Finance Act 2009

There is a supplementary charge on a supply of goods or services that is treated as taking place on or after 25 November 2008 if— In this Schedule “the date of the VAT change” means 1 January 2010. For the cases in which a supply, other than the grant of a right to goods or services, spans the date of the VAT change and the relevant conditions in relation to such a supply, see paragraph 2. For the cases in which a supply consisting of the grant of a right to goods or services spans the date of the VAT change and the relevant conditions in relation to such a supply, see paragraph 3. Sub-paragraph (1) has effect subject to the exceptions made by or under Part 2 of this Schedule. In this Schedule— Part 3 contains provision about liability for, and the amount of, a supplementary charge under this Schedule, Part 4 contains special provision about listed supplies, and Part 5 contains provision about administration and interpretation. A supplementary charge under this Schedule is to be treated for all purposes as if it were value added tax charged in accordance with VATA 1994.

In Schedule 18 to FA 1998 (company tax returns etc), in the heading of Part 9B, after “contaminated” insert “ or derelict ”.

ITTOIA 2005 is amended as follows.

For the purposes of this Part of this Schedule—

The amendments made by this Part have effect in relation to accounting periods of controlled foreign companies beginning on or after 1 July 2009.

The following expressions have the same meaning for the purposes of this Part as they have for the purposes of Chapter 4 of Part 17 of ICTA—

Chapter 3 of Part 5 of CTA 2009 (loan relationships: credits and debits to be taken into account) is amended as follows.

The Loan Relationships and Derivative Contracts (Disregard and Bringing into Account of Profits and Losses) Regulations 2006 (S.I. 2006/843) are revoked.

TCGA 1992 is amended as follows.

The amendment made by sub-paragraph (1)(a) of paragraph 11 comes into force on 1 December 2009 (and has effect as if section 103A of TCGA 1992 had effect from that date in relation to the issue, placing, acquisition, holding and disposal of rights in relevant offshore funds by any person). The amendments made by sub-paragraphs (2), (4) and (5) of paragraph 11 come into force in accordance with an order made by the Treasury.

An election under paragraph 15 must be made— A return under TMA 1970 is relevant if it is for— A company tax return is relevant if it is for— The references in sub-paragraph (1) to an election being included in a return include an election being included by virtue of an amendment of the return. An election under paragraph 15 is irrevocable.

In ITA 2007, after section 384 insert— The amendment made by sub-paragraph (1) has effect in relation to interest paid on or after 19 March 2009.

In section 540(3) of CTA 2009 (manufactured interest treated as interest under loan relationship), insert at the end “and the credits and debits to be brought into account in respect of manufactured interest for any period are those that are recognised in determining the company’s profit or loss for the period in accordance with generally accepted accounting practice (but subject to the provisions of Part 5, including, in particular, section 307(3) and to paragraph 7A of Schedule 23A to ICTA).” In section 97(2) of FA 1996 (equivalent provision for accounting periods ending before 1 April 2009), insert at the end “and the credits and debits to be brought into account in respect of manufactured interest for any period are those that are recognised in determining the company’s profit or loss for the period in accordance with generally accepted accounting practice (but subject to the provisions of this Chapter (including, in particular, section 84(1)) and to paragraph 7A of Schedule 23A to the Taxes Act 1988).” The amendments made by this paragraph have effect in relation to manufactured interest whenever paid, apart from payments treated under section 737A(5) of ICTA as made before 27 January 2009.

Part 4 of FA 2006 (Real Estate Investment Trusts) is amended as follows.

In section 108(3)(a) (conditions for balance of business), for “if it is property involved in the relevant property rental business within the meaning given by section 107(6)(a),” substitute “if it would be shown as an asset if separate accounts were produced for C (tax-exempt),”. The amendment made by sub-paragraph (1) has effect in relation to accounting periods ending on or after 22 April 2009.

In section 118(5) (funds awaiting re-investment), after “one or more periods of” insert “(in aggregate)”. The amendment made by sub-paragraph (1) has effect in relation to accounting periods ending on or after 22 April 2009.

To find the individual’s relevant income for the tax year take the following steps— Step 1 Identify the individual’s total income. Step 2 Add the amount of any deductions made from any employment income of the individual for the tax year under section 193(2) of FA 2004 or made under Chapter 2 of Part 5 of ITEPA 2003 in accordance with paragraph 51 of Schedule 36 to FA 2004. Step 3 Deduct the amount of any relief under the provisions listed in section 24 of ITA 2007, other than sections 193(4) and 194(1) of FA 2004, to which the individual is entitled for the tax year. Step 4 Deduct the aggregate amount of any relevant contributions, but subject to a maximum of £20,000. Step 5 Add any amount by which what would otherwise be general earnings or specific employment income of the individual for the tax year has been reduced by a post-22 April 2009 salary sacrifice scheme. Step 6 If in the tax year the individual makes, or is treated under section 426 of ITA 2007 as making, a gift that is a qualifying donation for the purposes of Chapter 2 of Part 8 of that Act (gift aid), deduct the grossed up amount of the gift (that is, the amount of the gift grossed up by reference to the basic rate for the tax year). The result is the individual’s relevant income for the tax year unless the result is less than £150,000 and the following provisions provide that the individual’s relevant income is to be a different amount. If the amount arrived at under sub-paragraph (1) is less than £150,000, take the steps in that sub-paragraph in relation to— If the result is £150,000 or more for either or both of those earlier tax years the individual’s relevant income for the tax year is to be assumed to be £150,000. If there is a scheme the main purpose, or one of the main purposes, of which is to secure that the individual’s relevant income for the tax year is less than £150,000, it is to be assumed to be £150,000. In step 4 in sub-paragraph (1) “relevant contributions” are— In step 5 in sub-paragraph (1) “a post-22 April 2009 salary sacrifice scheme” is a scheme made on or after 22 April 2009 in pursuance of which— Section 993 of ITA 2007 (meaning of “connected” person) applies for the purposes of sub-paragraph (5).

A company’s pool of field allowances for an accounting period (“the relevant accounting period”) is— where— P is the amount of the company’s pool of field allowances for the previous accounting period that has been carried into the relevant accounting period (see paragraphs 3 and 4), and R is the aggregate of the amounts of field allowances for new oil fields which the company holds (see Part 3) that are activated in respect of— the relevant accounting period (see Part 4), and reference periods that fall within the relevant accounting period (see Part 5).

This paragraph applies if a company holds a field allowance for a new oil field by virtue of paragraph 5 or 15(2). The unactivated amount of that allowance at a particular time (“the relevant time”) is— where— R is the amount of the field allowance which the company held before the relevant time by virtue of paragraph 5 or 15(2), E is the total amount of the field allowance received before the relevant time by virtue of paragraph 15(1) (company already holding field allowance acquires equity share), A is the total amount of the field allowance activated in respect of— accounting periods ending before the relevant time, or reference periods ending before the relevant time, and D is the total amount of reductions in the field allowance made before the relevant time by virtue of paragraph 14 (company disposes of equity share). A company ceases to hold a field allowance for a new oil field if the unactivated amount of that allowance falls to nil.

In this Schedule “new oil field” means an oil field—

In this Schedule “small oil field” means an oil field which has reserves of oil of 3,500,000 tonnes or less. For the purposes of this paragraph and paragraph 24(2)—

For the purposes of this Schedule the total field allowance for a new oil field is— The total field allowance for a small oil field is—

Paragraph 15 provides for reductions in the penalty under paragraph 6(3) or (4) or 11(3) or (4) where P discloses information which has been withheld by a failure to make a return (“relevant information”). P discloses relevant information by— Disclosure of relevant information— In relation to disclosure “quality” includes timing, nature and extent.

Where P is liable for a penalty under any paragraph of this Schedule HMRC must— A penalty under any paragraph of this Schedule must be paid before the end of the period of 30 days beginning with the day on which notification of the penalty is issued. An assessment of a penalty under any paragraph of this Schedule— A supplementary assessment may be made in respect of a penalty if an earlier assessment operated by reference to an underestimate of the liability to tax which would have been shown in a return.

References to a liability to tax which would have been shown in a return are references to the amount which, if a complete and accurate return had been delivered on the filing date, would have been shown to be due or payable by the taxpayer in respect of the tax concerned for the period to which the return relates. In the case of a penalty which is assessed at a time before P makes the return to which the penalty relates— In calculating a liability to tax which would have been shown in a return, no account is to be taken of any relief under subsection (4) of section 419 of ICTA (relief in respect of repayment etc of loan) which is deferred under subsection (4A) of that section.

This paragraph applies for the construction of this Schedule. The withholding of information by P is— “HMRC” means Her Majesty’s Revenue and Customs. References to a liability to tax, in relation to a return falling within item 6 in the Table (construction industry scheme), are to a liability to make payments in accordance with Chapter 3 of Part 3 of FA 2004. References to an assessment to tax, in relation to inheritance tax and stamp duty reserve tax, are to a determination.

In section 31(1)(b) (relationship between rules prohibiting and allowing deductions), omit “or motor cycle”.

The amendments made by this Part of this Schedule have effect in relation to deductions for expenses incurred on the hiring of a car or motor cycle under an agreement under which the hire period begins on or after the first relevant date (but see paragraph 67). For the purposes of this paragraph and paragraph 67, the hire period, in relation to an agreement, begins on the first day on which the car or motor cycle is required to be made available for use under the agreement.

In section 328 (exchange gains and losses), after subsection (4) insert—

In Chapter 3 of Part 3 (collective investment schemes), insert at the end—

Where a person who would otherwise be liable to a 100% penalty has made an unprompted disclosure, HMRC must reduce the 100% to a percentage, not below 30%, which reflects the quality of the disclosure. Where a person who would otherwise be liable to a 100% penalty has made a prompted disclosure, HMRC must reduce the 100% to a percentage, not below 50%, which reflects the quality of the disclosure. Where a person who would otherwise be liable to a 70% penalty has made an unprompted disclosure, HMRC must reduce the 70% to a percentage, not below 20%, which reflects the quality of the disclosure. Where a person who would otherwise be liable to a 70% penalty has made a prompted disclosure, HMRC must reduce the 70% to a percentage, not below 35%, which reflects the quality of the disclosure. But HMRC must not under this paragraph—

An assessment of a penalty under any paragraph of this Schedule in respect of any amount must be made on or before the later of date A and (where it applies) date B. Date A is the last day of the period of 2 years beginning with the filing date. Date B is the last day of the period of 12 months beginning with— In sub-paragraph (3)(a) “appeal period” means the period during which— Sub-paragraph (1) does not apply to a re-assessment under paragraph 24(2)(b).

Section 48 (rules restricting deductions from profits: car or motor cycle hire) is amended as follows. In subsection (1), for the words from “or motor cycle”, in the first place, to the end substitutewhich is not— In subsection (2), for the words from “multiplying” to the end substitute “ 15% ”. In subsection (4), for “multiplying it by the fraction in subsection (2)” substitute “ 15% ”. In subsection (4A)(a), (b) and (c), omit “or motor cycle”. Omit subsection (5). In the heading, omit “or motor cycle”.

After that section insert—

Accordingly, in the title of Part 3 and in the title of Chapter 3 of that Part, insert at the end “etc”.

Section 49 (car or motor cycle hire: supplementary) is amended as follows. In subsection (1)— After that subsection insert— In subsection (2)— In subsection (6), omit “and section 48”. In the heading, omit “or motor cycle”.

In section 288(1) (interpretation), in the definition of “company”, for “section 99” substitute “sections 99 and 103A”.

Omit section 50 (hiring cars with low carbon dioxide emissions).

After that section insert—

In section 247(1) (other rules about what counts as post-cessation receipts), omit “or motor cycle”.

In section 272(2) (profits of a property business: application of trading income rules), in the entry in the Table relating to sections 48 to 50—

In section 274(1)(b) (relationship between rules prohibiting and allowing deductions), omit “or motor cycle”.

In section 354(2) (other rules about what counts as post-cessation receipts), omit “or motor cycle”.

In Schedule 2 (transitionals and savings), omit paragraphs 16 and 17 (and the heading before them).

In section 7(5) of F(No.2)A 2005 (charge to income tax on social security pension lump sum)—

Paragraph 36 of Schedule 15 to FA 2000 (corporate venturing scheme: requirement as to money raised) is amended as follows. In sub-paragraph (1), for “At least 80%” substitute “ All ”. Omit sub-paragraph (1A). In sub-paragraph (1B), for “12 months” (in both places) substitute “ two years ”. In sub-paragraph (1C), for “Sub-paragraphs (1) and (1A) are” substitute “ Sub-paragraph (1) is ”. In sub-paragraph (5) omit “does not apply and the requirement of sub-paragraph (1A)”.

The amendments made by paragraphs 2, 3, 5, 7, 8 and 10 have effect in relation to shares issued on or after 22 April 2009.

In TCGA 1992, for section 171A substitute—

FA 1993 is amended as follows.

This paragraph applies where— The translation must be made by taking the following steps— Step 1: translate the loss into its sterling equivalent by reference to the appropriate exchange rate. Step 2: translate the loss (as translated under step 1) into the original currency by reference to the spot rate of exchange for the first day of the first accounting period of the company beginning on or after the commencement date. Step 3: translate the loss (as translated under step 2) into its sterling equivalent in accordance with rule 1, 2 or 3 (whichever is applicable). Rule 1 applies if the original currency and the operating currency of the company in the accounting period to which the carried-forward amount is to be carried forward (“the later operating currency”) are the same. Rule 1 is that the loss must be translated into its sterling equivalent by reference to the same rate of exchange as that at which the profit against which the carried-forward amount is to be set off is required to be translated under section 92D of FA 1993. Rule 2 applies if— Rule 2 is that the loss must be translated into its sterling equivalent by reference to the spot rate of exchange for the first day of the relevant accounting period. Rule 3 applies if— Rule 3 is that the loss must be translated into its sterling equivalent by— In this paragraph “the relevant accounting period” means the earliest accounting period of the company beginning after the commencement date in which the operating currency of the company is the later operating currency.

In this Schedule the following expressions have the meaning given by section 92DE or 92E of FA 1993— Subsections (3) and (4) of section 92DE of FA 1993 (meaning of certain references to profit against which carried-forward amount is to be set off) apply in relation to this Schedule as they apply in relation to section 92DB and 92DD of that Act. In this Schedule “the commencement date” means 29 December 2007.

the Part 5 one-way exchange effect provisions section 328H(1) the Part 7 one-way exchange effect provisions section 606H(1)

In section 82 of FA 1989 (calculation of profits), after subsection (2) insert— The amendment made by sub-paragraph (1) has effect in relation to amounts allocated on or after 22 April 2009 to holders of policies under which they are eligible to participate in surplus.

Section 432E of ICTA (section 432B apportionment: participating funds) is amended as follows. In subsection (3)(a), omit “and foreign business assets”. In subsection (4), in the definition of “A”, omit “and foreign business assets”. In subsection (4A), omit “or foreign business assets”.

In consequence of the amendments made by this Schedule, omit—

In consequence of the amendment made by paragraph 6, in FA 2008, omit section 47(1).

Section 736B of ICTA (deemed manufactured payments in the case of stock lending arrangements) is amended as follows. In subsection (2), for “subsection (2A)” substitute “subsections (2A) and (2B)”. After subsection (2A) insert—

Section 311 of CTA 2009 (loan relationships: amounts not fully recognised for accounting purposes) is amended as follows. In subsection (2), for paragraphs (b) and (c) substitute— In subsection (3)(b), after “to the” insert “creditor relationship and the debtor”. In paragraph (b) of subsection (4), after “to the” insert “creditor relationship and the relevant capital”. After that subsection insert— In subsection (6)— In section 317(5) of CTA 2009 (carrying value), before paragraph (a) insert—. The amendments made by this paragraph have effect in relation to periods of account beginning on or after 22 April 2009. But for the purposes of sub-paragraph (8) a period of account beginning before, and ending on or after, 22 April 2009 is to be treated as if so much of the period as falls before that date, and so much of the period as falls on or after that date, were separate periods of account.

Paragraph 7 (provision for purposes of condition A) is amended as follows. The relevant plant or machinery value is the aggregate of the amounts in sub-paragraph (3), but subject to paragraph 7A. The amounts are— For the purposes of sub-paragraph (3)(b) plant or machinery is “relevant transferred plant or machinery” if an amount in respect of it would be shown in the appropriate balance sheet of an associated company drawn up as at the start of the relevant day. In sub-paragraph (4), for “this purpose” substitute “the purposes of this paragraph”. In sub-paragraph (8)(a), omit “as at the start of the relevant day”. References in this Part of this Schedule to an associated company are to a company which is an associated company of the relevant company on the relevant day (as to which, see paragraph 9).

After paragraph 17 insert—

“Long funding finance lease”, “long funding lease” and “long funding operating lease” have the same meaning as in Part 2 of CAA 2001 (see section 70YI of that Act).

The amendments made by this Schedule have effect where the relevant day is on or after 13 November 2008.

The amendments made by paragraph 5 have effect in relation to expenditure incurred on or after 22 April 2009. The amendment made by paragraph 6 has effect in relation to ring fence trades that cease to be carried on or after 12 March 2008.

In the case of an amount which— the repayment interest start date is the later of the dates mentioned in sub-paragraph (2). The dates are—

Section 684 of ITEPA 2003 (PAYE regulations) is amended as follows.

The reliefs provided by paragraphs 6 to 12 (and paragraph 18 so far as it relates to those paragraphs) are not available if control of the underlying asset is acquired by— A bond-holder (“BH”), or a group of connected bond-holders, acquires control of the underlying asset if— In accordance with sub-paragraph (1), in the case of the reliefs provided by paragraphs 6 and 10—

The amendments made by paragraph 4 have effect in relation to—

section 92D (sterling equivalents: the basic rule); sections 92DA and 92DB (sterling equivalents: special rules where amounts carried back or forward); sections 92DC and 92DD (adjustment of sterling amounts carried back or forward where operating currency changes).

In consequence of the amendments made by paragraph 5, omit—

Omit the following provisions (which relate to the provisions repealed by paragraph 8)—

In CTA 2009, after section 599 insert— In section 702(3) of CTA 2009 (carrying value), before paragraph (c) insert—. The amendments made by this paragraph have effect in relation to periods of account beginning on or after 22 April 2009. But for the purposes of sub-paragraph (3) a period of account beginning before, and ending on or after, 22 April 2009 is to be treated as if so much of the period as falls before that date, and so much of the period as falls on or after that date, were separate periods of account.

In subsection (1), omit “for Her Majesty’s Revenue and Customs”.

But paragraph 20 does not prevent the reliefs being available in either of the following cases. The first case is where— The second case is where BH— In this paragraph—

The amendments made by paragraph 6 have effect as follows. The amendments made by sub-paragraph (2) have effect in relation to shares issued in the tax year 2009-10 or a subsequent tax year. The amendment made by sub-paragraph (3) has effect in relation to claims made under section 158(4) of ITA 2007 in respect of shares issued in the tax year 2009-10 or a subsequent tax year.

In section 92B (company operating in currency other than sterling and preparing accounts in another currency), insert at the end—

The amendments made by paragraphs 5 and 6 have effect in relation to periods of account beginning on or after 1 January 2009 and ending on or after 22 April 2009. But an insurance company may, in its company tax return for— elect that the amendments made by paragraphs 5 and 6 have effect in relation to that accounting period.

In section 542(2) of CTA 2009 (introduction to Chapter 10 of Part 6), for “547” substitute “546”.

Subsection (2) is amended as follows. For “PAYE regulations may, in particular, include” substitute “The provision that may be made in PAYE regulations includes”. In the list of provisions, in item 1, in paragraph (a), omit “for Her Majesty’s Revenue and Customs”. In item 2, for “or remaining unpaid (or treated as overpaid or remaining unpaid)” substitute “(or treated as overpaid) on account of, or any amounts other than relevant debts remaining unpaid (or treated as remaining unpaid)”. After item 2 insert— In item 3, for “income tax has been and is” substitute “amounts have been and are”.

The amendments made by paragraph 9 have effect in relation to shares or securities issued on or after 22 April 2009.

In section 92C (company preparing accounts in currency other than sterling), insert at the end—

After subsection (3) insert—

For section 92D (translating amounts into equivalent in different currency) substitute—

In paragraph (a) of subsection (7A), after “tax” insert “or other amounts”.

Section 92E (meaning of “accounts”, “return of accounts” and “functional currency”) is amended as follows. Before subsection (1) insert— In subsection (1), omit “in sections 92A to 92C”. In subsection (2), for “The reference in section 92C” substitute “A reference”. In subsection (3), omit “in sections 92A, 92B and 92D”. Insert at the end— For the heading substitute “Interpretation of sections 92A to 92DD”.

After that subsection insert—

“the Commissioners” means the Commissioners for Her Majesty’s Revenue and Customs; “contract settlement” means an agreement made in connection with the liability of the payee or another person to make a payment to the Commissioners under or by virtue of an enactment.

For the purposes of this Schedule a supply consisting of the grant by a person (“the grantor”) of a right to goods or services spans the date of the VAT change where— In relation to the grant of the right, the relevant conditions are conditions A to C. Condition A is that the grantor and the person to whom the right is granted are connected with each other at any time in the period— Paragraph 5 modifies condition A in cases involving a series of supplies. Condition B is that the aggregate of the following is more than £100,000— Condition C is that the payment made in respect of the grant of the right is financed by the grantor or a person connected with the grantor (see paragraph 7). In this Schedule references to a right to goods or services include—

This paragraph applies for the purposes of condition B in paragraphs 2 and 3. “Relevant consideration” means— but does not include any amount in respect of VAT. A supply within paragraph 2(1), or a grant of a right within paragraph 3(1), is related to another such supply or grant if they are both made as part of the same scheme. “Scheme” includes any arrangements, transaction or series of transactions.

In this Schedule a reference to receipt of a payment by the person making a supply or granting a right (however expressed) includes a reference to receipt by a person to whom a right to receive it has been assigned.

In this Part of this Schedule “normal commercial practice” means normal commercial practice at a time when an increase in the rate of VAT in force under section 2 of VATA 1994 is not expected.

In section 76(7) of ICTA (expenses of insurance companies), in step 3—

In consequence of the amendments made by this Part of this Schedule, in FA 2002, in Schedule 19, omit paragraph 6.

This Schedule has effect in relation to events taking place and transactions carried out on or after 1 July 2009.

Part 2 of FA 2001 (aggregates levy) is amended as follows.

This paragraph applies where an amount of value added tax is due from a person (“P”) in respect of a period during which P was liable to be registered under VATA 1994 but was not registered. The late payment interest start date in respect of the amount is the date which would have been the late payment interest date in respect of that amount if P had become registered when P had first become liable to be so.

In the case of an amount which has been paid to HMRC, the repayment interest start date is the later of date A and (where applicable) date B.

In the case of any amount which is to be repaid as a result of a claim for relief under— the repayment interest start date is 31 January next following the year that is the later year in relation to the claim.

An amount of inheritance tax which is overpaid in consequence of any of the following provisions— does not carry repayment interest before the order mentioned in that provision is made.

A penalty is payable by a person (“P”) where P fails to pay an amount of tax specified in column 3 of the Table below on or before the date specified in column 4. Paragraphs 3 to 8 set out— If P’s failure falls within more than one provision of this Schedule, P is liable to a penalty under each of those provisions. In the following provisions of this Schedule, the “penalty date”, in relation to an amount of tax, means the date on which a penalty is first payable for failing to pay the amount (that is to say, the day after the date specified in or for the purposes of column 4 of the Table). Tax to which payment relates Amount of tax payable Date after which penalty is incurred PRINCIPAL AMOUNTS 1 Income tax or capital gains tax Amount payable under section 59B(3) or (4) of TMA 1970 The date falling 30 days after the date specified in section 59B(3) or (4) of TMA 1970 as the date by which the amount must be paid 2 Income tax Amount payable under PAYE regulations (except an amount falling within item 20) The date determined by or under PAYE regulations as the date by which the amount must be paid 3 Income tax Amount shown in return under section 254(1) of FA 2004 The date falling 30 days after the date specified in section 254(5) of FA 2004 as the date by which the amount must be paid 4 Deductions on account of tax under Chapter 3 of Part 3 of FA 2004 (construction industry scheme) Amount payable under section 62 of FA 2004 (except an amount falling within item 17, 23 or 24) The date determined by or under regulations under section 62 of FA 2004 as the date by which the amount must be paid 5 Corporation tax Amount shown in company tax return under paragraph 3 of Schedule 18 to FA 1998 The filing date for the company tax return for the accounting period for which the tax is due (see paragraph 14 of Schedule 18 to FA 1998) 6 Corporation tax Amount payable under regulations under section 59E of TMA 1970 (except an amount falling within item 17, 23 or 24) The filing date for the company tax return for the accounting period for which the tax is due (see paragraph 14 of Schedule 18 to FA 1998) 7 Inheritance tax Amount payable under section 226 of IHTA 1984 (except an amount falling within item 14 or 21) The filing date (determined under section 216 of IHTA 1984) for the account in respect of the liability for that amount 8 Inheritance tax Amount payable under section 227 or 229 of IHTA 1984 (except an amount falling within item 14 or 21) For the first instalment, the filing date (determined under section 216 of IHTA 1984) for the account in respect of the liability for that amountFor any later instalment, the date falling 30 days after the date determined under section 227 or 229 of IHTA 1984 as the date by which the instalment must be paid 9 Stamp duty land tax Amount payable under section 86(1) or (2) of FA 2003 The date falling 30 days after the date specified in section 86(1) or (2) of FA 2003 as the date by which the amount must be paid 10 Stamp duty reserve tax Amount payable under section 87, 93 or 96 of FA 1986 or Schedule 19 to FA 1999 (except an amount falling within item 17, 23 or 24) The date falling 30 days after the date determined by or under regulations under section 98 of FA 1986 as the date by which the amount must be paid 11 Petroleum revenue tax Amount charged in an assessment under paragraph 11(1) of Schedule 2 to OTA 1975 The date falling 30 days after the date determined in accordance with paragraph 13 of Schedule 2 to OTA 1975 as the date by which the amount must be paid AMOUNTS PAYABLE IN DEFAULT OF A RETURN BEING MADE 12 Income tax or capital gains tax Amount payable under section 59B(5A) of TMA 1970 The date falling 30 days after the date specified in section 59B(5A) of TMA 1970 as the date by which the amount must be paid 13 Corporation tax Amount shown in determination under paragraph 36 or 37 of Schedule 18 to FA 1998 The filing date for the company tax return for the accounting period for which the tax is due (see paragraph 14 of Schedule 18 to FA 1998) 14 Inheritance tax Amount shown in a determination made by HMRC in the circumstances set out in paragraph 2 The filing date (determined under section 216 of IHTA 1984) for the account in respect of the liability for that amount 15 Stamp duty land tax Amount shown in determination under paragraph 25 of Schedule 10 to FA 2003 (including that paragraph as applied by section 81(3) of that Act) The date falling 30 days after the filing date for the return in question 16 Petroleum revenue tax Amount charged in an assessment made where participator fails to deliver return for a chargeable period The date falling 6 months and 30 days after the end of the chargeable period 17 Tax falling within any of items 1 to 6, 9 or 10 Amount (not falling within any of items 12 to 15) which is shown in an assessment or determination made by HMRC in the circumstances set out in paragraph 2 The date falling 30 days after the date by which the amount would have been required to be paid if it had been shown in the return in question AMOUNTS SHOWN TO BE DUE IN OTHER ASSESSMENTS, DETERMINATIONS, ETC 18 Income tax or capital gains tax Amount payable under section 55 of TMA 1970 The date falling 30 days after the date determined in accordance with section 55(3), (4), (6) or (9) of TMA 1970 as the date by which the amount must be paid 19 Income tax or capital gains tax Amount payable under section 59B(5) or (6) of TMA 1970 The date falling 30 days after the date specified in section 59B(5) or (6) of TMA 1970 as the date by which the amount must be paid 20 Income tax Amount shown in determination made by HMRC where it appears that tax payable under PAYE regulations has not been paid The date determined by or under PAYE regulations as the date by which the amount must be paid 21 Inheritance tax Amount shown in— an amendment or correction of a return showing an amount falling within item 7 or 8, or a determination made by HMRC in circumstances other than those set out in paragraph 2 The later of— the filing date (determined under section 216 of IHTA 1984) for the account in respect of the liability for that amount, and the date falling 30 days after the date on which the amendment, correction, assessment or determination is made 22 Petroleum revenue tax Amount charged in an assessment, or an amendment of an assessment, made in circumstances other than those set out in items 11 and 16 The date falling 30 days after— the date by which the amount must be paid, or the date on which the assess-ment or amendment is made, whichever is later 23 Tax falling within any of items 1 to 6, 9 or 10 Amount (not falling within any of items 18 to 20) shown in an amendment or correction of a return showing an amount falling within any of items 1 to 6, 9 or 10 The date falling 30 days after— the date by which the amount must be paid, or the date on which the amendment or correction is made, whichever is later 24 Tax falling within any of items 1 to 6, 9 or 10 Amount (not falling within any of items 18 to 20) shown in an assessment or determination made by HMRC in circumstances other than those set out in paragraph 2 The date falling 30 days after— the date by which the amount must be paid, or the date on which the assessment or determin-ation is made, whichever is later

If HMRC think it right because of special circumstances, they may reduce a penalty under any paragraph of this Schedule. In sub-paragraph (1) “special circumstances” does not include— In sub-paragraph (1) the reference to reducing a penalty includes a reference to—

In section 29(5) of the Tax Credits Act 2002 (recovery of overpayments)—

In section 32(1) (repayments of overpaid aggregates levy), for “three years” substitute “4 years”.

Date A is the date on which the amount was paid to HMRC.

In the case of an amount which is repayable on a claim under section 146(2) or 150 of IHTA 1984, the repayment interest start date is the date on which the claim is made.

Part 11 of ITEPA 2003 (pay as you earn) is amended as follows. In section 682(1) (scope of Part), insert at the end “and includes provision in respect of the deduction of certain other amounts from, and the repayment of certain other amounts with, PAYE income”. In section 685 (tax tables)—

Paragraph 4 of Schedule 5 (time limits for assessments) is amended as follows. In sub-paragraph (1)(b), for “three years” substitute “4 years”. An assessment of an amount due from a person in a case involving a loss of aggregates levy— may be made at any time not more than 20 years after the end of the accounting period to which it relates (subject to sub-paragraph (4)). In sub-paragraph (3)(a) the reference to a loss brought about deliberately by the person includes a loss brought about as a result of a deliberate inaccuracy in a document given to Her Majesty’s Revenue and Customs by or on behalf of that person. In sub-paragraph (4)—

Date B is, in the case of an amount which— the date on which the payment became due and payable to HMRC.

In the case of an amount which is repayable under section 147(2) of IHTA 1984, the repayment interest start date is the date on which the tax was paid.

The Treasury may by order make provision— An order under this paragraph may only make provision to the extent that it is appropriate in consequence of, or in connection with, the amendments made by this Schedule. An order under this paragraph may include transitional provision and savings. An order under this paragraph is to be made by statutory instrument. A statutory instrument containing an order under this paragraph is subject to annulment in pursuance of a resolution of the House of Commons.

In paragraph 2(10) of Schedule 8 (interest payable by Commissioners), for “three years” substitute “4 years”.

Paragraph 4 of Schedule 10 (time limits on penalty assessments) is amended as follows. In sub-paragraph (1), for “three years” substitute “4 years”. An assessment of a person to a civil penalty in a case involving a loss of aggregates levy— may be made at any time not more than 20 years after the conduct to which the penalty relates (subject to sub-paragraph (3)). In sub-paragraph (2)(a) the reference to a loss brought about deliberately by the person includes a loss brought about as a result of a deliberate inaccuracy in a document given to Her Majesty’s Revenue and Customs by or on behalf of that person. In sub-paragraph (3)—

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The reference in paragraph 2 to the “worldwide gross debt” of the worldwide group for a period of account of the group is to the average of— For the purposes of this paragraph the “relevant liabilities” of the worldwide group as at any date are the amounts that are disclosed in the balance sheet of the group as at that date in respect of— Expressions used in sub-paragraph (2)(a) and (b) have the meaning for the time being given by the accounting standards in accordance with which the financial statements of the group are drawn up. For provision about references in this Schedule to financial statements of the worldwide group, and amounts disclosed in financial statements, see paragraphs 87 to 90.

In this Part “qualifying activities” means—

In this Part “financial instrument” means anything that is a financial instrument for any purpose of the FSA Handbook. For the purposes of this Part, a dealing in a financial instrument is a “relevant dealing” if— In this paragraph “broker” includes any person offering to sell securities to, or purchase securities from, members of the public generally.

Subject to the following provisions of this paragraph, references in this Part to an amount disclosed in a balance sheet of a relevant group company, or of the worldwide group, as at any date are, where the amount is expressed in a currency other than sterling, to that amount translated into its sterling equivalent, translated by reference to the spot rate of exchange for that date. Sub-paragraph (3) applies in relation to a period of account of the worldwide group if all the amounts disclosed in balance sheets (whether of relevant group companies, or of the worldwide group) that are relevant to a calculation under this Part in relation to that period are expressed in the same currency (“the relevant foreign currency”) and that currency is not sterling. Where this sub-paragraph applies— For this purpose “the relevant amount” means the average of—

References in this Schedule to a “financing expense amount” of a company for a period of account of the worldwide group are to any amount that meets condition A, B or C. Condition A is that the amount is a debit that— A debit is “excluded” if it is in respect of— Condition B is that the amount is an amount that would, apart from this Schedule, be brought into account for the purposes of corporation tax in a relevant accounting period of the company in respect of the financing cost implicit in payments made under finance leases. Condition C is that the amount is an amount that would, apart from this Schedule, be brought into account for the purposes of corporation tax in a relevant accounting period of the company in respect of the financing cost payable on debt factoring, or any similar transaction. In a case where— the debit or other amount is to be reduced, for the purposes of this paragraph, by the same proportion. This paragraph is subject to paragraphs 57 to 68.

This paragraph applies where, apart from this paragraph, an amount (“the relevant amount”) is— The relevant amount, and all other amounts that are relevant amounts in respect of the group treasury company and the relevant period, are treated as not being a financing expense amount or a financing income amount of the group treasury company, but only if that company makes an election for the purposes of this paragraph in respect of the relevant period. An election under this paragraph must be made within 3 years after the end of the relevant period. If two or more members of the worldwide group are group treasury companies in the relevant period, an election under this paragraph made by any of them is not valid unless each of them makes such an election in respect of the relevant period before the end of the 3 year period mentioned in sub-paragraph (3). A company is a group treasury company in the relevant period if the following conditions are met. The first condition is that the company is a member of the worldwide group. The second condition is that the company undertakes treasury activities for the worldwide group in the relevant period (whether or not it also undertakes other activities). The third condition is that— For the purposes of this paragraph a company undertakes treasury activities for the worldwide group in the relevant period if, in that period, it does one or more of the following things in relation to, or on behalf of, the worldwide group or any of its members— For the purposes of this paragraph “group treasury revenue”, in relation to a company, means revenue— before any deduction (whether for expenses or otherwise). But revenue consisting of a dividend or other distribution is not group treasury revenue unless it is a dividend or distribution from a company that is, in the relevant period— In this paragraph—

This paragraph applies where, apart from this paragraph, an amount (“the relevant amount”) is a financing expense amount of a company (“company A”) by virtue of meeting condition A in paragraph 54. The relevant amount is treated as not being a financing expense amount of company A, but only if an election is made for this purpose. Such an election may not be made unless the following conditions are met. The first condition is that company A and the other party to the loan relationship (“company B”) are both members of the worldwide group. The second condition is that the finance arrangement is a short-term loan relationship as respects the period of account of the worldwide group. An election under this paragraph may only be made— An election under this paragraph is irrevocable. In this paragraph “short-term loan relationship” has the meaning given in paragraph 62.

This paragraph applies where, apart from this paragraph, an amount (“the relevant amount”) is a financing expense amount of a company (“company A”) by virtue of meeting condition A in paragraph 54. The relevant amount is to be treated as not being a financing expense amount of company A, but only if an election is made for this purpose. Such an election may not be made unless the following conditions are met. The first condition is that company A and the other party to the loan relationship (“company B”) are both members of the worldwide group. The second condition is that company B— The third condition is that, under section 457 of CTA 2009, company B carries forward an amount of non-trading deficit and sets it off against non-trading profits of an accounting period that falls wholly or partly within the period of account of the worldwide group. The fourth condition is that the amount of non-trading deficit carried forward and set off is equal to, or greater than, the relevant amount. An election under this paragraph may only be made—

This paragraph applies where— The relevant amount is treated as not being a financing income amount of company B. In this paragraph “company A” and “company B” have the same meanings as in paragraph 65.

In paragraphs 57 to 68 “finance arrangement” means—

ICTA is amended as follows. In section 748(1) (cases where apportionment under section 747(3) does not apply), omit paragraph (a) (including the “or” at the end). In Schedule 25 (supplementary provision in relation to cases where apportionment under section 747(3) does not apply), omit Part 1 (acceptable distribution policy).

Where a controlled foreign company has an accounting period (“the straddling accounting period”) that— the straddling accounting period is to be treated as split. Where this paragraph provides that the straddling accounting period is to be treated as “split”—

In this Part “qualifying holding company” means a controlled foreign company that was an exempt holding company in relation to the last accounting period to end before 1 July 2009. For the purposes of sub-paragraph (1) paragraphs 14 and 15 are to be disregarded. For the purposes of this Part a company is an “exempt holding company” in relation to an accounting period if—

For the purposes of paragraph 17 an accounting period of a qualifying holding company is a “relevant accounting period” if it—

This paragraph applies where, on or after 9 December 2008, a company alters its accounting date so that any period (“period A”) that would otherwise have fallen in an accounting period ending on or after 9 December 2008 falls instead in an accounting period ending before that date. The reference in paragraph (a) of the definition of “a reference period” in paragraph 17(9) to 9 December 2008 is to be treated as a reference to the beginning of period A.

For the purposes of this Schedule a body corporate (“body A”) is a reporting body at any time if, at that time— Condition A is that body A is not controlled by a body corporate resident outside the United Kingdom. Condition B is that— Condition C is that — Condition D is that—

For the purposes of this Schedule an event or transaction is “reportable”, in relation to a reporting body, if— An event or transaction is within this sub-paragraph if— For the purposes of sub-paragraph (2)(d) a foreign subsidiary is a “controlling partner” in a partnership if, whether alone or taken together with one or more other partners that are subsidiaries, it controls the partnership. The Commissioners may by regulations make provision about how the value of an event or transaction is to be determined for the purposes of this paragraph. Regulations under sub-paragraph (4) may, in particular, in the case of a transaction that is one of a series of transactions, include provision attributing to the transaction the value of other transactions in the series. Regulations under this paragraph may— The Commissioners may by order amend sub-paragraph (1)(a) so as to substitute a higher amount for the amount for the time being mentioned there.

Regulations and orders under this Schedule are to be made by statutory instrument. A statutory instrument containing regulations or an order under this Schedule is subject to annulment in pursuance of a resolution of the House of Commons.

In its application in relation to an event taking place or a transaction carried out before 1 October 2009, paragraph 4(1) has effect as if it required any report under that provision to be made before 1 April 2010. Any regulations under this Schedule that are made within the period of one year beginning on the day on which this Act is passed may be made so as to have effect from any time on or after 1 July 2009.

This Part applies where— “Relevant receipts” means any income— Despite paragraph (b) of sub-paragraph (1), this Part applies if the transfer of the right is a consequence of the transfer to the transferee of all rights under an agreement for annual payments; and for the purposes of that paragraph the transfer of an asset under a sale and repurchase agreement is not to be regarded as a transfer of the asset. Paragraph 2 makes provision as to the consequences of this Part applying. For exclusions from this Part, see— Paragraph 5 makes special provision about transfers of partnership shares. Paragraph 6 contains supplementary provisions.

This Part does not apply if the consideration for the transfer is the advance under an arrangement that is a structured finance arrangement for the purposes of section 774A or 774C of ICTA in relation to the transferor or a partnership in which the transferor is a partner.

In section 648 of ITTOIA 2005 (income arising under a settlement), for subsections (2) to (5) substitute—

section 70E long funding leases: disposal events and disposal values

In section 104 (property rental business), insert at the end— The amendment made by sub-paragraph (1) has effect in relation to accounting periods ending on or after 22 April 2009.

Section 109 (entry notice) is amended as follows. After subsection (2) insert— In subsection (3), omit “by reason only that its shares have not been listed and dealt with on a recognised stock exchange within the preceding 12 months,”. In subsection (5)— Insert at the end— The amendments made by this paragraph have effect in relation to accounting periods beginning on or after 22 April 2009.

Before section 137 (miscellaneous: insurance companies) insert— Regulations under section 136A (inserted by sub-paragraph (1)) may make provision in relation to accounting periods ending on or after the date on which the regulations are made.

In section 198 (replacement of business assets used in connection with oil fields), after subsection (2) insert—

Section 70E of CAA 2001 (long funding leases: disposal events and disposal values) is amended as follows. In subsection (1), for paragraph (c) substitute— After that subsection insert— In subsection (2)(a), for “termination of the lease” substitute “relevant event”. For subsections (3) to (8) substitute— In subsection (9), for “termination of the lease” substitute “relevant event”.

After that section insert—

The amendments made by paragraphs 6 and 7 have effect in relation to cases where the relevant event occurs on or after 13 November 2008.

The amendments made by this Part have effect in relation to disposals made on or after 22 April 2009 (whether the acquisition in which the consideration is reinvested takes place before, on or after that date).

Section 266 (life assurance premiums) is amended as follows. In subsection (1)— After that subsection insert— In subsection (3), omit “(7),”. In subsection (4), for “subsections (7) and” substitute “ subsection ”. Omit subsection (7). In subsection (8), for “and is entitled to relief by virtue of section 278(2) or (2ZA)” substitute “ (but is entitled to relief by virtue of subsection (1A)(b)) ”.

Part 4 of FA 2004 (pension schemes etc) is amended as follows.

This paragraph applies in relation to a supply within paragraph 2 which arises from the letting, hiring or rental of assets. There is no supplementary charge under this Schedule if—

A person who has made a loss in a trade in the tax year 2008-09 or 2009-10 may make a claim for relief under this paragraph if— Condition A is that the person makes a claim under that section for relief in respect of the section 64 amount— Condition B is that— the person's total income is nil or does not include any income from which a deduction could be made in pursuance of a claim under that section for relief in respect of the section 64 amount. The amount of the loss that may be relieved under this paragraph (“the deductible amount”) is— (but see sub-paragraph (12)). A claim for relief under this paragraph is for the deductible amount to be deducted (in accordance with sub-paragraph (6) and with whichever is applicable of sub-paragraphs (7), (8), (9) and (10))— A deduction is to be made only from profits of the trade (and accordingly, in relation to the tax years 2007-08 and 2008-09, subsection (2) of section 25 of ITA 2007 has effect as if this sub-paragraph were included in subsection (3) of that section). This sub-paragraph explains how the deductions are to be made in a case where the loss is made in the tax year 2008-09 and the person makes a claim under section 64 of ITA 2007 for relief in respect of the section 64 amount for the tax year 2007-08. Step 1 Deduct the deductible amount from the profits of the trade for the tax year 2006-07. Step 2 Deduct from the profits of the trade for the tax year 2005-06 so much of the deductible amount as has not been deducted under Step 1. This sub-paragraph explains how the deductions are to be made in any other case where the loss is made in the tax year 2008-09. Step 1 Deduct the deductible amount from the profits of the trade for the tax year 2007-08. Step 2 Deduct from the profits of the trade for the tax year 2006-07 so much of the deductible amount as has not been deducted under Step 1. Step 3 Deduct from the profits of the trade for the tax year 2005-06 so much of the deductible amount as has not been deducted under Step 1 or 2. This sub-paragraph explains how the deductions are to be made in a case where the loss is made in the tax year 2009-10 and the person makes a claim under section 64 of ITA 2007 for relief in respect of the section 64 amount for the tax year 2008-09. Step 1 Deduct the deductible amount from the profits of the trade for the tax year 2007-08. Step 2 Deduct from the profits of the trade for the tax year 2006-07 so much of the deductible amount as has not been deducted under Step 1. This sub-paragraph explains how the deductions are to be made in any other case where the loss is made in the tax year 2009-10. Step 1 Deduct the deductible amount from the profits of the trade for the tax year 2008-09. Step 2 Deduct from the profits of the trade for the tax year 2007-08 so much of the deductible amount as has not been deducted under Step 1. Step 3 Deduct from the profits of the trade for the tax year 2006-07 so much of the deductible amount as has not been deducted under Step 1 or 2. The provision made by the preceding provisions means that the following sections of ITA 2007 apply in relation to relief under this paragraph as in relation to relief under section 64 of that Act— The total amount that may be deducted in accordance with sub-paragraph (7), or in accordance with Steps 2 and 3 in sub-paragraph (8), is limited to £50,000; and the total amount that may be deducted in accordance with sub-paragraph (9), or in accordance with Steps 2 and 3 in sub-paragraph (10), is also limited to £50,000.

Schedule 4 to CTA 2009 (index of expressions) is amended as follows. derelict state (in relation to land) (in Part 14) section 1145A. Omit the entries relating to “harm (in Part 14)” and “land (in Part 14)”. major interest in land (in Part 14) section 1178A. relevant contaminated land remediation (in Part 14) section 1146. relevant derelict land remediation (in Part 14) section 1146A. Omit the references relating to “relevant land remediation (in Part 14)”, “sub-contractor payment (and sub-contractor) (in Chapter 6 of Part 14)” and “substance (in Part 14)”.

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In this Part of this Schedule—

ICTA is amended as follows.

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The reference in paragraph 2 to the “UK net debt” of the worldwide group for a period of account of the group is to the sum of the net debt amounts of each company that was a relevant group company at any time during the period. In this paragraph “net debt amount”, in relation to a company, means the average of— For the meaning of “net debt”, see paragraph 4. Where the amount determined in accordance with sub-paragraph (2) is less than £3 million, the net debt amount of the company is nil. Where a company is dormant (within the meaning given by section 1169 of the Companies Act 2006) at all times in the period beginning with that company’s start date and ending with that company’s end date, the net debt amount of the company is nil. The Treasury may by order amend sub-paragraph (3) by substituting a higher or lower amount for the amount for the time being specified there. No order may be made under sub-paragraph (5) unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, the House of Commons. An order under sub-paragraph (5) may only have effect in relation to periods of account of the worldwide group beginning after the date on which the order is made. In this Part—

This paragraph applies for the purpose of construing references in paragraph 4 to amounts disclosed in the balance sheet of a relevant group company as at any date (“the relevant date”). Where the company— the references are to the amounts that would be disclosed in a balance sheet of the company as at that date, were one drawn up in accordance with generally accepted accounting practice. Where the company— the references are to amounts in that balance sheet. Where the company— the references are to the amounts that would be disclosed in a UK permanent establishment balance sheet as at that date, were one drawn up in accordance with generally accepted accounting practice. For the purposes of this paragraph a relevant group company is a “foreign company” if it is not resident in the United Kingdom and is carrying on a trade in the United Kingdom through a permanent establishment in the United Kingdom.

In this Part “lending activities” means any of the following activities— Activities that are ancillary to lending activities are not qualifying activities for the purposes of this Part if the income derived from the ancillary activities forms a significant part of the total of— In sub-paragraph (2) “income” means the gross income or net income that would be taken into account for the purposes of paragraph 7 in calculating the UK or worldwide trading income of the worldwide group for the period of account. The Commissioners may by order— In sub-paragraph (1)(h), and in the references to ancillary activities in this paragraph and paragraph 8(a), “activities” includes buying, holding, managing and selling assets. In this paragraph “alternative finance arrangements” has the same meaning as in Chapter 6 of Part 6 of CTA 2009.

This paragraph applies in relation to paragraph 7 for calculating the UK trading income of the worldwide group for a period of account. The trading income for that period of a relevant group company is the aggregate of— The income referred to in sub-paragraph (2)(a) is the gross income— without taking account of any deductions (whether for expenses or otherwise). The income referred to in sub-paragraph (2)(b) is the net income arising from the net-basis activities of the relevant group company that— Sub-paragraphs (3) and (4) are subject to sub-paragraph (6). In a case where a proportion of an accounting period of a relevant group company does not fall within the period of account of the worldwide group, the gross income or net income for that accounting period of the company is to be reduced, for the purposes of this paragraph, by that proportion. Gross income or net income is to be disregarded for the purposes of sub-paragraph (2) if the income arises in respect of an amount payable by another member of the worldwide group that is either a UK group company or a relevant group company. In this paragraph “net-basis activity” means activity that is normally reported on a net basis in financial statements prepared in accordance with generally accepted accounting practice.

The companies to which this Part applies may appoint one of their number to exercise functions conferred under this Part on the reporting body in relation to the relevant period of account. An appointment under this paragraph is of no effect unless it is signed on behalf of each company to which this Part applies by the appropriate person. The Commissioners may by regulations make further provision about an appointment under this paragraph including, in particular, provision— In this paragraph “the appropriate person”, in relation to a company, means— Subsections (3) and (4) of section 108 of TMA 1970 (responsibility of company officers: meaning of “proper officer”) apply for the purposes of this paragraph as they apply for the purposes of that section.

Where the reporting body has submitted a statement of allocated disallowances under paragraph 19 or this paragraph, it may submit a revised statement to HMRC. A statement submitted under this paragraph must be received by HMRC within 36 months of the end of the relevant period of account. A statement submitted under this paragraph must comply with the requirements of paragraph 21. A statement submitted under this paragraph—

This paragraph applies where— The company is treated as having amended its company tax return for the accounting period so as to reflect the change mentioned in sub-paragraph (1)(b)(i) or to correct the information mentioned in sub-paragraph (1)(b)(ii).

The Commissioners may by regulations make provision for the purpose of securing that a company required under paragraph 25 to reduce the amounts that it brings into account in respect of financing expense amounts for the relevant period of account (“a company required to make default reductions”) has sufficient information to determine their amount. Provision that may be made in regulations under sub-paragraph (1) includes provision requiring one or more members of the worldwide group to send specified information to a company required to make default reductions. The Commissioners may by regulations make provision about cases in which (whether as a result of non-compliance with regulations made under sub-paragraph (1) or otherwise) a company required to make default reductions does not possess specified information. Provision that may be made in regulations under sub-paragraph (3) includes provision as to assumptions that may or must be made in determining the amount of a reduction under paragraph 25 of a financing expense amount. The Commissioners may by regulations make provision for determining a time later than that determined under paragraph 15(4) of Schedule 18 to FA 1998 (amendment of return by company) before which a company required to make default reductions may amend its company tax return so as to reflect a reduction under paragraph 25. In this paragraph “specified” means specified in regulations under this paragraph.

References in this Schedule to the “tested expense amount” for a period of account of the worldwide group are to the sum of the net financing deductions of each relevant group company. References in this Schedule to the “net financing deduction” of a company for a period of account of the worldwide group are to— References in sub-paragraph (2) to a company’s financing expense amounts or financing income amounts for a period of account of the worldwide group do not include any amount that arises as a result of a transaction that takes place at a time at which the company is not a relevant group company. Where the amount determined in accordance with sub-paragraph (2) is negative, the net financing deduction of the company for the period is nil. Where the amount determined in accordance with sub-paragraph (2) is small (see paragraph 72), the net financing deduction of the company for the period is nil.

In calculating the available amount, an amount disclosed in the financial statements of the worldwide group (“the external finance amount”) must be disregarded if the following conditions are met. Condition A is that a member of the worldwide group is, for a relevant accounting period, a tonnage tax company for the purposes of Schedule 22 to FA 2000. Condition B is that the external finance amount— In this paragraph—

For the purposes of this Schedule “ultimate parent”, in relation to a group, means an entity that— In this paragraph “collective investment scheme” has the meaning given by section 235 of FISMA 2000.

Where a corporate entity is stapled to another entity, the two entities are treated for the purposes of this Schedule as if— Where a relevant non-corporate entity is stapled to another entity, the two entities are treated as if— For the purposes of this paragraph an entity (“entity A”) is “stapled” to another (“entity B”) if, in consequence of the nature of the rights attaching to the shares or other interests in entity A (including any terms or conditions attaching to the right to transfer the interests), it is necessary or advantageous for a person who has, disposes of or acquires shares or other interests in entity A also to have, to dispose of or to acquire shares or other interests in entity B.

This paragraph applies for the purposes of this Schedule. A company is a “UK group company” if— A company is a “relevant group company” if— Condition A is that the company— Condition B is that the company is either— A company is a “relevant subsidiary” of the ultimate parent of the worldwide group if the company is a member of the worldwide group and— Schedule 18 to ICTA (equity holders and profits or assets available for distribution) applies in relation to sub-paragraph (6)(b) and (c) as it applies in relation to section 413(7) of that Act.

This paragraph applies where financial statements of the worldwide group are not drawn up in respect of a period (“the relevant period”). If the relevant period is 12 months or less, this Schedule (apart from this paragraph) applies as if IAS financial statements had been drawn up in respect of the relevant period. If the relevant period is more than 12 months, this Schedule (apart from this paragraph) applies as if IAS financial statements had been drawn up in respect of each period to which sub-paragraph (4) applies. This sub-paragraph applies to a period if— In this paragraph references to IAS financial statements of the worldwide group for a period are to financial statements of the group for the period drawn up in accordance with international accounting standards.

For the purposes of this Schedule the following expressions have the meaning for the time being given by international accounting standards— The Commissioners may by order amend this paragraph.

This paragraph applies to a period of account of the worldwide group (“the relevant period of account”) if—

ICTA is amended as follows. Omit section 754A (returns where it is not established whether acceptable distribution policy applies). In section 801 (dividends paid between related companies: relief for UK and third country taxes), omit subsections (2A)(aa), (2B), (6) and (7). Omit section 801C (double taxation relief: separate streaming of dividend so far as representing an ADP dividend of a CFC). In section 803A (foreign taxation of group as single entity), omit subsection (1A). In Schedule 24 (assumptions for calculating chargeable profits, creditable tax and corresponding UK tax of foreign companies), omit—

The amendments made by this Part do not affect the application of sections 801, 801C or 803A of, or Part 1 of Schedule 25 to, ICTA in relation to dividends paid on or after 1 July 2009 if they are paid for accounting periods beginning before that date. Sub-paragraph (3) applies where a dividend of a controlled foreign company is paid during the second of the two accounting periods provided for by paragraph 7(2). For the purposes of Part 1 of Schedule 25 to ICTA, section 799 of that Act has effect as if the reference in subsection (3)(c) to the last period for which accounts of the company were made up which ended before the dividend became payable were to the first of the two accounting periods provided for by paragraph 7(2).

In section 706(2)(b) (notification of withdrawal and variation of certifications etc), for “28 days” substitute “15 days”.

Schedule 6 to FA 2000 (climate change levy) is amended as follows.

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

In section 36 of TMA 1970 (loss of tax brought about carelessly or deliberately etc), in subsections (2) and (3), for “for the purpose” substitute “in a case”.

A penalty is payable by a person (“P”) where P fails to make or deliver a return, or to deliver any other document, specified in the Table below on or before the filing date. Paragraphs 2 to 13 set out— If P’s failure falls within more than one paragraph of this Schedule, P is liable to a penalty under each of those paragraphs (but this is subject to paragraph 17(3)). In this Schedule— In the provisions of this Schedule which follow the Table—

P may appeal against a decision of HMRC that a penalty is payable by P. P may appeal against a decision of HMRC as to the amount of a penalty payable by P.

This paragraph applies for the construction of this Schedule. “HMRC” means Her Majesty’s Revenue and Customs. References to tax include construction industry deductions under Chapter 3 of Part 3 of FA 2004. References to a determination, in relation to an amount payable under PAYE regulations or under Chapter 3 of Part 3 of FA 2004, include a certificate. References to an assessment to tax, in relation to inheritance tax and stamp duty reserve tax, are to a determination.

Part 3 of FA 1996 (landfill tax) is amended as follows.

Part 1 of Schedule 5 (information) is amended as follows.

The repeal made by paragraph 10 comes into force on 1 September 2009. The amendment made by paragraph 11 has effect in relation to restoration of landfill sites commencing on or after 1 September 2009. The repeal of section 62 made by paragraph 4, and the repeal in section 49 made by paragraph 12—

Section 274 (limits on relief under sections 266 and 273) is amended as follows. In subsection (1), omit “or other sums”. In subsection (2)— Omit subsection (3). In subsection (4), omit “or other sum” (in both places). In the heading, for “sections 266 and 273” substitute “ section 266 ”.

In section 192 (relief for pension contributions at source), for subsection (4) substitute—

A claim for relief under paragraph 1 must be made— Paragraph 1 applies to professions and vocations as it applies to trades. Paragraph 1 is subject to paragraph 2 of Schedule 1B to TMA 1970 (claims for loss relief involving 2 or more years). Sections 61 to 63 of ITA 2007 (meaning of “making a loss in a tax year” etc and prohibition against double counting) have effect as if paragraph 1 were included in Chapter 2 of Part 4 of that Act. Subsections (1) to (3) of section 127 of that Act (UK furnished holiday lettings business treated as trade) have effect as if paragraph 1 were included in Part 4 of that Act. The reference in paragraph 3(1) of Schedule 2 to the Social Security Contributions and Benefits Act 1992 and the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (levy of Class 4 contributions with income tax) to section 64 of ITA 2007 includes paragraph 1.

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In section 13(7) (small companies' relief), omit “resident in the United Kingdom”.

In paragraph 116 of Schedule 29 to FA 2002 (assumptions for calculating chargeable profits of CFCs in connection with intangible fixed assets), omit paragraph (b) of sub-paragraph (2) (and the “or” before it).

Paragraph 125 (records) is amended as follows. A duty under regulations under this paragraph to preserve records may be discharged— subject to any conditions or exceptions specified in writing by the Commissioners. In sub-paragraph (9), omit “approval or” and “given or”.

Schedule 10 (returns, enquiries, assessments and appeals) is amended as follows. In paragraph 25(3) (determination of tax chargeable if no return delivered), for “six years” substitute “4 years”. In paragraph 27(2)(a) (determination superseded by actual self-assessment), for “six years” substitute “4 years”. Paragraph 31 (time limit for assessment) is amended in accordance with sub-paragraphs (5) to (8). In sub-paragraph (1), for “six years” substitute “4 years”. An assessment of a person to tax in a case involving a loss of tax brought about carelessly by the purchaser or a related person may be made at any time not more than 6 years after the effective date of the transaction to which it relates (subject to sub-paragraph (2A)). An assessment of a person to tax in a case involving a loss of tax— may be made at any time not more than 20 years after the effective date of the transaction to which it relates. In sub-paragraph (4)(a), for “three years” substitute “4 years”. In this paragraph “related person”, in relation to a purchaser, means— After paragraph 31 insert— In paragraph 34(2) (relief in case of mistake in return), for “six years” substitute “4 years”.

In Schedule 39 to FA 2008, omit paragraph 66 (saving for provisions of TMA 1970 as applied by OTA 1975).

An appeal under paragraph 13 is to be treated in the same way as an appeal against an assessment to the tax concerned (including by the application of any provision about bringing the appeal by notice to HMRC, about HMRC review of the decision or about determination of the appeal by the First-tier Tribunal or Upper Tribunal). Sub-paragraph (1) does not apply—

For the heading before paragraph 1 substitute—

In paragraph 6(1) of Schedule 14 (provisions ancillary to section 266), omit “, otherwise than in accordance with subsection (7) of that section,”.

In section 208 (unauthorised payments charge), for subsection (6) substitute—

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Section 505(1)(c) (charitable companies: general) is amended as follows. After sub-paragraph (ii) insert—. Omit sub-paragraph (iib).

In section 870 of CTA 2009 (assumptions for calculating chargeable profits of CFCs in connection with intangible fixed assets), omit—

Omit paragraph 126 (evidence of records that are required to be preserved).

Paragraph 8 of Schedule 14 (time limit for determination of penalties) is amended as follows. In sub-paragraph (2)— In sub-paragraph (3), insert at the end “(subject to any of the following provisions of this paragraph allowing a longer period)”. Where a person is liable to a penalty in a case involving a loss of tax brought about carelessly by the person (or by another person acting on that person’s behalf), the penalty may be determined, or the proceedings may be brought, at any time not more than 6 years after the relevant date (subject to sub-paragraphs (4B) and (5)). Where a person is liable to a penalty in a case involving a loss of tax— the penalty may be determined, or the proceedings may be brought, at any time not more than 20 years after the relevant date. Paragraph 31A of Schedule 10 (losses brought about carelessly or deliberately) applies for the purpose of this paragraph.

In consequence of the amendments made by this Schedule, omit—

On an appeal under paragraph 13(1) that is notified to the tribunal, the tribunal may affirm or cancel HMRC’s decision. On an appeal under paragraph 13(2) that is notified to the tribunal, the tribunal may— If the tribunal substitutes its decision for HMRC's, the tribunal may rely on paragraph 9— In sub-paragraph (3)(b) “flawed” means flawed when considered in the light of the principles applicable in proceedings for judicial review. In this paragraph “tribunal” means the First-tier Tribunal or Upper Tribunal (as appropriate by virtue of paragraph 14(1)).

After paragraph 1 insert—

In section 209 (unauthorised payments surcharge), for subsection (7) substitute—

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Section 95ZA (taxation of UK distributions received by insurance companies) is amended as follows. In subsection (1), for “section 1285” substitute “ section 130(2) ”. In subsection (2)(a), omit “resident in the United Kingdom”.

In consequence of the amendments made by paragraphs 1 to 4, omit—

For the heading before paragraph 2 substitute—

In section 215 (amount of lifetime allowance charge), after subsection (2) insert—

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After paragraph 2 insert—

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In section 795 (double taxation relief: computation of income subject to foreign tax), omit subsection (3A).

In section 240 (amount of scheme sanction charge), after subsection (3) insert—

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In section 242 (de-registration charge), insert at the end—

Omit sections 806A to 806K (double taxation relief in relation to foreign dividends: onshore pooling and utilisation of eligible unrelieved foreign tax).

Section 282 (orders and regulations) is amended as follows. After subsection (1) insert— In subsection (2), after “Part” insert “ , if made without a draft having been approved by a resolution of the House of Commons, ”.

In section 826 (interest on tax overpaid), omit subsection (7BC).

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In paragraph 5(3)(c) of Schedule 27 (distributing funds: United Kingdom equivalent profits)—

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