H.P. v. SWEDEN
Income tax is charged for the tax year 2017-18.
For the tax year 2017-18 the main rates of income tax are as follows—
the basic rate is 20%;
the higher rate is 40%;
the additional rate is 45%.
For the tax year 2017-18 the default rates of income tax are as follows—
the default basic rate is 20%;
the default higher rate is 40%;
the default additional rate is 45%.
For the tax year 2017-18 the savings rates of income tax are as follows—
the savings basic rate is 20%;
the savings higher rate is 40%;
the savings additional rate is 45%.
For the amount specified in section 12(3) of ITA 2007 (starting rate for savings) substitute “ £5000 ”.
The amendment made by subsection (1) has effect in relation to the tax year 2017-18 and subsequent tax years.
Section 21 of ITA 2007 (indexation), so far as relating to the starting rate limit for savings, does not apply in relation to the tax year 2017-18 (but this section does not override that section for subsequent tax years).
Corporation tax is charged for the financial year 2018.
Schedule 1 makes provision about workers' services provided to the public sector through intermediaries.
Schedule 2 makes provision about optional remuneration arrangements.
ITEPA 2003 is amended as follows.
In section 205 (cost of taxable benefit subject to the residual charge: asset made available without transfer)—
in subsection (1), for paragraph (a) substitute—,
after subsection (1) insert—, and
in subsection (2), in the words before paragraph (a), for “cost of the taxable” substitute “ annual cost of the ”.
After section 205 insert—
In section 365 (deductions where employment-related benefit provided)—
in subsection (1)—
omit the “and” at the end of paragraph (a), and
after that paragraph insert—,
in subsection (3), for “sections 204 to 206” substitute “ section 204 or 206 ”, and
in the heading, for “employment-related benefit” substitute “ certain employment-related benefits ”.
The amendments made by this section have effect for the tax year 2017-18 and subsequent tax years.
Schedule 3 makes provision about—
registered pension schemes established outside the United Kingdom, and
payments made in respect of overseas pension entitlement.
Schedule 4 contains provision about charging income tax—
where payments are made in respect of overseas pensions, and
on transfers to qualifying recognised overseas pension schemes.
Schedule 5 makes provision about deduction of income tax at source.
In section 226A of ITEPA 2003 (amount treated as earnings)—
in subsection (2), for “calculated in accordance with subsection (3)” substitute “ equal to the market value of the shares ”;
omit subsection (3);
in subsection (6), omit “and sections 226B to 226D”;
in subsection (7), after “subsection (1)” insert “ (but not subsection (2)) ”.
Omit sections 226B to 226D of ITEPA 2003 (deemed payment).
In consequence of subsection (2), in ITEPA 2003 omit the following—
section 479(3A);
section 531(3A);
section 532(4A).
In consequence of subsection (2), in CTA 2009 omit the following—
in section 1005, the definition of “employee shareholder share”;
section 1009(6);
in section 1010(1), “and, in the case of employee shareholder shares, section 1038B”;
in section 1011(4)(b), “(but see also section 1038B of this Act)“;
in sections 1018(1) and 1019(1), “and, in the case of employee shareholder shares, section 1038B”;
sections 1022(5), 1026(5), 1027(5), 1033(5) and 1034(5);
section 1038B;
sections 1292(6ZA) and 1293(5A);
in Schedule 4, the entry relating to “employee shareholder share”.
The amendments made by this section have effect in relation to shares acquired in consideration of an employee shareholder agreement entered into on or after the relevant day.
The relevant day is 1 December 2016, subject to subsection (7).
Where the individual entering into an employee shareholder agreement receives the advice referred to in section 205A(6)(a) of the Employment Rights Act 1996— the relevant day is 2 December 2016.
on 23 November 2016, but
before 1.30 pm on that day,
TCGA 1992 is amended as follows.
In section 58 (spouses and civil partners)—
in subsection (2)—
at the end of paragraph (a) insert “ or ”;
omit paragraph (c) and the preceding “or”;
omit subsections (3) to (5).
In section 149AA (restricted and convertible employment-related securities and employee shareholder shares), for subsection (6A) substitute—
Omit sections 236B to 236F (exemption for employee shareholder shares).
In section 236G (relinquishment of employment rights is not disposal of an asset), in subsection (1), for “employee shareholder agreement” substitute “ agreement by virtue of which the individual is an employee shareholder (see section 205A(1)(a) to (d) of the Employment Rights Act 1996) ”.
The amendments made by this section have effect in relation to shares acquired in consideration of an employee shareholder agreement entered into on or after the relevant day.
The relevant day is 1 December 2016, subject to subsection (8).
Where the individual entering into an employee shareholder agreement receives the advice referred to in section 205A(6)(a) of the Employment Rights Act 1996— the relevant day is 2 December 2016.
on 23 November 2016, but
before 1.30 pm on that day,
In ITTOIA 2005, omit section 385A (no charge to income tax on purchase by company of exempt employee shareholder shares).
The amendment made by this section has effect in relation to the purchase from an individual of shares which were acquired in consideration of an employee shareholder agreement entered into on or after the relevant day.
The relevant day is 1 December 2016, subject to subsection (4).
Where the individual entering into an employee shareholder agreement receives the advice referred to in section 205A(6)(a) of the Employment Rights Act 1996— the relevant day is 2 December 2016.
on 23 November 2016, but
before 1.30 pm on that day,
Schedule 6 makes provision about employment income provided through third parties.
Schedule 7 contains amendments of Schedule 8 to VATA 1994 (zero-rating).
In section 51(2)(b) of FA 1994 (standard rate of insurance premium tax), for “10 per cent” substitute “ 12 per cent ”.
Subject to subsection (3), the amendment made by subsection (1) has effect in relation to a premium falling to be regarded for the purposes of Part 3 of FA 1994 as received under a taxable insurance contract by an insurer on or after 1 June 2017.
That amendment does not have effect in relation to a premium falling within subsection (4), unless the premium falls to be regarded for the purposes of Part 3 of FA 1994 as received under a taxable insurance contract by an insurer on or after 1 June 2018.
A premium falls within this subsection if it is in respect of a risk for which the period of cover begins before 1 June 2017.
In the application of sections 66A and 66B of FA 1994 (anti-forestalling provision) in relation to the increase in insurance premium tax made by this section, the announcement relating to that increase is to be taken to have been made on 8 March 2017 (and “the change date” is to be taken to be 1 June 2017).
This section is to be read with section 66C of FA 1994 (premiums relating to more than one period of cover).
FA 1994 is amended as follows.
After section 66 insert—
Omit—
section 67 (spent transitional provision), and
sections 67A to 67C (which are superseded by sections 66A and 66B inserted by subsection (2)).
The amendments made by subsections (2) and (3)(b) have effect on and after 8 March 2017.
Despite the repeal by subsection (3) of sections 67A and 67C of FA 1994, those sections continue to have effect so far as they apply to premiums received on or after 23 November 2016 and before 8 March 2017.
In section 30 of FA 1994 (air passenger duty: rates of duty), in subsection (4A) (long haul rates of duty)—
in paragraph (a), for “£73” substitute “ £75 ”;
in paragraph (b), for “£146” substitute “ £150 ”.
The amendments made by this section have effect in relation to the carriage of passengers beginning on or after 1 April 2017.
Schedule 1 to VERA 1994 (annual rates of duty) is amended as follows.
In paragraph 1 (general rate of duty)—
in sub-paragraph (2) (vehicle not covered elsewhere in Schedule with engine cylinder capacity exceeding 1,549cc), for “£235” substitute “ £245 ”, and
in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc), for “£145” substitute “ £150 ”.
In paragraph 1B (graduated rates of duty for light passenger vehicles)—
in the words before paragraph (a), for “tables” substitute “ table ”,
in paragraph (a), at the end insert “ and ”,
in paragraph (b), at the end omit “, and”,
omit paragraph (c),
CO2 emissions figure Rate (1) (2) (3) (4) Exceeding Not exceeding Reduced rate Standard rate g/km g/km £ £ 100 110 10 20 110 120 20 30 120 130 105 115 130 140 125 135 140 150 140 150 150 165 180 190 165 175 210 220 175 185 230 240 185 200 270 280 200 225 295 305 225 255 510 520 255 525 535
in the sentence immediately following Table 2—
at the beginning, for “Table 2” substitute “ The table ”, and
for paragraphs (a) and (b) substitute—
In paragraph 1J (VED rates for light goods vehicles), in paragraph (a), for “£230” substitute “ £240 ”.
In paragraph 2(1) (VED rates for motorcycles)—
in paragraph (a), for “£17” substitute “ £18 ”,
in paragraph (b), for “£39” substitute “ £41 ”,
in paragraph (c), for “£60” substitute “ £62 ”, and
in paragraph (d), for “£82” substitute “ £85 ”.
The amendments made by this section have effect in relation to licences taken out on or after 1 April 2017.
ALDA 1979 is amended as follows.
In section 5 (rate of duty on spirits), for “£27.66” substitute “ £28.74 ”.
In section 36(1AA) (rates of general beer duty)—
in paragraph (za) (rate of duty on lower strength beer), for “£8.10” substitute “ £8.42 ”, and
in paragraph (a) (standard rate of duty on beer), for “£18.37” substitute “ £19.08 ”.
In section 37(4) (rate of high strength beer duty), for “£5.48” substitute “ £5.69 ”.
In section 62(1A) (rates of duty on cider)—
in paragraph (a) (rate of duty per hectolitre on sparkling cider of a strength exceeding 5.5%), for “£268.99” substitute “ £279.46 ”,
in paragraph (b) (rate of duty per hectolitre on cider of a strength exceeding 7.5% which is not sparkling cider), for “£58.75” substitute “ £61.04 ”, and
in paragraph (c) (rate of duty per hectolitre in any other case), for “£38.87” substitute “ £40.38 ”.
For the table in Schedule 1 substitute—Table of rates of duty on wine and made-wine .
The amendments made by this section are treated as having come into force on 13 March 2017.
TPDA 1979 is amended as follows.
1. Cigarettes An amount equal to 16.5% of the retail price plus £207.99 per thousand cigarettes. 2. Cigars £259.44 per kilogram 3. Hand-rolling tobacco £209.77 per kilogram 4. Other smoking tobacco and chewing tobacco £114.06 per kilogram
The amendment made by this section is treated as having come into force at 6pm on 8 March 2017.
TPDA 1979 is amended as follows.
In section 6(5)(a) (alteration of rates of duty), for “the amount” substitute “ each amount ”.
“1. Cigarettes An amount equal to the higher of— 16.5% of the retail price plus £207.99 per thousand cigarettes, or £268.63 per thousand cigarettes.
The amendments made by this section are treated as having come into force on 20 May 2017.
Two or more persons together control a body corporate if together they have the power to secure that the affairs of the body corporate are conducted in accordance with their wishes in any way specified in sub-paragraph (5)(a) to (c). A person controls a partnership if the person is a member of the partnership and— Two or more persons together control a partnership if they are members of the partnership and together they— Paragraph 19(2) to (5) of Schedule 36 (connected persons etc) applies to a person referred to in sub-paragraph (7) or (8) as if references to “P” were to that person. A person has significant influence over a body corporate or partnership if the person— Two or more persons together have significant influence over a body corporate or partnership if together those persons— References to a person being a promoter are to the person carrying on business as a promoter.
In Part 2 of Schedule 34 to FA 2014, for paragraphs 13B to 13D substitute—
In Part 4 of Schedule 34A to FA 2014 (meeting section 237A conditions: bodies corporate and partnerships), for paragraphs 20 to 22 substitute—
In Part 4 of Schedule 34A to FA 2014, in paragraph 23 (interpretation)—
“control” and “significant influence” have the same meanings as in Part 4 of Schedule 34 (see paragraph 13A(5) to (11)); references to a person being a promoter are to the person carrying on business as a promoter;
in sub-paragraph (2), for “20(1)(a), 21(1)(a) and 22(1)(a)” substitute “ 20 to 22 ”.
The amendments made by subsections (1) and (2) have effect for the purposes of determining whether a person meets a threshold condition in a period of three years ending on or after 8 March 2017.
The amendments made by subsections (3) and (4) have effect for the purposes of determining whether a person meets a section 237A condition in a period of three years ending on or after 8 March 2017.
A tax called “soft drinks industry levy” is to be charged in accordance with this Part.
The Commissioners are responsible for the collection and management of soft drinks industry levy.
“Soft drink” means—
a beverage of an alcoholic strength not exceeding 1.2%;
a liquid which, when prepared in a specified manner, constitutes a beverage within paragraph (a);
a liquid flavouring (a “flavour concentrate”) which, when processed in a specified manner in a dispensing machine, constitutes a beverage within that paragraph.
A liquid is prepared in a specified manner if it is—
diluted with water,
combined with crushed ice, or processed so as to create crushed ice,
combined with carbon dioxide, or
prepared by way of a process that involves any combination of the processes mentioned in paragraphs (a) to (c).
A person “packages” a soft drink if the person cans, bottles or otherwise packages the soft drink in a form in which— and “packaged” is to be construed accordingly.
in the case of a soft drink within subsection (1)(a), it is suitable to be consumed without further preparation, ...
in the case of a soft drink within subsection (1)(b), it is suitable to be consumed when prepared in a specified manner (and without any other preparation), and
in the case of a soft drink within subsection (1)(c)—
it is suitable to be consumed when processed in a specified manner in a dispensing machine (and without any other processing or preparation), and
it is ready for use in a dispensing machine;
A flavour concentrate is processed in a specified manner if—
it is combined with added sugar ingredients, with or without—
artificial sweeteners, or
one or more other flavour concentrates; and
the flavour concentrate (or combination) is prepared in a specified manner.
A “dispensing machine” is a machine designed to—
combine, process or prepare ingredients so as to produce a beverage, and
supply the beverage directly to a consumer.
In subsection (2A)(a), “added sugar ingredients” means anything within paragraph (a) or (b) of section 29(2).
In this Part a reference to “prepared drink” is a reference to—
a soft drink within subsection (1)(a) of section 26;
a beverage that would result from preparing a liquid within subsection (1)(b) of that section—
in a specified manner (see section 26(2)), and
in accordance with the relevant dilution ratio;
a beverage that would result from—
processing a flavour concentrate within subsection (1)(c) of that section in a specified manner in a dispensing machine, and
in accordance with the relevant dispensing instructions.
The “relevant dilution ratio” means—
the dilution ratio stated on, or calculated by reference to information stated on, the packaging of the soft drink;
where subsection (3)(a) or (4) applies, the dilution ratio determined by the Commissioners.
This subsection applies where—
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;
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.
The “relevant dispensing instructions” means—
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;
where subsection (3)(b) or (4A) applies, the dispensing instructions determined by the Commissioners.
This subsection applies where—
the dilution ratio, or information by reference to which the dilution ratio can be calculated, is stated on the packaging of the soft drink, and
it is reasonable to assume that the main purpose, or one of the main purposes, of stating that particular dilution ratio or information is avoiding or reducing liability for soft drinks industry levy.
The Commissioners may by or under regulations make provision about the criteria for—
determining a dilution ratio for the purposes of subsection (2)(b);
determining whether the main purpose, or one of the main purposes, of— is avoiding or reducing liability for soft drinks industry levy.
stating a particular dilution ratio or information, or
providing particular dispensing instructions;
determining dispensing instructions for the purposes of subsection (2A)(b);
This subsection applies where—
dispensing instructions are provided, and
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.
“Chargeable soft drink” means a packaged soft drink that—
meets the sugar content condition (see section 29), and
is not an exempt soft drink (see section 30).
A packaged soft drink meets the sugar content condition if ...—
either—
it is a soft drink within section 26(1)(c), or
it contains added sugar ingredients; and
it contains at least 5 grams of sugars (whether or not as a result of containing added sugar ingredients) per 100 millilitres of prepared drink.
A packaged soft drink contains “added sugar ingredients” if any of the following are combined with other ingredients at any stage in the production of the soft drink—
calorific mono-saccharides or di-saccharides;
a substance containing calorific mono-saccharides or di-saccharides.
But a packaged soft drink does not contain “added sugar ingredients” only by reason of containing fruit juice, vegetable juice or milk (or any combination of them).
The Commissioners may by regulations make provision about what is, or is not, to be treated for the purposes of this Part as fruit juice, vegetable juice or milk.
Where regulations under subsection (4) contain a reference to an EU instrument or any provision of an EU instrument, the regulations may provide that the reference is to be construed as a reference to that instrument or that provision as amended from time to time.
The following are “exempt soft drinks”—
milk-based drinks,
milk substitute drinks,
alcohol substitute drinks, ...
soft drinks of a specified description which are for use for medicinal or other specified purposes , and
soft drinks within section 26(1)(c) (flavour concentrates) that meet such conditions as may be specified.
“Milk-based drink” means a soft drink which contains at least 75 millilitres of milk per 100 millilitres of prepared drink.
“Milk substitute drink” means a soft drink which—
contains at least the specified quantities of calcium, and
meets such other conditions as may be specified.
“Alcohol substitute drink” means a soft drink which—
is similar to a particular kind of alcoholic beverage, and
meets such other conditions as may be specified.
“Alcoholic beverage” means a beverage which is of an alcoholic strength exceeding 1.2%.
The Commissioners may by regulations make further provision about the criteria for determining what is, or is not, to be treated as an exempt soft drink.
Where regulations made under, or for the purposes of, this section contain a reference to an EU instrument or any provision of an EU instrument, the regulations may provide that the reference is to be construed as a reference to that instrument or that provision as amended from time to time.
The charge to soft drinks industry levy arises on a chargeable event which occurs on or after 6 April 2018.
Subsection (1) is subject to section 37 (small producer exemption).
This section applies where chargeable soft drinks are packaged by a person on premises in the United Kingdom (the “packaging premises”).
A chargeable event occurs on the removal of the chargeable soft drinks from the packaging premises.
But—
if, on removal from the packaging premises, the secondary warehousing condition is met in relation to the chargeable soft drinks, a chargeable event occurs at the time that the secondary warehousing condition ceases to be met in relation to those soft drinks (and not at the time mentioned in subsection (2));
if the chargeable soft drinks are made available for sale or free of charge before a chargeable event in relation to the soft drinks occurs under subsection (2) or paragraph (a), a chargeable event occurs at the time the soft drinks are made available (and not at the time mentioned in subsection (2) or paragraph (a)).
For the purposes of this section and section 33, the secondary warehousing condition is met, at any time, in relation to chargeable soft drinks if the chargeable soft drinks are, at that time— in compliance with such conditions and requirements as may be imposed by regulations under section 34.
in storage in a compliant warehouse, or
being transported—
from the packaging premises to a compliant warehouse, or
between compliant warehouses,
References in this section and in section 33 to a “compliant warehouse” are references to premises—
that are, or are to be, used for the storage of chargeable soft drinks, and
in respect of which the conditions and requirements specified in regulations under section 34(a) are met.
This section applies where chargeable soft drinks are imported into the United Kingdom.
A chargeable event occurs, in relation to imported chargeable soft drinks, on first receipt of the soft drinks by a relevant person (the “first recipient”).
But subsection (2) is subject to subsections (7) to (9).
The “first receipt” of imported chargeable soft drinks is the first occasion on which the soft drinks are delivered to a place in the United Kingdom which is a relevant person's place of business (including where the chargeable soft drinks are delivered from a place outside the United Kingdom which is another place of business of the relevant person).
“Relevant person” means a person who carries on a business involving the sale of chargeable soft drinks.
The reference in subsection (5) to the sale of chargeable soft drinks includes a reference to—
sale by wholesale,
sale by retail, and
sale for consumption on or in the vicinity of premises on which the drinks are sold.
Subsection (8) applies if, on first receipt of the imported chargeable soft drinks, the place of business to which the soft drinks are delivered is a compliant warehouse.
Subject to subsection (9), a chargeable event occurs at the time that the secondary warehousing condition ceases to be met in relation to the imported chargeable soft drinks (and not at the time mentioned in subsection (2)).
If the chargeable soft drinks are made available for sale or free of charge by a relevant person (the “first seller”) before a chargeable event in relation to the soft drinks occurs under subsection (2) or (8), a chargeable event occurs at the time the chargeable soft drinks are made available (and not at the time mentioned in subsection (2) or (8)).
This section is subject to section 58A (Isle of Man: import and export of chargeable soft drinks).
The Commissioners may by regulations make provision, for the purposes of sections 32 and 33—
specifying conditions and requirements in respect of premises on which chargeable soft drinks may be stored before the occurrence of a chargeable event (see section 32(5)(b));
specifying other conditions and requirements as to the storage of chargeable soft drinks for the purposes of the secondary warehousing condition (see section 32(4));
specifying conditions and requirements as to the transportation of chargeable soft drinks for the purposes of the secondary warehousing condition;
imposing obligations on specified persons to provide information in connection with the storage or transportation of chargeable soft drinks.
Where the charge to soft drinks industry levy arises on a chargeable event within section 32(2) or (3), the person who packages the chargeable soft drinks is liable to pay the amount charged.
Where the charge to soft drinks industry levy arises on a chargeable event within section 33(2) or (8), the relevant person who is the first recipient is liable to pay the amount charged.
Where the charge to soft drinks industry levy arises on a chargeable event within section 33(9), the relevant person who is the first seller is liable to pay the amount charged.
Soft drinks industry levy is charged—
in the case of chargeable soft drinks that meet the higher sugar threshold, at the rate of £2.78 per 10 litres of prepared drink;
in the case of chargeable soft drinks that do not meet the higher sugar threshold, at the rate of £2.08 per 10 litres of prepared drink.
A chargeable soft drink meets the higher sugar threshold if it contains at least 8 grams of sugars (whether or not as a result of containing added sugar ingredients) per 100 millilitres of prepared drink.
This section applies where—
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
each of those flavour concentrates is a chargeable soft drink.
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.
Subject to subsection (4), the “relevant proportion” is— where N is the number of flavour concentrates that are designed to be combined.
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—
in unequal proportions, or
in different combinations for different beverages.
No charge to soft drinks industry levy arises—
on a chargeable event within section 32 in relation to chargeable soft drinks produced by a person who is, on the relevant day, a qualifying small producer;
on a chargeable event within section 33 in relation to chargeable soft drinks produced by a person who is, on the relevant day, a small producer.
Chargeable soft drinks are “produced” by a person if they are packaged (by or on behalf of the person) for marketing under—
the person's name or business name, or
another name which is used in accordance with a licence granted to the person.
For the purposes of this section and section 38, the “relevant day”, in relation to chargeable soft drinks, is the day on which the charge to soft drinks industry levy on the chargeable soft drinks would (apart from this section) arise.
“Small producer” has the meaning given by section 38.
A person is a “qualifying small producer” if the person is a small producer who is either—
registered under section 45 (voluntary registration: small producers), or
ineligible for registration under that section because the person does not meet the condition in section 45(2)(c) (voluntary registration eligibility conditions: packaging by a person other than the producer).
A person (“the producer”) who produces chargeable soft drinks is a “small producer” on the relevant day if Conditions A and B are met.
Condition A is met if the aggregate of— does not exceed the small producer threshold.
the amount of the producer's chargeable soft drinks within section 26(1)(a) in respect of which a relevant event has occurred during the relevant 12 month period, and
the amount of prepared drink that would result from the producer's chargeable soft drinks within section 26(1)(b) in respect of which a relevant event has occurred during the relevant 12 month period,
Condition B is met if there are reasonable grounds for believing that the aggregate of— will not exceed the small producer threshold.
the amount of the producer's chargeable soft drinks within section 26(1)(a) in respect of which a relevant event will occur during the relevant 30 day period, and
the amount of prepared drink that would result from the producer's chargeable soft drinks within section 26(1)(b) in respect of which a relevant event will occur during the relevant 30 day period,
A “relevant event” occurs in respect of chargeable soft drinks on the removal of the chargeable soft drinks from the premises on which they are packaged.
But—
if, on removal from the premises on which the chargeable soft drinks are packaged, the secondary warehousing condition is met in relation to the soft drinks, a “relevant event” occurs in relation to those soft drinks at the time that the secondary warehousing condition ceases to be met in relation to them (and not at the time mentioned in subsection (4));
if the chargeable soft drinks are made available for sale or free of charge before a relevant event in relation to the soft drinks occurs under subsection (4) or paragraph (a), a “relevant event” occurs at the time they are made available (and not at the time mentioned in subsection (4) or paragraph (a)).
For the purposes of subsections (2) and (3)—
the “relevant 12 month period” is the period of 12 months ending with the end of the month that immediately precedes the month in which the relevant day falls, and
the “relevant 30 day period” is the period of 30 days beginning with the relevant day.
The “small producer threshold” is 1 million litres.
References in this section to “the producer's chargeable soft drinks” are references to chargeable soft drinks produced by the producer or a person connected with the producer.
The Commissioners may by regulations make provision in relation to cases where, after a charge to soft drinks industry levy has arisen in relation to chargeable soft drinks—
the soft drinks are exported from the United Kingdom;
the soft drinks are lost or destroyed;
in the case of soft drinks within section 26(1)(c), the flavour concentrate—
has not been combined with added sugar ingredients (but has been prepared in a specified manner), or
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.
The provision that may be made is provision—
for the liable person to be entitled to a tax credit in respect of any soft drinks industry levy charged on the soft drinks that are that fall within subsection (1)(a), (b) or (c) (as the case may be);
for the tax credit to be brought into account when the person is accounting for soft drinks industry levy due from the person for the prescribed accounting period or periods.
Regulations under this section may include provision—
for any entitlement to a tax credit to be conditional on the making of a claim by the liable person, and specifying the period within which and the manner in which a claim may be made;
for any entitlement to bring a tax credit into account to be conditional on compliance with prescribed requirements;
specifying circumstances in which, and criteria for determining the period for which, a liable person is not entitled to a tax credit;
requiring a claim for a tax credit to be evidenced and quantified by reference to prescribed records and other documents;
requiring a person claiming any entitlement to a tax credit to keep, for the prescribed period and in the prescribed form and manner, those records and documents and a record of prescribed information relating to the claim;
for the withdrawal of a tax credit where any requirement of the regulations is not complied with;
about adjustments of liability for soft drinks industry levy in connection with entitlement or withdrawal of entitlement to a tax credit in prescribed circumstances;
about the treatment of a tax credit where the liable person ceases to carry on a business involving the package or sale of chargeable soft drinks.
Regulations under paragraph (a) of subsection (1) may include provision for the sale or provision of chargeable soft drinks on passenger transport operating between the United Kingdom and a place outside of the United Kingdom to be treated as “export from the United Kingdom” for the purposes of regulations under that paragraph.
Regulations under paragraph (b) of subsection (1) may include provision about the circumstances in which chargeable soft drinks are to be treated as lost or destroyed for the purposes of regulations under that paragraph.
In this section—
“liable person” means the person who is liable under section 35 to pay the charge to soft drinks industry levy referred to in subsection (1);
“prescribed” means specified in, or determined in accordance with, regulations under this section.
This section is subject to section 58A (Isle of Man: import and export of chargeable soft drinks).
The Commissioners must establish and maintain a register for the purposes of this Part.
In this Part, “the register” means the register under subsection (1) and references to registration are to registration in it.
The register may contain such information as the Commissioners think is required for the purposes of the collection and management of soft drinks industry levy.
A person becomes liable to be registered—
at the end of any month, if the person has packaged any chargeable soft drinks in respect of which a chargeable event within section 32 has occurred during that month;
on any day, if there are reasonable grounds for believing that, during the period of 30 days beginning with that day, a chargeable event within section 32 will occur in respect of chargeable soft drinks packaged by the person.
But subsection (1) does not apply to a person if—
the chargeable soft drinks packaged by the person are also produced by the person, and
the person is not liable to be registered under section 42 (liability to register: producers).
Subsection (1) does not apply in relation to a person who is already registrable.
In this section and in sections 42 and 43 references to “a person who is already registrable” are references to a person who—
is registered under this section, section 42 or section 43,
is subject to a relevant notification requirement, or
would, if the person had complied with a relevant notification requirement, be registered under this section, section 42 or section 43.
In subsection (4)(c) “relevant notification requirement” means a requirement under section 44(1) to notify the Commissioners of a liability to register—
arising on a previous occasion, and
in respect of which the notification period has expired.
In this section “notification period” has the meaning given by section 44(2).
A person (“the producer”) who produces chargeable soft drinks becomes liable to be registered—
at the end of any month, if the qualifying amount of the producer's chargeable soft drinks in respect of which a chargeable event within section 32 has occurred during the immediately preceding period of 12 months exceeds the small producer threshold;
on any day, if there are reasonable grounds for believing that the qualifying amount of the producer's chargeable soft drinks in respect of which a chargeable event within section 32 will occur during the period of 30 days beginning with that day will exceed the small producer threshold.
The “qualifying amount” of chargeable soft drinks in respect of which a chargeable event occurs is the aggregate of—
the amount of the chargeable soft drinks within section 26(1)(a) in respect of which the chargeable event occurs, and
the amount of prepared drink that would result from the chargeable soft drinks within section 26(1)(b) in respect of which the chargeable event occurs.
Subsection (1) does not apply in relation to a person who is already registrable.
References in this section to “the producer's chargeable soft drinks” are references to chargeable soft drinks produced by the producer or a person connected with the producer.
A person becomes liable to be registered—
at the end of any month if, during that month, a chargeable event within section 33 has occurred—
on the first receipt, or on the making available, of chargeable soft drinks by the person, or
on the secondary warehousing condition ceasing to be met in relation to chargeable soft drinks in respect of which the person is the first recipient;
on any day, if there are reasonable grounds for believing that, during the period of 30 days beginning with that day, a chargeable event within section 33 will occur—
on the first receipt, or on the making available, of chargeable soft drinks by the person, or
on the secondary warehousing condition ceasing to be met in relation to chargeable soft drinks in respect of which the person is the first recipient.
Subsection (1) does not apply in relation to a person who is already registrable.
A person who becomes liable to be registered under section 41, 42 or 43 must notify the Commissioners of the liability before the end of the notification period.
The “notification period” is the period of 30 days beginning with the day on which the liability arises.
Where the Commissioners are satisfied that a person is liable to be registered (whether or not the person has notified liability under subsection (1)), the Commissioners must register the person with effect from the day on which the liability to register arises.
The Commissioners must register a person who—
meets the voluntary registration eligibility conditions, and
applies to the Commissioners for registration under this section.
The voluntary registration eligibility conditions are met by a person (P) if—
P produces chargeable soft drinks,
P is not liable to be registered under section 42 (liability to register: producers), and
some or all of the chargeable soft drinks produced by P are packaged on premises in the United Kingdom by a person other than P.
A person who is registered under section 41 or 43 may also be registered under this section.
A registration under section 41, 42 or 43 may be cancelled only in accordance with this section.
For the purposes of this section, a person meets the “liability condition” at a particular time if—
at the end of the preceding month, the condition in section 41(1)(a), 42(1)(a) or 43(1)(a) is met in relation to the person, or
at that time, the condition in section 41(1)(b), 42(1)(b) or 43(1)(b) is met in relation to the person.
The Commissioners must cancel a person's registration under section 41, 42 or 43 if—
the person requests the cancellation, and
the person satisfies the Commissioners that the person does not, at the time of the request, meet the liability condition.
A cancellation under subsection (3) is to be made with effect from—
the day on which the request is made, or
such later day as may be agreed between the Commissioners and the person.
The Commissioners may cancel a person's registration under section 41, 42 or 43 if they are satisfied that the person does not meet the liability condition.
A cancellation under subsection (5) is to be made with effect from—
the day on which the person ceased to meet the liability condition, or
such later day as may be agreed between the Commissioners and the person.
But the Commissioners must not cancel a registration under subsection (3) or (5) with effect from any time unless—
they are satisfied that it is not a time when the person would meet the liability condition, and
it is reasonable to believe that the person will not become liable to be registered under section 41(1)(a) or 43(1)(a) during the period of 12 months beginning with that time.
The Commissioners may cancel a person's registration under section 41, 42 or 43 if they are satisfied that the person did not meet the liability condition on the day on which the person was registered, and has not at any subsequent time met the liability condition.
A cancellation under subsection (8) is to be made with effect from the day on which the person was registered.
The Commissioners may cancel a person's registration under section 45 if they are satisfied that the person does not meet the voluntary registration eligibility conditions (see subsection (2) of that section).
A cancellation under subsection (1) is to be made with effect from the day on which the person ceased to meet the voluntary registration eligibility conditions.
The Commissioners must cancel a person's registration under section 45 if the person requests the cancellation.
A cancellation under subsection (3) is to be made with effect from—
the day on which the request is made, or
such later day as may be agreed between the Commissioners and the person.
The Commissioners may by regulations make provision about the correction of entries in the register.
Regulations under subsection (1) may make provision for requiring persons who are, or are liable to be, registered to notify the Commissioners of changes in circumstances which are relevant to the register.
The Commissioners may by or under regulations make provision—
about the form and manner in which a notification under section 44 (notification of liability to register) is to be given;
about the information to be contained in or provided with a notification under that section;
about the form and manner of an application under section 45 (voluntary registration: small producers);
requiring applications, notifications and other communications with the Commissioners in connection with registration to be made electronically.
A person commits an offence if the person is knowingly concerned in, or in the taking of steps with a view to, the fraudulent evasion (by that person or any other person) of soft drinks industry levy.
The references in subsection (1) to the evasion of soft drinks industry levy include references to obtaining, in circumstances where there is no entitlement to it—
a tax credit under regulations under section 39;
a repayment of soft drinks industry levy under Schedule 8.
A person guilty of an offence under this section is liable—
on summary conviction in England and Wales—
to imprisonment for a term not exceeding the general limit in a magistrates’ court, or
to a fine not exceeding £20,000 or (if greater) 3 times the total of the amounts of soft drinks industry levy that were, or were intended to be, evaded, or
to both;
on summary conviction in Scotland—
to imprisonment for a term not exceeding 12 months, or
to a fine not exceeding the statutory maximum or (if greater) 3 times the total of the amounts of soft drinks industry levy that were, or were intended to be, evaded, or
to both;
on summary conviction in Northern Ireland—
to imprisonment for a term not exceeding 6 months, or
to a fine not exceeding the statutory maximum or (if greater) 3 times the total of the amounts of soft drinks industry levy that were, or were intended to be, evaded, or
to both;
on conviction on indictment—
to imprisonment for a term not exceeding 14 years,
to a fine, or
to both.
For the purposes of subsection (3), the amounts of soft drinks industry levy that were, or were intended to be, evaded are to be taken as including— which was, or was intended to be, obtained in circumstances where there was no entitlement to it.
the amount of any tax credit under regulations under section 39, and
the amount of any repayment of soft drinks industry levy under Schedule 8,
In determining for the purposes of subsection (3) the amounts of soft drinks industry levy that were, or were intended to be, evaded, no account is to be taken of the extent to which any liability to levy of a person would be, or would have been, reduced by the amount of any tax credit or repayment of soft drinks industry levy to which the person was, or would have been, entitled.
In relation to an offence committed before 2 May 2022 the reference in subsection (3)(a)(i) to the general limit in a magistrates’ court is to be read as a reference to 6 months.
A person who fails to comply with section 44(1) (obligation to notify the Commissioners of liability to be registered) commits an offence.
In proceedings against a person (P) for an offence under subsection (1), it is a defence for P to prove that P had a reasonable excuse for the failure to comply.
For the purposes of subsection (2)—
where P relies on any other person to do anything, that is not a reasonable excuse unless P took reasonable care to avoid the failure;
where P had a reasonable excuse for the failure but the excuse has ceased, P is to be treated as having continued to have the excuse if the failure is remedied without unreasonable delay after the excuse ceased.
A person guilty of an offence under this section is liable—
on summary conviction in England and Wales—
to imprisonment for a term not exceeding the general limit in a magistrates’ court, or
to a fine not exceeding £20,000 or (if greater) 3 times the amount of the potential lost revenue, or
to both;
on summary conviction in Scotland—
to imprisonment for a term not exceeding 12 months, or
to a fine not exceeding the statutory maximum or (if greater) 3 times the amount of the potential lost revenue, or
to both;
on summary conviction in Northern Ireland—
to imprisonment for a term not exceeding 6 months, or
to a fine not exceeding the statutory maximum or (if greater) 3 times the amount of the potential lost revenue, or
to both;
on conviction on indictment—
to imprisonment for a term not exceeding 3 years,
to a fine, or
to both.
For the purposes of subsection (4), the “potential lost revenue” is the amount of soft drinks industry levy (if any) for which the person who committed the offence is liable for the period—
beginning with the date with effect from which the person is liable to be registered under this Part, and
ending with the date on which the Commissioners received notification of, or otherwise were satisfied as to, the person's liability to be registered under this Part.
In calculating potential lost revenue for the purposes of subsection (4), no account is to be taken of the fact that a potential loss of revenue from the person is or may be balanced by a potential over-payment by another person.
In relation to an offence committed before 2 May 2022 the reference in subsection (4)(a)(i) to the general limit in a magistrates’ court is to be read as a reference to 6 months.
The Commissioners may by regulations make provision about the payment, collection and recovery of soft drinks industry levy.
Regulations under subsection (1) may—
require persons who are or are liable to be registered under this Part to keep accounts for the purposes of the levy in the specified form and manner;
require persons who are or are liable to be registered under this Part to make returns for the purposes of the levy;
make provision for determining the periods (“accounting periods”) by reference to which payments of the levy are to be made;
make provision about the times at which payments of the levy are to be made and methods of payment;
require the amounts payable by reference to accounting periods to be calculated by or under the regulations;
make provision for the correction of errors made in accounting for the levy.
Provision may be made by or under regulations under subsection (2)(b) about—
the periods by reference to which returns are to be made,
the information to be included in returns,
timing, and
the form of, and method of, making returns.
Schedule 8 contains provision about recovery and overpayments.
The Commissioners may by regulations require persons—
to keep, for purposes connected with soft drinks industry levy, records of specified matters, and
to preserve records for a specified period.
A duty under regulations under this section to preserve records may be discharged—
by preserving them in any form and by any means, or
by preserving the information contained in them in any form and by any means, subject to any specified conditions or exceptions.
The Commissioners may direct a person who is, or is liable to be, registered under this Part—
to keep such records as are specified in the direction;
to preserve those records for a specified period.
The period specified in a direction under subsection (3)(b) may not exceed 6 years.
The Commissioners may not give a direction under subsection (3) unless they have reasonable grounds for believing that the records specified in the direction might assist in identifying chargeable soft drinks in respect of which soft drinks industry levy might not be paid.
A direction under subsection (3)—
must be given in writing,
must specify the consequences under Schedule 9 of failure to comply with a requirement imposed under subsection (3), and
may be revoked or replaced by a further direction.
Schedule 9 makes provision about penalties for failure to comply with requirements imposed by regulations or directions under this section.
The Commissioners may by regulations make further provision about enforcement of soft drinks industry levy, including provision conferring powers of entry, search or seizure.
Regulations under this section may include provision—
conferring powers to enter and inspect premises that are used, or are reasonably believed to be used, in connection with the production, packaging, sale, import or export of chargeable soft drinks;
conferring powers to stop, board and search ships, aircraft and other vehicles entering, leaving or situated on premises referred to in paragraph (a);
conferring powers to inspect and take copies of business documents on premises referred to in paragraph (a);
conferring powers to examine and take samples of soft drinks found on premises referred to in paragraph (a);
for the detention and seizure of chargeable soft drinks in respect of which a specified requirement of this Part has been contravened;
requiring a person to provide such facilities as are reasonably necessary for an officer of Revenue and Customs to carry out an examination or search or exercise other powers conferred by the regulations;
about reviews of, and appeals against, decisions made for the purposes of the regulations.
Regulations under this section may, in particular, make provision by applying any provision of the Customs and Excise Management Act 1979.
Schedule 10 makes provision about appeals and reviews.
Schedule 11 contains supplementary amendments relating to administration and enforcement of soft drinks industry levy.
The Commissioners may by regulations make provision for the purposes of soft drinks industry levy in relation to cases where a person carries on a business of—
an individual who has died or become incapacitated;
a person (whether or not an individual) who is subject to an insolvency procedure (as defined in the regulations).
Regulations under this section may include—
provision requiring the person who is carrying on the business (P) to notify the Commissioners that P is carrying on the business and of the event that led to P carrying it on;
provision allowing P to be treated for a limited time as if P and the person who has died, become incapacitated or is subject to an insolvency procedure were the same person;
such other provision as the Commissioners think fit for securing continuity in the application of this Part in cases to which the regulations apply.
In section 1 of the Provisional Collection of Taxes Act 1968 (temporary statutory effect of House of Commons resolutions), in subsection (1), after “aggregates levy,” insert “ soft drinks industry levy, ”.
Subsections (2) and (3) apply if—
chargeable soft drinks are imported into the United Kingdom from the Isle of Man, and
a charge to soft drinks industry levy (the “corresponding charge”) arises in relation to the soft drinks under the law of the Isle of Man.
If the corresponding charge arises at a rate equal to, or greater than, the UK rate, the soft drinks are not to be treated as being imported into the United Kingdom for the purposes of section 33 (chargeable events: imported soft drinks).
If the corresponding charge arises at a rate lower than the UK rate, the amount of soft drinks industry levy charged under this Part in relation to the soft drinks is to be reduced by an amount equal to the corresponding charge.
In this section “the UK rate”, in relation to chargeable soft drinks, is the rate of soft drinks industry levy that would (apart from this section) be chargeable in relation to the soft drinks under this Part.
For the purposes of section 39(1)(a) (tax credits: exported soft drinks) or regulations made under that provision, chargeable soft drinks are not to be treated as being exported from the United Kingdom if the soft drinks are exported to the Isle of Man.
In this Part—
“prepared drink” has the meaning given by section 27(1);
The amendments made by paragraphs 1, 52(1)(a) and (2) and 60 of this Schedule have effect for the tax year 2017-18 and subsequent tax years. The amendments made by paragraphs 2 to 51, 52(1)(b) to (d), 53 to 59 and 61 of this Schedule have effect for the tax year 2017-18 and subsequent tax years. In relation to a benefit provided pursuant to pre-6 April 2017 arrangements, the amendment made by paragraph 49 has effect for the tax year 2018-19 and subsequent tax years. In relation to a benefit provided pursuant to pre-6 April 2017 arrangements, the amendments made by paragraphs 7 to 41, 52(1)(b) and (c), 53 and 61 (and paragraph 2, so far as relating to those paragraphs) have effect for the tax year 2021-22 and subsequent tax years. In relation to a benefit provided pursuant to pre-6 April 2017 arrangements, the amendments made by paragraphs 3 to 6, 42 to 48, 50, 51, 52(1)(d) and 54 to 59 (and paragraph 2, so far as relating to those paragraphs) have effect for the tax year 2018-19 and subsequent tax years (but see sub-paragraph (10)). If any terms of a pre-6 April 2017 arrangement which relate to the provision of a particular benefit are varied on or after 6 April 2017, that benefit is treated, with effect from the beginning of the day on which the variation takes effect, as not being provided pursuant to pre-6 April 2017 arrangements for the purposes of this paragraph. If pre-6 April 2017 arrangements are renewed on or after 6 April 2017, this paragraph has effect as if those arrangements were entered into at the beginning of the day on which the renewal takes effect (and are distinct from the arrangements existing immediately before that day). In sub-paragraph (6) the reference to variation does not include any variation which is required in connection with accidental damage to a benefit provided under the arrangements, or otherwise for reasons beyond the control of the parties to the arrangements. In sub-paragraph (6) the reference to variation does not include any variation which occurs in connection with a person's entitlement to statutory sick pay, statutory maternity pay, statutory adoption pay, statutory paternity pay , statutory shared parental pay or statutory parental bereavement pay. In relation to relevant school fee arrangements which were entered into before 6 April 2017— Relevant school fee arrangements to which an employee is a party (“the continuing arrangements”) are to be regarded for the purposes of this paragraph as the same arrangements as any relevant school fee arrangements to which the employee was previously a party (“the previous arrangements”) if the continuing arrangements and the previous arrangements relate— Sub-paragraphs (6) and (7) do not have effect in relation to relevant school fee arrangements. If a non-cash voucher is provided under pre-6 April 2017 arrangements and is used to obtain anything (whether money, goods or services) that is provided on or after 6 April 2018 (“delayed benefits”), so much of the benefit of the voucher as it is reasonable to regard as being applied to obtain the delayed benefits is to be treated for the purposes of this paragraph as not having been provided pursuant to pre-6 April 2017 arrangements. For the purposes of this paragraph arrangements are “relevant school fee arrangements” if the benefit mentioned in section 69A(1) of ITEPA 2003 consists in the payment or reimbursement (in whole or in part) of, or a waiver or reduction of, school fees. In this paragraph—
In Part 3 of ITEPA 2003 (employment income: earnings and benefits etc treated as earnings), in Chapter 2 (taxable benefits: the benefits code), after section 69 insert—
Section 395B (exemption or reduction for foreign service) is amended as follows. In subsection (1) (conditions for entitlement to exemption or reduction), after paragraph (c) insert—. In subsection (8) (meaning of “foreign service”), for “413(2)” substitute “395C”. The amendments made by this paragraph have effect for the tax year 2017-18 and subsequent tax years.
Part 4 of FA 2004 is further amended as follows.
Sub-paragraph (2) applies where it appears to the Commissioners— The Commissioners may— The following are “relevant defaults”—
An assessment under paragraph 2, 4 or 5 may not be made after the end of the relevant period. Except in a case within sub-paragraph (3), the relevant period is the period of 4 years from the end of the accounting period to which the assessment relates. Where an assessment of an amount due from a person is made in a case involving loss of soft drinks industry levy— the relevant period is the period of 20 years from the end of the accounting period to which the assessment relates. In sub-paragraph (3)(a) the reference to loss brought about deliberately by a person includes a reference to a loss brought about as a result of the deliberate inaccuracy in a document given to HMRC by the person. In sub-paragraphs (3) and (4) references to a loss brought about by a person include references to a loss brought about by another person acting on behalf of that person.
After section 395B insert—
Section 169 (recognised transfers, and definition and obligations of a QROPS) is amended as follows. In subsection (2) (what makes a recognised overseas pension scheme a QROPS), after paragraph (b) insert—. After subsection (2) insert— After subsection (4) insert— In subsection (4A) (inclusion of supplementary provision in regulations under subsection (4)), after “(4)” insert “or (4ZA)”. After subsection (4B) insert— After subsection (7) insert— In subsection (8) (interpretation)—
Sub-paragraph (2) applies where— The Commissioners may, if they consider it appropriate in the light of the absence of a return for the earlier period, specify in the later assessment an amount of soft drinks industry levy due that is greater than the amount that they would have considered to be appropriate had they had regard only to the later period.
In section 554Z4 (treatment of relevant step: residence issues), after subsection (6) insert—
After Chapter 5 insert—
Sub-paragraph (2) applies where it appears to the Commissioners that— The Commissioners may—
In section 254(6) (regulations about accounting for tax by scheme administrators), after paragraph (b) insert—.
In section 255(1) (power to make provision for assessments), after paragraph (d) insert—.
In section 269(1)(a) (appeal against decision on discharge of liability), before “section 267(2)” insert “section 244N (discharge of liability to overseas transfer charge),”.
In Schedule 32 (benefit crystallisation events: supplementary provision), after paragraph 2 insert—
“prepared drink” has the meaning given by section 27(1);
HMRC must review a decision if— But P may not notify acceptance of the offer if P has already appealed to the appeal tribunal under paragraph 1. HMRC must review a decision if a person other than P notifies them under paragraph 3. HMRC may not review a decision if P, or another person, has appealed to the appeal tribunal under paragraph 1 in respect of the decision.
This paragraph applies if HMRC are required to undertake a review under paragraph 4 or 6. The nature and extent of the review are to be such as appear appropriate to HMRC in the circumstances. For the purposes of sub-paragraph (2), HMRC must, in particular, have regard to steps taken before the beginning of the review— The review must take account of any representations made by P, or the other person, at a stage which gives HMRC a reasonable opportunity to consider them. The review may conclude that the decision is to be— HMRC must give P, or the other person, notice of the conclusions of the review and their reasoning within— In sub-paragraph (6) “relevant date” means— Where HMRC are required to undertake a review but do not give notice of the conclusions within the period specified in sub-paragraph (6), the review is to be treated as having concluded that the decision is upheld. If sub-paragraph (8) applies HMRC must notify P, or the other person, of the conclusion which the review is treated as having reached.
An appeal under paragraph 1 is to be made to the appeal tribunal before— But that is subject to sub-paragraphs (3) to (5). In a case where HMRC are required to undertake a review under paragraph 4— In a case where HMRC are requested to undertake a review by virtue of paragraph 6— In a case where paragraph 7(8) applies, an appeal may be made at any time from the end of the period specified in paragraph 7(6) to the date 30 days after the conclusion date. An appeal may be made after the end of the period specified in sub-paragraph (1), (3)(b), (4)(b) or (5) if the appeal tribunal gives permission to do so. In this paragraph “conclusion date” means the date of the document notifying the conclusions of the review.
After section 554R insert—
Section 62 of VATA 1994 (incorrect certificates as to zero-rating etc) is amended as follows. After subsection (1A) insert— In subsection (2), at the end insert—
A notice of an assessment under paragraph 2, 5, 12 or 13 given to a person’s representative is to be treated for the purposes of this Schedule as a notice given to the person in relation to whom the representative acts. In sub-paragraph (1), “representative”, in relation to a person, means—
A person who fails to comply with a requirement imposed under section 53(2)(a) is liable to a penalty. The amount of the penalty is equal to £200 multiplied by the number of days on which the failure continues (up to a maximum of 30 days). A person who fails to comply with a requirement imposed under section 53(3)(b) is liable to a penalty of £500. If by reason of conduct falling within sub-paragraph (1) or (3) a person is assessed to a penalty for a deliberate inaccuracy under Schedule 24 to FA 2007, that conduct does not also give rise to a penalty under this paragraph.
In this Schedule “appeal tribunal” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal.
On an appeal against a decision mentioned in paragraph 1(a) or (c) to (e), the appeal tribunal may affirm or cancel the decision.
On an appeal against a decision mentioned in paragraph 1(f) to (j), the appeal tribunal may—
affirm the decision, or
substitute for that decision another decision that the Commissioners had power to make.
Subject to paragraph 15, on an appeal against a decision mentioned in paragraph 1(b) or (k) to (o), the appeal tribunal may—
affirm or cancel the decision;
substitute for that decision another decision that the Commissioners, or (as the case may be) an officer of Revenue and Customs had power to make;
vary the decision;
direct that the decision, so far as it remains in force, is to cease to have effect from such time as the tribunal may direct;
require HMRC to conduct a review, or a further review, of the decision.
On an appeal against a decision mentioned in paragraph 1(k), (n) or (o), the appeal tribunal may allow the appeal only if it considers that— Where sub-paragraph (1) applies in relation to a decision mentioned in paragraph 1(o) (giving of a direction), the direction has effect pending the determination of the appeal.
“relevant person” has the meaning given by section 33(5);
Part 3 of ITEPA 2003 (employment income: earnings and benefits in kind etc treated as earnings) is amended as follows.
Omit section 575(2) of ITEPA 2003 (foreign pensions received by UK residents: taxable amount is 90% of actual amount). Omit section 613(3) of ITEPA 2003 (annuities from non-UK sources: taxable amount is 90% of actual amount). Omit section 635(3) of ITEPA 2003 (foreign voluntary annual payments: taxable amount is 90% of actual amount). In consequence— In sections 613(5) and 635(5) of ITEPA 2003 (application of section 839 of ITTOIA 2005 in certain cases), for “condition B” substitute “ conditions B1 and B2 (and the reference to them in subsection (1)) ”. The amendments made by this paragraph have effect for the tax year 2017-18 and subsequent tax years, subject to sub-paragraph (7). The amendments in section 575 of ITEPA 2003, so far as they relate to relevant withdrawals, have effect in relation to relevant withdrawals paid in or after the tax year 2017-18; and here “relevant withdrawal” has the meaning given by section 576A of ITEPA 2003.
In section 874(3)(a) of ITA 2007 (which refers to provisions which disapply the duty under section 874 to deduct tax from yearly interest), for “888” substitute “888E”.
Where an amount has been assessed and notified to a person under paragraph 5 or 6, it is recoverable on the basis that it is an amount of soft drinks industry levy due from that person. But sub-paragraph (1) does not have effect if, or to the extent that, the assessment has been withdrawn or reduced.
Section 81 (benefit of cash voucher treated as earnings) is amended as follows. After subsection (1) insert— At the end insert—
After section 87 insert—
In section 88 (year in which earnings treated as received)—
in subsection (1), after “87” insert “ or 87A ”;
in subsection (2), after “87” insert “ or 87A ”.
After section 94 insert—
In section 97 (living accommodation to which Chapter 5 applies), in subsection (1A)(b), for “the cash equivalent of” substitute “ an amount in respect of ”.
In section 98 (accommodation provided by local authority), in the words before paragraph (a), for “This Chapter” substitute “ In section 102 (benefit of accommodation treated as earnings) subsection (1A) (accommodation provided otherwise than pursuant to optional remuneration arrangements) ”.
Section 99 (accommodation provided for performance of duties) is amended as follows. In subsection (1), for “This Chapter” substitute “ In section 102 (benefit of accommodation treated as earnings) subsection (1A) (accommodation provided otherwise than pursuant to optional remuneration arrangements) ”. In subsection (2), for “This Chapter” substitute “ In section 102 (benefit of accommodation treated as earnings) subsection (1A) ”.
In section 100 (accommodation provided as result of security threat), in the words before paragraph (a), for “This Chapter” substitute “ In section 102 (benefit of accommodation treated as earnings) subsection (1A) (accommodation provided otherwise than pursuant to optional remuneration arrangements) ”.
In section 100A (homes outside UK owned by company etc), in subsection (1), for “This Chapter” substitute “ In section 102 (benefit of accommodation treated as earnings) subsection (1A) (accommodation provided otherwise than pursuant to optional remuneration arrangements) ”.
In section 101 (Chevening House), in the words before paragraph (a), for “This Chapter” substitute “ In section 102 (benefit of accommodation treated as earnings) subsection (1A) (accommodation provided otherwise than pursuant to optional remuneration arrangements) ”.
Section 102 (benefit of living accommodation treated as earnings) is amended as follows. In subsection (1), for the words before paragraph (a) substitute “ This section applies if living accommodation to which this Chapter applies is provided in any period (“the taxable period”)— ”. The words in subsection (1) from “the cash equivalent” to the end become subsection (1A). After subsection (1A) insert— Omit subsection (2). At the end insert—
In section 103 (method of calculating cash equivalent), in subsection (3), for “102(2)” substitute “ 102(1) ”.
After section 103 insert—
Section 105 (cash equivalent: cost of accommodation not over £75,000) is amended as follows. In subsection (1), after “equivalent” insert “ or modified cash equivalent ”. After subsection (2) insert—
Section 106 (cash equivalent: cost of accommodation over £75,000) is amended as follows. In subsection (1), after “equivalent” insert “ or modified cash equivalent ”. After subsection (2) insert—
Section 109 (priority of Chapter 5 over Chapter 1 of Part 3 of the Act) is amended as follows. In subsection (1)(a), for “the cash equivalent of the benefit of living accommodation” substitute “ an amount ”. In subsection (2), for “of the cash equivalent” substitute “ mentioned in subsection (1)(a) ”. In subsection (4), in the words before paragraph (a), for “cash equivalent of the benefit of the living accommodation” substitute “ amount mentioned in subsection (1)(a) ”.
In section 114 (cars, vans and related benefits), in subsection (2)—
in paragraph (a), for “the cash equivalent of” substitute “ an amount in respect of ”;
in paragraph (b), for “the cash equivalent of” substitute “ an amount in respect of ”;
in paragraph (c), for “the cash equivalent of” substitute “ an amount in respect of ”;
in paragraph (d), for “the cash equivalent of” substitute “ an amount in respect of ”.
Section 119 (where alternative to benefit of car or van offered) is amended as follows. For subsection (1) substitute— In the heading, before “car” insert “ low emission ”.
In section 120 (benefit of car treated as earnings), after subsection (3) insert—
After section 120 insert—
After section 121 insert—
In section 126 (amounts taken into account in respect of accessories), in subsection (1), in the words before paragraph (a), after “121(1)” insert “ and step 2 of section 121B(1) ”.
Section 131 (replacement accessories) is amended as follows. In subsection (1), in the words before paragraph (a), after “applies” insert “ for the purposes of sections 121(1) and 121B(1) ”. After subsection (1) insert—
In section 132 (capital contributions by employee), in subsection (1), in the words before paragraph (a), after “applies” insert “ for the purposes of section 121(1) ”.
After section 132 insert—
Section 143 (deduction for periods when car unavailable) is amended as follows. Before subsection (1) insert— In subsection (1), after “121(1)” insert “ or (as the case may be) step 4 of section 121B(1) ”. In subsection (3), in the definition of “A”, at the end insert “ of section 121(1) or (as the case may be) step 4 of section 121B(1) ”.
Section 144 (deduction for payments for private use) is amended as follows. In subsection (1), for “calculated under step 7 of section 121(1)” substitute “ (see subsection (1A)) ”. After subsection (1) insert In subsection (2), for the words from “so that” to the end substituteso that— In subsection (3)—
Section 145 (modification of provisions where car temporarily replaced) is amended as follows. In subsection (1), for paragraph (c) substitute— After subsection (5) insert—
Section 146 (cars that run on road fuel gas) is amended as follows. In subsection (1), in the words before paragraph (a), after “applies” insert “ for the purposes of sections 121 and 121B ”. In subsection (2), after “121(1)” insert “ or (as the case may be) step 1 of section 121B(1) ”.
After section 147 insert—
Section 148 (reduction of cash equivalent where car is shared) is amended as follows. In subsection (1)— For subsection (2) substitute— In subsection (2A), at the beginning insert “ In the case of an employee chargeable to tax in respect of the car by virtue of section 120 ”. After subsection (2A) insert—
In section 149 (benefit of car fuel treated as earnings), in subsection (1)(b), at the end insert “ or 120A ”.
After section 149 insert—
In section 154 (benefit of van treated as earnings), after subsection (3) insert—
After section 154 insert—
After section 158 insert—
Section 160 (benefit of van fuel treated as earnings) is amended as follows. In subsection (1)(b), after “154” insert “ or 154A ”. At the end insert—
After section 160 insert—
In section 170 (orders etc relating to Chapter 6 of Part 3), in subsection (1)—
after paragraph (c) insert—;
omit “or” at the end of paragraph (d);
after paragraph (e) insert, or
In section 173 (loans to which Chapter 7 applies), in subsection (1A)(b), for the words from “provide” to the end substitute “ make provision about amounts which, in the case of a taxable cheap loan, are to be treated as earnings in certain circumstances ”.
In section 175 (benefit of taxable cheap loan treated as earnings), for subsection (1) substitute—
After section 175 insert—
In section 180 (threshold for benefit of loan to be treated as earnings), in subsection (1), for the words before paragraph (a) substitute “ Section 175 does not have effect in relation to an employee and a tax year— ”.
In section 184 (interest treated as paid), in subsection (1), for the words from “the cash equivalent” to the end substitute—
In section 202 (excluded benefits), after subsection (1) insert—
After section 203 insert—
In sections 30, 34, 52, 53(1) and (2) and 54 and in paragraph 11 of Schedule 8, “specified” means specified in regulations made by the Commissioners for the purposes of this Part.
In the definition of “sugars” in subsection (1), “designated food labelling obligation” means an obligation that—
relates to the provision of nutritional information on the packaging of food or drinks,
is imposed by an enactment, an EU instrument or subordinate legislation, and
is designated by regulations made by the Commissioners for the purposes of this Part.
Section 1122 of CTA 2010 (meaning of connected person) applies for the purposes of this Part.
For the purposes of this Part, a person “packages” chargeable soft drinks if—
the person packages soft drinks, and
the packaged soft drinks are chargeable soft drinks.
Regulations under this Part—
may make different provision for different purposes;
may include incidental, consequential, supplementary or transitional provision.
Regulations under this Part are to be made by statutory instrument.
A statutory instrument containing regulations under section 54 may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons.
Any other statutory instrument containing regulations under this Part is subject to annulment in pursuance of a resolution of the House of Commons.
But subsection (4) does not apply to a statutory instrument containing only regulations under section 61 (commencement of this Part).
Subject to subsection (2), this Part comes into force on such day as the Commissioners may by regulations appoint.
The amendment made by paragraph 3 of Schedule 11 comes into force in accordance with provision made by the Treasury by regulations.
Regulations under this section may appoint different days for different purposes.
In this Act the following abbreviations are references to the following Acts. ALDA 1979 Alcoholic Liquor Duties Act 1979 CAA 2001 Capital Allowances Act 2001 CTA 2009 Corporation Tax Act 2009 CTA 2010 Corporation Tax Act 2010 FA, followed by a year Finance Act of that year ICTA Income and Corporation Taxes Act 1988 IHTA 1984 Inheritance Tax Act 1984 ITA 2007 Income Tax Act 2007 ITEPA 2003 Income Tax (Earnings and Pensions) Act 2003 ITTOIA 2005 Income Tax (Trading and Other Income) Act 2005 TCGA 1992 Taxation of Chargeable Gains Act 1992 TMA 1970 Taxes Management Act 1970 TPDA 1979 Tobacco Products Duty Act 1979 VATA 1994 Value Added Tax Act 1994 VERA 1994 Vehicle Excise and Registration Act 1994
This Act may be cited as the Finance Act 2017.
Section 6
ITEPA 2003 is amended as follows.
In section 48 (scope of Chapter 8 of Part 2: workers' services provided through intermediaries)—
in subsection (1), after “through an intermediary” insert “ , but not where the services are provided to a public authority ”, and
after subsection (2) insert—
In section 49(1) (engagements to which Chapter applies), after paragraph (a) insert—.
In section 52(2)(b) and (c) (conditions of liability under Chapter 8 where intermediary is a partnership), for “this Chapter” substitute “ one or other of this Chapter and Chapter 10 ”.
“engagement to which Chapter 10 applies” has the meaning given by section 61M(5);
In section 61A (scope of Chapter 9 of Part 2: workers' services provided by managed service companies), after subsection (2) insert—
In section 61D (deemed earnings where worker's services provided by managed service company), after subsection (4) insert—
“engagement to which Chapter 10 applies” has the meaning given by section 61M(5),
In Part 2 of ITEPA 2003 (employment income: charge to tax), after Chapter 9 insert—
In section 7(5)(a) of ITEPA 2003 (amounts treated as earnings by Chapters 7 to 9 of Part 2 are “employment income” and “general earnings”), for “9” substitute “ 10 ”.
In section 49 of ITEPA 2003 (engagements to which Chapter 8 of Part 2 applies), after subsection (4) insert—
In section 339A of ITEPA 2003 (travel for employment involving intermediaries), after subsection (6) insert—
In Chapter 11 of Part 2 of ITTOIA 2005 (trade profits: specific trades), after section 164A insert—
In Chapter 9 of Part 3 of CTA 2009 (trade profits: specific trades), after section 141 insert—
The amendments made in ITEPA 2003 by Parts 1 and 3 of this Schedule have effect for the tax year 2017-18 and subsequent tax years.
The amendment made by Part 2 of this Schedule has effect in relation to deemed direct payments treated as made on or after 6 April 2017, and does so even if relating to services provided before that date.
The payments to which the amendments made in ITTOIA 2005 and CTA 2009 by Part 3 of this Schedule apply include payments made before the passing of this Act.
Section 7
In Part 4 of ITEPA 2003 (employment income: exemptions), after section 228 insert—
Part 7A of ITEPA 2003 (employment income provided through third parties) is amended in accordance with paragraphs 2 to 11.
Schedule 41 to FA 2008 (penalties: failure to notify etc.) is amended as follows. Soft drinks industry levy Obligation under section 44 of FA 2017 (obligation to give notice of liability to be registered). In the heading before paragraph 4, at the end insert “etc”. A penalty is payable by a person (P) where— In that paragraph, in sub-paragraph (2)— In paragraph 5(4), after “deferred” insert “or (as the case may be) chargeable soft drinks in respect of which a payment of soft drinks industry levy is due and payable and has not been paid”. In paragraph 10, after “deferred” insert “or (as the case may be) chargeable soft drinks in respect of which a payment of soft drinks industry levy is due and payable and has not been paid”. In paragraph 11(2)(d), after “deferred” insert “or (as the case may be) chargeable soft drinks in respect of which a payment of soft drinks industry levy is due and payable and has not been paid”. In paragraph 21—
Section 19 of ITEPA 2003 (receipt of non-money earnings) is amended as follows. In subsection (2), after “94” insert “ or 94A ”. In subsection (3), after “87” insert “ or 87A ”.
Sub-paragraph (2) applies where— The Commissioners may—
A notice of an assessment under paragraph 5 or 6 given to a person’s representative is to be treated for the purposes of this Schedule as a notice given to the person in relation to whom the representative acts. In this paragraph “representative”, in relation to a person, has the meaning given by paragraph 16(2) of Schedule 8.
HMRC must offer a person (P) a review of a decision that has been notified to P if an appeal in respect of the decision may be brought under paragraph 1. The offer of the review must be made by notice given to P at the same time as the decision is notified to P. This paragraph does not apply to the notification of the conclusions of a review.
If under paragraph 2 HMRC have offered P a review of a decision, HMRC may within the relevant period notify P that the relevant period is extended. If under paragraph 3 another person may require HMRC to review a matter, HMRC may within the relevant period notify the other person that the relevant period is extended. If notice is given the relevant period is extended to the end of 30 days from— In this paragraph “relevant period” means—
A notice under this Schedule may be given to a person by sending it to that person by post, addressed to the person’s last known address.
In section 95 of ITEPA 2003 (disregard for money, goods or services obtained), in subsection (1), in the words before paragraph (a), after “credit-token” insert “ or the relevant amount in respect of a cash voucher, a non-cash voucher or a credit-token ”.
A notice under this Schedule may be given to a person by sending it to that person by post, addressed to the person’s last known address.
In section 236 of ITEPA 2003 (interpretation of Chapter 2 of Part 4: exemptions for mileage allowance relief etc), in subsection (2)(b)— In section 236 of ITEPA 2003 (interpretation of Chapter 2 of Part 4), in subsection (2)(c), for “the cash equivalent of” substitute “ an amount in respect of ”.
Section 239 of ITEPA 2003 (payments and benefits connected with taxable cars and vans etc) is amended as follows. In subsection (3)— In subsection (6), for “the cash equivalent of” substitute “ an amount (whether the cash equivalent or the relevant amount) in respect of ”.
In section 362 of ITEPA 2003 (deductions where non-cash voucher provided), in subsection (1)(a), for “87(1) (cash equivalent” substitute “ 87(1) or 87A(1) (amount in respect ”.
In section 318A of ITEPA 2003 (childcare: limited exemption for other care), in subsection (1)(b), for “cash equivalent of the benefit” substitute “ amount treated as earnings in respect of the benefit by virtue of section 203(1) or 203A(1) (as the case may be) ”.
In section 363 of ITEPA 2003 (deductions where credit-token provided), in subsection (1)(a), for “94(1) (cash equivalent” substitute “ 94(1) or 94A(1) (amount in respect ”.
In section 693 of ITEPA 2003 (cash vouchers), in subsection (1), for “section 81(2)” substitute “ subsection (2) of, or (as the case may be) referred to in subsection (1A)(b) of, section 81 ”.
In section 694 of ITEPA 2003 (non-cash vouchers), in subsection (1), after “87(2)” insert “ or 87A(4) ”.
In section 695 of ITEPA 2003 (benefit of credit-token treated as earnings), after subsection (1) insert—
amount foregone (in relation to a benefit) (in the benefits code) section 69B optional remuneration arrangements (in the benefits code) section 69A
In Part 2 of Schedule 1 to ITEPA 2003 (index of defined expressions), in the entry relating to “the taxable period”, for “102(2)” substitute “ 102(1) ”.
Section 9
In Chapter 5A of Part 4 of FA 2004 (registered pension schemes established outside the UK), after section 242B (inserted by Schedule 4 to this Act) insert— The amendment made by this paragraph has effect for the tax year 2017-18 and subsequent tax years.
Section 615 of ICTA (trust funds for pensions in respect of employment outside UK) is amended as follows. In subsection (6)— After subsection (6) insert— In subsection (7)— After subsection (10) insert— The amendments made by this paragraph are to be treated as having come into force on 6 April 2017.
The new sections 888B to 888D of ITA 2007, and the repeal of section 45(2)(c) of FA 2009, have effect in relation to amounts treated as payments of yearly interest made on or after 6 April 2017. The new section 888E of ITA 2007 has effect in relation to payments of interest made on or after 6 April 2017.
Section 554C (relevant steps: payment of sum, transfer of asset etc.) is amended as follows. In subsection (1), after paragraph (a) insert— After subsection (3) insert—
For section 554Z5 (overlap with earlier relevant step) substitute—
Sub-paragraph (2) applies where— The Commissioners may—
In section 554A(4) (non-application of Chapter 2 where relevant step taken on or after A’s death)—
omit “within section 554B”, and
at the end insert if—
After section 554Z11A insert—
After section 554O insert—
In section 554Z(10)(b) (interpretation: relevant step which involves a sum of money), after “section 554C(1)(a)” insert “to (ab)”.
In section 554Z12(1) (relevant step taken after A’s death etc.), after “554C” insert “, by virtue of subsection (1)(a) or (b) to (e) of that section,”.
ITEPA 2003 is amended as follows.
The Commissioners may by regulations make provision for reimbursement arrangements to be disregarded for the purposes of paragraph 9(2) except where the arrangements— In this paragraph “reimbursement arrangements” means arrangements for the purposes of a claim to a repayment of soft drinks industry levy which— Regulations under this paragraph may include provision requiring reimbursement arrangements to contain provision— Regulations under this paragraph may—
Where an amount has been assessed and notified to a person under paragraph 12 or 13, it is recoverable on the basis that it is an amount of soft drinks industry levy due from that person. But sub-paragraph (1) does not have effect if, or to the extent that, the assessment has been withdrawn or reduced.
A notice under this Schedule may be given to a person by sending it to that person by post, addressed to the person’s last known address.
Any person (other than P) who has the right of appeal under paragraph 1 against a decision may require HMRC to review that decision if that person has not appealed to the appeal tribunal. A notification that such a person requires a review must be made within 30 days of that person becoming aware of the decision.
This paragraph applies if— HMRC must review the decision under paragraph 4 if— HMRC may not review a decision if P, or another person, has appealed to the appeal tribunal under paragraph 1 in respect of the decision.
An appeal relating to a decision that an amount of soft drinks industry levy is due from a person may not be considered by the appeal tribunal unless the amount which HMRC have determined to be due has been paid or deposited with them. In a case where the amount determined to be payable as soft drinks industry levy has not been paid or deposited an appeal may be considered— that the requirement to pay or deposit the amount determined would cause the appellant to suffer hardship. Notwithstanding the provisions of sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007 (rights of appeal) the decision of the appeal tribunal as to the issue of hardship is final.
In section 573 (foreign pensions), after subsection (3) insert—
In Part 4 of FA 2004 (pension schemes etc), after section 244 insert—
In section 574(1) (foreign pensions: meaning of “pension”), after paragraph (a) insert—.
After section 574 insert— The amendment made by this paragraph has effect in relation to lump sums paid on or after 6 April 2017.
In section 576A (temporary non-residents), as it applies where the year of departure is the tax year 2013-14 or a later tax year, after subsection (4) insert—. The amendment made by this paragraph applies in relation to relevant withdrawals on or after 6 April 2017.
In section 576A, as it applies where the year of departure is the tax year 2012-13 or an earlier tax year, after subsection (4A) insert— The amendment made by this paragraph applies in relation to relevant withdrawals on or after 6 April 2017.
In section 393B(2)(a) (tax on benefits under employer-financed retirement benefit schemes: “relevant benefits” do not include benefits charged to tax under Part 9), after “646E” insert “or any deductions under section 574A(3)”. The amendment made by this paragraph has effect in relation to benefits by way of lump sums paid on or after 6 April 2017.
In section 9(1A) of TMA 1970 (tax not within the scope of self-assessment), after paragraph (a) insert—.
This paragraph applies where a person (P) has paid an amount to the Commissioners by way of soft drinks industry levy which was not levy due. The Commissioners are liable, on the making of a claim by P, to repay the amount. The Commissioners may by regulations make provision about— Except as provided by this paragraph, the Commissioners are not liable to repay any amount paid by way of soft drinks industry levy by reason of the fact that it was not levy due. This paragraph is subject to paragraph 9.
Sub-paragraph (3) applies where— Sub-paragraph (3) also applies where a person is liable to pay any amount to the Commissioners in pursuance of an obligation imposed by regulations under paragraph 11(3)(b), (c) or (e). The Commissioners may— Subject to sub-paragraph (5), where— the assessments may be combined and notified to the person as one assessment. A notice of a combined assessment under sub-paragraph (4) must separately identify the amount being assessed in respect of repayments of soft drinks industry levy.
An assessment under paragraph 12 or 13 may not be made more than 2 years after evidence of facts sufficient in the opinion of the Commissioners to justify making the assessment comes to their knowledge.
In Schedule 56 to FA 2009 (penalty for failure to make payments on time), in the Table in paragraph 1, after the entry for item 3 insert— 3A Income tax Amount payable under regulations under section 244L(2)(a) of FA 2004 The date falling 30 days after the due date determined by or under the regulations
Charge under section 244A (overseas transfer charge). The name, date of birth and national insurance number of each individual in whose case a transfer results in the scheme administrator becoming liable to the overseas transfer charge. The date, and transferred value, of each transfer. The reference number of the qualifying recognised overseas pension scheme to which each transfer is made. The amount of tax due in respect of each transfer. In those Regulations, after regulation 13 insert— The amendment made by sub-paragraph (1) is to be treated as having been made by the Commissioners for Her Majesty’s Revenue and Customs under the applicable powers to make regulations conferred by section 254 of FA 2004. The amendment made by sub-paragraph (2) is to be treated as having been made by the Commissioners for Her Majesty’s Revenue and Customs under the powers to make regulations conferred by section 244M(7) of FA 2004.
The Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 (S.I. 2006/208) are amended as follows. In regulation 1(2) (interpretation), after the definition of “HMRC” insert—. In regulation 3(2) (duty to provide information to HMRC)— In regulation 3, after paragraph (2) insert— In regulation 3(3)(a) (reporting duty under regulation 3(2) expires after 10 years from creation of relevant transfer fund), after “beginning” insert — In regulation 3, after paragraph (3) insert— In regulation 3(6), in the definition of “relevant member”, after “relevant transfer fund” insert “or any ring-fenced transfer fund”. after the date of the relevant event concerned. In regulation 3AC— In regulation 3AD— After regulation 3AD insert— In regulation 3B (information on cessation of a QROPS), after “relevant transfer fund”, in both places, insert “, or ring-fenced transfer fund,”. In regulation 3C (correction of information)— In regulation 5(1) (application of provisions providing for penalties)— The amendments made by this paragraph—
The Registered Pension Schemes (Transfers of Sums and Assets) Regulations 2006 (S.I. 2006/499) are amended as follows. In regulation 5, the existing text becomes paragraph (1). After that paragraph insert— The amendments made by this paragraph are to be treated as made by the Commissioners for Her Majesty’s Customs and Revenue under the powers to make regulations conferred by paragraph 2(4)(h) of Schedule 28 to FA 2004.
The Registered Pension Schemes (Provision of Information) Regulations 2006 (S.I. 2006/567) are amended as follows. In regulation 3(1) (provision of information by scheme administrators to HMRC), in column 2 of the entry in the Table for reportable event 9— In regulation 3(7) (deadline for event report for reportable event 9), at the end insert “but, if the scheme administrator applies before the end of those 60 days for a repayment of overseas transfer charge on the transfer, the report must be delivered before the administrator applies for the repayment. In regulation 11BA(2) (information about transfer to be provided by member to scheme administrator)— After regulation 11BA insert— After regulation 12 insert— After regulation 14ZC insert— The amendments made by this paragraph are to be treated as made by the Commissioners for Her Majesty’s Revenue and Customs under the applicable powers to make regulations conferred by section 251 of FA 2004.
Section 10
Schedule 34 to FA 2004 (non-UK pension schemes: application of certain charges) is amended as follows.
Paragraph 1 (application of member payment charges to relevant non-UK schemes) is amended as follows. There are three types of relevant transfer— “An original relevant transfer” is— The sums or assets transferred as a result of an original relevant transfer constitute a ring-fenced transfer fund, and the key date for that fund is the date of the transfer. Where in the case of a ring-fenced transfer fund (“the source fund”) there is a relevant transfer of the whole or part of the fund— Sub-paragraph (6D) applies whether the source fund is a ring-fenced transfer fund as a result of sub-paragraph (6C) or as a result of sub-paragraph (6D). The Commissioners for Her Majesty’s Revenue and Customs may by regulations provide that sums or assets identified in accordance with the regulations are not included in a ring-fenced transfer fund as a result of sub-paragraph (6C) or (6D)(a).
Paragraph 2 (member payment provisions apply to payments out of non-UK schemes if member is UK resident or has been UK resident in any of the preceding 5 tax years) is amended as follows. The existing text becomes sub-paragraph (1). In that sub-paragraph, after “scheme” insert “so far as it is referable to 5-year rule funds”. The member payment provisions do not apply in relation to a payment made (or treated by this Part as made) to or in respect of a relieved member of a relevant non-UK scheme so far as it is referable to 10-year rule funds unless the member— The member payment provisions do not apply in relation to a payment made (or treated by this Part as made) to or in respect of a transfer member of a relevant non-UK scheme, so far as it is referable to any particular ring-fenced transfer fund of the member’s under the scheme which has a key date of 6 April 2017 or later, unless— In this paragraph— See also— paragraph 1(6C), (6D) and (6F) (meaning of “ring-fenced transfer fund”), paragraph 3 (meaning of “UK tax-relieved fund”, “tax-relieved contributions” and “tax-exempt provision” etc), and paragraph 4 (meaning of “relevant transfer fund” etc).
Paragraph 3 (payments to or in respect of relieved members of schemes) is amended as follows. The Commissioners for Her Majesty’s Revenue and Customs may by regulations provide that, in circumstances specified in the regulations, something specified in the regulations is to be treated as done by, to, in respect of or in the case of a relieved member of a relevant non-UK scheme. In sub-paragraph (6) (power to specify whether payments by scheme are referable to UK tax-relieved fund), after “payments made (or treated as made) by” insert “, or other things done by or to or under or in respect of or in the case of,”. Where regulations under sub-paragraph (6) make provision for a payment or something else to be treated as referable to a member’s UK tax-relieved fund under a scheme, regulations under that sub-paragraph may make provision for the payment or thing, or any part or aspect of the payment or thing, also to be treated as referable to a particular part of that fund.
Paragraph 4 (payments to or in respect of transfer members of schemes) is amended as follows. In sub-paragraph (1), after “relevant transfer fund” insert “, or ring-fenced transfer funds,”. In sub-paragraph (2) (meaning of “relevant transfer fund”), before “so much of” insert “, subject to sub-paragraph (3A),”. After sub-paragraph (3) insert— In sub-paragraph (4) (power to specify whether payments by scheme are referable to relevant transfer fund), after “payments or transfers made (or treated as made) by” insert “, or other things done by or to or under or in respect of or in the case of,”. The Commissioners for Her Majesty’s Revenue and Customs may by regulations provide that, in circumstances specified in the regulations, something specified in the regulations is to be treated as done by, to, in respect of or in the case of a transfer member of a relevant non-UK scheme. Regulations made by the Commissioners for Her Majesty’s Revenue and Customs may make provision for determining whether payments or transfers made (or treated as made) by, or other things done by or to or under or in respect of or in the case of, a relevant non-UK scheme are to be treated as referable to a member’s ring-fenced transfer funds under the scheme (and so whether or not they reduce the funds or any of them). Where regulations under sub-paragraph (6) make provision for a payment or transfer or something else to be treated as referable to a member’s ring-fenced transfer funds under a scheme, regulations under that sub-paragraph may make provision for the payment or transfer or other thing, or any part or aspect of the payment or transfer or thing, also to be treated as referable to a particular one of those funds.
In paragraph 7(2)(c) (regulations about application of member payment provisions), after “relevant transfer fund” insert “or ring-fenced transfer funds”.
Paragraph 9ZB (application of section 227G) is amended as follows. In sub-paragraph (2), after “relevant transfer fund” insert “or ring-fenced transfer funds”. The reference in sub-paragraph (2) to the individual’s ring-fenced transfer funds under the relevant non-UK scheme is to be read in accordance with paragraph 1.
The amendments made by paragraph 3 apply in relation to payments made (or treated as made) on or after 6 April 2017, and the amendments made by paragraphs 2 and 4 to 7 come into force on 9 March 2017.
“produce”, in relation to chargeable soft drinks, is to be construed in accordance with section 37(2);
Section 576A of ITEPA 2003, as it applies where the year of departure is the tax year 2013-14 or a later tax year, is amended as follows. In subsection (6)(b) (pension income: temporary non-residents: non-application where payment not referable to relevant transfer fund)— In subsection (10) (interpretation), at the end insert— The amendments made by this paragraph apply in relation to relevant withdrawals on or after 6 April 2017.
Paragraph 59 of Schedule 2 to FA 2011 (transitional provision relating to Part 7A of ITEPA 2003) is amended as follows. In sub-paragraph (1)(f), after “554Z4” insert “and 554Z6”. In the opening words of sub-paragraph (2), after “554Z4” insert “and 554Z6”.
In Schedule 8 to VATA 1994, in Group 12—
omit Note (5L), and
For the purposes of Notes (5N) to (5S), the supply of a motor vehicle is a “relevant supply” if it is a supply of goods (which is made in the United Kingdom). In the case of a relevant supply of a motor vehicle to a disabled person (“the new supply”), items 2(f) and 2A do not apply if, in the period of 3 years ending with the day on which the motor vehicle is made available to the disabled person— If a relevant supply of a motor vehicle is made to a disabled person and— the reckonable zero-rated supply or (as the case may be) reckonable zero-rated importation or acquisition is treated for the purposes of Note (5N) as not having been made if either of the conditions in Note (5P) is met. The conditions mentioned in Note (5O) are that— In the case of a relevant supply of a motor vehicle to a disabled person, items 2(f) and 2A cannot apply unless the supplier— In the case of a relevant supply of a motor vehicle to a disabled person, items 2(f) and 2A cannot apply unless, before the supply is made, the person making the supply has been given a certificate in the required form which— The information that may be required under Note (5Q)(a) includes— (and the matters that may be required under Note (5R)(b) include any information that may be required for the purposes of Note (5Q)). In Notes (5N) to (5S)— In items 2A and 2B references to design, or adaptation, of a motor vehicle to enable a person (or a person of any description) to travel in it are to be read as including a reference to design or, as the case may be, adaptation of the motor vehicle to enable the person (or persons of that description) to drive it.
The amendments made by this Schedule have effect in relation to supplies made, and acquisitions and importations taking place, on or after 1 April 2017.
A person may appeal against a decision of the Commissioners or an officer of Revenue and Customs in respect of any of the following matters—
whether or not a person is liable to pay an amount of soft drinks industry levy;
whether or not the Commissioners are liable to repay an amount to a person under paragraph 8(2) of Schedule 8 (overpaid levy);
whether or not the repayment of an amount under that paragraph is excessive (see paragraph 12 of that Schedule);
whether or not a person is liable to pay an amount to the Commissioners in pursuance of an obligation imposed by regulations under paragraph 11(3)(b), (c) or (e) of Schedule 8 (reimbursement arrangements);
whether or not a person is liable to a penalty under paragraph 1(1) or (6) or 2(1) or (3) of Schedule 9 (requirements to keep records etc: penalties);
the amount of soft drinks industry levy payable by a person;
the amount that the Commissioners are liable to repay to a person under paragraph 8(2) of Schedule 8;
where repayment of an amount under that paragraph is excessive, the amount of the excess;
the amount that a person is liable to pay to the Commissioners in pursuance of an obligation imposed by regulations under paragraph 11(3)(b), (c) and (e) of Schedule 8;
the amount of a penalty payable under paragraph 1(1) or (6) or 2(1) or (3) of Schedule 9;
the determination of a dilution ratio under section 27(2)(b);
the registration, or cancellation of registration, of a person under this Part for the purposes of soft drinks industry levy;
the period by reference to which payments of soft drinks industry levy are to be made;
a person’s entitlement to a tax credit, the withdrawal of a tax credit, the amount of a tax credit or the period for which a tax credit is to be brought into account under regulations under section 39;
the giving of a direction by the Commissioners under section 53(2) (keeping and preserving records).
Section 576A of ITEPA 2003, as it applies where the year of departure is the tax year 2012-13 or an earlier tax year, is amended as follows. In subsection (6) (pension income: temporary non-residents: non-application unless payment referable to relevant transfer fund), after “member’s relevant transfer fund” insert “, or the member’s ring-fenced transfer funds,”. In subsection (8) (interpretation), before the definition of “scheme pension” insert—. The amendments made by this paragraph apply in relation to relevant withdrawals on or after 6 April 2017.
“person who is already registrable” has the meaning given by section 41(4);
Subject to sub-paragraphs (2) to (4), the amendments made by this Part of this Schedule have effect in relation to transfers made on or after 9 March 2017. The new section 169(2)(ba) of FA 2004— The other amendments in section 169 of FA 2004, and the amendment in section 255 of that Act, come into force on 9 March 2017. The amendments in regulation 3(2) of the Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 have effect in relation to payments made on or after 9 March 2017; and the new regulation 3AE inserted into those Regulations, and the reference to the new regulation 3AE(6) inserted into regulation 5(1) of those Regulations and the amendments in regulation 11BA of the Registered Pension Schemes (Provision of Information) Regulations 2006, have effect in relation to requests made on or after 9 March 2017. Overseas transfer charge on transfers made in the period beginning with 9 March 2017 and ending with 30 June 2017 is, for the purposes of section 254 of FA 2004, to be treated as charged in the 3 months ending with 30 September 2017 if it would otherwise be considered for those purposes as charged in an earlier period.
Schedule 36 to FA 2008 (powers to obtain information etc.) is amended as follows. In paragraph 10 (power to inspect business premises etc.), at the end insert— In paragraph 63(1) (meaning of “tax”), after paragraph (i) insert—.
Section 11
In Chapter 3 of Part 15 of ITA 2007 (deduction of tax from certain payments of yearly interest), after section 888A insert—
In section 45(2) of FA 2009 (provision that regulations may make about dividends of investment trusts) omit paragraph (c) (power to disapply duty to deduct tax under section 874 of ITA 2007).
In Chapter 3 of Part 15 of ITA 2007 (deduction of tax from certain payments of yearly interest), after section 888D (inserted by this Schedule) insert—
Section 15
“prescribed” means specified in, or determined in accordance with, regulations under this section.
In section 554A(2) (meaning of “relevant”) at the end insert “(including such a step where the taking of the step, or some aspect of the taking of the step, constitutes a breach of trust or is a constituent part of a breach of trust, and even if the step or aspect is void as a result of breach of trust).
After section 554X insert—
Subject to paragraphs 14 to 16, the amendments made by this Schedule to Part 7A of ITEPA 2003 have effect in relation to relevant steps taken on or after 6 April 2017.
A person who fails to comply with a requirement imposed by regulations under section 48(2) or 53(1)(a) is liable to a penalty. The amount of the penalty is equal to the relevant amount multiplied by the number of days on which the failure continues (up to a maximum of 100 days) or, if it is greater, to a penalty of £50. In relation to a failure by a person to comply with the requirement, the amount of the penalty is to be determined by reference to the number of occasions in the period of 2 years preceding the beginning of the failure on which the person has previously failed to comply with that requirement. But— The relevant amount is— A person who fails to comply with a requirement to preserve records imposed by regulations under section 53(1)(b) is liable to a penalty of £500. If by reason of conduct falling within sub-paragraph (1) or (6) a person is assessed to a penalty for a deliberate inaccuracy under Schedule 24 to FA 2007, that conduct does not also give rise to a penalty under this paragraph.
A failure by any person to comply with any requirement mentioned in paragraph 1 or 2 does not give rise to a liability to a penalty under this Schedule if the person concerned satisfies— that there is a reasonable excuse for the failure. A failure for which there is a reasonable excuse is to be disregarded for the purposes of paragraph 1(5). For the purposes of this paragraph, in the case of a person (P)—
Soft drinks industry levy Return under regulations under section 52 of FA 2017
Section 554RA of ITEPA 2003, inserted by paragraph 8 of this Schedule, has effect in relation to relevant steps taken on or after 9 December 2010.
Schedule 55 to FA 2009 (penalty for failure to make returns etc) is amended in accordance with this paragraph. In paragraph 1(4), in the definition of “penalty date”, for “13” substitute “13A”. 13A Soft drinks industry levy Return under regulations under section 52 of FA 2017 In subsections (2) and (4) of section 106 of FA 2009 (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.
Paragraph 13 does not apply in relation to the amendment made by paragraph 11 of this Schedule (new sections 554Z11B to 554Z11G of ITEPA 2003). Sections 554Z11B to 554Z11D and 554Z11G of ITEPA 2003, inserted by paragraph 11 of this Schedule, have effect in relation to relevant steps taken on or after 6 April 2011. Where— sections 554Z11B to 554Z11D and 554Z11G of ITEPA 2003 have effect in relation to the early step as they have effect in relation to relevant steps taken on or after 6 April 2011.
Schedule 56 to FA 2009 (penalty for failure to make payments on time) is amended in accordance with this paragraph. 11ZA Soft drinks industry levy Amount payable under regulations under section 52 of FA 2017 or paragraphs 6 or 14 of Schedule 8 to that Act The date determined by or under regulations under section 52 of FA 2017 In subsections (2) and (4) of section 107 of FA 2009 (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.
The amendments made by paragraph 12 of this Schedule to paragraph 59 of Schedule 2 to FA 2011 have effect in relation to chargeable steps (as defined in that paragraph) taken on or after 6 April 2017.
Schedule 23 to FA 2011 (data-gathering powers) is amended in accordance with this paragraph. After paragraph 24 insert— In paragraph 45(1) (meaning of “tax”), after paragraph (i) insert—.
Section 16
“the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs;
In Schedule 8 to VATA 1994 (zero-rating), Group 12 (drugs, medicines, aids for the handicapped etc) is amended as follows. For item 2A substitute—
Schedule 8 to VATA 1994 is amended as follows.
Soft drinks industry levy is recoverable as a debt due to the Crown.
Where an amount has been assessed and notified to a person under paragraph 2, 4 or 5, it is recoverable on the basis that it is an amount of soft drinks industry levy due from that person. But sub-paragraph (1) does not have effect if, or to the extent that, the assessment has been withdrawn or reduced.
The Commissioners are not liable, on a claim for a repayment of soft drinks industry levy, to repay any amount paid more than 4 years before the making of the claim. It is a defence to any claim for repayment of an amount of soft drinks industry levy that the repayment of that amount would unjustly enrich the claimant.
Sub-paragraph (2) applies where— The Commissioners may—
If it appears to the Treasury that there has been a change in the value of money since the last relevant date, they may by regulations substitute for the sums specified in paragraph 1(2), (5)(a) to (c) and (6) and paragraph 2(2) and (3) such other sums as appear to them to be justified by the change. But regulations under sub-paragraph (1) may not apply to a failure which began before the date on which the regulations come into force. The “relevant date”, in relation to a specified sum, means—
In Part 1 (index to zero-rated supplies of goods and services)—
in the entry relating to Group 12, for “handicapped” substitute “disabled”;
in the entry relating to Group 4, for “handicapped” substitute “disabled”.
This paragraph applies where— Where loss or damage has been, or may be, incurred by P as a result of mistaken assumptions made in P’s case about the operation of any provision relating to soft drinks industry levy, that loss or damage is to be disregarded, except to the extent of the quantified amount, in the making of a relevant determination. In sub-paragraph (2) “the quantified amount” means the amount (if any) which is shown by P to constitute the amount that would appropriately compensate P for loss or damage shown by P to have resulted from the making of the mistaken assumptions. A “relevant determination” means a determination for the purposes of paragraph 9(2) as to— The reference in sub-paragraph (2) to provision relating to soft drinks industry levy is a reference to any provision made by or under any enactment which relates to the levy or to any matter connected with it.
In Group 4 (talking books for the blind and handicapped and wireless sets for the blind)—
in item 1, for each occurrence of “handicapped” substitute “disabled”;
in the heading, for “handicapped” substitute “disabled”.
In Group 12 (drugs, medicines, aids for the handicapped etc)—
in items 2 to 19 and Notes (1) and (5B) to (9), for each occurrence of “handicapped” substitute “disabled”;
Any person who is chronically sick or disabled is “disabled” for the purposes of this Group.
in the heading, for “handicapped,” substitute “disabled,”.
In Group 15 (charities etc)—
in item 5 and Notes (1C) to (4A), (5A) and (5B), for “handicapped” substitute “disabled”;
Any person who is chronically sick or disabled is “disabled” for the purposes of this Group.
Section 52
Section 53
“liable person” means the person who is liable under section 35 to pay the charge to soft drinks industry levy referred to in subsection (1);
Where a person becomes liable for a penalty under this Schedule— Where a person is liable to a penalty under paragraph 1 for failure to comply with a requirement imposed by regulations under section 48(2) or 53, no assessment of the penalty may be made under this paragraph unless— A notice under sub-paragraph (1) must specify a date, being not later than the date of the notice, to which the amount of the penalty is calculated. If the penalty continues to accrue after that date, a further assessment or assessments may be made under this paragraph in respect of the accrued amounts. If, within such period as may be notified by the Commissioners to the person liable to a penalty, the failure to comply with a requirement imposed by regulations under section 48(2), or by regulations or a direction under 53, is remedied, it is to be treated as remedied on the date specified under sub-paragraph (3).
An assessment under paragraph 5 may not be made after the end of the relevant period. Except in a case within sub-paragraph (3), the relevant period is the period of 4 years from the end of the accounting period to which the assessment relates. Where an assessment of an amount due from a person in a case involving loss of soft drinks industry levy— the relevant period is the period of 20 years from the end of the accounting period to which the assessment relates. In sub-paragraph (3)(a) the reference to loss brought about deliberately by a person includes a reference to a loss brought about as a result of the deliberate inaccuracy in a document given to HMRC by the person. In sub-paragraphs (3) and (4) references to a loss brought about by a person include references to a loss brought about by another person acting on behalf of that person.
In Schedule 53 to FA 2009 (late payment interest) after paragraph 11B insert—
Section 55
Section 56