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Finance (No. 2) Act 2023

Type Public General Act

Publication 2023-07-11

Last updated 2025-05-01

State In force

Department Statute Law Database

Source legislation.gov.uk

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Reform history JSON API

(2) Omit paragraph 35 (and the italic heading before it).

(3) In paragraph 58, after sub-paragraph (2) insert—

(3) In this Schedule, apart from in paragraphs 42 and 43 (worldwide groups), references to a company being a member of a group of companies are to be read in accordance with section 170 of TCGA 1992 (interpretation of sections 171 to 181 of that Act: groups).

Disposal of derivatives where underlying subject matter is shares

14

(1) In paragraph 53 (no chargeable gain on disposal of overseas land or certain shares), in sub-paragraph (4), at the appropriate place insert—

“derivative contract” means— a derivative contract within the meaning of Part 7 of CTA 2009 (see section 576 of that Act), or a contract which is not a derivative contract within the meaning of that Part only as a result of section 589(2)(b) of that Act (general exclusion of contracts whose underlying subject matter consists of shares);

(2) That paragraph has effect, and is to be deemed always to have had effect, with the amendment made by sub-paragraph (1).

Alternative finance arrangements

15

(1) After paragraph 58 insert—

(59) (1) Sub-paragraph (2) applies for the purposes of determining the amounts of relevant interests in companies in accordance with paragraphs 3 to 6 and the provisions of Chapter 6 of Part 6 of CTA 2010 applied by those paragraphs. (2) Where a person has (in substance) a beneficial entitlement to the profits of a company as a result of qualifying alternative finance arrangements— (a) that entitlement is to be treated as an entitlement to a proportion of the profits of that company available for distribution to equity holders of the company, and (b) that person is to be treated as an equity holder. (3) “Qualifying alternative finance arrangements” means arrangements— (a) that constitute alternative finance arrangements for the purposes of Chapter 6 of Part 6 of CTA 2009 (alternative finance arrangements), or (b) that do not constitute alternative finance arrangements only as a result of section 508 of that Act (exclusion provision not at arms length). (4) But arrangements that are analogous to a normal commercial loan are not qualifying alternative finance arrangements. (5) Arrangements are analogous to a normal commercial loan if, were the arrangements structured as a loan that resulted in the same or similar entitlements of the parties to the arrangements, they would constitute a normal commercial loan within the meaning of section 162 of CTA 2010.

(2) In paragraph 3, after sub-paragraph (5) insert—

(5A) See also paragraph 59, which makes provision for parties to alternative finance arrangements who are equivalent to equity holders to be treated as such.

(3) In paragraph 58(1), in the definition of “equity holder” at the end insert “, but see also paragraph 59 of this Schedule”.

Schedule 5

Part 1 — Amendments relating to corporation tax

Records to be kept for the purposes of corporation tax

1

(1) In Part 3 of Schedule 18 to FA 1998 (duty to keep and preserve records), paragraph 21 is amended as follows.

(2) After sub-paragraph (5A) insert—

(5AA) Regulations under this paragraph may make provision, in relation to relevant transfer pricing records specified, or of a description specified, in the regulations— (a) as to the form or manner in which those records are to be kept and preserved; (b) by reference to things specified in the transfer pricing guidelines (within the meaning of section 164 of TIOPA 2010 (interpretation in accordance with OECD principles)).

(3) For sub-paragraph (6) substitute—

(6) For the purposes of this paragraph— (a) records are “relevant transfer pricing records” if the Commissioners for His Majesty’s Revenue and Customs reasonably consider that the records may relate to the calculation of profits or losses in accordance with Part 4 of TIOPA 2010 (transfer pricing); (b) “supporting documents” includes accounts, books, deeds, contracts, vouchers and receipts.

Assessments relating to corporation tax

2

In Part 5 of Schedule 18 to FA 1998 (determinations and assessments), after paragraph 49 insert—

(49A) (1) This paragraph applies where— (a) the situation mentioned in paragraph 41(1) or (2) has been brought about by a person within any of paragraphs (a) to (c) of paragraph 43 (“P”) as regards a relevant accounting period of a company, (b) the situation relates to the calculation of profits or losses in accordance with Part 4 of TIOPA 2010 (transfer pricing) for the purposes of that period, and (c) the company has failed to comply, in relation to specified relevant transfer pricing records that relate to the calculation, with either or both of— (i) paragraph 21 (duty to keep and preserve records), and (ii) an information notice (within the meaning of Schedule 36 to the Finance Act 2008 (information and inspection powers)). (2) It is to be presumed for the purposes of this Part of this Schedule that the situation mentioned in paragraph 41(1) or (2) was brought about carelessly by P, unless— (a) the situation was brought about deliberately by P, or (b) the company satisfies HMRC or (on an appeal notified to the tribunal) the tribunal that P took reasonable care to avoid the situation. (3) For the purposes of this paragraph— (a) “relevant accounting period of a company” means an accounting period in respect of which— (i) the company, together with one or more other enterprises, constitutes an MNE Group within the meaning of the Taxes (Base Erosion and Profit Shifting) (Country-by-Country Reporting) Regulations 2016 (S.I. 2016/237) (see regulation 2(3) of those Regulations), and (ii) the MNE Group meets the threshold requirement within the meaning of those Regulations (see regulations 3(2) to (4) of those Regulations); (b) records are “specified relevant transfer pricing records” if— (i) they are relevant transfer pricing records specified, or of a description specified, in regulations under paragraph 21 (duties to keep and preserve records), and (ii) the company is required to keep and preserve those records under that paragraph.

Part 2 — Amendments relating to income tax

Records to be kept for the purposes of income tax

3

(1) In Part 2 of TMA 1970 (records), section 12B (records to be kept for purposes of returns) is amended as follows.

(2) After subsection (5B) insert—

(5BA) Regulations under this section may make provision, in relation to relevant transfer pricing records specified, or of a description specified, in the regulations— (a) as to the form or manner in which those records are to be kept and preserved; (b) by reference to things specified in the transfer pricing guidelines (within the meaning of section 164 of TIOPA 2010 (interpretation in accordance with OECD principles)).

(3) In subsection (6)—

(a) omit the “and” after paragraph (a);

(b) after that paragraph insert—

(aa) records are “relevant transfer pricing records” if the Commissioners for His Majesty’s Revenue and Customs reasonably consider that the records may relate to the calculation of profits or losses in accordance with Part 4 of TIOPA 2010 (transfer pricing);

Other amendments

4

In Part 4 of TMA 1970 (assessment and claims), after section 30B insert—

(30C) (1) This section applies where— (a) the situation mentioned in section 29(1) has been brought about by a relevant trustee, or a person acting on their behalf, as regards a relevant year of assessment, (b) the situation relates to the calculation of profits or losses in accordance with Part 4 of TIOPA 2010 (transfer pricing) for the purposes of that year, and (c) the relevant person has failed to comply, in relation to specified relevant transfer pricing records that relate to the calculation, with either or both of— (i) section 12B (records to be kept for the purposes of returns), and (ii) an information notice (within the meaning of Schedule 36 to the Finance Act 2008 (information and inspection powers)). (2) It is to be presumed for the purposes of section 29 that the situation mentioned in section 29(1) was brought about carelessly by the relevant trustee, or the person acting on their behalf, unless— (a) the situation was brought about deliberately by the relevant trustee, or the person acting on their behalf, or (b) the relevant trustee satisfies HMRC or (on an appeal notified to the tribunal) the tribunal that they, or the person acting on their behalf, took reasonable care to avoid the situation. (3) For the purposes of this paragraph— (a) “relevant person” means a person who was required by a notice under section 8A to make and deliver the return in respect of the relevant year of assessment; (b) “relevant year of assessment” means a year of assessment in respect of which— (i) the trustees of the trust concerned, together with one or more other enterprises, constitutes an MNE Group within the meaning of the Taxes (Base Erosion and Profit Shifting) (Country-by-Country Reporting) Regulations 2016 (S.I. 2016/237) (see regulation 2(3) of those Regulations), and (ii) the MNE Group meets the threshold requirement within the meaning of those Regulations (see regulations 3(2) to (4) of those Regulations); (c) records are “specified relevant transfer pricing records” if— (i) they are relevant transfer pricing records specified, or of a description specified, in regulations under section 12B, and (ii) the relevant person is required to keep and preserve those records under that section. (30D) (1) This section applies where— (a) the situation mentioned in section 30B(1) has been brought about by a person within section 30B(5) (“P”) as regards a partnership statement in respect of a relevant period, (b) the situation relates to the calculation of profits or losses in accordance with Part 4 of TIOPA 2010 (transfer pricing) for the purposes of that period, and (c) the relevant person (whether or not P) has failed to comply, in relation to specified relevant transfer pricing records that relate to the calculation, with either or both of— (i) section 12B (records to be kept for the purposes of returns), and (ii) an information notice (within the meaning of Schedule 36 to the Finance Act 2008 (information and inspection powers)). (2) It is to be presumed for the purposes of section 30B that the situation mentioned in section 30B(1) was brought about carelessly by P, unless— (a) the situation was brought about deliberately by P, or (b) the relevant person satisfies HMRC or (on an appeal notified to the tribunal) the tribunal that P took reasonable care to avoid the situation. (3) For the purposes of this paragraph— (a) “relevant period” means a period in respect of which— (i) the partnership to which the partnership statement relates, together with one or more other enterprises, constitutes an MNE Group within the meaning of the Taxes (Base Erosion and Profit Shifting) (Country-by-Country Reporting) Regulations 2016 (S.I. 2016/237) (see regulation 2(3) of those Regulations), and (ii) the MNE Group meets the threshold requirement within the meaning of those Regulations (see regulations 3(2) to (4) of those Regulations); (b) “relevant person” means a person who was required by a notice under section 12AA to make and deliver the return in respect of the relevant period; (c) records are “specified relevant transfer pricing records” if— (i) they are relevant transfer pricing records specified, or of a description specified, in regulations under section 12B, and (ii) the relevant person is required to keep and preserve those records under that section.

Part 3 — Amendments relating to corporation tax and income tax

Penalties for errors

5

(1) Schedule 24 to FA 2007 (penalties for errors) is amended as follows.

(2) In Part 1 (liability for penalty), after paragraph 3B insert—

(3C) (1) This paragraph applies where— (a) a document of a kind listed in the Table in paragraph 1 relating to a relevant tax period is given to HMRC by a person (“P”), (b) the document contains an inaccuracy— (i) which falls within paragraph 1(2), and (ii) which involves the calculation of profits or losses in accordance with Part 4 of TIOPA 2010 (transfer pricing) for the purposes of that period, and (c) the relevant person (whether or not P) failed to comply, in relation to specified relevant transfer pricing records that relate to the inaccuracy, with one or more of— (i) section 12B of TMA 1970 (records to be kept for the purposes of returns), (ii) paragraph 21 of Schedule 18 to FA 1998 (duty to keep and preserve records), and (iii) an information notice (within the meaning of Schedule 36 to FA 2008 (information and inspection powers)). (2) It is to be presumed that the inaccuracy was careless, within the meaning of paragraph 3, unless— (a) the inaccuracy was deliberate on P’s part, or (b) P satisfies HMRC or (on an appeal notified to the tribunal) the tribunal that P took reasonable care to avoid the inaccuracy. (3) Sub-paragraphs (4) to (6) apply for the purposes of this paragraph. (4) “Relevant person”, in relation to a document of a kind listed in the Table in paragraph 1, means— (a) the person to whose tax liability the document relates, (b) in the case of a return under section 8A of TMA 1970 (trustee's return), a relevant trustee (within the meaning of that Act), or (c) in the case of a partnership return, or a statement, declaration or accounts in connection with a partnership return, a person who was required by a notice under section 12AA of TMA 1970 (partnership return) to make and deliver a return in respect of relevant tax period. (5) “Relevant tax period” means a tax period— (a) in respect of which— (i) the person mentioned in sub-paragraph (4)(a), (ii) in the case mentioned in sub-paragraph (4)(b), the trustees of the trust concerned, or (iii) in the case mentioned in sub-paragraph (4)(c), the partnership to which the partnership return relates, together with one or more other enterprises, constitutes an MNE Group within the meaning of the Taxes (Base Erosion and Profit Shifting) (Country-by-Country Reporting) Regulations 2016 (S.I. 2016/237) (see regulation 2(3) of those Regulations), and (b) in respect of which the MNE Group meets the threshold requirement within the meaning of those Regulations (see regulations 3(2) to (4) of those Regulations). (6) Records are “specified relevant transfer pricing records” if— (a) they are relevant transfer pricing records specified, or of a description specified, in regulations under section 12B of TMA 1970 or paragraph 21 of Schedule 18 to FA 1998 (duties to keep and preserve records), and (b) the relevant person is required to keep and preserve those records under either or both of those provisions.

(3) In Part 4 (miscellaneous), in paragraph 18 (agency), in sub-paragraph (6)—

(a) for “Paragraph 3A applies” substitute “Paragraphs 3A and 3C apply”;

(b) for “it applies” substitute “they apply”.

Information and inspection powers

6

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

(2) In Part 4 (restrictions on powers), in paragraph 21 (taxpayer notices following tax return)—

(a) in sub-paragraph (3), for “D” substitute “E”;

(b) after sub-paragraph (8) insert—

(8A) Condition E is that the notice is given for the purpose of obtaining any specified relevant transfer pricing information or documents. (8B) For the purposes of Condition E, information or documents are “specified relevant transfer pricing information or documents” if— (a) they are relevant transfer pricing records specified, or of a description specified, in regulations under section 12B of TMA 1970 or paragraph 21 of Schedule 18 to FA 1998 (duties to keep and preserve records), and (b) the relevant person is required to keep and preserve those records under either or both of those provisions. (8C) For the purposes of subsection (8B), the “relevant person” means— (a) in the case of a tax return made in respect of a chargeable period under section 8A or 12AA of TMA 1970 (trustee’s and partnership returns)— (i) the person, or (ii) a person who was required by a notice under the section concerned to make and deliver the return; (b) in any other case, the person.

;

(3) In Part 6 (special cases), after paragraph 37B insert—

(37C) (1) This paragraph applies to an information notice given to a relevant person in an MNE Group (“A”) to the extent that the notice refers to specified relevant transfer pricing documents. (2) Paragraph 18 (documents not in person’s possession or power) does not apply in relation to a specified relevant transfer pricing document that— (a) is not in A’s possession or power, but (b) is in the power or possession of another relevant person in the MNE Group concerned (“B”), (and accordingly the information notice may require A to produce the document). (3) For the purposes of this paragraph— (a) documents are “specified relevant transfer pricing documents” if— (i) they are relevant transfer pricing records specified, or of a description specified, in regulations under section 12B of TMA 1970 or paragraph 21 of Schedule 18 to FA 1998 (duties to keep and preserve records), and (ii) A is required to keep and preserve those records under either or both of those provisions; (b) “MNE Group” has the same meaning as in the Taxes (Base Erosion and Profit Shifting) (Country-by-Country Reporting) Regulations 2016 (S.I. 2016/237) (see regulation 2(3) of those Regulations); (c) “relevant person in an MNE Group” means— (i) a company, (ii) a trustee of a trust, or (iii) a partner in a partnership, where that company, the trustees or the partnership, together with one or more other enterprises, constitutes an MNE Group.

Part 4 — Commencement

7

Regulations made under—

(a) paragraph 21 of Schedule 18 to FA 1998 by virtue of the amendments made by paragraph 1 of this Schedule, or

(b) section 12B of TMA 1970 by virtue of the amendments made by paragraph 3 of this Schedule,

have effect in relation to such accounting periods or tax years beginning on or after 1 April 2023 as are specified in the regulations.

Schedule 6

Spirits

1

“Spirits” means—

(a) spirits of any description, and

(b) any mixture or compound made with spirits (including, subject to the following provisions of this Schedule, mixtures that also contain other alcoholic products).

2

The extraction of spirits absorbed in a wooden cask is treated, for the purposes of this Part, as the production of spirits.

Beer

3

“Beer” means—

(a) ale,

(b) porter,

(d) any other type of beer, and

(e) any other product which is made or sold as beer or as a substitute for beer.

4

(1) A qualifying beer-based beverage is treated as beer for the purposes of this Part.

(2) “Beer-based beverage” means a beverage which is a mixture of beer and any of the following—

(a) fruit or ginger—

(i) cordial,

(ii) carbonated water,

(iii) juice, or

(iv) squash;

(b) lemonade or limeade;

(d) any alcoholic product or other alcoholic substance.

(3) A beer-based beverage is “qualifying” if—

(a) it would, apart from this paragraph, fall within paragraph 12 (other fermented products), and

(b) it is of an alcoholic strength not exceeding 5.5%.

Cider

5

“Cider” means a product which—

(a) is obtained from the fermentation of apple juice or pear juice,

(b) has been produced without the addition, at any time, of—

(i) another alcoholic product, or

(ii) anything, other than a permitted substance, which communicates colour or flavour,

(d) is of an alcoholic strength of less than 8.5%.

6

In paragraph 5, “permitted substance” means a substance that—

(a) appears to the Commissioners to be necessary for the purposes of producing cider, and

(b) is specified in a notice published by the Commissioners for the purposes of this Schedule.

7

(1) For the purposes of paragraph 5, the juice content requirements are satisfied in relation to a product if—

(a) qualifying fruit juice comprises at least 35% of the volume of the pre-fermentation mixture for the product, and

(b) the total of—

(i) the volume of qualifying fruit juice included in the pre-fermentation mixture, and

(ii) the volume of qualifying fruit juice added after fermentation begins,

comprises at least 35% of the end product.

(2) “Qualifying fruit juice” means apple or pear juice of a gravity of at least 1033 degrees.

(3) The “gravity” of apple or pear juice in degrees is determined by—

(a) calculating the ratio of the weight of the volume of the juice to the weight of an equal volume of distilled water (both as at 20°C), and

(b) multiplying that ratio by 1000.

(4) “Pre-fermentation mixture” means the mixture of juice and other ingredients in which the fermentation (from which the cider is obtained) takes place, as that mixture exists immediately before the fermentation process begins.

(5) If the cider consists of a blend of two or more products, each constituting cider, references in sub-paragraph (4) to the pre-fermentation mixture are to the pre-fermentation mixtures for each of those products taken as a whole.

8

(1) “Sparkling cider” means cider which—

(a) if it is packaged in a closed bottle, either—

(i) due to the presence of carbon dioxide, the pressure in the bottle, measured at a temperature of 20°C, is not less than 3 bars in excess of atmospheric pressure, or

(ii) (regardless of the pressure) the bottle has a mushroom-shaped stopper held in place by a tie or fastening;

(b) if it is not packaged in a closed bottle, has characteristics similar to those of cider which (while packaged in a closed bottle) falls within paragraph (a)(i).

(2) Cider is to be regarded as having been rendered sparkling if—

(a) as a result of aeration, fermentation or any other process, it falls within sub-paragraph (1), or

(b) (if not previously rendered sparkling under paragraph (a)) it is transferred into a closed bottle which has, or the stopper of its bottle is exchanged for, a stopper of the kind mentioned in sub-paragraph (1)(a)(ii).

9

Rendering cider sparkling, at any time after the excise duty point in relation to that cider, is treated for the purposes of this Part as producing sparkling cider.

10

“Still cider” means cider that is not sparkling cider.

Wine

11

“Wine” means any product obtained from the alcoholic fermentation of fresh grapes or of the must of fresh grapes (whether or not the product is fortified with spirits).

Other fermented products

12

“Other fermented product” means a product which—

(a) is either—

(i) obtained from the alcoholic fermentation of any substance, or

(ii) obtained by mixing a product obtained from the alcoholic fermentation of any substance, or anything derived from that product, with anything else; but

(b) is not beer, cider, wine or spirits.

Schedule 7

Schedule 8

Schedule 9

Part 1 — Alcoholic products, other than qualifying draught products, of an alcoholic strength of less than 8.5%

Part 2 — Qualifying draught products of an alcoholic strength of less than 8.5%

Schedule 10

Liability to penalty

1

A penalty is payable by a person (“P”) who contravenes section 100 (1) or 103 (1).

Amount of penalty

2

(1) If the contravention is deliberate and concealed, the amount of the penalty is the maximum amount (see paragraph 10).

(2) If the contravention is deliberate but not concealed, the amount of the penalty is 70% of the maximum amount.

(3) In any other case, the amount of the penalty is 30% of the maximum amount.

(4) The contravention is—

(a) “deliberate and concealed” if the contravention is deliberate and P makes arrangements to conceal the contravention, and

(b) “deliberate but not concealed” if the contravention is deliberate but P does not make arrangements to conceal the contravention.

Reductions for disclosure

3

(1) Paragraph 4 provides for reductions in penalties under this Schedule where P discloses a contravention.

(2) P discloses a contravention by—

(a) telling the Commissioners about it,

(b) giving the Commissioners reasonable help in identifying any other contraventions of section 100 (1) or 103 (1) of which P is aware, and

(3) Disclosure of a contravention—

(a) is “unprompted” if made at a time when P has no reason to believe that the Commissioners have discovered or are about to discover the contravention, and

(b) otherwise, is “prompted”.

(4) In relation to disclosure “quality” includes timing, nature and extent.

4

(1) Where P discloses a contravention, the Commissioners must reduce the penalty to one that reflects the quality of the disclosure.

(2) If the disclosure is prompted, the penalty may not be reduced below—

(a) in the case of a contravention that is deliberate and concealed, 50% of the maximum amount,

(b) in the case of a contravention that is deliberate but not concealed, 35% of the maximum amount, and

(3) If the disclosure is unprompted, the penalty may not be reduced below—

(a) in the case of a contravention that is deliberate and concealed, 30% of the maximum amount,

(b) in the case of a contravention that is deliberate but not concealed, 20% of the maximum amount, and

Special reduction

5

(1) If the Commissioners think it right because of special circumstances, they may reduce a penalty under this Schedule.

(2) In sub-paragraph (1) “special circumstances” does not include ability to pay.

(3) In sub-paragraph (1) the reference to reducing a penalty includes a reference to—

(a) staying a penalty, and

(b) agreeing a compromise in relation to proceedings for a penalty.

Assessment

6

(1) Where P becomes liable for a penalty under this Schedule, the Commissioners must—

(a) assess the penalty,

(b) notify P, and

(2) A penalty under this Schedule must be paid before the end of the period of 30 days beginning with the day on which notification of the penalty is issued.

(3) An assessment is to be treated as an amount of duty due from P under this Act and may be recovered accordingly.

(4) An assessment of a penalty under this Schedule may not be made later than one year after evidence of facts sufficient in the opinion of the Commissioners to indicate the contravention comes to their knowledge.

(5) Two or more contraventions may be treated by the Commissioners as a single contravention for the purposes of assessing a penalty under this Schedule.

Reasonable excuse

7

(1) Liability to a penalty does not arise under this Schedule in respect of a contravention which is not deliberate if P satisfies the Commissioners or (on an appeal made to the appeal tribunal) the tribunal that there is a reasonable excuse for the contravention.

(2) For the purposes of sub-paragraph (1), where P relies on any other person to do anything, that is not a reasonable excuse unless P took reasonable care to avoid the contravention.

Companies: officer’s liability

8

(1) Where a penalty under this Schedule is payable by a company in respect of a contravention which was attributable to an officer of the company, the officer is liable to pay such portion of the penalty (which may be 100%) as the Commissioners may specify by written notice to the officer.

(2) Sub-paragraph (1) does not allow the Commissioners to recover more than 100% of a penalty.

(3) In the application of sub-paragraph (1) to a body corporate other than a limited liability partnership, “officer” means—

(a) a director (including a shadow director within the meaning of section 251 of the Companies Act 2006),

(b) a manager, and

(4) In the application of sub-paragraph (1) to a limited liability partnership, “officer” means a member.

(5) In the application of sub-paragraph (1) in any other case, “officer” means—

(a) a director,

(b) a manager,

(d) any other person managing or purporting to manage any of the company’s affairs.

(6) Where the Commissioners have specified a portion of a penalty in a notice given to an officer under sub-paragraph (1)—

(a) paragraph 5 applies to the specified portion as to a penalty,

(b) the officer must pay the specified portion before the end of the period of 30 days beginning with the day on which the notice is given,

(d) paragraph 9 applies as if the officer were liable to a penalty.

(7) In this paragraph “company” means any body corporate or unincorporated association, but does not include a partnership.

Double jeopardy

9

P is not liable to a penalty under this Schedule in respect of a contravention in respect of which P has been convicted of an offence.

The maximum amount

10

(1) In this Schedule, “the maximum amount” means £10,000.

(2) If it appears to the Treasury that there has been a change in the value of money since the last relevant date, the Treasury may by regulations substitute for the sum for the time being specified in sub-paragraph (1) such other sum as appears to them to be justified by the change.

(3) In sub-paragraph (2), “relevant date” means—

(a) the date on which the Finance (No. 2) Act 2023 is passed, and

(b) each date on which the power conferred by that sub-paragraph has been exercised.

(4) Regulations under this paragraph do not apply to any contravention which occurred before the date on which they come into force.

Appeal tribunal

11

In this Schedule “appeal tribunal” has the same meaning as in Chapter 2 of Part 1 of the FA 1994.

Schedule 11

1

(1) Section 13A(2) of FA 1994 (meaning of “relevant decision”) is amended as follows.

(2) In paragraph (c), for “section 8, 10, 11 or 36G of the Alcoholic Liquor Duties Act 1979,” substitute “section 52, 60, 78 or 79 of Part 2 of the Finance (No. 2) Act 2023 (alcohol duty),”.

(3) In paragraph (ea), for sub-paragraphs (i) and (ii) substitute—

(i) regulations under section 102 of Part 2 of the Finance (No. 2) Act 2023 (alcohol duty), or (ii) Schedule 12 to that Act;

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

In Schedule 5 to FA 1994 (decisions subject to review and appeal), for paragraph 3 (and the heading immediately preceding it) substitute—

(3) (1) The following decisions under or for the purposes of Part 2 of the Finance (No. 2) Act 2023 (alcohol duty)— (a) any decision as to whether or not any duty is to be remitted or repaid under section 73 (research and experiments) or 74 (spoilt alcoholic products) as to the conditions subject to which the duty is to be remitted or repaid; (b) any decision— (i) on a claim under section 75 for repayment of duty (alcoholic ingredients relief), or (ii) as to whether or not to remit duty under that section; (c) any decision for the purposes of section 76 (imported medical articles) or section 78 (authorised use for certain purposes) as to whether or not to recognise any article as used for medical purposes; (d) any decision for the purposes of section 78 (authorised use for certain purposes)— (i) as to the use to which any article is or is to be put, or as to the purposes for which it is or is to be used, (ii) as to whether or not permission or authorisation for any person to receive, or for the delivery of, any spirits without payment of duty is to be granted or withdrawn, or (iii) as to the conditions subject to which the permission or authorisation is granted; (e) any decision for the purposes of section 79 (imported goods not for human consumption) as to whether or not any goods are for human consumption; (f) any decision for the purposes of section 82 (approval requirement: producers) or 83 (supplementary provision about approvals)— (i) as to whether or not, and in respect of which alcoholic products, premises or activities, an approval is given, (ii) the period for which, or conditions subject to which, an approval is given, (iii) as to the revocation or variation of an approval, or (iv) as to whether a person is exempt from the approval requirement; (g) any decision as to the application of an exemption under section 86 (mixing alcoholic products); (h) any decision as to whether or not a licence for the purposes of section 91 (licence to manufacture and deal wholesale in denatured alcohol) is to be granted to a person, or as to the revocation or suspension of a licence for the purposes of that section; (i) any decision for the purposes of any provision of Chapter 7 (wholesaling of controlled alcoholic products) as to whether or not, and in which respects, a person is to be, or to continue to be, approved and registered or as to the conditions or restrictions subject to which a person is to be approved and registered; (j) any decision for the purposes of section 111 as to whether or not any drawback is to be set against an amount chargeable in respect of alcohol duty or as to the conditions subject to which drawback is set against that amount. (2) Any decision which— (a) is made under or for the purposes of any regulations under section 88 (alcoholic products regulations) of the Finance (No. 2) Act 2023, and (b) is a decision as to whether or not a person is to be required to give security for the fulfilment of an obligation or as to the form or amount of, or the conditions of, the security. (3) Any decision which is made under or for the purposes of any regulations under section 90 (denatured alcohol) or section 92 (regulations relating to denatured alcohol) of the Finance (No. 2) Act 2023 and is a decision— (a) as to whether or not any process is to be, or to continue to be, approved for any purposes; (b) as to the conditions subject to which the approval is given; (c) as to the revocation or variation of an approval; (d) as to whether or not a person is to be required to give security for the fulfilment of an obligation or as to the form or amount of, or the conditions of, the security. (4) Any decision which— (a) is made under paragraph 1 of Schedule 3 to the Finance Act 2001, and (b) relates to Part 2 of the Finance (No. 2) Act 2023.

Schedule 12

Retail containers to be stamped

1

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

Power to alter alcoholic products, and capacity of containers, to which this Schedule applies

2

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

Acquisition of, and payment for, duty stamps

3

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

Regulations

4

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

Offences of possession, sale etc of unstamped containers

5

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

Offence of using premises for sale of alcoholic products in or from unstamped containers

6

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

Alcohol sales ban following conviction for an offence under paragraph 6

7

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

Penalty for altering duty stamps

8

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

Penalty for affixing wrong, altered or forged stamps, or over-labelling

9

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

Penalty for failing to comply with regulations

10

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

Forfeiture of forged, altered or stolen duty stamps

11

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

Interpretation

12

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

Schedule 13

Part 1 — General

CEMA 1979

1

CEMA 1979 is amended in accordance with paragraphs 2 to 5.

2

(1) Section 1 (interpretation) is amended as follows.

(2) In subsection (1), in the definition of “the Customs and Excise Acts 1979”, after “the Tobacco Products Duty Act 1979” insert—

and references (however expressed) to the Customs and Excise Acts 1979, or to the group of Acts included in the Customs and Excise Acts 1979, include references to Part 2 of the Finance (No. 2) Act 2023 (alcohol duty);

(3) In subsection (3), omit “Alcoholic Liquor Duties Act 1979” and the list of expressions relating to that Act.

(4) After subsection (3) insert—

(3ZA) Any expression used in this Act or in any instrument made under this Act to which a meaning is given by Part 2 of the Finance (No. 2) Act 2023 (alcohol duty) has, except where the context otherwise requires, the same meaning in this Act or any such instrument as in that Part; and for ease of reference the following is a list of the expressions concerned— - “alcoholic product” - “beer” - “cider” - “other fermented product” - “spirits” - “wholesaler” - “wine”.

3

In section 112 (power of entry upon premises, etc of revenue traders), in subsection (5), for “dutiable alcoholic liquors” substitute “alcoholic products”.

4

(1) Section 114 (power to prohibit use of certain substances in exciseable goods) is amended as follows.

(2) In subsections (1) and (2), for “or liquor”, in each place it occurs, substitute “, product or liquid”.

(3) In subsection (3)—

(a) for “or liquor” substitute “, product or liquid”;

(b) for “substance or liquid” substitute “substance, product or liquid”.

5

In section 163A (power to search articles), in subsection (2), in the words before paragraph (a), for “dutiable alcoholic liquor” substitute “alcoholic products”.

Customs and Excise Duties (General Reliefs) Act 1979

6

In section 18 of the Customs and Excise Duties (General Reliefs) Act 1979 (interpretation) in subsection (2), for “Alcoholic Liquor Duties Act 1979” substitute “Part 2 of the Finance (No. 2) Act 2023”.

Excise Duties (Surcharges or Rebates) Act 1979

7

In section 1 of the Excise Duties (Surcharges or Rebates) Act 1979 (surcharges or rebates of amounts due for excise duties), in subsection (1), for paragraph (a) substitute—

(a) that chargeable in respect of alcoholic products;

FA 1994

8

FA 1994 is amended in accordance with paragraphs 9 to 14.

9

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

10

In section 12A (other assessments relating to excise duty matters), in subsection (3), for paragraph (bb) substitute—

(bb) section 60, 78 or 79 of the Finance (No. 2) Act 2023,

11

(1) Section 12B (section 12A: supplementary provisions) is amended as follows.

(2) In subsection (2), for paragraphs (ea) and (eb) substitute—

(ea) in the case of an assessment under section 78 of the Finance (No. 2) Act 2023, the time of delivery from the relevant premises (as defined in that section); (eb) in the case of an assessment under section 79 of that Act, the time of importation;

(3) In subsection (2)(ec), for “section 36G of that Act” substitute “section 60 of that Act”.

12

In section 16 (appeals to a tribunal), in subsection (3A), for “section 8, 10 or 11 of the Alcoholic Liquor Duties Act 1979” substitute “section 78 or 79 of the Finance (No. 2) Act 2023 (alcohol duty: certain reliefs or exemptions for spirits)”.

13

In section 16A (temporary approvals etc. pending review or appeal), in subsection (2)(c) for “section 88C ALDA 1979” substitute “section 100 of the Finance (No. 2) Act 2023”.

14

In Schedule 5 (decisions subject to review and appeal)—

(a) in the shoulder reference, for “Section 14” substitute “Section 13A”;

(b) omit paragraph 9ZA (and the heading preceding it).

VATA 1994

15

(1) In Part 2 of Schedule 8 to VATA 1994 (zero-rating: groups), Group 1 (food) is amended as follows.

(2) In excepted item 3, for the words from “any duty” to “made-wine” substitute “alcohol duty under Part 2 of the Finance (No. 2) Act 2023”.

(3) In excepted item 7, in paragraph (c), for “made-wine” substitute “other fermented products (as defined in Part 2 of the Finance (No. 2) Act 2023)”.

FA 2001

16

In paragraph 1(2) of Schedule 3 to FA 2001 (excise duty: payments by the Commissioners in case of error or delay)—

(a) in paragraph (a), for “section 8(1) or 10(1) of the Alcoholic Liquor Duties Act 1979” substitute “section 78 of the Finance (No. 2) Act 2023 (alcohol duty: authorised use for certain purposes)”;

(b) omit paragraph (b).

FA 2007

17

In Schedule 24 to FA 2007 (penalties for errors), in the Table in paragraph 1, for the entry relating to alcoholic liquor duties and statements or declarations in connection with a claim for repayment of duty under section 4(4) of FA 1995 substitute—

Alcohol duty	Statement or declaration in connection with a claim for repayment of duty under section 75 of F(No. 2)A 2023.

FA 2008

18

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

(2) In the Table in paragraph 1, for the entry relating to alcohol liquor duties and the obligation to be authorised and registered to obtain and use duty stamps under regulations under ALDA 1979 substitute—

Alcohol duty	Obligations under section 91 of F(No. 2)A 2023 (licence to manufacture and deal wholesale in denatured alcohol).
Alcohol duty	Obligation to be authorised and registered to obtain and use duty stamps under regulations under paragraph 4 of Schedule 12 to F(No. 2)A 2023 (duty stamps).

(3) In the Table in paragraph 3, for the three entries relating to ALDA 1979 substitute—

Part 2 of F(No. 2)A 2023 (alcohol duty), section 53(2)	Unauthorised repackaging of qualifying draught products.
Part 2 of F(No. 2)A 2023 (alcohol duty), section 78 (8)	Spirits: authorised use for certain purposes.
Part 2 of F(No. 2)A 2023 (alcohol duty), section 79 (2)	Spirits: imported goods not for human consumption.

TCTA 2018

19

(1) TCTA 2018 is amended as follows.

(2) In section 49 (sections 44 to 48: interpretation), in the definition of “excise duty”, for paragraph (a) substitute—

(a) Part 2 of the Finance (No. 2) Act 2023 (alcohol duty),

(3) In section 53 (meaning of “excise duty”), for paragraph (a) substitute—

(a) Part 2 of the Finance (No. 2) Act 2023 (alcohol duty),

Taxation (Post-transition Period) Act 2020

20

In section 4(2) of the Taxation (Post-transition Period) Act 2020 (“relevant excise duty provision”), for paragraphs (a) to (f) substitute—

(a) section 42 of F(No.2) A 2023 (alcohol);

Part 2 — Approvals etc.

CEMA 1979

21

CEMA 1979 is amended in accordance with paragraphs 22 to 27.

22

(1) Section 1(1) (interpretation:defined terms) is amended as follows.

(2) In the definition of “the Customs and Excise Acts 1979”, omit “the Alcoholic Liquor Duties Act 1979,”.

(3) In the definition of “excise warehouse”, omit “, and, except in that section, also includes a distiller's warehouse”.

(4) In the definition of “warehouse”—

(a) for “expressions” substitute “expression”;

(b) omit “and “distiller's warehouse””;

23

(1) Section 112 (power of entry upon premises, etc of revenue traders) is amended as follows.

(2) In subsection (3), for the words from “distiller” to “occupier” substitute “a person who produces alcoholic products or an occupier”.

(3) In subsection (6), for “a distiller” substitute “a person who produces alcoholic products”.

24

In section 113 (power to search for concealed pipes etc), in subsection (6), for the words for the words from “distillers” to “cider” substitute “persons who produce alcoholic products”.

25

In section 136 (offences in connection with claims for drawback etc), in subsection (5), for paragraph (b) substitute—

(b) section 74 of the Finance (No. 2) Act 2023 (remission or repayment of duty on spoilt alcoholic products).

26

(1) Section 160 (power to take samples) is amended as follows.

(2) In subsection (2), for the words from “any of the following” to “cider” substitute “a revenue trader to whom this subsection applies”.

(3) After subsection (2) insert—

(2A) The revenue traders to whom subsection (2) applies are persons who produce alcoholic products.

27

In section 178 (citation) in subsection (2), omit “the Alcoholic Liquor Duties Act 1979,”.

FA 1994

28

In section 16A of FA 1994 (temporary approvals etc. pending review or appeal), at the end of subsection (2) insert—

(g) approved under section 82 of the Finance (No. 2) Act 2023 (approval to produce alcoholic products).

FA 2007

29

(1) The Table in paragraph 1 of Schedule 24 to FA 2007 (penalties for errors) is amended as follows.

(2) Omit the entry relating to alcoholic liquor duties and returns under regulations under section 13, 49, 56 or 62 of ALDA 1979.

(3) After the entry relating to alcohol duty (inserted by paragraph 17 of this Schedule) insert—

Alcohol duty	Return under regulations under section 88 of F(No. 2)A 2023.

FA 2008

30

(1) The Table in paragraph 1 of Schedule 41 to FA 2008 (penalties: failure to notify etc.) is amended as follows.

(2) After the entry relating to air passenger duty insert—

Alcohol duty	Obligations under section 88 of F(No. 2)A 2023 (approval requirement: producers).

(3) Omit—

(a) the entry relating to alcohol liquor duties and obligations under sections 12(1), 47(1), 54(2), 55(2) and 62(2) of ALDA 1979 (obligations to hold licence to manufacture spirits, register to brew beer, hold licence to produce wine or made-wine and register to make cider), and

(b) the entry relating to alcohol liquor duties and the obligation to have plant and processes approved for the manufacture of spirits under regulations under section 15(6) of ALDA 1979 (distillers' warehouses).

FA 2009

31

FA 2009 is amended in accordance with paragraphs 32 and 33.

32

(1) In Schedule 55 (penalty for failure to make returns etc), in the Table in paragraph 1, for item 18 substitute—

18	Alcohol duty	Return under regulations under section 88 of F(No.2)A 2023

(2) In subsections (2) and (4) of section 106 (penalties for failure to make returns: commencement) references to Schedule 55 to that Act have effect as references to that Schedule as amended by this paragraph.

33

(1) In Schedule 56 (penalty for failure to make payments on time), in the Table in paragraph 1, for item 11E substitute—

11E	Alcohol duty	Amount payable under regulations under section 88 of F(No. 2)A 2023 (except an amount falling within item 17A, 23 or 24)	The date determined by or under regulations under section 88 of F(No. 2)A 2023 as the date by which the amount must be paid

(2) In subsections (2) and (4) of section 107 (penalties for failure to pay tax) references to Schedule 56 to that Act have effect as references to that Schedule as amended by this paragraph.

Schedule 14

Part 1 — Overview

1

(1) The Commissioners for His Majesty’s Revenue and Customs are responsible for the collection and management of multinational top-up tax.

(2) This Schedule—

(a) contains provision to enable HMRC to determine when a person is chargeable to multinational top-up tax for an accounting period;

(b) contains requirements to provide information to HMRC for the purposes of multinational top-up and taxes under the law of other territories that are equivalent to multinational top-up tax;

(d) sets out associated administrative provisions;

(e) makes consequential and other amendments to other enactments.

(3) This Schedule makes provision about a “filing member” of a multinational group (see Part 2) and contains provision requiring such a member to—

(a) register with HMRC (see Part 3);

(b) submit an information return to HMRC (see Part 4);

(d) keep and preserve records (see Part 9).

(4) Part 10 of this Schedule makes provision for when and how payment of multinational top-up tax payable is to be made.

(5) This Schedule makes provision for—

(a) penalties (see Part 11);

(b) appeals and claims for repayment of overpaid tax (see Part 12).

Part 2 — Meaning of “filing member”

2

(1) The filing member of a multinational group is the ultimate parent of that group, unless a nomination under sub-paragraph (2) is in force.

(2) The nomination referred to in sub-paragraph (1) is a nomination by the ultimate parent of the group that another person should act as the filing member.

(3) The ultimate parent may only nominate a person if—

(a) the person is a member of the group, and

(b) the person is a company.

(4) If the ultimate parent nominates a person under sub-paragraph (2), they must—

(a) nominate the same person as the filing member for the purposes of Schedule 18;

(b) if the nomination ceases to be in force, revoke the nomination referred to in paragraph (a);

(5) The ultimate parent must provide the person nominated with everything the person may reasonably require in order to comply with the obligations of a filing member under this Schedule.

(6) While a nomination under sub-paragraph (2) is in force, the filing member of a multinational group is the person nominated.

(7) A nomination is in force from the time it is made until any of the following events occurs—

(a) the ultimate parent nominates another person;

(b) the person nominated ceases to be a member of the group;

(d) the ultimate parent revokes the nomination;

(e) an officer of Revenue and Customs revokes the nomination.

(8) An officer of Revenue and Customs may revoke a nomination if the officer considers that—

(a) the ultimate parent is not complying with its obligation under sub-paragraph (5), or

(b) the person nominated is not complying with the obligations of a filing member under this Schedule.

(9) An officer of Revenue and Customs revokes a nomination by notifying the ultimate parent and the nominated person of the revocation.

(10) The revocation has effect when the notification is issued.

(11) Any nomination, or revocation of a nomination, must be in writing.

(12) Paragraph 3 makes provision for circumstances in which the ultimate parent is the filing member but is not a company.

(13) Paragraph 4 makes specific provision for a multinational group that is part of a multi-parent group.

(14) Paragraph 5 makes provision for the effect of the filing member of a multinational group changing.

3

(1) This paragraph applies where—

(a) the filing member of a multinational group is its ultimate parent, and

(b) the ultimate parent is not a company.

(2) The obligations of the filing member under this Schedule may be met by—

(a) in the case of a partnership other than a limited partnership ..., any partner;

(b) in the case of a limited partnership, any general partner;

(d) in the case of a trust, any trustee;

(e) in the case of any other arrangement, any person responsible for preparing the separate financial accounts.

(3) In this Schedule—

(a) “limited partnership” includes an entity established under the law of a territory outside the United Kingdom that is equivalent to a limited partnership, and

(b) “general partner” includes a partner of such an entity that corresponds to a general partner.

(4) See also section 232A, which contains provision about the continuity of partnerships which is relevant to this paragraph.

(5) Where an obligation of a partnership may be met by one of its partners and the partnership does not comply with that obligation—

(a) an officer of Revenue and Customs may by notice require any such partner to meet the obligation, and

(b) that partner is to be treated for that purpose as the filing member (and accordingly may be subject to any penalty for a failure to comply).

4

(1) The obligations of a filing member of a multinational group that is part of a multi-parent group may be met by the filing member of any of the groups that are part of that multi-parent group, subject to sub-paragraph (2).

(2) The obligations of the filing member may not be met by a person nominated under paragraph 2 (2) unless the ultimate parent of each group forming the multi-parent group has authorised the nomination.

(3) Any authorisation must be in writing.

5

(1) This paragraph applies if at any time (“the relevant time”) a person (“the new filing member”) becomes the filing member of a multinational group in place of another person (“the old filing member”).

(2) The obligations and liabilities of the new filing member under this Schedule include any obligations and liabilities the old filing member had under this Schedule.

(3) Anything done as the filing member of the group by or in relation to the old filing member, before the relevant time, is treated as having been done by or in relation to the new filing member.

(4) Accordingly, a penalty may be imposed on the new filing member in respect of anything done before the relevant time if, at that time, a penalty could have been imposed on the old filing member in respect of the thing done.

(5) Anything done by HMRC in relation to the old filing member under this Schedule, before the end of the day the change is notified, is treated for all purposes under this Schedule as done in relation to the new filing member.

(6) Anything that, at any time during the period beginning with the relevant time and ending with the day the change is notified, is in the process of being done under this Schedule in relation to the old filing member may be continued in relation to the new filing member.

(7) Accordingly, any reference in an enactment or other instrument to the filing member of the group is to be read, so far as necessary for the purposes of giving effect to any of sub-paragraphs (2) to (6), as being or including a reference to the new filing member.

(8) In this paragraph—

(a) any reference to an act includes an omission;

(b) any reference to the day the change is notified is to the day on which an officer of Revenue and Customs receives notification that the new filing member has become the filing member of the group.

(9) Nothing in this paragraph—

(a) prevents HMRC or anyone else, after the relevant time, from imposing a penalty, exercising any other power, or doing anything else, in relation to the old filing member in respect of anything done before the relevant time, or

(b) affects the validity of anything done before the relevant time.

Part 3 — Registration

6

(1) The filing member of a multinational group must register with HMRC if the group becomes a qualifying multinational group.

(1A) The reference to a multinational group in sub-paragraph (1) does not include a group exclusively comprised of excluded entities (who are only regarded as members of the group for certain purposes in accordance with section 127(2)).

(2) For the purposes of sub-paragraph (1), a multinational group becomes a qualifying multinational group on the first day of the first accounting period it is a qualifying multinational group (the “trigger day”).

(3) A filing member registers with HMRC by providing specified information to HMRC.

(4) The specified information is—

(a) the name of the filing member;

(b) the name of the ultimate parent (if different to the filing member);

(d) the date on which the accounting period in which the trigger day occurs will end or has ended;

(e) any other information that may be specified in a notice published by HMRC.

(5) The information must be provided in the way specified in a notice published by HMRC.

(6) The information must be provided by the end of the period of six months beginning with the day after the accounting period in which the trigger day occurs ends.

(7) In this Schedule, a “registered group” means a multinational group that is registered under this paragraph.

(8) A multinational group is registered under this paragraph if—

(a) the filing member of the group has registered under this paragraph, and

(b) a notice of de-registration is not in force in relation to the registration (see paragraph 7).

(9) Paragraphs 8 and 9 provide further notification requirements in relation to a registered group.

7

(1) This paragraph applies where the filing member of a multinational group has registered under paragraph 6.

(2) An officer of Revenue and Customs may issue the filing member with a notice of de-registration in relation to the registration.

(3) The effect of an officer issuing a notice of de-registration is that, beginning with the effective date, the registration to which the notice relates is not to be treated as a registration under paragraph 6.

(4) “The effective date” is a date specified in or determined by reference to the notice as the date on which the notice takes effect.

(5) But a notice of de-registration does not affect the validity of a registration for the purposes of any obligation arising before the effective date.

(6) An officer of Revenue and Customs may issue a notice of de-registration only if—

(a) the filing member has applied for such a notice, and

(b) it appears to the officer that the group will not be a qualifying multinational group for any accounting period beginning with the period in which the effective date falls.

8

(1) This paragraph applies where the filing member of a registered group changes.

(2) The new filing member must notify HMRC of the change before the end of the period of 6 months beginning with the day the change occurs.

(3) But, if the change occurs before the end of the period referred to in paragraph 6 (6), the new filing member may notify HMRC of the change at any time before the end of that period even if later than the end of the period in sub-paragraph (2).

(4) The notification must be given in the way specified in a notice published by HMRC.

9

(1) The filing member of a registered group must notify HMRC of any other change to the information provided under paragraph 6.

(2) The notification must be given before the end of the period of 6 months beginning with the day on which the change occurs.

(3) But, if the change occurs before the end of the period referred to in paragraph 6 (6), the filing member may notify HMRC of the change at any time before the end of that period even if later than the end of the period in sub-paragraph (2).

(4) The notification must be given in the way specified in a notice published by HMRC.

Part 4 — Information returns

10

(1) The filing member of a registered group must submit an information return to HMRC for each accounting period in which the group is a qualifying multinational group, unless sub-paragraph (4) applies.

(2) An “information return” is a return containing the following information—

(a) identification of the members of the group;

(b) information on the overall corporate structure of the group;

(d) such other information specified in a notice published by HMRC as HMRC may consider relevant to the sharing of information between Pillar Two territories in connection with the Pillar Two rules.

(3) HMRC may specify in a notice the particular items of information to be submitted as part of an information return.

(4) This sub-paragraph applies if an information return has been submitted for that period to another qualifying authority.

(5) A “qualifying authority” is an authority outside the United Kingdom with which HMRC has an agreement under which the authority will share the information contained in information returns submitted to that authority with HMRC.

(6) If sub-paragraph (4) applies, the filing member must notify HMRC (an “overseas return notification”).

(7) An information return or overseas return notification must be submitted in the way specified in a notice published by HMRC.

(8) HMRC may specify in a notice that other information is to be provided together with an overseas return notification.

(9) An information return or overseas return notification must be submitted by the end of the period of 15 months beginning with the day after the end of the accounting period in respect of which the return or notification is being submitted.

(10) But the longer period in sub-paragraph (11) applies if the return or notification is being submitted in respect of the first accounting period in relation to which the group is a registered group.

(11) Where this sub-paragraph applies, the information return or overseas return notification must be submitted by the end of the period of 18 months beginning with the day after the end of the accounting period.

(12) Where (ignoring this sub-paragraph) the date by which an information return or overseas return notification must be submitted falls before 30 June 2026, the date by which that return or notification must be submitted is 30 June 2026 instead.

11

(1) The filing member may amend a return submitted under paragraph 10 by notice to HMRC.

(2) The filing member may further amend a return previously amended by further notice to HMRC.

(3) No amendment may be made after the end of the period of 12 months beginning with the day after the latest date by which the return or notification was required to be submitted under paragraph 10.

(4) An amendment must be submitted in the way specified in a notice published by HMRC.

12

HMRC may take into account an information return in performing any of its functions.

Part 5 — Self-assessment returns

13

(1) The filing member of a registered group must submit a self-assessment return to HMRC for each accounting period, unless sub-paragraph (3) applies.

(2) A “self-assessment return” is a return containing—

(a) an assessment by the filing member as to—

(i) which members of the group are chargeable to multinational top-up tax, and

(ii) the amount of multinational top-up tax is chargeable to each such member, and

(b) such other information as may be specified in a notice published by HMRC.

(3) This sub-paragraph applies if—

(a) the conditions in sub-paragraph (5) are met in relation to the group for the accounting period,

(b) the filing member has submitted a below-threshold notification to HMRC, and

(4) A “below-threshold notification” is a notification that the filing member—

(a) considers that the conditions in sub-paragraph (5) are met for an accounting period, and

(b) does not expect that the conditions will cease to be met for that accounting period or any subsequent accounting period.

(5) The conditions are that—

(a) the group was not a qualifying multinational group in the accounting period, and

(b) the group is unlikely to be a qualifying multinational group in the next two accounting periods.

(6) A self-assessment return or below-threshold notification must be submitted in the way specified in a notice published by HMRC.

(7) HMRC may specify in a notice that other information is to be provided together with a below-threshold notification.

(8) A self-assessment return or below-threshold notification must be submitted by the end of the period of 15 months beginning with the day after the end of the accounting period in respect of which the return or notification is being submitted.

(9) But the longer period in sub-paragraph (10) applies if a self-assessment return is being submitted in respect of the first accounting period in relation to which the group is a registered group.

(10) Where this sub-paragraph applies, the self-assessment return must be submitted by the end of the period of 18 months beginning with the day after the end of the accounting period.

(11) Where (ignoring this sub-paragraph) the date by which a self assessment return or below-threshold notification must be submitted falls before 30 June 2026, the date by which that return or notification must be submitted is instead 30 June 2026 instead.

14

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