Finance (No. 2) Act 2023

• (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

• (c) allowing the Commissioners access to records for the purpose of identifying such contraventions.

• (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

• (c) in any other case, 20% of the maximum amount.

• (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

• (c) in any other case, 10% of the maximum amount.

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

• (c) state in the notice the contravention in respect of which the penalty is assessed.

• (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

• (c) a secretary.

• (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,

• (c) a secretary, and

• (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,

• (c) sub-paragraphs (3) to (5) of paragraph 6 apply as if the notice were an assessment of a penalty, and

• (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””;

• (c) omit “and, except in that section, also includes a 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;

• (c) allows for the assessment of amounts of 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);

• (c) submit a self-assessment return to HMRC (see Part 5);

• (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);

• (c) if the nomination referred to in paragraph (a) ceases to be in force, revoke the nomination.

• (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;

• (c) the person nominated ceases to be a company;

• (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;

• (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (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);

• (c) the date of the trigger day;

• (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;

• (c) information relevant to the determination of effective tax rates, top-up amounts or allocation of top-up amounts;

• (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

• (c) the filing member has not withdrawn the below-threshold notification.

• (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

• (1) The filing member may amend a return submitted under paragraph 13 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 13.

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

Part 6 — Enquiries into a self-assessment return

15

• (1) This Part of this Schedule applies if the filing member of a multinational group has submitted a self-assessment return under paragraph 13 for an accounting period.

• (2) In this Part “return” means a self-assessment return (including as amended under paragraph 14).

16

• (1) An officer of Revenue and Customs may enquire into the return if, within the time allowed, the officer gives notice to the filing member of the officer's intention to do so.

• (2) The time allowed is—

• (a) if the return was submitted on or before the submission date, up to the end of the period of 12 months after the submission date;

• (b) if the return was submitted after the submission date, up to and including the quarter day next following the first anniversary of the day on which the return was delivered;

• (c) if the return is amended under paragraph 14, up to and including the quarter day next following the first anniversary of the day on which the return was amended.

• (3) The submission date is the day ending the period for submission of the return referred to in paragraph 13(8) (or the longer period referred to in paragraph 13(10) where applicable).

• (4) The quarter days are 31 January, 30 April, 31 July and 31 October.

• (5) A notice under this paragraph is referred to in this Part of this Schedule as a “notice of enquiry”.

• (6) A return that has been the subject of one notice of enquiry may not be the subject of another, except one given in consequence of an amendment of the return.

17

• (1) An enquiry may extend to anything contained in the return, or required to be contained in the return, including anything that relates—

• (a) to the question of whether multinational top-up tax is chargeable in respect of the accounting period, or

• (b) to the amount of tax so chargeable.

• (2) But, where the notice of enquiry is given in consequence of an amendment of a return—

• (a) at a time when it is no longer possible to give a notice of enquiry under paragraph 16(2)(a) or (b),

• (b) after a partial closure notice (see paragraph 22(1)) has been issued in relation to the matters to which the amendment relates or which are affected by the amendment, or

• (c) after an enquiry into a return has been completed,

the enquiry into the return is limited to matters to which the amendment relates or that are affected by the amendment.

18

• (1) For the purposes of this Part an enquiry is in progress into a return for the whole of the period—

• (a) beginning with the day on which notice of enquiry is given in relation to that return, and

• (b) ending with the day on which the enquiry is completed.

• (2) The enquiry is completed on the day a final closure notice is given (see paragraph 22(2)).

19

• (1) If at a time when an enquiry is in progress into a return an officer of Revenue and Customs forms the opinion—

• (a) that an amount stated in the return as the amount of multinational top-up tax payable by a member of the group is insufficient, and

• (b) that unless the assessment in the return is immediately amended there is likely to be a loss of tax to the Crown,

the officer may by notice in writing to the filing member amend the assessment to make good the deficiency.

• (2) In the case of an enquiry that under paragraph 17(2) is limited to matters arising from an amendment of the return, sub-paragraph (1) applies only so far as the deficiency is attributable to the amendment.

• (3) In the case of an enquiry in relation to which one or more partial closure notices have been given, sub-paragraph (1) applies only so far as the deficiency is attributable to matters not addressed by those notices.

20

• (1) This paragraph applies if a return is amended at a time when an enquiry is in progress into the return.

• (2) The amendment does not restrict the scope of the enquiry but may be taken into account (together with any matters arising) in the enquiry (whether or not the amendment takes effect under sub-paragraph (4)).

• (3) Sub-paragraph (4) applies where the amendment is made otherwise than under paragraph 19.

• (4) So far as the amendment affects the amount stated in the return as the amount of tax payable, the amendment does not take effect, in relation to any matter to which it relates or which is affected by it, while the enquiry is in progress, except to the extent that—

• (a) a partial closure notice has been given in relation to a matter to which the amendment relates or which is affected by it, and

• (b) the notice states that the amendment is to take effect.

• (5) The final closure notice—

• (a) must state whether and to what extent an amendment whose effect is deferred under sub-paragraph (4) is to take effect;

• (b) may state that an amendment made under paragraph 19, and whose effect is not terminated or amended by a partial closure notice, is to cease to have effect or is to be amended as specified in the notice.

21

• (1) At any time when an enquiry is in progress into a return any question arising in connection with the subject-matter of the enquiry may be referred to the tribunal for determination.

• (2) Notice of the referral must be given to the tribunal jointly by the filing member and an officer of Revenue and Customs.

• (3) More than one notice of referral may be given in relation to an enquiry.

• (4) An officer of Revenue and Customs or the filing member may withdraw a notice of referral.

• (5) The effect of the notice being withdrawn is that the questions referred are not (unless they have already been finally determined) to be finally determined by the tribunal.

• (6) While proceedings on a referral are in progress in relation to an enquiry—

• (a) no closure notice may be given in relation to the enquiry, and

• (b) no application may be made for a direction to give such a notice.

• (7) Proceedings are in progress where—

• (a) notice of referral has been given,

• (b) the notice has not been withdrawn, and

• (c) the questions referred have not been finally determined.

• (8) In this paragraph, a question referred is finally determined when—

• (a) it has been determined by the tribunal, and

• (b) there is no further possibility of the determination being varied or set aside (disregarding any power to grant permission to appeal out of time).

• (9) The determination of a question referred to the tribunal is binding on the parties to the referral in the same way, and to the same extent, as a decision on a preliminary issue in an appeal under Part 12 of this Schedule.

• (10) The determination must be taken into account by an officer of Revenue and Customs—

• (a) in reaching the officer's conclusions on the enquiry, and

• (b) in formulating any amendments of the return required to give effect to those conclusions.

• (11) The question determined may not be reopened on an appeal under Part 12 of this Schedule, except to the extent that it could be reopened if it had been determined as a preliminary issue in that appeal.

22

• (1) Any matter to which an enquiry into a return relates is completed by an officer of Revenue and Customs giving the filing member a partial closure notice.

• (2) An enquiry into a return is completed by an officer of Revenue and Customs giving the filing member a final closure notice.

• (3) In this Part of this Schedule, “closure notice” means a partial closure notice or a final closure notice.

• (4) A closure notice is a notice stating—

• (a) that the enquiry, or the enquiry in so far as it relates to a particular matter, is complete;

• (b) the conclusion reached in the enquiry.

• (5) The conclusion must be one of the following—

• (a) that no amendment of the return is required, or

• (b) that the amendments of the return specified in the notice are to be made.

• (6) A closure notice takes effect when it is given to the filing member.

• (7) The officer—

• (a) must provide additional information together with the notice as to the basis for the conclusion;

• (b) may provide such other information as the officer thinks fit.

• (8) A final closure notice may not, in relation to a matter to which a partial closure notice relates, state a different conclusion in respect of that matter to that stated in the partial closure notice.

23

• (1) The filing member may apply to the tribunal for a direction that an officer of Revenue and Customs give a closure notice within a specified period.

• (2) The tribunal hearing the application must give a direction unless satisfied that HMRC has reasonable grounds for not giving a closure notice within a specified period.

• (3) An application under this paragraph is to be treated as an appeal under Part 12 of this Schedule.

Part 7 — Determinations where self-assessment return not submitted

24

This Part of this Schedule applies if the filing member of a multinational group has not submitted a self-assessment return under paragraph 13 for an accounting period.

25

• (1) An officer of Revenue and Customs may make a determination if—

• (a) the group is not a registered group and the officer has reasonable grounds to believe the group should be, or

• (b) the officer has reasonable grounds to believe the filing member should have submitted a self-assessment return.

• (2) A “determination” is a determination by the officer to the best of the officer’s knowledge and belief as to the total amount of tax payable by a member of the group for the accounting period.

• (3) The officer must give notice of the determination to the filing member.

• (4) The notice must state the date on which it was issued.

• (5) No determination may be made—

• (a) on or before the last date on which the return was required to be submitted or would have been so required had the group been a registered group;

• (b) more than 3 years after that date.

26

• (1) If, after a determination has been made—

• (a) a self-assessment return is submitted for the accounting period, and

• (b) an information return or overseas return notification has been submitted for that period,

the assessment in the self-assessment return supersedes the assessment in the determination.

• (2) Sub-paragraph (1) does not apply to a self-assessment return delivered after the later of—

• (a) the day 3 years after the day on which the power to make the determination first became exercisable, and

• (b) the day 12 months after the date of the determination.

• (3) Where—

• (a) proceedings have begun for the recovery of any tax assessed in a determination, and

• (b) before the proceedings are concluded the determination is superseded under sub-paragraph (1),

the proceedings may be continued as if they were proceedings for the recovery of so much of the tax assessed in the self-assessment return as is due and payable and has not been paid.

• (4) Where—

• (a) action is being taken under Part 1 of Schedule 8 to the F(No.2)A 2015 (enforcement of deduction from accounts) for the recovery of an amount (“the original amount”) of tax assessed in a determination, and

• (b) before that action is concluded the determination is superseded under sub-paragraph (1),

that action may be continued as if it were an action for the recovery of so much of the tax assessed in the return as is due and payable, has not been paid and does not exceed the original amount.

Part 8 — Discovery assessments

27

• (1) If, in respect of an accounting period, an officer of Revenue and Customs discovers that—

• (a) an amount of multinational top-up tax that ought to have been assessed in respect of a multinational group has not been assessed, or

• (b) an assessment to tax is or has become insufficient,

the officer may make an assessment (a “discovery assessment”) in the amount which ought in the officer's opinion to be charged in order to make good to the Crown the loss of tax.

• (2) This is subject to the restrictions in paragraph 28.

28