Finance Act 2022

• (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).

• (6) The rules governing the practice and procedure (including fees) in respect of petitions under section 124A of the Insolvency Act 1986 or Article 104A of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)) apply to petitions under this section, subject to any necessary modifications.

Publication by HMRC of information about tax avoidance schemes

86

• (1) If an authorised officer suspects that a proposal or arrangements are a relevant proposal or relevant arrangements the officer may arrange for the publication of any information (including documents) the officer considers appropriate for the purposes of—

• (a) informing taxpayers about risks associated with, or concerns the officer has about, the proposal or arrangements, or

• (b) protecting the public revenue.

• (2) The information that may be published includes information (including documents) identifying or about any person—

• (a) who is or has been, or who the officer suspects is or has been—

• (i) a promoter in relation to the proposal or arrangements,

• (ii) a connected person in relation to the proposal or arrangements or to a person within sub-paragraph (i), or

• (iii) a member of a promotion structure any member of which has or has had, or is suspected by the officer of having or having had, a role in relation to making the proposal or arrangements available for implementation, or

• (b) who has or has had, or who the officer suspects has or has had, any other role in relation to making the proposal or arrangements available for implementation.

• (3) No information may be published under this section that identifies a person—

• (a) who is not within subsection (2), or

• (b) where there are reasonable grounds for believing that the person’s role in relation to the proposal or arrangements is limited to activities subject to legal professional privilege.

• (4) Information may be published under this section in such manner as the officer considers appropriate, including by communicating it to particular persons.

• (5) If an authorised officer intends to publish information under this section that identifies a person, an officer of Revenue and Customs must—

• (a) notify the person, and

• (b) give the person 30 days from that notification in which to make representations about whether or not the information should be published.

• (6) Before arranging for the publication of information under this section identifying a person, an authorised officer must have regard to any representations received in accordance with subsection (5).

• (7) An authorised officer must amend or withdraw information published under this section if the officer subsequently considers it to be incorrect or misleading in a significant respect.

• (8) Nothing in this section authorises a disclosure of information if the disclosure would contravene the data protection legislation or would be prohibited by the investigatory powers legislation (but in determining whether a disclosure would do either of those things, the power conferred by this section is to be taken into account).

• (9) In subsection (8)—

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

• “the investigatory powers legislation” means Parts 1 to 7 and Chapter 1 of Part 9 of the Investigatory Powers Act 2016.

• (10) Nothing in this section limits the circumstances in which information may be disclosed under section 18(2) of the Commissioners for Revenue and Customs Act 2005 or under any other enactment or rule of law.

• (11) For the purposes of this section, a person is a connected person in relation to a proposal or arrangements, or a person within subsection (2)(a)(i), if the person is—

• (a) involved in the promotion of the proposal or arrangements;

• (b) in the case of a proposal or arrangements that involve a trust, a settlor, trustee or beneficiary of the trust, or other person involved in the administration of the trust;

• (c) a director, manager, secretary or other similar officer of the person within subsection (2)(a)(i);

• (d) a person who controls or has significant influence over (within the meaning of Part 2 of Schedule 34 to FA 2014) the person within subsection (2)(a)(i);

• (e) an employee or shareholder of the person within subsection (2)(a)(i).

• (12) In this section “authorised officer” means an officer of Revenue and Customs who is, or is a member of a class of officers who are, authorised by the Commissioners for the purposes of this section.

• (13) Expressions used in Part 5 of FA 2014 have the same meaning in this section as in that Part, unless the contrary intention appears (and, in particular, see sections 234 and 235 of FA 2014 for the meanings of “relevant proposal”, “relevant arrangements” and “promoter” and Schedule 33A to that Act for the meaning of “promotion structure”).

Freezing orders: England and Wales

87

• (1) Subsection (2) applies where —

• (a) an application is made on behalf of HMRC to a court in England and Wales for a freezing order in relation to a relevant penalty (see section 90) before the penalty is determined, and

• (b) the court considering the application is satisfied that HMRC have a good arguable case in relation to the penalty and—

• (i) have commenced proceedings before the First-tier Tribunal in relation to it, or

• (ii) intend to commence proceedings before the First-tier Tribunal in relation to it within the initial period.

• (2) The court is to determine the application as if it were being made immediately after the First-tier Tribunal had determined the penalty on the basis sought, or to be sought, by HMRC.

• (3) A freezing order granted by virtue of subsection (2) may not take effect unless HMRC commence proceedings before the First-tier Tribunal in relation to the penalty before the end of the initial period (whether before or after the making of the application for the order).

• (4) In this section, a “freezing order” is an order granted in accordance with rule 25.1(1)(f) of the Civil Procedure Rules.

Warrants for diligence on the dependence: Scotland

88

• (1) Subsection (2) applies where —

• (a) an application is made on behalf of HMRC to a court in Scotland for a warrant for diligence on the dependence under Part 1A of the Debtors (Scotland) Act 1987 in relation to a relevant penalty (see section 90) before the penalty is determined, and

• (b) the court considering the application is satisfied that HMRC have a good arguable case in relation to the penalty and—

• (i) have commenced proceedings before the First-tier Tribunal in relation to it, or

• (ii) intend to commence proceedings before the First-tier Tribunal in relation to it within the initial period.

• (2) The court is to determine the application as if the relevant penalty were a contingent debt in terms of section 15C of the 1987 Act.

• (3) Execution of diligence on the dependence under a warrant granted under Part 1A of the 1987 Act in relation to a relevant penalty is not competent unless HMRC commence proceedings before the First-tier Tribunal in relation to the penalty before the end of the initial period (whether before or after the making of the application for the warrant).

Freezing injunctions: Northern Ireland

89

• (1) Subsection (2) applies where —

• (a) an application is made on behalf of HMRC to a court in Northern Ireland for a freezing injunction in relation to a relevant penalty (see section 90) before the penalty is determined, and

• (b) the court considering the application is satisfied that HMRC have a good arguable case in relation to the penalty and—

• (i) have commenced proceedings before the First-tier Tribunal in relation to it, or

• (ii) intend to commence proceedings before the First-tier Tribunal in relation to it within the initial period.

• (2) The court is to determine the application as if it were being made immediately after the First-tier Tribunal had determined the penalty on the basis sought, or to be sought, by HMRC.

• (3) A freezing injunction granted by virtue of subsection (2) may not take effect unless HMRC commence proceedings before the First-tier Tribunal in relation to the penalty before the end of the initial period (whether before or after the making of the application for the injunction).

• (4) In this section, a “freezing injunction” is an injunction granted in accordance with Order 29 of the Rules of the Court of Judicature (NI) 1980 (S.R. (N.I.) 1980 No. 346) or Order 14 of the County Court Rules (Northern Ireland) 1981 (S.R. (N.I.) 1981 No. 225), which restrains a party from—

• (a) removing from the jurisdiction assets located there, or

• (b) dealing with any assets, whether located within the jurisdiction or not.

Sections 87, 88 and 89: interpretation etc

90

• (1) This section applies for the purposes of sections 87, 88 and 89.

• (2) “HMRC” means “Her Majesty’s Revenue and Customs”.

• (3) A relevant penalty is a penalty that is to be determined by the First-tier Tribunal under—

• (a) section 98C of TMA 1970 (disclosure of tax avoidance schemes);

• (b) Schedule 35 to FA 2014 (promoters of tax avoidance schemes: penalties);

• (c) Schedule 36 to FA 2008 (information and inspection powers) as it has effect in relation to Schedule 16 to F(No.2)A 2017 (penalties for enablers of defeated tax avoidance) (see Part 9 of Schedule 16 to F(No.2)A 2017);

• (d) Schedule 17 to F(No.2)A 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes).

• (4) The “initial period” is the period of 72 hours beginning with the time at which the application mentioned in section 87, 88 or 89, as the case may be, is determined.

• (5) In calculating the period of 72 hours in subsection (4), disregard the whole of any day that is—

• (a) a Saturday,

• (b) a Sunday,

• (c) Christmas Day,

• (d) Good Friday, or

• (e) a bank holiday under the Banking and Financial Dealings Act 1971 in the part of the United Kingdom in which the application mentioned in section 87, 88 or 89, as the case may be, is made.

Penalties for facilitating avoidance schemes involving non-resident promoters

91

• (1) Schedule 13 makes provision for and about penalties for facilitating avoidance schemes involving non-resident promoters.

• (2) In consequence of that Schedule, in Schedule 13 to FA 2020 (joint and several liability of company directors etc), in paragraph 5(6), after paragraph (e) insert—

(f) Schedule 13 to FA 2022 (penalties for facilitating avoidance schemes involving non-resident promoters).

Electronic sales suppression penalties

92

Schedule 14 makes provision for and in connection with—

• (a) penalties for persons who engage in activities involving tools used, or capable of being used, to suppress electronic sales records, and

• (b) powers for Her Majesty’s Revenue and Customs to gather information in relation to such persons and such tools.

Tobacco products: tracing and security

93

• (1) TPDA 1979 is amended in accordance with subsections (2) to (4).

• (2) After section 8J insert—

(8JA) (1) The Commissioners may by regulations— (a) establish, and make provision about the operation of, a traceability system for tobacco products; (b) require security features to be applied to tobacco products. (2) For the purposes of subsection (1)— (a) a traceability system for tobacco products means a system under which the movements of tobacco products are recorded; (b) security features applied to tobacco products are features that a unit pack, or the packaging containing more than one unit pack, of tobacco products must carry for the purpose of enabling the identification of the products and the verification of their authenticity. (3) Tracing and security regulations may (among other things)— (a) require a unit pack, or the packaging containing more than one unit pack, of tobacco products to be marked with a unique code; (b) confer functions on the Commissioners or other persons (including functions involving the exercise of a discretion); (c) make provision by reference to things set out (whether by the Commissioners or other persons) in a notice given in accordance with the regulations; (d) specify technical standards (including by making provision under paragraph (c)); (e) make provision about the processing of data (including provision about the recording, transmission, storing and accessing of data); (f) impose, or enable the imposition of, restrictions or requirements on persons of a specified description; (g) provide for the imposition of sanctions for failure to comply with such restrictions or requirements (see section 8JB); (h) provide for appeals from, and reviews of, decisions taken under the regulations. (4) Regulations under subsection (3)(f) may, in particular— (a) specify, or provide for the specification of, equipment or other material for use in connection with a restriction or requirement imposed by or under the regulations; (b) require persons of a specified description to provide such equipment or material to other persons of a specified description for specified purposes; (c) make provision about the way in which such equipment or material is to be provided, including how any costs are to be met by persons providing or receiving it. (5) Tracing and security regulations may— (a) make provision generally in relation to tobacco products or only in relation to specified descriptions of tobacco products; (b) make different provision for different areas; (c) make provision by supplementing or otherwise amending relevant existing law; (d) revoke relevant existing law. (6) The power to make regulations under this section is exercisable only where the Commissioners consider that doing so would facilitate the administration, collection or enforcement of the duty charged under section 2. (7) In this section and sections 8JB and 8JC— - “relevant existing law” means— Chapter 2 of Part 1 of the Finance Act 1994 (customs and excise: appeals and penalties); the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009 (S.I. 2009/273); the Standardised Packaging of Tobacco Products Regulations 2015 (S.I. 2015/829); Commission Delegated Regulation (EU) 2018/573 of 15 December 2017 on key elements of data storage contracts to be concluded as part of a traceability system for tobacco products; Commission Implementing Regulation (EU) 2018/574 of 15 December 2017 on technical standards for the establishment and operation of a traceability system for tobacco products; Commission Implementing Decision (EU) 2018/576 of 15 December 2017 on technical standards for security features applied to tobacco products; the Tobacco Products (Traceability and Security Features) Regulations 2019 (S.I. 2019/594); - “specified” means specified by or under tracing and security regulations; - “traceability system for tobacco products” has the meaning given in subsection (2)(a); - “tracing and security regulations” means regulations under subsection (1); - “unit pack” means the smallest individual packaging in which a tobacco product is, or is intended to be, presented for sale to a consumer (but not including any transparent wrapper). (8JB) (1) This section applies to tracing and security regulations that make provision for sanctions under section 8JA(3)(g). (2) The regulations may provide for the following kinds of sanction— (a) the imposition of monetary penalties of such amounts, not exceeding £10,000, as are determined in accordance with the regulations; (b) for tobacco products involved in a contravention of applicable law to be liable to forfeiture under the customs and excise Acts; (c) the application by the Commissioners of measures to restrict or prohibit a person’s participation, or continued participation, in any part of a traceability system for tobacco products (including measures to deactivate, or require the deactivation of, any code issued to the person for the purposes of such a system or to prevent such a code from being issued or reissued). (3) Provision under subsection (2)(a) may (among other things)— (a) provide for a penalty to be payable on the giving of a notice (“a penalty notice”) by such persons as are authorised by or under the regulations; (b) specify matters to which such persons may or must have regard when determining whether to give a penalty notice; (c) provide for the action to be taken if a monetary penalty is not paid in accordance with a penalty notice. (4) For the purposes of subsection (2)(b), tobacco products are “involved in a contravention of applicable law” if— (a) the products do not comply with a requirement imposed under tracing and security regulations or under relevant existing law, or (b) the products are found together with other products falling within paragraph (a). (8JC) (1) The Commissioners (or anyone acting on their behalf) may, for a purpose within subsection (3), disclose information to— (a) a person on whom functions have been conferred by or under tracing and security regulations or relevant existing law; (b) an authorised officer of such a person. (2) A person mentioned in subsection (1)(a) or (b) may, for a purpose within subsection (3), disclose information to the Commissioners (or anyone acting on their behalf). (3) A purpose is within this subsection if it is connected with— (a) a function conferred by or under tracing and security regulations or relevant existing law, or (b) the enforcement of a restriction or requirement imposed by or under tracing and security regulations or relevant existing law. (4) A person who receives information as a result of subsection (1) may not— (a) use the information for a purpose other than a purpose within subsection (3), or (b) further disclose the information, except with the consent of the Commissioners (which may be general or specific). (5) If— (a) a person discloses information in contravention of subsection (4)(b), and (b) the information relates to a person whose identity is specified in, or can be deduced from, the disclosure, section 19 of the Commissioners for Revenue and Customs Act 2005 (offence of wrongful disclosure) applies in relation to that disclosure as it applies in relation to a disclosure of information in contravention of section 20(9) of that Act. (6) Nothing in this section authorises the making of a disclosure which would— (a) contravene the data protection legislation, or (b) be prohibited by the investigatory powers legislation. In determining whether a disclosure would do either of those things, the powers conferred by this section are to be taken into account. (7) In subsection (6)— - “the data protection legislation” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act); - “the investigatory powers legislation” means Parts 1 to 7 and Chapter 1 of Part 9 of the Investigatory Powers Act 2016. (8) Nothing in this section limits the circumstances in which information may be disclosed under section 18(2) of the Commissioners for Revenue and Customs Act 2005 or under any other enactment or rule of law. (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 by virtue of this section.

• (3) In section 9 (regulations), in subsection (1A) after “section” insert “8JA,”.

• (4) In section 10 (interpretation), in subsection (3), after ““the Commissioners”” insert—

• “the customs and excise Acts”

.

• (5) In Schedule 41 to FA 2008 (penalties for certain VAT and excise wrongdoing etc), in paragraph 15 (interaction with other penalties and late payment surcharges), after sub-paragraph (2) insert—

(2A) If P has incurred a penalty under regulations under section 8JA(1) of TPDA 1979 (tracing and security regulations) in respect of conduct for which P is liable to a penalty under paragraph 4(1), the amount of the penalty under paragraph 4(1) is to be reduced by the amount of the penalty under those regulations.

Free zones and freeports

Short title

94

Schedule 15 makes provision about the treatment of goods in free zones for the purposes of value added tax.

Freeport tax site reliefs: provision about regulations

95

Schedule 16 makes provision about powers to vary the circumstances in which certain reliefs are available in relation to freeports.

Uncertain tax treatment

Large businesses: notification of uncertain tax treatment

96

Schedule 17 makes provision requiring bodies to notify Her Majesty’s Revenue and Customs if amounts included in a tax return have an uncertain tax treatment.

Discovery assesments etc

Discovery assessments for unassessed income tax or capital gains tax

97

• (1) In section 29 of TMA 1970 (assessment where loss of tax discovered), in subsection (1), for paragraph (a) substitute—

(a) that an amount of income tax or capital gains tax ought to have been assessed but has not been assessed,

.

• (2) In the Registered Pension Schemes (Accounting and Assessment) Regulations 2005 (S.I. 2005/3454), omit regulation 9 (which modifies section 29(1)(a) of TMA 1970).

• (3) The amendments made by this section—

• (a) have effect in relation to the tax year 2021-22 and subsequent tax years, and

• (b) also have effect in relation to the tax year 2020-21 and earlier tax years but only if the discovery assessment is a relevant protected assessment (see subsections (4) to (6)).

• (4) A discovery assessment is a relevant protected assessment if it is in respect of an amount of tax chargeable under—

• (a) Chapter 8 of Part 10 of ITEPA 2003 (high income child benefit charge),

• (b) section 424 of ITA 2007 (gift aid: charge to tax),

• (c) section 205 or 206 of FA 2004 (pensions) but only where the section is applied by Schedule 34 to that Act, or

• (d) section 208, 209, 214, 227 or 244A of FA 2004 (pensions), including where the section is applied by that Schedule.

• (5) But a discovery assessment is not a relevant protected assessment if it is subject to an appeal notice of which was given to HMRC on or before 30 June 2021 where—

• (a) an issue in the appeal is that the assessment is invalid as a result of its not relating to the discovery of income which ought to have been assessed to income tax but which had not been so assessed, and

• (b) the issue was raised on or before 30 June 2021 (whether by the appellant or in a decision given by the tribunal).

• (6) In addition, a discovery assessment is not a relevant protected assessment if—

• (a) it is subject to an appeal notice of which was given to HMRC on or before 30 June 2021,

• (b) the appeal is subject to a temporary pause which occurred before 27 October 2021, and

• (c) it is reasonable to conclude that the temporary pausing of the appeal occurred (wholly or partly) on the basis that an issue of a kind mentioned in subsection (5)(a) is, or might be, relevant to the determination of the appeal.

• (7) For the purposes of this section the cases where notice of an appeal was given to HMRC on or before 30 June 2021 include a case where—

• (a) notice of an appeal is given after that date as a result of section 49 of TMA 1970, but

• (b) a request in writing was made to HMRC on or before that date seeking HMRC’s agreement to the notice being given after the relevant time limit (within the meaning of that section).

• (8) For the purposes of this section an appeal is subject to a temporary pause which occurred before 27 October 2021 if—

• (a) the appeal has been stayed by the tribunal before that date,

• (b) the parties to the appeal have agreed before that date to stay the appeal, or

• (c) HMRC have notified the appellant (“A”) before that date that they are suspending work on the appeal pending the determination of another appeal the details of which have been notified to A.

• (9) In this section—

• “discovery assessment” means an assessment under section 29(1)(a) of TMA 1970, and

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

• “notified” means notified in writing.

Notification of liability to income tax and capital gains tax

98

• (1) Section 7 of TMA 1970 (notice of liability to income tax and capital gains tax) is amended in accordance with subsections (2) and (3).

• (2) In subsection (2A), in the words after paragraph (b)—

• (a) after “chargeable to” insert “an amount of”;

• (b) omit “on any income or gain”.

• (3) In subsection (3), in paragraph (c), for “a high income child benefit charge” substitute “an amount of tax under any provision listed in relation to the person in section 30 of ITA 2007 (additional tax)”.

• (4) In Schedule 16 to FA 2020 (taxation of coronavirus support payments), in paragraph 12(4) (notification of liability: modifications to section 7 of TMA 1970), for “after “child benefit charge”” substitute “at the end”.

• (5) The amendments made by this section have effect in relation to the tax year 2021-22 and subsequent tax years.

Calculation of income tax liability for certain charges relating to pensions

99

• (1) In section 30(1) of ITA 2007 (Step 7: additional tax)—

• (a) in the entry for section 208(2)(a), for “section 208(2)(a)” substitute “section 208”,

• (b) in the entry for section 209(3)(a), for “section 209(3)(a)” substitute “section 209”, and

• (c) after the entry for section 227 of FA 2004 insert—

• section 244A of FA 2004 (pension schemes: the overseas transfer charge),

.

• (2) The amendments made by this section have effect in relation to the tax year 2021-22 and subsequent tax years.

Temporary powers in disaster or emergency

Power to make temporary modifications of taxation of employment income

100

• (1) The Treasury may by regulations modify Part 3, 4 or 5 of ITEPA 2003 so as to provide that a liability to income tax that would otherwise arise does not arise.

• (2) Regulations under this section—

• (a) may be made only if the Treasury considers that the modifications contained in the regulations are necessary or desirable for the purpose of addressing circumstances arising as a result of a disaster or emergency;

• (b) must provide for the modifications to cease to have effect at the end of such period as is specified (and different periods may be specified in relation to different modifications).

• (3) Regulations under this section—

• (a) must specify the disaster or emergency in respect of which they are made;

• (b) may only specify a disaster or emergency which the Treasury considers to be of national significance.

• (4) The period specified under subsection (2)(b) in relation to a modification—

• (a) must be no longer than the Treasury considers necessary for the purpose mentioned in subsection (2)(a);

• (b) must in any event end before the last day of the tax year following the tax year in which the modification first takes effect.

• (5) The expiry of a modification contained in regulations under this section in relation to a disaster or emergency is not to be taken as preventing the making of provision to the same or similar effect in further regulations under this section in relation to that (or another) disaster or emergency.

• (6) Regulations under this section may—

• (a) make different provision for different cases;

• (b) make retrospective provision;

• (c) make incidental or supplemental provision;

• (d) make consequential provision (which may include provision modifying any provision of the Income Tax Acts).

• (7) In this section, “specified” means specified in the regulations.

Emissions certificates for vehicles

Vehicle CO2 emissions certificates

101

Schedule 18 makes provision about certificates in relation to the CO₂ emissions of vehicles for the purposes of—

• (a) section 268C(1) of CAA 2001 (meaning of “qualifying emissions certificate”),

• (b) Chapter 6 of Part 3 of ITEPA 2003 (taxable benefits: cars etc), and

• (c) Part 1A of Schedule 1 to VERA 1994 (light passenger vehicles: rates of duty).

...

Increase in membership of the Office of Tax Simplification

102

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

Final

Interpretation

103

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

CAA 2001	Capital Allowances Act 2001
CRCA 2005	Commissioners for Revenue and Customs Act 2005
CTA 2009	Corporation Tax Act 2009
CTA 2010	Corporation Tax Act 2010
FA followed by a year	Finance Act of that year
F(No.2)A followed by a year	Finance (No.2) Act of that year
FISMA 2000	Financial Services and Markets Act 2000
HODA 1979	Hydrocarbon Oil Duties Act 1979
ITA 2007	Income Tax Act 2007
ITEPA 2003	Income Tax (Earnings and Pensions) Act 2003
ITTOIA 2005	Income Tax (Trading and Other Income) Act 2005
TCGA 1992	Taxation of Chargeable Gains Act 1992
TCTA 2018	Taxation (Cross-border Trade) Act 2018
TIOPA 2010	Taxation (International and Other Provisions) Act 2010
TMA 1970	Taxes Management Act 1970
TPDA 1979	Tobacco Products Duty Act 1979
VATA 1994	Value Added Tax Act 1994
VERA 1994	Vehicle Excise and Registration Act 1994

Short title

104

This Act may be cited as the Finance Act 2022.

SCHEDULE 1

PART 1 — Main amendments of ITTOIA 2005

1

Part 2 of ITTOIA 2005 (trading income) is amended as follows.

Chapter 2 (income taxed as trade profits)

2

• (1) Section 7 (income charged) is amended as follows.

• (2) In subsection (1), at the end insert “(including amounts treated as profits of the tax year under section 23E(1))”.

• (3) Omit subsections (2) and (3).

3

After section 7 insert—

(7A) (1) This section and sections 7B to 7D apply if a period of account of a person carrying on a trade (“the trader”) does not coincide with a tax year. (2) Any of the following steps may be taken if they are necessary in order to arrive at the profits or losses of the trade of the tax year— (a) apportioning the profits or losses of a period of account to the parts of that period falling in different tax years, and (b) adding the profits or losses of a period of account (or part of a period) to profits or losses of other periods of account (or parts). (3) The steps must be taken by reference to the number of days in the periods concerned. (4) But the trader may use a different way of measuring the length of the periods concerned if— (a) it is reasonable to do so, and (b) the way of measuring the length of periods is used consistently for the purposes of the trade. (5) Sections 7B and 7C contain rules for the purpose of avoiding the need to apportion profits or losses under this section (and section 7D makes provision for the trader to elect for those rules not to apply). (6) This section and sections 7B to 7D apply to professions and vocations as they apply to trades. (7B) (1) This section applies if, in a tax year (“the relevant tax year”), the trader— (a) starts to carry on the trade after 31 March, and (b) does not permanently cease to carry on the trade. (2) For the purposes of this Chapter— (a) the profits or losses of the trade of the relevant tax year are treated as nil, and (b) the actual profits or losses of the trade of the relevant tax year are treated as arising in the following tax year. (7C) (1) This section applies if, in a tax year (“the relevant tax year”), the trader— (a) does not start to carry on the trade or does so before 1 April, (b) does not permanently cease to carry on the trade, and (c) has an accounting date that is 31 March or 1, 2, 3 or 4 April. (2) For the purposes of this Chapter— (a) the profits or losses of the trade of the period beginning immediately after the accounting date and ending with 5 April in the relevant tax year are treated as nil, and (b) the actual profits or losses of the trade of that period are treated as arising in the following tax year. (3) In this section, “accounting date” in relation to a tax year means— (a) the date in the tax year to which accounts are drawn up, or (b) if there are two or more such dates, the latest of them. (7D) (1) The trader may make an election under this section in relation to the trade. (2) If an election under this section has effect for a tax year, neither of sections 7B and 7C apply in relation to the trade for that tax year. (3) An election under this section— (a) must be made on or before the first anniversary of the normal self-assessment filing date for the first tax year for which it is to have effect, and (b) has effect for that tax year and the four tax years following that tax year (subject to subsection (4)). (4) If the trader permanently ceases to carry on the trade before the end of the last of the tax years mentioned in subsection (3)(b), the election has effect for each tax year up to and including the tax year immediately before the tax year in which the trader permanently ceases to carry on the trade.

Chapter 3A (trade profits: cash basis)

4

In section 31A (conditions to be met for profits to be calculated on cash basis), in subsection (5)(a), omit “the basis period for”.

5

• (1) Section 31B (relevant maximum for purposes of section 31A) is amended as follows.

• (2) In subsection (6), for “where the basis period for a tax year is less than 12 months” substitute “where the trade, profession or vocation is carried on for only part of a tax year”.

• (3) In subsection (7), in the definition of “universal credit claimant”, omit “the basis period for”.

6

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

7

• (1) Section 31E (calculation of profits on cash basis) is amended as follows.

• (2) In subsection (2), in each of Steps 1 and 2, omit “the basis period for”.

• (3) At the end insert—

(4) In determining the profits of a trade on the cash basis, section 7A(2) applies as if the profits or losses of a period of account were determined in accordance with subsection (2) of this section (and for these purposes, references in subsection (2) of this section to a tax year are to be read as references to a period of account).

Chapter 15 (basis periods)

8

Omit Chapter 15 (basis periods).

PART 2 — Other amendments of ITTOIA 2005

9

ITTOIA 2005 is amended as follows.

Part 2 (trading income)

10

• (1) Section 17 (effect of becoming or ceasing to be a UK resident) is amended as follows.

• (2) In subsection (1), for “otherwise than in partnership” substitute “(alone or in partnership)”.

• (3) Omit subsection (5).

11

In section 47 (business gifts: exceptions), in subsection (3)(b), for “basis period” substitute “tax year”.

12

In section 133 (meaning of “relevant period” for purposes of Chapter 9), in paragraph (b) omit “the basis period for”.

13

• (1) Section 154A (certain non-UK residents with interest on 3.5% War Loan 1952 Or After) is amended as follows.

• (2) In subsection (3)—

• (a) in Step 1, omit “the basis period for”;

• (b) in each of Steps 3, 4 and 5, for “basis period” substitute “tax year”.

• (3) In subsection (4)—

• (a) for “basis period”, in each place those words occur, substitute “tax year”;

• (b) for “that period” substitute “that tax year”.

• (4) In subsection (5), for “basis period” substitute “tax year”.

14

• (1) Section 225ZD (compensation for compulsory slaughter of animals: effect of claim for spreading profits) is amended as follows.

• (2) In subsection (1), in each of Steps 2 and 3, for “whose basis period”, in each place those words occur, substitute “which”.

• (3) Omit subsection (2).

15

In section 240B (“entering the cash basis”), in paragraph (b), omit “the basis period for”.

16

In section 240C (unrelieved qualifying expenditure: Parts 2, 7 and 8 of CAA 2001), in subsection (1)(b)—

• (a) omit “the basis period for”;

• (b) for “with that basis period” substitute “in that tax year”.

17

In section 240D (assets not fully paid for), in subsection (1)(b), omit “the basis period for”.

18

In section 240E (effect of election where predecessor and successor are connected persons), in subsection (1)(c), omit “the basis period for”.

19

In section 246 (basic meaning of “post-cessation receipt”), in subsection (3)—

• (a) at the end of paragraph (a), insert “and”;

• (b) omit paragraph (c) and the “and” before it.

Part 5 (miscellaneous income)

20

In section 613 (films and sound recordings: application of trading income rules to non-trade businesses), omit paragraph (a) and the “and” at the end of that paragraph.

Part 6A (income charged under ITTOIA 2005: trading and property allowances)

21

• (1) Section 783AI (partial relief: alternative calculation of trade profits) is amended as follows.

• (2) In subsection (2), omit Step 3.

• (3) Omit subsection (4).

Part 7 (rent-a-room and qualifying care relief)

22

• (1) Section 786 (meaning of “rent-a-room receipts”) is amended as follows.

• (2) In subsection (1)(b), for “subsections (3) and (4)” substitute “subsection (4)”.

• (3) Omit subsection (3).

• (4) In subsection (4), in the words before paragraph (a), omit “Otherwise”.

23

• (1) Section 805 (meaning of “qualifying care receipts”) is amended as follows.

• (2) In subsection (1)(b), for “subsections (2) and (3)” substitute “subsection (3)”.

• (3) Omit subsection (2).

• (4) In subsection (3), omit “Otherwise”.

24

Omit section 828 (overlap profit).

Part 9 (partnerships)

25

Omit sections 852 to 856 (firms with trading income).

26

In section 857 (partners to whom the remittance basis applies), in subsection (2), for “856” substitute “851”.

27

In section 860 (adjustment income), in subsection (7), for “856” substitute “851”.

Part 10 (general provisions)

28

In section 867 (business entertainment and gifts: non-trades and non-property businesses), in subsection (5), omit “(but as if the reference to a basis period were to a tax year)”.

Schedule (abbreviations and defined expressions)

29

Part 2 of Schedule 4 (index of defined expressions) is amended as follows—

• (a) omit the entry for “accounting date”;

• (b) omit the entry for “overlap period”;

• (c) omit the entry for “overlap profit”.

PART 3 — Amendments of other Acts

Taxes Management Act 1970

30

TMA 1970 is amended as follows.

31

In section 8 (personal return), in subsection (1C), omit “or its basis period”.

32

In Schedule A1 (as inserted by section 60(3) of F(No.2)A 2017), in paragraph 8 (end of period statement)—

• (a) for sub-paragraph (2) substitute—

(2) “Relevant period” means a tax year.

;

• (b) omit sub-paragraph (6)(b).

Capital Allowances Act 2001

33

CAA 2001 is amended as follows.

34

• (1) Section 59 (unrelieved qualifying expenditure) is amended as follows.

• (2) In subsection (4), for “with the basis period for the previous tax year” substitute “in the previous tax year (or, if there is more than one such period, the latest of them)”.

• (3) In subsection (8)(b)—

• (a) omit “the basis period for”;

• (b) for “with that basis period” substitute “in that tax year (or, if there is more than one such period, the latest of them)”.

35

In section 419A (unrelieved qualifying expenditure: entry to cash basis), in subsection (1), for “with the basis period for the tax year”, in both places, substitute “in the tax year (or, if there is more than one such period, the latest of them)”.

36

In section 461A (unrelieved qualifying expenditure: entry to cash basis), in subsection (1), for “with the basis period for the previous tax year” substitute “in the previous tax year (or, if there is more than one such period, the latest of them)”.

37

In section 475A (unrelieved qualifying expenditure: entry to cash basis), in subsection (1), for “with the basis period for the previous tax year” substitute “in the previous tax year (or, if there is more than one such period, the latest of them)”.

Income Tax Act 2007

38

ITA 2007 is amended as follows.

39

In section 24A (limit on Step 2 deductions), omit subsection (7)(c).

40

In section 60 (overview of Chapter), in subsection (3), omit paragraph (b) and the “and” before it.

41

Omit sections 61 and 62 (losses of a tax year of persons carrying on trades etc).

42

• (1) Section 66 (restriction on relief unless trade is commercial) is amended as follows.

• (2) In subsection (2), omit “the basis period for”.

• (3) In subsection (5), for “basis period”, in each place, substitute “tax year”.

43

• (1) Section 70 (determining losses in previous tax years) is amended as follows.

• (2) Omit subsection (2).

• (3) In subsection (3), in the words before paragraph (a), for “This loss” substitute “The loss”.

• (4) In subsection (4), in the words after paragraph (b)—

• (a) for “203(2)”, in both places, substitute “7A(2)”;

• (b) omit “to basis periods are read as references to tax years and references”.

• (5) In subsection (5), for “203(3) or (4)” substitute “7A(3) or (4)”.

44

In section 74 (restrictions on relief unless trade is commercial etc), in subsection (2)—

• (a) in the words before paragraph (a), omit “the basis period for”;

• (b) in paragraph (b), for “basis period” substitute “tax year”.

45

• (1) Section 74C (meaning of “non-active capacity” for purposes of section 74A etc) is amended as follows.

• (2) For subsection (3) substitute—

(3) For this purpose “the relevant period” means— (a) where the individual first started to carry on the trade less than six months before the end of the tax year, the period of six months beginning with the date on which the individual first started to carry on the trade; (b) where the individual permanently ceased to carry on the trade less than six months after the start of the tax year, the period of six months ending with the date on which the individual permanently ceased to carry on the trade; (c) in any other case, the tax year.

• (3) Omit subsection (4).

46

• (1) Section 75 (trade leasing allowances given to individuals) is amended as follows.

• (2) In subsection (5)—

• (a) omit “the basis period for”;

• (b) omit “(“the loss-making basis period”)”.

• (3) In subsection (6), in each of paragraphs (a) and (b), for “loss-making basis period” substitute “tax year”.

47

In section 83 (carry forward against subsequent trade profits), in subsection (6)(f), for “sections 17(3) and 852(7)” substitute “section 17(3)”.

48

• (1) Section 90 (losses that are “terminal losses”) is amended as follows.

• (2) In subsection (4)—

• (a) for “203(3) and (4)” substitute “7A(3) and (4)”;

• (b) for “203(2)” substitute “7A(2)”.

• (3) Omit subsection (5).

49

• (1) Section 103B (meaning of “non-active partner” etc) is amended as follows.

• (2) For subsection (3) substitute—