, any obligatory records P is keeping of transactions entered into by P while registered under the scheme. (2) The records must be made available by electronic means. (3) In sub-paragraph (1) “obligatory records” means records kept in accordance with an obligation imposed in accordance with Article 369k of the VAT Directive. (15) Section 44 of the Commissioners for Revenue and Customs Act 2005 (requirement to pay receipts into the Consolidated Fund) does not apply to any money received for or on account of VAT that is required to be paid to a member State under Article 46 of Council Regulation (EU) No 904/2010. (16) (1) In this Schedule “a non-UK scheme” means any provision of the law of a member State which implements Section 3 of Chapter 6 of Title XII of the VAT Directive. (2) In relation to a non-UK scheme, references to the “administering member State” are to the member State under whose law the scheme is established. (17) (1) A participant in a non-UK scheme is not required to be registered under this Act by virtue of making scheme supplies in respect of which the participant is required to make returns under that other scheme. (2) Sub-paragraph (1) overrides any contrary provision in this Act. (3) Where a participant in a non-UK scheme who is not registered under this Act (“the unregistered person”) makes relevant supplies, it is to be assumed for all purposes of this Act relating to the determination of— (a) whether or not VAT is chargeable under this Act on those supplies, (b) how much VAT is chargeable under this Act on those supplies, (c) the time at which those supplies are treated as taking place, and (d) any other matter that the Commissioners may specify by regulations, that the unregistered person is registered under this Act. (4) Scheme supplies made by the unregistered person are “relevant supplies” if— (a) the value of the supplies must be accounted for in a return required to be made by the unregistered person under a non-UK scheme, and (b) the supplies are treated as made in the United Kingdom. (18) (1) Sub-paragraph (2) applies where a person (“P”) who is registered under Schedule 1A or Part 9 of Schedule 9ZA— (a) satisfies the Commissioners that P intends to apply for identification under a non-UK scheme, and (b) asks the Commissioners to cancel P's registration under Schedule 1A or Part 9 of Schedule 9ZA (as the case may be). (2) The Commissioners may cancel P's registration under Schedule 1A or Part 9 of Schedule 9ZA (as the case may be) with effect from— (a) the day on which the request is made, or (b) a later date agreed between P and the Commissioners. (19) (1) A person (“P”) who— (a) is a participant in a non-UK scheme, and (b) is also registered, or required to be registered, under this Act, is not required to discharge any obligation placed on them as a taxable person, to the extent that the obligation relates to relevant supplies. (2) The reference in sub-paragraph (1) to an obligation placed on P as a taxable person is to an obligation— (a) to which P is subject under or by virtue of this Act, and (b) to which P would not be subject if P was neither registered nor required to be registered under this Act. (3) A supply made by a participant in a non-UK scheme is a “relevant supply” if— (a) the value of the supply must be accounted for in a return required to be made by the participant under that scheme, and (b) the supply is treated as made in the United Kingdom. (4) The Commissioners may by regulations specify cases in relation to which sub-paragraph (1) is not to apply. (5) In section 25(2) (deduction of input tax from output tax by a taxable person) the reference to output tax that is due from the taxable person does not include any VAT that the taxable person is liable under a non-UK scheme to pay to the tax authorities for the administering member State. (20) In paragraph 1 of Schedule 6 (valuation: supply to connected person at less than market value) the reference to a supply made by a taxable person is to be read as including a scheme supply that is made by a participant in a non-UK scheme (and is treated as made in the United Kingdom). (21) The power of the Commissioners to make regulations under section 39 (repayment of VAT to those in business overseas) includes power to make provision for giving effect to the second sentence of Article 369j of the VAT Directive (which provides for VAT on certain supplies to participants in special accounting schemes to be refunded in accordance with Directive 2008/9/EC). (22) (1) For the purposes of this Schedule, section 73 (failure to make returns etc) is to be read as if— (a) the reference in subsection (1) of that section to returns required under this Act included relevant non-UK returns, and (b) references in that section to a prescribed accounting period included a tax period. (2) See also the modifications in paragraph 23. (3) In this Schedule “relevant non-UK return” means a non-UK return (see paragraph 38(1)) that is required to be made (wholly or partly) in respect of scheme supplies that are treated as made in the United Kingdom. (23) (1) Sub-paragraphs (2) to (4) make modifications of sections 73 and 76 which— (a) have effect for the purposes of this Schedule, and (b) are in addition to any other modifications of those sections made by this Schedule. (2) Section 73 has effect as if, after subsection (3), there were inserted— (3A) Where a person has failed to make an amendment or notification that the person is required to make under paragraph 33 of Schedule 9ZD in respect of an increase in the consideration for a UK supply (as defined in paragraph 33(7)), the Commissioners may assess the amount of VAT due from the person as a result of the increase to the best of their judgement and notify it to the person. (3B) An assessment under subsection (3A)— (a) is of VAT due for the tax period mentioned in paragraph 33(1)(a) of Schedule 9ZD; (b) must be made within the time limits provided for in section 77, and must not be made after the end of the period of— (i) 2 years after the end of the tax period referred to in paragraph 33(1)(a) of Schedule 9ZD, or if later, (ii) one year after evidence of facts sufficient in the opinion of the Commissioners to justify making the assessment comes to their knowledge. (3C) Subject to section 77, where further evidence such as is mentioned in subsection (3B)(b)(ii) comes to the Commissioners' knowledge after they have made an assessment under subsection (3A), another assessment may be made under that subsection, in addition to any earlier assessment. (3) The reference in section 73(9) to subsection (1) of that section is taken to include a reference to section 73(3A) (treated as inserted by sub-paragraph (2)). (4) Section 76 (assessment of amounts due by way of penalty, interest or surcharge) is to be read as if the reference in subsection (5) of that section to section 73(1) included a reference to section 73(3A) (treated as inserted by sub-paragraph (2)). (24) References to prescribed accounting periods in the following provisions are to be read in accordance with the modifications made by paragraphs 22 and 23— (a) section 74 (interest on VAT recovered or recoverable by assessment); (b) section 76 (assessment of amounts due by way of penalty, interest or surcharge); (c) section 77 (assessments: time limits etc). (25) (1) Where a person who has made a relevant non-UK return makes a claim under paragraph 31(7)(b) (overpayments) in relation to an error in the return, the relevant non-UK return is taken for the purposes of this Act to have been amended by the information in the claim. (2) Where a person who has made a relevant non-UK return gives the Commissioners a notice relating to the return under paragraph 33(2)(b) (increase or decrease in consideration), the relevant non- UK return is taken for the purposes of this Act to have been amended by that information. (3) Where (in a case not falling within sub-paragraph (1) or (2)) a person who has made a relevant non-UK return notifies the Commissioners (after the expiry of the period during which the non-UK return may be amended under Article 61 of the Implementing Regulation) of a change that needs to be made to the return to correct an error, or rectify an omission, in it, the relevant non-UK return is taken for the purposes of this Act to have been amended by that information. (26) (1) Sub-paragraph (2) states the “reckonable date” for the purposes of section 74(1) and (2) for any case where an amount carrying interest under that section— (a) is an amount assessed under section 73(2) (refunds etc) in reliance on paragraph 22, or that could have been so assessed, and (b) was correctly paid or credited to the person, but would not have been paid or credited to the person had the facts been as they later turn out to be. (2) The “reckonable date” is the first day after the end of the tax period in which the events occurred as a result of which the Commissioners were authorised to make the assessment (that was or could have been made) under section 73(2). (3) Sub-paragraph (4) states the “reckonable date” for any other case where an amount carrying interest under section 74 is assessed under section 74(1) or (2) in reliance on paragraph 22, or could have been so assessed. (4) The “reckonable date” is taken to be the latest date by which a non- UK return was required to be made for the tax period to which the amount assessed relates. (5) Where section 74(1) or (2) (interest on VAT recovered or recoverable by assessment) applies in relation to an amount assessed under section 73(3A) (treated as inserted by paragraph 23(2)), the “reckonable date” for the purposes of section 74(1) or (2) is taken to be the day after the end of the tax period referred to in paragraph 33(2). (27) (1) A person who is required to make a relevant non-UK return for a tax period is regarded for the purposes of this paragraph and paragraph 28 as being in default in respect of that period if either— (a) conditions 1A and 2A are met, or (b) conditions 1B and 2B are met, (but see also paragraph 29). (2) The conditions are as follows— (a) condition 1A is that the tax authorities for the administering member State have not received the return by the deadline for submitting it; (b) condition 2A is that those tax authorities have, in accordance with Article 60a of the Implementing Regulation, issued a reminder of the obligation to submit the return; (c) condition 1B is that, by the deadline for submitting the return, those tax authorities have received the return but have not received the amount of VAT shown on the return as payable by the person in respect of the tax period; (d) condition 2B is that those tax authorities have, in accordance with Article 60a of the Implementing Regulation, issued a reminder of the VAT outstanding. (3) The Commissioners may serve on a person who is in default in respect of a tax period a notice (a “special surcharge liability notice”) specifying a period— (a) ending on the first anniversary of the last day of that tax period, and (b) beginning on the date of the notice. (4) A period specified under sub-paragraph (3) is a “special surcharge period”. (5) If a special surcharge liability notice is served in respect of a tax period which ends on or before the day on which an existing special surcharge period ends, the special surcharge period specified in that notice must be expressed as a continuation of the existing special surcharge period (so that the existing period and its extension are regarded as a single special surcharge period). (28) (1) If a person on whom a special surcharge liability notice has been served— (a) is in default in respect of a tax period ending within the special surcharge period specified in (or extended by) that notice, and (b) has outstanding special scheme VAT for that tax period, the person is to be liable to a surcharge of the amount given by sub-paragraph (2). (2) The surcharge is equal to whichever is the greater of— (a) £30, and (b) the specified percentage of the person's outstanding special scheme VAT for the tax period. (3) The specified percentage depends on whether the tax period is the first, second or third etc period in respect of which the person is in default and has outstanding special scheme VAT, and is— (a) for the first such tax period, 2%; (b) for the second such tax period, 5%; (c) for the third such tax period, 10%; (d) for each such tax period after the third, 15%. (4) “Special scheme VAT”, in relation to a person, means VAT that the person is liable to pay to the tax authorities for the administering member State under a non-UK scheme in respect of scheme supplies treated as made in the United Kingdom. (5) A person has “outstanding special scheme VAT” for a tax period if some or all of the special scheme VAT for which the person is liable in respect of that period has not been paid by the deadline for the person to submit a non-UK return for that period (and the amount unpaid is referred to in sub-paragraph (2)(b) as “the person's outstanding special scheme VAT” for the tax period). (29) (1) A person who would otherwise have been liable to a surcharge under paragraph 28(1) is not to be liable to the surcharge if the person satisfies the Commissioners or, on appeal, the tribunal that, in the case of a default which is material to the surcharge— (a) the non-UK return or, as the case may be, the VAT shown on that return, was despatched at such a time and in such manner that it was reasonable to expect that it would be received by the tax authorities for the administering member State within the appropriate time limit, or (b) there is a reasonable excuse for the return or the VAT not having been so despatched. (2) Where sub-paragraph (1) applies to a person— (a) the person is treated as not having been in default in respect of the tax period in question, and (b) accordingly, any special surcharge liability notice the service of which depended on that default is regarded as not having been served. (3) A default is “material” to a surcharge if— (a) it is the default which gives rise to the surcharge, under paragraph 28(1), or (b) it is a default which was taken into account in the service of the special surcharge liability notice on which the surcharge depends and the person concerned has not previously been liable to a surcharge in respect of a tax period ending within the special surcharge period specified in or extended by that notice. (4) A default is left out of account for the purposes of paragraphs 27(3) and 28(1) if— (a) the conduct by virtue of which the person is in default is also conduct falling within section 69(1) (breaches of regulatory provisions), and (b) by reason of that conduct the person concerned is assessed to a penalty under that section. (5) If the Commissioners, after consultation with the Treasury, so direct, a default in respect of a tax period specified in the direction is to be left out of account for the purposes of paragraphs 27(3) and 28(1). (6) Section 71(1) (meaning of “reasonable excuse”) applies for the purposes of this paragraph as it applies for the purposes of sections 59 to 70. (30) (1) Section 78 (interest in certain cases of official error) applies as follows in relation to a case where, due to an error on the part of the Commissioners— (a) a person has accounted under a non-UK scheme for an amount by way of UK VAT that was not UK VAT due from the person, and as a result the Commissioners are liable under paragraph 31 to pay (or repay) an amount to the person, or (b) (in a case not falling within paragraph (a)), a person has paid, in accordance with an obligation under a non-UK scheme, an amount by way of UK VAT that was not UK VAT due from the person and which the Commissioners are in consequence liable to repay to the person. (2) Section 78 has effect as if the condition in section 78(1)(a) were met in relation to that person. (3) In the application of section 78 as a result of this paragraph, section 78(12)(b) is read as providing that any reference in that section to a return is to a return required to be made under a non-UK scheme. (4) In section 78, as it applies as a result of this paragraph, “output tax” has the meaning that expression would have if the reference in section 24(2) to a “taxable person” were to a “person”. (31) (1) A person may make a claim if the person— (a) has made a non-UK return for a tax period relating wholly or partly to scheme supplies treated as made in the United Kingdom, (b) has accounted to the tax authorities for the administering member State for VAT in respect of those supplies, and (c) in doing so has brought into account as UK VAT due to those authorities an amount (“the overpaid amount”) that was not UK VAT due to them. (2) A person may make a claim if the person has, as a participant in a non-UK scheme, paid (to the tax authorities for the administering member State or to the Commissioners) an amount by way of UK VAT that was not UK VAT due (“the overpaid amount”), otherwise than in the circumstances mentioned in sub-paragraph (1)(c). (3) A person who is or has been a participant in a non-UK scheme may make a claim if the Commissioners— (a) have assessed the person to VAT for a tax period, and (b) in doing so, have brought into account as VAT an amount (“the amount not due”) that was not VAT due. (4) Where a person makes a claim under sub-paragraph (1) or (2), the Commissioners must repay the overpaid amount to the person. (5) Where a person makes a claim under sub-paragraph (3), the Commissioners must credit the person with the amount not due. (6) Where— (a) as a result of a claim under sub-paragraph (3) an amount is to be credited to a person, and (b) after setting any sums against that amount under or by virtue of this Act, some or all of the amount remains to the person's credit, the Commissioners must pay (or repay) to the person so much of the amount as remains to the person's credit. (7) The reference in sub-paragraph (1) to a claim is to a claim made— (a) by correcting, in accordance with Article 61 of the Implementing Regulation, the error in the non-UK return mentioned in sub-paragraph (1)(a), or (b) (after the expiry of the period during which the non-UK return may be amended under Article 61) to the Commissioners. (8) Sub-paragraphs (1) and (2) do not require any amount to be repaid except to the extent that is required by Article 63 of the Implementing Regulation. (32) (1) In section 80 (credit for, or repayment of, overstated or overpaid VAT), subsections (3) to (3C) (unjust enrichment) and (4A), (4C) and (6) (recovery by assessment of amounts wrongly credited) have effect as if— (a) a claim— (i) under paragraph 31(1) were a claim under section 80(1), (ii) under paragraph 31(2) were a claim under section 80(1B), and (iii) under paragraph 31(3) were a claim under section 80(1A); (b) references in that section to a prescribed accounting period included a tax period. (2) In section 80(3) to (3C), (4A), (4C) and (6), as modified by sub-paragraph (1), references to the crediting of amounts are to be read as including the payment of amounts. (3) The Commissioners are not liable to repay the overpaid amount on a claim made— (a) under paragraph 31(2), or (b) as mentioned in paragraph 31(7)(b), if the claim is made more than 4 years after the relevant date. (4) On a claim made under paragraph 31(3), the Commissioners are not liable to credit the amount not due if the claim is made more than 4 years after the relevant date. (5) The “relevant date” is— (a) in the case of a claim under paragraph 31(1), the end of the tax period mentioned in paragraph 31(1)(a), except in the case of a claim resulting from an incorrect disclosure; (b) in the case of a claim under paragraph 31(1) resulting from an incorrect disclosure, the end of the tax period in which the disclosure was made; (c) in the case of a claim under paragraph 31(2), the date on which the payment was made; (d) in the case of a claim under paragraph 31(3), the end of the quarter in which the assessment was made. (6) A person makes an “incorrect disclosure” where— (a) the person discloses to the tax authorities in question (whether the Commissioners or the tax authorities for the administering member State) that the person has not brought into account for a tax period an amount of UK VAT due for the period (“the disclosed amount”), (b) the disclosure is made in a later tax period, and (c) some or all of the disclosed amount is not in fact VAT due. (33) (1) This paragraph applies where— (a) a person makes a non-UK return for a tax period (“the affected tax period”) relating (wholly or partly) to a UK supply, and (b) after the return has been made the amount of the consideration for the UK supply increases or decreases. (2) The person must, in the tax period in which the increase or decrease is accounted for in the person's business accounts— (a) amend the non-UK return to take account of the increase or decrease, or (b) (if the period during which the person is entitled under Article 61 of the Implementing Regulation to amend the non-UK return has expired) notify the Commissioners of the adjustment needed to the figures in the non-UK return because of the increase or decrease. (3) Where the change to which an amendment or notice under sub-paragraph (2) relates is an increase in the consideration for a UK supply, the person must pay to the tax authorities for the administering member State (in accordance with Article 62 of the Implementing Regulation) or, in a case falling within sub-paragraph (2)(b), the Commissioners, the difference between— (a) the amount of VAT that was chargeable on the supply before the increase in consideration, and (b) the amount of VAT that is chargeable in respect of the whole of the increased consideration for the supply. (4) Where the change to which an amendment or notice under sub-paragraph (2) relates is a decrease in the consideration for a UK supply, the amendment or notice has effect as a claim; and where a claim is made the Commissioners must repay any VAT paid by the person that would not have been VAT due from the person had the consideration for the supply always been the decreased amount. (5) The Commissioners may by regulations specify— (a) the latest time by which, and the form and manner in which, a claim or other notice under sub-paragraph (2)(b) must be given; (b) the latest time by which, and the form in which, a payment under sub-paragraph (3) must be made in a case within sub-paragraph (2)(b). (6) A payment made under sub-paragraph (3) in a case within sub-paragraph (2)(a) must be made before the end of the tax period referred to in sub-paragraph (2). (7) In this paragraph “UK supply” means a scheme supply that is treated as made in the United Kingdom. (34) Where a participant in a non-UK scheme— (a) has submitted a non-UK return to the tax authorities for the administering member State, and (b) amends the return to take account of the writing-off as a bad debt of the whole or part of the consideration for a scheme supply that is treated as made in the United Kingdom, the amending of the return may be treated as the making of a claim to the Commissioners for the purposes of section 36(2) (bad debts: claim for refund of VAT). (35) Where a person corrects a non-UK return in a way that constitutes telling the tax authorities for the administering member State about— (a) an inaccuracy in the return, (b) a supply of false information, or (c) a withholding of information, the person is regarded as telling HMRC about that for the purposes of paragraph 9 of Schedule 24 to the Finance Act 2007. (36) Where a participant in a non-UK scheme is liable to pay UK VAT to the tax authorities for the administering member State in accordance with the scheme, the UK VAT is regarded for the purposes of section 130(6) of the Finance Act 2008 (set-off) as payable to the Commissioners. (37) (1) An appeal lies to the tribunal with respect to any of the following— (a) a refusal to register a person under the OSS scheme; (b) the cancellation of the registration of any person under the OSS scheme; (c) a refusal to make a repayment under paragraph 31 (overpayments), or a decision by the Commissioners as to the amount of a repayment due under that provision; (d) a refusal to make a repayment under paragraph 33(4) (decrease in consideration); (e) any liability to a surcharge under paragraph 28 (default surcharge). (2) Part 5 of this Act (reviews and appeals), and any order or regulations under that Part, have effect as if an appeal under this paragraph were an appeal which lies to the tribunal under section 83(1) (but not under any particular paragraph of that subsection). (3) Where the Commissioners have made an assessment under section 73 in reliance on paragraph 22 or 23— (a) section 83(1)(p)(i): (appeals against assessments under section 73(1) etc) applies as if the relevant non-UK return were a return under this Act, and (b) the references in section 84(3) and (5) to the matters mentioned in section 83(1)(p) are to be read accordingly. (38) (1) In this Schedule— - “administering member State”, in relation to a non-UK scheme, has the meaning given by paragraph 16(2); - “the Implementing Regulation” means Council Implementing Regulation (EU) No 282/2011; - “non-UK return” means a return required to be made, for a tax period, under a non-UK scheme; - “non-UK scheme” has the meaning given by paragraph 16(1); - “OSS scheme” has the meaning given by paragraph 1(a); - “OSS scheme return” has the meaning given by paragraph 11(1); - “participant”, in relation to a non-UK scheme, means a person who is identified under that scheme; - “relevant non-UK return” has the meaning given by paragraph 22(3); - “reporting period” is to be read in accordance with paragraph 11(2); - “scheme supply” has the meaning given by paragraph 2; - “tax period” means a period for which a person is required to make a return under a non-UK scheme; - “UK VAT” means VAT in respect of scheme supplies treated as made in the United Kingdom; - “the VAT Directive” means Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax. (2) In relation to a non-UK scheme (or a non-UK return), references in this Schedule to “the tax authorities” are to the tax authorities for the member State under whose law the scheme is established. (3) References in this Schedule to scheme supplies being “treated as made” in the United Kingdom are to their being treated as made in the United Kingdom by paragraph 29(1) of Schedule 9ZB. SCHEDULE 9ZE (1) In this Schedule— (a) Parts 2 and 3 establish a special accounting scheme (the Import One Stop Shop scheme, referred to in this Schedule as the “IOSS scheme”) which may be used by certain persons making supplies of goods to Northern Ireland or into the European Union from countries or territories other than Northern Ireland or member States; (b) Part 4 makes provision about the collection of UK VAT on such supplies; (c) Part 5 makes provision about IOSS representatives; (d) Part 6 makes supplementary provision; (e) Part 7 is about appeals; (f) Part 8 contains definitions. (2) (1) For the purposes of this Schedule, a supply of goods is a “qualifying supply of goods” if— (a) the supply is a distance sale of goods imported from third territories or third countries for the purposes of the second paragraph of Article 14(4) of the VAT Directive (as modified by sub-paragraph (2)), (b) the intrinsic value of the consignment of which the goods are part is not more than £135, and (c) the consignment of which the goods are part does not contain goods of a class or description subject to any duty of excise, whether or not those goods are in fact chargeable with that duty, and whether or not that duty has been paid on those goods. (2) For the purposes of sub-paragraph (1)(a), the second paragraph of Article 14(4) of the VAT Directive is to be read as if after “Member State” there were inserted “ or Northern Ireland ”. (3) Persons registered under the IOSS scheme are to be registered in a single register kept by the Commissioners for the purposes of the scheme. (4) A person (“P”) may register under the IOSS scheme if— (a) P makes or intends to make one or more qualifying supplies of goods in the course of a business that P carries on, (b) one of the following applies— (i) P is established in Northern Ireland, (ii) P is established in a country or territory with which the EU has concluded an agreement making provision corresponding or similar to that contained in Council Directive 2010/24/EU or Regulation (EU) No 904/2010, or (iii) P is represented by an IOSS representative established in Northern Ireland (see Part 5), (c) P is not identified under any provision of the law of a member State which implements Section 4 of Chapter 6 of Title XII of the VAT Directive, and (d) P is not barred from registering by— (i) the second paragraph of Article 369l(3) of the VAT Directive, or (ii) any provision of the Implementing Regulation. (5) (1) The Commissioners must register a person (“P”) under the IOSS scheme if P— (a) satisfies them that the requirements for registration are met (see paragraph 4), and (b) makes a request in accordance with this paragraph (a “registration request”). (2) A registration request must state— (a) P's name and postal and electronic addresses (including any websites); (b) the number (if any) P has been allocated by the tax authorities in the country in which P belongs; (c) the date on which P began, or intends to begin, making qualifying supplies of goods. (3) A registration request must include a statement— (a) that P is not established in a member State, or (b) that P is so established, but is represented by an IOSS representative established in Northern Ireland. (4) A registration request must— (a) contain any further information, and any declaration about its contents, that the Commissioners may by regulations require, and (b) be made by such electronic means, and in such manner, as the Commissioners may direct (by means of a notice published by them or otherwise) or may by regulations require. (6) Where a person (“P”) is registered under this Schedule, P's registration takes effect on the date determined in accordance with Article 57d of the Implementing Regulation. (7) (1) Where the Commissioners register a person under the IOSS scheme who is an IOSS representative the Commissioners must also register under the IOSS scheme each person represented by the representative. (2) The Commissioners may, by means of a notice published by them, make further provision about registration under this Schedule. (8) A notification under Article 57h of the Implementing Regulation (notification of certain changes) must be given by such electronic means, and in such manner, as the Commissioners may direct (by means of a notice published by them or otherwise) or may by regulations prescribe. (9) The Commissioners must cancel the registration of a person (“P”) under the IOSS scheme if— (a) P has ceased to make, or no longer intends to make, qualifying supplies of goods and has notified the Commissioners of that fact, (b) the Commissioners otherwise determine that P has ceased to make, or no longer intends to make, such supplies, (c) P has ceased to satisfy any of the other conditions for registration in paragraph 4 and has notified the Commissioners of that fact, (d) the Commissioners otherwise determine that P has ceased to satisfy any of those conditions, (e) the Commissioners determine that P has persistently failed to comply with P's obligations in or under this Schedule or the Implementing Regulation, or (f) any of the circumstances described in Article 369r(3)(a) to (e) of the VAT Directive occur in relation to P. (10) (1) This paragraph applies where a person (“P”)— (a) makes a qualifying supply of goods, and (b) is registered under the IOSS scheme when the supply is made. (2) P is liable to pay to the Commissioners the VAT on the supply under and in accordance with this Schedule. (3) The amount of VAT which a person is liable to pay on the supply is to be determined in accordance with sub-paragraphs (4) to (6), without any deduction of VAT pursuant to Article 168 of the VAT Directive. (4) If the supply is treated as made in the United Kingdom, the amount is the amount of VAT charged on the supply under this Act (see paragraph 34(2)) and that amount is to be regarded for the purposes of this Act as VAT charged in accordance with this Act. (5) In a case where sub-paragraph (4) applies and— (a) P has a business establishment, or some other fixed establishment, in the United Kingdom in relation to a business carried on by P, and (b) P is not registered, or liable to be registered, under Schedule 1, no VAT is chargeable on the supply under this Act. (6) If the supply is treated as made in a member State, the amount is the amount of VAT charged on the supply in accordance with the law of that member State. (11) (1) A person (“P”) who is, or has been, registered under this Schedule must submit a return (an “IOSS scheme return”) to the Commissioners for each reporting period. (2) Each month for the whole or any part of which P is registered under this Schedule is a “reporting period” for P. (12) (1) An IOSS scheme return is to be made out in sterling. (2) Any conversion from one currency into another for the purposes of sub-paragraph (1) is to be made using the exchange rates published by the European Central Bank— (a) for the last day of the reporting period to which the IOSS scheme return relates, or (b) if no such rate is published for that day, for the next day for which such a rate is published. (3) An IOSS scheme return— (a) must be submitted to the Commissioners before the end of the calendar month following the month in which the last day of the reporting period to which it relates falls; (b) must be submitted by such electronic means, and in such form and manner, as the Commissioners may direct (by means of a notice published by them or otherwise) or may by regulations require. (13) (1) A person who is required to submit an IOSS scheme return must pay, by the deadline for submitting the return, the amounts required in accordance with paragraph 10 in respect of qualifying supplies of goods made in the reporting period to which the return relates. (2) A payment under this paragraph must be made in such manner as the Commissioners may direct (by means of a notice published by them or otherwise) or may by regulations require. (14) (1) A person (“P”) who is registered under the IOSS scheme must make available to the Commissioners, on request, any obligatory records P is keeping of transactions entered into by P while registered under the scheme. (2) The records must be made available by electronic means. (3) In sub-paragraph (1) “obligatory records” means records kept in accordance with an obligation imposed in accordance with Article 369x of the VAT Directive. (15) Section 44 of the Commissioners for Revenue and Customs Act 2005 (requirement to pay receipts into the Consolidated Fund) does not apply to any money received for or on account of VAT that is required to be paid to a member State under Article 46 of Council Regulation (EU) No 904/2010. (16) (1) For the purposes of this Schedule, section 73 (failure to make returns etc) is to be read as if— (a) the reference in subsection (1) of that section to returns required under this Act included relevant special scheme returns, and (b) references in that section to a prescribed accounting period included a tax period. (2) See also the modifications in paragraph 17. (3) In this Schedule “relevant special scheme return” means a special scheme return (see paragraph 43(1)) that is required to be made (wholly or partly) in respect of qualifying supplies of goods that are treated as made in the United Kingdom. (17) (1) Sub-paragraphs (2) to (4) make modifications of sections 73 and 76 which— (a) have effect for the purposes of this Schedule, and (b) are in addition to any other modifications of those sections made by this Schedule. (2) Section 73 has effect as if, after subsection (3), there were inserted— (3A) Where a person has failed to make an amendment or notification that the person is required to make under paragraph 27 of Schedule 9ZE in respect of an increase in the consideration for a UK supply (as defined in paragraph 27(7)), the Commissioners may assess the amount of VAT due from the person as a result of the increase to the best of their judgement and notify it to the person. (3B) An assessment under subsection (3A)— (a) is of VAT due for the tax period mentioned in paragraph 27(1)(a) of Schedule 9ZE; (b) must be made within the time limits provided for in section 77, and must not be made after the end of the period of— (i) 2 years after the end of the tax period referred to in paragraph 27(1)(a), or if later, (ii) one year after evidence of facts sufficient in the opinion of the Commissioners to justify making the assessment comes to their knowledge. (3C) Subject to section 77, where further evidence such as is mentioned in subsection (3B)(b)(ii) comes to the Commissioners' knowledge after they have made an assessment under subsection (3A), another assessment may be made under that subsection, in addition to any earlier assessment. (3) The reference in section 73(9) to subsection (1) of that section is taken to include a reference to section 73(3A) (treated as inserted by sub-paragraph (2)). (4) Section 76 (assessment of amounts due by way of penalty, interest or surcharge is to be read as if the reference in subsection (5) of that section to section 73(1) included a reference to section 73(3A) (treated as inserted by sub-paragraph (2)). (18) References to prescribed accounting periods in the following provisions are to be read in accordance with the modifications made by paragraphs 16 and 17— (a) section 74 (interest on VAT recovered or recoverable by assessment); (b) section 76 (assessment of amounts due by way of penalty, interest or surcharge); (c) section 77 (assessments: time limits etc). (19) (1) Where a person who has made a relevant special scheme return makes a claim under paragraph 25(7)(b) (overpayments) in relation to an error in the return, the relevant special scheme return is taken for the purposes of this Act to have been amended by the information in the claim. (2) Where a person who has made a relevant special scheme return gives the Commissioners a notice relating to the return under paragraph 27(2)(b) (increase or decrease in consideration), the relevant special scheme return is taken for the purposes of this Act to have been amended by that information. (3) Where (in a case not falling within sub-paragraph (1) or (2)) a person who has made a relevant special scheme return notifies the Commissioners (after the expiry of the period during which the special scheme return may be amended under Article 61 of the Implementing Regulation) of a change that needs to be made to the return to correct an error, or rectify an omission, in it, the relevant special scheme return is taken for the purposes of this Act to have been amended by that information. (20) (1) Sub-paragraph (2) states the “reckonable date” for the purposes of section 74(1) and (2) for any case where an amount carrying interest under that section— (a) is an amount assessed under section 73(2) (refunds etc) in reliance on paragraph 16, or that could have been so assessed, and (b) was correctly paid or credited to the person, but would not have been paid or credited to the person had the facts been as they later turn out to be. (2) The “reckonable date” is the first day after the end of the tax period in which the events occurred as a result of which the Commissioners were authorised to make the assessment (that was or could have been made) under section 73(2). (3) Sub-paragraph (4) states the “reckonable date” for any other case where an amount carrying interest under section 74 is assessed under section 74(1) or (2) in reliance on paragraph 16, or could have been so assessed. (4) The “reckonable date” is taken to be the latest date by which a non- UK return was required to be made for the tax period to which the amount assessed relates. (5) Where section 74(1) or (2) (interest on VAT recovered or recoverable by assessment) applies in relation to an amount assessed under section 73(3A) (treated as inserted by paragraph 17(2)), the “reckonable date” for the purposes of section 74(1) or (2) is taken to be the day after the end of the tax period referred to in paragraph 27(2). (21) (1) A person who is required to make a relevant special scheme return for a tax period is regarded for the purposes of this paragraph and paragraph 22 as being in default in respect of that period if either— (a) conditions 1A and 2A are met, or (b) conditions 1B and 2B are met, (but see also paragraph 23). (2) The conditions are as follows— (a) condition 1A is that the tax authorities for the administering member State have not received the return by the deadline for submitting it; (b) condition 2A is that those tax authorities have, in accordance with Article 60a of the Implementing Regulation, issued a reminder of the obligation to submit the return; (c) condition 1B is that, by the deadline for submitting the return, those tax authorities have received the return but have not received the amount of VAT shown on the return as payable by the person in respect of the tax period; (d) condition 2B is that those tax authorities have, in accordance with Article 60a of the Implementing Regulation, issued a reminder of the VAT outstanding. (3) The Commissioners may serve on a person who is in default in respect of a tax period a notice (a “special surcharge liability notice”) specifying a period— (a) ending on the first anniversary of the last day of that tax period, and (b) beginning on the date of the notice. (4) A period specified under sub-paragraph (3) is a “special surcharge period”. (5) If a special surcharge liability notice is served in respect of a tax period which ends on or before the day on which an existing special surcharge period ends, the special surcharge period specified in that notice must be expressed as a continuation of the existing special surcharge period (so that the existing period and its extension are regarded as a single special surcharge period). (22) (1) If a person on whom a special surcharge liability notice has been served— (a) is in default in respect of a tax period ending within the special surcharge period specified in (or extended by) that notice, and (b) has outstanding special scheme VAT for that tax period, the person is to be liable to a surcharge of the amount given by sub-paragraph (2). (2) The surcharge is equal to whichever is the greater of— (a) £30, and (b) the specified percentage of the person's outstanding special scheme VAT for the tax period. (3) The specified percentage depends on whether the tax period is the first, second or third etc period in respect of which the person is in default and has outstanding special scheme VAT, and is— (a) for the first such tax period, 2%; (b) for the second such tax period, 5%; (c) for the third such tax period, 10%; (d) for each such tax period after the third, 15%. (4) “Special scheme VAT”, in relation to a person, means VAT that the person is liable to pay to the tax authorities for the administering member State under a special scheme in respect of qualifying supplies of goods treated as made in the United Kingdom. (5) A person has “outstanding special scheme VAT” for a tax period if some or all of the special scheme VAT for which the person is liable in respect of that period has not been paid by the deadline for the person to submit a special scheme return for that period (and the amount unpaid is referred to in sub-paragraph (2)(b) as “the person's outstanding special scheme VAT” for the tax period). (23) (1) A person who would otherwise have been liable to a surcharge under paragraph 22(1) is not to be liable to the surcharge if the person satisfies the Commissioners or, on appeal, the tribunal that, in the case of a default which is material to the surcharge— (a) the special scheme return or, as the case may be, the VAT shown on that return, was despatched at such a time and in such manner that it was reasonable to expect that it would be received by the tax authorities for the administering member State within the appropriate time limit, or (b) there is a reasonable excuse for the return or the VAT not having been so despatched. (2) Where sub-paragraph (1) applies to a person— (a) the person is treated as not having been in default in respect of the tax period in question, and (b) accordingly, any special surcharge liability notice the service of which depended on that default is regarded as not having been served. (3) A default is “material” to a surcharge if— (a) it is the default which gives rise to the surcharge, under paragraph 22(1), or (b) it is a default which was taken into account in the service of the special surcharge liability notice on which the surcharge depends and the person concerned has not previously been liable to a surcharge in respect of a tax period ending within the special surcharge period specified in or extended by that notice. (4) A default is left out of account for the purposes of paragraphs 21(3) and 22(1) if— (a) the conduct by virtue of which the person is in default is also conduct falling within section 69(1) (breaches of regulatory provisions), and (b) by reason of that conduct the person concerned is assessed to a penalty under that section. (5) If the Commissioners, after consultation with the Treasury, so direct, a default in respect of a tax period specified in the direction is to be left out of account for the purposes of paragraphs 21(3) and 22(1). (6) Section 71(1) (meaning of “reasonable excuse”) applies for the purposes of this paragraph as it applies for the purposes of sections 59 to 70. (24) (1) Section 78 (interest in certain cases of official error) applies as follows in relation to a case where, due to an error on the part of the Commissioners— (a) a person has accounted under a special scheme for an amount by way of UK VAT that was not UK VAT due from the person, and as a result the Commissioners are liable under paragraph 25 to pay (or repay) an amount to the person, or (b) (in a case not falling within paragraph (a)), a person has paid, in accordance with an obligation under a special scheme, an amount by way of UK VAT that was not UK VAT due from the person and which the Commissioners are in consequence liable to repay to the person. (2) Section 78 has effect as if the condition in section 78(1)(a) were met in relation to that person. (3) In the application of section 78 as a result of this paragraph, section 78(12)(b) is read as providing that any reference in that section to a return is to a return required to be made under a non-UK special scheme. (4) In section 78, as it applies as a result of this section, “output tax” has the meaning that expression would have if the reference in section 24(2) to a “taxable person” were to a “person”. (25) (1) A person may make a claim if the person— (a) has made a special scheme return for a tax period relating wholly or partly to qualifying supplies of goods treated as made in the United Kingdom, (b) has accounted to the tax authorities for the administering member State for VAT in respect of those supplies, and (c) in doing so has brought into account as UK VAT due to those authorities an amount (“the overpaid amount”) that was not UK VAT due to them. (2) A person may make a claim if the person has, as a participant in a special scheme, paid (to the tax authorities for the administering member State or to the Commissioners) an amount by way of UK VAT that was not UK VAT due (“the overpaid amount”), otherwise than in the circumstances mentioned in sub-paragraph (1)(c). (3) A person who is or has been a participant in a special scheme may make a claim if the Commissioners— (a) have assessed the person to VAT for a tax period, and (b) in doing so, have brought into account as VAT an amount (“the amount not due”) that was not VAT due. (4) Where a person makes a claim under sub-paragraph (1) or (2), the Commissioners must repay the overpaid amount to the person. (5) Where a person makes a claim under sub-paragraph (3), the Commissioners must credit the person with the amount not due. (6) Where— (a) as a result of a claim under sub-paragraph (3) an amount is to be credited to a person, and (b) after setting any sums against that amount under or by virtue of this Act, some or all of the amount remains to the person's credit, the Commissioners must pay (or repay) to the person so much of the amount as remains to the person's credit. (7) The reference in sub-paragraph (1) to a claim is to a claim made— (a) by correcting, in accordance with Article 61 of the Implementing Regulation, the error in the special scheme return mentioned in sub-paragraph (1)(a), or (b) (after the expiry of the period during which the special scheme return may be amended under Article 61) to the Commissioners. (8) Sub-paragraphs (1) and (2) do not require any amount to be repaid except to the extent that is required by Article 63 of the Implementing Regulation. (26) (1) In section 80 (credit for, or repayment of, overstated or overpaid VAT), subsections (3) to (3C) (unjust enrichment) and (4A), (4C) and (6) (recovery by assessment of amounts wrongly credited) have effect as if— (a) a claim— (i) under paragraph 25(1) were a claim under section 80(1), (ii) under paragraph 25(2) were a claim under section 80(1B), and (iii) under paragraph 25(3) were a claim under section 80(1A); (b) references in that section to a prescribed accounting period included a tax period. (2) In section 80(3) to (3C), (4A), (4C) and (6), as modified by sub-paragraph (1), references to the crediting of amounts are to be read as including the payment of amounts. (3) The Commissioners are not liable to repay the overpaid amount on a claim made— (a) under paragraph 25(2), or (b) as mentioned in paragraph 25(7)(b), if the claim is made more than 4 years after the relevant date. (4) On a claim made under paragraph 25(3), the Commissioners are not liable to credit the amount not due if the claim is made more than 4 years after the relevant date. (5) The “relevant date” is— (a) in the case of a claim under paragraph 25(1), the end of the tax period mentioned in paragraph 25(1)(a), except in the case of a claim resulting from an incorrect disclosure; (b) in the case of a claim under paragraph 25(1) resulting from an incorrect disclosure, the end of the tax period in which the disclosure was made; (c) in the case of a claim under paragraph 25(2), the date on which the payment was made; (d) in the case of a claim under paragraph 25(3), the end of the quarter in which the assessment was made. (6) A person makes an “incorrect disclosure” where— (a) the person discloses to the tax authorities in question (whether the Commissioners or the tax authorities for the administering member State) that the person has not brought into account for a tax period an amount of UK VAT due for the period (“the disclosed amount”), (b) the disclosure is made in a later tax period, and (c) some or all of the disclosed amount is not in fact VAT due. (27) (1) This paragraph applies where— (a) a person makes a special scheme return for a tax period (“the affected tax period”) relating (wholly or partly) to a UK supply, and (b) after the return has been made the amount of the consideration for the UK supply increases or decreases. (2) The person must, in the tax period in which the increase or decrease is accounted for in the person's business accounts— (a) amend the special scheme return to take account of the increase or decrease, or (b) (if the period during which the person is entitled under Article 61 of the Implementing Regulation to amend the special scheme return has expired) notify the Commissioners of the adjustment needed to the figures in the special scheme return because of the increase or decrease. (3) Where the change to which an amendment or notice under sub-paragraph (2) relates is an increase in the consideration for a UK supply, the person must pay to the tax authorities for the administering member State (in accordance with Article 62 of the Implementing Regulation) or, in a case falling within sub-paragraph (2)(b), the Commissioners, the difference between— (a) the amount of VAT that was chargeable on the supply before the increase in consideration, and (b) the amount of VAT that is chargeable in respect of the whole of the increased consideration for the supply. (4) Where the change to which an amendment or notice under sub-paragraph (2) relates is a decrease in the consideration for a UK supply, the amendment or notice has effect as a claim; and where a claim is made the Commissioners must repay any VAT paid by the person that would not have been VAT due from the person had the consideration for the supply always been the decreased amount. (5) The Commissioners may by regulations specify— (a) the latest time by which, and the form and manner in which, a claim or other notice under sub-paragraph (2)(b) must be given; (b) the latest time by which, and the form in which, a payment under sub-paragraph (3) must be made in a case within sub-paragraph (2)(b). (6) A payment made under sub-paragraph (3) in a case within sub-paragraph (2)(a) must be made before the end of the tax period referred to in sub-paragraph (2). (7) In this paragraph “UK supply” means a qualifying supply of goods that is treated as made in the United Kingdom. (28) Where a participant in a special scheme— (a) has submitted a special scheme return to the tax authorities for the administering member State, and (b) amends the return to take account of the writing-off as a bad debt of the whole or part of the consideration for a qualifying supply of goods that is treated as made in the United Kingdom, the amending of the return may be treated as the making of a claim to the Commissioners for the purposes of section 36(2) (bad debts: claim for refund of VAT). (29) Where a person corrects a special scheme return in a way that constitutes telling the tax authorities for the administering member State about— (a) an inaccuracy in the return, (b) a supply of false information, or (c) a withholding of information, the person is regarded as telling HMRC about that for the purposes of paragraph 9 of Schedule 24 to the Finance Act 2007 (reductions for disclosure). (30) Where a participant in a special scheme is liable to pay UK VAT to the tax authorities for the administering member State in accordance with the scheme, the UK VAT is regarded for the purposes of section 130(6) of the Finance Act 2008 (set-off) as payable to the Commissioners. (31) (1) A person may register as an IOSS representative for the purposes of the IOSS scheme if the person is established in Northern Ireland. (2) A person may not be represented by more than one IOSS representative at a time. (32) (1) Before a person (“R”) can be registered as an IOSS representative, R must provide to the Commissioners the information required by Article 369p(2) and (3) of the VAT Directive. (2) The Commissioners may by regulations or by means of a notice published by them make further provision about the registration of a person as an IOSS representative. (3) The provision that may be made under sub-paragraph (2) includes provision— (a) requiring the registration of the names of IOSS representatives against the names of the person (or persons) they represent in the register kept for the purposes of this Schedule; (b) imposing requirements to be met before a person may be registered in that register as an IOSS representative or before such registration may be cancelled; (c) making it the duty of an IOSS representative, for the purposes of registration, to notify the Commissioners, within such period as may be prescribed, that the representative's appointment has taken effect or has ceased to have effect; (d) allowing the Commissioners to refuse to register a person as an IOSS representative, or to cancel a person's registration as an IOSS representative, in such circumstances as may be specified in the regulations; (e) as to the manner and circumstances in which a person is to be appointed, or is to be treated as having ceased to be, an IOSS representative; (f) about the making or deletion of entries relating to IOSS representatives in the register kept for the purposes of this Schedule. (33) Where a person registered under the IOSS scheme (“P”) is represented by an IOSS representative (“R”), R— (a) may act on P's behalf in relation to the IOSS scheme, (b) must secure (where appropriate by acting on P's behalf) P's compliance with and discharge of the obligations and liabilities to which P is subject by virtue of or under this Schedule, and (c) is personally liable in respect of— (i) any failure to secure P's compliance with or discharge of any such obligation or liability, and (ii) anything done for purposes connected with acting on P's behalf, as if the obligations and liabilities imposed on P were imposed jointly and severally on R and P. (34) (1) Notwithstanding any provision in this Act to the contrary (apart from paragraph 1(1A) of Schedule 1 as it has effect in accordance with paragraph 7 of Schedule 9ZF), a participant in a special scheme is not required to be registered under this Act by virtue of making qualifying supplies of goods. (2) Where a participant in a special scheme (“the scheme participant”) makes relevant supplies, it is to be assumed for all purposes of this Act relating to the determination of— (a) whether or not VAT is chargeable under this Act on those supplies, (b) how much VAT is chargeable under this Act on those supplies, and (c) any other matter that the Commissioners may specify by regulations, that the scheme participant is registered under this Act. (3) Supplies of scheme services made by the scheme participant are “relevant supplies” if— (a) the value of the supplies must be accounted for in a special scheme return, and (b) the supplies are treated as made in the United Kingdom. (4) References in this Schedule to a person being registered under this Act do not include a reference to that person being registered under the IOSS scheme. (35) Where a person (“P”) who is registered under Schedule 1 or 1A solely by virtue of the fact that P makes or intends to make qualifying supplies of goods satisfies the Commissioners that P intends to apply for— (a) registration under this Schedule, or (b) identification under any provision of the law of a member State which implements Section 4 of Chapter 6 of Title XII of the VAT Directive, the Commissioners may, if P so requests, cancel P's registration under Schedule 1 or, as the case may be, 1A with effect from the day on which the request is made or from such later date as may be agreed between P and the Commissioners. (36) (1) A person who— (a) is a participant in a special scheme, and (b) is also registered, or required to be registered, under this Act, is not required to discharge any obligation placed on the person as a taxable person, so far as the obligation relates to relevant supplies unless the obligation is an input tax obligation. (2) The reference in sub-paragraph (1) to an obligation placed on the person as a taxable person is to an obligation— (a) to which the person is subject under or by virtue of this Act, and (b) to which the person would not be subject if the person were neither registered nor required to be registered under this Act. (3) A supply made by a participant in a special scheme is a “relevant supply” if— (a) the value of the supply must be accounted for in a return required to be made by the participant under the special scheme, and (b) the supply is treated as made in the United Kingdom. (4) In section 25(2) (deduction of input tax from output tax by a taxable person) the reference to output tax that is due from the taxable person does not include any VAT that the taxable person is liable under a special scheme to pay to the tax authorities for the administering member State. (5) In this paragraph, “input tax obligation” means an obligation imposed on a taxable person relating to a claim to deduct under section 25(2) or to the payment of a VAT credit. (37) No charge to VAT occurs on the importation of goods into the United Kingdom as a result of their entry into Northern Ireland, or their removal to Northern Ireland from Great Britain, where— (a) that importation is in the course of a supply of those goods which is a qualifying supply of goods, and (b) the person making the supply is registered under the IOSS scheme. (38) (1) Sub-paragraphs (3) and (4) apply (instead of sections 6 and 7) for the purposes of determining when and where a supply of goods within sub-paragraph (2) takes place. (2) A supply of goods is within this sub-paragraph where— (a) the supply of those goods is a qualifying supply of goods, (b) the supply is not facilitated by an online marketplace, (c) the person making the supply is registered under the IOSS scheme, and (d) the goods are supplied to a person in Northern Ireland or a member State. (3) The supply of goods is to be treated as taking place at the time when payment for the goods has been accepted, within the meaning of Article 61b of the Implementing Regulation. (4) The goods are to be treated as supplied— (a) in the case of goods supplied to a person in Northern Ireland, in the United Kingdom; (b) in the case of goods supplied to a person in a member State, in that member State. (39) (1) Sub-paragraph (2) applies (instead of section 6) to a supply of goods deemed to have taken place by section 5B(2)(a) or (b) as it has effect in accordance with paragraph 1B of Schedule 9ZC. (2) The supply of goods is to be treated as taking place at the time when payment for the goods has been accepted within the meaning of Article 41a of the Implementing Regulation. (3) Sub-paragraph (4) applies (instead of section 7) to a supply of goods deemed to have taken place by section 5B(2)(a) where the operator of the online marketplace that facilitated the supply of goods from P to R (within the meaning of that section) is registered under the IOSS scheme. (4) The supply of goods is to be treated as taking place outside the United Kingdom. (5) Sub-paragraph (6) applies (instead of section 7) to a supply of goods deemed to have taken place by section 5B(2)(b) where the operator of the online marketplace that facilitated the supply of goods from P to R (within the meaning of that section) is registered under the IOSS scheme. (6) The supply of goods is to be treated as taking place in the United Kingdom. (40) Section 48(1ZA) (VAT representatives) does not permit the Commissioners to direct a participant in a special scheme to appoint a VAT representative. (41) (1) Part 21 of the Value Added Tax Regulations 1995 (S.I. 1995/2518) has effect in relation to a person registered under the IOSS scheme as it applies to a trader (within the meaning of those Regulations) subject to the following modifications. (2) Regulation 186 (repayments of VAT) has effect as if after “imported by him into the United Kingdom” there were inserted “ by virtue of their entry into Northern Ireland ”. (3) That Part has effect as if regulations 187, 188(1) and 188(2)(b) were omitted (VAT representatives and persons to whom Part 21 applies). (42) (1) An appeal lies to the tribunal with respect to any of the following— (a) a refusal to register a person under the IOSS scheme; (b) the cancellation of the registration of any person under the IOSS scheme; (c) a refusal to make a repayment under paragraph 25 (overpayments), or a decision by the Commissioners as to the amount of a repayment due under that provision; (d) a refusal to make a repayment under paragraph 27(4) (decrease in consideration); (e) any liability to a surcharge under paragraph 22 (default surcharge). (2) Part 5 of this Act (reviews and appeals), and any order or regulations under that Part, have effect as if an appeal under this paragraph were an appeal which lies to the tribunal under section 83(1) (but not under any particular paragraph of that subsection). (3) Where the Commissioners have made an assessment under section 73 in reliance on paragraph 16 or 17— (a) section 83(1)(p)(i) (appeals against assessments under section 73(1) etc) applies as if the special scheme return were a return under this Act, and (b) the references in section 84(3) and (5) to the matters mentioned in section 83(1)(p) are to be read accordingly. (43) (1) In this Schedule— - “administering member State”, in relation to a special scheme, means the member State under whose law the scheme is established; - “the Implementing Regulation” means Council Implementing Regulation (EU) No 282/2011; - “IOSS scheme” has the meaning given by paragraph 1(a); - “IOSS scheme return” has the meaning given by paragraph 11(1); - “participant in a special scheme” means a person who— 1. is registered under the IOSS scheme, or 2. is identified under any provision of the law of a member State which implements Section 4 of Chapter 6 of Title XII of the VAT Directive; - “qualifying supply of goods” has the meaning given by paragraph 2; - “registration request” is to be construed in accordance with paragraph 5(1)(b); - “relevant special scheme return” has the meaning given by paragraph 16(3); - “reporting period” is to be read in accordance with paragraph 11(2); - “special scheme” means— 1. the accounting scheme under this Schedule, or 2. any other scheme, under the law of a member State, implementing Section 4 of Chapter 6 of Title XII of the VAT Directive; - “special scheme return” means— 1. an IOSS scheme return, or 2. a value added tax return submitted to the tax authorities of a member State; - “tax period” means— 1. a reporting period (under the accounting scheme under this Schedule), or 2. any other period for which a person is required to make a return under a special scheme; - “UK VAT” means VAT which a person is liable to pay (whether in the United Kingdom or a member State) in respect of qualifying supplies treated as made in the United Kingdom at a time when the person is or was a participant in a special scheme; - “value added tax return”, in relation to a member State, means any value added tax return required to be submitted under any provision of the law of that member State which implements Article 369s of the VAT Directive; - “the VAT Directive” means Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax. (2) References in this Schedule to qualifying supplies of goods being “treated as made”— (a) in the United Kingdom are to their being treated as made in the United Kingdom by paragraph 38 or 39; (b) in a member State are to their being treated as made in that member State by virtue of any provision of the law of that member State which gives effect to Article 33(c) of the VAT Directive. SCHEDULE 9ZF (1) This Act has effect subject to the following modifications. (2) In section 4 (scope of VAT on taxable supplies), after subsection (1) insert— (1A) But a person is not a “taxable person” for the purposes of subsection (1) merely by virtue of the person being registered under Schedule 9ZD (the OSS scheme). (3) (1) Section 76 (assessment of amounts due by way of penalty, interest or surcharge) has effect subject to the following modifications. (2) Subsection (1)(a) has effect as if for “or 59A,” there were substituted “ , section 59A, paragraph 28 of Schedule 9ZD or paragraph 22 of Schedule 9ZE, ”. (3) That section has effect as if after subsection (3) there were inserted— (3A) In the case of a surcharge under paragraph 28 of Schedule 9ZD or paragraph 22 of Schedule 9ZE, the assessment under this section is of an amount due in respect of “the relevant period”, that is to say, the tax period (see section 76A) in respect of which the person is in default and in respect of which the surcharge arises. (4) This Act has effect as if after section 76 there were inserted— (76A) (1) References in section 76 to a prescribed accounting period are to be read as including a tax period so far as that is necessary for the purposes of the references in section 76(1)(a) to paragraph 28 of Schedule 9ZD and paragraph 22 of Schedule 9ZE (assessment of surcharge in certain cases involving special accounting schemes). (2) References in section 77 to a prescribed accounting period are to be read accordingly. (3) In this section and section 76 “tax period” means a tax period as defined in paragraph 38 of Schedule 9ZD or paragraph 43 of Schedule 9ZE, as the case may be. (5) Section 80 (credit for, or repayment of, overstated or overpaid VAT) has effect as if in subsection (7), after “this section” there were inserted “ (and paragraph 31 of Schedule 9ZD and paragraph 25 of Schedule 9ZE) ”. (6) Section 84 (further provision about appeals) has effect as if in subsection (6), after “section 70” there were inserted “ or (as the case may be) paragraph 28 of Schedule 9ZD or paragraph 22 of Schedule 9ZE ”. (7) Schedule 1 (registration in respect of taxable supplies: UK establishment) has effect as if in paragraph 1 (liability to be registered), after sub-paragraph (1) there were inserted— (1A) Where the person is UK-established and registered under Schedule 9ZE, in determining the value of a person's supplies for the purpose of sub-paragraph (1), any qualifying supply of goods (within the meaning of that Schedule) made by the person that is treated as supplied in the United Kingdom by virtue of paragraph 38 of that Schedule is to be taken into account. (8) Schedule 1A (registration in respect of taxable supplies: non-UK establishment) has effect as if after paragraph 11 there were inserted— (12) Paragraphs 8 to 11 are subject to paragraph 18 of Schedule 9ZD and paragraph 35 of Schedule 9ZE (cancellation of registration of persons seeking to be registered under the Schedule concerned). (9) In Schedule 24 to FA 2007, Part 1 (error in taxpayer's document) has effect as if— (a) in the table, after the entry relating to a VAT return, statement or declaration in connection with a claim there were inserted—

VAT Return under a special accounting scheme. 
(b) before sub-paragraph (5) there were inserted—
  (4A) In this paragraph “*return under a special accounting scheme*” means any of the following, so far as relating to supplies of goods treated as made in the United Kingdom—
    (a) an OSS scheme return or a relevant non-UK return under Schedule 9ZD to VATA 1994 (see paragraphs 11 and 22(3) of that Schedule);
    (b) a relevant special scheme return under Schedule 9ZE to VATA 1994 (see paragraphs 11 and 16(3) of that Schedule).

(10) FA 2009 has effect subject to the following modifications. (11) Section 101 (late payment interest on sums due to HMRC) has effect as if after subsection (9) there were inserted— (10) The reference in subsection (1) to amounts payable to HMRC includes— (a) amounts of UK VAT payable under a non-UK scheme; (b) amounts of UK VAT payable under a special scheme; and references in Schedule 53 to amounts due or payable to HMRC are to be read accordingly. (11) In subsection (10)— (a) expressions used in paragraph (a) have the same meaning as in Schedule 9ZD to VATA 1994 (the OSS scheme); (b) expressions used in paragraph (b) have the same meaning as in Schedule 9ZE to VATA 1994 (the IOSS scheme). (12) Section 108 (suspension of penalties during currency of agreement for deferred payment) has effect as if in the table in subsection (5), in the entry relating to value added tax, in the second column, after “1994” there were inserted, “ or under paragraph 28 of Schedule 9ZD or paragraph 22 of Schedule 9ZE, to that Act ”. (13) (1) Section 54 of the Taxation (Cross-border Trade) Act 2018 (prohibition on collection of certain taxes or duties on behalf of country or territory without reciprocity) does not apply in relation to VAT collected by HMRC under Schedule 9ZD or 9ZE. (2) But sub-paragraph (1) is not to be read as having any bearing on whether or not, in the absence of that sub-paragraph, accounting for VAT collected under those Schedules would otherwise have been authorised. (14) The Value Added Tax Regulations 1995 (S.I. 1995/2518) have effect subject to the following modifications. (15) In Part 5A (reimbursement arrangements), regulation 43A (interpretation of Part 5A) has effect as if, in the definition of “claim”, after paragraph (a) there were inserted— (b) a claim made under paragraph 31 of Schedule 9ZD, or paragraph 25 of Schedule 9ZE, to the Act (claims which have effect for the purpose of section 80(3) of the Act as if they were section 80 claims). (16) (1) Part 19 (bad debt relief (the new scheme)) has effect subject to the following modifications. (2) Regulation 165 (interpretation of Part 19) has effect as if— (a) in the definition of “claim”, after “regulations 166” there were inserted “ or 166A ”; (b) in the definition of “return”, after “regulation 25” there were inserted “but “relevant non-UK return” has the meaning given by paragraph 22(3) of Schedule 9ZD to the Act and “relevant special scheme return” has the meaning given by paragraph 16(3) of Schedule 9ZE to the Act”; (c) at the appropriate place there were inserted— “tax period” has the meaning given by paragraph 38 of Schedule 9ZD or paragraph 43 of Schedule 9ZE (as the case may be) to the Act (3) Regulation 166 (the making of a claim to the Commissioners) has effect as if, at the beginning of paragraph (1) there were inserted “Subject to regulation 166A, and”. (4) That Part has effect as if after regulation 166 there were inserted— (166AA) (1) This regulation applies where the VAT on the relevant supply was accounted for on a relevant non-UK return or a relevant special scheme return. (2) Where this regulation applies, the claimant must make the claim by— (a) amending, in accordance with Article 61 of the Implementing Regulation, that relevant non-UK return or relevant special scheme return, or (b) (where the period during which a person is entitled to make such an amendment has expired) notifying the Commissioners of the claim in writing in English. (5) Regulation 168 (records required to be kept by the claimant) has effect as if after paragraph (3) there were inserted— (4) Where regulation 166AA applies, “prescribed accounting period” in this regulation is to be read as “tax period”. (6) Regulation 171 (repayment of a refund) has effect as if at— (a) at the beginning of paragraph (1) there were inserted “Subject to regulation 171A,”; (b) at the beginning of paragraph (2) there were inserted “Subject to regulation 171B,”; (c) at the beginning of paragraph (3) there were inserted “subject to regulation 171B and,”. (7) Those Regulations have effect as if after regulation 171 there were inserted— (171A) In a case falling within sub-paragraph (b)(iii) of regulation 171(1) where the VAT on the relevant supply was accounted for on a relevant non-UK return or a relevant special scheme return, the amount to be repaid is such an amount as is equal to the amount by which the VAT chargeable on the relevant supply is reduced. (171B) (1) Where— (a) the VAT on the relevant supply was accounted for on a relevant non-UK return or a relevant special scheme return, and (b) a repayment is required by regulation 171(1), that repayment must be made no later than twenty days after the end of the tax period in which the payment for the relevant supply is received or the reduction in consideration is accounted for in the claimant's business accounts. (2) Where— (a) the VAT on the relevant supply was accounted for on a relevant non-UK return or a relevant special scheme return, and (b) a repayment is required by regulation 171(3), that repayment must be made no later than twenty days after the end of the tax period in which the failure to comply first occurred. (3) In either case the repayment must be made by— (a) amending the relevant non-UK return or the relevant special scheme return for the tax period in which the VAT on the relevant supply was brought into account, or (b) (where the relevant period has expired) sending the sum due to the Commissioners. (4) In sub-paragraph (3)(b), the “relevant period” is the period of 3 years beginning with the day on which the relevant non-UK return or the relevant special scheme return for the tax period in which the VAT on the relevant supply was brought into account was required to be submitted. (17) (1) Part 20A of those Regulations (Repayments to EU traders incurring VAT on goods in Northern Ireland) has effect subject to the following modifications. (2) Regulation 184D has effect as if, in the alternative version of regulation 173B(2)(c), after “Northern Ireland” there were inserted “, unless it is a supply or importation— (a) that is a scheme supply for the purposes of Schedule 9ZD to the Act, and (b) that is made by a person who is registered under that Schedule when the supply is made”; (3) Regulation 184I has effect as if, in the alternative version of regulation 173L(2), after “Northern Ireland” there were inserted “, unless it is a supply— (a) that is a scheme supply for the purposes of Schedule 9ZD of the Act, and (b) that is made by a person who is registered under that Schedule when the supply is made”. (18) The Regulations have effect as if after regulation 213 there were inserted— (214) (1) In this Part— - “applicant” means a person making a registration request under paragraph 5 of Schedule 9ZD or paragraph 5 of Schedule 9ZE to the Act; - “principal VAT Directive” means Council Directive 2006/112/EC of 28 November on the common system of value added tax; - “relevant place” means Northern Ireland or a member State. (2) In regulations 215 and 216, references to a number allocated under Article 362 of the principal VAT Directive mean a number allocated at any time under that Article. (215) A registration request under paragraph 5 of Schedule 9ZD to the Act must contain details of— (a) any VAT identification number or tax reference number by which the applicant is identified for VAT purposes by any relevant place in accordance with Article 214, Article 239 or Article 240 of the principal VAT Directive, and the name of that relevant place, (b) any number previously allocated to the applicant by a member State or the United Kingdom under Article 362 of the principal VAT Directive, or otherwise for the purposes of Article 369d of the principal VAT Directive, and the name of that relevant place, (c) where the applicant has previously been identified under a non-UK scheme (within the meaning of Schedule 9ZD to the Act), the date the applicant ceased to be so identified, (d) whether the applicant is treated as a member of a group under any of sections 43A to 43D of the Act, and (e) the name of any relevant place in which the applicant has a fixed establishment, and the address of each such fixed establishment. (216) A registration request under paragraph 5 of Schedule 9ZE to the Act must contain details of— (a) any VAT identification number or tax reference number by which the applicant is identified for VAT purposes by any relevant place in accordance with Article 214, Article 239 or Article 240 of the principal VAT Directive, and the name of that relevant place, and (b) any number previously allocated to the applicant by a member State or the United Kingdom under Article 362 of the principal VAT Directive, or otherwise for the purposes of Article 369q of the principal VAT Directive, and the name of that relevant place. (217) A registration request under paragraph 5 of Schedule 9ZD or paragraph 5 of Schedule 9ZE to the Act must also contain a declaration by the applicant that the information the applicant has provided in the registration request is accurate and complete to the best of the applicant's knowledge. (218) The following communications must be made by using the electronic portal set up by the Commissioners for the purposes of implementing Sections 3 and 4 of Chapter 6 of Title XII to the principal VAT Directive— (a) a registration request under paragraph 5 of Schedule 9ZD or paragraph 5 of Schedule 9ZE to the Act; (b) the information required by paragraph 8 of Schedule 9ZD or paragraph 8 of Schedule 9ZE to the Act; (c) a return required under paragraph 11 of Schedule 9ZD or paragraph 11 of Schedule 9ZE to the Act. (219) In this Part, “tax period” has the meaning given by paragraph 38 of Schedule 9ZD or paragraph 43 of Schedule 9ZE (as the case may be) to the Act. (219A) (1) Any amendment to a return under a special accounting scheme for a tax period in which a relevant supply was brought into account must— (a) be made in a subsequent return under a special accounting scheme of the same type, (b) be made before the end of the period of three years beginning with the day on which the return for the tax period in which the relevant supply was brought into account was required to be submitted, and (c) include details of— (i) the member State in which the relevant supply was made; (ii) the tax period to which the amendment relates; (iii) the amount of VAT concerned. (2) In this regulation, “return under a special accounting scheme” means any of the following, so far as relating to supplies of goods treated as made in the United Kingdom— (a) an OSS scheme return or a relevant non-UK return under Schedule 9ZD to the Act (see paragraphs 11 and 22(3) of that Schedule); (b) an IOSS scheme return or a relevant special scheme return under Schedule 9ZE to VATA 1994 (see paragraphs 11 and 16(3) of that Schedule). (220) (1) In this regulation “notice” means a notice given under paragraph 25(3) of Schedule 9ZD or paragraph 19(3) of Schedule 9ZE to the Act. (2) A person giving a notice (P) must do so— (a) no later than 4 years after the end of the tax period in respect of which the return identified in the notice was required to be made; and (b) in writing in English. (3) P must also provide such documentary evidence in support of the notice as P possesses. (221) (1) A person making a claim under paragraph 31(1) of Schedule 9ZD, or paragraph 25(1) of Schedule 9ZE, to the Act must provide to the Commissioners at the time of making the claim a statement in writing in English explaining how the claim is calculated. (2) A person making a claim under any other provision of paragraph 31 of Schedule 9ZD, or paragraph 25 of Schedule 9ZE to the Act must— (a) make that claim to the Commissioners, and (b) provide to the Commissioners at the time of making the claim a statement in writing in English explaining how the claim is calculated. (222) (1) A claim or other notice made under paragraph 33(2)(b) of Schedule 9ZD or paragraph 27(2)(b) of Schedule 9ZE to the Act must be made in writing in English. (2) A person making a payment— (a) under paragraph 33(3) of Schedule 9ZD to the Act in a case falling within paragraph 33(2)(b) of that Schedule, or (b) under paragraph 27(3) of Schedule 9ZE to the Act in a case falling within paragraph 27(2)(b) of that Schedule, must do so no later than twenty days after the end of the tax period in which the increase in consideration is accounted for in the person's business accounts. (223) (1) Paragraph 19(1) of Schedule 9ZD to the Act is not to apply in the case of an input tax obligation. (2) In this regulation “input tax obligation” means an obligation imposed on a taxable person relating to a claim to deduction under section 25(2) of the Act or to payment of a VAT credit.

PART 3 — Omission of Part 2 of Schedule 9ZC to VATA 1994

7

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

PART 4 — Amendments relating to supplies of goods by persons established outside the United Kingdom that are facilitated by online marketplaces

8

(1B) This Act has effect as if after section 5A there were inserted— (5B) (1) This section applies where— (a) a person (“P”) makes a taxable supply of goods in the course or furtherance of a business to another person (“R”), (b) the supply is facilitated by an online marketplace, and (c) either the IOSS scheme condition or the Union goods condition is met. (2) For the purposes of this Act— (a) P is to be treated as having supplied the goods to the operator of the online marketplace, and (b) the operator is to be treated as having supplied the goods to R in the course or furtherance of a business carried on by the operator. (3) The IOSS scheme condition is met where— (a) R belongs in Northern Ireland and is not a taxable person, (b) the supply is a qualifying supply of goods within the meaning of Schedule 9ZE, and (c) the operator of the online marketplace is registered under that Schedule. (4) But the IOSS scheme condition is not met where— (a) P is established in the United Kingdom, and (b) the supply involves the removal of goods from Great Britain to Northern Ireland. (5) The Union goods condition is met where— (a) P is not established in Northern Ireland or a member State, (b) R either— (i) belongs in Northern Ireland and is not a taxable person, or (ii) belongs in a member State and is not liable or entitled to be registered for VAT in accordance with the law of that member State, and (c) the supply is a supply of Union goods that are located in Northern Ireland at the time they are supplied. (6) But the Union goods condition is not met where— (a) P is established in Great Britain, and (b) R belongs in Northern Ireland. (7) In this section, “Union goods” has the same meaning as in Regulation (EU) 952/2013 of the European Parliament and of the Council of 9 October 2013 laying down the Union Customs Code (see Article 5(23) of that Regulation).

(2A) In Part 2 of Schedule 8 (zero-rating: the groups), Group 21 (online marketplaces: deemed supply) has effect as if after Item 1 there were inserted— (2) A supply by a person not established in Northern Ireland or a member State that is deemed to be a supply to an operator of an online marketplace by virtue of section 5B (as it has effect in accordance with paragraph 1B of this Schedule).

(1A) Sub-paragraph (1) has effect as if at the start there were inserted “Subject to paragraph 6ZA,

.

(3A) Schedule 11 has effect as if after paragraph 6 there were inserted— (6ZA) (1) An operator of an online marketplace must preserve and make available records relating to a relevant taxable supply in accordance with the requirements of Article 242a of the VAT Directive and Article 54c of the Implementing Regulation. (2) In this paragraph— - “the Implementing Regulation” has the same meaning as in Schedule 9ZE; - “relevant taxable supply” means a supply of goods where that supply is deemed to be a supply by an operator of an online marketplace by virtue of section 5B (as it has effect in accordance with paragraph 1B of this Schedule); - “the VAT Directive” has the same meaning as in Schedule 9ZE. (3B) (1) Sub-paragraph (2) applies (instead of section 6) to a supply of goods deemed to have taken place by section 5B(2)(a) or (b) (as it has effect in accordance with paragraph 1B of this Schedule). (2) The supply of goods is to be treated as taking place at the time when payment for the goods has been accepted within the meaning of Article 41a of the Implementing Regulation. (3) In this paragraph, “the Implementing Regulation” has the same meaning as in Schedule 9ZE.

(5A) (1) In the Value Added Tax Regulations 1995 (S.I. 1995/2518), Part 3 (VAT invoices and other invoicing requirements) has effect subject to the following modifications. (2) In regulation 13 (obligation to provide a VAT invoice), paragraph (1C) has effect as if— (a) in sub-paragraph (a), after “section 5A” there were inserted “ or 5B (as it has effect in accordance with paragraph 1B of Schedule 9ZC to the Act) ”; (b) in sub-paragraph (b), after “section 7(5B) of” there were inserted “ , or paragraph 38 of Schedule 9ZE to, ”. (3) In regulation 13A (electronic invoicing), paragraph (5) has effect as if— (a) in sub-paragraph (a), after “section 5A” there were inserted “ or 5B (as it has effect in accordance with paragraph 1B of Schedule 9ZC to the Act) ”; (b) in sub-paragraph (b), after “section 7(5B) of” there were inserted “ , or paragraph 38 of Schedule 9ZE to, ”. (4) Regulation 16B (retailers' and simplified invoices: exceptions), has effect as if— (a) in sub-paragraph (a), after “section 5A” there were inserted “ or 5B (as it has effect in accordance with paragraph 1B of Schedule 9ZC to the Act) ”; (b) in sub-paragraph (b), after “section 7(5B) of” there were inserted “ , or paragraph 38 of Schedule 9ZE to, ”.

SCHEDULE 19

Definitions

1

In this Schedule—

Power to agree to further defer payment

2

No surcharge

3

No liability to a surcharge on a relevant VAT sum arises under section 59 of VATA 1994 (the default surcharge).

Penalty

4

Amount of penalty

5

The amount of the penalty under this Schedule is 5% of so much of the relevant VAT sum as has not been paid immediately before the day on which the amount due by way of penalty is assessed under paragraph 6(1).

Assessment of penalty

6

Payment of penalty

7

Recovery of penalty

8

Reviews and appeals

9

as if those matters were listed in section 83(1) of that Act.

Double jeopardy

10

A person is not liable to a penalty under this Schedule in respect of a failure in respect of which the person has been convicted of an offence.

Notifications etc

11

SCHEDULE 20

1

The Customs (Northern Ireland) (EU Exit) Regulations 2020 (S.I. 2020/1605) are amended in accordance with this Schedule.

Duty on certain steel products imported on or after 3 March 2021

2

(7A) (1) This regulation applies to goods if— (a) they are imported into the United Kingdom as a result of their entry into Northern Ireland, (b) they are not relevant goods, (c) they are not Union goods, (d) the origin of the goods (as determined in accordance with the provisions of Union customs legislation in force relating to non-preferential origin) is neither in the United Kingdom nor in the European Union, (e) they are declared, in accordance with Union customs legislation, for a procedure corresponding to the free-circulation procedure or the authorised use procedure, (f) they would (ignoring this regulation) have been subject to the EU steel safeguarding measure, and (g) if they had instead been imported into a member State they would have benefitted from tariff-rate quota in relation to that measure. (2) For the purpose of determining the amount of duty charged under section 30A(3) of the Act in respect of goods to which this regulation applies— (a) the EU steel regulation does not apply, and (b) the steel safeguards notice applies as if references to import duty were to duty charged under section 30A(3).

Duty on certain steel products imported before 3 March 2021

3

(7B) (1) This regulation applies to goods if— (a) they are imported into the United Kingdom as a result of their entry into Northern Ireland, (b) they are declared before 3 March 2021, in accordance with Union customs legislation, for a procedure corresponding to the free-circulation procedure or the authorised use procedure, (c) they are not relevant goods, (d) they are not Union goods, (e) the origin of the goods (as determined in accordance with the provisions of Union customs legislation in force relating to non-preferential origin) is neither in the United Kingdom nor in the European Union, (f) they would (ignoring this regulation) have been subject to an EU steel safeguarding measure, (g) if they had instead been imported into a member State they would have benefitted from tariff-rate quota in relation to that measure, and (h) they would not have been subject to a domestic steel safeguarding measure (whether they would have benefited from a quota or were otherwise not subject to the measure) if— (i) the goods had been declared for the free-circulation procedure or the authorised use procedure in Great Britain, and (ii) that declaration had been accepted at the same time as the actual declaration was accepted. (2) Where the person declaring the goods makes a relevant claim that is accepted by HMRC, the EU steel regulation does not apply for the purpose of determining the amount of duty charged under section 30A(3) of the Act in respect of the goods. (3) In this regulation “relevant claim” means a claim made in accordance with the procedure set out in the steel notice provided all conditions in that notice are complied with.

Duty on certain steel products removed to Northern Ireland on or after 3 March 2021

4

(13A) (1) This regulation applies to goods if— (a) they are removed to Northern Ireland from Great Britain, (b) they are declared, in accordance with Union customs legislation, for a procedure corresponding to the free-circulation procedure or the authorised use procedure, (c) they are not relevant goods, (d) they are not Union goods, (e) they are not domestic goods, (f) they are not goods to which regulation 11 applies, (g) the origin of the goods (as determined in accordance with the provisions of Union customs legislation in force relating to non-preferential origin) is neither in the United Kingdom nor in the European Union, (h) they would (ignoring this regulation) have been subject to an EU steel safeguarding measure, and (i) if they had instead been imported into a member State they would have benefitted from tariff-rate quota in relation to that measure. (2) For the purpose of determining the amount of duty charged under section 40A(1) of the Act in respect of goods to which this regulation applies— (a) the EU steel regulation does not apply, and (b) the steel safeguards notice applies as if references to import duty were to duty charged under section 40A(1).

Duty on certain steel products removed to Northern Ireland after IP completion day

5

(13B) (1) This regulation applies to goods if— (a) they are removed to Northern Ireland from Great Britain, (b) they are declared, in accordance with Union customs legislation, for a procedure corresponding to the free-circulation procedure or the authorised use procedure, (c) they are domestic goods, (d) they are not relevant goods, (e) they are not Union goods, (f) they are not goods to which regulation 11 applies, (g) the origin of the goods (as determined in accordance with the provisions of Union customs legislation in force relating to non-preferential origin) is neither in the United Kingdom nor in the European Union, (h) they would (ignoring this regulation) have been subject to an EU steel safeguarding measure, and (i) if they had instead been imported into a member State they would have benefitted from tariff-rate quota in relation to that measure. (2) Where the person declaring the goods makes a relevant claim that is accepted by HMRC, the EU steel regulation does not apply for the purpose of determining the amount of duty charged under section 40A(1) of the Act in respect of the goods. (3) In this regulation “relevant claim” means a claim— (a) made in accordance with a procedure specified in a notice given by HMRC Commissioners, or (b) if no such notice is in force, made in accordance with the procedure set out in the steel notice provided all conditions in that notice are complied with. (4) HMRC Commissioners may by notice provide that a person who makes a relevant claim of the type mentioned in paragraph (3)(a) must notify the Secretary of State of the making of the claim. (5) The notice may provide— (a) that specified information must be included in the notification to the Secretary of State; (b) for the form and manner in which such a notification must be given; (c) that such a notification must be given within such period as is specified in the notice. (6) A notice under paragraph (3)(a) or (4)— (a) must be published; (b) may be withdrawn; (c) may be amended from time to time. (13C) (1) This regulation applies to goods if— (a) they are removed to Northern Ireland from Great Britain, (b) they are declared before 3 March 2021, in accordance with Union customs legislation, for a procedure corresponding to the free-circulation procedure or the authorised use procedure, (c) they are not domestic goods, (d) they are not relevant goods, (e) they are not Union goods, (f) they are not goods to which regulation 11 applies, (g) the origin of the goods (as determined in accordance with the provisions of Union customs legislation in force relating to non-preferential origin) is neither in the United Kingdom nor in the European Union, (h) they would (ignoring this regulation) have been subject to an EU steel safeguarding measure, (i) if they had instead been imported into a member State they would have benefitted from tariff-rate quota in relation to that measure, and (j) they would not have been subject to a domestic steel safeguarding measure (whether they would have benefited from a quota or were otherwise not subject to the measure) if— (i) the goods had been declared for the free-circulation procedure or the authorised use procedure in Great Britain, and (ii) that declaration had been accepted at the same time as the actual declaration was accepted. (2) Where the person declaring the goods makes a relevant claim that is accepted by HMRC, the EU steel regulation does not apply for the purpose of determining the amount of duty charged under section 40A(1) of the Act in respect of the goods. (3) In this regulation “relevant claim” means a claim made in accordance with the procedure set out in the steel notice provided all conditions in that notice are complied with.

Interpretation

6

“domestic steel safeguarding measure” means an additional rate of duty payable as a result of the steel safeguards notice (and goods are subject to that measure if that additional rate is payable in respect of the goods);

;

“EU steel safeguarding measure” means an additional rate of duty payable as a result of Article 1 of the EU steel regulation (and goods are subject to that measure if that additional rate is payable in respect of the goods);

;

“EU steel regulation” means Commission Implementing Regulation (EU) 2019/159 as it may be amended, or replaced, from time to time;

;

“steel notice” means the notice on movements of steel into Northern Ireland published by HMRC on 3 March 2021;

;

“steel safeguards notice” means Taxation Notice 2020/06: safeguard measures on certain steel products – application of tariff rate quotas published on 30 September 2020 by the Secretary of State, as that notice may be amended, or replaced, from time to time;

.

Power to extend application of the regulations to other goods

7

Where provision inserted by this Schedule—

that power may (amongst other things) be exercised to make similar provision relating to other goods, including provision having retrospective effect provided any such retrospective provision does not impose or increase taxation.

SCHEDULE 21

1

HODA 1979 is amended as follows.

2

In section 6AA (excise duty on biodiesels), in subsection (2)—

(aa) for heating,

;

3
4

In section 6A (fuel substitutes), in subsection (2)—

(aa) for heating;

;

5
6
7
8

(a) be used as fuel for an excepted machine other than an excepted machine used for heating, or (b) be taken into the fuel supply of an excepted machine other than an excepted machine used for heating.

9

In section 13AB (penalty for contravention of section 13AA), in subsection (2), in the words before paragraph (a), omit “of an engine”.

10
11

(aa) omit sub-paragraph (ia);

;

12

, or (c) taken into the fuel supply of any engine that is not the engine of an excepted machine as fuel or as an additive or extender in any substance used as fuel.

13
14

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16
17
18

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19
20

“excepted machine” means a vehicle, vessel, machine or appliance that is of a description given in Schedule 1A;

;

(aa) in relation to an appliance that contains a furnace or boiler for use in a heating system, that furnace or boiler,

;

(b) an engine, furnace or boiler which draws fuel from the same supply as an engine or, as the case may be, furnace or boiler, within paragraph (a) or (aa).

, or (b) in relation to an appliance that contains a furnace or boiler for use in a heating system, from which the furnace or boiler draws fuel.

21

Omit Schedule 1 (excepted vehicles).

22

Before Schedule 2 insert—

SCHEDULE 1A (1) Any vehicle, vessel, machine or appliance of one of the following descriptions is an “excepted machine” for the purposes of this Act. (2) (1) An agricultural vehicle at a time when it is used for— (a) purposes relating to agriculture, horticulture, pisciculture or forestry, (b) cutting verges bordering public roads, (c) cutting hedges or trees bordering public roads or bordering verges which border public roads, or (d) clearing or otherwise dealing with frost, ice, snow or flooding, including when it is going to or from the place where it is to be or has been used for any of those purposes. (2) An agricultural vehicle that is used for any purpose on land where it is kept and used for purposes relating to agriculture, horticulture, pisciculture or forestry. (3) An agricultural vehicle kept and used on a golf course or on land maintained by a community amateur sports club. (4) An agricultural vehicle used in any other circumstances provided— (a) it is not being used on a public road, and (b) it uses fuel gas for fuel. (5) In this paragraph, “an agricultural vehicle” means— (a) a tractor; (b) a vehicle designed and constructed primarily for use otherwise than on roads which— (i) has a revenue weight not exceeding 1,000 kilograms, and (ii) is designed and constructed to seat only the driver; (c) any vehicle that is an exempt vehicle for the purposes of paragraph 20A of Schedule 2 to that Act (vehicles used for purposes relating to agriculture, horticulture or forestry); (d) any other vehicle designed and constructed to be used for purposes relating to agriculture, horticulture, pisciculture or forestry. (3) (1) A special vehicle at a time when it is used— (a) for purposes relating to agriculture, horticulture, pisciculture or forestry, including when it is going to or from the place where it is to be or has been used for such purposes, or (b) on a golf course or on land maintained by a community amateur sports club. (2) A special vehicle used in any other circumstances provided it uses fuel gas for fuel. (3) In this paragraph, a “special vehicle” is a vehicle of any weight but otherwise designed, constructed and used as mentioned in Part 4 of Schedule 1 to the Vehicle Excise and Registration Act 1994. (4) (1) An unlicensed vehicle at a time when it is used— (a) for purposes relating to agriculture, horticulture, pisciculture or forestry, (b) on a golf course or on land maintained by a community amateur sports club, or (c) on land occupied by a travelling fair or travelling circus. (2) An unlicensed vehicle used in any other circumstances provided it uses fuel gas for fuel. (3) In this paragraph, “unlicensed vehicle” means a vehicle that is— (a) unlicensed for the purposes of section 22(1D) of the Vehicle Excise and Registration Act 1994, (b) kept by a person who has complied with such requirements relating to the vehicle as are prescribed for the time being in regulations under that section, and (c) not used or kept on a public road. (5) Any vehicle designed to be operated on a railway within the meaning of section 67(1) of the Transport and Works Act 1992. (6) (1) Any vessel other than a vessel in Northern Ireland that is a private pleasure craft. (2) Any machine or appliance that is permanently on a vessel within sub-paragraph (1). (3) Any machine or appliance that is permanently on a private pleasure craft in Northern Ireland, but that draws fuel from a supply other than the supply from which the engine provided for propelling the private pleasure craft draws fuel. (4) In this paragraph, references to Northern Ireland do not include any of the territorial sea of the United Kingdom that is adjacent to Northern Ireland. (7) A machine designed only for mowing grass at a time when it is used on— (a) land maintained for purposes relating to agriculture, horticulture, pisciculture or forestry; (b) a golf course or on land maintained by a community amateur sports club; (c) land occupied by a travelling fair or travelling circus. (8) (1) A machine or appliance that is not a vehicle or vessel at a time when it is used— (a) for purposes relating to agriculture, horticulture, pisciculture or forestry; (b) on a golf course or on land maintained by a community amateur sports club; (c) to operate or maintain equipment in a travelling fair or travelling circus; (d) for heating, or to generate electricity, for premises that are not used for commercial purposes. (2) For the purposes of sub-paragraph (1)(d), caravans used for the accommodation of those who travel with a travelling fair or travelling circus are to be treated as premises that are not used for commercial purposes. (9) (1) In this Schedule— - “caravan” has the meaning given by section 29(1) of the Caravan Sites and Control of Development Act 1960; - “community amateur sports club” has the meaning given by section 658 of the Corporation Tax Act 2010; - “fair” means a fair consisting wholly or principally of the provision of amusements; - “fuel gas” means any substance which would be road fuel gas within the meaning given by section 5(1) if it were for use as fuel in a road vehicle; - “golf course” includes driving range (whether or not on the site of a golf course). (2) In this Schedule, references to a vehicle being used— (a) on a golf course, or (b) on land maintained by a community amateur sports club, include references, when two parts of the golf course or land are on either side of a road, to the vehicle going between the two parts by the shortest practicable route. (3) In this Schedule, a fair or circus is a travelling fair or circus if— (a) it is provided or operated wholly or principally by persons who travel from place to place for the purpose of providing or operating fairs or circuses, and (b) it is held at a place no part of which has been used for the provision of that fair or (as the case may be) circus on more than 27 days in the same calendar year.

23

(b) for “or vessels” substitute “ , vessels, machines or appliances ”;

;

(c) for “or vessel” substitute “ , vessel, machine or appliance ”

.

24

SCHEDULE 22

PART 1 — First-year allowance for plant and machinery

1

Part 2 of CAA 2001 (plant and machinery allowances) is amended as follows.

2

In section 39 (first-year allowances available for certain types of qualifying expenditure only), at the end insert—

section 45O expenditure on plant and machinery for use in freeport tax sites.
3

After section 45N insert—

(45O) (1) Expenditure incurred by a company on the provision of plant or machinery is first-year qualifying expenditure if conditions A to E are met. (2) Condition A is that the plant or machinery is for use primarily in an area which, at the time the expenditure is incurred, is a freeport tax site. (3) Condition B is that the plant or machinery is unused and is not second-hand. (4) Condition C is that the expenditure is incurred for the purposes of a qualifying activity within section 15(1)(a) or (f). (5) Condition D is that the expenditure is incurred on or before 30 September 2026. (6) Condition E is that the company is within the charge to corporation tax. (7) This section is subject to— - regulations under section 45P, - section 45Q (exclusion of plant or machinery partly for use outside freeport tax sites), - section 45R (effect of plant or machinery subsequently being primarily for use outside freeport tax sites), and - section 46 (general exclusions). (45P) (1) The Treasury may by regulations change the conditions that must be met in order for expenditure to be first-year qualifying expenditure under section 45O (whether by adding, removing or altering conditions). (2) Regulations under this section may not remove the requirement for the plant or machinery to be for use primarily in an area which, at the time the expenditure is incurred, is a freeport tax site. (3) Regulations under this section may, among other things— (a) make provision by reference to the expenditure, the plant or machinery, the company that incurred the expenditure or a person who is or has been connected with that company; (b) impose conditions relating to accounts or other records; (c) impose other conditions requiring a person to take steps specified in the regulations; (d) make different provision for different purposes; (e) include incidental, supplementary, consequential, transitional or transitory provision. (4) Regulations under this section— (a) may amend, repeal or otherwise modify section 45O and other provisions of this Part, and (b) where made under subsection (3)(e), may amend, repeal or otherwise modify other provisions of this Act or provisions of another Act. (45Q) (1) This section applies if— (a) at the time when expenditure on plant or machinery is incurred, the company incurring it intends the plant or machinery to be used partly in an area which is not a freeport tax site, and (b) the main purpose, or one of the main purposes, for which a person is party to the relevant arrangements is the obtaining of a first-year allowance, or a greater first-year allowance, in respect of the part of the expenditure that is attributable to that intended use in an area which is not a freeport tax site (the “non-freeport part” of the expenditure). (2) The non-freeport part of the expenditure is not first-year qualifying expenditure under section 45O. (3) For the purposes of this section, the non-freeport part of the expenditure is to be determined on a just and reasonable basis. (4) In this section, “the relevant arrangements” means— (a) the transaction under which the expenditure on the plant or machinery is incurred, and (b) any scheme or arrangements of which that transaction forms part. (45R) (1) Expenditure on the provision of plant or machinery is to be treated as never having been first-year qualifying expenditure under section 45O if, at any relevant time— (a) the primary use to which the plant or machinery is put is other than in an area which, at the time the expenditure was incurred, was a freeport tax site, or (b) the plant or machinery is held for use otherwise than primarily in an area which was a freeport tax site at that time. (2) “Relevant time” means a time within the relevant period when the plant or machinery is owned by— (a) the company that incurred the expenditure, or (b) a person who is, or at any time in that period has been, connected with that company. (3) “The relevant period” means the period of 5 years beginning with— (a) the day on which the plant or machinery in question is first brought into use for the purposes of a qualifying activity carried on by the company, or (b) if earlier, the day on which it is first held for such use. (4) All such assessments and adjustments of assessments are to be made as are necessary to give effect to subsection (1). (5) If a person who has made a return becomes aware that, after making it, anything in it has become incorrect because of the operation of this section, that person must give notice to an officer of Revenue and Customs specifying how the return needs to be amended. (6) The notice must be given within 3 months beginning with the day on which the person first became aware that anything in the return had become incorrect because of the operation of this section.

4

In section 46(1) (general exclusions applying to first-year qualifying expenditure), at the end insert—

section 45O (expenditure on plant and machinery for use in freeport tax sites).
5

In section 52(3) (amount of first-year allowances), in the Table, at the end insert—

Expenditure qualifying under section 45O (expenditure on plant and machinery for use in freeport tax sites) 100%

.

PART 2 — Structures and buildings allowances

6

Part 2A of CAA 2001 (structures and buildings allowances) is amended as follows.

7

(2A) The length of the period referred to in subsection (2)(b)(ii) is— (a) in the case of freeport qualifying expenditure, 10 years, and (b) in the case of other qualifying expenditure, 33 1/3 years.

— (a) in the case of freeport qualifying expenditure, 10% of the expenditure, and (b) in the case of other qualifying expenditure, 3% of the expenditure.

“freeport qualifying expenditure” has the meaning given by section 270BNA;

.

8

In section 270BJ (expenditure on renovation, conversion or incidental repairs), after subsection (2) insert—

(2A) For the purposes of subsection (1), in relation to a building or structure that has been brought into use at a time when the area in which the building or structure is situated was not a freeport tax site, section 270BNA(2) and (7) have effect as if the renovation or conversion of, or repairs to, part of the building or structure were the construction of that part for the first time.

9

In section 270BK(3) (preparation of sites), for “and 270AB” substitute “ , 270AB and 270BNA(2) and (7) ”.

10

After section 270BN insert—

(270BNA) (1) In this Part, qualifying expenditure incurred on the construction or acquisition of a building or structure is “freeport qualifying expenditure” if conditions A to E are met. (2) Condition A is that construction of the building or structure begins at a time when the area in which the building or structure is situated is a freeport tax site. (3) Condition B is that the building or structure is first brought into qualifying use by the person entitled to the allowance under this Part— (a) at a time when the area in which the building or structure is situated is a freeport tax site, and (b) on or before 30 September 2026. (4) Condition C is that the qualifying expenditure is incurred— (a) at a time when the area in which the building or structure is situated is a freeport tax site, and (b) on or before 30 September 2026. (5) Condition D is that the person who incurs the qualifying expenditure is within the charge to income tax or corporation tax when it is incurred. (6) Condition E is that an allowance statement— (a) made for the purposes of section 270IA by the person who incurred the qualifying expenditure, and (b) relied on for the purposes of the first valid claim for an allowance under this Part in respect of that expenditure, states that the person wants the expenditure to be freeport qualifying expenditure. (7) For the purposes of subsection (2), the construction of a building or structure is treated as beginning when the first contract for works to be carried out in the course of the construction of that particular building or structure (whether or not the contract also relates to the construction of other buildings or structures) is entered into. (8) This section is subject to regulations under section 270BNC. (270BNB) (1) Subsection (2) applies if, on the later of— (a) the day on which the building or structure is first brought into non-residential use, and (b) the day on which the qualifying expenditure is incurred, a building or structure is situated only partly in an area that is a freeport tax site. (2) Only so much of the qualifying expenditure as, on a just and reasonable apportionment, is attributable to the part situated in the freeport tax site is to be treated as freeport qualifying expenditure. (3) Subsection (4) applies if a building or structure is first brought into qualifying use by the person entitled to the allowance under this Part partly on or before 30 September 2026 and partly after that date. (4) Only so much of the qualifying expenditure as, on a just and reasonable apportionment, is attributable to the part first brought into qualifying use by that person on or before that date is to be treated as freeport qualifying expenditure. (270BNC) (1) The Treasury may by regulations change the conditions that must be met in order for qualifying expenditure to be “freeport qualifying expenditure” for the purposes of this Part (whether by adding, removing or altering conditions). (2) Regulations under this section— (a) may not remove the requirement for the building or structure to be situated in an area that is a freeport tax site, but (b) may alter the time when that requirement must be satisfied. (3) Regulations under this section may, among other things— (a) make provision by reference to the expenditure, the building or structure, the person who incurred the expenditure or a person who is or has been connected with that person; (b) impose conditions relating to accounts or other records; (c) impose other conditions requiring a person to take steps specified in the regulations; (d) make different provision for different purposes; (e) include incidental, supplementary, consequential, transitional or transitory provision. (4) Regulations under this section— (a) may amend, repeal or otherwise modify section 270BNA and other provisions of this Part, and (b) where made under subsection (3)(e), may amend, repeal or otherwise modify other provisions of this Act or provisions of another Act.

11

(3A) For the purposes of subsection (2), “the relevant percentage” means the percentage specified in section 270AA(5).

12

In section 270IA(4) (evidence of qualifying expenditure etc), after subsection (4) insert—

(5) Where the qualifying expenditure described in subsection (4)(b) consists of or includes freeport qualifying expenditure (as defined in section 270BNA), a statement is not an allowance statement unless it states the amount of the freeport qualifying expenditure.

PART 3 — Related amendments

TMA 1970

13

In section 98 of TMA 1970 (penalty for failure to provide information etc), in the second column of the Table, in the entry relating to CAA 2001, after “45G(4) and (5),” insert “ 45R(5) and (6), ”.

CAA 2001

14

CAA 2001 is amended as follows.

15

(2ZZA) Any claim for a first-year allowance under section 45O (expenditure on plant and machinery for use in freeport tax sites) must include, or be accompanied by, such information as Her Majesty's Revenue and Customs may require.

— (a)

, and

, and (b) where it relates to freeport qualifying expenditure (as defined in section 270BNA), must include, or be accompanied by, such information as Her Majesty's Revenue and Customs may require.

16

(4) An instrument containing regulations under section 45P or 270BNC must be laid before the House of Commons after being made. (5) If the regulations are not approved by the House of Commons before the end of the period of 28 days beginning with the day on which they are made, they cease to have effect at the end of that period (if they have not already ceased to have effect under subsection (6)). (6) If, on any day during that period of 28 days, the House of Commons, in proceedings on a motion that (or to the effect that) the regulations be approved, comes to a decision rejecting the regulations, they shall cease to have effect at the end of that day. (7) In reckoning any such period of 28 days, no account is to be taken of any time during which— (a) Parliament is prorogued or dissolved, or (b) the House of Commons is adjourned for more than four days. (8) Where regulations cease to have effect under subsection (6), their ceasing to have effect is without prejudice to anything done in reliance on them.

17

After section 573 insert—

(573A) In this Act, “freeport tax site” means an area for the time being designated under section 113 of the Finance Act 2021.

18

In Part 2 of Schedule 1 to CAA 2001 (defined expressions), at the appropriate place insert—

freeport tax site section 573A

.

SCHEDULE 23

1

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

2

After section 61 insert—

(61A) (1) Schedule 6C provides for relief in the case of transactions relating to land in a freeport tax site. (2) In that Schedule— (a) Part 1 contains definitions, (b) Part 2 makes provision about the relief, (c) Part 3 makes provision about the withdrawal of the relief, (d) Part 4 makes provision about cases involving alternative finance arrangements, and (e) Part 5 confers power to change the cases in which the relief is available. (3) Relief under that Schedule is available only in relation to a land transaction with an effective date falling on or before 30 September 2026. (4) Any relief under that Schedule must be claimed in a land transaction return or an amendment of such a return. (5) A claim for relief under that Schedule must— (a) be made on or before 14 October 2027, and (b) include, or be accompanied by, such information as HMRC may require. (6) In this section and Schedule 6C, “freeport tax site” means an area for the time being designated under section 113 of the Finance Act 2021.

3

In section 81 (further return where relief withdrawn)—

(aa) Part 3 of Schedule 6C (relief for freeport tax sites), other than in a case to which paragraph 11 of that Schedule (alternative finance arrangements) applies,

,

(eb) in the case of relief under Schedule 6C (relief for freeport tax sites), the last day in the control period on which the qualifying freeport land is used exclusively in a qualifying manner;

, and

(4A) Terms used in paragraph (eb) of subsection (1B) which are defined for the purposes of Schedule 6C have the same meaning in that paragraph as they have in that Schedule. (4B) Paragraph 10 of Schedule 6C applies for the purposes of subsection (1B)(eb) as it applies for the purposes of paragraph 8 of that Schedule.

4

In section 81ZA (alternative finance arrangements: return where relief withdrawn)—

(c) where the relief was given under Part 2 of Schedule 6C, the last day in the control period on which the qualifying freeport land is used exclusively in a qualifying manner.

, and

(6A) Terms used in paragraph (c) of subsection (3) which are defined for the purposes of Schedule 6C have the same meaning in that paragraph as they have in that Schedule (as modified by paragraph 11 of that Schedule). (6B) Paragraph 10 of Schedule 6C (as modified by paragraph 11 of that Schedule) applies for the purposes of subsection (3)(c) as it applies for the purposes of paragraph 8 of that Schedule.

5

In section 85(3) (liability for tax), after “arrangements)” insert “ or under Part 3 of Schedule 6C (relief for freeport tax sites) in a case to which paragraph 11 of that Schedule (alternative finance arrangements) applies ”.”

6

In section 86 (payment of tax)—

(zb) Part 3 of Schedule 6C (relief for freeport tax sites), other than in a case to which paragraph 11 of that Schedule (alternative finance arrangements) applies,

, and

7

In section 87(3) (interest on unpaid tax), after paragraph (aza) insert—

(azaa) in the case of an amount payable because relief is withdrawn under Part 3 of Schedule 6C (relief for freeport tax sites), other than in a case to which paragraph 11 of that Schedule (alternative finance arrangements) applies, the date which is the relevant date for the purposes of section 81(1A); (azab) in the case of an amount payable because relief is withdrawn under Part 3 of Schedule 6C (relief for freeport tax sites) in a case to which paragraph 11 of that Schedule (alternative finance arrangements) applies, the date which is the date of the disqualifying event for the purposes of section 81ZA (see subsection (3) of that section);

.

8

After Schedule 6B insert—

SCHEDULE 6C (1) In this Schedule, “transaction land”, in relation to a land transaction, means land a chargeable interest in which is the subject matter of the transaction. (2) For the purposes of this Schedule, transaction land is “qualifying freeport land” if, on the effective date of the transaction— (a) it is situated in a freeport tax site, and (b) the purchaser intends it to be used exclusively in a qualifying manner. (3) (1) For the purposes of this Schedule, transaction land is used in a qualifying manner if— (a) it is used by the purchaser or a connected person in the course of a commercial trade or profession, (b) it is developed or redeveloped by the purchaser or a connected person for use (by any person) in the course of a commercial trade or profession, (c) it is exploited by the purchaser or a connected person, in the course of a commercial trade or profession, as a source of rents or other receipts (other than excluded rents), or (d) it is used in two or more of the ways described in paragraphs (a) to (c). (2) But land is not used in a qualifying manner to the extent that it is— (a) used as a dwelling or as the garden or grounds of a dwelling, (b) developed or redeveloped to become residential property, (c) exploited as a source of rents or other receipts payable by a person using the land as a dwelling or as the garden or grounds of a dwelling, or (d) held (as stock of the business) for resale without development or redevelopment. (3) For the purposes of this paragraph, use of land in the course of a commercial trade or profession includes use of land for a purpose that is ancillary to the use of other land which— (a) is situated in a freeport tax site, and (b) is being used, or developed or redeveloped, in the course of a commercial trade or profession. (4) The references in sub-paragraph (2) to land used as the garden or grounds of a dwelling include a building or structure on the land. (5) The references in this paragraph to doing something in the course of a commercial trade or profession include doing something in the course of a property rental business. (6) In this paragraph— - “commercial”, in relation to a trade or profession, means carried on— 1. on a commercial basis, and 2. with a view to profit; - “excluded rents” has the same meaning as in section 133 of the Finance Act 2013; - “property rental business” means a property business as defined in Chapter 2 of Part 3 of the Income Tax (Trading and Other Income) Act 2005. (4) (1) In this Schedule, “connected person” means a person who is connected with the purchaser. (2) Section 1122 of the Corporation Tax Act 2010 (connected persons) has effect for the purposes of this paragraph. (5) (1) This paragraph applies to a land transaction if at least 90% of the chargeable consideration for the transaction is attributable to qualifying freeport land. (2) The transaction is exempt from charge. (6) (1) This paragraph applies to a land transaction if the proportion of the chargeable consideration for the transaction that is attributable to qualifying freeport land (“the relevant proportion”) is less than 90% but at least 10%. (2) The tax chargeable in respect of the transaction is reduced by the relevant proportion. (7) (1) For the purposes of this Schedule, the consideration attributable to qualifying freeport land must be determined on a just and reasonable basis. (2) Sub-paragraphs (3) and (4) apply if less than 100% of the chargeable consideration attributable to transaction land situated in a freeport tax site (“the freeport consideration”) is attributable to land that satisfies the condition in paragraph 2(b). (3) If at least 90% of the freeport consideration is attributable to land that satisfies the condition in paragraph 2(b) then, for the purposes of this Schedule, all of the freeport consideration is to be treated as being attributable to qualifying freeport land. (4) If less than 10% of the freeport consideration is attributable to land that satisfies the condition in paragraph 2(b) then, for the purposes of this Schedule, all of the freeport consideration is to be treated as not being attributable to qualifying freeport land. (8) (1) This paragraph applies where relief under Part 2 of this Schedule has been allowed in respect of a land transaction. (2) The relief is withdrawn if, at any time during the control period, the qualifying freeport land is not used exclusively in a qualifying manner. (3) But the relief is not withdrawn where, because of a change in circumstances that is unforeseen and beyond the purchaser's control, it is not reasonable to expect the qualifying freeport land to be used exclusively in a qualifying manner at that time. (4) Where, at a time during the control period, the use of all or part of the qualifying freeport land in a qualifying manner has not yet begun, that land, or that part of the land, is to be treated as being used exclusively in a qualifying manner if reasonable steps are being taken to ensure that it is used in that manner. (5) Where, at a time during the control period, the use of all or part of the qualifying freeport land in a qualifying manner has ceased, that land, or that part of the land, is to be treated as being used exclusively in a qualifying manner if reasonable steps are being taken— (a) to ensure that it is used in that manner, or (b) to dispose of all chargeable interests in that land, or that part of the land, that are held by the purchaser and connected persons in a timely manner. (9) (1) In this Schedule, “the control period”, in relation to a land transaction, means the shorter of— (a) the period of three years beginning with the effective date of that transaction, and (b) the period beginning with the effective date of that transaction and ending with the effective date of the final transaction. (2) For the purposes of this paragraph, a land transaction is “the final transaction” if, immediately after the effective date of the transaction, neither the purchaser nor a connected person holds a chargeable interest in the qualifying freeport land (whether as a result of that transaction alone or as a result of that transaction and other land transactions). (10) (1) This paragraph applies where the purchaser ceases to hold a chargeable interest in part of the qualifying freeport land during the control period. (2) The references in paragraphs 8 and 9 to the qualifying freeport land are to be treated as references only to the part of the qualifying freeport land in relation to which the purchaser still holds a chargeable interest (whether the chargeable interest acquired in the land transaction in respect of which relief was allowed under Part 2 of this Schedule or another chargeable interest). (11) (1) This paragraph applies where either of the following applies— (a) section 71A (land sold to financial institution and leased to person), or (b) section 73 (land sold to financial institution and re-sold to person). (2) This paragraph applies for the purposes of determining— (a) whether relief is available under Part 2 of this Schedule for the first transaction, and (b) whether relief allowed for the first transaction is withdrawn under Part 3 of this Schedule. (3) For those purposes this Schedule has effect as if— (a) references to the purchaser were references to the relevant person, and (b) the reference in paragraph 3(2)(d) to land held (as stock of the business) for resale without development or redevelopment were a reference to land held in that manner by the relevant person. (4) The first transaction does not qualify for relief under Part 2 of this Schedule except where it does so by virtue of this paragraph. (5) In this paragraph— - “the first transaction” has the same meaning as in section 71A or 73 (as appropriate); - “the relevant person” means the person, other than the financial institution, who entered into the arrangements mentioned in section 71A(1) or 73(1) (as appropriate). (12) (1) The Treasury may by regulations— (a) amend the meaning of “qualifying freeport land”, (b) add other conditions that must be met in order for relief to be available under this Schedule, and (c) amend or remove conditions added under paragraph (b). (2) Regulations under this paragraph may not remove the requirement for land to be situated in a freeport tax site. (3) Regulations under this paragraph may, among other things— (a) make provision by reference to the land, the land transaction, the purchaser or connected persons; (b) impose conditions relating to accounts or other records; (c) impose other conditions requiring a person to take steps specified in the regulations. (4) Regulations under this paragraph— (a) may amend, repeal or otherwise modify provisions of this Schedule, and (b) where made in reliance on section 114(6)(c), may amend, repeal or otherwise modify other provisions of this Act. (13) (1) An instrument containing regulations under paragraph 12 must be laid before the House of Commons after being made. (2) If the regulations are not approved by the House of Commons before the end of the period of 28 days beginning with the day on which they are made, they cease to have effect at the end of that period (if they have not already ceased to have effect under sub-paragraph (3)). (3) If, on any day during that period of 28 days, the House of Commons, in proceedings on a motion that (or to the effect that) the regulations be approved, comes to a decision rejecting the regulations, they shall cease to have effect at the end of that day. (4) In reckoning any such period of 28 days, no account is to be taken of any time during which— (a) Parliament is prorogued or dissolved, or (b) the House of Commons is adjourned for more than four days. (5) Where regulations cease to have effect under sub-paragraph (3), their ceasing to have effect is without prejudice to anything done in reliance on them.

SCHEDULE 24

PART 1 — Introduction

Introduction

1

Returns

2
Item Tax Groups of returns Groups of returns Groups of returns
Column A (groups of annual etc returns) Column B (groups of quarterly etc returns) Column C (groups of monthly etc returns)
1 Income tax or capital gains tax (persons other than trustees or partnerships) This group applies where there is no requirement to provide information under regulations under paragraph 7 of Schedule A1 to TMA 1970.Return under section 8 of TMA 1970Accounts, statement or document required under section 8(1AB)(b) of TMA 1970 This group applies where there is a requirement to provide information under regulations under paragraph 7 of Schedule A1 to TMA 1970.Return under section 8 of TMA 1970Accounts, statement or document required under section 8(1AB)(b) of TMA 1970Statement under regulations under paragraph 8 of Schedule A1 to TMA 1970Information required to be provided under regulations under paragraph 7 of Schedule A1 to TMA 1970 -
2 Income tax or capital gains tax (trustees) This group applies where there is no requirement to provide information under regulations under paragraph 7 of Schedule A1 to TMA 1970.Return under section 8A of TMA 1970Accounts, statement or document required under section 8A(1AB)(b) of TMA 1970 This group applies where there is a requirement to provide information under regulations under paragraph 7 of Schedule A1 to TMA 1970.Return under section 8A of TMA 1970Accounts, statement or document required under section 8A(1AB)(b) of TMA 1970Statement under regulations under paragraph 8 of Schedule A1 to TMA 1970Information required to be provided under regulations under paragraph 7 of Schedule A1 to TMA 1970 -
3 Income tax or corporation tax (partnerships) This group applies where there is no requirement to provide information under regulations under paragraph 7 of Schedule A1 to TMA 1970.Return under section 12AA(2)(a) or (3)(a) of TMA 1970Accounts, statement or document required under section 12AA(2)(b) or (3)(b) of TMA 1970 This group applies where there is a requirement to provide information under regulations under paragraph 7 of Schedule A1 to TMA 1970.Return under regulations under paragraph 10 of Schedule A1 to TMA 1970Information required to be provided under regulations under paragraph 7 of Schedule A1 to TMA 1970 -
4 Value added tax 1Return under regulation 50 of the Value Added Tax Regulations 1995 (S.I. 1995/2518) for a current accounting year2Return under regulation 25(1)(c) of those regulations for a period which is more than 20 weeks, and is the period for which returns are (or are to be) usually made by the person in question 1Return under regulation 25(1) of the Value Added Tax Regulations 1995 (S.I. 1995/2518), other than a return under regulation 25(1)(a), (b) or (c)2Return under regulation 25(1)(c) of those regulations for a period which is more than 8 weeks but not more than 20 weeks, and is the period for which returns are (or are to be) usually made by the person in question 1Return under regulation 25(1)(a) of the Value Added Tax Regulations 1995 (S.I. 1995/2518)2Return under regulation 25(1)(c) of those regulations for a period which is not more than 8 weeks, and is the period for which returns are (or are to be) usually made, or a period for which returns are (or are to be) regularly made, by the person in question

Interpretation

3

Application of Schedule to persons with multiple businesses etc

4

PART 2 — Liability to a penalty

Liability to penalty points

5

sub-paragraph (3) is to be read in relation to that digital reporting sub-group as if references to a month were references to a calendar quarter.

Award of penalty points

6

Expiry of individual penalty points

7

Expiry of all penalty points for a group of returns

8

Penalty points: effect of moving between groups of returns

9

(for example, where a person ceases to be required to make returns in group 1A and instead becomes required to make returns in group 1B).

10
Column in which old group of returns falls Column in which new group of returns falls Adjustment
Column A Column B Add 2 penalty points
Column A Column C Add 3 penalty points
Column B Column A Deduct 2 penalty points
Column B Column C Add 1 penalty point
Column C Column A Deduct 3 penalty points
Column C Column B Deduct 1 penalty point
11
12
13

Penalty points: effect of change of representative member of VAT group

14

Liability to penalties

15

sub-paragraph (5) is to be read in relation to that digital reporting sub-group as if references to a month were references to a calendar quarter.

Assessments

16

Time limit for assessments

17

(But see sub-paragraphs (7) and (8).)

Power to amend figures by regulations

18

PART 3 — Supplementary provision

Reasonable excuse

19

Double jeopardy

20

A person is not liable to a penalty point or a penalty under this Schedule in respect of a failure in respect of which the person has been convicted of an offence.

Withdrawal of notice to make a return

21

Appeals

22

A person may appeal against a decision of HMRC under this Schedule—

23
24

Partnerships

25

Settlements

26

SCHEDULE 25

PART 1 — Introduction

Introduction

1
Tax to which return relates Return
1 Income tax or capital gains tax 1Return under section 8 of TMA 19702Accounts, statement or document required under section 8(1AB)(b) of TMA 1970
2 Income tax or capital gains tax 1Return under section 8A of TMA 19702Accounts, statement or document required under section 8A(1AB)(b) of TMA 1970
3 Income tax or corporation tax 1Return under section 12AA(2)(a) or (3)(a) of TMA 19702Accounts, statement or document required under section 12AA(2)(b) or (3)(b) of TMA 1970
4 Income tax or corporation tax Return under regulations under paragraph 10 of Schedule A1 to TMA 1970

Interpretation

2

PART 2 — Liability to a penalty

Penalty for deliberately withholding information

3

Categories of information

4

Power to make changes relating to categories of information by regulations

5

Offshore transfers

6

Reductions for disclosure

7
8
Standard percentage Minimum percentage for prompted disclosure Minimum percentage for unprompted disclosure
70% 45% 30%
100% 60% 40%
105% 62.5% 40%
140% 80% 50%
150% 85% 55%
200% 110% 70%

Special reduction

9

Interaction with other penalties

10

Determination of penalty where no return made

11

Assessments

12

Supplementary assessments

13

Time limit for assessments

14

PART 3 — Supplementary provision

Double jeopardy

15

A person is not liable to a penalty under this Schedule in respect of a failure or action in respect of which the person has been convicted of an offence.

Withdrawal of notice to make a return

16

Appeals

17
18
19

Partnerships

20

Regulations: supplementary provision

21

SCHEDULE 26

PART 1 — Introduction

Introduction

1

This Schedule makes provision for penalties to be payable by a person who, in relation to a tax dealt with by one of the following tables, fails to pay an amount specified in column 2 of the table (“the tax due”) on or before the date specified in column 3 of the table (“the specified date”).

2

In this Schedule, “HMRC” means Her Majesty's Revenue and Customs.

Assessments and determinations in default of return

3

PART 2 — Liability to a penalty

No penalty if payment in full before end of 15 day period

4

No penalty is payable if—

(but see paragraph 7).

First penalty: tax remains due at end of 15 day period

5

(but see paragraph 7).

Meaning of “15 day time to pay condition” and “30 day time to pay condition”

6

First penalty: effect of breaking time to pay agreement

7

Second penalty: tax remains due at end of 30 day period

8

(but see paragraph 9).

Second penalty: effect of breaking time to pay agreement

9

Interpretation of Part 2

10

Power to amend figures by regulations

11

The Commissioners for HMRC may by regulations amend this Part of this Schedule so as to—

PART 3 — Supplementary provision

Reasonable excuse

12

Special reduction

13

Double jeopardy

14

A person is not liable to a penalty under this Schedule in respect of a failure in respect of which the person has been convicted of an offence.

Interaction with other penalties

15

In the application of the following provisions, no account is to be taken of a penalty under this Schedule—

Assessments

16
17

Time limit for assessments

18

Appeals

19
20
21

Regulations: supplementary provision

22

SCHEDULE 27

Taxes Management Act 1970

1

TMA 1970 is amended as follows.

2

For section 8B(8) (withdrawal of notice to file personal or trustee return) substitute—

(8) See paragraph 21 of Schedule 24 and paragraph 16 of Schedule 25 to the Finance Act 2021 as to the cancellation of liabilities under those Schedules by including provision in a notice under this section.

3

For section 12AAA(9) (withdrawal of notice to file partnership return) substitute—

(9) See paragraph 21 of Schedule 24 and paragraph 16 of Schedule 25 to the Finance Act 2021 as to the cancellation of liabilities under those Schedules by including provision in a notice under this section.

4

In section 49E (nature of review etc), after subsection (5) insert—

(5A) See section 49EA concerning additional conclusions a review can reach in the case of penalties under Schedule 24 to the Finance Act 2021.

5

After section 49E insert—

(49EA) (1) This section applies if— (a) notice of appeal has been given to HMRC under paragraph 22(b) of Schedule 24 to the Finance Act 2021 in respect of a penalty, and (b) HMRC are required to review the matter in question under section 49B or 49C (which apply to the appeal by virtue of paragraph 23(1) of that Schedule). (2) The review may also conclude that HMRC's view that the appellant was liable to any of the penalty points by virtue of which the appellant was liable to the penalty is to be— (a) upheld, or (b) cancelled. (3) Subsection (2) applies in relation to a penalty point even if the time limit for appealing against it expired before notice of appeal in respect of the penalty was given. (4) Subsection (2) does not apply in relation to a penalty point if— (a) it was concluded on an earlier review under section 49B or 49C that HMRC's view that the appellant was liable to the penalty point was to be upheld, or (b) HMRC's decision that the appellant was liable to the penalty point has been affirmed on appeal.

6

After section 49F insert—

(49FA) (1) If the conclusions of a review include conclusions reached by virtue of section 49EA and the conclusions of the review are final, sub-paragraphs (4) and (5) of paragraph 24 of Schedule 24 to the Finance Act 2021 apply but with the following modifications— (a) references to the appeal under paragraph 22(b) of that Schedule are to be read as references to the review under section 49B or 49C (as the case may be), (b) references to the tribunal are to be read as references to HMRC, and (c) references to cancelling a decision are to be read as references to concluding that HMRC's view is to be cancelled. (2) For the purposes of subsection (1) the conclusions of a review are to be treated as final only if the post-review period has ended and the appellant did not notify the appeal to the tribunal within that period. (3) In subsection (2) “post-review period” has the same meaning as in section 49G (see subsection (5) of that section).

7

In section 69 (recovery of penalty or interest), in subsection (1)—

(aa) penalties imposed under Schedule 26 to the Finance Act 2021;

;

8

In section 103ZA (disapplication of sections 100 to 103 in the case of certain penalties)—

(m) Schedule 24 to the Finance Act 2021 (penalties for failure to make returns etc), (n) Schedule 25 to that Act (penalties for deliberately withholding information), or (o) Schedule 26 to that Act (penalties for failure to pay tax).

9

(e) in relation to— (i) a penalty under Schedule 26 to the Finance Act 2021 (penalties for failure to pay tax), or (ii) interest under section 101 of the Finance Act 2009 on a penalty within sub-paragraph (i), the end of the specified date as defined in paragraph 1 of Schedule 26 to the Finance Act 2021;

.

Income and Corporation Taxes Act 1988

10

In section 824 of the Income and Corporation Taxes Act 1988 (repayment supplements: individuals and others), in subsection (1)—

Social Security Contributions and Benefits Act 1992

11

The Social Security Contributions and Benefits Act 1992 is amended as follows.

12

In section 11A (application of certain provisions of the Income Tax Acts in relation to Class 2 contributions under section 11(2)), after subsection (1)(ea) insert—

(eb) Schedules 24 and 25 to the Finance Act 2021 (penalties for failure to make returns etc or for deliberately withholding information);

.

13

In section 16(1) (application of Income Tax Acts and destination of Class 4 contributions), at the end of paragraph (e) insert

and (f) the provisions of Schedules 24 and 25 to the Finance Act 2021 (penalties for failure to make returns etc or for deliberately withholding information),

.

Social Security Contributions and Benefits (Northern Ireland) Act 1992

14

In section 11A of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (application of certain provisions of the Income Tax Acts in relation to Class 2 contributions under section 11(2)), after subsection (1)(ea) insert—

(eb) Schedules 24 and 25 to the Finance Act 2021 (penalties for failure to make returns etc or for deliberately withholding information);

.

Value Added Tax Act 1994

15

VATA 1994 is amended as follows.

16

In the italic heading before section 59, omit “Default surcharge and other”.

17

Omit sections 59 to 59B (default surcharge).

18

or (d) a person is awarded a penalty point or assessed to a penalty under Schedule 24 to the Finance Act 2021,

.

19

In section 71 (construction of sections 59 to 70), in the heading and in subsections (1) and (2), for “59” substitute “ 60 ”.

20
21

In section 77 (assessments: time limits and supplementary assessments), in subsections (2), (3) and (5), for “penalty, interest or surcharge” substitute “ penalty or interest ”.

22

In section 81 (interest given by way of credit and set-off of credits), in subsections (3)(b) and (3A)(c), for “penalty, interest or surcharge” substitute “ penalty or interest ”.

23

In section 83 (appeals), in subsection (1)—

24

In section 83F (nature of review etc), after subsection (5) insert—

(5A) See section 83FA concerning additional conclusions a review can reach in the case of penalties under Schedule 24 to the Finance Act 2021.

25

After section 83F insert—

(83FA) (1) This section applies if HMRC are required, by virtue of paragraph 23(1) of Schedule 24 to the Finance Act 2021, to undertake a review under section 83C or 83E of a penalty decision in respect of which an appeal lies under paragraph 22(b) of that Schedule. (2) The review may also conclude that HMRC's decision that P was liable to any of the penalty points by virtue of which P was liable to the penalty in respect of which the appeal lies is to be— (a) upheld, or (b) cancelled. (3) Subsection (2) applies in relation to a penalty point even if the time limit for appealing against it expired before the relevant date. (4) Subsection (2) does not apply in relation to a penalty point if— (a) it was concluded on an earlier review required to be undertaken under section 83C or 83E that HMRC's decision that P was liable to the penalty point was to be upheld, or (b) HMRC's decision that P was liable to the penalty point has been affirmed on appeal. (5) In subsection (3) “relevant date” has the same meaning as in section 83F(6) (see section 83F(7)).

26

After section 83FA (inserted by paragraph 25) insert—

(83FB) (1) If the conclusions of a review include conclusions reached by virtue of section 83FA and the conclusions of the review are final, sub-paragraphs (4) and (5) of paragraph 24 of Schedule 24 to the Finance Act 2021 apply but with the following modifications— (a) references to the appeal under paragraph 22(b) of that Schedule are to be read as references to the review required to be undertaken under section 83C or 83E (as the case may be), (b) references to the tribunal are to be read as references to HMRC, and (c) references to cancelling a decision are to be read as references to concluding that HMRC's decision is to be cancelled. (2) For the purposes of subsection (1) the conclusions of a review are to be treated as final only if the period specified in subsection (3)(b), (4)(b) or (5) of section 83G for appealing the reviewed decision has ended and no appeal has been made within that period.

27

In section 84 (further provisions relating to appeals), in subsection (6)—

28

In Schedule 13 (transitional provisions and savings), omit paragraph 14.

Income Tax (Trading and Other Income) Act 2005

29

ITTOIA 2005 is amended as follows.

30

In the italic heading before section 54, for “, interest and VAT surcharges” substitute “ and interest ”.

31

In section 54 (penalties, interest and VAT surcharges)—

32

In section 272 (application of trading income rules: GAAP), in the table in subsection (2), in the entry for section 54, in the second column, for “, interest and VAT surcharges” substitute “ and interest ”.

33

In section 272ZA (application of trading income rules: cash basis), in the table in subsection (1), in the entry for section 54, in the second column, for “, interest and VAT surcharges” substitute “ and interest ”.

34

In the italic heading before section 869, for “, interest and VAT surcharges” substitute “ and interest ”.

35

In section 869 (penalties, interest and VAT surcharges: non trades etc)—

Corporation Tax Act 2009

36

In section 1303 of CTA 2009 (penalties, interest and VAT surcharges)—

Finance Act 2009

37

FA 2009 is amended as follows.

38

In section 108 (suspension of penalties during currency of agreement for deferred payment), in subsection (5), in the Table, omit the entry for value added tax.

39
40

Finance Act 2012

41

In Schedule 38 to FA 2012 (tax agents: dishonest conduct), in paragraph 34(1)—

, or (d) Schedule 24 (penalties for failure to make returns etc) or Schedule 25 (penalties for deliberately withholding information) to FA 2021.

Finance Act 2013

42

In Schedule 43C to FA 2013 (penalty under section 212A: supplementary provision), in paragraph 8—

, or (e) Schedule 25 to FA 2021 (penalties for deliberately withholding information).

;

or (iv) paragraph 3(4)(c) of Schedule 25 to FA 2021,

;

or (iv) paragraph 3(4)(b) of Schedule 25 to FA 2021,

;

or (iv) paragraph 3(6)(c) of Schedule 25 to FA 2021,

;

or (iv) paragraph 3(6)(b) of Schedule 25 to FA 2021, and

.

Finance Act 2014

43

In section 212 of FA 2014 (aggregate penalties)—

, or (f) Schedule 25 to FA 2021 (penalties for deliberately withholding information).

;

or (iv) paragraph 3(4)(c) of Schedule 25 to FA 2021,

;

or (iv) paragraph 3(4)(b) of Schedule 25 to FA 2021,

;

or (iv) paragraph 3(6)(c) of Schedule 25 to FA 2021,

;

or (iv) paragraph 3(6)(b) of Schedule 25 to FA 2021, and

.

Finance Act 2015

44

, and (e) a penalty under paragraph 3 of Schedule 25 to FA 2021 (penalties for deliberately withholding information), where the tax at stake is income tax or capital gains tax.

(6) Where the original penalty is a penalty under paragraph 3 of Schedule 25 to FA 2021 for a failure to make a return or deliver a document specified in the table in paragraph 1 of that Schedule, the relevant time is, if the tax at stake is income tax or capital gains tax, the beginning of the tax year to which the return or document relates.

Finance Act 2016

45

FA 2016 is amended as follows.

46

In section 167 (simple assessments), omit subsections (3) and (4).

47

(e) a penalty under paragraph 3 of Schedule 25 to FA 2021 (penalties for deliberately withholding information) involving offshore activity.

or (d) the liability to tax which would have been shown on the return (within the meaning of Schedule 25 to FA 2021),

;

(5) In the case of a penalty under paragraph 3 of Schedule 25 to FA 2021 involving offshore activity, the potential lost revenue is the liability to tax which would have been shown in the return in question (within the meaning of that Schedule).

48

(4B) A penalty falls within this sub-paragraph if— (a) it is imposed under paragraph 3 of Schedule 25 to FA 2021 (penalties for deliberately withholding information), (b) it is imposed for the withholding of information involving an offshore matter or an offshore transfer, and (c) the tax at stake is (or includes) capital gains tax or asset-based income tax.

(4A) Where a standard offshore tax penalty is imposed under paragraph 3 of Schedule 25 to FA 2021 for a failure to make a return or deliver a document listed in the table in paragraph 1 of that Schedule, the tax year to which that penalty relates is, if the tax at stake is income tax or capital gains tax, the tax year to which the return or document relates.

49

In Schedule 23 (simple assessments), omit paragraph 9.

Finance Act 2017

50

In Schedule 4 to FA 2017 (pensions: offshore transfers), omit paragraph 20.

Finance (No. 2) Act 2017

51

In Schedule 18 to F(No.2)A 2017 (requirement to correct certain offshore tax non-compliance), in paragraph 15(2)(b), after “Schedule 55 to FA 2009” insert “ or of paragraph 11 of Schedule 25 to FA 2021, as the case may be ”.

SCHEDULE 28

PART 1 — Amendment of Chapter 2 of Part 4 of FA 2014

1

Chapter 2 of Part 4 of FA 2014 (follower notices) is amended as follows.

Additional penalty for unreasonable tax appeal

2

After section 208 (penalty if corrective action not taken in response to follower notice) insert—

(208A) (1) In the case of a follower notice given by virtue of section 204(2)(a) in relation to a tax enquiry into a return or claim made by P, this section applies where— (a) P makes a tax appeal addressed to the tribunal in relation to the return or claim, and (b) P is assessed to a penalty under section 208. (2) In the case of a follower notice given by virtue of section 204(2)(b) in relation to a tax appeal made by P, this section applies where— (a) the tax appeal is addressed to the tribunal, and (b) P is assessed to a penalty under section 208. (3) P is liable to pay a penalty (in addition to the penalty under section 208) if P or P's representative is found to have acted unreasonably in bringing or conducting relevant proceedings. (4) For the purposes of subsection (3), P or P's representative is found to have acted unreasonably in bringing or conducting relevant proceedings if (and only if) subsection (5) or (6) applies. (5) This subsection applies if— (a) the proceedings are struck out— (i) because there is no reasonable prospect of P's case, or part of it, succeeding, or (ii) because of something that P or P's representative has done (or not done), (b) the appeal period has ended, and (c) the proceedings have not been reinstated or (where the strike out was not automatic) the decision to strike out the proceedings has not been set aside or overturned on appeal. (6) This subsection applies if— (a) on an application by HMRC, the tribunal to which the proceedings are addressed makes a declaration that P or P's representative acted unreasonably in bringing or conducting the proceedings, (b) the appeal period has ended, and (c) the decision to make the declaration has not been set aside or overturned on appeal. (7) The powers of the tribunal in relation to relevant proceedings are to be taken to include the power to make a declaration for the purposes of subsection (6)(a). (8) For the purposes of this section, the following are “relevant proceedings” in relation to P— (a) where the whole of the proceedings on P's tax appeal relate to the chosen arrangements, the whole of those proceedings; (b) where part only of the proceedings on P's tax appeal relates to the chosen arrangements, that part of those proceedings; (c) proceedings before the Upper Tribunal on any further appeal by P in relation to relevant proceedings within paragraph (a) or (b) (where those proceedings were determined by the First-tier Tribunal). (9) For the purposes of subsection (8), P's tax appeal is the tax appeal mentioned in subsection (1)(a) or (2)(a) (as the case may be). (10) For the purposes of this section, “the appeal period” is— (a) the period during which an appeal could be brought against the striking out of the proceedings or, as the case may be, the decision to make the declaration under subsection (6)(a) (ignoring any possibility of an appeal out of time), or (b) where an appeal mentioned in paragraph (a) has been brought, the period during which that appeal has not been finally determined, withdrawn or otherwise disposed of. (11) For the purposes of subsection (10), an appeal includes an application to reinstate proceedings that have been struck out or for the tribunal to set aside its decision. (12) In this section, “tribunal” means the First-tier Tribunal or Upper Tribunal.

Amount of a section 208 or 208A penalty

3

(1A) The penalty under section 208A is 20% of the value of the denied advantage.

(4) The “relevant time” means— (a) in the case of a penalty under section 208, the specified time; (b) in the case of a penalty under section 208A, the day after the end of the appeal period. (5) “The appeal period” has the same meaning for the purposes of this section as it has for the purposes of section 208A (see section 208A(10) and (11)).

Assessment of a section 208A penalty

4

After section 211 (assessment of a section 208 penalty) insert—

(211A) (1) Where a person is liable for a penalty under section 208A, HMRC must— (a) assess the penalty, (b) notify the person who is liable for the penalty, and (c) state in the notice a tax period in respect of which the penalty is assessed. (2) A penalty under section 208A must be paid before the end of the period of 30 days beginning with the day on which the person is notified of the penalty under subsection (1). (3) Subsection (4) of section 211 applies to an assessment under this section as it applies to an assessment under that section. (4) An assessment of a penalty under section 208A must be made before the end of the period of 90 days beginning with the day after the end of the appeal period. (5) “The appeal period” has the same meaning for the purposes of this section as it has for the purposes of section 208A (see section 208A(10) and (11)).

Aggregate penalties

5

Alteration of assessment of a section 208 or 208A penalty

6

Cancellation of a section 208A penalty

7

In section 214 (appeal against a section 208 penalty), after subsection (8) insert—

(8A) If the tribunal cancels a decision of HMRC that a penalty is payable by P under section 208, any penalty additional to that penalty to which P is liable under section 208A is also cancelled.

Appeal against a section 208A penalty

8

After section 214 insert—

(214A) (1) P may appeal against a decision of HMRC that a penalty is payable by P under section 208A. (2) P may appeal against a decision of HMRC as to the amount of a penalty payable by P under section 208A. (3) An appeal under subsection (1) may be made only on one or more of the following grounds— (a) that section 208A did not apply when the decision was made or no longer applies; (b) that the condition in section 208A(3) was not met when the decision was made or is no longer met; (c) that the penalty was not assessed before the end of the period mentioned in section 211A(4). (4) An appeal under this section must be made within the period of 30 days beginning with the day on which notification of the penalty is given under section 211A. (5) On an appeal under subsection (1), the tribunal may affirm or cancel HMRC's decision. (6) On an appeal under subsection (2), the tribunal may— (a) affirm HMRC's decision, or (b) substitute for HMRC's decision another decision that HMRC had power to make. (7) Subsections (5) to (7) of section 214 apply to an appeal under this section as they apply to an appeal under that section. (8) In this section “tribunal” has the meaning it has for the purposes of section 214 (see section 214(5) and (11)).

PART 2 — Amendments consequential on Part 1

FA 2014

9

FA 2014 is amended as follows.

10

In the heading of Schedule 30 (section 208 penalty: value of the denied advantage), after “208” insert “ or 208A ”.

11

In Schedule 31 (follower notices and partnerships), after paragraph 4 insert—

(4A) Section 208A(3) applies, in relation to a partnership follower notice, as if the first reference to P were to each relevant partner.

12

(aa) the total amount of the penalties under section 208A(3) for which the relevant partners are liable is 8% of the value of the denied advantage,

;

(9A) The right of appeal under section 214A extends to— (a) a decision that penalties under section 208A(3) are payable by the relevant partners by virtue of this paragraph, and (b) a decision as to the total amount of those penalties payable by those partners, but not to a decision as to the appropriate share of, or the amount of a penalty payable by, a relevant partner. (9B) Section 214A(3) applies to an appeal by virtue of sub-paragraph (9A)(a) as it applies to an appeal under section 214A(1). (9C) Section 214A(5) applies to an appeal by virtue of sub-paragraph (9A)(a), and section 214A(6) to an appeal by virtue of sub-paragraph (9A)(b).

National Insurance Contributions Act 2015

13

PART 3 — Amendment of Schedule 20 to FA 2015

14

In Schedule 20 to FA 2015 (penalties in connection with offshore matters and offshore transfers), after paragraph 20 insert—

(21) (1) Section 212(5) of FA 2014 (follower notices: aggregate penalties) is amended as follows. (2) After paragraph (b) insert— (ba) 125% in a case where neither paragraph (a) nor paragraph (b) applies and at least one of the penalties is determined by reference to the percentage in— (i) paragraph 4(2)(c) of Schedule 24 to FA 2007, (ii) paragraph 6(2)(a) of Schedule 41 to FA 2008, or (iii) paragraph 6(3A)(a) of Schedule 55 to FA 2009, (3) In paragraph (c), for “neither paragraph (a) nor paragraph (b) applies” substitute “ none of paragraphs (a) to (ba) applies ”. (4) In paragraph (d), for “none of paragraphs (a), (b) and (c) applies” substitute “ none of paragraphs (a) to (c) applies ”.

PART 4 — Commencement

15

The amendments made by Parts 1 and 2 of this Schedule have effect where a penalty under section 208 of FA 2014 is assessed, under section 211 of that Act, on or after the day on which this Schedule comes into force.

16

The reference in section 120(2) of FA 2015 (commencement) to Schedule 20 to that Act is to be read as a reference to Schedule 20 as amended by Part 3 of this Schedule.

SCHEDULE 29

1

FA 2009 is amended as follows.

2

In section 102(4) (repayment interest on sums to be paid by HMRC)—

(aa) Part 2A makes special provision as to the period for which an amount of VAT credit carries interest, and

.

3

(12C) (1) This paragraph applies in the case of a repayment of the amount by which— (a) the total amount of payments on account made in respect of a prescribed accounting period, exceeds (b) the amount of VAT payable in respect of that accounting period. (2) The repayment interest start date is the date on which the VAT return for the prescribed accounting period is due. (3) In this paragraph— - “payment on account” means a payment on account required under section 28 of VATA 1994; - “prescribed accounting period” has the same meaning as in VATA 1994; - “VAT return” means a return required to be made by regulations under VATA 1994.

(12D) In this Part of this Schedule— - “prescribed accounting period” has the same meaning as in VATA 1994; - “relevant VAT return” means the VAT return for the prescribed accounting period to which the VAT credit relates; - “VAT credit” has the same meaning as in VATA 1994; - “VAT return” means a return required to be made by regulations under VATA 1994. (12E) (1) An amount of VAT credit does not carry interest for any period during which— (a) a VAT return required to be made on or before the date on which the relevant VAT return is made has not been made, or (b) there is a failure to comply with a requirement imposed under paragraph 4(1) or (1A) of Schedule 11 to VATA 1994 (production of evidence and giving of security). (2) The period referred to in sub-paragraph (1)(b)— (a) begins on the date when written notice requiring production of evidence or the giving of security is given by HMRC, and (b) ends on the date when HMRC receive the required evidence or the required security.

4

(5) In this Part of this Schedule— - “assessment” has the same meaning as in paragraph 3 of Schedule 53; - “prescribed accounting period” has the same meaning as in VATA 1994; - “VAT credit” has the same meaning as in VATA 1994. (6) Where each of conditions A to C is met, an amount of repayment interest that— (a) has been paid to a person, but (b) ought not to have been paid (see condition C), may be recovered from the person as if it were late payment interest. (7) (1) Condition A is that repayment interest has been paid to the person on a VAT credit for a prescribed accounting period. (2) Condition B is that (whether or not a previous assessment has been made), an assessment or amendment of an assessment is made of the amount of value added tax payable by the person for that prescribed accounting period. (3) Condition C is that as a result of the assessment or amendment of an assessment, it appears to HMRC that some or all of the repayment interest ought not to have been paid. (8) (1) This paragraph applies where there is a common period in relation to a person (see sub-paragraph (2)). (2) A common period in relation to a person is any period during which— (a) an amount of value added tax that carries late payment interest is due and payable by the person (“the overdue payment”), and (b) an amount of VAT credit that carries repayment interest is payable to the person (“the VAT credit”). (3) During the common period— (a) the overdue payment is to be treated as carrying late payment interest only on the amount (if any) by which the overdue payment exceeds the VAT credit, and (b) the VAT credit is to be treated as carrying repayment interest only on the amount (if any) by which the VAT credit exceeds the overdue payment.

SCHEDULE 30

PART 1 — Stop notices and information & inspection powers

1

After section 236 (of FA 2014) insert—

(236A) (1) An authorised officer may give a person a notice (a “stop notice”) if the authorised officer suspects that the recipient promotes, or has promoted, arrangements of a description specified in the notice or proposals for such arrangements. (2) A description of arrangements may be specified in a stop notice only if the authorised officer considers that— (a) condition A and any of conditions B and C are met, or (b) conditions B and D are met. (3) Condition A is that arrangements of that description— (a) would, if the arrangements had been implemented before 5 April 2019, have been likely to— (i) cause a person to be treated as taking a relevant step for the purposes of Part 7A of ITEPA 2003 by virtue of paragraph 1(1) of Schedule 11 to F(No.2)A 2017 (loan charge: employment income), or (ii) cause a relevant benefit to be treated as arising for the purposes of section 23A to 23H of ITTOIA 2005 by virtue of paragraph 1 of Schedule 12 to F(No.2)A 2017 (loan charge: trading income), (b) would be the same, or similar, in form or effect to arrangements or proposed arrangements to which a reference number has been allocated under section 311 of FA 2004 or paragraph 22 of Schedule 17 to F(No.2)A 2017, (c) would be the same, or similar, in form or effect to arrangements in relation to which a person has been given a follower notice under section 204 (circumstances in which a follower notice may be given), or (d) would be the same, or similar, in form or effect to arrangements of a description specified in regulations made by the Commissioners under this section. (4) Condition B is that— (a) arrangements of that description, or proposals for such arrangements, have been, or are likely to be, marketed (in any manner, whether by the recipient of the stop notice or otherwise) as capable of enabling a person to obtain a particular tax advantage, and (b) it is more likely than not that arrangements of that description are not capable of enabling that advantage to be obtained. (5) Condition C is that condition A is met as a result of the allocation of a reference number under section 311 of FA 2004 or paragraph 22 of Schedule 17 to F(No.2)A 2017 in relation to arrangements or proposed arrangements (the “reference arrangements”) and— (a) HMRC has required any person to provide information or documents under section 310A or 311C of FA 2004 or paragraph 19 or 22C of Schedule 17 to F(No.2)A 2017 in relation to the reference arrangements and that person has not complied with that requirement, or (b) HMRC has made an application to the tribunal under section 308A(2) of FA 2004 or paragraph 16 of Schedule 17 to F(No.2)A 2017 in relation to the reference arrangements. (6) Condition D is that— (a) arrangements of that description or proposals for such arrangements would be relevant arrangements or relevant proposals (see section 234), and (b) the recipient of the notice is subject to a conduct notice or a monitoring notice. (7) For the purposes of this section, and sections 236B to 236K and 272A, a person promotes arrangements or a proposal for arrangements if the person does anything in connection with those arrangements or that proposal that would, if those arrangements or that proposal were relevant arrangements or a relevant proposal, cause the person to be carrying on a business as a promoter, or to be treated as such, for the purposes of this Part. (236B) (1) A person subject to a stop notice must not promote— (a) any arrangements that meet the description specified in the notice or that have a similar form or effect to arrangements of that description, or (b) any proposal for such arrangements. (2) A person is subject to a stop notice for the purposes of this Part if— (a) the person is the recipient of the notice; (b) the person is a body corporate or partnership that the recipient of the notice controls or has significant influence over; (c) the person controls or has significant influence over a body corporate or partnership that is the recipient of the notice; (d) the recipient of the notice makes a relevant transfer to the person. (3) If the recipient of a stop notice controls or has significant influence over a person that is a body corporate or partnership, the recipient must— (a) within 5 days of the giving of the notice, give a copy of the notice to that person, and (b) within 15 days of the giving of the notice, provide HMRC with the information mentioned in subsection (6) in relation to that person. (4) If the recipient of a stop notice is a body corporate or partnership, it must— (a) within 5 days of the giving of the notice, give a copy of the notice to each person who controls or has significant influence over it, and (b) within 15 days of the giving of the notice, provide HMRC with the information mentioned in subsection (6) in relation to each such person. (5) If the recipient of a stop notice makes a relevant transfer to a person, the recipient must— (a) before making the transfer, give a copy of the notice to that person, and (b) within 15 days of making the transfer, provide HMRC with the information mentioned in subsection (6) in relation to that person. (6) The information referred to in subsections (3)(b), (4)(b) and (5)(b) in relation to a person is— (a) the person's name; (b) any name under which the person carries on a business and any previous name or pseudonym known by the recipient of the stop notice; (c) the person's business address or registered office. (7) An authorised officer may give a copy of a stop notice to any person the officer considers the recipient of the notice is obliged to give a copy to as a result of subsection (3)(a), (4)(a) or (5)(b) (but this does not affect the obligation of the recipient to do so). (8) Sub-paragraphs (5) to (11) of paragraph 13A of Schedule 34 (meaning of “control” and “significant influence”) apply to this section as they apply to Part 2 of that Schedule. (9) In this section “relevant transfer” has the meaning it has in paragraph 5 of Schedule 33A (promotion structures). (236C) (1) A person subject to a stop notice must provide a return to HMRC containing the information described in subsection (4) for each relevant period. (2) The first relevant period is the 3 month period commencing on the day the stop notice was given to its recipient. (3) Each successive 3 month period that commences within the period of 3 years commencing on that day is a relevant period. (4) The information that must be contained in a return under subsection (1) is— (a) the number (which may be nil) of relevant clients of the person subject to the stop notice in the relevant period to which the return relates, (b) if the return is the return for the first relevant period, the number (which may be nil) of relevant clients of the person in the period ending with the commencement of the first relevant period, (c) in respect of each relevant client— (i) the client's name and address, (ii) the unique taxpayer reference number (if any) allocated to the client by HMRC, and (iii) the client's national insurance number (if any), (d) any name by which any such arrangements or proposal is known or is marketed. (5) For the purposes of this section, a person (“C”) is a “relevant client” of a person subject to a stop notice (“P”) in a period if at any time during that period— (a) P has made a firm approach to C in relation to a proposal for arrangements that fall within the description specified in the stop notice; (b) P has made the proposal available for implementation by C; (c) P has provided services to C in relation to arrangements falling within the description specified in the stop notice, or in relation to a proposal for such arrangements. (6) If the person does not have the information referred to in subsection (4)(c)(ii) or (iii) in respect of a relevant client, the return must instead include a statement of that fact. (7) A return for a relevant period must be provided to HMRC before the end of the period of 15 days commencing on the last day of the relevant period. (8) An authorised officer may by notice to a person subject to the obligation to make a return under sub-paragraph (1) provide for that obligation to cease to have effect in relation to that person from such time as may be specified in the notice. (236D) (1) A person subject to a stop notice may make a request for the notice to cease to have effect in relation to that person if the person— (a) does not intend to promote, and has not promoted, arrangements that fall within the description of arrangements specified in the notice or proposals for such arrangements, (b) considers that the conditions for specifying the description of arrangements (see section 236A(2)) were not met, or (c) considers that there are other reasons for it to cease to have effect. (2) A request under subsection (1) must— (a) be made in writing to an authorised officer, (b) be made before the end of the period of 30 days beginning with the day on which the stop notice was given, (c) contain an explanation of the basis for the request, and (d) be accompanied by such evidence to support that explanation as is reasonable to provide in the circumstances. (3) The authorised officer to whom the request is made must decide whether or not the notice is to cease to have effect in relation to the person who made the request. (4) The authorised officer must give the person who made the request a notice setting out the officer's decision (“a decision notice”) before the end of the period of 45 days beginning with the day on which the request was received. (5) If at the end of that period the authorised officer has not given a decision notice, the stop notice ceases to have effect in relation to the person who made the request. (6) An authorised officer may also determine that a stop notice is to cease to have effect in relation to a person who has not made a request under subsection (1) by giving the person a notice (“a withdrawal notice”). (7) A decision notice or a withdrawal notice that provides for a stop notice to cease to have effect in relation to a person must specify the date on which it ceases to have effect in relation to that person, which may be earlier or later than the date on which the decision notice or withdrawal notice is given. (236E) (1) A person may appeal against a refusal by an authorised officer to grant a request that a stop notice cease to have effect in relation to that person. (2) Notice of appeal must be given— (a) in writing to the officer who gave the decision notice under section 236D(4), and (b) within the period of 30 days beginning with the day on which the decision notice was given. (3) The notice of appeal must state the grounds of appeal. (4) The grounds of appeal that may be stated are the same as the grounds on which a person may request that a stop notice cease to have effect as mentioned in section 236D(1). (5) On an appeal that is notified to the tribunal, the tribunal may— (a) confirm the refusal, or (b) direct that the stop notice is to cease to have effect in relation to a person from such date as the tribunal consider appropriate (which may be earlier or later than the date on which the tribunal makes that direction). (6) Subject to this section, the provisions of Part 5 of TMA 1970 relating to appeals have effect in relation to an appeal under this section. (236F) (1) A person who makes an appeal under section 236E may make a suspension request. (2) A “suspension request” is a request that a stop notice which is the subject of an appeal under that section is to cease to have effect in relation to the person making the request until the appeal has been determined, withdrawn or otherwise disposed of. (3) A suspension request must— (a) be made in writing to the authorised officer to whom the notice of appeal was given, (b) contain an explanation of the basis for the request, and (c) be accompanied by such evidence to support that explanation as is reasonable to provide in the circumstances. (4) The authorised officer to whom the suspension request is made must decide whether or not the notice is to cease to have effect in relation to the person who made the request until the appeal has been determined, withdrawn or otherwise disposed of. (5) When deciding whether or not to grant a suspension request, the officer must have regard to the need to protect— (a) the public revenue, and (b) persons to whom arrangements or proposals for arrangements of the description specified in the stop notice might be marketed. (6) The authorised officer must give the person who made the suspension request a notice setting out the officer's decision (“a suspension decision notice”) before the end of the period of 30 days beginning with the day on which the request was received. (7) If at the end of that period the authorised officer has not given a suspension decision notice, the stop notice ceases to have effect in relation to the person who made the request until either— (a) the officer gives a decision notice that provides that the suspension request is not to be granted, or (b) the appeal has been determined, withdrawn or otherwise disposed of. (236G) (1) This section applies to a stop notice if— (a) condition A in section 236A was met in relation to the giving of that notice as a result of the allocation of a reference number under section 311 of FA 2004 or paragraph 22 of Schedule 17 to F(No.2)A 2017, and (b) that reference number has been withdrawn. (2) Where this section applies to a stop notice, it ceases to have effect in relation to every person who is subject to it from the time when the reference number in question was withdrawn. (3) HMRC must give a notice to— (a) each person who has been given a stop notice to which this section applies, and (b) every other person that HMRC is aware was subject to that notice. (4) A notice given under subsection (3) must state the reason for the withdrawal of the reference number in question and may contain such further explanation as HMRC consider appropriate (for example, it may contain HMRC's view of the arrangements or proposed arrangements to which the reference number relates). (236H) (1) An authorised officer may publish— (a) the fact that a person is subject to a stop notice; (b) details of any arrangements or proposal for arrangements promoted by that person that the officer considers meet the description specified in the notice. (2) Publication under subsection (1) may also include the following information about the person— (a) the person's name; (b) the person's business address or registered office; (c) any other information that the authorised officer considers it appropriate to publish in order to make clear the person's identity. (3) The reference in subsection (2)(a) to the person's name includes any name under which the person carries on a business and any previous name or pseudonym. (4) Publication of information about a person subject to a stop notice may not take place before the end of the appeal period, but an authorised officer may, at any time after the notice is given, publish the description of arrangements or proposal for arrangements specified in the notice and the fact that arrangements of that description are subject to a stop notice. (5) The “appeal period” means— (a) the period during which a request under section 236D(1) (withdrawal of stop notices) could be made, (b) where such a request was made, the period during which an appeal to the tribunal against a decision notice under section 236D(4) could be brought under section 236E, or (c) where an appeal mentioned in paragraph (b) has been brought, the period during which the proceedings on that appeal to the tribunal have not been determined, withdrawn or otherwise disposed of. (6) For the purposes of subsection (5)(c), reference to proceedings on an appeal to the tribunal do not include any proceedings on appeal from the tribunal. (236I) (1) Where an authorised officer has published anything under section 236H in relation to a stop notice that has ceased to have effect as a result of section 236G, an authorised officer must publish— (a) the fact it has ceased to have effect; (b) the reason for the withdrawal of the reference number in question (see section 236G(1)); (c) such further explanation as HMRC consider appropriate. (2) Where an authorised officer is required to publish information as a result of subsection (1), the officer may also publish information about the persons who were subject to such a stop notice (including the information mentioned in section 236H(1) and (2)). (236J) (1) A person (“P”) subject to a stop notice who (at any time) has promoted arrangements falling within the description specified in that notice, or has promoted a proposal for such arrangements, must give a notice to— (a) each of P's clients in relation to those arrangements or that proposal, and (b) each person who P could reasonably be expected to know is an intermediary in relation to any such proposal. (2) The notice must— (a) set out the fact that a person is subject to a stop notice, (b) set out the fact that the arrangements or proposed arrangements the recipient of the notice is a client or intermediary in relation to meets the description of arrangements specified in the notice, and (c) be accompanied with a copy of the stop notice. (3) A person (“C”) is a client of P if— (a) P has made a firm approach to C in relation to a proposal for arrangements that fall within the description specified in the stop notice, (b) P has made the proposal available for implementation by C, or (c) P has provided services to C in relation to arrangements falling within the description specified in the stop notice, or in relation to a proposal for such arrangements. (4) A notice under this section must be given— (a) to each person who was a client of P on or before the day on which P became aware that P was subject to the notice, within 5 days of that day; (b) to each person that P could reasonably be expected to know was an intermediary in relation to the proposal in question on or before the day on which P became aware that P was subject to the notice, within 5 days of that day; (c) to each person that P subsequently becomes aware is an intermediary in relation to the proposal in question, within 5 days of P becoming so aware. (236K) (1) This section applies if an authorised officer suspects that a person subject to a stop notice has failed to comply with section 236B(1). (2) Where this section applies, the officer may provide a copy of the stop notice to any person the officer considers might be affected by that failure or the giving of the stop notice (for example, any person who is a client of the person who failed to comply with section 236B(1) or who otherwise makes use of arrangements that must not be promoted as a result of the stop notice). (3) Where the officer provides a copy of a stop notice to a person under subsection (2) the officer may also provide any of the following information to that person— (a) the name of the person who failed to comply with section 236B(1); (b) the business address or registered office of that person; (c) any other information that the authorised officer considers it appropriate to provide in order to make clear the identity of that person; (d) details of any arrangements or proposal for arrangements promoted by that person that meet the description specified in it; (e) an explanation of the effect of the stop notice; (f) an explanation of why the stop notice was given.

2

(8A) For the purposes of determining whether a person should be given a follow-on conduct notice, the meeting of the condition in paragraph 12 of Schedule 34 (stop notices) by the person at a time when they are subject to a monitoring notice is to be regarded as significant by the authorised officer making the determination (see section 237(5)).

3

Omit section 262 (information required for monitoring compliance with conduct notice).

4

After section 272 insert—

(272A) (1) Schedule 36 to FA 2008 (information and inspection powers) applies for a relevant purpose in relation to a relevant person as it applies for the purpose of checking the tax position of a person as if— (a) any provisions which can have no application for that purpose were omitted (for example, paragraphs 10A, 11, 12A and 12B); (b) references to “the taxpayer” were to “the relevant person”; (c) references to prejudice to the assessment or collection of tax included prejudice to the fulfilment of a relevant purpose; (d) references to “business documents” included any documents (or copies of documents) in connection with any relevant arrangements or relevant proposal; (e) references to a pending appeal relating to tax were to a pending appeal by the relevant person under this Part; (f) in paragraph 13, after “paragraph 39” there were inserted “ of this Schedule and paragraph 2(3A) of Schedule 35 to FA 2014 ”; (g) paragraphs 21 to 21B were omitted; (h) paragraph 25 were omitted; (i) in paragraph 29(1) for “a taxpayer”, in the first place it occurs, there were substituted “ a relevant person ”; (j) Part 7 (penalties) were omitted (but see Schedule 35 of this Act). (2) A person is “relevant” if— (a) the officer suspects that the person carries on, or has in the past carried on, a business as a promoter in relation to a relevant proposal or relevant arrangements and— (i) the officer suspects that the person has met a threshold condition, (ii) the officer suspects the person could be given a defeat notice, or (iii) the officer suspects the person promotes, or has promoted, arrangements, or proposals for such arrangements, of a description that the officer suspects could be specified in a stop notice, (b) the officer suspects that— (i) the person made a relevant transfer, or (ii) the person is a person to whom a relevant transfer was made, or (c) the person is, or was, subject to a stop notice, conduct notice or monitoring notice. (3) The following are “relevant purposes” in relation to a relevant person— (a) determining whether the relevant person carries on or has in the past carried on a business as a promoter in relation to a relevant proposal or relevant arrangements; (b) determining whether the relevant person has met a threshold condition; (c) determining whether the relevant person could be given a defeat notice; (d) determining whether the person has provided false or misleading information or documents in relation to a stop notice, conduct notice or monitoring notice; (e) determining whether arrangements, or proposals for such arrangements, that an officer suspects are promoted by the relevant person are of a description that could be specified in a stop notice; (f) enabling HMRC to understand the operation of arrangements, or proposals for such arrangements, that an officer suspects are promoted by the relevant person; (g) identifying any other person who has a connection with the relevant person that results (whether solely because of that connection or otherwise) in the relevant person being a member of a promotion structure; (h) determining whether the relevant person made a relevant transfer, and if so to whom; (i) determining whether a relevant transfer was made to the relevant person, and if so by whom; (j) monitoring compliance with any stop notice, conduct notice or monitoring notice the relevant person is subject to. (4) In this section— (a) reference to compliance with a stop notice, conduct notice or monitoring notice includes compliance with any provisions of this Part that a person subject to such a notice must comply with; (b) reference to a person “promoting” is to be construed in accordance with section 236A(7); (c) “relevant transfer” has the meaning it has in paragraph 5 of Schedule 33A (promotion structures).

5

(za) a person subject to a stop notice, (zb) arrangements or proposals for arrangements of a description specified in a stop notice in relation to which a person subject to a stop notice is a promoter,

.

(5) Nothing in this section authorises a disclosure of information that would contravene the data protection legislation (but in determining whether a disclosure would do so, take into account this section). (6) For the purposes of this section, a person mentioned in subsection (1)(za) or (zb) is a promotor of arrangements or a proposal for arrangements if the person would be a promoter of those arrangements or proposal if those arrangements or that proposal were relevant arrangements or a relevant proposal (see section 235(2) to (6) and any regulations made under section 235(6)). (7) In this section— - “applicable arrangements” means— 1. in relation to a disclosure falling within subsection (1)(za) or (zb), arrangements falling within the description specified in the stop notice to which the disclosure relates, or 2. in relation to a disclosure falling within subsection (1)(a) or (b), relevant arrangements; - “applicable proposal” means— 1. in relation to a disclosure falling within subsection (1)(za) or (zb), a proposal for arrangements falling within the description specified in the stop notice to which the disclosure relates, or 2. in relation to a disclosure falling within subsection (1)(a) or (b), a relevant proposal; - “the data protection legislation” has the same meaning as in the Data Protection Act 2018 (see section 3(9) of that Act).

6

In section 283 (interpretation of Part 5), in subsection (1), at the appropriate place insert—

“stop notice” means a notice given under section 236A(1); “subject to a stop notice”, in relation to a person, is to be construed in accordance with section 236B(2);

.

7

In Schedule 34 (threshold conditions)—

(12) A person meets this condition if the person is subject to a stop notice and fails to comply with— (a) section 236B(1) (promotion of arrangements or proposal of a description specified in a stop notice), (b) section 236C(1) (duty to make return to HMRC), or (c) any obligations of the person under Schedule 36 to FA 2008 as it has effect as a result of section 272A (information and inspection powers).

8

(za) section 236C(1) (duty to make return to HMRC);

;

(i) paragraph 1, 2, 5 or 5A of Schedule 36 of FA 2008 (information and inspection powers) as it has effect as a result of section 272A.

, or— (b) deliberately obstructs an officer of Revenue and Customs in the course of an inspection under paragraph 10 of Schedule 36 to FA 2008, as it has effect as a result of section 272A, that has been approved by the tribunal is liable to a penalty not exceeding the relevant amount (see sub-paragraph (3A)).

;

Section 236B(1) (promotion of arrangements or proposal of a description specified in a stop notice) the relevant amount (see subparagraphs (2A) and (2B))
Section 236B(3)(a), (4)(a) or (5)(a) (requirement to notify persons who are subject to a stop notice) £10,000
Section 236B(3)(b), (4)(b) or (5)(b) (requirement to notify HMRC of persons who are subject to a stop notice) £25,000
Section 236C(1) (duty to make return to HMRC) £5,000
Section 236J(1) (requirement to notify clients and intermediaries of stop notice) £5,000

;

Duty to comply with a notice given under paragraph 1 of Schedule 36 to FA 2008 as it has effect as a result of section 272A the relevant amount (see sub-paragraph (3A))
Duty to comply with a notice given under paragraph 2, 5 or 5A of Schedule 36 to FA 2008 as it has effect as a result of section 272A the relevant amount (see sub-paragraph (3B))

;

(1A) In relation to a failure to comply with section 236C(1) the maximum penalty specified in column 2 of the Table is a maximum penalty which may be imposed— (a) in respect of each failure to provide the required information or statement (see section 236C(6)) about a relevant client (within the meaning given by that section), and (b) for each day on which a complete return is not provided after the end of the period within which it must be provided (see section 236C(7)).

;

(2A) In relation to a failure to comply with section 236B(1), the “relevant amount” is the sum of— (a) £100,000 in respect of one or more failures relating to a particular stop notice, and (b) £5,000 for each person to whom arrangements of a description specified in that stop notice, or a proposal for such arrangements, were promoted (within the meaning it has in that section). (2B) Where a person fails to comply with section 236B(1) at a time when the person, or another person who the person controls or has significant influence over, is subject to a monitoring notice, sub-paragraph (2A) applies as if— (a) in paragraph (a), for “£100,000” there were substituted “ £250,000 ”, and (b) in paragraph (b), for “£5,000” there were substituted “ £10,000 ”. (2C) If the maximum penalty that would apply as a result of sub-paragraph (2B) in a particular case appears inappropriately low after taking account of the considerations in sub-paragraph (4), sub-paragraph (2B)(a) applies as if for “£250,000” there were substituted “ £1,000,000 ”.

;

(3A) Where a person fails to comply with a notice given under paragraph 1 of Schedule 36 to FA 2008 (as it has effect as a result of section 272A) or deliberately obstructs an officer of Revenue and Customs in the course of an inspection under paragraph 10 of that Schedule (as it has effect as a result of that section) that has been approved by the tribunal, the “relevant amount” is— (a) in the case of a failure by a person who was subject to a monitoring notice at the time of the failure, or who had control of or had significant influence over such a person, £1,000,000, and (b) in any other case, £5,000. (3B) In relation to a failure to comply with a notice given under paragraph 2, 5 or 5A of that Schedule as it has effect as a result of section 272A, the “relevant amount” is the amount for the time being specified in paragraph 39(2) of that Schedule.

;

(5) The references in sub-paragraph (4) to arrangements or a proposal being “promoted” are to be construed in accordance with section 236A(7). (6) Sub-paragraphs (5) to (11) of paragraph 13A of Schedule 34 (meaning of “control” and “significant influence”) apply to this paragraph as they apply to Part 2 of that Schedule.

(ii) a penalty in respect of a failure to comply with section 236B(1) unless an officer of Revenue and Customs authorised for the purposes of section 100 of TMA 1970 considers that paragraph 2(2C) of this Schedule applies in relation to that failure; (iii) a penalty in respect of a failure to comply with section 236B(3), (4) or (3), 236C(1) or 236J(1); (iv) a penalty in respect of a failure to comply with a notice given under paragraph 1 of Schedule 36 to FA 2008 as it has effect as a result of section 272A unless paragraph 2(3A)(a) of this Schedule applies in relation to that failure; (v) a penalty in respect of a failure to comply with a notice given under paragraph 2, 5 or 5A of Schedule 36 to FA 2008 as it has effect as a result of section 272A.

PART 2 — Promotion structures

9

In section 235 (carrying on a business “as a promoter”), after subsection (1) insert—

(1A) For the purposes of this Part, a person is treated as carrying on a business as a promoter if the person is a member of a promotion structure (whether or not the person carries on a business). Schedule 33A describes the cases in which a person is a member of a promotion structure.

10

After Schedule 33 insert—

SCHEDULE 33A (1) A person (“A”) is a member of a promotion structure if A falls within— (a) the case described in paragraph 2 (multiple entity promoter), (b) the case described in paragraph 3 (acting for a non-resident promoter), (c) the case described in paragraph 4 (control of another promoter), or (d) the case described in paragraph 5 (transfer of promotion business). (2) (1) A falls within this case if— (a) A and one or more other persons carry out activities between them that if carried out by a single person would cause that person to be a promoter within the meaning of section 235(2) or (3), and (b) each of the persons carrying out those activities is closely related to at least one other of those persons. (2) A person (“D”) is closely related to another person (“E”) if— (a) D is able to secure that E acts in accordance with D's wishes (or vice versa), (b) E typically acts in accordance with D's wishes, (c) it is reasonable to expect that E will act in accordance with D's wishes, (d) a third person is able to secure that D and E act in accordance with the third person's wishes, (e) D and E typically act in accordance with a third person's wishes, (f) it is reasonable to expect that D and E will act in accordance with a third person's wishes, or (g) the 50% investment condition is met in relation to D and E. (3) The 50% investment condition is met in relation to D and E if— (a) D has a 50% investment in E (or vice versa), or (b) a third person has a 50% investment in each of D and E. (4) Subsections (3) to (9) of section 259ND of TIOPA 2010 apply for the purposes of determining whether a person has a “50% investment” in another person, and references in those subsections to X% are to be read as references to 50%. (3) (1) A falls within this case if A acts under the instruction or guidance of a person (“O”) who carries on a business as a promoter and who is resident outside the United Kingdom, and— (a) A does any of the things mentioned in sub-paragraph (2) under that instruction or guidance, or (b) A receives remuneration (of any kind) from O in connection with the business carried on by O. (2) The things referred to in sub-paragraph (1)(a) are— (a) being a promoter; (b) facilitating any activity by virtue of which a person would be a promoter (for example, by facilitating the organisation of relevant arrangements or by facilitating the making of a relevant proposal available for implementation). (3) For the purposes of sub-paragraph (1)(b), reference to A receiving remuneration from O includes— (a) A receiving any payment or benefit as a consequence of instructions given by O (whether or not O is the source of that payment or benefit); (b) A receiving any payment or benefit as a consequence of any arrangements that O made or participated in the making of, or that are referable to the business carried on by O (which may include relevant arrangements, or arrangements implementing a relevant proposal, promoted by O or which are otherwise referable to that business). (4) For the purposes of this paragraph a person is a promoter if the person meets the description of a promoter in section 235(2) or (3) (whether or not the person carries on a business). (4) (1) A falls within this case if— (a) A is an individual who controls, or has significant influence over, a body corporate or a partnership (“B”) that carries on a business as a promoter, and (b) A meets the personal condition or the corporate condition. (2) The personal condition is that, at any time after A first controlled or had significant influence over B— (a) A was subject to a disqualification order or disqualification undertaking under the Company Directors Disqualification Act 1986 or the Company Directors Disqualification (Northern Ireland) Order 2002 (S.I. 2002/3150 (N.I. 4)), (b) A was bankrupt, or A's estate had been sequestrated under the Bankruptcy (Scotland) Act 2016, (c) A was the subject of an individual voluntary arrangement under Part 8 of the Insolvency Act 1986, (d) A's estate was subject to a protected trust deed (see section 163 of the Bankruptcy (Scotland) Act 2016), (e) A was subject to a bankruptcy restrictions order or an interim bankruptcy restrictions order, (f) A was subject to a debt relief order, or (g) A was subject to a debt relief restrictions order or interim debt relief restrictions order. (3) The corporate condition is that at any time A controlled, or had significant influence over, a person (other than B) that carried on business as a promotor that was— (a) a body corporate or a partnership that was dissolved or became insolvent, (b) a body corporate that became dormant, (c) a company formed and registered under the Companies Act 2006 (see section 1 of that Act) that made an application under section 1003 of that Act to strike the company's name off the register, or (d) a company formed and registered under that Act in respect of which the registrar (within the meaning of that Act) has published a notice under section 1000(3) or 1001(1) of that Act, if two months have passed since the publication of that notice. (4) For the purposes of this paragraph, the circumstances in which a body corporate or partnership becomes insolvent include— (a) if a company voluntary arrangement takes effect under Part 1 of the Insolvency Act 1986, (b) if an administration application (within the meaning of Schedule B1 to that Act) is made or a receiver or manager, or an administrative receiver, is appointed, (c) on the commencement of a creditor's voluntary winding up (within the meaning of Part 4 of that Act) or a winding up by the court under Chapter 6 of that Part, (d) if a compromise or arrangement takes effect under Part 26 of the Companies Act 2006, (e) if a bank insolvency order takes effect under Part 2 of the Banking Act 2009, (f) if a bank administration order takes effect under Part 3 of that Act, or (g) on the occurrence of any corresponding circumstances which have effect under or as a result of the law of Scotland or Northern Ireland or a country or territory outside the United Kingdom. (5) For the purposes of this paragraph, a body corporate is dormant if— (a) in the case of a body corporate incorporated in the United Kingdom, it is dormant within the meaning given by section 1169 of the Companies Act 2006, or (b) in any other case, it would be dormant within the meaning of that section if the body corporate were incorporated in the United Kingdom. (6) Sub-paragraphs (5) to (11) of paragraph 13A of Schedule 34 (meaning of “control” and “significant influence”) apply to this paragraph as they apply to Part 2 of that Schedule. (7) In this paragraph— - “bankruptcy restrictions order” or “interim bankruptcy restrictions order” means such an order (or as the case may be, undertaking) under— 1. Schedule 4A to the Insolvency Act 1986, 2. Schedule 2A to the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)), or 3. Part 13 of the Bankruptcy (Scotland) Act 2016 (asp 21); - “debt relief order” means such an order under— 1. Part 7A of the Insolvency Act 1986, or 2. Part 7A of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)); - “debt relief restrictions order” or “interim debt relief restrictions order” means such an order (or as the case may be, undertaking) under— 1. Schedule 4ZB to the Insolvency Act 1986, or 2. Schedule 2ZB to the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)). (5) (1) A falls within this case if— (a) there has been a relevant transfer to A, or (b) there has been a relevant transfer to a body corporate or partnership that A controls, or has significant influence over. (2) For the purposes of sub-paragraph (1) “relevant transfer” means a transfer of— (a) the whole of the business of a person carrying on business as a promoter; (b) any part of such a business that relates to the promotion of relevant arrangements or relevant proposals; (c) property, rights or liabilities of such a business that are connected with the promotion of relevant arrangements or relevant proposals. (3) In sub-paragraph (2) “transfer” means any transfer in substance (whether or not the transfer is formal or for consideration, and whether or not the transfer is direct). (4) Sub-paragraphs (5) to (11) of paragraph 13A of Schedule 34 (meaning of “control” and “significant influence”) apply to this paragraph as they apply to Part 2 of that Schedule.

11

In section 237 (duty to give conduct notice), after subsection (8) insert—

(8A) Where the authorised officer is required to make a determination under subsection (5), the officer must determine that the meeting of the condition (or if more than one is met, all of them) should be regarded as significant if P falls within the case described in paragraph 2 of Schedule 33A (multiple entity promoter).

12

In section 237A (duty to give conduct notice: defeat of promoted arrangement) after subsection (3B) (as inserted by paragraph 22(2) of this Schedule) insert—

(3C) If a person meets a condition in subsection (11), (12) or (13) and the person falls within the case described in paragraph 2 of Schedule 33A (multiple entity promoter), the authorised officer must determine (whether under subsection (1) or (3)(a) or (b)) that the meeting of the condition should be regarded as significant.

13

In section 250 (allocation of promoter reference number), in subsection (2)—

(aa) any person who HMRC know falls within the case described in paragraph 3 of Schedule 33A by virtue of acting under the instruction or guidance of the monitored promoter, and

.

14

(ca) any person who falls within the case described in paragraph 3 of Schedule 33A by virtue of acting under the instruction or guidance of the monitored promoter, and

.

15

(4A) Where the notified client is a person who falls within the case described in paragraph 3 of Schedule 33A by virtue of acting under the instruction or guidance of the monitored promoter concerned, the notified client must also, within 30 days, provide the promoter reference number to— (a) any person to whom the notified client has, since the monitoring notice in relation to the monitored promoter concerned took effect, communicated, for the purposes of any business (whether carried on by the notified client or not), information about a relevant proposal of the monitored promoter, and (b) any person who the notified client might reasonably be expected to know has, since that monitoring notice took effect, entered into, or is likely to enter into, transactions forming part of relevant arrangements in relation to which that monitored promoter is a promoter.

16

In section 258 (duty of person dealing with non-resident monitored promoter), in subsection (3)—

(aa) any person who falls within the case described in paragraph 3 of Schedule 33A by virtue of acting under the instruction or guidance of the monitored promoter, and

.

17

; (b) a person who falls within the case described in paragraph 3 of Schedule 33A by virtue of acting under the instruction or guidance of the monitored promoter.

18

In section 283 (interpretation)—

“promotion structure” is to be construed in accordance with section 235(1A) and Schedule 33A;

;

(4) Any reference in this Part to a person's activities as a promoter includes— (a) if the person falls within the case described in paragraph 2 of Schedule 33A, the activities carried out by the person and other persons by virtue of which the person falls within the case, (b) if the person falls within the case described in paragraph 3 of that Schedule, activities carried out under the instruction or guidance of a person who carries on business as a promoter, (c) if the person falls within the case described in paragraph 4 of that Schedule, the activities of the body corporate or partnership that the person controls, and (d) if the person falls within the case described in paragraph 5 by virtue of sub-paragraph (1)(b) of that paragraph, the activities of the body corporate or partnership that the person controls.

19

In Schedule 34 (threshold conditions) in paragraph 13B, in sub-paragraph (5), after “individual” insert “ who does not fall within the case described in paragraph 4 or 5 of Schedule 33A ”.

PART 3 — Conduct and monitoring notices: transferees

Conduct notices: transferees

20

(239A) (1) This section applies if an authorised officer becomes aware at any time that a person to whom a conduct notice has been given ( “ P ”) has made a relevant transfer within the meaning of paragraph 5 of Schedule 33A (promotion structures) to another person ( “D”). (2) The authorised officer may give D a conduct notice. (3) If the proposed terms of the conduct notice to be given to D are the same as the terms of the conduct notice given to P, section 238(2) (content of conduct notice: opportunity to comment) does not apply in relation to the proposed terms. (4) If the proposed terms of the conduct notice to be given to D differ from the terms of the conduct notice given to P, section 238(2) applies in relation to the proposed terms as if the reference in that provision to “the proposed terms of the notice” were a reference to the differences between the proposed terms of the conduct notice to be given to D and the terms of the conduct notice given to P. (5) Where a person is given a conduct notice under this section, but considers that they were not a person to whom a relevant transfer was made (such that this section applies), they may make representations to that effect to the authorised officer. (6) If (in light of those representations) the authorised officer considers that this section did not apply at the time the conduct notice was given, the officer must withdraw the notice.

Monitoring notices: transferees

21

(244A) (1) This section applies if an authorised officer becomes aware at any time that a person to whom a monitoring notice has been given ( “ P ”) has made a relevant transfer within the meaning of paragraph 5 of Schedule 33A (promotion structures) to another person ( “D”). (2) The authorised officer may give D a monitoring notice. (3) Where a person is given a monitoring notice under this section, but considers that they were not a person to whom a relevant transfer was made (such that this section applies), they may make representations to that effect to the authorised officer. (4) If (in light of those representations) the authorised officer considers that this section did not apply at the time the monitoring notice was given, the officer must withdraw the notice. (5) Subsections (2) to (4) of section 244 (monitoring notice: content and issuing) apply in relation to a monitoring notice given under subsection (2) of this section as they apply to a monitoring notice given under subsection (1) of that section, but as if the reference in subsection (3)(a) of that section to “the person” were a reference to P.

PART 4 — Miscellaneous amendments

Conduct notices: significance of conditions

22

(5A) In determining under subsection (5)(b) whether or not P's meeting of the condition (or conditions) should be regarded as significant, the authorised officer must determine whether the meeting of that condition (or those conditions taken together) by the person mentioned in subsection (1A)(a) should be regarded as significant in view of the purposes of this Part. (5B) If the officer determines that the meeting of the condition (or those conditions) by that person should be regarded as significant, the officer must determine that P's meeting of that condition (or those conditions) should be regarded as significant.

;

(3A) In determining under subsection (3) whether or not P's meeting of the condition should be regarded as significant, the authorised officer must determine whether the meeting of that condition by the person mentioned in subsection (2)(a) should be regarded as significant in view of the purposes of this Part. (3B) If the officer determines that the meeting of the condition by that person should be regarded as significant, the officer must determine that P's meeting of that condition should be regarded as significant.

;

Conduct notices: regular provision of information

23

In section 238 (content of conduct notices), in subsection (3), at the end insert—

(h) to ensure that the recipient provides such information or documents to HMRC as are required for the purpose of monitoring whether and to what extent the recipient is complying with any of the conditions in the notice.

Conduct notices: withdrawal

24

(4) An authorised officer may (instead of amending the notice) withdraw the notice and give a new conduct notice.

Conduct notices: duration

25

In section 241 (duration of conduct notice)—

(2A) But where a new conduct notice was given under section 240(4) that has a commencement date that is later than 12 months before the end of the relevant period in relation to the original notice, that new notice ceases to have effect at the end of the relevant period in relation to the original notice.

;

(4A) For the purposes of subsection (2)(a), the relevant period in relation to a conduct notice is calculated in accordance with this table—

If the authorised officer is aware that the person to whom the notice is given meets the relevant period is such period as may be notified in accordance with subsection (4B) or (4C) up to
1 ordinary condition 2 years
2 ordinary conditions 4 years
3 or more ordinary conditions 5 years
1 significant condition 3 years
1 significant condition and 1 or more other significant or ordinary conditions 5 years

Subsection (4E) makes provision for the relevant period to be extended in certain circumstances. (4B) When an authorised officer gives a person a conduct notice the officer must notify the person of the relevant period calculated by reference to the conditions which the officer is aware the person has met at that time. (4C) If an authorised officer becomes aware that a person in relation to whom a conduct notice has effect has met one or more conditions which were not taken into account when the relevant period was calculated at the time the notice was given, the officer may give the person a notice— (a) stating that the relevant period has been recalculated to take account of the additional conditions, and (b) notifying the person of — (i) the new relevant period as recalculated in accordance with the table in subsection (4A), and (ii) the new date at the end of which the conduct notice will cease to have effect. (4D) For the purposes of the table in subsection (4A)— (a) a condition is significant if it is— (i) a threshold condition listed in section 237(9), or (ii) a condition in section 237A(11), (12) or (13) in respect of which an authorised officer makes a determination (whether in accordance with section 237A(1) or (2) or for the purposes of this paragraph) that meeting the condition should be regarded as significant in view of the purposes of this Part, and (b) a condition is ordinary if it is a threshold condition not listed in section 237(9). (4E) In calculating the relevant period for the purposes of subsection (2)(a) no account is to be taken of any day on all or part of which the effect of the conduct notice in question has been suspended by an authorised officer. (4F) Where an authorised officer suspends the effect of a conduct notice, the officer must, as soon as practicable, notify the person to whom the notice was given of the suspension. (4G) Where an authorised officer determines that the effect of a conduct notice should be resumed, the officer must, as soon as practicable, notify the person to whom the notice was given— (a) that its effect has been resumed, (b) of the number of days that are not to be taken into account in calculating the relevant period in accordance with subsection (4E), and (c) of the new date at the end of which the relevant period is expected to end. (4H) Where a conduct notice has been given to a person and the person is subsequently given a notice under paragraph 1 of Schedule 36 of FA 2008 as it has effect as a result of section 272A (power to obtain information and documents), in calculating the relevant period for the purposes of subsection (2)(a) no account is to be taken of any day on which the person has not complied with that notice. (4I) For the purposes of subsection (4H), a person has not complied with a notice given under that paragraph on each day— (a) beginning with the day after the last day on which the person could have complied with the notice, and (b) ending with the day before the day (or, if more than one, the last day) on which the person provides the information or produces the documents required by the notice. (4J) As soon as reasonably practicable after the day mentioned in subsection (4I)(b), an authorised officer must give the person to whom the conduct notice was given notice of— (a) the number of days that are not to be taken into account in calculating the relevant period, and (b) of the new date at the end of which the relevant period is expected to end.

Defeat notices

26

In section 241A (defeat notices), in subsection (4), for “come to the attention of HMRC” substitute “ first come to the attention of an authorised officer ”.

Monitoring notices: applications to tribunal

27

, or (ii) has provided false or misleading information or documents in relation to the notice,

;

(1A) Where subsection (1B) applies, an authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may apply to the tribunal for approval to give a person (“P”) a monitoring notice. (1B) This subsection applies where— (a) within the period of 6 years after a conduct notice ceases to have effect in relation to P, the officer mentioned in subsection (1A) determines that P— (i) failed to comply with one or more conditions in the notice, or (ii) provided false or misleading information or documents in relation to the notice, and (b) the officer could not reasonably have been expected to make the determination when the conduct notice had effect. (1C) An application under subsection (1A) may not be made after the period of 12 months beginning with the day on which the officer makes the determination mentioned in subsection (1B)(a). (1D) Where subsection (1E) applies, an authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may apply to the tribunal for approval to give a person (“D”) a monitoring notice. (1E) This subsection applies where— (a) at any time before the end of the period of 6 years after a conduct notice ceases to have effect in relation to a person (“P”), an authorised officer determines (whether before or after the notice ceases to have effect) that P— (i) failed to comply with one or more conditions in the notice, or (ii) provided false or misleading information or documents in relation to the notice, (b) before the end of that period, the authorised officer becomes aware that P has made a relevant transfer within the meaning of paragraph 5 of Schedule 33A (promotion structures) to D (whether before or after the notice ceases to have effect), and (c) the officer could not reasonably have been expected— (i) to apply to the tribunal for approval to give P a monitoring notice, or (ii) to give P a monitoring notice following such an application, before the relevant transfer took place. (1F) For the purposes of an application under subsection (1D), any act or omission of P by reference to which the determination mentioned in subsection (1E)(a) was made is to be treated as an act or omission of D. (1G) An application under subsection (1D) may not be made after the period of 12 months beginning with the day on which the officer makes the determination mentioned in subsection (1E)(a).

Threshold conditions

28

Schedule 34 (threshold conditions) is amended as follows.

29

(A1) A person meets this condition if the person fails to comply with any of the following provisions of— (a) Part 7 of FA 2004 (disclosure of tax avoidance schemes); (b) Schedule 17 to F(No. 2)A 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes).

(ca) section 310C (duty of promoter to provide updated information); (cb) section 312(2) (duty of promoter to notify client of reference number);

;

(e) section 316A (duty to provide additional information).

(1A) The provisions of Schedule 17 to F(No.2)A 2017 are— (a) paragraph 11(1) (duty of promoter in relation to notifiable proposals); (b) paragraph 21(3) (duty of promoter to provide updated information); (c) paragraph 23(2) (duty of promoter to notify client of reference number); (d) paragraph 27(3) (duty of promoter to provide details of clients); (e) paragraph 33 (duty to provide additional information).

30

In paragraph 7—

(1) A person meets this condition if one or more of sub-paragraphs (2) to (4) apply in respect of the person.

;

(3) This sub-paragraph applies in respect of a person (“P”) if— (a) another person has been given, in respect of arrangements in relation to which P is a promoter (“the promoted arrangements”)— (i) a pooled arrangements opinion notice, under paragraph 6(2) of Schedule 43A to FA 2013, or (ii) a bound arrangements opinion notice under paragraph 6(4) of that Schedule, (b) the notice in question sets out a report prepared by HMRC of an opinion of the GAAR Advisory Panel in relation to the promoted arrangements that is contained in one or more opinion notices given under paragraph 11(3)(b) of Schedule 43 to FA 2013 or paragraph 6(4)(b) of Schedule 43B to FA 2013, and (c) the opinion notice, or the opinion notices taken together, either— (i) state the joint opinion of all the members of the sub-panel arranged under Schedule 43 or 43B, as the case may be, or (ii) state the opinion of two or more members of the sub-panel. (4) This sub-paragraph applies in respect of a person if— (a) arrangements in relation to which the person is a promoter (“the promoted arrangements”) are equivalent within the meaning of paragraph 24(3) of Schedule 16 to F(No. 2)A 2017 to arrangements that have been referred to the GAAR Advisory Panel under paragraph 26 of that Schedule, (b) one or more opinion notices are given under paragraph 34(3)(b) of Schedule 16 to F(No.2)A 2017 that apply to the promoted arrangements for the purposes of Part 7 of that Schedule, and (c) the notice, or the notices taken together, either— (i) state the joint opinion of all the members of the sub-panel arranged under that Schedule, or (ii) state the opinion of two or more members of that sub-panel.

31

In paragraph 10 (exercise of information powers)—

a requirement imposed by a notice or order given under any of the following provisions— (a) section 308A, 310A, 313ZB, 313A and 313B of FA 2004; (b) paragraphs 1, 2, 5 and 5A of Schedule 36 to FA 2008; (c) paragraphs 16, 19, 28, 29 and 30 of Schedule 17 to F(No.2)A 2017.

SCHEDULE 31

PART 1 — Amendments of Part 7 of FA 2004

1

Part 7 of FA 2004 (disclosure of tax avoidance schemes) is amended as follows.

2

Before section 306 insert—

(305A) (1) This Part makes provision about the disclosure of information in relation to arrangements, or proposed arrangements, that enable, or might be expected to enable, a person to obtain a tax advantage. (2) Among other things, this Part— (a) imposes duties to provide information to HMRC (and others); (b) allows HMRC to allocate reference numbers in relation to arrangements and proposed arrangements (in cases where the disclosure duties have been complied with and in other cases); (c) makes provision about publication of information about arrangements and proposed arrangements, and persons involved in their supply; (d) makes provision about penalties.

3

In section 307(4A) (meaning of “makes a firm approach”), omit “notifiable” in both places.

4

After section 310C insert—

(310D) (1) This section applies where— (a) HMRC have become aware that— (i) a transaction forming part of arrangements has been entered into, (ii) a firm approach has been made to a person in relation to a proposal for arrangements, with a view to making the proposal available for implementation, or (iii) a proposal for arrangements is made available for implementation, and (b) HMRC have reasonable grounds for suspecting that the arrangements are notifiable, or the proposal is notifiable. (2) HMRC may issue a notice to a person explaining that, unless the person is able to satisfy HMRC, before the end of the notice period, that the arrangements are not notifiable or (as the case may be) the proposal is not notifiable, HMRC may allocate a reference number to the arrangements or (in the case of a proposal) the proposed arrangements. (3) But HMRC may not issue a notice under this section before the end of the period of 15 days beginning with the day on which they first become aware that the condition in paragraph (a)(i), (ii) or (iii) of subsection (1) is met. (4) A notice under this section must be issued to any person who, on the day the notice is issued, HMRC reasonably suspect to be a promoter in relation to the arrangements or proposal. (5) A notice under this section may be issued to any other person who HMRC reasonably suspect to be involved in the supply of the arrangements or proposed arrangements.

5

For section 311 substitute—

(311) (1) This section applies in— (a) a subsection (2) case, or (b) a subsection (3) case. (2) A “subsection (2) case” is a case where a person complies, or purports to comply, with section 308(1) or (3), 309(1) or 310 in relation to a notifiable proposal or notifiable arrangements. (3) A “subsection (3) case” is a case where— (a) notice in relation to arrangements or a proposal has been issued in accordance with section 310D (notice of potential allocation of reference number), (b) the notice period has expired, and (c) the person to whom the notice was given has failed to satisfy HMRC, before the expiry of the notice period, that the arrangements are not notifiable or (as the case may be) that the proposal is not notifiable. (4) “The notice period” means— (a) the period of 30 days beginning with the day on which the notice under section 310D is issued, or (b) such longer period as HMRC may direct. (5) HMRC may allocate a reference number to the arrangements or, in the case of a proposal, the proposed arrangements, subject to subsection (6). (6) HMRC may not allocate a reference number to arrangements or proposed arrangements after the time limit for doing so. (7) The time limit for allocating a reference number is— (a) in a subsection (2) case, the end of the period of 90 days beginning with the compliance, or purported compliance, with section 308(1) or (3), 309(1) or 310, as the case may be; (b) in a subsection (3) case, the end of the period of one year beginning with the day after the end of the notice period (see subsection (4)). (8) HMRC may at any time withdraw a reference number allocated to arrangements in a subsection (3) case. (9) The allocation of a reference number to arrangements or proposed arrangements is not to be regarded as constituting an indication by HMRC that the arrangements could as a matter of law result in the obtaining by any person of a tax advantage. (311A) (1) If a reference number is allocated in a case within section 311(2), HMRC must notify the following of the number— (a) the person who has complied, or purported to comply, with section 308(1) or (3), 309(1) or 310, and (b) where the person has complied, or purported to comply, with section 308(1) or (3), any other person— (i) who is a promoter in relation to the proposal (or arrangements implementing it) or the arrangements (or a proposal implemented by them), and (ii) whose identity and address have been notified to HMRC by the person who complied, or purported to comply, with section 308(1) or (3). (2) If a reference number is allocated in a case within section 311(3), HMRC must notify the following of the number— (a) any person who HMRC reasonably suspect to be, or to have been, a promoter in relation to the arrangements or the proposed arrangements, and (b) any other person who HMRC reasonably suspect to be, or to have been, involved in the supply of the arrangements or the proposed arrangements. (3) The duty in subsection (2) applies irrespective of whether the notice under section 310D as a result of which the reference number was allocated has been issued to the person concerned. (311B) (1) This section applies where HMRC have allocated a reference number to arrangements or proposed arrangements in a case within section 311(3). (2) A person who has been notified of the reference number may appeal to the tribunal against its allocation. (3) An appeal under this section may be brought only on the following grounds— (a) that, in issuing the notice under section 310D as a result of which the reference number was allocated, HMRC did not act in accordance with that section; (b) that, in allocating the reference number, HMRC did not act in accordance with section 311; (c) that the arrangements are not in fact notifiable arrangements or, in the case of proposed arrangements, that the proposal for the arrangements is not in fact a notifiable proposal. (4) Notice of appeal under this section must be given to the tribunal in writing before the end of the period of 30 days beginning with the day on which the person is notified of the number by HMRC. (5) Notice may be given after that time if the tribunal give permission. (6) The notice of appeal must specify the grounds of appeal. (7) On an appeal under this section, the tribunal may affirm or cancel HMRC's decision. (8) If the tribunal cancel HMRC's decision, HMRC must withdraw the reference number. (9) Bringing an appeal under this section does not prevent— (a) a power conferred by this Part from being exercised, or (b) a duty imposed by this Part from continuing to apply. (311C) (1) This section applies where HMRC have allocated a reference number to arrangements or proposed arrangements in a case within section 311(3). (2) HMRC may require a relevant person to provide— (a) specified information about the arrangements or proposed arrangements; (b) documents relating to the arrangements or proposed arrangements. (3) In subsection (2), “relevant person” means— (a) any person who HMRC reasonably suspect to be, or to have been, a promoter in relation to the arrangements or the proposed arrangements; (b) any other person who HMRC reasonably suspect to be, or to have been, involved in the supply of the arrangements or the proposed arrangements. (4) HMRC may require information or documents only if they have reasonable grounds for suspecting that the information or documents will assist them in considering the arrangements or proposed arrangements. (5) Where HMRC impose a requirement on a person under subsection (2), the person must comply with the requirement before the end of— (a) the period of 10 working days beginning with the day on which HMRC imposed the requirement, or (b) such longer period as HMRC may direct.

6
7

After section 312 insert—

(312ZA) (1) This section applies where a person is providing (or has provided) services to another person (“the client”) in connection with arrangements or proposed arrangements. (2) The person must, before the end of the period of 30 days beginning with the relevant date, provide the client with prescribed information relating to any reference number allocated in a case within section 311(3) (or, if more than one, any one such reference number) that has been notified to the person (whether by HMRC or any other person) in relation to— (a) the arrangements or proposed arrangements, or (b) any arrangements substantially the same as the arrangements or proposed arrangements (whether involving the same or different parties). (3) In subsection (2), “the relevant date” means the date on which the person has been notified of the reference number. (4) HMRC may give notice that, in relation to arrangements or proposed arrangements specified in the notice, no person is under the duty imposed by subsection (2) after the date specified in the notice.

8

allocated to— (a) the notifiable arrangements or proposed notifiable arrangements, or (b) any arrangements substantially the same as the notifiable arrangements or proposed notifiable arrangements.

(1A) This section also applies where a person (a “client”) to whom a person is providing (or has provided) services in connection with arrangements or proposed arrangements receives prescribed information under section 312ZA relating to the reference number allocated to— (a) the arrangements or proposed arrangements, or (b) any arrangements substantially the same as the arrangements or proposed arrangements.

9

(1) This section applies where a person (“the client”) has been provided with information under section 312(2) or 312ZA(2) (prescribed information about reference number).

10
11

(a) the promoter is subject to the requirement under section 312(2) to provide to the client prescribed information relating to the reference number allocated to— (i) the arrangements, or (ii) any arrangements substantially the same as the arrangements, or (b) the promoter has failed to comply with section 308(1) or (3) in relation to the notifiable arrangements (or the notifiable proposal for them) but would be subject to that requirement if a reference number had been allocated to— (i) the notifiable arrangements, or (ii) any arrangements substantially the same as the arrangements

.

(1A) This section also applies where— (a) a person (“the provider”) is providing (or has provided) services to another person (“the client”) in connection with arrangements or proposed arrangements, and (b) the provider is subject to the requirement under section 312ZA(2) to provide to the client prescribed information relating to the reference number allocated to— (i) the arrangements or proposed arrangements, or (ii) any arrangements substantially the same as the arrangements or proposed arrangements.

(4) In subsection (3) “the relevant period” means— (a) in a case within subsection (1), such period as is prescribed and is a period during which the promoter is or would be subject to the requirement mentioned in that subsection; (b) in a case within subsection (1A), such period as is prescribed and is a period during which the provider is or would be subject to the requirement mentioned in that subsection.

(6) The provider need not comply with subsection (3) in relation to any arrangements at any time after HMRC have given notice under section 312ZA(4) in relation to the arrangements.

12

(a) a person (“the service provider”) is providing or has provided services to another person (“the client”) in connection with arrangements or proposed arrangements, (aa) the service provider has provided HMRC with information in relation to the client under section 313ZA(3), and

.

13

(2) Condition A is that— (a) a person who is a promoter in relation to notifiable arrangements or a notifiable proposal is providing (or has provided) services in connection with the arrangements or proposal to a person (“the client”), or (b) a person is providing (or has provided) services in connection with arrangements or a proposal to a person (“the client”).

14

In section 316 (information to be provided in form and manner specified by HMRC), in subsection (2)—

15

In section 316A (duty to provide additional information), in subsections (1) and (2), after “312(2)” insert “ , 312ZA(2) ”.

16

(1) HMRC may publish information about— (a) any arrangements, or proposed arrangements, to which a reference number is allocated under section 311; (b) where the reference number is allocated in a case within section 311(2), any person who is a promoter in relation to the arrangements or, in the case of proposed arrangements, the proposal; (c) where the reference number is allocated in a case within section 311(3), any person who is or has been— (i) a promoter in relation to the arrangements or proposed arrangements, or (ii) otherwise involved in the supply of the arrangements or proposed arrangements.

(b) any ruling of a court or tribunal relating to— (i) arrangements within subsection (1)(a); (ii) a person within subsection (1)(b), in that person's capacity as a promoter; (iii) a person within subsection (1)(c), in that person's capacity as a promoter or a person otherwise involved in the supply of arrangements or proposed arrangements;

;

(4A) No information may be published under this section in respect of a person involved in the supply of arrangements or proposed arrangements where there are reasonable grounds for believing that the person's involvement is limited to activities subject to legal professional privilege.

(6A) Where the reference number is allocated in a case within section 311(3)— (a) information that identifies a person within subsection (1)(c) may not be published for the first time after the end of the period of one year beginning with the day on which the reference number is allocated; (b) no information that identifies a person within subsection (1)(c) may be published (or continue to be published) after the end of the period of one year beginning with the day on which it is first published. (6B) In determining a period of one year for the purposes of subsection (6A)(a) or (b), no account is to be taken of any period during which HMRC are prohibited from publishing the information because of proceedings before a court or tribunal.

17

In section 316D (section 316C: subsequent judicial rulings), in subsection (1)(a), omit “notifiable”, in both places.

18

In section 318(1) (interpretation of Part 7), for the definition of “reference number” substitute—

“reference number” means a reference number allocated under section 311;

.

PART 2 — Amendments of Schedule 17 to F(No.2)A 2017

19

Schedule 17 to F(No.2)A 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes) is amended as follows.

20

Before Part 1 insert—

(A1) (1) This Schedule makes provision about the disclosure of information in relation to arrangements, or proposed arrangements, that enable, or might be expected to enable, a person to obtain a tax advantage in relation to VAT or another indirect tax. (2) Among other things, this Schedule— (a) imposes duties to provide information to HMRC (and others); (b) allows HMRC to allocate reference numbers in relation to arrangements and proposed arrangements (in cases where the disclosure duties have been complied with and in other cases); (c) makes provision about publication of information about arrangements and proposed arrangements, and persons involved in their supply; (d) makes provision about penalties.

21

In paragraph 10(1) (meaning of “makes a firm approach”), omit “notifiable”.

22

After paragraph 21 insert—

(21A) (1) This paragraph applies where— (a) HMRC have become aware that— (i) a transaction forming part of arrangements has been entered into, (ii) a firm approach has been made to a person in relation to a proposal for arrangements, with a view to making the proposal available for implementation, or (iii) a proposal for arrangements is made available for implementation, and (b) HMRC have reasonable grounds for suspecting that the arrangements are notifiable, or the proposal is notifiable. (2) HMRC may issue a notice to a person explaining that, unless the person is able to satisfy HMRC, before the end of the notice period, that the arrangements are not notifiable or (as the case may be) the proposal is not notifiable, HMRC may allocate a reference number to the arrangements or (in the case of a proposal) the proposed arrangements. (3) But HMRC may not issue a notice under this paragraph before the end of the period of 15 days beginning with the day on which they first become aware that the condition in paragraph (a)(i), (ii) or (iii) of sub-paragraph (1) is met. (4) A notice under this paragraph must be issued to any person who, on the day the notice is issued, HMRC reasonably suspect to be a promoter in relation to the arrangements or proposal. (5) A notice under this paragraph may be issued to any other person who HMRC reasonably suspect to be involved in the supply of the arrangements or proposed arrangements.

23

For paragraph 22 (and the italic heading before it) substitute—

(22) (1) This paragraph applies in— (a) a sub-paragraph (2) case, or (b) a sub-paragraph (3) case. (2) A “sub-paragraph (2) case” is a case where a person complies, or purports to comply, with paragraph 11(1), 12(1), 17(2) or 18(2) in relation to a notifiable proposal or notifiable arrangements. (3) A “sub-paragraph (3) case” is a case where— (a) notice in relation to arrangements or a proposal has been issued in accordance with paragraph 21A (notice of potential allocation of reference number), (b) the notice period has expired, and (c) the person to whom the notice was given has failed to satisfy HMRC, before the expiry of the notice period, that the arrangements are not notifiable or (as the case may be) that the proposal is not notifiable. (4) “The notice period” means— (a) the period of 30 days beginning with the day on which the notice under paragraph 21A is issued, or (b) such longer period as HMRC may direct. (5) HMRC may allocate a reference number to the arrangements or, in the case of a proposal, the proposed arrangements, subject to sub-paragraph (6). (6) HMRC may not allocate a reference number to arrangements or proposed arrangements after the time limit for doing so. (7) The time limit for allocating a reference number is— (a) in a sub-paragraph (2) case, the end of the period of 90 days beginning with the compliance, or purported compliance, with paragraph 11(1), 12(1), 17(2) or 18(2), as the case may be; (b) in a sub-paragraph (3) case, the end of the period of one year beginning with the day after the end of the notice period (see sub-paragraph (4)). (8) HMRC may at any time withdraw a reference number allocated to arrangements in a sub-paragraph (3) case. (9) The allocation of a reference number to arrangements or proposed arrangements is not to be regarded as constituting an indication by HMRC that the arrangements could as a matter of law result in the obtaining by any person of a tax advantage. (22A) (1) If a reference number is allocated in a case within paragraph 22(2), HMRC must notify the following of the number— (a) the person who has complied, or purported to comply, with paragraph 11(1), 12(1), 17(2) or 18(2), and (b) where the person has complied, or purported to comply, with paragraph 11(1) or 12(1), any other person— (i) who is a promoter in relation to the proposal (or arrangements implementing it) or the arrangements (or a proposal implemented by them), and (ii) whose identity and address have been notified to HMRC by the person who complied, or purported to comply, with paragraph 11(1) or 12(1). (2) If a reference number is allocated in a case within paragraph 22(3), HMRC must notify the following of the number— (a) any person who HMRC reasonably suspect to be, or to have been, a promoter in relation to the arrangements or the proposed arrangements, and (b) any other person who HMRC reasonably suspect to be, or to have been, involved in the supply of the arrangements or the proposed arrangements. (3) The duty in sub-paragraph (2) applies irrespective of whether the notice under paragraph 21A as a result of which the reference number was allocated has been issued to the person concerned. (22B) (1) This paragraph applies where HMRC have allocated a reference number to arrangements or proposed arrangements in a case within paragraph 22(3). (2) A person who has been notified of the reference number may appeal to the tribunal against its allocation. (3) An appeal under this paragraph may be brought only on the following grounds— (a) that, in issuing the notice under paragraph 21A as a result of which the reference number was allocated, HMRC did not act in accordance with that paragraph; (b) that, in allocating the reference number, HMRC did not act in accordance with paragraph 22; (c) that the arrangements are not in fact notifiable arrangements or, in the case of proposed arrangements, that the proposal for the arrangements is not in fact a notifiable proposal. (4) Notice of appeal under this paragraph must be given to the tribunal in writing before the end of the period of 30 days beginning with the day on which the person is notified of the number by HMRC. (5) Notice may be given after that time if the tribunal give permission. (6) The notice of appeal must specify the grounds of appeal. (7) On an appeal under this paragraph, the tribunal may affirm or cancel HMRC's decision. (8) If the tribunal cancel HMRC's decision, HMRC must withdraw the reference number. (9) Bringing an appeal under this paragraph does not prevent— (a) a power conferred by this Part of this Schedule from being exercised, or (b) a duty imposed by this Part of this Schedule from continuing to apply. (22C) (1) This paragraph applies where HMRC have allocated a reference number to arrangements or proposed arrangements in a case within paragraph 22(3). (2) HMRC may require a relevant person to provide— (a) specified information about the arrangements or proposed arrangements; (b) documents relating to the arrangements or proposed arrangements. (3) In sub-paragraph (2), “relevant person” means— (a) any person who HMRC reasonably suspect to be, or to have been, a promoter in relation to the arrangements or the proposed arrangements; (b) any other person who HMRC reasonably suspect to be, or to have been, involved in the supply of the arrangements or the proposed arrangements. (4) HMRC may require information or documents only if they have reasonable grounds for suspecting that the information or documents will assist them in considering the arrangements or proposed arrangements. (5) Where HMRC impose a requirement on a person under sub-paragraph (2), the person must comply with the requirement before the end of— (a) the period of 10 working days beginning with the day on which HMRC imposed the requirement, or (b) such longer period as HMRC may direct.

24

In the italic heading before paragraph 23, at the end insert “ : paragraph 22(2) case ”.

25
26

After paragraph 23 insert—

(23A) (1) This paragraph applies where a person is providing (or has provided) services to any person (“the client”) in connection with arrangements or proposed arrangements. (2) The person must, before the end of the period of 30 days beginning with the relevant date, provide the client with prescribed information relating to any reference number allocated in a case within paragraph 22(3) (or, if more than one, any one such reference number) that has been notified to the person (whether by HMRC or any other person) in relation to— (a) the arrangements or proposed arrangements, or (b) any arrangements substantially the same as the arrangements or proposed arrangements (whether involving the same or different parties). (3) “The relevant date” means the date on which the person has been notified of the reference number. (4) HMRC may give notice that, in relation to arrangements or proposed arrangements specified in the notice, no person is under the duty under sub-paragraph (2) after the date specified in the notice.

27

(2) Sub-paragraph (3) applies where— (a) the client receives prescribed information under paragraph 23 relating to the reference number allocated to— (i) the arrangements or proposed arrangements, or (ii) any arrangements substantially the same as the arrangements or proposed arrangements; or (b) the client receives prescribed information under paragraph 23A relating to the reference number allocated to— (i) the arrangements or proposed arrangements, or (ii) any arrangements substantially the same as the arrangements or proposed arrangements.

28

In the italic heading before paragraph 25, omit “to promoter”.

29

(1) This paragraph applies where a person (“the client”) has been provided with information under paragraph 23(2) or 23A(2) (prescribed information about reference number).

30

For the italic heading before paragraph 26 substitute “ Duty of parties to notify HMRC of reference number etc ”.

31
32

In the italic heading before paragraph 27 omit “of promoter”.

33

(a) the promoter is subject to the requirement under paragraph 23(2) to provide to the client prescribed information relating to the reference number allocated to— (i) the arrangements, or (ii) any arrangements substantially the same as the arrangements; or (b) the promoter has failed to comply with paragraph 11(1) or 12(1) in relation to the notifiable arrangements (or the notifiable proposal for them) but would be subject to that requirement if a reference number had been allocated to— (i) the notifiable arrangements, or (ii) any arrangements substantially the same as the arrangements.

(1A) This paragraph also applies where— (a) a person (“the provider”) is providing (or has provided) services to another person (“the client”) in connection with arrangements or proposed arrangements, and (b) the provider is subject to the requirement under paragraph 23A(2) to provide to the client prescribed information relating to the reference number allocated to— (i) the arrangements or proposed arrangements, or (ii) any arrangements substantially the same as the arrangements or proposed arrangements.

(4) In sub-paragraph (3) “the relevant period” means— (a) in a case within sub-paragraph (1), such period as is prescribed and is a period during which the promoter is or would be subject to the requirement mentioned in that sub-paragraph; (b) in a case within sub-paragraph (1A), such period as is prescribed and is a period during which the provider is or would be subject to the requirement mentioned in that sub-paragraph.

(6) The provider need not comply with sub-paragraph (3) in relation to any arrangements at any time after HMRC have given notice under paragraph 23A(4) in relation to the arrangements.

34

(a) a person (“the service provider”) is providing or has provided services to another person (“the client”) in connection with arrangements or proposed arrangements, (aa) the service provider has provided HMRC with information in relation to the client under paragraph 27(3), and

.

35

In paragraph 33 (duty to provide additional information), in sub-paragraphs (1) and (2), after “23(2)” insert “ , 23A(2) ”.

36

In paragraph 34 (information to be provided in form and manner specified by HMRC), in sub-paragraph (2)—

37

(1) HMRC may publish information about— (a) any arrangements, or proposed arrangements, to which a reference number is allocated under paragraph 22; (b) where the reference number is allocated in a case within paragraph 22(2), any person who is a promoter in relation to the arrangements or, in the case of proposed arrangements, the proposal; (c) where the reference number is allocated in a case within paragraph 22(3), any person who is or has been— (i) a promoter in relation to the arrangements or proposed arrangements, or (ii) otherwise involved in the supply of the arrangements or proposed arrangements.

(b) any ruling of a court or tribunal relating to— (i) arrangements within sub-paragraph (1)(a); (ii) a person within sub-paragraph (1)(b), in that person's capacity as a promoter; (iii) a person within sub-paragraph (1)(c), in that person's capacity as a promoter or a person otherwise involved in the supply of arrangements or proposed arrangements;

;

(4A) No information may be published under this paragraph in respect of a person involved in the supply of arrangements or proposed arrangements where there are reasonable grounds for believing that the person's involvement is limited to activities subject to legal professional privilege.

(7) Where the reference number is allocated in a case within paragraph 22(3)— (a) information that identifies a person within sub-paragraph (1)(b) or (c) may not be published for the first time after the end of the period of one year beginning with the day on which the reference number is allocated; (b) no information that identifies a person within sub-paragraph (1)(b) or (c) may be published (or continue to be published) after the end of the period of one year beginning with the day on which it is first published. (8) In determining a period of one year for the purposes of sub-paragraph (7)(a) or (b), no account is to be taken of any period during which HMRC are prohibited from publishing the information because of proceedings before a court or tribunal.

38

In paragraph 37 (paragraph 36: subsequent judicial rulings), in sub-paragraph (1)(a), omit “notifiable”, in both places.

39

(fa) paragraph 22C (duty to provide further information requested by HMRC: paragraph 22(3) case);

;

(ga) paragraph 23A(2) (duty to notify client of reference number: paragraph 22(3) case)

.

A failure to comply with paragraph 22C The first day after the end of the period before the end of which the person must comply with paragraph 22C

.

40

In paragraph 40 (penalties: supplementary), in sub-paragraph (2), after paragraph (a) (but before the “and” immediately after it) insert—

(aa) in the case of a penalty for a person's failure to comply with paragraph 22C, to the amount of any fees received, or likely to have been received, by the person in connection with the arrangements, the proposed arrangements or the proposal,

.

41

In paragraph 57(1) (interpretation of Schedule), for the definition of “reference number” substitute—

“reference number” means a reference number allocated under paragraph 22;

.

PART 3 — Other amendments

42

(cc) section 311C (duty to provide further information requested by HMRC: section 311(3) case);

;

(dza) section 312ZA(2) (duty to notify client of reference number: section 311(3) case);

.

A failure to comply with section 311C The first day after the end of the period before the end of which the person must comply with section 311C

.

(2ZAA) Subsection (2ZAB) applies where— (a) a person fails to comply with a provision mentioned in subsection (2)(a), (b) or (c) in respect of arrangements or proposed arrangements, and (b) a reference number is subsequently allocated to the arrangements or proposed arrangements in a case within section 311(3) of the Finance Act 2004 (case where notice given under section 310D)). (2ZAB) Where this subsection applies, the failure to comply is taken for the purposes of this section to have ceased on the day before the reference number is allocated, if it has not already ceased.

(aa) in the case of a penalty for a person's failure to comply with section 311C, to the amount of any fees received, or likely to have been received, by the person in connection with the arrangements, the proposed arrangements or the proposal,

.

43

(5) Where an accelerated payment notice is given by virtue of the Condition C requirement in section 219(4)(b), and— (a) under section 311(8) or 311B(8) of FA 2004, HMRC withdraw the reference number allocated to the chosen arrangements, or to proposed arrangements implemented by the chosen arrangements, or (b) HMRC give notice under section 312(6) or 312ZA(4) of FA 2004, with the result that persons are no longer under the duty in section 312(2) or (as the case may be) section 312ZA(2) of that Act in relation to the chosen arrangements, HMRC must withdraw the accelerated payment notice, to the extent that it was given by virtue of the Condition C requirement.

PART 4 — Commencement

44

This Schedule comes into force on the day on which this Act is passed (“the commencement date”), subject to paragraphs 45 and 46.

45
46

SCHEDULE 32

PART 1 — New Schedule to FA 2013

1

After Schedule 43C of FA 2013 insert—

SCHEDULE 43D (1) (1) This Schedule makes provision about the operation of the general anti-abuse rule in relation to partnerships. (2) This Schedule applies where— (a) a return is made under section 12AA of TMA 1970 (a “section 12AA partnership return”), or (b) a return is made in accordance with regulations under paragraph 10 of Schedule A1 to TMA 1970 (a “Schedule A1 partnership return”). (2) In this Schedule, “the responsible partner” means— (a) in relation to the making of a section 12AA partnership return, the person who delivered the return or their successor (within the meaning of section 12AA(11) of TMA 1970); (b) in relation to the making of a Schedule A1 partnership return, the nominated partner (within the meaning of paragraph 5 of Schedule A1 to TMA 1970). (3) (1) For the purposes of this Schedule, a partnership return is regarded as made on the basis that a particular tax advantage arises (or might arise) to a partner from particular arrangements if— (a) it is made on the basis that an increase or reduction in one or more of the amounts mentioned in section 12AB(1) of TMA 1970 (amounts in the partnership statement in a partnership return) results (or might result) from those arrangements, and (b) that increase or reduction results (or might result) in that tax advantage for the partner. (2) In sub-paragraph (1) and in the following provisions of this Schedule “partnership return” means a section 12AA partnership return or a Schedule A1 partnership return. (4) (1) If an officer of Revenue and Customs considers, in relation to a partnership— (a) that a partnership return has been made on the basis that a tax advantage arises (or might arise) to one or more partners from tax arrangements that are abusive, and (b) that, on the assumption that the advantage does arise from tax arrangements that are abusive, it ought to be counteracted under section 209, the officer may give a written notice to that effect (a “protective GAAR notice”) to the responsible partner. (2) Subsections (2) to (9) of section 209AA apply in relation to a protective GAAR notice given under this paragraph as they apply in relation to a protective GAAR notice given under that section, subject to the modifications in sub-paragraphs (3) and (4). (3) Section 209AA(3) is to be read as if— (a) for “a return made by the person, and” there were substituted “ the partnership return ”, and (b) paragraph (b) were omitted. (4) Section 209AA(8) is to be read as if, for “212A”, there were substituted “ 212B ”. (5) (1) If a designated HMRC officer considers that, in relation to a partnership— (a) a partnership return has been made on the basis that a tax advantage has arisen to one or more partners from tax arrangements that are abusive, and (b) the tax advantage ought to be counteracted under section 209, the officer may give the responsible partner a written notice under this paragraph. (2) A partner who appears to a designated HMRC officer to fall within sub-paragraph (1)(a) is a “relevant partner” for the purposes of this Part of this Schedule. (3) The notice must— (a) specify each relevant partner, the arrangements and the tax advantage, (b) explain why the officer considers that a tax advantage has arisen to each relevant partner from tax arrangements that are abusive, (c) set out the counteraction that the officer considers ought to be taken, (d) inform the responsible partner of the period for making representations under paragraph 4 of Schedule 43, and (e) explain the effect of— (i) paragraphs 5 and 6 of Schedule 43, and (ii) sections 209(8) and 212B. (4) The notice may set out steps that may be taken to avoid the proposed counteraction. (5) If, after the notice has been given, it appears to a designated HMRC officer that the tax advantage has not in fact arisen to a partner specified in the notice, the officer must amend the notice accordingly. (6) Where a designated HMRC officer so amends a notice— (a) it is treated as having been given in the amended form, and (b) the officer may take such other steps as the officer considers appropriate. (6) Where an officer gives a notice under paragraph 5 in respect of a tax advantage, this Part of this Act has effect in relation to the tax advantage with the modifications in paragraph 7. (7) (1) Schedule 43 (procedural requirements) has effect with the following modifications. (2) Schedule 43 is to be read as if paragraphs 1A and 3 were omitted. (3) References to a notice given under paragraph 3 of Schedule 43 are to be read as if they were to a notice given under paragraph 5 of this Schedule. (4) In paragraphs 4 and 6 to 12, references to the taxpayer are to be read as if they were to the responsible partner. (5) Schedule 43 is to be read as if, for paragraphs 4A and 4B (and the headings before those paragraphs), there were substituted— (4A) (1) Where, in respect of a partnership— (a) a designated HMRC officer gives a notice under paragraph 5 of Schedule 43D in respect of a tax advantage arising to one or more partners, (b) the closed period mentioned in section 209(8) has not begun, and (c) the responsible partner— (i) amends a partnership return or claim to counteract the tax advantage, and (ii) notifies HMRC of that fact, the matter is not to be referred to the GAAR Advisory Panel. (2) Where a tax enquiry is in progress, no enactment limiting the time during which amendments may be made to returns or claims operates to prevent the responsible partner taking the action mentioned in sub-paragraph (1)(c)(i) and (ii) before the enquiry is closed. (3) No appeal may be brought, by virtue of a provision mentioned in sub-paragraph (4), against an amendment made by a closure notice in respect of a tax enquiry, to the extent that the amendment takes into account an amendment made by the responsible partner to a return or claim as mentioned in sub-paragraph (1)(c). (4) The provisions are— (a) section 31(1)(b) or (c) of TMA 1970, (b) paragraph 9 of Schedule 1A to TMA 1970. (4B) (1) Where, in respect of a partnership— (a) a designated HMRC officer gives a notice under paragraph 5 of Schedule 43D in respect of a tax advantage arising to one or more partners, (b) the closed period mentioned in section 209(8) has not begun, and (c) a partner mentioned in paragraph (a) takes all necessary action to enter into an agreement with HMRC (in writing) for the purpose of relinquishing the tax advantage, the partner is not to be treated as a relevant partner for the purposes of Part 3 of Schedule 43D. (2) As soon as is practicable after the beginning of the closed period, the notice given under paragraph 5 of Schedule 43D must be amended by a designated HMRC officer so each partner to whom sub-paragraph (1) applies is no longer specified in it. (3) Where a notice is amended in accordance with sub-paragraph (2), the notice is treated as having been given in the amended form. (4) If a partner to whom sub-paragraph (1) applies fails to enter into the written agreement, HMRC may proceed as if that sub-paragraph had not applied in relation to the partner (and accordingly, as if the partner were a relevant partner). (4C) Paragraph 5 and 6 apply if, immediately before the beginning of the closed period mentioned in section 209(8)— (a) the responsible partner has not taken the action described in paragraph 4A(1)(c), and (b) there is at least one relevant partner. (8) (1) A designated HMRC officer may give a notice, or do anything else, under this Part of this Schedule where the officer considers that a tax advantage might have arisen. (2) Accordingly, any notice given by a designated HMRC officer under paragraph 5 may be expressed to be given on the assumption that the tax advantage does arise (without agreeing that it does). (9) Anything that may or must be done by a given designated HMRC officer under this Part of this Schedule may be done instead by any other designated HMRC officer. (10) (1) If a designated HMRC officer— (a) has the power to give to a person (“R”) a pooling notice under paragraph 1(3) or a notice of binding under paragraph 2(2) of Schedule 43A in respect of a tax advantage arising from tax arrangements (“R's arrangements”), and (b) considers that a partnership return has been made on the basis that the tax advantage has arisen to R, or to R and one or more of R's partners, from R's arrangements, the officer may give the pooling notice or notice of binding to the responsible partner under this paragraph. (2) A partner (including R) who appears to a designated HMRC officer to fall within sub-paragraph (1)(b) is a “relevant partner” for the purposes of this Part of this Schedule. (3) If, after the notice has been given, it appears to a designated HMRC officer that the tax advantage has not in fact arisen to a partner specified in the notice, the officer must amend the notice accordingly. (4) Where a designated HMRC officer so amends the notice— (a) it is treated as having been given in the amended form, and (b) the officer may take such other steps as the officer considers appropriate. (5) The officer may not give a pooling notice under this paragraph if a notice under paragraph 5 has been given in respect of R's arrangements. (6) The officer may not give a notice of binding under this paragraph if, in respect of R's arrangements, one of the following notices has been given— (a) a pooling notice under this paragraph, or (b) a notice under paragraph 5. (11) Where a pooling notice or notice of binding is given to the responsible partner under paragraph 10, this Part of this Act has effect in relation to the tax advantage with the modifications in paragraphs 12 and 13. (12) (1) Schedule 43A (procedural requirements: pooling notices and notices of binding) has effect with the following modifications. (2) Paragraph 1 is to be read as if, in sub-paragraph (3A), after “lead arrangements” there were inserted “ (whether under this Schedule or Schedule 43D) ”. (3) Paragraph 3 is to be read as if— (a) in sub-paragraph (2)(a), after “specify” there were inserted “ each relevant partner, ”, (b) in sub-paragraph (2)(c), for “R” there were substituted “ each relevant partner ”, and (c) in sub-paragraph (3), for “R may” there were substituted “ may be taken ”. (4) Schedule 43A is to be read as if, for paragraph 4 (and the heading before it), there were substituted— (4) (1) Where, in respect of a partnership— (a) a designated HMRC officer gives a pooling notice or notice of binding under paragraph 10 of Schedule 43D in respect of a tax advantage arising to one or more partners, (b) the closed period mentioned in section 209(9) has not begun, and (c) the responsible partner— (i) amends a partnership return or claim to counteract the tax advantage, and (ii) notifies HMRC of that fact, the responsible partner is treated for the purposes of paragraphs 6 to 9 and Schedule 43B as not having been given the notice in question. (2) Where a tax enquiry is in progress, no enactment limiting the time during which amendments may be made to returns or claims operates to prevent the responsible partner taking the action mentioned in sub-paragraph (1) before the enquiry is closed. (3) No appeal may be brought, by virtue of a provision mentioned in sub-paragraph (4), against an amendment made by a closure notice in respect of a tax enquiry, to the extent that the amendment takes into account an amendment made by the responsible partner to a return or claim as mentioned in sub-paragraph (1)(c). (4) The provisions are— (a) section 31(1)(b) or (c) of TMA 1970, (b) paragraph 9 of Schedule 1A to TMA 1970. (4A) (1) Where, in respect of a partnership— (a) a designated HMRC officer gives a pooling notice or notice of binding under paragraph 10 of Schedule 43D in respect of a tax advantage arising to one or more partners, (b) the closed period mentioned in section 209(9) has not begun, and (c) a partner mentioned in paragraph (a) takes all necessary action to enter into an agreement with HMRC (in writing) for the purpose of relinquishing the tax advantage, the partner is not to be treated as a relevant partner for the purposes of Part 4 of Schedule 43D. (2) As soon as is practicable after the beginning of the closed period, the pooling notice or notice of binding must be amended by a designated HMRC officer so each partner to whom sub-paragraph (1) applies is no longer specified in it. (3) Where a notice is amended in accordance with sub-paragraph (2), the notice is treated for the purposes of paragraphs 6 to 9 and Schedule 43B as having been given in the amended form. (4) If a partner to whom sub-paragraph (1) applies fails to enter into the written agreement, HMRC may proceed as if that sub-paragraph had not applied in relation to the partner (and accordingly, as if the partner were a relevant partner). (5) Paragraph 7(3)(a) is to be read as if “to the person” were omitted. (6) Paragraph 8(1) is to be read as if for “paragraph 1(3)” there were substituted “ paragraph 10 of Schedule 43D. ” (7) Paragraph 10(b) is to be read as if for “the person concerned” there were substituted “ the responsible partner ”. (8) Paragraph 9(1)(a) is to be read as if for “paragraph 2” there were substituted “ paragraph 10 of Schedule 43D ”. (9) Paragraph 11(c) is to be read as if “to a person” were omitted. (13) (1) Schedule 43B to FA 2013 (procedural requirements: generic referral of tax arrangements) has effect with the modifications in sub-paragraph (2). (2) Paragraph 1 is to be read as if— (a) in sub-paragraph (1)(a), for “paragraph 1(3) of Schedule 43A” there were substituted “ paragraph 10 of Schedule 43D ”, (b) for the words before sub-paragraph (b)(i), there were substituted “ the relevant corrective action has been taken before ”, and (c) after sub-paragraph (5), there were inserted— (6) For the purposes of sub-paragraph (1)(b) the “relevant corrective action” is taken if (and only if) in respect of the tax advantage arising out of the lead arrangements— (a) the responsible partner has taken the action mentioned in paragraph 4A(1)(c) of Schedule 43, or (b) each of the relevant partners in question have taken the action described in paragraph 4B(1)(c) of that Schedule. (14) (1) A designated HMRC officer may give a notice, or do anything else, under this Part of this Schedule where the officer considers that a tax advantage might have arisen. (2) Accordingly, any notice given by a designated HMRC officer under paragraph 10 may be expressed to be given on the assumption that the tax advantage does arise (without agreeing that it does). (15) Anything that may or must be done by a given designated HMRC officer under this Part of this Schedule may be done instead by any other designated HMRC officer.

PART 2 — Minor and consequential amendments to Part 5 of FA 2013

2

Part 5 of FA 2013 is amended as follows.

3

(6A) The procedural requirements mentioned in subsection (6)(a) include any procedural requirements which apply under or by virtue of Schedule 43D (which makes provision in relation to partnerships).

(8) Where a matter is referred to the GAAR Advisory Panel under paragraph 5 or 6 of Schedule 43 in relation to any tax arrangements, no GAAR-related adjustments may be made in the period (“the closed period”) that— (a) begins with the 31st day after the end of the 45 day period mentioned in paragraph 4(1) of Schedule 43, and (b) ends immediately before the day on which the notice under paragraph 12 of Schedule 43 is given in relation to the tax arrangements. (9) Where a pooling notice or notice of binding has been given in relation to any tax arrangements, no GAAR-related adjustments may be made in the period (“the closed period”) that— (a) begins with the 31st day after the day on which the notice is given, and (b) ends immediately before the day on which a notice under paragraph 8(2) or 9(2) of Schedule 43A, or a notice under paragraph 8(2) of Schedule 43B, is given in relation to the tax arrangements (as the case may be).

4

After section 209AB insert—

(209ABA) (1) This section applies in the case of any particular adjustments in respect of a particular period or matter (“the adjustments concerned”) if, in relation to a partnership— (a) the responsible partner is given a notice under paragraph 5 or 10 of Schedule 43D (“the Schedule 43D notice”) that specifies the adjustments concerned (whether or not other adjustments are specified), (b) the Schedule 43D notice is given within the relevant time limit applicable to the adjustments concerned, and (c) the adjustments concerned have not been specified in a protective GAAR notice given before the time at which the Schedule 43D notice is given. (2) The Schedule 43D notice is given within the relevant time limit if— (a) it is given within the ordinary assessing time limit applicable to the adjustments concerned, or (b) in a case where a tax enquiry is in progress into a partnership return made by the responsible partner and the particular adjustments concerned relate to the matters contained in the return, it is given no later than the time when the enquiry is completed. (3) The adjustments concerned have effect as if they are made by virtue of section 209. (4) If, in the case of the specified adjustments (whether made by virtue of section 209 or otherwise)— (a) notice of appeal is not given or notice of appeal is given but the appeal is subsequently withdrawn or determined by agreement, and (b) no final GAAR counteraction notice is given, the Schedule 43D notice has effect for all purposes (other than the purposes of section 212B) as if it had been given as a final GAAR counteraction notice (and, accordingly, as if the GAAR procedural requirements had been complied with). (5) In any case not falling within subsection (4)— (a) the adjustments concerned have no effect (so far as they are made by virtue of section 209) unless they (or lesser adjustments) are subsequently specified in a final GAAR counteraction notice, but (b) the giving of the Schedule 43D notice is treated as meeting the requirements of section 209(6)(b) in the case of that final GAAR counteraction notice. (6) In subsection (1) “protective GAAR notice” means a protective GAAR notice given under section 209AA or paragraph 4 of Schedule 43D. (7) In this section “the responsible partner” and “partnership return” have the same meaning as in Schedule 43D.

5
6

In section 210 (consequential relieving adjustments)—

(10) For the purposes of subsection (1)(b), HMRC must be notified— (a) in a case where Schedule 43D applies, by the responsible partner (within the meaning of that Schedule), and (b) in any other case, by the person to whom the tax advantage would have arisen.

7

In section 212A (penalty), in subsection (1)(c)(ii) for “paragraph (c)” substitute “ paragraph (b) ”.

8

After section 212A insert—

(212B) (1) This section applies if, in respect of a partnership— (a) the responsible partner has been given a notice under— (i) paragraph 12 of Schedule 43, (ii) paragraph 8 or 9 of Schedule 43A, or (iii) paragraph 8 of Schedule 43B, stating that a tax advantage is to be counteracted, and (b) the tax advantage, so far as arising to a partner (P) in the partnership, has been counteracted by the making of adjustments under section 209. (2) P is liable to pay a penalty of an amount equal to 60% of the value of the counteracted tax advantage. (3) Schedule 43C— (a) gives the meaning of “the value of the counteracted tax advantage”, and (b) makes other provision in relation to penalties under this section. (4) For the meaning of “the responsible partner” see paragraph 2 of Schedule 43D.

9

In section 214(1)—

10

(14) Anything that may or must be done by a given designated HMRC officer under this Schedule may be done instead by any other designated HMRC officer.

11
12
13

(1) The “value of the counteracted tax advantage” is— (a) for a penalty under section 212A, the additional amount due or payable in respect of tax as a result of the counteraction mentioned in subsection (1)(d) of that section, and (b) for a penalty under section 212B, the additional amount due or payable in respect of tax (by the partner in question) as a result of the counteraction mentioned in subsection (1)(b) of that section.

,

(a) notify— (i) where the penalty is under section 212A, the person who is liable for it; (ii) where the penalty is under section 212B, the person who is liable for it and the responsible partner.

, and

(1A) Where the penalty is under section 212B, an appeal against it must be brought by the responsible partner.

SCHEDULE 33

Meaning of “authorisation”, “authorised activity” and “licensing authority” etc

1
Authorisation Authorised activity Licensing authority Category
A licence under section 46 of TPCA 1847 Driving a hackney carriage The Commissioners (within the meaning of TPCA 1847) 1
A licence under section 8 of MPCA 1869 Driving a hackney carriage (London) Transport for London 1
A licence under section 9 of PCCA 1975 Driving a private hire vehicle (Plymouth) Plymouth City Council 1
A licence under section 51 of LG(MP)A 1976 Driving a private hire vehicle A district council (within the meaning of Part 2 of LG(MP)A 1976) 1
A licence under section 13 of PHV(L)A 1998 Driving a private hire vehicle (London) The licensing authority (within the meaning of PHV(L)A 1998) 1
A licence under section 13 of PCCA 1975 Operating a private hire vehicle (Plymouth) Plymouth City Council 2
A licence under section 55 of LG(MP)A 1976 Operating a private hire vehicle A district council (within the meaning of Part 2 of LG(MP)A 1976) 2
A licence under section 3 of PHV(L)A 1998 Operating a private hire vehicle (London) The licensing authority (within the meaning of PHV(L)A 1998) 2
A site licence under SMDA 2013 (see section 2 of that Act) Carrying on business as a scrap metal dealer at a site A local authority (within the meaning of SMDA 2013) 3
A collector's licence under SMDA 2013 (see section 2 of that Act) Carrying on business as a scrap metal dealer as a mobile collector A local authority (within the meaning of SMDA 2013) 4

First-time application: licensing authority required to give information about tax compliance

2

Renewed application: licensing authority required to obtain confirmation of tax check

3

HMRC required to make arrangements in connection with tax checks

4

Tax checks

5

Requirement to confirm completion of tax check ceases to apply if HMRC in default

6

Disclosure of information

7

section 19 of CRCA 2005 (offence of wrongful disclosure) applies in relation to that disclosure as it applies in relation to a disclosure in contravention of section 20(9) of that Act.

Regulations

8

Interpretation

9

In this Schedule—

Partnerships

10

Consequential amendments

11

(12) Subsection (13) applies where— (a) the application mentioned in subsection (7) is an application for a licence under section 8 of the Metropolitan Public Carriage Act 1869 (taxi driver licences), (b) at any time after the application is made, the licensing authority requests the applicant to give it further information for the purpose of enabling it to make a request, or make a further request, under paragraph 3(2)(a) of Schedule 33 to the Finance Act 2021 (request for confirmation of completed tax check) in relation to the application, and (c) at the end of the relevant period, the licensing authority continues to be prevented from considering the application by virtue of paragraph 3(2) of that Schedule to that Act. (13) The existing licence mentioned in subsection (7) expires at the end of the relevant period. (14) In subsections (12) and (13) “the relevant period” means— (a) the period of 28 days beginning with the day on which the request under subsection (12)(b) is made, or (b) if the final day of that period is earlier than the day on which (disregarding subsections (7) and (13)) the existing licence mentioned in subsection (7) expires, the period ending with that later day.

(aa) if— (i) at any time after the application is made, the local authority requests the applicant to give it further information for the purpose of enabling it to make a request, or make a further request, under paragraph 3(2)(a) of Schedule 33 to the Finance Act 2021 (request for confirmation of completed tax check) in relation to the application, and (ii) at the end of the relevant period, the local authority continues to be prevented from considering the application by virtue of paragraph 3(2) of that Schedule to that Act, the licence expires at the end of that period;

.

(2A) In sub-paragraph (2)(aa) “the relevant period” means— (a) the period of 28 days beginning with the day on which the request under sub-paragraph (2)(aa)(i) is made, or (b) if the final day of that period is earlier than the day on which (disregarding sub-paragraph (2)) the licence expires, the period ending with that later day.

SCHEDULE 34

1

Schedule 36 to FA 2008 (information and inspection powers) is amended as follows.

Disclosure of third party or financial institution notice

2

After paragraph 51 insert—

(51A) (1) This paragraph applies if— (a) a person (“P”) is given a third party notice or financial institution notice (“the notice”), and (b) the tribunal has disapplied the requirement in paragraph 4(1) or 4A(7)(a) (as the case may be) to give a copy of the notice to the taxpayer to whom it relates. (2) The notice may include a requirement that P must not disclose the notice, or anything relating to it, to— (a) the taxpayer to whom the notice relates, or (b) any other person, except for a purpose relating to compliance with the notice. (3) A requirement imposed under sub-paragraph (2) has effect for a period of 12 months beginning with the day on which P is given the notice unless, before the end of that period— (a) the requirement is withdrawn in accordance with sub-paragraph (4), or (b) the period is extended in accordance with sub-paragraph (5). (4) An officer of Revenue and Customs may, by notice in writing to P, withdraw a requirement imposed under sub-paragraph (2). (5) An officer of Revenue and Customs may— (a) by notice in writing to P, extend the period for which a requirement imposed under sub-paragraph (2) has effect for a further period of 12 months (beginning with the day after the last day of the previous period), and (b) do so on one or more occasions. (6) An officer of Revenue and Customs may act under sub-paragraph (4) or (5) only if— (a) the officer is an authorised officer of Revenue and Customs, or (b) an authorised officer of Revenue and Customs has agreed to the withdrawal of the requirement or the extension of the period (as the case may be). (7) An authorised officer of Revenue and Customs may only extend, or agree to the extension of, a period under sub-paragraph (5) if that officer has reasonable grounds for believing that not doing so might prejudice the assessment or collection of tax. (51B) (1) A person who breaches a requirement imposed under paragraph 51A (not to disclose a notice or anything relating to it) is liable to a penalty of £1,000. (2) If a person becomes liable for a penalty under sub-paragraph (1)— (a) HMRC may assess the penalty, and (b) if they do so, they must notify the person. (3) The assessment must be made within the period of 12 months beginning with the date on which the breach of the requirement first came to the attention of an officer of Revenue and Customs. (4) Paragraph 41 applies in relation to the sum specified in sub-paragraph (1) above as it applies in relation to the sums mentioned in paragraph 41(1) but as if— (a) the reference in paragraph 41(2)(a) to this Act were to FA 2021, and (b) paragraph 41(3) prevented the regulations from applying to any breach committed before the date on which the regulations come into force. (51C) (1) A person may appeal a decision of an officer of Revenue and Customs that a penalty is payable by the person under paragraph 51B. (2) Paragraph 48 (procedure on appeal against penalty) applies in relation to an appeal under this paragraph as it applies in relation to an appeal under paragraph 47(1)(a) but as if the reference to the notification under paragraph 46 were to the notification under paragraph 51B(2)(b). (3) Paragraph 49 (enforcement of penalty) applies in relation to a penalty under paragraph 51B as it applies in relation to a penalty under paragraph 39 but as if the reference to the notification under paragraph 46 were to the notification under paragraph 51B(2)(b).

Increased daily default penalty

3

The existing text of paragraph 47 (right to appeal against penalty) is renumbered as sub-paragraph (1) and after that sub-paragraph as renumbered insert—

(2) But sub-paragraph (1)(b) does not give a right of appeal against the amount of an increased daily penalty payable as a result of paragraph 49A.

4

In paragraph 48 (procedure on appeal against penalty)—

5

(3) If the tribunal decides that an increased daily penalty should be assessable— (a) the tribunal must determine the day from which the increased daily penalty is to apply and the maximum amount of that penalty (“the new maximum amount”), and (b) from that day, paragraph 40(2) has effect in the person's case as if the new maximum amount were substituted for the amount for the time being specified there. (4) The new maximum amount may not be more than £1,000.

6
7

Omit paragraph 49C.

Power to give taxpayer notice following land transaction return

8

(7) Condition D is that relief from stamp duty land tax has been given in respect of the transaction and the notice is given for the purpose of checking whether— (a) the relief is withdrawn to any extent under a provision mentioned in section 81 or 81ZA of FA 2003, or (b) paragraph 6 of Schedule 6B to FA 2003 (transfers involving multiple dwellings) applies. (8) Where condition D is met (and not any of conditions A to C), a taxpayer notice may not be given by virtue of this paragraph after the end of the period of 4 years beginning with the effective date of the transaction (but see sub-paragraph (9) in relation to PAIF seeding relief and COACS seeding relief). (9) Where condition D is met because the notice is given for the purpose of checking whether the relief is withdrawn to any extent under a paragraph of Schedule 7A to FA 2003 (PAIF seeding relief and COACS seeding relief), the reference in sub-paragraph (8) to the effective date of the transaction is to be read as a reference to the first day of the control period within the meaning of that Schedule (see paragraph 21 of that Schedule). (10) “Effective date” has the same meaning for the purposes of sub-paragraph (8) as for the purposes of Part 4 of FA 2003 (see section 119 of that Act).

Commencement

9

The amendments made by paragraph 8 have effect whenever the land transaction return under section 76 of FA 2003 was delivered.

Main rates of income tax for tax year 2021-22

Further provision about super-deductions etc

Meaning of “general decommissioning expenditure”

Temporary extension of periods to which trade losses may be carried back

Workers' services provided through intermediaries

Payments on termination of employment

Cash equivalent benefit of a zero-emissions van

Enterprise management incentives

Exemption for coronavirus tests

Collective money purchase benefits

Repeal of provisions relating to the Interest and Royalties Directive

Hybrid and other mismatches

Charge to plastic packaging tax

Cancellation of registration

Misstatements

Temporary period for reduced rates on residential property

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

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

Temporary 12.5% reduced rate for hospitality and tourism sectors

Distance selling: Northern Ireland

Steel removed to Northern Ireland

Rates for light passenger or light goods vehicles, motorcycles etc

Rebates where higher rate of duty paid

Rates of air passenger duty from 1 April 2022

Rates of air passenger duty from 1 April 2022

Amounts of gross gaming yield charged to gaming duty

Rates of climate change levy from 1 April 2023

Rates of landfill tax

Designation of freeport tax sites

Designation of freeport tax sites

Follower notice penalties

The GAAR and partnerships

Collection of tax debts

Miscellaneous amendments of Schedule 36 to FA 2008

Replacement of LIBOR with incremental borrowing rate

Tax consequences of reform etc of LIBOR and other reference rates

Interpretation

FA 1998

Corporation Tax (Instalment Payments) Regulations 1998

FA 2000

CAA 2001

CTA 2010

FA 2012

Commencement

Power to make further consequential amendments

Relief for trade losses made in tax year 2020-21

Relief for trade losses made in tax year 2021-22

Further provision about relief under paragraph 1 or 2

Relief for trade losses incurred in accounting periods ending in financial year 2020 or 2021

Cap on claims by company that is not a member of a 2020 group or 2021 group

Non-de minimis claims to be made after end of financial year

Non-de minimis claims to be made in company tax return

Meaning of “de minimis claim” etc

Cap on non-de minimis claims by company that is a member of a 2020 group or 2021 group

Non-de minimis claims by group company to conform with statement

Loss carry-back allocation statements

Anti-avoidance

Interpretation

Power to modify

Introductory

Cap on amount of tax credit

Commencement

Cap on amount of tax credit

Commencement

Introductory

Contractors

Deductions for materials

Grace period

Restrictions on set-off

Penalties

Commencement

Amendments of section 137 of CTA 2010

Amendments of Part 5A of CTA 2010

Amendments of Part 7ZA of CTA 2010

Amendments of Chapter 7 of Part 14 of CTA 2010

Commencement

Transitional provision

Effect of secondary liability and assessment notice

Test for giving a secondary liability and assessment notice

Content of secondary liability and assessment notice

Copy of notice to be given to P

Application to revoke or reduce amount

Limitation on secondary liability

Reduction of amount where P's liability is reduced

No double payment

Effect of joint and several liability notice

Test for giving joint and several liability notice

Content of joint and several liability notice

Copy of notice to be given to P

Revocation

Assessments of liability

Adjustments

Limitation on assessments

No double payment

Interpretation: related businesses

Interpretation: general

Recovery as a debt due

Assessments of amounts of plastic packaging tax due

Supplementary assessments

Further provision about assessments under paragraphs 2 and 4

Time limits for assessments

Repayments of overpaid tax

Supplementary provision about repayment etc

Reimbursement arrangements

Assessment for excessive repayment

Supplementary assessments

Further provision about assessments under paragraphs 11 and 12

Time limit for assessments

Appealable decisions etc

Offer of review

Right to require review

Review by HMRC

Extensions of time for requiring review

Review out of time

Nature of review etc

“Appeal tribunal”

Bringing of appeals

Further provision about appeals

Determinations on appeal

Power to take samples

Disclosure of information

Evidence by certificate

Inducements to provide information

Bodies eligible for group treatment

Application for group treatment

Applications to modify group treatment

Applications relating to group treatment

Termination of group treatment by the Commissioners

Notifications relating to group treatment

Regulations about applications and notifications

Interpretation

Assessment etc of penalty

Further provision about assessments under paragraphs 2 and 3

Assessment etc of daily penalties

Time limits for assessments

Failure to notify etc

Failure to comply with requirements relating to returns

Failure to make payment on time

Errors in documents

Failure to disclose tax avoidance schemes

Modifications

Provisional collection of plastic packaging tax

Isle of Man

HMRC powers to obtain information etc

Interest

Serial tax avoidance

Amendments of FA 2003

Commencement

Amendments to Part 9 of Schedule 9ZA to VATA 1994

Amendments to Part 5 of Schedule 9ZB to VATA 1994

Definitions

Power to agree to further defer payment

No surcharge

Penalty

Amount of penalty

Assessment of penalty

Payment of penalty

Recovery of penalty

Reviews and appeals

Double jeopardy

Notifications etc

Duty on certain steel products imported on or after 3 March 2021

Duty on certain steel products imported before 3 March 2021

Duty on certain steel products removed to Northern Ireland on or after 3 March 2021

Duty on certain steel products removed to Northern Ireland after IP completion day

Interpretation

Power to extend application of the regulations to other goods

TMA 1970

CAA 2001

Introduction

Returns

Interpretation

Application of Schedule to persons with multiple businesses etc

Liability to penalty points

Award of penalty points

Expiry of individual penalty points

Expiry of all penalty points for a group of returns

Penalty points: effect of moving between groups of returns

Penalty points: effect of change of representative member of VAT group

Liability to penalties

Assessments

Time limit for assessments

Power to amend figures by regulations

Reasonable excuse

Double jeopardy

Withdrawal of notice to make a return

Appeals

Partnerships

Settlements

Introduction

Interpretation

Penalty for deliberately withholding information

Categories of information

Power to make changes relating to categories of information by regulations

Offshore transfers

Reductions for disclosure

Special reduction

Interaction with other penalties

Determination of penalty where no return made

Assessments

Supplementary assessments

Time limit for assessments

Double jeopardy

Withdrawal of notice to make a return

Appeals

Partnerships

Regulations: supplementary provision

Introduction

Assessments and determinations in default of return

No penalty if payment in full before end of 15 day period

First penalty: tax remains due at end of 15 day period

Meaning of “15 day time to pay condition” and “30 day time to pay condition”

First penalty: effect of breaking time to pay agreement

Second penalty: tax remains due at end of 30 day period

Second penalty: effect of breaking time to pay agreement

Interpretation of Part 2

Power to amend figures by regulations

Reasonable excuse

Special reduction

Double jeopardy

Interaction with other penalties

Assessments

Time limit for assessments

Appeals

Regulations: supplementary provision

Taxes Management Act 1970

Income and Corporation Taxes Act 1988

Social Security Contributions and Benefits Act 1992

Social Security Contributions and Benefits (Northern Ireland) Act 1992

Value Added Tax Act 1994

Income Tax (Trading and Other Income) Act 2005

Corporation Tax Act 2009

Finance Act 2009

Finance Act 2012

Finance Act 2013

Finance Act 2014

Finance Act 2015

Finance Act 2016

Finance Act 2017

Finance (No. 2) Act 2017

Additional penalty for unreasonable tax appeal

Amount of a section 208 or 208A penalty

Assessment of a section 208A penalty

Aggregate penalties

Alteration of assessment of a section 208 or 208A penalty

Cancellation of a section 208A penalty

Appeal against a section 208A penalty

FA 2014

National Insurance Contributions Act 2015

Conduct notices: transferees

Monitoring notices: transferees

Conduct notices: significance of conditions

Conduct notices: regular provision of information

Conduct notices: withdrawal

Conduct notices: duration

Defeat notices

Monitoring notices: applications to tribunal

Threshold conditions

Meaning of “authorisation”, “authorised activity” and “licensing authority” etc

First-time application: licensing authority required to give information about tax compliance

Renewed application: licensing authority required to obtain confirmation of tax check

HMRC required to make arrangements in connection with tax checks

Tax checks

Requirement to confirm completion of tax check ceases to apply if HMRC in default

Disclosure of information

Regulations

Interpretation

Partnerships

Consequential amendments

Disclosure of third party or financial institution notice

Increased daily default penalty

Power to give taxpayer notice following land transaction return

Commencement

Editorial notes

[^c24596881]: S. 95(1) in force for specified purposes and s. 95(2)-(8) in force at Royal Assent, see s. 95(6)

[^c24596901]: S. 99(1) treated as having come into force at 9.3.2021 and s. 99(2)-(6) in force at Royal Assent, see. s. 99(2)

[^c24596791]: Sch. 18 para. 1 in force for specified purposes at Royal Assent, see s. 95(6)(a)

[^c24596801]: Sch. 18 para. 2 in force for specified purposes at Royal Assent, see s. 95(6)(a)

[^c24596811]: Sch. 18 para. 3 in force for specified purposes at Royal Assent, see s. 95(6)(a)

[^c24596821]: Sch. 18 para. 4 in force for specified purposes at Royal Assent, see s. 95(6)(a)

[^c24596831]: Sch. 18 para. 5 in force for specified purposes at Royal Assent, see s. 95(6)(a)

[^c24596841]: Sch. 18 para. 6 in force for specified purposes at Royal Assent, see s. 95(6)(a)

[^c24596851]: Sch. 18 para. 7 in force for specified purposes at Royal Assent, see s. 95(6)(a)

[^c24596861]: Sch. 18 para. 8 in force for specified purposes at Royal Assent, see s. 95(6)(a)

[^key-914d0c2a903f7ad8c8c426f8b86b9372]: S. 95(1) in force at 1.7.2021 for specified purposes by S.I. 2021/770, regs. 3, 4 (with regs. 5-7)

[^key-7b8c0357c4a783b9279153f94ee89a88]: Sch. 18 para. 1 in force at 1.7.2021 in so far as not already in force by S.I. 2021/770, reg. 3

[^key-20f433e8ffdbb1749b93b24dbd40e4fb]: Sch. 18 para. 2 in force at 1.7.2021 in so far as not already in force by S.I. 2021/770, reg. 3

[^key-40421c4c19f2aef98f70c3bd95aae967]: Sch. 18 para. 3 in force at 1.7.2021 in so far as not already in force by S.I. 2021/770, reg. 3

[^key-ada785f226b75f5382b0472fd7e2b889]: Sch. 18 para. 4 in force at 1.7.2021 in so far as not already in force by S.I. 2021/770, reg. 3

[^key-86af8ad7f5a7a0538a6b2fb85910bac8]: Sch. 18 para. 5 in force at 1.7.2021 in so far as not already in force by S.I. 2021/770, reg. 3

[^key-06d56e27d8b65894f6c6bbfd3d15bf26]: Sch. 18 para. 6 in force at 1.7.2021 for specified purposes by S.I. 2021/770, regs. 3, 4 (with regs. 5-7)

[^key-32ab641d9dd16fb801612f688eed849f]: Sch. 18 para. 7 in force at 1.7.2021 in so far as not already in force by S.I. 2021/770, reg. 3

[^key-79b90f5cbb77ac4e79d16ada18605160]: Sch. 18 para. 8 in force at 1.7.2021 in so far as not already in force by S.I. 2021/770, reg. 3

[^key-8319642d8ec97c698c64f770e32751fe]: S. 131 in force at 5.7.2021 by S.I. 2021/799, reg. 2

[^key-c4c1cf6244d61d78c54bbb346a888fe6]: S. 42 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-327920970d6558dd882a086e09ee6d3f]: S. 43 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-a498617549b8d63cbedc5724ee527e8b]: S. 44 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-459ae5a640226639126c9a8817b284d2]: S. 45 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-35a7634e7216a47c1ee31089a632ebb0]: S. 46 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-ff92f229b0487ba2b8605f0a00eccf75]: S. 47 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-6d67b2ea0326e17f1af5a21601605a6c]: S. 48 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-0a169d5447a6d86e0bd53eaf12167c46]: S. 49 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-df22855cb9d06ee2dcfceee130ab9864]: S. 50 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-95d92d44dbbdf388f27480fed83e18d3]: S. 51 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-4537f4ae46578402954c059acfb6f5ab]: S. 52 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-4ae5c641024782151701b84b528cdf58]: S. 53 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-a479a8cf00ad74b2bcd43ac76b898ee9]: S. 54 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-35dada579d9a596a6647be5b268e7698]: S. 55 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-65d10f67f4ddc4b32c349c633d2b9891]: S. 56 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-25c718f52a95ac8e5daf7ef778caf01d]: S. 57 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-68798a1e8ae00fa125af87e3dd151a8a]: S. 58 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-87f340b27cc8d4d854a63975e25429b1]: S. 59 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-f5cf9076a14023e7fc5b69b26183d279]: S. 60 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-e90ed35c54241bba89f816242d7d0ff6]: S. 61 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-356a150b394267b88fd809e49df4f39a]: S. 62 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-7661df6dc3fceb46dcce9573ce640ca1]: S. 63 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-21494c36d9aa1a51df79d013200fb5f1]: S. 64 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-da24a324e4b8f2038995f38550f6b49d]: S. 65 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-78b3d8037bd8a7fa02a03f6d0e9003e9]: S. 66 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-89f6d282d63c0404a0e3ea33a002e970]: S. 67 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-6d2b872ab90fb2a78f47648d00d5fea0]: S. 68(1)(2)(4) in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-44be5e93e7d500c7ac684b42bad44fd2]: S. 69 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-57d538b2684919351c569229533bb629]: S. 70 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-7865f52234680ead15f67c9fc3545e13]: S. 71 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-b0ab6bf1a8ba96ef7245c2a52942e7f2]: S. 72 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-7a784c70876ed90a980d49008c27d1d2]: S. 73 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-cf9c28773cbbd974bd4d3cca045a9a61]: S. 74 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-ccade01e64b219f4c7f95074962c393c]: S. 75 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-378c50e0b1d33fd82f712e3c070ada6a]: S. 76 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-91b8fad73d818c33b1f3a551e9b914ff]: S. 77 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-910c7f22e1ff01a086fe3f813451c0a2]: S. 78 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-de17fcfb6b0d12100b03bbc25cfc0a4f]: S. 79 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-3b32168245ab76380c5d7cb46658eee0]: S. 80 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-53cd0a6aa85a740bc3507a3fec7c4e9b]: S. 81 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-499608b36eb7097b6cfadaa277cf57b9]: S. 82 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-8c14e1a95f67524d4809c92148a36217]: S. 83 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-2e51a8844ba694b9aa6e75bde9d5a8fa]: S. 84 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-d297a6ddbaa0f3f55877f404992b4732]: S. 85 in force at 10.12.2021 for specified purposes by S.I. 2021/1409, reg. 3

[^key-45a8cfed58b68892a069fdfe9d7b0f6c]: S. 43(2A) inserted (24.2.2022) by Finance Act 2022 (c. 3), Sch. 12 para. 2

[^key-4ac2aeb366400877956460f89decf03a]: S. 50(3)(4) inserted (24.2.2022) by Finance Act 2022 (c. 3), Sch. 12 para. 3(1)(b)

[^key-1c057e5eaa1b97f7dabe9ebc4f67f601]: Words in s. 50(2) substituted (24.2.2022) by Finance Act 2022 (c. 3), Sch. 12 para. 3(1)(a)

[^key-354a73c152eb75a05e7b873954d5e65c]: S. 55(5)(6) inserted (24.2.2022) by Finance Act 2022 (c. 3), Sch. 12 para. 4(3)

[^key-29ed19f683543c953a966d05fdad773b]: Words in s. 55(1) inserted (24.2.2022) by Finance Act 2022 (c. 3), Sch. 12 para. 4(2)

[^key-d5231ce1cf6bb41c2f93e849c48aeb96]: Words in s. 63(3) substituted (24.2.2022) by Finance Act 2022 (c. 3), Sch. 12 para. 5

[^key-373982b310014e50e3c76a5b251f218f]: S. 71(3A) inserted (24.2.2022) by Finance Act 2022 (c. 3), Sch. 12 para. 6(4)

[^key-897168d9250a13b337c51b1f8e88ee7f]: Words in s. 71(1) inserted (24.2.2022) by Finance Act 2022 (c. 3), Sch. 12 para. 6(2)

[^key-71f347341801cb176826bd2f7a36702b]: Words in s. 71(2) inserted (24.2.2022) by Finance Act 2022 (c. 3), Sch. 12 para. 6(3)(a)

[^key-4ab7b2bc81edabec37990d1ce8e38aba]: S. 71(2)(b)(c) inserted (24.2.2022) by Finance Act 2022 (c. 3), Sch. 12 para. 6(3)(c)

[^key-4e46d5a4409b1f6b0e31cdb0616805cc]: S. 71(2)(a): words in s. 71(2) renumbered as s. 71(2)(a) (24.2.2022) by Finance Act 2022 (c. 3), Sch. 12 para. 6(3)(b)

[^key-51c69e2b634d52689e13fd1ebc80014e]: S. 84(5)(ba) inserted (24.2.2022) by Finance Act 2022 (c. 3), Sch. 12 para. 3(2)

[^key-06a385af52bbc3c532ad2bb675b92185]: S. 106 omitted (24.2.2022) by virtue of Finance Act 2022 (c. 3), s. 80(2)

[^key-0dbc964d0b305b6115999f505e6ec34b]: Words in Sch. 9 para. 21(b)(ii) substituted (24.2.2022) by Finance Act 2022 (c. 3), Sch. 12 para. 7(a)

[^key-415998a4bdd424fc0e01ac92248efbcc]: Words in Sch. 9 para. 21(b)(ii) substituted (24.2.2022) by Finance Act 2022 (c. 3), Sch. 12 para. 7(b)

[^key-b52dbbe2bd5d26f846b43e41ed967214]: Words in Sch. 13 para. 3(1) omitted (24.2.2022) by virtue of Finance Act 2022 (c. 3), Sch. 12 para. 6(5)(a)(i)

[^key-084aabd59dd366a05d2929fdcff18f2f]: Sch. 13 para. 3(3)-(5) substituted for Sch. 13 para. 3(3) (24.2.2022) by Finance Act 2022 (c. 3), Sch. 12 para. 6(5)(a)(ii)

[^key-5a70d974c84988b7f7abfe22b25e48d0]: Words in Sch. 13 para. 5(1) omitted (24.2.2022) by virtue of Finance Act 2022 (c. 3), Sch. 12 para. 6(5)(b)(i)

[^key-6d2572fc2bbbca54241d9d0a87a0a3fa]: Sch. 13 para. 5(2)-(4) substituted for Sch. 13 para. 5(2) (24.2.2022) by Finance Act 2022 (c. 3), Sch. 12 para. 6(5)(b)(ii)

[^key-52669ea2702e96e1b6924fcdb9dae93d]: S. 80(1)-(6)(7)(a)-(d)(f)-(j)(8)-(10) in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-469a62b9d55a3a2abfb4e208c186572b]: Pt. 2 modified (1.4.2022) by The Plastic Packaging Tax (Descriptions of Products) Regulations 2021 (S.I. 2021/1417), regs. 1, 3-5

[^key-c6f1824594fe096350c51e8e71d6f139]: S. 42 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-c839eec6f90346562a9bc325b9a69759]: S. 43 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-4df2b8389dd41b8721a182a7049dfc4d]: S. 44 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-cefc90b7c3d11048866a1147ca0b92ea]: S. 45 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-a856046dda3071e0f6b2b75504ff8a15]: S. 46 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-76134b0960b2d7b6a73cff797e68d9fe]: S. 47 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-0a859162763572a97cac2e216f7a77b7]: S. 48 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-9d64eb17ed1f7b5b4da3486a23ff7ae2]: S. 49 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-f1d4f908bebc20b071de1264874c27c3]: S. 50 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-92e72d77c3bc7972590638aa6e99b1be]: S. 51 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-c9ae47b5b54987758945352db50028e1]: S. 52 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-cc758bb54bea06ef30e1ffaead8b8328]: S. 53 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-74bb276e6395a41726f839cc3f8c6511]: S. 54 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-8437d8df671f399281d9abbdcb4074b9]: S. 55 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-d15d8599d30182c0c18aed0a68cec088]: S. 56 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-6fb67790ef1ed22d3097ab319f053632]: S. 57 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-0117a621ce1bc822f834412e2fc18623]: S. 58 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-4c534fc3094eddee162368ea7f341919]: S. 59 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-0330c485bf513bd36749513d2528c42c]: S. 60 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-d8b4cd827efdc75e80c5e95217cdd540]: S. 61 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-703f466e5ec045791e5b7409087cfb1e]: S. 62 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-54eb8870202a4e97fafc9419a7620e7e]: S. 63 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-a21b92546b1f3b3a67e73878dcf13624]: S. 64 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-77cb6d4b9e36f973d300757985f80b6e]: S. 65 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-46dea572cfe6f50417266d912e074aee]: S. 66 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-720554bdd312507da992ddc3e1b4939c]: S. 67 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-c818854b9aad4577df6567a20fa267c2]: S. 68(3) in force at 1.4.2022 by S.I. 2021/1409, reg. 4

[^key-4209a09d6dd95a0454426c0773541439]: S. 69 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-bca1a2d92a6b0ab1f8271f644352054b]: S. 70 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-9131fc090ea8647014e321a635d15758]: S. 71 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-46948662e72b7a2560be312578e58d7e]: S. 72 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-cde158a25627a91e72068bf447b2aaa5]: S. 73 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-9903fb23f8bcc9db6c2dd5f11dec04d2]: S. 74 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-75ed24a97dbf9d387d3f5c6a6f2a9096]: S. 75 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-ba4def6dcfeab09a639521eb358fb5bd]: S. 76 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-47e5f37d6b912e06df8ae3ab28802756]: S. 77 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-d4968276885b03ffede35d38ad98377d]: S. 78 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-5e94a5f4b2e8df11883a3b6ac73b2875]: S. 79 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-903e6609b4a0a3598ed704b112c99b2d]: S. 81 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-3cf7acba1db0c2e762502b4f7d9f9431]: S. 82 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-3042827905dac3e9e05cd8bd04c94a1f]: S. 83 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-404e655c2ca10839044aa6dc2e72c2b1]: S. 84 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-213495a34e3051a824b5315886d8819b]: S. 85 in force at 1.4.2022 in so far as not already in force by S.I. 2021/1409, reg. 4

[^key-3aea83274523e9419a36c4ac3189e562]: Sch. 21 para. 5(1)(c) omitted (1.4.2022) by virtue of Finance Act 2022 (c. 3), Sch. 11 para. 10(a)

[^key-dde1e6c6256e174fc339b7eee61db08e]: Sch. 21 para. 6(2)(a) omitted (1.4.2022) by virtue of Finance Act 2022 (c. 3), Sch. 11 para. 10(b)

[^key-abd382a1ab7da47a791617f1946fd858]: Sch. 21 para. 6(2)(b)(ii) omitted (1.4.2022) by virtue of Finance Act 2022 (c. 3), Sch. 11 para. 10(c)

[^key-88e1b458e94c2dc79654bbdb692139fa]: Sch. 21 para. 6(3)(a)(ii) omitted (1.4.2022) by virtue of Finance Act 2022 (c. 3), Sch. 11 para. 10(d)

[^key-26c910107a809ac9f4953aa66a8b33c3]: Sch. 21 para. 6(5) omitted (1.4.2022) by virtue of Finance Act 2022 (c. 3), Sch. 11 para. 10(f)

[^key-4182ba5ae7a71f34945448e7237b0ce0]: Sch. 21 para. 6(6) omitted (1.4.2022) by virtue of Finance Act 2022 (c. 3), Sch. 11 para. 10(g)

[^key-26f97e8b9c005408a619f9eaaebff80d]: Sch. 21 para. 6(7)(a) omitted (1.4.2022) by virtue of Finance Act 2022 (c. 3), Sch. 11 para. 10(h)

[^key-0a115a232d294b5664dac8ba120d0603]: Sch. 21 para. 6(4) omitted (1.4.2022) by virtue of Finance Act 2022 (c. 3), Sch. 11 para. 10(e)

[^key-651edc1bc4a96343faa9a438a8016aaf]: Sch. 21 para. 14 omitted (1.4.2022) by virtue of Finance Act 2022 (c. 3), Sch. 11 para. 10(i)

[^key-eb6b8a89cfcc81c2e9db2983845929b4]: Sch. 21 para. 15 omitted (1.4.2022) by virtue of Finance Act 2022 (c. 3), Sch. 11 para. 10(j)

[^key-3c5fe97aa9b69f493466ebe0c2546f4d]: Sch. 21 para. 18 omitted (1.4.2022) by virtue of Finance Act 2022 (c. 3), Sch. 11 para. 10(k)

[^key-6370c8386c239ab2e7b25a5d86ee5934]: Words in s. 77(6) substituted (28.4.2022) by The Criminal Justice Act 2003 (Commencement No. 33) and Sentencing Act 2020 (Commencement No. 2) Regulations 2022 (S.I. 2022/500), regs. 1(2), 5(1), Sch. Pt. 1

[^key-f6bcc4c3f7ff466d24927a059bfb4a86]: Sch. 5 para. 2 in force at 1.8.2022 for the purposes of the amendments made by that paragraph by S.I. 2022/874, reg. 2

[^key-b9d016d31adc79b80798ac5f9684c0dd]: Sch. 5 para. 3 in force at 1.8.2022 for the purposes of the amendments made by that paragraph by S.I. 2022/874, reg. 2

[^key-01d272c98475bd459b91df998c3d0ad6]: Sch. 5 para. 4 in force at 1.8.2022 for the purposes of the amendments made by that paragraph by S.I. 2022/874, reg. 2

[^key-412156fd3a08dffc56eec0e13f978184]: Sch. 5 para. 5 in force at 1.8.2022 for the purposes of the amendments made by that paragraph by S.I. 2022/874, reg. 2

[^key-e8ae3c76d52a3304df9b4a4b9cfa5415]: Sch. 5 para. 6 in force at 1.8.2022 for the purposes of the amendments made by that paragraph by S.I. 2022/874, reg. 2

[^key-125a3d41be0040d50071bf0b6fcb532e]: Sch. 5 para. 7 in force at 1.8.2022 for the purposes of the amendments made by that paragraph by S.I. 2022/874, reg. 2

[^key-338758bec42ea5623f14d980899a6e4a]: Sch. 5 para. 8 in force at 1.8.2022 for the purposes of the amendments made by that paragraph by S.I. 2022/874, reg. 2

[^key-9b0e4bc642b180e8558f14c24c5d8d5b]: Sch. 5 para. 9 in force at 1.8.2022 for the purposes of the amendments made by that paragraph by S.I. 2022/874, reg. 2

[^key-7f14e1b711ca5419567419c241ac16d6]: Sch. 5 para. 10 in force at 1.8.2022 for the purposes of the amendments made by that paragraph by S.I. 2022/874, reg. 2

[^key-236a9633e678a88bce0216d64a6601a5]: Sch. 5 para. 11 in force at 1.8.2022 for the purposes of the amendments made by that paragraph by S.I. 2022/874, reg. 2

[^key-aafe1512fd1f8b1392e6022ebe622733]: Sch. 5 para. 12 in force at 1.8.2022 for the purposes of the amendments made by that paragraph by S.I. 2022/874, reg. 2

[^key-8c4e98488137e85bfb7532859fb178ff]: Sch. 5 para. 13 in force at 1.8.2022 for the purposes of the amendments made by that paragraph by S.I. 2022/874, reg. 2

[^key-774484fe13997a46db2dcb6a12b0e002]: Sch. 5 para. 14 in force at 1.8.2022 for the purposes of the amendments made by that paragraph by S.I. 2022/874, reg. 2

[^key-449d5f0f0d319a1e2f1bdd68f0ea8a0e]: Sch. 5 para. 15 in force at 1.8.2022 for the purposes of the amendments made by that paragraph by S.I. 2022/874, reg. 2

[^key-1096751e62a5f09786ba537e0be5af85]: Sch. 5 para. 16 in force at 1.8.2022 for the purposes of the amendments made by that paragraph by S.I. 2022/874, reg. 2

[^key-0ba048338dd112d7e447023e09062bc6]: Sch. 5 para. 17 in force at 1.8.2022 for the purposes of the amendments made by that paragraph by S.I. 2022/874, reg. 2

[^key-020dc722c59f08c936cc956edf37e4b6]: Sch. 5 para. 18 in force at 1.8.2022 for the purposes of the amendments made by that paragraph by S.I. 2022/874, reg. 2

[^key-2d1dbeaecf84f0dac7d62ae54c525d66]: Sch. 5 para. 19 in force at 1.8.2022 for the purposes of the amendments made by that paragraph by S.I. 2022/874, reg. 2

[^key-45bca535fe1bd9f73807e54b29660052]: Sch. 5 para. 20 in force at 1.8.2022 for the purposes of the amendments made by that paragraph by S.I. 2022/874, reg. 2

[^key-240b85c5f36f2d696fd2a4ba6625636f]: Sch. 5 para. 21 in force at 1.8.2022 for the purposes of the amendments made by that paragraph by S.I. 2022/874, reg. 2

[^key-eed51261b155813e485da5ddffa6f126]: Sch. 5 para. 22 in force at 1.8.2022 for the purposes of the amendments made by that paragraph by S.I. 2022/874, reg. 2

[^key-9cc0b9d2d3c9d906f866c7292d11aa5f]: Sch. 5 para. 23 in force at 1.8.2022 for the purposes of the amendments made by that paragraph by S.I. 2022/874, reg. 2

[^key-494dd8692f9f24c6c46129aefb95e711]: Sch. 5 para. 24 in force at 1.8.2022 for the purposes of the amendments made by that paragraph by S.I. 2022/874, reg. 2

[^key-787eae08de38427aaee55b24032b2b66]: Sch. 27 para. 26 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(3)(4)(a)

[^key-6674417099a563951d3003c730ee0c48]: Sch. 24 para. 24(4)(5) applied (with modifications) (1.1.2023 for specified purposes) by 1994 c. 23, s. 83FB (as inserted by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 26; S.I. 2022/1278, reg. 2(3)(4)(a))

[^key-bd7e5ccef325eac5757c1676f272f26f]: Sch. 29 para. 1 in force at 1.1.2023 by S.I. 2022/1277, reg. 2(2)(a) (with reg. 3)

[^key-39bef8f8f89dd4435fbd191fb3d9866a]: Sch. 29 para. 2 in force at 1.1.2023 by S.I. 2022/1277, reg. 2(2)(a) (with reg. 3)

[^key-002bb4090e1b126835300bf51e742330]: Sch. 29 para. 3 in force at 1.1.2023 for specified purposes by S.I. 2022/1277, reg. 2(2)(a) (with reg. 3)

[^key-e47f5f96f3bbee1c92abfa0939cf6d74]: Sch. 29 para. 4 in force at 1.1.2023 by S.I. 2022/1277, reg. 2(2)(a) (with reg. 3)

[^key-73bafcedb6a2368850eb402918680718]: Sch. 24 para. 1 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(1)

[^key-e3fd63af1db67d10490e4334378abc89]: Sch. 24 para. 2 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(1)

[^key-08ab923c990e364d039ca97e7062db4c]: Sch. 24 para. 3 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(1)

[^key-9c0aaceafeb6a4c699732999df06bb0a]: Sch. 24 para. 4 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(1)

[^key-85fbbfd343f32ac5246c54b156d28bae]: Sch. 24 para. 5 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(1)

[^key-9497c45f25ec43a5714be7708959c37a]: Sch. 24 para. 6 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(1)

[^key-a8bcef6f386f35166dbc44eaa5369a72]: Sch. 24 para. 7 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(1)

[^key-9d8489b9d6ce9505779a00725b7f04cd]: Sch. 24 para. 8 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(1)

[^key-c6593fefa5b9999c251fcfaa843c64e3]: Sch. 24 para. 9 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(1)

[^key-fd4b0aeda53a9cd4474edaa6e3a95df7]: Sch. 24 para. 10 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(1)

[^key-7865ffa580d77cb3d36dfaaff4f8b4e6]: Sch. 24 para. 11 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(1)

[^key-f8bd46267f4415dc63a9918f94ae486d]: Sch. 24 para. 12 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(1)

[^key-0ccf06ef6905f1356838f10c82e90a3a]: Sch. 24 para. 13 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(1)

[^key-52af6002591f2d8fd51ecc9a8fcdd2f9]: Sch. 24 para. 14 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(1)

[^key-c69abf7e48b8ccec47b137c044e84f61]: Sch. 24 para. 15 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(1)

[^key-cda02d9df7bf1af87deac74c2eaae146]: Sch. 24 para. 16 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(1)

[^key-3d724f5b624dfcc0a9406c50bf55ee71]: Sch. 24 para. 17 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(1)

[^key-a116d64b9e4995fc798831ad715473aa]: Sch. 24 para. 18 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(1)

[^key-5e6035acd9eb43c858a8e60cd7472303]: Sch. 24 para. 19 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(1)

[^key-da45a6ef4a5fee1b4b4d03669867e65f]: Sch. 24 para. 20 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(1)

[^key-3d65229a91188ac78fdbded3a73bbbb3]: Sch. 24 para. 21 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(1)

[^key-a1c179fc8f1ad77eca9d6e54c5227822]: Sch. 24 para. 22 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(1)

[^key-54f0a81b0c607dfedfb7d62046e26181]: Sch. 24 para. 23 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(1)

[^key-888823c9ee00f208a95085cab163901a]: Sch. 24 para. 24 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(1)

[^key-d0bf025c35abdfcdea886e3ec5d1c0a3]: Sch. 24 para. 25 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(1)

[^key-e1ef4b1bfa2b946d0bb80a8e1a9b9c45]: Sch. 24 para. 26 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(1)

[^key-d3b2d083c16e00f023274ac91ac3fd2d]: Sch. 26 para. 1 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(2)

[^key-314ba96a2f6b5b0ce666c5a446f4a6ab]: Sch. 26 para. 2 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(2)

[^key-f8fdd3061bc026bfeb245e67613e444d]: Sch. 26 para. 3 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(2)

[^key-0bde7b7a36c23a5718d818f484104d06]: Sch. 26 para. 4 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(2)

[^key-dfc886b6a6d3f023f20076f89c6e68c4]: Sch. 26 para. 5 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(2)

[^key-cd16b6faee9a3f4b9460c3c6623b3ddb]: Sch. 26 para. 6 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(2)

[^key-cdda071f25a6773204571f16c293d7ef]: Sch. 26 para. 7 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(2)

[^key-4dce565fc5b6a6ae28b9be0e08bee1f8]: Sch. 26 para. 8 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(2)

[^key-58d2d69c5106c83b8c9e88161591ddbb]: Sch. 26 para. 9 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(2)

[^key-023caadd097a8e5b91979f93b5369570]: Sch. 26 para. 10 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(2)

[^key-0fa7a5a4320df80013bb550c5d45142e]: Sch. 26 para. 11 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(2)

[^key-b62ec66e3bcd6b4517eba021b0358d3a]: Sch. 26 para. 12 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(2)

[^key-a34cd73ee43a5546c4810fdd1134ded1]: Sch. 26 para. 13 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(2)

[^key-dd6e61a887f53d9880c05388537cddcd]: Sch. 26 para. 14 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(2)

[^key-af33d6a0f21638d279f91acd8bc48c9e]: Sch. 26 para. 15 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(2)

[^key-ab7d345f578b0ab2529735d37fdfe4e3]: Sch. 26 para. 16 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(2)

[^key-fa22a27ca08f29e1b22c7d2556c42801]: Sch. 26 para. 17 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(2)

[^key-c1932f92568085abc7e664a9fbf1f3d5]: Sch. 26 para. 18 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(2)

[^key-f8e1273aad588acbdc0cce826461521e]: Sch. 26 para. 19 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(2)

[^key-97c7bdda6fdcee8641c9ba3d76d93c52]: Sch. 26 para. 20 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(2)

[^key-d9ff4547ff081fea6ee2ef02f752a13a]: Sch. 26 para. 21 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(2)

[^key-894def5bdf83816f0c29c19887682843]: Sch. 26 para. 22 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(2)

[^key-9c44f097a40457adaf21a884fee8cfef]: Sch. 27 para. 15 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(3)(4)(a)

[^key-fe4a40def39cbed73a60f8f8acb7bd1c]: Sch. 27 para. 16 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(3)(4)(a)

[^key-6f4b57e80485cc4e75917be0a66463d4]: Sch. 27 para. 17 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(3)(4)(a)

[^key-6ebbb28a4a75696027d5a06eb03d9a7c]: Sch. 27 para. 18 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(3)(4)(a)

[^key-3e74b57c800f37f5c650bcf911d89527]: Sch. 27 para. 19 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(3)(4)(a)

[^key-91f48108fb31e78e750181c86c986668]: Sch. 27 para. 20 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(3)(4)(a)

[^key-3887b55498659d9fa4de4508bf97d57e]: Sch. 27 para. 21 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(3)(4)(a)

[^key-7d579e62053a41097289c51debcf95fb]: Sch. 27 para. 22 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(3)(4)(a)

[^key-9f18fd2ae0f6fa0b839c7509a22b2323]: Sch. 27 para. 23 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(3)(4)(a)

[^key-a2ce23879deef4761095a2e16825fc58]: Sch. 27 para. 24 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(3)(4)(a)

[^key-88dc197fdc844b6e3a0dccf17c6d9ba4]: Sch. 27 para. 25 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(3)(4)(a)

[^key-ed25f4b86bde8b9222601cb6627d08ce]: Sch. 27 para. 27 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(3)(4)(a)

[^key-25d0c08925093c2f76917442e3d1cb1c]: Sch. 27 para. 28 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(3)(4)(a)

[^key-3e63fd704f53110dc7a13d52171fa55e]: Sch. 27 para. 29 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(3)(4)(b)

[^key-c7467c341a8b6668ffb02beac36168ed]: Sch. 27 para. 30 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(3)(4)(b)

[^key-cb226993da816cbb389cc00f75af3bb8]: Sch. 27 para. 31 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(3)(4)(b)

[^key-fce75373d70c451569bbf177a07a0cf5]: Sch. 27 para. 32 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(3)(4)(b)

[^key-33747aa7678a93b084115373e39dd615]: Sch. 27 para. 33 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(3)(4)(b)

[^key-27ec42f3fd40deee33668adb1f9b0a13]: Sch. 27 para. 34 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(3)(4)(b)

[^key-6e5c9492e3097546b02771306b6e5387]: Sch. 27 para. 35 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(3)(4)(b)

[^key-85ad32e041aeed1bd61f9c16461a44ae]: Sch. 27 para. 36 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(3)(4)(c)

[^key-999bfa52ce8716fa84813d92a8b33175]: Sch. 27 para. 37 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(3)(4)(d)

[^key-6a9451c8ad2498759bdd780ae230f68b]: Sch. 27 para. 38 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(3)(4)(d)

[^key-2547d23285667a2a2d20517debecdf96]: Sch. 27 para. 41 in force at 1.1.2023 for specified purposes by S.I. 2022/1278, reg. 2(3)(4)(e)

[^key-d3875e22b5c7efcc9feeeb2810b23ebc]: Word in s. 86 heading substituted (10.1.2023) by Finance Act 2023 (c. 1), s. 9(b)

[^key-a421ca7002d038a80a596fb4279524db]: Words in s. 5(1) substituted (10.1.2023) by Finance Act 2023 (c. 1), s. 5(2)

[^key-290713075fc96822cc2ecf1382809d61]: Words in s. 5(2) substituted (10.1.2023) by Finance Act 2023 (c. 1), s. 5(3)

[^key-0cf1f6d13914697c9d4f80fd43bca52a]: Words in s. 5(3) substituted (10.1.2023) by Finance Act 2023 (c. 1), s. 5(4)

[^key-c0303a42429d790a976ca1815da8df15]: Words in s. 86 substituted (10.1.2023) by Finance Act 2023 (c. 1), s. 9(a)

[^key-accdf2f70c7bb167428b8cd8c6187552]: Words in s. 77(3)(a)(i) substituted (7.2.2023 at 12.00 p.m.) by The Judicial Review and Courts Act 2022 (Magistrates’ Court Sentencing Powers) Regulations 2023 (S.I. 2023/149), regs. 1(2), 2(1), Sch. Pt. 1 table

[^key-804e714b1afe86e60ff144ff7767ce9c]: Words in s. 77(6) substituted (7.2.2023 at 12.00 p.m.) by The Judicial Review and Courts Act 2022 (Magistrates’ Court Sentencing Powers) Regulations 2023 (S.I. 2023/149), regs. 1(2), 2(1), Sch. Pt. 1 table

Amounts of gross gaming yield charged to gaming duty

Rates of climate change levy from 1 April 2023

Rates of landfill tax

Follower notice penalties

The GAAR and partnerships

Collection of tax debts

Miscellaneous amendments of Schedule 36 to FA 2008

Replacement of LIBOR with incremental borrowing rate

Tax consequences of reform etc of LIBOR and other reference rates

Interpretation