Finance (No. 2) Act 2023

• (c) in sub-paragraph (4)—

• (i) in the words before paragraph (a), for “accepts a recommendation” substitute “decides”;

• (ii) in paragraph (a), for “recommendation and of the acceptance of it” substitute “decision”;

• (iii) in paragraph (c), for “recommendation” substitute “decision”.

• (3) In paragraph 24 (suspension of safeguarding remedies)—

• (a) in sub-paragraph (1), in paragraph (b), for “the Secretary of State accepting or rejecting” substitute “the Secretary of State’s powers in relation to”;

• (b) in sub-paragraph (4), at the end insert—

(e) provision corresponding or similar to any provision made by or under this Schedule in relation to a safeguarding investigation, including any of the powers or duties of the TRA or the Secretary of State in respect of those investigations and any recommendations or decisions resulting from them; (f) provision conferring functions (including functions involving the exercise of a discretion) on the Secretary of State or the TRA.

;

• (c) in sub-paragraph (6)—

• (i) in the words before paragraph (a), for “accepts a recommendation” substitute “decides”;

• (ii) in paragraph (a), for “recommendation and of the acceptance of it” substitute “decision”;

• (iii) in paragraph (c), for “recommendation” substitute “decision”.

Revocation in the public interest

13

After paragraph 22 insert—

(22A) (1) The Secretary of State may decide that the application of a definitive safeguarding amount to goods, or a tariff rate quota to which goods are subject, is to be revoked in the absence of a recommendation from the TRA where the Secretary of State considers that revocation is in the public interest. (2) Before making a decision under sub-paragraph (1) the Secretary of State must consult such persons as the Secretary of State considers appropriate. (3) Where the Secretary of State makes a decision under sub-paragraph (1), the Secretary of State— (a) must publish notice of the decision, (b) must notify interested parties (see paragraph 31(3)) accordingly, (c) must lay a statement before the House of Commons setting out the reasons for making the decision, and (d) is required under section 13 to make provision by public notice to give effect to the decision.

Power to request assistance etc

14

After paragraph 22A (as inserted by paragraph 13) insert—

(22B) (1) The Secretary of State may request that the TRA give advice, information or other support to the Secretary of State for the purpose of allowing the Secretary of State to decide whether to make a decision under any of the following— (a) paragraphs 14(2C) and 15(2C) (decisions to adopt a provisional remedy other than in accordance with a recommendation); (b) paragraphs 19(2C) and 20(2C) (decisions to adopt a final remedy other than in accordance with a recommendation); (c) paragraph 22A(1) (decision to revoke a final remedy in the absence of a recommendation). (2) The Secretary of State may include in a request under sub-paragraph (1) a requirement that the TRA investigate and provide a report on any matter specified in the request. (3) Before making a request under sub-paragraph (1), the Secretary of State must consult the TRA. (4) The TRA must comply with a request under sub-paragraph (1).

Part 3 — Consequential and related provision

15

In section 13 of TCTA 2018 (dumping of goods, foreign subsidies and increases in imports)—

• (a) in subsection (2)—

• (i) for “accepts a recommendation by the TRA” substitute “decides”;

• (ii) for “the recommendation” substitute “the decision”.

• (b) in subsection (3)—

• (i) for “accepts a recommendation by the TRA” substitute “decides”;

• (ii) for “the recommendation” substitute “the decision”.

• (c) in subsection (4)—

• (i) for “accepts a recommendation by the TRA” substitute “decides”;

• (ii) for “the recommendation” substitute “the decision”.

16

• (1) The Treasury or the Secretary of State may by regulations made by statutory instrument make such provision as the Treasury or the Secretary of State, as the case may be, considers appropriate in relation to trade remedies measures transitioned under Part 12 of the Trade Remedies (Dumping and Subsidisation) (EU Exit) Regulations 2019 (S.I. 2019/450), including provision—

• (a) in relation to exemptions that has effect from IP completion day (or any later day);

• (b) conferring functions (including functions involving the exercise of a discretion) on the Secretary of State or the Trade Remedies Authority.

• (2) A statutory instrument containing regulations under sub-paragraph (1) is subject to annulment in pursuance of a resolution of the House of Commons.

Part 4 — Commencement

17

• (1) Any power to make regulations under or by virtue of this Schedule comes into force on the day on which this Act is passed.

• (2) The remaining provisions of this Schedule come into force on such day as the Secretary of State may by regulations appoint.

• (3) The Secretary of State may by regulations make transitional or saving provision in connection with the coming into force of any provision of this Schedule.

• (4) The power to make regulations under sub-paragraph (3) includes power to make different provision for different purposes.

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

Schedule 20

Part 1 — Amendments to TCTA 2018

1

• (1) Section 13 of TCTA 2018 is amended as follows.

• (2) In subsection (1)—

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

• (b) at the end insert

, and (c) Schedule 5A (increase in imports as a result of free trade agreement causing serious injury to UK producers).

• (3) In subsection (2), for “Schedule 4 or 5” substitute “Schedule 4, 5 or 5A”.

• (4) In subsection (3), after “Schedule 5” insert “or 5A”

• (5) In subsection (4), in the words before paragraph (a), for “Schedule 4 or 5” substitute “Schedule 4, 5 or 5A”.

2

After Schedule 5 of that Act insert—

Schedule 5A (1) (1) Schedule 5 (increase in imports causing serious injury to UK producers) applies in relation to a relevant increase in imports subject to the following paragraphs of this Schedule. (2) For the purposes of sub-paragraph (1) a “relevant increase in imports” occurs where— (a) goods have been or are being, or may have been or may be being, imported into the United Kingdom in increased quantities, (b) the importation of the goods in increased quantities was or is, or may have been or may be being, caused by the reduction or elimination of import duty as a result of a free trade agreement, and (c) the importation of the goods in increased quantities has caused or is causing, or may have caused or may be causing, serious injury to UK producers of those goods. (3) In sub-paragraph (2)(c) “serious injury” and “UK producers” have the meaning that they have for the purposes of Schedule 5 (see paragraphs 2 and 3 of that Schedule). (2) In applying the provisions of Schedule 5 in accordance with this Schedule the TRA and the Secretary of State must have regard to the relevant free trade agreement. (3) Paragraph 1 of Schedule 5 (meaning of importation in “increased quantities”) is to be read as if, in paragraph (c) of sub-paragraph (2), the words from “including provision” to the end were omitted. (4) Paragraph 6 of Schedule 5 (safeguarding investigation) is to be read as if, in sub-paragraph (1)— (a) the “and” at the end of paragraph (a) were omitted; (b) after that paragraph there were inserted— (aa) whether the importation of the goods in increased quantities was or is being caused by the reduction or elimination of import duty as a result of a free trade agreement, and (5) (1) Paragraph 7 of Schedule 5 (initiation of a safeguarding investigation) is to be read subject to the following modifications. (2) Sub-paragraph (1) is to be read as if— (a) in the words before paragraph (a), for “The TRA may initiate” there were substituted “The Secretary of State may request that the TRA initiates”; (b) paragraph (a) were omitted; (c) in paragraph (b)— (i) in the words before sub-paragraph (i), for “it is satisfied that the application contains” there were substituted “the Secretary of State is satisfied that there is”; (ii) the “and” at the end of sub-paragraph (i) were omitted; (iii) after that sub-paragraph there were inserted— (ia) the importation of the goods in increased quantities was or is being caused by the reduction or elimination of import duty as a result of the relevant free trade agreement, and (d) in paragraph (c)— (i) for “the TRA” there were substituted “the Secretary of State”; (ii) for “application” there were substituted “request”; (e) in paragraph (d)— (i) for “application”, in both places it appears, there were substituted “request”; (ii) for “the TRA” there were substituted “the Secretary of State”. (3) Sub-paragraph (2) is to be read as if— (a) paragraph (a) were omitted; (b) in paragraph (b), for the words from “in the case” to “the TRA” there were substituted “the Secretary of State”. (4) Sub-paragraph (3) is to be read as if— (a) paragraph (a) were omitted; (b) in paragraph (b), the words “in the case” to “sub-paragraph (1)(a)(ii)” were omitted. (5) The remaining provisions of paragraph 7 are to be read as if— (a) in sub-paragraph (4), paragraphs (a) to (d) were omitted; (b) sub-paragraphs (4A) and (5) were omitted; (c) in sub-paragraph (6)— (i) for the words before paragraph (a) there were substituted “Where the Secretary of State makes a request under sub-paragraph (1) the TRA must—”; (ii) in paragraph (a) the words “accept the application and” were omitted; (iii) in paragraph (b), for “of its decision to initiate” substitute “that it has initiated”; (d) sub-paragraph (6A) were omitted; (e) sub-paragraph (8) were omitted. (6) Paragraph 9 of Schedule 5 (provisional affirmative determinations and final affirmative or negative determinations) is to be read as if— (a) in sub-paragraph (1)— (i) the “and” at the end of paragraph (a) were omitted; (ii) after that paragraph there were inserted— (aa) the importation of the goods in increased quantities was or is being caused by the reduction or elimination of import duty as a result of the relevant free trade agreement, and (b) sub-paragraph (3) were omitted; (c) for sub-paragraph (7) there were substituted— (7) Where the TRA makes a final negative determination or final negative determinations under sub-paragraph (4)— (a) the TRA must notify the Secretary of State of the determination or determinations; (b) the Secretary of State must notify interested parties (see paragraph 31(3)) that the Secretary of State will not apply a bilateral safeguarding remedy to the goods; (c) the Secretary of State may produce and publish a report or update in relation to the investigation; (d) the Secretary of State may request that the TRA produces a report or update in relation to the investigation. (8) Where the Secretary of State makes a request under sub-paragraph (7)(d)— (a) the TRA must produce a report or update (as the case may be) in accordance with the request, and (b) the Secretary of State may publish the report or update (as the case may be). (7) Paragraph 10 of Schedule 5 (termination of a safeguarding investigation) is to be read as if— (a) in paragraph (a), for “notice of that determination is published” there were substituted “the TRA notifies the Secretary of State of that determination”; (b) in paragraph (b), for the words from “notice of that determination” to the end there were substituted “the TRA notifies the Secretary of State of its final affirmative determination in relation to the goods under paragraph 16(11)(a)”; (c) in paragraph (c), for the words “the notice of rejection” there were substituted “notice of a decision of the Secretary of State not to apply a bilateral safeguarding remedy”. (8) (1) Paragraph 11 of Schedule 5 (TRA’s duty to recommend a provisional safeguarding amount or provisional tariff rate quota) is to be read as if— (a) in sub-paragraph (3), after paragraph (a) there were inserted— (aa) that any reduction in the rate of import duty applicable to all the relevant goods or to specified relevant goods as a result of the relevant free trade agreement should be suspended for a specified period (referred to in this Schedule as a “provisional suspension of tariff rate reduction”); (b) for sub-paragraph (9) there were substituted— (9) If the TRA determines that there is no recommendation which it could make under sub-paragraph (3)— (a) the TRA must notify the Secretary of State of its provisional affirmative determination in relation to the goods, and (b) the Secretary of State must notify interested parties (see paragraph 31(3)) that the Secretary of State will not apply a provisional bilateral safeguarding amount, a provisional suspension of tariff rate reduction or a provisional tariff rate quota to the goods. (2) In consequence of the modification made by sub-paragraph (1)(a)— (a) references in Schedule 5 to paragraphs (a) and (b) of sub-paragraph (3) of paragraph 11 of that Schedule are to be read as references to paragraphs (a), (aa) and (b) of that sub-paragraph; (b) references in Schedule 5 to paragraph (a) of that sub-paragraph are to be read as references to paragraph (a) or (aa) of that sub-paragraph (and accordingly references to paragraph (a) or (b) of that sub-paragraph are to be read as references to paragraph (a), (aa) or (b) of that sub-paragraph). (9) Paragraph 12 of Schedule 5 (TRA’s recommendations about a provisional safeguarding amount) is to be read as if, in sub-paragraph (2), for paragraph (a) there were substituted— (a) is to be such period as the TRA may determine, having regard to the relevant free trade agreement, and (10) Paragraph 13 of Schedule 5 (TRA’s recommendations regarding provisional tariff rate quotas) is to be read as if, in sub-paragraph (2), for paragraph (a) there were substituted— (a) is to be such period as the TRA may determine, having regard to the relevant free trade agreement, and (11) (1) Paragraph 16 of Schedule 5 (TRA’s duty to recommend a definitive safeguarding amount or tariff rate quota) is to be read as if— (a) in sub-paragraph (3), after paragraph (a) there were inserted— (aa) that any reduction in the rate of import duty applicable to all the relevant goods or to specified relevant goods as a result of the relevant free trade agreement should be suspended for a specified period (referred to in this Schedule as a “definitive suspension of tariff rate reduction”); (b) sub-paragraphs (5), (6) and (7) were omitted; (c) for sub-paragraph (11) there were substituted— (11) If the TRA determines that there is no recommendation which it could make under sub-paragraph (3)— (a) the TRA must notify the Secretary of State of its final affirmative determination in relation to the goods, (b) the Secretary of State must notify interested parties (see paragraph 31(3)) that the Secretary of State will not apply a definitive safeguarding amount, a definitive suspension of tariff rate reduction or a tariff rate quota to the goods. (2) In consequence of the modification made by sub-paragraph (1)(a)— (a) references in Schedule 5 to paragraphs (a) and (b) of sub-paragraph (3) of paragraph 16 of that Schedule are to be read as references to paragraphs (a), (aa) and (b) of that sub-paragraph; (b) references in Schedule 5 to paragraph (a) of that sub-paragraph are to be read as references to paragraph (a) or (aa) of that sub-paragraph (and accordingly references to paragraph (a) or (b) of that sub-paragraph are to be read as references to paragraph (a), (aa) or (b) of that sub-paragraph). (3) In consequence of the modification made by sub-paragraph (1)(b), paragraph 21 of Schedule 5 (reviews) is to be read as if, in sub-paragraph (3), paragraph (d) were omitted. (12) Paragraph 17 of Schedule 5 (TRA’s recommendations about a definitive safeguarding amount) is to be read as if— (a) in sub-paragraph (2), in paragraph (b), for “must not exceed 4 years” there were substituted “is to be such period as the TRA may determine, having regard to the relevant free trade agreement”. (b) in sub-paragraph (4), paragraph (b) (and the “, and” at the end of paragraph (a)) were omitted; (c) after sub-paragraph (5) there were inserted— (5A) In making a recommendation under paragraph 16(3)(a) or (aa), the TRA must have regard to any provision of the relevant free trade agreement under or by virtue of which the definitive bilateral safeguarding amount or the definitive suspension of tariff rate reduction (as the case may be) applicable to goods is to become progressively smaller as the specified period referred to in paragraph 16(3)(a) or (aa) (as the case may be) progresses. (d) sub-paragraphs (7) to (10) were omitted. (13) Paragraph 18 of Schedule 5 (TRA’s recommendations regarding tariff rate quotas) is to be read as if— (a) in sub-paragraph (2), in paragraph (b), for “must not exceed 4 years” there were substituted “is to be such period as the TRA may determine, having regard to the relevant free trade agreement”. (b) in sub-paragraph (5), paragraph (b) (and the “, and” at the end of paragraph (a)) were omitted; (c) after sub-paragraph (6) there were inserted— (6A) In making a recommendation under paragraph 16(3)(b), the TRA must have regard to any provision of the relevant free trade agreement under or by virtue of which the amount of import duty applicable to goods subject to the quota is to become progressively smaller as the specified period referred to in that paragraph progresses. (d) sub-paragraphs (7) to (10) were omitted. (14) Paragraph 22 of Schedule 5 (variation or revocation following an international dispute decision) is to be read as if, in sub-paragraph (6), for paragraph (a) there were substituted— (a) a decision under the dispute settlement procedures of the relevant free trade agreement, or (15) Paragraph 24 of Schedule 5 (suspension of safeguarding remedies) does not apply. (16) Sub-paragraph (2) of paragraph 25 of Schedule 5 (exceptions) does not apply. (17) (1) Paragraph 26 of Schedule 5 (restrictions on successive safeguarding remedies) is to be read as if— (a) in sub-paragraph (2), in the words before paragraph (a), for ““previous safeguarding remedy”” there were substituted ““previous bilateral safeguarding remedy””; (b) for sub-paragraphs (3) to (5) there were substituted— (3) The Secretary of State may reject the recommendation if— (a) the relevant free trade agreement contains provision restricting the circumstances in which a bilateral safeguarding remedy can be applied to goods to which a previous bilateral safeguarding remedy has been applied, and (b) the Secretary of State considers that the acceptance of the recommendation would or might result in a breach of that provision. (18) Paragraph 27 (interaction with anti-dumping remedies and anti-subsidy remedies) does not apply. (19) Schedule 5 applies as if after paragraph 28 (investigations regarding repayments) there were inserted— (28A) (1) The Secretary of State may publish a notice of goods— (a) which are the subject of an investigation or other proceedings under provision made by or under this Schedule, and (b) to which a provisional or definitive bilateral safeguarding amount or a provisional or definitive suspension of tariff rate reduction may be applied or the existing application of such an amount or reduction to which may be varied. (2) HMRC must register goods in respect of which such a notice is published. (3) Regulations may make provision for, or in connection with, the registration by HMRC of the goods— (a) to which a provisional or definitive bilateral safeguarding amount or a provisional or definitive suspension of tariff rate reduction may be applied, or (b) the existing application of a provisional or definitive bilateral safeguarding amount or a provisional or definitive suspension of tariff rate reduction to which may be varied. (20) (1) This paragraph applies where, in accordance with Schedule 5 as applied by this Schedule— (a) the Secretary of State accepts or rejects a recommendation made by the TRA under any provision of that Schedule; (b) the TRA determines that there is no recommendation which it could make. (2) The Secretary of State may— (a) produce and publish a report or update in relation to the bilateral safeguarding investigation concerned; (b) request that the TRA produces such a report or update. (3) Where the Secretary of State makes a request under sub-paragraph (2)(b)— (a) the TRA must produce a report or update (as the case may be) in accordance with the request, and (b) the Secretary of State may publish the report or update. (21) (1) Any provision of Schedule 5 requiring the Secretary of State to publish notice of a determination of the TRA, of a recommendation under paragraph 11(3)(a), (aa) or (b) of that Schedule and of the acceptance or rejection of it is to be read instead as requiring the Secretary of State to publish notice of the Secretary of State’s decision to apply, or not to apply, a provisional bilateral safeguarding amount, a provisional suspension of tariff rate reduction, or a provisional tariff rate quota. (2) Any provision of Schedule 5 requiring the Secretary of State to publish notice of a determination of the TRA, of a recommendation under paragraph 16(3)(a), (aa) or (b) of that Schedule and of the acceptance or rejection of it is to be read instead as requiring the Secretary of State to publish notice of the Secretary of State’s decision to apply, or not to apply, a definitive bilateral safeguarding amount, a definitive suspension of tariff rate reduction, or a tariff rate quota. (22) The provisions of Schedule 5 imposing a requirement on the Secretary of State to lay a statement before the House of Commons do not apply in relation to any matter concerning a bilateral safeguarding investigation (and accordingly the Secretary of State is not required to lay such a statement). (23) (1) Paragraph 31 of Schedule 5 (interpretation) applies subject to sub-paragraph (2). (2) In Schedule 5 as applied by this Schedule— (a) references to a definitive safeguarding amount are to be read as references to a definitive bilateral safeguarding amount or a definitive suspension of tariff rate reduction (as the case may be); (b) references to a provisional safeguarding amount are to be read as references to a provisional bilateral safeguarding amount or a provisional suspension of tariff rate reduction (as the case may be); (c) references to a safeguarding investigation are to be read as references to a bilateral safeguarding investigation; (d) references to a safeguarding remedy are to be read as references to a bilateral safeguarding remedy. (24) For the purposes of this Schedule and of Schedule 5 as applied by this Schedule— - “bilateral safeguarding investigation” means an investigation under paragraph 6 of Schedule 5 as that provision applies by virtue of this Schedule; - “bilateral safeguarding remedy” has the meaning given in paragraph 23(4)(a) of Schedule 5 as that provision applies by virtue of this Schedule; - “definitive bilateral safeguarding amount” means the additional amount of import duty mentioned in paragraph 16(3)(a) of Schedule 5 as that provision applies by virtue of this Schedule. - “definitive suspension of tariff rate reduction” has the meaning given in paragraph (aa) of paragraph 16(3) of Schedule 5 (see paragraph 11(1)(a)); - “free trade agreement” has the meaning given in section 5(1) of the Trade Act 2021; - “provisional bilateral safeguarding amount” means the additional amount of import duty mentioned in paragraph (11)(3)(a) of Schedule 5 as that provision applies by virtue of this Schedule; - “provisional suspension of tariff rate reduction” has the meaning given in paragraph (aa) of paragraph 11(3) of Schedule 5 (see paragraph 8(1)(a)); - “relevant free trade agreement”, in relation to a bilateral safeguarding investigation, means the free trade agreement mentioned in paragraph 6(aa) of Schedule 5 (see paragraph 4(b)).

Part 2 — Commencement

3

• (1) Any power to make regulations under or by virtue of this Schedule comes into force on the day on which this Act is passed.

• (2) The remaining provisions of this Schedule come into force on such day as the Secretary of State may by regulations appoint.

• (3) The Secretary of State may by regulations make transitional or saving provision in connection with the coming into force of any provision of this Schedule.

• (4) The power to make regulations under sub-paragraph (3) includes power to make different provision for different purposes.

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

Schedule 21

Introduction

1

Part 2 of FA 2017 (soft drinks industry levy) is amended as follows.

Meaning of “soft drink” and “package”

2

• (1) Section 26 (“soft drink” and “package”) is amended as follows.

• (2) At the end of subsection (1) insert “;

(c) a liquid flavouring (a “flavour concentrate”) which, when processed in a specified manner in a dispensing machine, constitutes a beverage within that paragraph.

• (3) After subsection (2) insert—

(2A) A flavour concentrate is processed in a specified manner if— (a) it is combined with added sugar ingredients, with or without— (i) artificial sweeteners, or (ii) one or more other flavour concentrates; and (b) the flavour concentrate (or combination) is prepared in a specified manner. (2B) A “dispensing machine” is a machine designed to— (a) combine, process or prepare ingredients so as to produce a beverage, and (b) supply the beverage directly to a consumer. (2C) In subsection (2A)(a), “added sugar ingredients” means anything within paragraph (a) or (b) of section 29(2).

• (4) In subsection (3)—

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

• (b) after paragraph (b) insert

and (c) in the case of a soft drink within subsection (1)(c)— (i) it is suitable to be consumed when processed in a specified manner in a dispensing machine (and without any other processing or preparation), and (ii) it is ready for use in a dispensing machine;

.

Meaning of “prepared drinks”

3

• (1) Section 27 (meaning of “prepared drink”) is amended as follows.

• (2) At the end of subsection (1) insert “;

(c) a beverage that would result from— (i) processing a flavour concentrate within subsection (1)(c) of that section in a specified manner in a dispensing machine, and (ii) in accordance with the relevant dispensing instructions.

• (3) In subsection (2)(b), for “subsection (3)” substitute “subsection (3)(a)”.

• (4) After subsection (2) insert—

(2A) The “relevant dispensing instructions” means— (a) the instructions for use of the flavour concentrate provided with, or for the purposes of use with, the concentrate or a dispensing machine with which it is designed to be used; (b) where subsection (3)(b) or (4A) applies, the dispensing instructions determined by the Commissioners.

• (5) For subsection (3) substitute—

(3) This subsection applies where— (a) in a case within subsection (1)(b), the packaging of the soft drink states neither the dilution ratio nor information by reference to which the dilution ratio can be calculated; (b) in a case within subsection (1)(c), no dispensing instructions are provided with, or for the purposes of use with, the flavour concentrate or with any dispensing machine with which it is designed to be used.

• (6) After subsection (4) insert—

(4A) This subsection applies where— (a) dispensing instructions are provided, and (b) it is reasonable to assume that the main purpose, or one of the main purposes, of providing those particular dispensing instructions is avoiding or reducing liability for soft drinks industry levy.

• (7) In subsection (5)—

• (a) after paragraph (a) insert—

(aa) determining dispensing instructions for the purposes of subsection (2A)(b);

;

• (b) for paragraph (b) substitute—

(b) determining whether the main purpose, or one of the main purposes, of— (i) stating a particular dilution ratio or information, or (ii) providing particular dispensing instructions; is avoiding or reducing liability for soft drinks industry levy.

Sugar content condition

4

In section 29 (sugar content condition), in subsection (1)—

• (a) in the words before paragraph (a), omit “it contains”;

• (b) for paragraph (a) (but not the “and” at the end) substitute—

(a) either— (i) it is a soft drink within section 26(1)(c), or (ii) it contains added sugar ingredients;

;

• (c) at the beginning of paragraph (b) insert “it contains”.

Exempt soft drinks

5

In section 30 (exempt soft drinks), in subsection (1)—

• (a) omit the “and” at the end of paragraph (c);

• (b) after paragraph (d) insert “, and

(e) soft drinks within section 26(1)(c) (flavour concentrates) that meet such conditions as may be specified.

Levy rates

6

After section 36 (levy rates) insert—

(36A) (1) This section applies where— (a) two or more flavour concentrates are formulated so as to be combined with one another in a dispensing machine (see section 26(2A)(a)(ii)), and (b) each of those flavour concentrates is a chargeable soft drink. (2) The references in section 36(1) to a litre of prepared drink are treated, in relation to each of the flavour concentrates, as references to the relevant proportion of a litre of prepared drink. (3) Subject to subsection (4), the “relevant proportion” is— $$1N$ where N is the number of flavour concentrates that are designed to be combined.$ (4) The Commissioners may by regulations make provision for determining the relevant proportion (otherwise than in accordance with subsection (3)) in cases where the flavour concentrates mentioned in subsection (1)(a) are formulated so as to be combined in a dispensing machine— (a) in unequal proportions, or (b) in different combinations for different beverages.

Tax credits

7

• (1) Section 39 (tax credits) is amended as follows.

• (2) In subsection (1), after paragraph (b) insert

; (c) in the case of soft drinks within section 26(1)(c), the flavour concentrate— (i) has not been combined with added sugar ingredients (but has been prepared in a specified manner), or (ii) has been processed in a specified manner so as to result in a beverage that contains less than 5 grams of sugars per 100 millilitres of prepared drink.

• (3) In subsection (2)(a) for “exported or (as the case may be) lost or destroyed” substitute “that fall within subsection (1)(a), (b) or (c) (as the case may be)”.

Commencement

8

The amendments made by this Schedule come into force on 1 April 2023 in relation to soft drinks that are packaged in, or imported into, the United Kingdom on or after that date.

Schedule 22

1

The HGV Road User Levy Act 2013 is amended as follows.

2

In section 1(1) (charge to HGV road user levy), for the words “any heavy goods vehicle” to the end substitute “—

(a) any UK heavy goods vehicle that is used or kept on a road to which this Act applies by virtue of section 3(1A)(a), and (b) any non-UK heavy goods vehicle that is used on a road to which this Act applies by virtue of section 3(1A)(b).

3

• (1) Section 3 (roads to which this Act applies) is amended as follows.

• (2) For subsection (1) substitute—

(1A) Subject to subsection (2), this Act applies— (a) in relation to UK heavy goods vehicles, to all public roads in the United Kingdom, and (b) in relation to non-UK heavy goods vehicles, to any road which, under the system for assigning identification numbers to roads administered by the Secretary of State, Northern Ireland Ministers, Scottish Ministers or Welsh Ministers, has been assigned a number prefixed by A or M.

• (3) In subsection (2), in the words before paragraph (a), after “may by order provide” insert “in respect of UK heavy goods vehicles or non-UK heavy goods vehicles (or both)”.

• (4) In subsection (4), for “this section” substitute “subsection (1A)(a)”.

4

In section 5(7) (payment of levy for UK heavy goods vehicles) for “paragraphs 2 to 4 of that Schedule and Tables 2 to 5” substitute “paragraph 1(3) of that Schedule and Table 1B”.

5

• (1) Section 6 (payment of levy for non-UK heavy goods vehicles) is amended as follows.

• (2) In subsection (2)—

• (a) omit “or kept”;

• (b) after “this Act applies” insert “by virtue of section 3(1A)(b)”.

• (3) In subsection (9) for “paragraphs 2 to 4 of that Schedule and Tables 2 to 5” substitute “paragraph 1(3) of that Schedule and Table 1B”.

6

In section 7(2) (rebate of levy), for paragraph (c) substitute—

(c) the person who paid the levy notifies the Secretary of State that— (i) in the case of a UK heavy goods vehicle, the vehicle is not intended to be used or kept on a road to which this Act applies by virtue of section 3(1A)(a) at any time during the rest of the levy period, or (ii) in the case of a non-UK heavy goods vehicle, the vehicle is not intended to be used on a road to which this Act applies by virtue of section 3(1A)(b) at any time during the rest of the levy period.

7

In section 11 (offence of using or keeping heavy goods vehicle if levy not paid), in subsection (1), for the words before paragraph (a) substitute—

If a person uses or keeps a UK heavy goods vehicle on a road to which this Act applies by virtue of section 3(1A)(a), or uses a non-UK heavy goods vehicle on a road to which this Act applies by virtue of section 3(1A)(b), on a day in respect of which the HGV road user levy charged in respect of the vehicle has not been paid—

.

8

• (1) Section 14 (register of levy paid or due to be paid) is amended as follows.

• (2) In subsection (1), for “must” substitute “may”.

• (3) After subsection (1) insert—

(1A) Subsections (2) to (5) apply in relation to any register set up and kept under subsection (1).

• (4) In subsection (4), at the end insert “but need not be accessible to all members of the public”.

9

In section 19 (interpretation), in subsection (1), in the definition of “revenue weight”, at the end insert “, subject to paragraph 5(2) of Schedule 1”.

10

• (1) Schedule 1 (rates of HGV road user levy) is amended as follows.

• (2) In paragraph 1, for sub-paragraph (3) substitute—

(3) Table 1B sets out the Bands for the purposes of Tables 1 and 1A (and those Bands depend on the revenue weight of the vehicle).

• (3) Omit paragraphs 2 to 4.

• (4) In paragraph 5—

• (a) the existing text becomes sub-paragraph (1);

• (b) in that sub-paragraph, in paragraph (a)—

• (i) omit ““axle”, ”;

• (ii) omit “and “tractive unit” each”;

• (c) after that sub-paragraph insert—

(2) For the purposes of this Schedule— (a) in calculating the revenue weight of a rigid goods vehicle drawing a trailer weighing less than 4,000 kilograms, the weight of the trailer is to be ignored; (b) in calculating the revenue weight of a rigid goods vehicle drawing a trailer weighing 4,000 kilograms or more, the weight of the trailer is to be added to the revenue weight of the vehicle.

• (5) For Table 1 substitute—

Band	Daily rate	Weekly rate	Monthly rate	Half-yearly rate	Yearly rate
A	£3.00	£7.50	£15.00	£90.00	£150.00
B	£7.20	£18.00	£36.00	£216.00	£360.00
C	£9.00	£28.80	£57.60	£345.60	£576.00

.

• (6) For Table 1A substitute—

Band	Daily rate	Weekly rate	Monthly rate	Half-yearly rate	Yearly rate
A	£3.90	£9.75	£19.50	£117.00	£195.00
B	£9.36	£23.40	£46.80	£280.80	£468.00
C	£10.00	£37.45	£74.90	£449.40	£749.00

.

• (7) After Table 1A insert—

Revenue weight of vehicle	Band
More than 11,999kgs but not more than 31,000kgs	A
More than 31,000kgs but not more than 38,000kgs	B
More than 38,000kgs	C

.

• (8) Omit Tables 2 to 5.

11

• (1) In consequence of the amendments made by paragraph 10, in Part 8 of Schedule 1 to VERA 1994 (annual rates of duty: goods vehicles), paragraph 10 (relevant rigid goods vehicles) is amended as follows.

• (2) After sub-paragraph (2) insert—

(2A) In this paragraph, references to “the tables” are to the tables mentioned in sub-paragraph (6).

• (3) In sub-paragraph (3)—

• (a) in the opening words omit “following”;

• (b) in paragraph (c), for “appropriate HGV road user levy band” substitute “vehicle excise duty band”.

• (4) For sub-paragraph (5) substitute—

(5A) The “vehicle excise duty band” in relation to a vehicle is determined in accordance with the following table—

Revenue weight of vehicle	Revenue weight of vehicle	2 axle vehicle	3 axle vehicle	4 or more axle vehicle
Exceeding	Not exceeding	2 axle vehicle	3 axle vehicle	4 or more axle vehicle
kgs	kgs	Band	Band	Band
11,999	15,000	B(T)	B(T)	B(T)
15,000	21,000	D(T)	B(T)	B(T)
21,000	23,000	E(T)	C(T)	B(T)
23,000	25,000	E(T)	D(T)	C(T)
25,000	27,000	E(T)	D(T)	D(T)
27,000	44,000	E(T)	E(T)	E(T)

.

• (5) In each of the tables after sub-paragraph (6), in the headings to column 1, for “Appropriate HGV road user levy band” substitute “Vehicle excise duty band”.

12

The amendments made by this Schedule come into force on 1 August 2023.

Schedule 23

FA 2003

1

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

2

In section 61A—

• (a) in subsection (1), for “freeport tax site” substitute “special tax site”,

• (b) in subsection (5)(a), for “14 October 2027” substitute “the period of one year and 14 days beginning with the end of the applicable sunset date in relation to the special tax site in which the transaction land is situated”,

• (c) in subsection (6), for the words from ““freeport tax site”” to the end substitute ““special tax site” means an area for the time being designated under section 113 of the Finance Act 2021”, and

• (d) in the heading, for “freeport tax sites” substitute “special tax sites”.

3

In section 81—

• (a) in subsection (1A)(aa), for “freeport tax sites” substitute “special tax sites”, and

• (b) in subsection (1B)(eb)—

• (i) for “freeport tax sites” substitute “special tax sites”, and

• (ii) for “qualifying freeport land” substitute “qualifying land”.

4

In section 81ZA—

• (a) in subsection (1), for “freeport tax sites” substitute “special tax sites”, and

• (b) in subsection (3)(c), for “qualifying freeport land” substitute “qualifying land”.

5

In section 85(3), for “freeport tax sites” substitute “special tax sites”.

6

In section 86(2)(zb) and (2A), for “freeport tax sites” substitute “special tax sites”.

7

In section 87(3)(azaa) and (azab), for “freeport tax sites” substitute “special tax sites”.

8

In Schedule 6C—

• (a) for paragraph 2 and the italic heading before it substitute—

(2) For the purposes of this Schedule, transaction land is “qualifying land” if, on the effective date of the transaction— (a) it is situated in a special tax site, and (b) the purchaser intends it to be used exclusively in a qualifying manner.

,

• (b) for “qualifying freeport land”, in each place (other than paragraph 2), substitute “qualifying land”,

• (c) for “freeport tax site”, in each place, substitute “special tax site”,

• (d) in paragraph 7—

• (i) in sub-paragraph (2), for “(“the freeport consideration”)” substitute “(“the relevant consideration”)”, and

• (ii) in sub-paragraphs (3) and (4), for “the freeport consideration” substitute “the relevant consideration”, and

• (e) in the heading, for “freeport tax sites” substitute “special tax sites”.

CAA 2001

9

CAA 2001 is amended as follows.

10

In section 3—

• (a) in subsection (2ZZA), for “freeport tax sites” substitute “special tax sites”, and

• (b) in subsection (2ZA)(b), for “freeport qualifying expenditure” substitute “special tax site qualifying expenditure”.

11

In the following provisions of Part 2 (plant and machinery allowances)—

• (a) section 39,

• (b) sections 45O to 45R,

• (c) section 46(1), and

• (d) section 52(3),

for “freeport tax site” and for “freeport tax sites” (in each place) substitute “special tax site” and “special tax sites” respectively.

12

In section 45Q—

• (a) in subsection (1)(b), for “the “non-freeport part” of” substitute “the “non-qualifying part” of”, and

• (b) in subsections (2) and (3), for “non-freeport part” substitute “non-qualifying part”.

13

In the following provisions of Part 2A (structures and building allowances)—

• (a) section 270AA,

• (b) Chapter 2A,

• (c) section 270IA(5),

for “freeport qualifying expenditure”, in each place, substitute “special tax site qualifying expenditure”.

14

In the following provisions of that Part—

• (a) section 270BJ(2A), and

• (b) Chapter 2A,

for “freeport tax site”, in each place, substitute “special tax site”.

15

For section 573A substitute—

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

16

In Part 2 of Schedule 1—

• (a) omit the definition of “freeport tax site”, and

• (b) at the appropriate place insert—

special tax site	section 573A

FA 2021

17

Part 4 of FA 2021 is amended as follows.

18

In the italic heading before section 113 at the end insert “and investment zones”.

19

In the heading for section 113 (designation of freeport tax sites), for “freeport tax sites” substitute “special tax sites”.

National Insurance Contributions Act 2022

20

The National Insurance Contributions Act 2022 is amended as follows.

21

In the italic heading before section 1, for “Freeports” substitute “Special tax sites”.

22

In section 1—

• (a) in subsections (1)(b) and (6), for “freeport conditions” substitute “applicable conditions”, and

• (b) in the heading, for “freeport tax sites” substitute “special tax sites”.

23

In section 2—

• (a) in subsection (1)—

• (i) for “The freeport conditions” substitute “The applicable conditions”,

• (ii) in paragraph (a)(ii), for “5 April 2026” substitute “the applicable sunset date”, and

• (iii) in paragraph (d), for “freeport tax site” substitute “special tax site”,

• (b) after subsection (2) insert—

(2A) For the purposes of this section “the applicable sunset date”, in relation to a special tax site, means — (a) 5 April 2026, or (b) such later date as may be specified under section 332(4)(b)of the Finance (No.2) Act 2023 as the applicable sunset date in relation to the site concerned for the purposes of the provisions mentioned in subsection (4) of that section.

,

• (c) in subsection (4)(b), for “freeport tax site” substitute “special tax site”,

• (d) for subsection (6) substitute—

(6) The relevant end date is the last day of the period of three years beginning with the day after the applicable sunset date.

, and

• (e) in the heading, for “Freeport conditions” substitute “Applicable conditions”.

24

In section 3—

• (a) omit subsection (1),

• (b) in subsection (2), for “a freeport” substitute “an applicable”,

• (c) in subsection (3), for “freeport” substitute “applicable”, and

• (d) in the heading, for “Freeport conditions” substitute “Applicable conditions”.

25

In section 5, in the heading, for “freeport tax sites” substitute “special tax sites”.

26

In section 12(2), omit paragraph (a).

27

In section 13(2)—

• (a) omit the definition of “freeport tax site”, and

• (b) at the end insert—

• “special tax site” has the meaning given by section 113 of the Finance Act 2021 (designation of special tax sites).

Schedule 24

Income tax and corporation tax

1

• (1) No liability to income tax or corporation tax arises in respect of a payment which is made by a local authority to a person (“S”) by reason of S—

• (a) being an approved sponsor under the Homes for Ukraine Sponsorship Scheme, and

• (b) providing accommodation to a person granted entry clearance or permission to stay under that scheme.

• (2) This paragraph has effect in relation to payments made on or after 14 March 2022.

Annual tax on enveloped dwellings

2

• (1) Part 3 of FA 2013 (annual tax on enveloped dwellings) is modified as follows.

• (2) That Part has effect as if after section 133 there were inserted—

(133A) (1) A day in a chargeable period (“day X”) is to be treated as relievable in relation to a single-dwelling interest by virtue of section 133(1) (property rental business) if (ignoring this section) day X is not relievable by virtue of any of the provisions listed in section 132(3) and— (a) in a case where the day immediately before day X was relievable in relation to a single-dwelling interest by virtue of section 133(1) (including by virtue of this section), Condition A or B is met in relation the dwelling on day X, or (b) in a case where the day immediately before day X was not relievable in relation to a single-dwelling interest by virtue of section 133(1), Condition A is met in relation to the dwelling on day X. (2) For the purposes of subsection (1)— (a) Condition A is that the dwelling is exclusively occupied by an individual (or individuals) granted entry clearance, or permission to stay, under the Homes for Ukraine Sponsorship Scheme; (b) Condition B is that reasonable steps are being taken to secure that the dwelling will, without undue delay, be so occupied. (3) A day is not relievable by virtue of this section in the case of a single-dwelling interest if on that day a non-qualifying individual is permitted to occupy the dwelling. (4) In subsection (2)(b), “without undue delay” means without delay except so far as delay is justified by commercial considerations or cannot be avoided.

• (3) Section 138 (property developers) has effect as if for subsection (2) there were substituted—

(2) If the property developer holds an interest for the purpose mentioned in subsection (1)(b), any additional purpose the property developer may have of— (a) exploiting the interest as a source of rents or other receipts in the course of a qualifying property rental business (after developing the land and before reselling it), or (b) permitting an individual granted entry clearance, or permission to stay, under the Homes for Ukraine Sponsorship Scheme to occupy the dwelling, is treated as not being a separate purpose in applying the test in subsection (1)(b).

• (4) Section 141 (property traders) has effect as if, after subsection (2), there were inserted—

(2A) If the person holds an interest for the purpose mentioned in subsection (1)(b), any additional purpose the person may have of permitting an individual, other than a non-qualifying individual, who is granted entry clearance, or permission to stay, under the Homes for Ukraine Sponsorship Scheme to occupy the dwelling is treated as not being a separate purpose in applying the test in subsection (1)(b).

• (5) Section 174 (general interpretation) has effect as if, in subsection (1), at the appropriate place, there were inserted—

• “the Homes for Ukraine Sponsorship Scheme” means the scheme contained in paragraphs UKR 11.1 to UKR 20.2 of Appendix Ukraine Scheme to the immigration rules (within the meaning of the Immigration Act 1971);

.

• (6) The modifications made by this paragraph have effect in relation to days falling in the period—

• (a) beginning with 1 April 2022, and

• (b) ending with such date as may be specified in regulations made by the Treasury by statutory instrument.

Stamp duty land tax

3

• (1) Schedule 4A to FA 2003 (stamp duty land tax: higher rate for certain transactions) is modified as follows.

• (2) Paragraph 5 (businesses of letting, trading in or redeveloping properties) has effect as if after sub-paragraph (2) there were inserted—

(2A) In determining whether a chargeable interest has been acquired exclusively for one or more of those purposes, any intention to permit an individual, other than a non-qualifying individual, who is granted entry clearance, or permission to stay, under the Homes for Ukraine Sponsorship Scheme to occupy any dwelling on the land is to be ignored.

• (3) In paragraph 5G (withdrawal of relief allowed under paragraph 5), sub- paragraph (4) has effect as if—

• (a) the words from “because of a change of circumstances” to the end become paragraph (a);

• (b) after that paragraph there were inserted—

(b) any dwelling on the land is occupied by an individual granted entry clearance, or permission to stay, under the Homes for Ukraine Sponsorship Scheme, or (c) the purchaser is taking reasonable steps to ensure that any dwelling on the land will be so occupied without delay (except so far as delay may be justified by commercial considerations or cannot be avoided)

;

• (4) Paragraph 9 (interpretation) has effect as if, at the appropriate place, there were inserted—

• “the Homes for Ukraine Sponsorship Scheme” means the scheme contained in paragraphs UKR 11.1 to UKR 20.2 of Appendix Ukraine Scheme to the immigration rules (within the meaning of the Immigration Act 1971);

.

• (5) The modification made by sub-paragraph (2) has effect in relation to any land transaction the effective date of which is in the period—

• (a) beginning with 31 March 2022, and

• (b) ending with such date as may be specified in regulations made by the Treasury by statutory instrument.

• (6) The modifications made by sub-paragraph (3)and (4) have effect in relation to any time in the period mentioned in sub-paragraph (5).

Regulations

4

A statutory instrument containing regulations under the following provisions of this Schedule may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons—

• (a) paragraph 2(6)(b);

• (b) paragraph 3(5)(b).

Income tax charge for tax year 2023-24

Main rates of income tax for tax year 2023-24

Default and savings rates of income tax for tax year 2023-24

Freezing starting rate limit for savings for tax year 2023-24

Charge and main rate for financial year 2024

Standard small profits rate and fraction for financial year 2024

Temporary full expensing etc for expenditure on plant or machinery

Annual investment allowance to remain at £1M beyond temporary period

First-year allowance for expenditure on electric vehicle charge points

Relief for research and development

Treatment of profits from patents etc: small profits rate of corporation tax

Energy (oil and gas) profits levy: de-carbonisation allowance

Museums and galleries exhibition tax relief: extension of sunset date

Extension of the temporary increase in theatre tax credit etc

Seed enterprise investment scheme: increase of limits etc.

CSOP schemes: share value limit and share class

Enterprise management incentives: restricted shares and declarations

Lifetime allowance charge abolished

Certain lump sums to be taxed at marginal rate

Annual allowance increased

Money purchase annual allowance

Annual allowance: tapering

Modification of certain existing transitional protections

Collective money purchase arrangements

Relief relating to net pay arrangements

Payments under Jobs Growth Wales Plus

Power to clarify tax treatment of devolved social security benefits

Qualifying care relief: increase in individual’s limit

Estates in administration and trusts

Transfer of basic life assurance and general annuity business

Certain re-insurance sums not to count as deemed I-E receipts

Insurers in difficulties: write-down orders for corporation tax purposes

Insurers in difficulties: write-down orders in case of pension schemes

Corporate interest restriction

Investment vehicles

Share exchanges involving non-UK incorporated close companies

Records relating to transfer pricing

Double taxation relief: foreign nominal rates

Payments to farmers under the lump sum exit scheme etc

Contracts completed after ordinary notification period

Separated spouses and civil partners

Carried interest: election to pay tax as scheme profits arise

Relief on disposal of joint interests in land

Meaning of “alcoholic product”

Underlying profits of permanent establishments

Introduction to multinational top-up tax

Chargeable persons

Amount charged by reference to “top-up amounts”

How to calculate top-up amounts and attribute them

Administration of multinational top-up tax

Meaning of “multinational group” and “ultimate parent”

Excluded entities

Responsible members

Qualifying multinational groups

Change in composition of multinational group

Whether de-merged groups meet the revenue threshold

Total top-up amount for a territory

Adjusted profits of a member of a multinational group

Underlying profits as determined for statements of ultimate parent

Underlying profits of permanent establishments

Underlying profits accounts

No amounts outside of profit and loss account to be included

Profits adjusted to be before tax

Profits adjusted to be profits before consolidation adjustments to eliminate intragroup transactions

Profits adjusted to be profits before certain purchase accounting adjustments

General exclusion of dividends

Excluded equity gain or loss

Included revaluation method gain or loss

Adjustments for asymmetric foreign currency income and losses

Election to treat certain companies as transparent

Adjustment for changes in accounting policies and prior period errors

Accrued pension expense

Treatment of qualifying refundable tax credits

Arm’s length requirement for certain transactions

Transactions between members of a multinational group: differences with accounting for tax

Adjustments for companies in distress

Adjustments where life assurance business carried on

Exclusion of certain insurance reserve movement expense

Exclusion of qualifying intra-group financing arrangement expenses

Qualifying tier one capital

Exclusion of international shipping profits

Minority owned members

Ancillary international shipping profits

Permanent establishment income and expense attribution

Attribution of losses between permanent establishment and main entity

Election to use realisation principle

Discharging goods from free-circulation procedure subject to guarantee

Election to spread certain capital gains over five years

Election to exclude intra-group transactions

Election to have excluded equity gains and losses included

Election in relation to hedging currency risk in ownership interests

Underlying profits of hybrids

Underlying profits of transparent and reverse hybrid entities

Certain non tax resident entities to be treated as flow-through entities

Adjustments for ultimate parent that is a flow-through entity

Ultimate parent subject to qualifying dividend regime

Application of section 171 to members in the same territory as the ultimate parent

Covered taxes

Amount of covered tax balance

Amounts excluded from covered tax balance

Amounts to be reflected in covered tax balance

Permanent establishments

Reallocation of tax expense

Controlled foreign company tax regimes

Blended CFC regimes

Distributions from other members of a group

Total deferred tax adjustment amount

Qualifying foreign tax credits (substitute loss carry forward assets)

Recaptured deferred tax liabilities

Inclusion of existing deferred tax assets and liabilities on entry into regime

Deferred tax assets recorded at less than minimum rate

Election for losses to be treated as special loss deferred tax assets

Further provision about elections under section 187

Deemed distribution tax election

Deemed distribution tax amount

Reduction of recapture amount

Recalculation where member leaves the group

Calculation of top-up amounts

Total top-up amount for a territory

Substance based income exclusion

Eligible payroll costs

Eligible tangible asset amount

Eligible payroll costs and eligible tangible asset amount: permanent establishments and flow-through entities

Election to treat total top-up amount as nil

Top-up amounts multiplied by inclusion ratio

Inclusion ratio

Covered taxes balance less than nil when members in a territory have a profit

Additional top-up amounts where covered taxes less than expected

Allocation of collective additional amount under section 203 to members

Election to carry forward and reduce collective additional amount

Additional top-up amounts where recalculations required

Allocation of collective additional amounts under section 206 to members

Member joining or leaving multinational group

When transfer of controlling interest treated as acquisition of assets and liabilities

Transfer of assets or liabilities from a member of a multinational group

Transfer of assets or liabilities to a member of a multinational group

Meaning of “qualifying reorganisation”

Investment entity tax transparency election

Taxable distribution method election

Undistributed income amount

Election where assets and liabilities adjusted to fair value for tax purposes

Post filing adjustments of covered taxes

Effect of rate changes to deferred tax expense

Adjustment where covered taxes not paid

Top-up amount of investment entity

Substance based income exclusion for investment entity

Investment entity effective tax rate

Adjustments

Additional top-up amounts of investment entities

Attribution of top-up amounts and additional top-up amounts to responsible member

Joint venture group

Application of Part to joint venture groups

Minority owned members

Multi-parent groups

Meaning of terms and concepts used in this Part

Meaning of entity

Permanent establishments treated as entities

Treatment of protected cell companies

Governmental, international and non-profit entities

Pension funds and pension services entities

Investment funds and investment entities

Intermediate and partially-owned parent members

Tax transparency of entities

Location of entities

Location of flow-through entities and permanent establishments

Pillar Two territories

Ownership interests and controlling interests

Calculating percentage ownership interests of a specific entity or individual

Calculating percentage ownership interests of a class

Calculating percentage ownership interests: excluded entities

Calculating percentage direct and indirect ownership interests

Timing of transfers of interests

Exclusion of indirect interests held through ultimate parent

Consolidated financial statements

Acceptable accounting standards

Accounting periods

Application to sovereign wealth funds

Disqualified and qualified refundable imputation taxes

Use of currency

Pillar Two rules

Qualifying domestic top-up tax

Qualifying undertaxed profits tax

Meaning of “connected”

Other definitions

Transitional provision

Index of defined expressions

Power to amend to ensure consistency with Pillar Two

Regulations

Multinational top-up tax to apply from 31 December 2023

Introduction to domestic top-up tax

Qualifying entities

DTT excluded entities

Permanent establishments

Chargeable persons

Amount charged

Election to make one member of a group liable for amounts charged

Determining top-up amounts of entity that is a member of a group

Determining top-up amounts of entity that is not a member of a group

Application of section 262

Application of Schedule 14

Application of transitional provision

Index of defined expressions

Domestic top-up tax to apply from 31 December 2023

Charge on exceptional generation receipts

Key concepts (generating undertaking etc)

Benchmark amount

Attribution of generation

Generation receipts

Allowable costs

Exceptional generation fuel costs

Exceptional revenue sharing costs

Groups

Lead member of a group and its qualifying periods

Liability of members of groups

Election for members with significant minority shareholding to pay levy

Qualifying partnerships

Qualifying joint ventures

Non-chargeable amounts of joint venture to be attributed to participants

Generation acquired and supplied by JV participants

Arrangements that reflect receipts (JV participants)

Generation acquired and supplied by significant minority shareholders

Arrangements that reflect receipts (significant minority shareholders)

Surrender of shortfalls

Amount that may be surrendered and use of that amount

Election to treat certain companies as transparent

Effect of company being transparent

General application of corporation tax administration

Company tax returns

Requirement to provide information about payments

Claims to shortfall amounts

Application of Part 5A of TMA 1970 and Instalment Payments Regulations

Application of Part 5 of CTA 2010 for the purposes of determining interests

Anti-avoidance

Information sharing

Interaction of electricity generator levy with corporation tax

Regulations under this Part

Minor definitions relating to electricity market

Definitions in this Part

Transactions funded with the assistance of a public subsidy

Deposit schemes

Dumping, subsidisation and safeguarding remedies

Rulings as to method of valuation of goods

Discharging goods from free-circulation procedure subject to guarantee

Excepted machines etc

Rates of tobacco products duty

Flavour concentrates

New bands and rates

Northern Ireland rates

Rates of vehicle excise duty

Reform of HGV road user levy

End of exempt period for HGV road user levy

Rates of landfill tax

Rates of climate change levy

Rate of plastic packaging tax

Aggregates levy: exemptions and exploitation

Designation of sites

Sunset date for reliefs

Right to repayment of income tax to be inalienable

Late payment interest on value added tax

VAT credits: repayment interest due where evidence not provided

Insurance premium tax: power to make regulations about notifications

Penalties for failure to make payments of plastic packaging tax on time

Approval of aerodromes

Approved aerodromes: minor and consequential amendments

Temporary approvals etc

Licensing authorities: requirements to give or obtain tax information

Section 342: consequential amendments

Definition of “charity” restricted to UK charities

Definition of “community amateur sports club” restricted to UK clubs

Exemptions from tax

Abolition of the Office of Tax Simplification

Pension benefits and inheritance tax

International arrangements for exchanging information

Payment of unclaimed money in court into the Consolidated Fund

Financial sanctions regulations: prohibition on certain payments by HMRC

Communications data

Interpretation

Short title

Requirement to make claim notifications in relation to certain R&D claims

Relief for R&D expenditure on data and cloud computing

Relief for R&D expenditure on data and cloud computing: consequential amendments

Introduction

Power of HMRC to collect overpaid R&D tax relief or expenditure credit

Time limits for R&D claims

Requirement to provide additional information in relation to R&D claims

Power of HMRC to remove R&D claims made in error from return

Amendment of CTA 2009

R&D tax relief: circumstances in which enterprises are treated as SMEs

Accounts treated as prepared on going concern basis

Meaning of expenditure incurred on payments

The applicable rate for grossing up basic amounts of estate income

The applicable rate for grossing up for determining shares in an estate in the final tax year

Income from stock dividends etc treated as bearing income tax at 0%

Income treated as dividend income and savings income

Order in which basic amounts are treated as paid from aggregate income

The applicable rate for grossing up basic amounts of estate income

The applicable rate for grossing up for determining shares in an estate in the final tax year

Income from stock dividends etc treated as bearing income tax at 0%

Order in which basic amounts are treated as paid from aggregate income

Low income estates and trusts: tax liability of personal representatives and trustees

Low income estates: tax liability of beneficiaries

Low income estates: tax liability of beneficiaries

Introduction

Tax-interest expense amounts of a company: charities

First period of account where new holding company

Amounts not brought into account in determining a company’s tax-EBITDA

“Relevant expense amount” and “relevant income amount”

Adjusted net group-interest expense: debits referable to times before UK property business etc carried on

Adjusted net group-interest expense: debits in respect of pre-trading expenditure

Qualifying net group-interest expense: meaning of “equity notes”

Capitalised interest brought into account for tax purposes in accordance with GAAP

Interest allowance (non-consolidated investment) election: “non-consolidated associate”

Public infrastructure

Partnerships and other transparent entities

Investments held by investment managers

Determining the worldwide group: “non-consolidated subsidiary” and “consolidated subsidiary”

Appointment of a reporting company by Revenue and Customs

Revised interest restriction return

Enquiry into interest restriction return

Determinations by officers of Revenue and Customs

Consequential claims to company tax returns

Penalties for errors: CIR alterations to be ignored in calculating potential lost revenue

Disapplication of carry forward rule for deficits

Defined expressions used in Part 10 of TIOPA 2010: “insurance company”

Determining the worldwide group: consequential amendment

Genuine diversity of ownership

Amendment of CTA 2010

REITs involving single commercial property

3-year development rule

Genuine diversity of ownership

Amendment of the Real Estate Investment Trusts (Assessment and Recovery of Tax) Regulations 2006

Amendment of Schedule 2 to FA 2022

Securitisation companies unable to be QAHCs

Beneficial entitlement held only through QAHCs

Determining relevant interests

Dealing with bodies corporate without share capital

Genuine diversity of ownership

Investment strategy condition

Disposal of derivatives where underlying subject matter is shares

Records to be kept for the purposes of corporation tax

Assessments relating to corporation tax

Records to be kept for the purposes of income tax

Assessments relating to income tax

Penalties for errors

Information and inspection powers

Spirits

Timing of payments

Group payment notices

Effect of group payment for tax purposes

Recovery

Power to make regulations

Penalties payable in connection with this Schedule