Finance Act 2022

• (9) Regulations under subsection (8) may, among other things, make provision about—

• (a) the contents of an allowance allocation statement;

• (b) when an allowance allocation statement is to be submitted;

• (c) when and how an allowance allocation statement may or must be amended on behalf of a group;

• (d) when and how an allowance allocation statement may be amended by an officer of Revenue and Customs;

• (e) the amendment of company tax returns in consequence of an allowance allocation statement or any amendment to such a statement (including provision altering time limits that would otherwise apply);

• (f) the consequences for any RP developer that is a member of a group of the group not having an allocating member.

• (10) This section is subject to section 44.

Allowance: joint venture companies

44

• (1) This section applies for the purposes of calculating the allowance of a relevant joint venture company for an accounting period where an excluded body (“B”) has a substantial interest in the relevant joint venture company.

• (2) The relevant joint venture company’s allowance for an accounting period that is the same as or overlaps with a specific financial year (“year X”) is—

• (a) the amount that would otherwise have been the relevant joint venture company’s allowance for that accounting period in accordance with section 43(6), reduced by the relevant percentage, or

• (b) where B allocates an allowable amount to the relevant joint venture company out of B’s notional allowance for year X, the sum of that amount and the amount calculated in accordance with paragraph (a).

• (3) For the purposes of subsection (2)—

• (a) the relevant percentage is the percentage of the relevant joint venture company’s profits that are available for distribution to equity holders and to which B is entitled;

• (b) B’s notional allowance for year X is £25,000,000;

• (c) an amount is allowable if it does not exceed—

$$A365×P$ where— “A” is the number of days in the relevant joint venture company’s accounting period that fall within year X; “P” is an amount equal to the relevant percentage of B’s notional allowance.$

• (4) The relevant joint venture company’s allowance is determined in accordance with subsection (2)(b) only if—

• (a) B has submitted a notional allowance statement in respect of the relevant joint venture company in accordance with regulations under subsection (5), and

• (b) the allowance in question is for an amount calculated in accordance with subsection (2)(b), on the basis of that notional allowance statement.

• (5) HMRC Commissioners may by regulations make provision for and about—

• (a) the disapplication of any provision of this section in circumstances set out in the regulations;

• (b) the submission by B to HMRC of a notional allowance statement specifying how much of its notional allowance in respect of year X it has allocated to a relevant joint venture company in respect of any of the company’s accounting periods that end during or at the same time as year X.

• (6) Regulations made in reliance on subsection (5)(b) may, among other things, make provision about—

• (a) the contents of a notional allowance statement;

• (b) when a notional allowance statement is to be submitted;

• (c) when and how the notional allowance statement may or must be amended by B;

• (d) the nomination by B of any other member of a group of which it is a member to carry out obligations imposed by or under this section on B;

• (e) when and how a notional allowance statement may be amended by an officer of Revenue and Customs;

• (f) the amendment of company tax returns in consequence of a notional allowance statement or any amendment to such a statement (including provision altering time limits that would otherwise apply).

• (7) Where B is a member of a group, the references to “B” in the following provisions are to be read as references to the ultimate parent of the group—

• (a) subsection (2)(b);

• (b) subsection (3)(b);

• (c) the definition of “P” in subsection (3)(c);

• (d) subsection (4)(a).

• (8) The power to make regulations under subsection (5) is exercisable in relation to the ultimate parent of a group of which B is a member as it is exercisable in relation to B.

• (9) In this section an “excluded body” means a company that is not liable to RPDT otherwise than as a result of being a non-profit housing company.

Application of corporation tax provisions, management etc

Application of corporation tax provisions and management of RPDT

45

• (1) The provisions of section 33(1) relating to the charging of a sum as if it were an amount of corporation tax is to be taken as applying all enactments applying generally to corporation tax.

• (2) But this is subject to—

• (a) the provisions of the Corporation Tax Acts,

• (b) any necessary modifications, and

• (c) subsection (5).

• (3) The enactments mentioned in subsection (1) include—

• (a) those relating to returns of information and the supply of accounts, statements and reports,

• (b) those relating to the assessing, collecting and receiving of corporation tax,

• (c) those conferring or regulating a right of appeal, and

• (d) those concerning administration, penalties, interest on unpaid tax and priority of tax in cases of insolvency under the law of any part of the United Kingdom.

• (4) Accordingly, TMA 1970 is to have effect as if any reference to corporation tax included a sum chargeable under section 33(1) as if it were an amount of corporation tax (but this does not limit subsections (1) to (3)).

• (5) In the Corporation Tax (Treatment of Unrelieved Surplus Advance Corporation Tax) Regulations 1999 (SI 1999/358) or any further regulations made under section 32 of FA 1998 (unrelieved surplus advance corporation tax)—

• (a) references to corporation tax do not include a sum chargeable on a company under section 33(1) as if it were corporation tax, and

• (b) references to profits charged to corporation tax do not include RPD profits.

• (6) Schedule 8 makes further provision about the management of RPDT.

Requirement to provide information about payments

46

• (1) This section applies if—

• (a) a sum is chargeable on an RP developer under section 33, for an accounting period as if it were an amount of corporation tax, and

• (b) a payment is made (whether or not by the RP developer) that is wholly or partly in respect of that sum.

• (2) The responsible company must give notice to an officer of Revenue and Customs, on or before the date the payment is made, of the amount of the payment that is in respect of that sum.

• (3) The “responsible company” is—

• (a) in a case where the RP developer is party to relevant group payment arrangements, the company that is, under those arrangements, to discharge the liability of the RP developer to pay RPDT for the accounting period;

• (b) in any other case, the RP developer.

• (4) “Relevant group payment arrangements” means arrangements under section 59F(1) of TMA 1970 (arrangements for paying corporation tax on behalf of group members) that relate to the accounting period.

• (5) The requirement in subsection (2) is to be treated, for the purposes of Part 7 of Schedule 36 to FA 2008 (information and inspection powers: penalties), as a requirement in an information notice.

• (6) This section is subject to any provision to the contrary in regulations under section 59E of TMA 1970 (further provision as to when corporation tax is due and payable).

Interpretation etc

47

• (1) This section applies where—

• (a) a company (“A”) ceases to be a non-profit housing company by virtue of any of paragraphs (a) to (d) of section 34(4), and

• (b) not all of the assets of the company have been distributed to another non-profit housing company or companies before the end of the relevant period.

• (2) For the purposes of subsection (1) the relevant period is the period beginning with the day on which A ceases to be a non-profit housing company and ending on—

• (a) the first anniversary of the last day of the accounting period in which A ceased to be a non-profit housing company, or

• (b) such later day as an officer of Revenue and Customs may allow.

• (3) This section also applies where—

• (a) a non-profit housing company (“A”) ceases to be a non-profit housing company by virtue of section 34(4)(e) when it ceases to be a wholly owned subsidiary of another non-profit housing company (“B”), and

• (b) an interest in A is acquired by a company that—

• (i) controls, or is under the same control as, B, and

• (ii) is not a non-profit housing company.

• (4) For the purposes of RPDT—

• (a) A is not to be treated as a non-profit housing company for the accounting period (“the exit period”) in which it ceased to be a non-profit housing company or a wholly owned subsidiary of another non-profit housing company,

• (b) A’s RPD profits for the exit period are the total of what would have been A’s, and (subject to subsection (5)(b)) any of A’s wholly owned subsidiaries’, chargeable amounts for accounting periods ending in the period (“the exit charge period”)—

• (i) beginning with the day (“the starting day”) four years before the day on which A ceased to be a non-profit housing company or a wholly owned subsidiary of another non-profit housing company, and

• (ii) ending with the last day of the exit period,

if, throughout the exit charge period, A had not been a non-profit housing company, and

• (c) A’s allowance in respect of the exit period is £0.

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

• (a) “chargeable amount” means the amount of RPD profits in excess of what would have been A’s, or A’s wholly owned subsidiaries’, allowance, but

• (b) RPD profits of any of A’s wholly owned subsidiaries (“subsidiary profits”) are not to be taken into account for the purposes of calculating A’s chargeable amount so far as those subsidiary profits are separately charged to RPDT as a result of this section applying by virtue of subsection (3).

• (6) Where A, or any of A’s wholly owned subsidiaries, has an accounting period beginning before the starting day and ending on or after that date (“the straddling period”), the following subsections apply for the purposes of subsection (4)(b).

• (7) For the purposes of determining what would have been A’s, or A’s wholly owned subsidiaries’, RPD profits for the straddling period and, if so, in what amount—

• (a) so much of the straddling period as falls before the starting day, and

• (b) so much of that period as falls on or after that date,

are to be treated as separate accounting periods.

• (8) If it is necessary to apportion an amount for the straddling period to the two separate accounting periods, see section 1172 of CTA 2010 (which applies as a result of section 45).

Miscellaneous

Groups

48

• (1) In this Part, other than in Schedule 7, “group” means two or more companies which together meet the following condition.

• (2) The condition is that one of the companies is—

• (a) the ultimate parent of each of the other companies, and

• (b) is not the ultimate parent of any other company.

• (3) A company (“A”) is the “ultimate parent” of another company (“B”) if—

• (a) A is the parent of B, and

• (b) no company is the parent of both A and B.

• (4) A company (“A”) is the “parent” of another company (“B”) if—

• (a) B is a 75% subsidiary of A,

• (b) A is beneficially entitled to at least 75% of any profits available for distribution to equity holders of B, or

• (c) A would be beneficially entitled to at least 75% of any assets of B available for distribution to its equity holders on a winding up.

Miscellaneous provision

49

Schedule 9 makes miscellaneous provision in connection with RPDT.

Interpretation etc

50

• (1) In this Part—

• “adjusted trading losses” and “adjusted trading profits” have the meaning given by section 39;

• “control” has the same meaning as in section 1124 of CTA 2010 (“control”);

• “development of residential property”, in relation to any activities, has the meaning given by section 35;

• “group”, and terms related to groups, have the meanings given by section 48;

• “HMRC” means Her Majesty’s Revenue and Customs;

• “HMRC Commissioners” means the Commissioners for Her Majesty’s Revenue and Customs;

• “interest in land”, in relation to an RP developer, has the meaning given by section 36;

• “non-profit housing company” has the meaning given by section 34;

• “relevant joint venture company” has the meaning given by section 40;

• “residential property” has the meaning given by section 37;

• “residential property developer” or “RP developer” has the meaning given by section 34;

• “residential property developer losses” or “RPD losses” has the meaning given by section 38;

• “residential property developer profits” or “RPD profits” has the meaning given by section 38;

• “residential property development activities” or “RPD activities” has the meaning given by section 35;

• “RPDT” has the meaning given by section 32;

• “substantial interest”, in relation to a relevant joint venture company, has the meaning given by section 40;

• “ultimate parent” has the meaning given by section 48;

• “wholly owned subsidiary” has the same meaning as in section 1159 of the Companies Act 2006 (meaning of “subsidiary” etc).

• (2) Chapter 6 of Part 5 of CTA 2010 (equity holders and profits or assets available for distribution), other than sections 169 to 182, applies for the purposes of references in this Part to equity holders and beneficial entitlement to assets or profits of a company available for distribution to its equity holders, subject to subsection (3).

• (3) In applying Chapter 6 of Part 5 (other than sections 169 to 182) and Chapter 3 of Part 24 of CTA 2010 for the purposes mentioned in subsection (2), they are to be read with all modifications necessary to ensure that—

• (a) they apply to a company which does not have share capital, and to holders of corresponding ordinary holdings in such a company, in a way which corresponds to the way they apply to companies with ordinary share capital and holders of ordinary shares in such companies,

• (b) they apply to a company which is an unincorporated association in a way which corresponds to the way they apply to companies which are bodies corporate,

• (c) they apply in relation to ownership through an entity (other than a company), or any trust or other arrangement, in a way which corresponds to the way they apply to ownership through a company, and

• (d) for the purposes of achieving paragraphs (a) to (c), profits or assets are attributed to holders of corresponding ordinary holdings in unincorporated associations, entities, trusts or other arrangements in a manner which corresponds to the way profits or assets are attributed to holders of ordinary shares in a company which is a body corporate.

• (4) In subsection (3) “corresponding ordinary holding” in an unincorporated association, entity, trust or other arrangement means a holding or interest which provides the holder with economic rights corresponding to those provided by a holding of ordinary shares in a body corporate.

• (5) Chapter 3 of Part 24 of CTA 2010 (subsidiaries) applies for the purposes of references in this Part to subsidiaries, subject to subsection (6).

• (6) In applying Chapter 3 of Part 24 of CTA 2010 for the purposes mentioned in subsection (5)—

• (a) share capital of a registered society is to be treated as if it were ordinary share capital, and

• (b) a company (“the shareholder“) that directly owns shares in another company is to be treated as not owning those shares if a profit on their sale would be a trading receipt of the shareholder.

Commencement and transitional provisions

Commencement

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• (1) This Part has effect in relation to accounting periods beginning on or after 1 April 2022.

• (2) If an RP developer has an accounting period beginning before 1 April 2022 and ending on or after that date (“the straddling period”), for the purpose of determining whether RPDT is chargeable on the RP developer for the straddling period and, if so, in what amount—

• (a) so much of the straddling period as falls before 1 April 2022, and

• (b) so much of that period as falls on or after that date,

are to be treated as separate accounting periods.

• (3) If it is necessary to apportion an amount for the straddling period to the two separate accounting periods, see section 1172 of CTA 2010 (which applies as a result of section 45).

• (4) If—

• (a) RPDT is chargeable on an RP developer for the straddling period, and

• (b) under the Instalment Payment Regulations one or more instalment payments in respect of the total liability of the RP developer for that period are treated as becoming due and payable before 1 April 2022 (“pre-commencement instalments”),

the RPDT chargeable for that period is to be ignored for the purposes of determining the amount of any pre-commencement instalment.

• (5) The first instalment in respect of that liability which is treated as becoming due and payable on or after 1 April 2022 is to be increased by the following amount, namely the difference between—

• (a) the aggregate amount of the pre-commencement instalments determined in accordance with subsection (4), and

• (b) the aggregate amount of those instalments determined ignoring that subsection (and so taking into account the tax chargeable on the RP developer for the straddling period).

• (6) In the Instalment Payment Regulations—

• (a) in regulations 6(1)(a), 7(2), 8(1)(a) and (2)(a), 9(5), 10(1), 11(1) and 13, references to those Regulations are to be read as including a reference to subsections (4) and (5) (and in regulation 7(2) “the regulation in question”, and in regulation 8(2) “that regulation”, are to be read accordingly), and

• (b) in regulation 9(3), the reference to those Regulations is to be read as including a reference to those subsections.

• (7) In section 59D of TMA 1970 (general rule as to when corporation tax is due and payable), in subsection (5), the reference to section 59E of that Act is to be read as including a reference to subsections (4) and (5) of this section.

• (8) In this section “the Instalment Payment Regulations” means the Corporation Tax (Instalment Payments) Regulations 1998 (S.I. 1998/3175).

Anti-forestalling: accelerated profits

52

• (1) This section applies if—

• (a) trading profits derived from RPD activities arise to an RP developer in an accounting period ending before 1 April 2022,

• (b) the profits arise in that accounting period instead of an accounting period ending on or after that date as a result of arrangements entered into on or after 29 April 2021, and

• (c) the main purpose, or one of the main purposes, of the arrangements is to secure that, but for this section, the profits would not be taken into account for the purposes of section 38.

• (2) The profits are to be taken into account for the purposes of that section as if they arose to the RP developer in the RP developer’s first accounting period ending on or after 1 April 2022.

• (3) In this section “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable), but does not include a change in the RP developer’s accounting date for the purposes of section 10 of CTA 2009 (end of accounting period).

PART 3 — Economic crime (anti-money laundering) levy

Economic crime (anti-money laundering) levy

53

• (1) A tax called the “economic crime (anti-money laundering) levy” (referred to in this Part as “the levy”) is charged in accordance with this Part.

• (2) The appropriate collection authority is responsible for the collection and management of the levy.

• (3) In this Part, “appropriate collection authority” means—

• (a) in the case of a person for whom the Financial Conduct Authority is a supervisory authority, the Financial Conduct Authority;

• (b) in the case of a person for whom the Gambling Commission is a supervisory authority, the Gambling Commission;

• (c) in any other case, the HMRC Commissioners.

Charge to the levy

54

• (1) The levy is charged for a financial year if—

• (a) a person carries on a regulated business at any point during the financial year, and

• (b) the person’s UK revenue for the financial year is medium, large or very large (see section 55).

• (2) The amount charged for a financial year is—

• (a) in the case of a person whose UK revenue for the financial year is medium, £10,000;

• (b) in the case of a person whose UK revenue for the financial year is large, £36,000;

• (c) in the case of a person whose UK revenue for the financial year is very large, £500,000.

• (3) The amounts specified in subsection (2) are to be proportionately reduced in the case of a person who carries on a regulated business only for part of the financial year.

• (4) No amount of payment made in respect of the levy is to be taken into account in calculating profits or losses for the purposes of income tax or corporation tax.

UK revenue: amount

55

• (1) A person’s UK revenue—

• (a) is medium for a financial year if the person’s UK revenue for the relevant accounting period is more than £10.2 million but not more than £36 million;

• (b) is large for a financial year if the person’s UK revenue for the relevant accounting period is more than £36 million but not more than £1 billion;

• (c) is very large for a financial year if the person’s UK revenue for the relevant accounting period is more than £1 billion.

• (2) To determine the “relevant accounting period”, see section 56.

• (3) The sums in subsection (1) are to be proportionately adjusted if the relevant accounting period of the person is a period other than 12 months.

Relevant accounting period

56

• (1) This section applies for the purposes of section 55.

• (2) The “relevant accounting period”, in relation to the UK revenue of a person for a financial year, is the person’s accounting period that ends in the financial year.

• (3) For this purpose, an accounting period that ends at the same time as the end of the financial year is an accounting period ending in that year.

• (4) Where there is more than one accounting period of a person ending in a financial year—

• (a) the person’s UK revenue for the relevant accounting period is to be taken as the sum of the UK revenue for each of the accounting periods ending in the financial year, and

• (b) the length of the relevant accounting period is to be taken as the combined length of those periods.

• (5) Where there is no accounting period of a person ending in a financial year—

• (a) in the case of a person who has an accounting period that ends during the period of 3 months beginning with the end of the financial year, the relevant accounting period is to be taken as that period;

• (b) in any other case, the relevant accounting period is to be taken as the person’s accounting period ending last before the start of the financial year.

• (6) If there is no relevant accounting period of a person capable of being determined in accordance with this section, the UK revenue amounts in section 55 are to be determined for that person by reference to the amount of the person’s UK revenue that, on a just and reasonable apportionment, is attributable to the financial year.

UK revenue: determination

57

• (1) This section applies for the purposes of determining a person’s UK revenue in a relevant accounting period.

• (2) In the case of a UK resident person, the person’s UK revenue is all of that person’s revenue after deducting so much of their revenue as, on a just and reasonable apportionment, is attributable to the activities of any permanent establishment of the person in a territory outside the United Kingdom.

• (3) In the case of a non-UK resident person, the person’s UK revenue is so much of the person’s revenue as, on a just and reasonable apportionment, is attributable to activities of any permanent establishment of the person in the United Kingdom (subject to subsections (4) and (5)).

• (4) Subsection (5) applies to a non-UK resident person who, by virtue of regulation 9(4) of the Money Laundering Regulations (casinos which provide facilities for remote gambling), is regarded for the purpose of those regulations as carrying on business in the United Kingdom.

• (5) The person’s UK revenue also includes so much of the person’s revenue as—

• (a) is attributable, on a just and reasonable apportionment, to activities in respect of which a charge to remote gaming duty arises (see section 155 of FA 2014), and

• (b) is not included in the person’s UK revenue by virtue of subsection (3).

• (6) References in this section to a “permanent establishment” of a person are to be read—

• (a) in the case of a company, in accordance with Chapter 2 of Part 24 of CTA 2010;

• (b) in any other case, in accordance with that Chapter but as if the person were a company.

• (7) References in this Part to a person’s “revenue” in a relevant accounting period are (subject to subsection (9)) references to—

• (a) the person’s turnover for that period, and

• (b) any other amounts (not included within turnover) which, in accordance with generally accepted accounting practice (“GAAP”), are recognised as revenue in the person’s profit and loss account or income statement for the accounting period.

• (8) Where a person does not draw up accounts for a relevant accounting period in accordance with GAAP, the reference in subsection (7)(b) to any amounts which in accordance with GAAP are recognised as revenue in the person’s profit and loss account or income statement for the accounting period is to be read as a reference to any amounts which would be so recognised if the person had drawn up such accounts for that accounting period.

• (9) The following are to be ignored in determining a person’s revenue for the purposes of this Part—

• (a) a distribution within the meaning of CTA 2010 that—

• (i) is received from a company that is connected with that person in accordance with sections 1122 and 1123 of CTA 2010, and

• (ii) is not made in respect of shares or other assets, profits on the sale of which would be a trading receipt of that person;

• (b) such other descriptions of revenue as may be specified in regulations made by the Treasury.

Assessment, payment, collection and recovery

58

• (1) The levy is recoverable as a debt due to the Crown.

• (2) The Treasury may by regulations—

• (a) make provision about the assessment, payment and collection of the levy;

• (b) make further provision about the recovery of the levy (in addition to subsection (1)).

• (3) Regulations under subsection (2) may—

• (a) make provision about the times at which payments are to be made and the methods of payment;

• (b) require persons liable to pay the levy to notify the appropriate collection authority of that liability and to make returns;

• (c) make provision for determining, in relation to persons for whom there is more than one appropriate collection authority with power to exercise functions under this Part, the authority that is to exercise those functions;

• (d) 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 to be done in connection with the levy is to be done;

• (e) make provision for interest (at a rate specified in, or determined under, the regulations) to be charged in respect of unpaid amounts of the levy;

• (f) permit or require persons liable to pay the levy to supply the appropriate collection authority such information or documents as the authority may request in connection with the levy;

• (g) require bodies (other than appropriate collection authorities) that are supervisory authorities to co-operate with appropriate collection authorities in the collection of the levy or otherwise in matters relating to the levy;

• (h) make provision for the making of decisions by appropriate collection authorities as to any matter required to be decided for the purposes of the regulations;

• (i) make provision about the form, manner and content of notifications or any other notices or communications with appropriate collection authorities in connection with the levy;

• (j) make provision for the review of, and a right of appeal to the tribunal against, specified decisions of appropriate collection authorities in connection with the levy;

• (k) make provision about the enforcement of the levy (including provision for the imposition of civil penalties or other sanctions for a failure to comply with a requirement imposed by or under this Part);

• (l) make provision about the recovery of overpayments of the levy;

• (m) make provision in relation to cases where an individual liable to pay the levy dies or becomes incapacitated, or where a person (whether or not an individual) is subject to an insolvency procedure.

• (4) Provision under subsection (3)(b) may include provision about—

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

• (b) the information to be included in returns;

• (c) the timing for making returns;

• (d) the form of, and the method of making, returns.

• (5) Provision under subsection (3)(i) may include provision about communications in electronic form.

• (6) Regulations under subsection (2) may confer functions on—

• (a) the HMRC Commissioners or anyone acting on their behalf, or

• (b) another appropriate collection authority or anyone acting on its behalf.

• (7) Regulations made by virtue of subsection (6)(a) may in particular provide—

• (a) for functions in relation to the enforcement of the levy to be functions of the HMRC Commissioners in cases where another appropriate collection authority is otherwise responsible for the collection and management of the levy, and

• (b) for the HMRC Commissioners to be responsible for the collection and management of the levy, in place of the other appropriate collection authority, in the cases where it exercises such functions,

and section 53(2) and (3) is to be read as subject to regulations made by virtue of this subsection.

Payments into Consolidated Fund

59

• (1) Subject to subsection (2), money received by the Financial Conduct Authority and the Gambling Commission in the exercise of functions under this Part as appropriate collection authorities is to be paid into the Consolidated Fund.

• (2) Before making payment under subsection (1) a deduction may be made for reasonable administrative costs associated with the exercise of such functions.

• (3) See further section 44 of CRCA 2005 for payments of money by the HMRC Commissioners into the Consolidated Fund.

Application to partnerships

60

• (1) This section applies where a person liable to pay the levy for a financial year is a partnership.

• (2) In the case of a partnership that is a body of persons forming a legal person that is distinct from themselves, the person liable to pay the levy is that legal person.

• (3) In the case of any other partnership—

• (a) the person liable to pay the levy is the responsible partners, and

• (b) the liability of the responsible partners to do so is joint and several.

• (4) The references in subsection (3) to “the responsible partners” are to all the persons who are members of the partnership at any time during the financial year.

• (5) A partnership is to be regarded for the purposes of this Part as continuing to be the same partnership regardless of a change in membership, provided that a person who was a member before the change remains a member after the change.

Collection of information

61

In Schedule 36 to FA 2008 (powers to obtain information etc), in paragraph 63(1) (meaning of “tax”), after paragraph (iza) insert—

(izb) economic crime (anti-money laundering) levy,

.

Disclosure of information

62

• (1) An appropriate collection authority may disclose information obtained or held by them for, or in connection with, their functions under this Part to—

• (a) another appropriate collection authority;

• (b) a supervisory authority that is not an appropriate collection authority;

• (c) the Secretary of State;

• (d) the Treasury;

• (e) an authorised officer of a person listed in paragraphs (a) to (d).

• (2) Information disclosed by an appropriate collection authority in reliance on subsection (1) may not be further disclosed without the consent of that appropriate collection authority (which may be general or specific).

• (3) A supervisory authority that is not an appropriate collection authority may disclose information obtained or held by them to an appropriate collection authority or to an authorised officer of an appropriate collection authority.

• (4) Information may only be disclosed under this section for the purpose of assisting the person to whom it is disclosed to carry out functions in relation to the levy.

• (5) Section 19 of CRCA 2005 (offence of wrongful disclosure) applies in relation to a disclosure of information in contravention of subsection (2) which relates to a person whose identify is specified in, or can be deduced from, the disclosure as it applies in relation to the disclosure of information in contravention of section 20(9) of that Act.

• (6) No charge may be made for any disclosure made under this section.

• (7) Except as provided by subsection (8), the disclosure of information under this section does not breach—

• (a) any obligation of confidence owed by the person making the disclosure, or

• (b) any other restriction on the disclosure of information (however imposed).

• (8) The powers conferred by this section to disclose information do not operate to authorise a disclosure that would contravene the data protection legislation (but those powers are to be taken into account in determining whether the disclosure would contravene that legislation).

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

• (10) For the purposes of subsection (9), any officer of Revenue and Customs is to be treated as having been designated by the HMRC Commissioners as a person to and by whom information may be disclosed under this section.

• (11) Nothing in this section (other than subsection (2)) limits the circumstances in which information may be disclosed under any other enactment or rule of law.

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

Power to make consequential provision

63

• (1) The Treasury may by regulations make provision that is consequential on this Part.

• (2) Regulations under this section may amend, repeal, revoke or otherwise modify any enactment (whenever passed or made).

Regulations

64

• (1) Regulations under this Part—

• (a) may make different provision for different purposes;

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

• (c) may have effect in relation to the financial year during which the regulations are made.

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

• (a) published by the HMRC Commissioners, or another appropriate collection authority, in accordance with the regulations, and

• (b) not withdrawn by a further notice.

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

• (4) Before making regulations under this Part the Treasury must consult each appropriate collection authority.

• (5) Before making regulations under this Part the HMRC Commissioners must consult the Treasury and each of the other appropriate collection authorities.

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

• (7) Except as provided by subsection (8), a statutory instrument containing regulations under this Part is subject to annulment in pursuance of a resolution of the House of Commons.

• (8) A statutory instrument containing (whether alone or with other provision) regulations of the following kinds may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons—

• (a) regulations under section 58(2) that make provision falling within section 58(3)(k);

• (b) regulations under section 63 that amend or repeal any provision of an Act of Parliament.

Interpretation

65

• (1) In this Part—

• “accounting period”— in relation to a company within the charge to corporation tax, is to be read in accordance with Chapter 2 of Part 2 of CTA 2009, and in relation to any other person, means a period for which the person’s accounts are drawn up;

• “appropriate collection authority” has the meaning given by section 53(3) (subject to section 58(7));

• “company” has the meaning given by section 1121(1) of CTA 2010;

• “economic crime (anti-money laundering) levy” has the meaning given in section 53;

• “generally accepted accounting practice” has the meaning given by section 1127(1) and (3) of CTA 2010;

• “HMRC Commissioners” means the Commissioners for Her Majesty’s Revenue and Customs;

• “the levy” means the economic crime (anti-money laundering) levy (see section 53(1));

• “Money Laundering Regulations” means the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (S.I. 2017/692) (as amended from time to time);

• “non-UK resident person” means a person who is not resident in the United Kingdom;

• “regulated business” means a business carried on by a person by virtue of being a relevant person within the meaning of regulation 8(1) of the Money Laundering Regulations;

• “relevant accounting period” is to be read in accordance with section 56;

• “revenue” has the meaning given in section 57(7);

• “supervisory authority” means an authority that is a supervisory authority under the Money Laundering Regulations (see regulation 7 of those Regulations);

• “tribunal” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal;

• “turnover” means the amounts derived from the provision of goods and services after deduction of trade discounts, value added tax and any other taxes (other than the levy) based on the amounts so derived;

• “UK resident person” means a person who is resident in the United Kingdom.

• (2) For the purposes of this Part—

• (a) the territory in which a company is resident is to be determined as for corporation tax purposes, and

• (b) the territory in which a partnership is resident is the territory in which the control and management of the activities of the partnership take place.

Commencement

66

This Part has effect for the financial year beginning with April 2022 and subsequent financial years.

PART 4 — Public interest business protection tax

Public interest business protection tax

67

• (1) Schedule 10 makes provision about a tax charged in circumstances where a business for which there is a special administration regime becomes subject to special administration or to other special measures in connection with insolvency.

• (2) In this section “special administration”, “special administration regime” and “special measures” have the meanings given by paragraph 2 of that Schedule.

PART 5 — Other taxes

Stamp duty and stamp duty reserve tax

Securitisation companies and qualifying transformer vehicles

68

• (1) The Treasury may by regulations make provision for stamp duty or stamp duty reserve tax (or both) not to be chargeable in connection with, or with a particular description of, the following—

• (a) transfers of relevant securities issued or raised by a securitisation company or a qualifying transformer vehicle, and

• (b) transfers of relevant securities to or by a securitisation company.

• (2) In this section, “relevant securities” means—

• (a) stock or marketable securities (as defined in section 122 of the Stamp Act 1891), and

• (b) chargeable securities (as defined in section 99 of FA 1986, subject to subsection (8)).

• (3) Regulations under this section may, among other things—

• (a) make provision for stamp duty not to be chargeable on a written document relating to a transfer;

• (b) make provision for stamp duty reserve tax not to be chargeable on a transfer or an agreement for a transfer;

• (c) provide that a transfer is exempt from all stamp duties;

• (d) make provision subject to conditions;

• (e) make different provision for different purposes;

• (f) contain incidental, consequential, transitional and transitory provision and savings.

• (4) The provision that may be made under subsection (3)(f) includes provision amending an enactment.

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

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

• (7) In this section—

• “enactment” includes subordinate legislation (as defined in section 21 of the Interpretation Act 1978);

• “qualifying transformer vehicle” has same meaning as in the Risk Transformation (Tax) Regulations 2017 (S.I. 2017/1271) (see regulation 3 of those Regulations);

• “securitisation company” has the same meaning as in the Taxation of Securitisation Companies Regulations 2006 (S.I. 2006/3296) (see regulation 4 of those Regulations);

• “transfer” includes issue or appropriation under arrangements involving the issue of depositary receipts or the provision of clearance services for the purchase and sale of relevant securities.

• (8) For the purposes of this section, “chargeable securities” includes securities that are not chargeable securities for the purposes of Part 4 of FA 1986 by virtue of an exemption under regulations made under this section (see section 99(5) and (5ZA) of that Act).

Value added tax

Interim operation of margin schemes for used cars etc: Northern Ireland

69

• (1) Subsection (2) applies where a person supplies a margin scheme motor vehicle in the following circumstances—

• (a) the vehicle was first registered before IP completion day,

• (b) the person took possession of it in Great Britain or the Isle of Man,

• (c) it was then removed to Northern Ireland, and

• (d) in respect of the supply, the person is prevented from exercising a margin scheme option by, and only by, a Northern Ireland exclusion.

• (2) The person may exercise the margin scheme option in respect of the supply (despite the Northern Ireland exclusion), subject to any regulations under subsection (3) and any direction given under subsection (4) (and not withdrawn).

• (3) The Treasury may by regulations made by statutory instrument provide that a margin scheme option may not be exercised in reliance on subsection (2) where the vehicle was removed to Northern Ireland after a date specified in the regulations (the “end date”).

• (4) The Commissioners for Her Majesty’s Revenue and Customs may, in a notice published by them, direct that a margin scheme option may not be exercised in reliance on subsection (2) after a date specified in the notice.

• (5) Regulations under subsection (3) and notices under subsection (4) may specify different dates in relation to different cases.

• (6) The date specified in relation to a case in a notice under subsection (4) must fall after the end date specified in relation to the case.

• (7) A statutory instrument containing regulations under subsection (3) is subject to annulment in pursuance of a resolution of the House of Commons.

• (8) In this section—

• “the 1992 Order” means the Value Added Tax (Cars) Order 1992 (S.I. 1992/3122);

• “the 1995 Order” means the Value Added Tax (Special Provisions) Order 1995 (S.I. 1995/1268);

• “margin scheme motor vehicle” means a mechanically propelled vehicle that is— a used motor car, or second-hand goods;

• “margin scheme option” means the option under article 8(1) of the 1992 Order (relief for used motor cars) or article 12(1) of the 1995 Order (relief for second-hand goods etc);

• “motor car” has the meaning given in the 1992 Order;

• “Northern Ireland exclusion” means article 8(3)(e) of the 1992 Order (used motor car removed to Northern Ireland) or article 12(3)(aa) of the 1995 Order (second-hand goods etc removed to Northern Ireland);

• “registered” means registered under— VERA 1994, or the Licensing and Registration of Vehicles Act 1985 of the Isle of Man;

• “second-hand goods” has the meaning given in the 1995 Order;

• “used”, in relation to a motor car, has the same meaning as in the 1992 Order.

• (9) Subsections (1) to (8) come into force on such day as the Treasury may by regulations made by statutory instrument appoint.

• (10) Regulations under subsection (9)—

• (a) may specify different days in relation to different cases, and

• (b) may provide for subsections (1), (2) and (8) to be treated as having come into force on IP completion day.

• (11) The Treasury may by regulations made by statutory instrument make transitional, transitory or saving provision in connection with the coming into force of subsections (1) to (8), including provision making different provision in relation to different cases.

Margin schemes and removal or export of goods: VAT-related payments

70

In VATA 1994, after section 50A (margin schemes) insert—

(50B) (1) The Treasury may by order provide that, on making a claim, a person is entitled to a VAT-related payment in respect of relevant supplies or of a description of relevant supply specified in the order. (2) “Relevant supply”, in relation to a person making a claim, means a supply of goods to the person where— (a) the person took possession of the goods in Great Britain or the Isle of Man in the course of carrying on a business, (b) the goods were then removed to Northern Ireland or exported, (c) at the time of the removal or export (“the relevant time”), the person intended to resell the goods outside Great Britain and the Isle of Man in the course of carrying on the business, and (d) if the circumstances of, and following, the supply to the person had been altered as described in subsection (3), the person would have been entitled to exercise an option under an order made under section 50A in respect of the resale of the goods. (3) The alterations mentioned in subsection (2)(d) are— (a) that (if it was not in fact so) the person was a taxable person, (b) that the goods were not removed to Northern Ireland or exported (and VAT was charged on the supply of the goods to the person on that basis), and (c) that the person resold the goods in Great Britain at the relevant time in the course of carrying on the business. (4) “VAT-related payment”, in respect of a supply of goods, means a payment of an amount equal to so much of the consideration for the supply as would have constituted VAT if— (a) the supply had taken place at the relevant time, and (b) VAT had been chargeable on the value of the supply, subject to any provision made in reliance on subsection (5). (5) An order under this section may make provision for the amount of a VAT-related payment to be less than the amount described in subsection (4). (6) An order under this section may, among other things— (a) make entitlement to a VAT-related payment subject to conditions; (b) make provision about the making of claims under the order; (c) make provision for claims to be treated as if they were returns under this Act in respect of a particular period; (d) make provision about the calculation of VAT-related payments, including provision about the calculation of the consideration for, or value of, a supply; (e) make provision about how VAT-related payments are to be paid; (f) make provision for VAT-related payments to be treated as if they were repayments of input tax; (g) make provision requiring claims and payments to be made through agents in the United Kingdom; (h) make provision for agents dealing with claims and payments under the order to be treated under this Act as if they were taxable persons; (i) make provision for and in connection with the payment of interest to or by the Commissioners, including provision about interest wrongly paid. (7) An order under this section may, among other things— (a) confer power on the Commissioners to make provision in a direction or notice; (b) make provision, or enable the Commissioners to make provision, generally or for particular purposes; (c) make provision applying a provision of or made under this Act or another enactment, with or without modifications, including provision relating to penalties and offences; (d) make different provision for different purposes, including different provision in relation to persons carrying on business in different places or in relation to the removal or export of goods to different places; (e) make consequential, incidental, supplementary, transitional, transitory or saving provision. (8) The provision that may be made under subsection (7)(e) includes provision amending an enactment or subordinate legislation. (9) References in this section to carrying on a business are to doing so in the United Kingdom or elsewhere.

Margin schemes and removal or export of goods: zero-rating

71

• (1) VATA 1994 is amended as follows.

• (2) In section 30 (zero-rating), after subsection (6) insert—

(6A) Subsection (6) does not apply in the case of goods exported from Great Britain if, in respect of the supply, the supplier exercises an option under an order made under section 50A.

• (3) In paragraph 3 of Schedule 9ZB (movements between Northern Ireland and Great Britain), after sub-paragraph (1) insert—

(1A) A supply of goods that involves the removal of goods from Great Britain to Northern Ireland is not zero-rated under sub-paragraph (1) if, in respect of the supply, the supplier exercises an option under an order made under section 50A.

• (4) Subsections (1) to (3) come into force on such day as the Treasury may by regulations made by statutory instrument appoint.

• (5) Regulations under this section may specify different days for different purposes.

• (6) The Treasury may by regulations made by statutory instrument make transitional, transitory or saving provision in connection with the coming into force of subsections (1) to (3), including provision making different provision for different purposes.

Relief on the importation of dental prostheses

72

• (1) In Schedule 2 to the Value Added Tax (Imported Goods) Relief Order 1984 (S.I. 1984/746), in Group 5 (health), after Item 10 insert—

(11) Dental prostheses imported by or on behalf of— (a) a person registered in the dentists register; (b) a person registered in the dental care professionals register established under section 36B of the Dentists Act 1984.

• (2) The amendment made by subsection (1)—

• (a) has effect in relation to imports on or after IP completion day, and

• (b) is to be treated as having been made under section 37(1) of VATA 1994 (VAT on importation of goods: reliefs etc) (and may be amended or revoked under that power accordingly).

Insurance premium tax

Identifying where the risk is situated

73

• (1) In Schedule 7A to FA 1994 (insurance premium tax: contracts that are not taxable), paragraph 8 (contracts relating to risks outside the United Kingdom) is amended as follows.

• (2) In sub-paragraph (2) for the words from “regulations made under section 424(3) of the Financial Services and Markets Act 2000” to the end substitute “the Table in sub-paragraph (3)”.

• (3) After that sub-paragraph insert—

(3) This is the Table referred to in sub-paragraph (2)—

Where—	The risk is situated in—
the contract relates to a building, to some or all of the contents of a building or to a building and some or all of its contents	the country or territory in which the building is situated
the contract relates to vehicles of any type	the country or territory in which the vehicle is registered
the contract covers travel or holiday risks and has a duration of four months or less	the country or territory in which the policyholder entered into the contract
the contract does not fall within any of the previous entries and the policyholder is an individual	the country or territory in which the policyholder is habitually resident on the date on which the contract is entered into
the contract does not fall within any of the previous entries	the country or territory in which the establishment of the policyholder to which the contract relates is situated on the date on which the contract is entered into.

(4) For the purposes of the last entry in the Table, “establishment”, in relation to a policyholder (“P”), means— (a) P’s head office or any of P’s agencies or branches, or (b) any permanent presence of P (which need not take the form of a branch or agency and, for example, may consist of an office managed by P’s staff or by a person who is independent of P but who has permanent authority to act for P as if the person were an agency).

• (4) The amendments made by this section have effect in relation to contracts of insurance entered into on or after the day on which this Act is passed.

Import duty

Transitioned trade remedies: decisions by Secretary of State

74

• (1) Subsections (2) to (10) apply where a relevant review or reconsideration of a transitioned trade remedy has been initiated by the Trade Remedies Authority (“the TRA”) but has not been concluded.

• (2) The Secretary of State may notify the TRA in writing that, in relation to the matters under review or reconsideration, the Secretary of State is to decide whether to—

• (a) vary, maintain or revoke a tariff rate quota, anti-dumping amount or countervailing amount that is applicable to the goods to which the review or reconsideration relates, or

• (b) replace a tariff rate quota that is applicable to the goods to which the review or reconsideration relates with an additional amount of import duty.

• (3) Accordingly—

• (a) functions of the TRA that would otherwise be exercisable in relation to the matters under review or reconsideration cease to be exercisable by the TRA (but this is subject to subsection (6)(d));

• (b) the Secretary of State’s decision need not be based on a recommendation or decision of the TRA in relation to the matters under review or reconsideration;

• (c) provisions made by the Safeguards Regulations, the Dumping and Subsidisation Regulations and the Reconsideration and Appeals Regulations have effect subject to provision made by or under this section.

• (4) The Secretary of State must publish notice giving effect to a decision under subsection (2).

• (5) The Secretary of State may by regulations make provision for the purposes of subsection (2).

• (6) The following are examples of provision that regulations under subsection (5) may make in relation to a decision under subsection (2)—

• (a) provision specifying steps that are to be taken by the Secretary of State before notifying the TRA under subsection (2),

• (b) provision specifying factors that are, or are not, to be taken into account by the Secretary of State in making the decision,

• (c) provision treating steps taken by the TRA in relation to the matters under review or reconsideration as steps taken by the Secretary of State,

• (d) provision requiring the TRA to do specified things of any kind (including things specified by the Secretary of State in directions) for the purpose of assisting the Secretary of State in making the decision,

• (e) provision authorising the disclosure of information between the Secretary of State and the TRA,

• (f) provision treating notice of the decision and anything having effect under the decision as having effect under TCTA 2018,

• (g) provision for and in connection with appeals against the decision, and

• (h) provision amending or otherwise modifying the Safeguards Regulations, the Dumping and Subsidisation Regulations or the Reconsideration and Appeals Regulations.

• (7) For the purposes of this section—

• (a) a relevant review or reconsideration of a transitioned trade remedy is initiated when—

• (i) the TRA publishes notice of initiation of a review under regulation 49(2)(a) of the Safeguards Regulations or regulation 98(1) of the Dumping and Subsidisation Regulations,

• (ii) the TRA publishes notice of initiation of a reconsideration of an original decision under regulation 12(1) of the Reconsideration and Appeals Regulations, or

• (iii) the Upper Tribunal refers an original decision back to the TRA under regulation 18(3) of the Reconsideration and Appeals Regulations;

• (b) a relevant review or reconsideration of a transitioned trade remedy is concluded when—

• (i) the Secretary of State accepts or rejects the TRA’s recommendation or decision following the review or reconsideration,

• (ii) the TRA publishes notice or notifies the Secretary of State that it is upholding the original decision under regulation 14(5) of the Reconsideration and Appeals Regulations (whichever is earlier), or

• (iii) the TRA makes a new decision following a referral by the Upper Tribunal under regulation 18(3) of the Reconsideration and Appeals Regulations.

• (8) For the purposes of subsection (7), an “original decision” means a recommendation made by the TRA to the Secretary of State under—

• (a) regulation 100(1) of the Dumping and Subsidisation Regulations, or

• (b) regulation 51(1) of the Safeguards Regulations.

• (9) Section 32(7) and (8) of TCTA 2018 apply to regulations made under this section as if they were regulations made under Part 1 of that Act.

• (10) Regulations under this section are to be made by statutory instrument; and an instrument containing regulations made under this section is subject to annulment in pursuance of a resolution of the House of Commons.

• (11) In regulation 14 of the Reconsideration and Appeals Regulations, after paragraph (5) insert—

(5A) Where the original decision is a recommendation under regulation 100(1) of the Dumping and Subsidisation Regulations or regulation 51(1) of the Safeguards Regulations, the TRA must notify the Secretary of State of its intention to uphold the original decision at least 30 days before taking the steps under paragraph (5).

• (12) In this section—

• “the Safeguards Regulations” means the Trade Remedies (Increase in Imports Causing Serious Injury to UK Producers) (EU Exit) Regulations 2019 (S.I. 2019/449);

• “the Dumping and Subsidisation Regulations” means the Trade Remedies (Dumping and Subsidisation) (EU Exit) Regulations 2019 (S.I. 2019/450);

• “the Reconsideration and Appeals Regulations” means the Trade Remedies (Reconsideration and Appeals) (EU Exit) Regulations 2019 (S.I. 2019/910).

• (13) This section is treated as having come into force on 3 November 2021.

Reference documents: amount of import duty

75

After section 32 of TCTA 2018 insert—

(32A) (1) This section applies where regulations made under any of sections 8 to 19 make provision by reference to a document. (2) The reference is to be construed— (a) as a reference to the document as modified by notice by the appropriate authority from time to time; (b) if the appropriate authority declares by notice that the document is replaced by another document, as a reference to that other document. (3) Subsection (2) does not apply to the extent that the effect of the modification or replacement of the document would be to alter the amount of import duty applicable under this Part to any goods. (4) A notice under this section must be published in such manner as the authority issuing it considers appropriate. (5) Section 32(10) applies to a notice under this section as it applies to a public notice. (6) In this section— - “appropriate authority”, in relation to regulations that make provision by reference to a document, means the person who made the regulations; - “modified” means amended, added to or omitted from.

Fuel duties

Vehicle excise duty: exemption for certain cabotage operations

76

• (1) Schedule 11 makes—

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

• (b) related provision.

• (2) Part 1 of Schedule 11 comes into force on 1 April 2022.

• (3) The Treasury may by regulations—

• (a) make provision that is consequential on Schedule 11;

• (b) such supplementary, incidental, transitional, transitory or saving provision as the Treasury consider appropriate in connection with the coming into force of Schedule 11.

• (4) Regulations under subsection (3) may—

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

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

• (5) Regulations under subsection (3) are to be made by statutory instrument.

• (6) A statutory instrument containing regulations under subsection (3) is subject to annulment in pursuance of a resolution of the House of Commons.

• (7) In Schedule 11 to FA 2020 (amendments of HODA 1979 relating to private pleasure craft), in paragraph 21 (power to make consequential amendments), after “FA 2021” (as inserted by section 102(7) of FA 2021) insert “and Schedule 11 to FA 2022,”.

Tobacco products duty

Rates of tobacco products duty

77

• (1) In Schedule 1 to TDPA 1979 (table of rates of tobacco products duty), for the Table substitute—

1 Cigarettes	An amount equal to the higher of— 16.5% of the retail price plus £262.90 per thousand cigarettes, or £347.86 per thousand cigarettes.
2 Cigars	£327.92 per kilogram
3 Hand-rolling tobacco	£302.34 per kilogram
4 Other smoking tobacco and chewing tobacco	£144.17 per kilogram
5 Tobacco for heating	£270.22 per kilogram

.

• (2) In consequence of the provision made by subsection (1), in Schedule 2 to the Travellers’ Allowances Order 1994 (which provides in certain circumstances for a simplified calculation of excise duty on goods brought into Great Britain)—

• (a) in the entry relating to cigarettes, for “£320.90” substitute “£347.86”,

• (b) in the entry relating to hand rolling tobacco, for “£271.40” substitute “£302.34”,

• (c) in the entry relating to other smoking tobacco and chewing tobacco, for “£134.24” substitute “£144.17”,

• (d) in the entry relating to cigars, for “£305.32” substitute “£327.92”,

• (e) in the entry relating to cigarillos, for “£305.32” substitute “£327.92”, and

• (f) in the entry relating to tobacco for heating, for “£75.48” substitute “£81.07”.

• (3) The amendments made by this section are treated as having come into force at 6pm on 27 October 2021.

Vehicle taxes

Rates for light passenger or light goods vehicles, motorcycles etc

78

• (1) Schedule 1 to VERA 1994 (annual rates of vehicle excise duty) is amended as follows.

• (2) In paragraph 1 (general rate)—

• (a) in sub-paragraph (2) (vehicle not covered elsewhere in Schedule with engine cylinder capacity exceeding 1,549cc), for “£280” substitute “£295”, and

• (b) in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc), for “£170” substitute “£180”.

• (3) In paragraph 1B (graduated rates for light passenger vehicles registered before 1 April 2017), for the Table substitute—

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	125	135
130	140	155	165
140	150	170	180
150	165	210	220
165	175	255	265
175	185	280	290
185	200	320	330
200	225	350	360
225	255	605	615
255	—	620	630

.

• (4) In the sentence immediately following the Table in that paragraph, for paragraphs (a) and (b) substitute—

(a) in column (3), in the last two rows, “350” were substituted for “605” and “620”, and (b) in column (4), in the last two rows, “360” were substituted for “615” and “630”.

• (5) In paragraph 1GC (graduated rates for first licence for light passenger vehicles registered on or after 1 April 2017), for Table 1 (vehicles other than higher rate diesel vehicles) substitute—

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	110	120
90	100	140	150
100	110	160	170
110	130	180	190
130	150	220	230
150	170	575	585
170	190	935	945
190	225	1410	1420
225	255	2005	2015
255	—	2355	2365

.

• (6) In that paragraph, for Table 2 (higher rate diesel vehicles) substitute—

CO₂ emissions figure	CO₂ emissions figure	Rate
(1)	(2)	(3)
Exceeding	Not exceeding	Rate
g/km	g/km	£
0	50	25
50	75	120
75	90	150
90	100	170
100	110	190
110	130	230
130	150	585
150	170	945
170	190	1420
190	225	2015
225	255	2365
255	—	2365

.

• (7) In paragraph 1GD(1) (rates for any other licence for light passenger vehicles registered on or after 1 April 2017)—

• (a) in paragraph (a) (reduced rate), for “£145” substitute “£155”, and

• (b) in paragraph (b) (standard rate), for “£155” substitute “£165”.

• (8) In paragraph 1GE(2) (rates for light passenger vehicles registered on or after 1 April 2017 with a price exceeding £40,000)—

• (a) in paragraph (a), for “£480” substitute “£510”, and

• (b) in paragraph (b), for “£490” substitute “£520”.

• (9) In paragraph 1J(a) (rates for light goods vehicles that are not pre-2007 or post-2008 lower emission vans), for “£275” substitute “£290”.

• (10) In paragraph 2(1) (rates for motorcycles)—

• (a) in paragraph (a) (engine cylinder capacity not exceeding 150cc), for “£21” substitute “£22”,

• (b) in paragraph (b) (motorbicycles with engine cylinder capacity exceeding 150cc but not exceeding 400cc), for “£45” substitute “£47”,

• (c) in paragraph (c) (motorbicycles with engine cylinder capacity exceeding 400cc but not exceeding 600cc), for “£69” substitute “£73”, and

• (d) in paragraph (d) (other cases), for “£96” substitute “£101”.

• (11) The amendments made by this section have effect in relation to licences taken out on or after 1 April 2022.

Vehicle excise duty: exemption for certain cabotage operations

79

• (1) The Motor Vehicles (International Circulation) Order 1975 (S.I. 1975/1208) is modified in accordance with subsection (2).

• (2) Article 5 (excise exemption and documents for vehicles brought temporarily into the United Kingdom) has effect as if—

• (a) in paragraph (2), after sub-paragraph (c) there were inserted—

(d) in a case of a vehicle being used for or in connection with a cabotage operation in Great Britain that is not exempt from excise duty under sub-paragraph (b) or (c), the vehicle is exempt from excise duty if and for so long as— (i) the cabotage operation consists of national carriage for hire or reward by a haulier; (ii) no more than 14 days has elapsed beginning with the day on which the vehicle arrived in the United Kingdom in the course of a laden journey; (iii) the vehicle is being used at any time during the permitted period; and (iv) either paragraph (2ZA) or (2ZB) applies in the case of the vehicle.

;

• (b) after paragraph (2) there were inserted—

(2ZA) This paragraph applies in the case of a vehicle if— (a) the haulier is the holder of a Community licence, and (b) the driver of the vehicle, if a national of a country which is not a member State, holds a driver attestation. (2ZB) This paragraph applies in the case of a vehicle if— (a) the vehicle is a foreign goods vehicle, and (b) the vehicle lawfully entered the United Kingdom in the course of a laden international road transport. (2ZC) The definition of “foreign goods vehicle” in regulation 3(1) of the Goods Vehicles (Licensing of Operators) (Temporary Use in Great Britain) Regulations 1996 (S.I. 1996/2186) applies for the purposes of paragraph (2ZB)(a), but as if paragraph (d) of that definition were omitted. (2ZD) Paragraphs (2ZE) and (2ZF) apply in determining the “permitted period” for the purposes of paragraph (2)(c)(d)(iii). (2ZE) In the case of vehicles arriving in the United Kingdom on or after 28th October 2021, the “permitted period” means the period ending with— (a) 30th April 2022, or (b) such later date as regulations made by the Treasury may specify. (2ZF) Where regulations made by the Treasury provide for this paragraph to apply in the case of vehicles arriving in the United Kingdom on or after a date specified in the regulations that is after 30th April 2022, the “permitted period” means the period— (a) beginning with that specified date, and (b) ending with such later date as the regulations may specify. (2ZG) The later date specified in regulations under paragraph (2ZE)(b) or (2ZF)(b) must be no later than 31st December 2022. (2ZH) Regulations under paragraph (2ZE) or (2ZF) are to be made by statutory instrument. (2ZI) A statutory instrument containing regulations under paragraph (2ZE) or (2ZF) is subject to annulment in pursuance of a resolution of the House of Commons.

HGV road user levy: extension of suspension

80

• (1) In section 88 of FA 2020 (suspension of HGV road user levy), in subsection (3) (exempt period), for “24” substitute “36”.

• (2) In FA 2021 omit section 106 (HGV road user levy: extension of suspension).

Gaming duty

Amounts of gross gaming yield charged to gaming duty

81

• (1) In section 11(2) of FA 1997 (rates of gaming duty), for the table substitute—

Part of gross gaming yield	Rate
The first £2,686,000	15%
The next £1,852,000	20%
The next £3,243,000	30%
The next £6,845,000	40%
The remainder	50%

.

• (2) The amendment made by this section has effect in relation to accounting periods beginning on or after 1 April 2022.

Penalties relating to excise duty

Excise duty: penalties

82

• (1) Schedule 41 to FA 2008 (penalties: failure to notify and certain VAT and excise wrongdoing) is amended as follows.

• (2) In paragraph 1 (penalty payable on failure to comply with relevant obligation), in the table (relevant obligations), in the fourth entry for “excise duties”, for “their release for free circulation” substitute “a declaration for the free-circulation procedure or an authorised use procedure being accepted”.

• (3) In paragraph 4 (handling goods subject to unpaid excise duty etc), in sub-paragraph (2), in the definition of “excise duty point”, after “1992” insert “(and includes any excise duty point created or deemed to be created as a result of provision in regulations under section 45 of the Taxation (Cross-border Trade) Act 2018 (general regulation making power for excise duty purposes etc))”.

• (4) This section is treated as having come into force on 3 November 2021.

Environmental taxes

Rates of landfill tax

83

• (1) Section 42 of FA 1996 (amount of landfill tax) is amended as follows.

• (2) In subsection (1)(a) (standard rate), for “£96.70” substitute “£98.60”.

• (3) In subsection (2) (reduced rate for certain disposals), in the words after paragraph (b)—

• (a) for “£96.70” substitute “£98.60”, and

• (b) for “£3.10” substitute “£3.15”.

• (4) The amendments made by this section have effect in relation to disposals made (or treated as made) on or after 1 April 2022.

Plastic packaging tax

84

Schedule 12 makes miscellaneous amendments to Part 2 of FA 2021 (plastic packaging tax).

PART 6 — Miscellaneous and final

Avoidance

Winding-up petitions by an officer of Revenue and Customs

85

• (1) Subsection (2) applies where it appears to an officer of Revenue and Customs that it is expedient in the public interest, for the purposes of protecting the public revenue, that a relevant body should be wound up.

• (2) The officer may present a petition to the court for the winding up of the body.

• (3) On such a petition, the court may wind up the body if the court is of the opinion that it is just and equitable that it should be wound up.

• (4) In this section—

• “court” means— the court having jurisdiction for the purposes of the Insolvency Act 1986, or in Northern Ireland, the High Court;

• “indirect tax” has the same meaning as in Schedule 17 to F(No.2)A 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes);

• “relevant body” means a body, including a partnership, that— carries on a business as a promoter within the meaning of Part 5 of FA 2014 (promoters of tax avoidance schemes) as if, in sections 234 and 235 of that Part, references to— “tax” included value added tax and other indirect taxes, and “tax advantage” included a tax advantage as defined for value added tax in paragraph 6, and for other indirect taxes in paragraph 7, of Schedule 17 to F(No.2)A 2017; is connected to a body within paragraph (a) (within the meaning of section 1122 of CTA 2010 (“connected” persons)).

• (5) If a petition is presented under subsection (2) for the winding up of a partnership, the court has jurisdiction, and the Insolvency Act 1986 (or the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19))) has effect, as if the partnership were an unregistered company as defined by section 220 of that Act (or Article 184 of that Order).