Предупреждение завоза малярии: доклад о совещании, организованном ВОЗ [в Вашингтоне, округ Колумбия, с 14 по 18 ноября 1966]
Income tax is charged for the tax year 2026-27.
For the tax year 2026-27 the main rates of income tax are as follows—
the basic rate is 20%,
the higher rate is 40%, and
the additional rate is 45%.
For the tax year 2026-27 the default rates of income tax are as follows—
the default basic rate is 20%,
the default higher rate is 40%, and
the default additional rate is 45%.
For the tax year 2026-27 the savings rates of income tax are as follows—
the savings basic rate is 20%,
the savings higher rate is 40%, and
the savings additional rate is 45%.
In section 8 of ITA 2007 (which provides, among other things, for the dividend ordinary rate and dividend upper rate)—
in subsection (1) (the dividend ordinary rate), for “8.75%” substitute “10.75%”, and
in subsection (2) (the dividend upper rate), for “33.75%” substitute “35.75%”.
The amendments made by this section have effect for the tax year 2026-27 and subsequent tax years.
For the tax year 2027-28 the savings rates of income tax are as follows—
the savings basic rate is 22%,
the savings higher rate is 42%, and
the savings additional rate is 47%.
Part 1 of ITA 2007 (rates at which income tax is charged etc) is amended as follows.
After section 6C insert—
After section 11C insert—
After section 16 insert—
After section 17 insert—
In section 25 (reliefs and allowances deductible at Steps 2 and 3: supplementary), after subsection (3) insert—
Schedule 1 makes amendments in connection with, or otherwise related to, provision made by this section and section 5 (including amendments concerning savings rates).
The amendments made by this section and that Schedule have effect for the tax year 2027-28 and subsequent tax years.
For the tax year 2027-28 the property rates of income tax are as follows—
the property basic rate is 22%,
the property higher rate is 42%, and
the property additional rate is 47%.
Schedule 2 makes provision for Scottish and Welsh property rates to be set by the Scottish Parliament and Senedd Cymru.
This section and that Schedule come into force on such day as the Treasury may by regulations appoint.
The amendments made by this section and that Schedule have effect in relation to—
the tax year appointed by the Treasury by regulations, and
subsequent tax years.
The tax year appointed under subsection (3)—
must be a tax year after the tax year 2026-27, and
must begin on or after the day appointed under subsection (2).
Regulations under this section may appoint different days for different purposes.
For further provision about regulations under this section, see section 1014(1), (3) and (6)(b) of ITA 2007.
For the tax years 2026-27, 2027-28, 2028-29, 2029-30 and 2030-31, the amount specified in section 12(3) of ITA 2007 (the starting rate limit for savings) is “£5,000”.
Accordingly, section 21 of that Act (indexation) does not apply in relation to the starting rate limit for savings for any of those tax years.
Section 5 of FA 2021 (basic rate limit and personal allowance for tax years up to 2027-28) is amended as follows.
In subsection (1) (which specifies the basic rate limit in section 10(5) of ITA 2007 as £37,700 for tax years up to 2027-28), for “and 2027-28” substitute “, 2027-28, 2028-29, 2029-30 and 2030-31”.
In subsection (2) (which specifies the personal allowance in section 35(1) of ITA 2007 as £12,570 for tax years up to 2027-28), for “and 2027-28” substitute “, 2027-28, 2028-29, 2029-30 and 2030-31”.
In subsection (3) (which makes consequential provision preventing the uprating of those amounts for the affected tax years), in the words after paragraph (b), for “and 2027-28” substitute “, 2027-28, 2028-29, 2029-30 and 2030-31”.
Corporation tax is charged for the financial year 2027.
The main rate of corporation tax for that year is 25%.
For the purposes of Part 3A of CTA 2010, for the financial year 2027—
the standard small profits rate is 19%, and
the standard marginal relief fraction is 3/200ths.
In section 529 of ITEPA 2003 (scope of tax advantages: option must be exercised within 10 years)—
in the heading, for “within 10 years” substitute “by the specified anniversary”;
in subsection (2), for “tenth” substitute “specified”;
after subsection (2) insert—.
Schedule 5 to ITEPA 2003 is amended as set out in subsections (3) to (7).
In paragraph 7 (maximum value of options in respect of relevant company’s shares)—
in sub-paragraph (1), after “exceed” insert—;
in sub-paragraph (2), after “option if the” insert “applicable”;
in sub-paragraph (4), after “applies” insert “(but see sub-paragraph (5A))”;
If— the share options in respect of which the employer company is a specified Northern Ireland company are, for the purposes of this paragraph, to be treated as having been granted before the other share options.
In paragraph 12 (the gross assets requirement)—
in sub-paragraph (1) after “exceed” insert—.
in sub-paragraph (2) after “exceed” insert—.
In paragraph 12A (the number of employees requirement)—
in sub-paragraph (1) after “less than” insert—;
in sub-paragraph (2) after “less than” insert “500 or, where the employer company is a specified Northern Ireland company,”
In paragraph 36 (option to be capable of exercise within ten years)—
in the italic cross-heading, for “10 years” substitute “the specified period”;
in sub-paragraph (1), for “the period of 10 years” substitute “the specified period”;
in sub-paragraph (2), for “the period mentioned in sub-paragraph (1)” substitute “the specified period”;
In this paragraph, the “specified period” means—
After paragraph 57E, insert—.
In section 169I(7D)(b) of TCGA 1992 (material disposal of business assets)—
for “tenth ” substitute “specified”;
at the end insert “(with “specified anniversary” having the meaning given in section 529(2A) of that Act)”.
The amendments made by subsections (1) to (8) come into force on 6 April 2026.
On and after 6 April 2026, Schedule 5 to ITEPA 2003 has effect in relation to an option granted before 6 April 2026 as if the following paragraph were inserted after paragraph 37—.
Part 5 of ITA 2007 is amended as follows.
In section 173A(1) (the maximum amount raised annually through risk finance investments requirement), for paragraphs (a) and (b) substitute—.
In section 173AA(1) (maximum risk finance investments at the issue date requirement), for paragraphs (a) and (b) substitute—.
In section 173AB(4) (maximum risk finance investments during period B requirement) for paragraphs (a) and (b) substitute—.
In section 175 (the use of the money raised requirement)—
in subsection (1), for “The” substitute “A”;
after subsection (1A), insert—.
In section 186 (the gross assets requirement)—
before subsection (1), insert—;
in subsection (1), after “single company” insert “that is a specified Northern Ireland company”;
in subsection (2), after “parent company” insert “that is a specified Northern Ireland company”.
After section 256A, insert—.
The amendments made by this section come into force on 6 April 2026.
Part 6 of ITA 2007 is amended as follows.
In section 263(2) (form and amount of relief), for “30%” substitute “20%”.
In section 292A(1) (the maximum amount raised annually through risk finance investments requirement ), for paragraphs (a) and (b) substitute—.
In section 292AA(1) (maximum risk finance investments when relevant holding is issued requirement), for paragraphs (a) and (b) substitute—.
In section 292AB(4) (maximum risk finance investments during the 5-year post-investment period requirement), for paragraphs (a) and (b) substitute—.
In section 293 (the use of the money raised requirement)—
in subsection (1), for “The” substitute “A”;
after subsection (5A) insert—.
In section 297 (the gross assets requirement)—
before subsection (1) insert—;
in subsection (1), after “single company” insert “and a specified Northern Ireland company”;
in subsection (2), after “parent company” insert “and a specified Northern Ireland company”.
After section 331B, insert—.
The amendments made by this section come into force on 6 April 2026.
If— the provision mentioned in paragraph (c) is to be treated for the purposes of the CSOP code as if it had been included in the share option at the time at which the option was granted.
a share option is granted under a CSOP scheme before 6 April 2028,
the terms of the option which are mentioned in paragraph 21A(1)(d) of Schedule 4 to ITEPA 2003 are, at any time on or after 15 May 2025, varied, and
the sole effect of the provision constituting the variation is that, in the event that the shares are or become PISCES shares, the option may be exercised (to any extent) but only if the shares acquired as a result of its exercise are then sold on a PISCES as soon as is reasonably practicable,
Subsection (1) is to have effect as if contained in Schedule 4 to ITEPA 2003.
If— the provision mentioned in paragraph (c) is to be treated for the purposes of the EMI code as if it had been included in the share option at the time at which the option was granted.
a share option which is a qualifying option for the purposes of the EMI code is granted before 6 April 2028,
the terms of the option which are mentioned in paragraph 37(2)(e) of Schedule 5 to ITEPA 2003 are, at any time on or after 15 May 2025, varied, and
the sole effect of the provision constituting the variation is that, in the event that the shares are or become PISCES shares, the option may be exercised (to any extent) but only if the shares acquired as a result of its exercise are then sold on a PISCES as soon as is reasonably practicable,
Subsection (3) is to have effect as if contained in Schedule 5 to ITEPA 2003.
A variation of an option is not to count for the purposes of this section unless—
the variation is effected by a written agreement to which the person entitled to exercise the option is a party, or
the variation is otherwise notified in writing to that person.
For the purposes of this section, “PISCES shares” and “a PISCES” have the same meaning as in the applicable PISCES regulations.
For this purpose, “the applicable PISCES regulations” means—
the Financial Services and Markets Act 2023 (Private Intermittent Securities and Capital Exchange System Sandbox) Regulations 2025 (“the 2025 regulations”), or
if regulations are made under section 15 of the Financial Services and Markets Act 2023 (“the 2023 Act”) in the case of a PISCES, regulations under that section.
If— this section has effect as if the references to PISCES shares or a PISCES are to those other expressions.
regulations made under section 15 of the 2023 Act use expressions other than PISCES shares or a PISCES, but
those other expressions are used in those regulations for the same or similar purposes as the expressions PISCES and a PISCES are used in the 2025 regulations,
Chapter 6 of Part 3 of ITEPA 2003 (taxable benefits: cars, vans and related benefits) is amended in accordance with subsections (2) to (4).
In section 114(1)(a) (cars, vans and related benefits)—
omit “(without any transfer of the property in it)”;
after “household” insert —.
In section 116(1) (meaning of when car or van is available to employee)—
omit “and without any transfer of the property in it”;
after “household” insert —
After section 116 insert—
The amendments made by subsections (2) to (4) have effect for the tax year 2030-31 and subsequent tax years.
But in relation to a car or van made available to an employee or a member of the employee’s family or household pursuant to pre-6 April 2030 arrangements, the amendments made by subsections (2) to (4) have effect for the tax year 2032-33 and subsequent tax years.
If pre-6 April 2030 arrangements are varied or renewed on or after 6 April 2030, the car or van is treated, with effect from the beginning of the day on which the variation or renewal takes effect, as not being made available pursuant to pre-6 April 2030 arrangements.
In subsection (7) the reference to arrangements being varied does not include any variation which is required for reasons beyond the control of the parties to the arrangements.
In this section “pre-6 April 2030 arrangements” means arrangements which are entered into before 6 April 2030.
In section 117 of ITEPA 2003 (meaning of car or van made available by reason of employment)—
in subsection (1), for “or (3)” substitute “, (3) or (4)”;
after subsection (3) insert—
The amendments made by subsection (1) have effect for the tax year 2026-27 and subsequent tax years.
Chapter 6 of Part 3 of ITEPA 2003 (taxable benefits: cars etc) is amended in accordance with subsections (2) and (3).
In section 136A (cars with a CO2 emissions figure: registration on or after IP completion day), after subsection (4) insert—
After section 138 insert—
The amendments made by subsections (2) and (3) have effect—
for the tax years 2024-25 to 2027-28, and
in relation to a car to which subsection (5) applies, for the tax years 2028-29 to 2030-31.
This subsection applies to a car made available to an employee or a member of the employee’s family or household pursuant to pre-6 April 2028 arrangements.
Where— the car is treated as being made available by the employer to the other employee or member pursuant to pre-6 April 2028 arrangements.
a car is made available by an employer to an employee or a member of the employee’s family or household pursuant to pre-6 April 2028 arrangements, and
the arrangements are varied on or after 6 April 2028 only so far as is necessary to ensure that the car is made available by the employer to another employee or a member of the other employee’s family or household pursuant to the arrangements,
If pre-6 April 2028 arrangements are otherwise varied or renewed on or after 6 April 2028, the car is treated, with effect from the beginning of the day on which the variation or renewal takes effect, as not being made available pursuant to pre-6 April 2028 arrangements.
In subsection (7) the reference to arrangements being varied does not include a variation which is required for reasons beyond the control of the parties to the arrangements.
In this section “pre-6 April 2028 arrangements” means arrangements which are entered into before 6 April 2028.
Sections 136A(5) and 138A of ITEPA 2003, and subsections (1) to (3) of this section, are repealed.
Subsection (10) comes into force on 6 April 2031.
Chapter 11 of Part 4 of ITEPA 2003 (employment income: miscellaneous exemptions) is amended in accordance with subsections (2) to (4).
After section 316 insert—
In section 320A (eye tests and special corrective appliances)—
after subsection (1) insert—;
in subsection (3), after “regulations” insert “, whether by way of provision under subsection (1) or payment or reimbursement under subsection (1A)”.
After section 320C insert—
In section 266(3) of ITEPA 2003 (exemption of non-cash vouchers for exempt benefits)—
omit the “or” after paragraph (f);
after paragraph (g) insert , or
In section 267(2) of ITEPA 2003 (exemption of credit-tokens used for exempt benefits)—
omit the “and” after paragraph (h);
after paragraph (i) insert , and
The amendments made by this section have effect in relation to the tax year 2026-2027 and subsequent tax years.
After section 360A of ITEPA 2003 (no deduction from earnings for social security contributions) insert—
The amendment made by this section has effect for the tax year 2026-27 and subsequent tax years.
After section 221 of ITEPA 2003 (payments where employee absent because of sickness or disability) insert—
The amendment made by this section comes into force on the first day on which the duty in section 27BP(1) of the Employment Rights Act 1996 has effect.
ITEPA 2003 is amended as follows.
In section 27 (UK-based earnings for year when employee not resident in UK)—
in subsection (1)—
at the end of paragraph (a) insert “that do not fall within paragraph (c)”;
at the end of paragraph (b) insert “that do not fall within paragraph (c)”;
at the end of paragraph (c) insert “and which have been reduced by a claim for relief under section 414 (reduction in other cases of foreign service)”;
in subsection (2), for “(1)(a) or (b)” substitute “(1)”;
omit subsection (2A);
in subsection (3), for “Subsections (2) and (2A) apply” substitute “Subsection (2) applies”.
In section 38 (earnings for period of absence from employment)—
in subsection (1), for “This section” substitute “Subsection (2)”;
after subsection (2) insert—
After section 38 (earnings for period of absence from employment) insert—
In section 41Y (location of employment duties), in subsection (1), for “applies” substitute “and section 38A (earnings in respect of duties not performed) apply”.
In section 402B (termination awards not benefiting from threshold to be treated as earnings), omit subsection (1)(b) (and the “but” before it).
The amendments made by this section have effect in relation to general earnings that are, for the purposes of Chapter 4 or 5 of Part 2 of ITEPA 2003—
for tax years 2026-27 and subsequent tax years, and
treated as received on or after 6 April 2026.
ITEPA 2003 is amended as follows.
In Part 2 (employment income: charge to tax), after Chapter 10 insert—
In section 7 (meaning of employment income etc), in subsection (5)(a)—
for “10” substitute “11”, and
omit “and”, and
after “companies” insert “and purported umbrella companies”.
In section 44 (treatment of workers supplied by agencies)—
in subsection (4), omit paragraph (b) (and the “or” before it),
in subsection (5)(b), omit “or (as the case may be) with the relevant person”, and
omit subsection (6).
In section 61V (consequences of providing fraudulent information), after subsection (4) insert—
Provision in connection with the recovery of amounts to which a person is jointly and severally liable as a result of Chapter 11 of Part 2 (umbrella companies).
In section 689(4) (employee of non-UK employer), after “sections” insert “61Z1(5)(c)(i),”.
In section 716B (employment intermediaries to keep, preserve and provide information etc)—
in subsection (1)—
omit “of Part 2”, and
after “agencies)” insert “or 11 (umbrella companies) of Part 2”, and
in subsection (2), in the words before paragraph (a)—
after “person” insert “(other than an individual mentioned in paragraph (a) or (b))”, and
after “makes” insert “or participates in”.
In regulation 69 of the Income Tax (Pay As You Earn) Regulations 2003, in paragraph (1A)—
the words from “any amount” to the end become sub-paragraph (a),
in that sub-paragraph, omit the words from “whether” to the end, and
whether or not those amounts were included in any return under regulation 67B (real time returns of information about relevant payments) or 67D (exceptions to regulation 67B).
In regulation 80 of those Regulations (determination of unpaid tax and appeal against determination), after paragraph (5) insert—
The amendments made by this section have effect in relation to payments made on or after 6 April 2026.
The Treasury must by regulations provide for a scheme under which persons who are liable to pay loan charge amounts may enter into an agreement (“a settlement agreement”) with the Commissioners as regards those amounts.
The scheme must provide that the Commissioners must, in accordance with the scheme, make an offer to enter into a settlement agreement (“a settlement offer”) to every person who—
they believe is liable to pay loan charge amounts, and
is not a person who the Commissioners reasonably suspect is, or has at any time been—
a promoter or introducer for the purposes of Part 7 of FA 2004 (disclosure of tax avoidance schemes), or
a director or shadow director of such a person.
The scheme must provide that a settlement offer made to a person (P) must—
set out the terms of the proposed settlement agreement, including—
the loan charge amounts to which it would apply (“relevant loan charge amounts”), and
the amount P would instead be required to pay under it (“settlement amount”), and
remain open to P for such reasonable period as may be specified by the scheme.
The scheme must provide that the relevant loan charge amounts must not include loan charge amounts which are the subject of, or under, a contract settlement entered into before 1 June 2021.
The scheme must provide that if P enters into the proposed settlement agreement with the Commissioners—
every relevant loan charge amount ceases to be, or will no longer become, payable by P, but
P is instead liable to pay the settlement amount.
The scheme must provide for the calculation of P’s settlement amount and must secure—
that amounts are arrived at by—
determining the value of the Schedule 11 or 12 to F(No. 2)A 2017 loans and quasi-loans to which the relevant loan charge amounts are connected,
determining the other amounts paid to P under the arrangements under which those loans or quasi-loans were made,
determining the amounts charged to P (as deductions, fees or otherwise) under those arrangements,
attributing the amounts determined as mentioned in sub-paragraphs (i) to (iii) to tax years in accordance with the scheme and assuming that income tax and national insurance contributions were payable as regards those tax years in relation to those amounts, and
on that assumption, determining the total amount for each of those tax years of the additional income tax and national insurance contributions which would have been payable by P as regards the tax year (“starting amount”),
that the starting amount for each tax year is lowered (but not below nil) by the amount that results from adding together—
the amount of reduction given by reducing by 10% the first £50,000 of the total amount attributed to the tax year under paragraph (a)(iv), and
the amount of reduction given by reducing by 5% the next £100,000 of that total,
that the amounts produced by this are added together and the resulting amount is lowered by £5,000 (but not below nil),
that this lowered amount is the settlement amount, unless it is more than £70,000 lower than P’s loan charge gross liability, and
that, if that lowered amount is more than £70,000 lower than P’s loan charge gross liability, the settlement amount is instead P’s loan charge gross liability minus £70,000.
In this section—
a day that is a bank holiday in any part of the United Kingdom under the Banking and Financial Dealings Act 1971.
in relation to a declaration provided under section 86(5)(b)(ii) of FA 2022, a proposal or arrangements, with those terms having the same meaning as in that section;
“information” includes a document (and see subsection (2));
is payable, or becomes payable in the future, to the Commissioners under or by virtue of any enactment or under a contract settlement, and
“the Commissioners” means the Commissioners for His Majesty’s Revenue and Customs;
A reference in this section to a Schedule 11 or 12 to F(No. 2)A 2017 loan or quasi-loan is to—
a loan or quasi-loan (within the meaning of paragraph 2 of Schedule 11 to F(No. 2)A 2017) by reason of which a person is treated, under paragraph 1 of Schedule 11 to F(No. 2)A 2017, as taking a relevant step for the purposes of Part 7A of ITEPA 2003, or
a loan or quasi-loan (within the meaning of paragraph 2 of Schedule 12 to F(No. 2)A 2017) which is treated for the purposes of sections 23A to 23H of ITTOIA 2005 as a relevant benefit by reason of paragraph 1 of Schedule 12 to F(No. 2)A 2017.
In this section—
“the Commissioners” means the Commissioners for His Majesty’s Revenue and Customs;
“contract settlement” has the meaning given by section 25 of CRCA 2005;
“authorised officer of Revenue and Customs” means an officer of Revenue and Customs who is, or is a member of a class of officers who are, authorised by the Commissioners for the purpose of this Chapter;
The scheme may provide that, if a person enters into a settlement agreement, amounts of inheritance tax payable by the person which— cease to payable by the person.
arise as a result of transfers of value and other occasions of charge occurring—
in connection with a settlement (within the meaning of section 43 of IHTA 1984) used as part of arrangements under which the relevant Schedule 11 or 12 to F(No. 2)A 2017 loans and quasi-loans were made, and
before the end of 3 months after the date on which the settlement offer, in relation to the settlement agreement, was made to the person, and
have not yet been paid,
The scheme may provide, if a person enters into a settlement agreement, for adjustments in amounts of inheritance tax payable by other persons which—
arise as mentioned in subsection (1)(a),
are attributable to property used for making the relevant Schedule 11 or 12 to F(No. 2)A 2017 loans and quasi-loans, and
have not yet been paid.
The scheme must provide that, if a person enters into a settlement agreement, no relevant Schedule 11 or 12 to F(No. 2)A 2017 loan or quasi-loan is to be treated as a liability for the purposes of section 5(3) of IHTA 1984.
In this section, references to relevant Schedule 11 or 12 to F(No. 2)A 2017 loans and quasi-loans are to the Schedule 11 or 12 to F(No. 2)A 2017 loans and quasi-loans to which the loan charge amounts to which the settlement agreement applies are connected.
Expressions used in this section and section 25 have the same meaning in this section as they have in section 25.
In this section, “transfer of value” has the same meaning as in IHTA 1984 (see, in particular, section 3 of that Act).
The scheme may make provision—
about the process of making settlement offers and entering into settlement agreements;
for settlement offers to be conditional upon the persons to whom they are made doing specified things;
about the terms which may, must or may not be included in settlement agreements;
supplementing—
provision made under section 25(6) about the calculation of settlement amounts, and
the definitions in section 25(7) of “loan charge amount” and “loan charge gross liability”;
adapting provision made under section 25(6), in cases where a settlement offer is made to a person who is not an individual, about the calculation of settlement amounts (including provision for the calculation to be different to what is required by section 25(6));
for the use of estimates in relation to any amount;
about liabilities which are incidental to, or otherwise connected with, loan charge amounts;
for amounts paid by a person towards the person’s loan charge gross liability to be credited against a liability of the person to pay a settlement amount (but to no greater extent than discharging that liability);
for anything else the Treasury consider appropriate for the purpose of the scheme.
The things specified under subsection (1)(b) may include, for example, a person to whom a settlement offer is made entering into a contract settlement in relation to amounts specified in the settlement offer which—
are not loan charge amounts,
are payable, or become payable in the future, to the Commissioners by the person under or by virtue of any enactment, and
have not yet been paid.
The provision which may be made under subsection (1)(d)(ii) includes provision setting out the descriptions of amounts which arise in connection with a Schedule 11 or 12 to F(No. 2)A 2017 loan or quasi-loan.
The provision which may be made under subsection (1)(g) includes provision—
treating penalties, or other amounts which are not loan charge amounts but are connected with them, as never having arisen or ceasing to be payable, and
crediting amounts paid towards such liabilities against other liabilities to pay a settlement or other amount to the Commissioners or for the Commissioners to repay those paid amounts.
The scheme may make—
different provision for different purposes or cases;
provision generally or for specified cases;
provision subject to exceptions;
incidental, supplementary, consequential or transitional provision.
Regulations providing for the scheme are to be made by statutory instrument and are subject to annulment in pursuance of a resolution of the House of Commons.
A settlement agreement is a contract settlement for the purposes of sections 25 and 25A of CRCA 2005.
Expressions used in this section and section 25 or 26 have the same meaning in this section as they have in section 25 or 26.
In section 56 of CAA 2001 (amount of plant and machinery allowances), in subsection (1) (which specifies the main rate of writing-down allowances), for “18%” substitute “14%”.
The amendment made by subsection (1) has effect in relation to chargeable periods beginning on or after the relevant day, that is to say—
for corporation tax purposes, 1 April 2026, and
for income tax purposes, 6 April 2026.
The amendment made by subsection (1) also has effect in relation to chargeable periods beginning before and ending on or after the relevant day but as if the reference to 14% were a reference instead to X%.
For this purpose X is found by adding (18 x BRD/CP) to (14 x ARD/CP).
Where X would be a figure with more than 2 decimal places, it is to be rounded up to the nearest second decimal place.
In subsection (4)—
Part 2 of CAA 2001 (plant and machinery allowances) is amended as follows.
section 45U expenditure on plant or machinery in cases not falling within section 45S etc
After section 45T insert—
In section 46 (general exclusions)—
section 45U (expenditure on plant or machinery in cases not falling within section 45S etc)
after subsection (4A) insert—
Expenditure qualifying under section 45U (expenditure on plant or machinery in cases not falling within section 45S etc) 40%
In— for “2026” substitute “2027”.
section 45D of CAA 2001 (expenditure on zero-emission cars), in subsection (1B)(a) and (b) (which specify the date on or before which expenditure must be incurred to qualify for a first-year allowance), and
section 45EA of that Act (expenditure on plant or machinery for electric vehicle charging point), in subsection (3)(a) and (b) (which specify the date on or before which expenditure must be incurred to qualify for a first-year allowance),
In section 1042N of CTA 2009 (amounts surrendered to other group companies), after subsection (4) insert—
In section 1179CE of CTA 2009 (amounts surrendered to other group companies), after subsection (4) insert—
The amendments made by this section have effect in relation to payments made on or after 26 November 2025.
Schedule 2 to FA 2024 (expenditure credits for films, television programmes and video games) is amended as follows.
After paragraph 24 insert—
In paragraph 18 (opting into new regime during transitional period), in sub-paragraph (5)(b), for “24” substitute “24A”.
The amendments made by this section have effect in relation to elections made under section 1179B(1) of CTA 2009 in relation to any opt-in period commencing on or after 26 November 2025.
Section 1179EC of CTA 2009 (special credit for visual effects) is amended as follows.
In subsection (2)—
omit the “and” after paragraph (a),
after that paragraph insert—, and
in paragraph (b)—
omit “where a claim has been made for Chapter 3 credit (whether for the claim period or earlier),”, and
for “such claims” substitute “Chapter 3 credit claims in respect of the film or television programme”.
In subsection (3)(b) for paragraph (i) substitute—.
In subsection (4)—
in the words before Step 1, for “previously claimed Chapter 3 credits” substitute “Chapter 3 credits claimed in respect of the film or television programme”, and
in Step 1—
in the words before paragraph (a) omit “(see section 1179CA(2))”, and
in that paragraph omit “(see section 1179AB)”.
After subsection (6) insert—
The amendments made by this section have effect in relation to any claim made for Chapter 3 credit, or an additional amount of audiovisual expenditure credit, for accounting periods beginning on or after 26 November 2025.
In section 1138A(1)(b) of CTA 2009, at beginning insert “for the purposes of relief under Chapter 2”.
The amendment made by subsection (1) has effect in relation to claims made on or after 30 October 2024.
Section 236H of TCGA 1992 (disposals to employee-ownership trusts) is amended as follows.
For subsection (2) substitute—
In subsection (3), for “The”, in the first place it occurs, substitute “Where this subsection applies, the”.
The amendments made by this section have effect in relation to disposals made on or after 26 November 2025.
TCGA 1992 is amended as follows.
In section 103G (exchange of units for those in another collective investment scheme), in subsection (4), for “section 103K(1)” to the end of the subsection substitute “section 103K (anti-avoidance)”.
In section 103H (scheme of reconstruction involving issue of units), in subsection (5), for “section 103K(1)” to the end of the subsection substitute “section 103K (anti-avoidance)”.
In section 103I (scheme of reconstruction involving conversion scheme), in subsection (4), for “section 103K(1)” to the end of the subsection substitute “section 103K (anti-avoidance)”.
In section 103K (restriction on application of sections 103G, 103H and 103I)—
at the end of the heading insert “: anti-avoidance”;
for subsection (1) substitute—;
omit subsections (2) and (3);
in subsection (4)—
for “subsection (1) above” substitute “this section”;
in paragraph (a), after “chargeable participant” insert “as part of the exchange or scheme of reconstruction”;
after subsection (6) insert—
The amendments made by this section have effect in relation to arrangements involving an issue of units in a collective investment scheme on or after 26 November 2025.
But those amendments do not have effect in a case where—
a participant in a collective investment scheme has made an application under section 138(1) of TCGA 1992 (as applied by section 103K(6) of that Act) before 26 November 2025,
the Commissioners for His Majesty’s Revenue and Customs have notified the participant of their satisfaction, or the tribunal has notified the participant of its satisfaction, in relation to the application under section 138(1) or (4) of TCGA 1992, and
the issue of units in a collective investment scheme in respect of which the application was made occurs before 26 January 2026 or, if later, before the end of the period of 60 days beginning with the day on which the notification mentioned in paragraph (b) was made.
TCGA 1992 is amended as follows.
In section 135 (exchange of securities for those in another company), in subsection (6), for “section 137(1)” to the end of the subsection substitute “section 137 (anti-avoidance)”.
In section 136 (scheme of reconstruction involving issue of securities), in subsection (6), for “section 137(1)” to the end of the subsection substitute “section 137 (anti-avoidance)”.
In section 137 (restriction on company reconstruction provisions)—
at the end of the heading insert “: anti-avoidance”;
for subsection (1) substitute—;
omit subsections (2) and (3);
in subsection (4)—
for “subsection (1) above” substitute “this section”;
in paragraph (a), after “chargeable person” insert “as part of the exchange or scheme of reconstruction”;
after subsection (6) insert—
In section 138 (procedure for clearance in advance)—
in subsection (1)—
for “shall not affect the operation of section 135 or 136” substitute “does not apply”;
after “the issue” insert “of shares or debentures mentioned in section 135(1) or 136(1)”;
for “section 137(1)”, in the first place it appears, substitute “section 135(1) or 136(1)”;
for “for bona fide” to the end of the subsection substitute “without arrangements in respect of which section 137 applies.”;
after subsection (5) insert—
The amendments made by this section have effect in relation to arrangements involving an issue of shares in, or debentures of, a company on or after 26 November 2025.
But those do not have effect in a case where—
a company has made an application under section 138(1) of TCGA 1992 before 26 November 2025,
the Commissioners for His Majesty’s Revenue and Customs have notified the company of their satisfaction, or the tribunal has notified the company of its satisfaction, in relation to the application under section 138(1) or (4) of TCGA 1992, and
the issue of shares or debentures in respect of which the application was made occurs before 26 January 2026 or, if later, before the end of the period of 60 days beginning with the day on which notification mentioned in paragraph (b) was made.
In section 139 (reconstruction involving transfer of business)—
after subsection (4) insert—
in subsection (5)—
for the words from the beginning of the subsection to “operation of this section” substitute “Subsections (4A) to (4D) do not apply”;
for “for bona fide” to the end of the first sentence substitute “without arrangements in respect of which subsection (4B) applies.”;
in subsections (6) and (7), for “subsection (5)” substitute “subsection (4B)”;
after subsection (9) insert—
The amendments made by this section have effect in relation to arrangements involving the transfer of assets of a business on or after 26 November 2025.
But this section does not have effect in relation to a case where—
a company has made an application under section 139(5) of TCGA 1992 before 26 November 2025,
the Commissioners for His Majesty’s Revenue and Customs have notified the company of their satisfaction under that subsection, or the tribunal has notified the company of its satisfaction under section 138(4) of TCGA 1992 (as applied by section 139(5) of that Act), in relation to the application, and
the transfer of assets in respect of which the application was made occurs before 26 January 2026 or, if later, before the end of the period of 60 days beginning with the day on which notification mentioned in paragraph (b) was made.
Section 162 of TCGA 1992 (roll-over relief on transfer of business) is amended as follows.
In subsection (1)—
the words from “a person who is not a company” to the end of the first sentence of the subsection become paragraph (a);
after that paragraph insert , and
After subsection (5) insert—
Omit section 162A of TCGA 1992 (election for section 162 not to apply).
The amendments made by this section have effect in relation to transfers of businesses made on or after 6 April 2026.
Part 4 of Schedule 1A to TCGA 1992 (anti-avoidance relating to assets deriving 75% of value from UK land) is amended as follows.
For the heading of the Part substitute “Cell companies and anti-avoidance”.
Before paragraph 11 insert—.
The amendments made by this section have effect in relation to disposals made on or after 26 November 2025.
Where sub-paragraph (1A) would apply as regards a company if the company were to make a claim to obtain relief under section 6(2)(a) or (3)(a) of TIOPA 2010 in respect of a disposal that has an appropriate connection to a collective investment vehicle for the purposes of paragraph 6 of Schedule 5AAA to TCGA 1992, the company is not required to make such a claim in order to obtain relief in respect of the disposal (despite section 6(6) of TIOPA 2010).
In section 55A of FA 2004 (exception to duty to give notice to coming within charge to corporation tax), after subsection (4) insert—
In Schedule 2 to FA 2019—
in the heading before paragraph 10 (no return required in respect of disposal connected to CIS), for “schemes” substitute “vehicles”;
in paragraph 10—
for “scheme” substitute “vehicle”;
If, by virtue of sub-paragraph (1), a person is not required to make or deliver a return under this Schedule in respect of a disposal, the person is not required to make a claim to obtain relief under section 6(2)(a) or (3)(a) of TIOPA 2010 in respect of the disposal (despite subsection (6) of that section).
in paragraph 11(1)(a)—
for “CIS” substitute “CIV”;
for “scheme” substitute “vehicle”;
in paragraph 11(1)(b), for “subject of the scheme” substitute “subject of or held by the vehicle”;
in paragraph 12(1)(a), for “CIS” substitute “CIV”.
The amendments made by subsections (1) and (2) have effect in relation to disposals made on or after 1 April 2026.
The amendments made by subsection (3) have effect in relation to disposals made on or after 6 April 2026.
Omit section 399 of ITTOIA 2005 (tax treated as paid on distributions received by non-UK resident persons).
In ITA 2007—
in section 425 (total amount of income tax to which individual charged for a tax year), in subsection (5)(a), omit sub-paragraph (i);
in section 1026 (meaning of “non-qualifying income”), omit paragraph (a).
In TMA 1970—
in section 9 (returns to include self-assessment), in subsection (1), in the closing words, omit “or section 399(2)”;
in section 59B (payment of income tax and capital gains tax), in subsection (1), in the closing words, omit “or section 399(2)”.
In the Unauthorised Unit Trusts (Tax) Regulations 2013 (S.I. 2013/2819), in regulation 12 (treatment of income of an exempt unauthorised unit trust), omit paragraph (3)(b).
The amendments made by this section have effect for the tax year 2026-27 and subsequent tax years.
Part 1 of Schedule 3 makes provision about income tax and capital gains tax in connection with whether an individual has been non-UK resident or domiciled outside the United Kingdom, including—
provision about the reliefs for qualifying new residents,
provision about the residency of personal representatives, and
provision about former users of the remittance basis.
Part 2 of that Schedule makes provision amending Schedule 10 to FA 2025 (temporary repatriation facility).
Part 3 of that Schedule makes provision about individuals who have been temporarily non-resident.
In Chapter 5 of Part 5 of ITTOIA 2005 (settlements), in section 643C (meaning of “available protected income”)—
in subsection (1), in Step 5, after “within” insert “Step 2 or”;
in subsection (3)(b), at the end insert “and not exempt from income tax by virtue of any of sections 737 to 742A of that Act”.
In Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad), in section 733 (benefits charge: amount of deemed income), in subsection (2B)—
in paragraph (a), for “732(2)” substitute “721, 728 or 732”;
in the words after paragraph (b), omit “under section 731”.
In section 87HA of TCGA 1992 (onward gifts from non-residents or qualifying new residents), in subsections (2) and (3), omit “capital”.
In FA 2025, in Schedule 12 (trust protections), in Part 4 (commencement and transitional provision), after paragraph 70 insert—
The amendments made by subsection (1) come into force on 6 April 2026.
The amendments made by subsections (2) to (4) are treated as having come into force on 6 April 2025.
Schedule 4—
makes provision for employer PAYE notifications in respect of treaty non-resident employees, and
makes other amendments to sections 690 to 690E of ITEPA 2003 in relation to the making of employer PAYE notifications and HMRC PAYE directions.
The amendments made by Schedule 4 have effect for the tax year 2026-27 and subsequent tax years (but see paragraph 8(2) of that Schedule).
Schedule 5 provides—
for a power of His Majesty’s Revenue and Customs to assess “unassessed transfer pricing profits”,
for those profits to be subject to a higher rate of corporation tax (rather than the main or any other rate), and
for the abolition of diverted profits tax (which is superseded).
The amendments made by that Schedule have effect in relation to accounting periods beginning on or after 1 January 2026.
Schedule 6 makes provision about, and in connection with, transfer pricing.
The Commissioners for His Majesty's Revenue and Customs may by regulations make provision—
requiring persons specified for the purposes of this paragraph (“reporting entities”) to provide an officer of Revenue and Customs with information of specified descriptions in connection with specified international controlled transactions;
requiring reporting entities to provide the information—
at specified times,
in relation to specified periods of time, and
in a specified form and manner;
imposing obligations on reporting entities (including obligations to obtain information from specified persons for the purposes of complying with requirements imposed by virtue of paragraph (a));
about contravention of, or non-compliance with, the regulations (including provision imposing penalties);
about appeals in relation to the imposition of any penalty.
The regulations may—
make different provision for different purposes;
make provision by reference to things specified in a notice published by the Commissioners (as revised or replaced from time to time) in accordance with the regulations;
allow any requirement, obligation or other provision that may be imposed or made by reference to subsection (1)(a) to (c) to be made by specific or general direction given by the Commissioners;
make provision under which the Commissioners or other persons may exercise discretions.
For the purposes of subsection (1)—
“specified” means specified in the regulations, and
a transaction is an international controlled transaction if the transfer pricing condition or the permanent establishment condition is met in relation to it.
The transfer pricing condition is that—
the transaction, or a series of transactions of which the transaction forms part, is the means by which provision (within the meaning of Part 4 of TIOPA 2010) has been made or imposed between two persons,
the participation condition (within the meaning of that Part) is met in relation to that provision,
one of those persons is—
a UK resident company,
a non-UK resident company within the charge to corporation tax as a result of it falling within paragraph (a), (c) or (d) of section 5(2) of CTA 2009 (deals in or develops UK land, carries on a UK property business or has other UK property income), or
a partnership whose members include a company within the charge to corporation tax, and
the other person is a non-UK resident person or is a partnership whose members include a non-UK resident person.
The permanent establishment condition is that the transaction is relevant to the determination of—
exemption adjustments made under section 18A of CTA 2009, or
the profits of a non-UK resident company that are (for the purposes of the Corporation Tax Acts) attributable to a permanent establishment of the company in the United Kingdom.
References in this section to a transaction includes any transaction that may be treated to have occurred for the purposes of applying Chapter 3A or 4 of Part 2 of CTA 2009 (profits of permanent establishments).
Schedule 7 makes provision about permanent establishments, including for the purposes of giving effect to certain provisions of the Model Tax Convention on Income and on Capital published by the Organisation for Economic Co-operation and Development in 2017.
Schedule 8 contains amendments to F(No.2)A 2023, and other connected provision, relating to multinational top-up tax and domestic top-up tax.
This section applies if a repayment of interest (“the relevant repayment”) is, or has been at any time, made to a company in consequence of the cancellation of an interest charging notice given to the company under Schedule 7ZA to TIOPA 2010 (recovery of unlawful state aid).
Interest must be paid to the company in respect of the relevant repayment.
The amount of interest payable under this section is the amount that would have been payable by virtue of section 826 of the Income and Corporation Taxes Act 1988 (interest on tax overpaid) in respect of the relevant repayment if, at the time of the relevant repayment—
the relevant repayment had been among the repayments and payments listed in subsection (1) of that section, and
the material date for the purposes of that section, in relation to the relevant repayment, had been the date on which the interest mentioned in subsection (1) above was paid by the company.
Interest payable under this section must be paid—
in respect of a relevant repayment made before 2 December 2025, as soon as reasonably practicable;
in respect of a relevant repayment made on or after that day, at the same time as the relevant repayment.
Nothing in paragraph 10(1) of Schedule 7ZA to TIOPA 2010 (Treasury duty to make regulations where Commission Decision is revoked or annulled) requires the Treasury to make any further provision in relation to the repayment of interest paid by virtue of that Schedule.
References in this section to Schedule 7ZA to TIOPA 2010 are to the Schedule treated as inserted in that Act by paragraph (b) of Schedule 4 to the Taxation (Post-transition Period) Act 2020.
This section is treated as having come into force on 2 December 2025.
In the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001)—
in regulation 20 (application to gains of non-resident settlements), omit paragraphs (2) to (5);
in regulation 21 (application of transfer of assets abroad provisions), omit paragraphs (4) to (6).
In consequence of the amendments made by subsection (1)—
in section 734 of ITA 2007 (reduction in amount charged: previous capital gains tax charge), in subsection (5), omit “20 and”;
in Schedule 7 to FA 2008 (remittance basis), omit paragraphs 100 to 102;
in the Offshore Funds (Tax) Regulations 2009—
in regulation 18 (charge to tax on disposal of asset: further provisions), in paragraph (5), omit sub-paragraph (c);
in regulation 19 (income treated as arising under regulation 17: remittance basis), omit paragraph (5);
omit regulation 130 (amendments of FA 2008);
in Part 2 of Schedule 3 (index of defined expressions), omit the entry for “OIG amount”;
in Schedule 10 to FA 2025 (temporary repatriation facility)—
in paragraph 3(7), for “paragraphs 4 and 5” substitute “paragraph 5”;
in paragraph 3(9), for “paragraphs 4 and 5” substitute “paragraph 5”;
omit paragraph 4;
in paragraph 5(7), for “paragraphs 3 and 4” substitute “paragraph 3”;
in paragraph 10, omit sub-paragraphs (7) and (8).
Section 53 makes provision preserving in certain cases the effect of the law as it applied before the amendments made by this section.
This section—
is to be treated as having come into force on 6 April 2025;
has effect for the tax year 2025-26 and subsequent tax years.
This section applies in relation to an offshore income gain arising to the trustees of a settlement in a case where Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad) applies in relation to that gain for the tax year 2025-26 or any subsequent tax year because of the amendments made by section 52.
If the offshore income gain arose in a tax year before the tax year 2025-26 and, by reason of that offshore income gain or a part of it, an offshore income gain was treated as arising in a tax year before the tax year 2025-26 to an individual under paragraphs (2) to (5) of regulation 20 of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001)—
Chapter 2 of Part 13 of ITA 2007 is to be treated as not applying in relation to the offshore income gain arising to the trustees or that part of that gain, and
references in section 734 of ITA 2007 to chargeable gains treated as accruing to an individual are to be treated as including the offshore income gain treated as arising to the individual.
An individual is not chargeable to income tax under Chapter 2 of Part 13 of ITA 2007 on income treated as arising to the individual under section 732 of ITA 2007 by reason of the offshore income gain to the extent that the income, without the amendments made by section 52(1) and (2)(b)—
would have been treated as arising to that individual under paragraphs (2) to (5) of regulation 20 of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), and
would have been non-chargeable income (see subsections (4), (5) and (6)).
The income would have been non-chargeable income if, without the amendments made by section 52(1) and (2)(b)—
the income would have been treated as arising by reason of—
the matching of a capital payment received (or treated as received) by the individual before 6 April 2008 with an offshore income gain arising on or after 6 April 2025, or
the matching of a capital payment received (or treated as received) by the individual on or after 6 April 2025 with an offshore income gain arising before 6 April 2008, and
paragraph 100 of Schedule 7 to FA 2008 would have applied to the income.
The income would have been non-chargeable income to the extent that, without the amendments made by section 52(1) and (2)(b), it would have exceeded the relevant proportion of income— and, for that purpose, “relevant proportion” has the meaning given by sub-paragraphs (9) to (18) of paragraph 126 of that Schedule as they would have been modified by sub-paragraph (3) of paragraph 101 of that Schedule.
which would have been treated as arising to the individual by reason of—
the matching of a capital payment received (or treated as received) by the individual on or after 6 April 2008 with an offshore income gain arising on or after 6 April 2025, or
the matching of a capital payment received (or treated as received) by the individual on or after 6 April 2025 with an offshore income gain arising on or after 6 April 2008, and
to which paragraph 101 of Schedule 7 to FA 2008 would have applied,
The income would have been non-chargeable income to the extent that, without the amendments made by section 52(1) and (2)(b), it would have exceeded the relevant proportion of income— and, for that purpose, “relevant proportion” has the meaning given by sub-paragraphs (4) to (7) of paragraph 127 of that Schedule as they would have been modified by sub-paragraph (4) of paragraph 102 of that Schedule.
which would have been treated as arising to the individual by reason of—
the matching of a capital payment received (or treated as received) by the individual on or after 6 April 2008 with an offshore income gain arising on or after 6 April 2025, or
the matching of a capital payment received (or treated as received) by the individual on or after 6 April 2025 with an offshore income gain arising on or after 6 April 2008,
to which paragraph 102 of Schedule 7 to FA 2008 would have applied, and
to which paragraph 101 of that Schedule would not have applied,
Subsection (3) does not prevent Chapter 2 of Part 13 of ITA 2007 from having effect as though the income not chargeable to tax under that subsection had been charged to tax under section 731 of that Act.
Accordingly—
in the application of section 733(1) of ITA 2007 to the individual for subsequent tax years, the amount of that income will be deducted at Step 2 and at paragraph (a) of Step 5, and
in the application of section 733(1) of ITA 2007 to any other individual for subsequent tax years, the amount of that income will be deducted at paragraph (b) of Step 5.
In section 733 of ITA 2007, after subsection (2D) insert—
This section—
is to be treated as having come into force on 6 April 2025;
has effect for the tax year 2025-26 and subsequent tax years.
Part 10 of ITA 2007 (special rules about charitable trusts etc) is amended in accordance with subsections (2) to (4).
In section 518 (overview), in subsection (1), for “523” substitute “523A”.
After section 523 (but beneath the same italic heading) insert—
In section 562 (excess expenditure), in subsection (5) (definition of “non-taxable sums”), omit “, legacies”.
section 523A (legacies)
Part 11 of CTA 2010 (charitable companies etc) is amended in accordance with subsections (7) to (9).
In section 466 (overview), in subsection (1), for “474” substitute “474A”.
After section 474 (but beneath the same italic heading) insert—
In section 515 (excess expenditure), in subsection (5) (definition of “non-taxable sums”), omit “, legacies”.
The amendments made by this section have effect in relation to gifts received on or after 6 April 2026.
Section 558 of ITA 2007 (approved charitable investments) is amended in accordance with subsections (2) to (5).
The existing text becomes subsection (2).
Before that subsection insert—
In subsection (2)—
for the words before Type 1 substitute “The following are the types of investment mentioned in subsection (1)(a)—”;
omit Type 12.
At the end insert—
Section 511 of CTA 2010 (approved charitable investments) is amended in accordance with subsections (7) to (10).
The existing text becomes subsection (2).
Before that subsection insert—
In subsection (2)—
for the words before Type 1 substitute “The following are the types of investment mentioned in subsection (1)(a)—”;
omit Type 12.
At the end insert—
The amendments made by this section have effect in relation to investments made on or after 6 April 2026.
Section 809ZJ of ITA 2007 (tainted donations) is amended in accordance with subsections (2) and (3).
For subsection (5) substitute—
In subsection (8), at the appropriate place insert—.
Section 939C of CTA 2010 (tainted donations) is amended in accordance with subsections (5) and (6).
For subsection (5) substitute—
In subsection (8), at the appropriate place insert—.
Schedule 9 contains amendments connected with those made by this section in relation to tainted charity donations.
The amendments made by this section and by Schedule 9 have effect in relation to relievable charitable donations made on or after 6 April 2026.
In a case where an associated donation is made on or after 6 April 2026 in relation to a tainted donation made before that date, the tainted donation is regarded for the purposes of sections 809ZMB of ITA 2007, section 939FB of CTA 2010 and section 257B of TCGA 1992 as having “become” a tainted donation at the time when it was made.
In subsections (8) and (9)—
“financial institution” means—
“relievable charitable donation” means a relievable charity donation within the meaning of Chapter 8 of Part 13 of ITA 2007 or Part 21C of CTA 2010;
Schedule 10 contains provision for and in connection with a winter fuel payment charge.
ITTOIA 2005 is amended in accordance with subsections (2) to (4).
After section 23H (double taxation) insert—
In section 7 (income charged), in subsection (1), after “section 23E(1)” insert “, section 23I or section 23M”.
In section 845H (qualifying foreign income)—
in row 1 of the table at the end insert “other than profits of such a trade treated as carried on under section 23I”;
1A 72.5% of the amount of the qualifying profits (within the meaning of section 23I) of a trade treated as carried on under section 23I that do not arise from the part of a trade treated as carried on in the United Kingdom (see section 23K). 1B The foreign pre-arrival proportion of the non-qualifying profits (within the meaning of section 23I) of a trade treated as carried on under section 23I. The foreign pre-arrival proportion is the proportion of the applicable workdays (within the meaning of section 23K) that fall within the pre-arrival period and are not UK workdays (within the meaning of section 23K). The pre-arrival period is the period ending immediately before the individual became a qualifying new resident that consists only of tax years for which the individual was non-UK resident.
In Schedule 11—
Part 1 inserts Schedule A1 to ITTOIA 2005 (Carried interest: interpretation etc.);
Part 2 contains consequential and connected amendments.
The amendments made by this section and that Schedule have effect for the tax year 2026-27 and subsequent tax years (but in relation to investment management services whenever performed).
Paragraph 134 of Schedule 9 to FA 2024 (power to make further provision in connection with the abolition of the lifetime allowance charge) is amended as follows.
In sub-paragraph (2)—
for paragraph (b) substitute—;
in paragraph (d), at the end insert “(including any provision that could be made under paragraph 133)”.
In sub-paragraph (3) omit “that increase any person’s liability to tax”.
In sub-paragraph (4), for “5 April” substitute “30 June”.
Part 4 of FA 2004 (pension schemes) is amended in accordance with subsections (2) to (9).
In section 153 (registration of pension schemes), in subsection (5)—
omit the “or” at the end each of paragraphs (f), (g) and (h);
at the end of paragraph (i) insert , or
In section 158 (grounds for de-registration), in subsection (1)—
omit the “or” at the end of each of paragraphs (ea), (f) and (g);
in paragraph (h), after “that the” insert “pension”;
at the end of paragraph (h) insert , or
For the italic heading before section 274ZA substitute “Master Trust schemes, collective money purchase schemes etc”.
Before section 274ZA (but after the italic heading) insert—
Section 274ZA (National Employment Savings Trust and Master Trust schemes) is amended as follows—
for the heading substitute “Schemes treated as occupational pension schemes”;
after subsection (2) insert—
In section 279 (other definitions), omit subsections (1B) to (1D).
In section 280(2) (general index), in the table—
in the definition of “Master Trust scheme”, for the entry in the second column substitute “section 274ZZA”;
omit the definition of “unauthorised (in relation to a Master Trust scheme)”;
collective money purchase scheme section 274ZZB unauthorised collective money purchase scheme section 274ZZB(4) unauthorised Master Trust scheme section 274ZZA(5)
In section 282 (orders and regulations), after subsection (1A) insert—
In FA 2018, in Schedule 3 (pension schemes), in paragraph 4 (Master Trust schemes registered before passing of FA 2018), in sub-paragraph (2), for “Section 274B(2) of FA 2004 (as inserted by paragraph 1(5))” substitute “Section 274ZA(2) of FA 2004”.
Schedule 7A to TIOPA 2010 (interest restriction returns) is amended as follows.
For paragraph 1 (appointment by a worldwide group of a reporting company) substitute—
After that paragraph insert—
For paragraph 2 (revocation by worldwide group of appointment under paragraph 1), substitute—
In paragraph 4 (appointment of reporting company by Revenue and Customs)—
This paragraph applies where no interest restriction return in relation to a period of account of a worldwide group (“the relevant period of account”) has been submitted to an officer of Revenue and Customs before the end of the period of 18 months beginning with the end of the relevant period of account.
in sub-paragraph (4), at the end insert “and supersedes any appointment of a reporting company in relation to that period made under paragraph 1”,
But the time limits provided by paragraph (a) or (b) do not apply where sub-paragraph (6A) applies.
If— an officer of Revenue and Customs may, by notice to the company, appoint it to be the group’s reporting company for that period, and sub-paragraphs (3) and (4) apply in relation to that notice and appointment. The company is to be treated for the purposes of this Part of this Act as if it had been appointed immediately before it submitted the return (or, if more than one, the first return) for the relevant period of account. But—
In paragraph 5 (appointment by officer of Revenue and Customs of replacement reporting company), in sub-paragraph (6)(a), omit sub-paragraph (ii) and the “and” before that sub-paragraph.
In paragraph 6 (obligation of reporting company to notify group members of its status)—
in sub-paragraph (2), for “the relevant time” substitute “the appointment is made”, and
omit sub-paragraphs (3) and (4).
In paragraph 7 (obligation of reporting company to submit interest restriction return)—
A reporting company appointed under paragraph 1 in relation to a period of account may submit a return for that period to an officer of Revenue and Customs. A reporting company appointed under paragraph 4 in relation to a period of account must submit a return for that period to an officer of Revenue and Customs. A reporting company appointed under paragraph 5 in relation to a period of account must submit a return for that period to an officer of Revenue and Customs unless a return for the period has already been submitted under sub-paragraph (1) or (2) or this sub-paragraph.
in sub-paragraph (6), for paragraph (b) substitute—
Consequently, the italic heading before that paragraph becomes “Submission of interest restriction returns by reporting companies”.
In paragraph 8 (revised interest restriction return), in sub-paragraph (3), for paragraph (b) substitute—
In paragraph 10 (meaning of “consenting company” and “non-consenting company”)—
in sub-paragraph (2)—
in paragraph (a), for “the appropriate persons” substitute “the reporting company in relation to the period of account”, and
in paragraph (b), for “the appropriate persons” substitute “the reporting company”, and
omit sub-paragraph (3).
Omit paragraph 11 (company authorising reporting company appointment treated as consenting company) together with the italic cross-heading before it.
After paragraph 11 insert—
In paragraph 20 (required contents of interest restriction return: full returns and abbreviated returns)—
in sub-paragraph (3)—
before paragraph (a) insert—,
in paragraph (c), at the end insert “and whether it authorised the appointment of the reporting company for the period of account”, and
after that paragraph insert—, and
in sub-paragraph (5), for “(a) to (c)” substitute “(za) to (ca)”.
In paragraph 29 (penalty for failure to deliver return)—
in sub-paragraph (1)(a), at the beginning insert “submits or”, and
The assessment must be made—
Sub-paragraph (1) applies even if the company submitting the return had not been appointed as a reporting company for the period of account for which the return was submitted; and references to a reporting company in paragraph 40, and elsewhere in this Schedule where the context is an enquiry into the return, are to the company who submitted the return.
In paragraph 56 (power of Revenue and Customs to make determinations where no return filed etc), in sub-paragraph (4)(a), after “has effect” insert “under paragraph 4 or 5”.
Condition A is that no appointment of a reporting company in relation to the period of account has been made before the end of the period of 12 months beginning with the end of the period of account.
The amendment made by subsection (3) has effect in relation to periods of account ending on or after 31 March 2024 (except so far as it relates to the new paragraph 11A of Schedule 7A to TIOPA 2010).
The amendments made by subsection (14) have effect in accordance with provision made by regulations made by the Commissioners for His Majesty’s Revenue and Customs.
The remaining amendments made by this section have effect in relation to periods of account ending on or after 31 March 2026.
In section 407 of TIOPA 2010 (amounts not brought into account in determining a company’s tax-EBITDA)—
in subsection (1)(b) (allowances or charges under CAA 2001), at the end insert “or capital expenditure for which a deduction is given under a relevant enactment”, and
after subsection (1) insert—
The amendments made by this section have effect in relation to periods of account ending on or after 31 December 2021.
An interest restriction return which is revised to take account of the amendments made by this section is, despite paragraph 8(3) of Schedule 7A to TIOPA 2010, of effect if the revised return is received by an officer of Revenue and Customs before 1 October 2026.
In Part 20 of CTA 2009 (general calculation rules), in Chapter 1 (restriction of deductions), after section 1305A insert—
The amendment made by this section has effect in relation to accounting periods beginning on or after 26 November 2025; and for that purpose an accounting period beginning before and ending on or after that date is 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 accounting periods.
In section 80 of FA 2013 (decommissioning relief agreements), after subsection (4) insert—
The amendment made by subsection (1) has effect in relation to claims under decommissioning relief agreements made in relation to decommissioning expenditure incurred on or after 26 November 2025.
Schedule 12 makes provision—
limiting agricultural property relief and business property relief, and
extending Schedule A1 to IHTA 1984 (overseas property not excluded property if value attributable to UK residential property) to UK agricultural property.
In IHTA 1984, before section 151 (but after the italic heading that precedes it) insert—
IHTA 1984 is amended as follows.
For section 210 substitute—
In section 211 (burden of tax on death), for subsection (3) substitute—
In section 212 (powers to raise tax), in subsection (1), for “or any part of it” substitute “, any property derived from that property, or any part of that property or of property derived from it”.
In section 239 (certificates of discharge), after subsection (4) insert—
In IHTA 1984, after section 226 insert—
IHTA 1984 is amended as follows.
Omit section 12A (pension drawdown fund not used up: no deemed disposition).
In section 18 (exemption for transfers between spouses or civil partners), after subsection (3) insert—
In section 23 (gifts to charities or registered clubs), after subsection (5A) insert—
In section 24 (gifts to political parties), after subsection (4) insert—
In section 24A (gifts to housing associations), after subsection (3) insert—
In section 25 (gifts for national purposes etc), after subsection (3) insert—
In section 27 (maintenance funds for historic buildings etc), after subsection (2) insert—
In section 151 (treatment of pension rights etc)—
for the heading substitute “Other provision about pension interests”;
for subsections (2) and (3) substitute—;
omit subsection (4).
Omit section 152 (cash options).
After section 218A insert—
In section 272 (general interpretation), in subsection (1)—
in the definition of “member”, after “scheme,” insert “a qualifying non-UK pension scheme or a section 615(3) scheme,”;
at the appropriate places insert—; ; ; ; .
ITEPA 2003 is amended in accordance with subsections (2) to (6).
section 567B (deduction where inheritance tax is paid in respect of pension death benefit);
After section 567A insert—
After section 579CA insert—
In section 637T (availability of individual’s lump sum and death benefit allowance where multiple lump sum death benefits paid), after subsection (4) insert—
In section 683 (PAYE income), in subsection (3B), at the end insert “or section 579CB (inheritance tax overpaid by scheme administrator: refund treated as pension)”.
FA 2004 is amended in accordance with subsections (8) to (10).
In section 164 (authorised member payments), in subsection (1), after paragraph (e) (but before the “and” that follows it) insert—.
After section 206 insert—
In section 274A (power to split pension schemes), at the end insert—
The amendments made by sections 66 to 70 apply in relation to deaths, and (so far as relevant) to other transfers of value within the meaning of IHTA 1984, occurring on or after 6 April 2027.
In section 86 of FA 2021 (no indexation of rate bands, residential enhancement and taper threshold for tax years up to 2029-30)—
for “or 2028” substitute “, 2028 or 2029”, and
in the heading, for “2029-30” substitute “2030-31”.
In IHTA 1984, in section 65 (relevant property: exit charges), after subsection (8A) insert—
The amendment made by subsection (1) is treated as having come into force on 26 November 2025.
In IHTA 1984, after section 75A insert—
The amendment made by subsection (1) is treated as having come into force on 6 April 2025.
In IHTA 1984, after section 155 insert—
The amendment made by subsection (1) is treated as having come into force on 6 April 2025 (and has effect in relation to tax years ending before that date as it has effect in relation to later tax years).
IHTA 1984 is amended in accordance with subsections (2) and (3).
In section 267ZD (further provision about elections under section 267ZC), in subsection (8), for “a lifetime election” substitute “an election under section 267ZC”.
In section 157 (non-residents’ bank accounts), in subsection (3), in each of paragraphs (c) and (d), omit “not”.
The amendment made by subsection (2) is treated as having come into force on 6 April 2025.
The amendment made by subsection (3) is treated as having come into force on 26 November 2025.
Section 157(3) of IHTA 1984 is treated as having had effect for the period beginning with 6 April 2025 and ending with 26 November 2025 with the omission of its paragraphs (c) and (d) (and the insertion of “or” after paragraph (a)).
The Treasury may by regulations made by statutory instrument make provision conferring relief from inheritance tax in respect of infected blood compensation payments.
The provision that may be made under subsection (1) includes provision about the treatment of dispositions of amounts received by way of, or that are otherwise referable to, infected blood compensation payments.
Regulations under subsection (1) may—
amend or otherwise modify Schedule 15 to FA 2020 (tax relief for scheme payments etc);
include retrospective provision that does not increase any person’s liability to tax;
make different provision for different cases;
include consequential, transitional or saving provision.
In this section—
“returned goods relief” means relief for import duty available—
“Commissioners” means the Commissioners of His Majesty’s Revenue;
is a qualifying payment for the purposes of Schedule 15 to FA 2020 (tax relief for scheme payments etc) by virtue of regulations made under paragraph 2(5) of that Schedule;
A statutory instrument containing regulations under subsection (1) that amend or otherwise modify Schedule 15 to FA 2020 may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons.
A statutory instrument containing any other regulations under subsection (1) is subject to annulment in pursuance of a resolution of the House of Commons.
IHTA 1984 is amended as follows.
In section 23 (gifts to charities or registered clubs), in subsection (6)—
in paragraph (a), omit “or is held on trust for charitable purposes only”;
in paragraph (b), omit “or is held on trust for purposes of registered clubs only”.
In section 29A (abatement of exemption where claim settled out of beneficiary’s own resources), in subsection (6), in paragraph (b) of the definition of “the exempt beneficiary”, omit sub-paragraph (ii) and the “or” before it.
In section 142 (alteration of dispositions taking effect on death)—
in subsection (3A), for “the appropriate person” substitute “the charity or registered club to which the property is given”;
omit subsection (3B).
The amendments made by this section have effect— References in this subsection to the making of a transfer of value are to be construed in accordance with IHTA 1984.
in relation to a transfer of value made on a person’s death, if the person dies on or after 6 April 2026;
in relation to a transfer of value made at any other time, if the transfer is made on or after 26 November 2025.
Subsection (2) applies in relation to a transfer of value (“the original transfer”) to the extent that the value transferred by it is attributable to property which meets each of the following conditions, namely—
that immediately before the original transfer a person was beneficially entitled to an interest in possession in the property to which section 49(1) of IHTA 1984 (interests treated as part of estate) applied;
that the person became beneficially entitled to the interest in possession before 26 November 2025;
that by virtue of the original transfer the property is held on trust— but is not given to charities or registered clubs;
only for charitable purposes, or
only for purposes of registered clubs,
that the property is given to charities or registered clubs within the period of 2 years beginning with the date of the original transfer (“the subsequent gift”).
For the purposes of IHTA 1984—
the original transfer is treated as attributable (and as always having been attributable) to property given to charities or registered clubs, and
the subsequent gift is disregarded.
Subsections (1) and (2) have effect—
where the original transfer is made on a person’s death, if the person dies on or after 6 April 2026;
where the original transfer is made at any other time, if the transfer is made on or after 26 November 2025.
Subsections (1) to (3)are to be construed as though they were contained in section 23 of IHTA 1984.
VATA 1994 is amended as follows.
In Schedule 8, in Group 12 (drugs, medicines, aids for the disabled, etc), omit item 14.
In consequence of the amendment made by subsection (2), in that Group—
for item 15 substitute—,
omit note (6), and
in note (7)—
in the words before paragraph (a), for “14” substitute “15”,
in paragraph (aa), for “the corresponding provision having effect in Northern Ireland” substitute “Part 5 of the Welfare Reform (Northern Ireland) Order 2015”,
in paragraph (aaa), for “disability assistance for children and young people” substitute “Child Disability Payment”,
in paragraph (aab), for “disability assistance for working age people” substitute “Adult Disability Payment”,
after that paragraph insert—, and
for paragraph (b) substitute—
In Schedule 6 (valuation: special cases), after paragraph 11A insert—
The amendments made by this section have effect in relation to leases of motor vehicles commencing on or after—
1 July 2026, or
such later date as may be appointed in regulations made (before 1 July 2026) by statutory instrument by the Treasury.
In Schedule 7A to FA 1994 (insurance premium tax: contracts that are not taxable), for paragraph 3 (and the italic heading before it) substitute—
The amendment made by this section has effect in relation to contracts relating to leases of motor vehicles where the lease commences on or after—
1 July 2026, or
such later date as may be appointed in regulations made (before 1 July 2026) by statutory instrument by the Treasury.
In section 53 of VATA 1994 (tour operators), after subsection (3) insert—
The amendment made by subsection (1) has effect in relation to supplies made on or after 2 January 2026.
Schedule 4 to VATA 1994 (matters to be treated as supply of goods or services) is amended as follows.
In paragraph 5 (transfer of business goods treated as supply)—
in sub-paragraph (2), at the end insert—;
in sub-paragraph (2ZA), at the appropriate place insert—.
After paragraph 5 insert—
The amendments made by subsections (1) to (3) have effect in relation to donations made on or after 1 April 2026.
In section 33 of VATA 1994 (refunds of VAT in certain cases), in subsection (3)(a) (which provides for the section to apply to local authorities and combined authorities), for the words from “and” to the end substitute “, a combined authority established by an order made under section 103(1) of the Local Democracy, Economic Development and Construction Act 2009 and a combined county authority established by regulations made under section 9(1) of the Levelling-up and Regeneration Act 2023;”.
The amendment made by this section has effect in relation to supplies made, and importations or acquisitions taking place, on or after 1 December 2025.
After section 89B of FA 1986 (stamp duty reserve tax) insert—
The amendment made by subsection (1) has effect in relation to an agreement to transfer chargeable securities in a company that is first listed on or after 27 November 2025 (with “first listed” having the same meaning as in section 89C(1)(a) of FA 1986, as inserted by subsection (1)).
In Chapter 3 of Part 3 of FA 2014 (remote gaming duty), in section 155(3) (which specifies the rate), for “21%” substitute “40%”.
The amendment made by this section has effect in relation to accounting periods beginning on or after 1 April 2026.
In a case where an accounting period (a “straddling period”) begins before 1 April 2026 and ends on or after that date— are to be treated as separate accounting periods for the purpose of calculating the duty concerned for the straddling period.
so much of the straddling period as falls before 1 April 2026, and
so much of it as falls on or after that date,
For the purposes of subsection (3), the amount on which duty is charged is apportioned to those separate accounting periods on a time basis according to the respective lengths of those periods.
Chapter 1 of Part 3 of FA 2014 (general betting duty) is amended as follows.
In the cross-heading after section 125, after “General” insert “, remote”.
In section 126 (meaning of “general bet”), in subsection (1) after paragraph (a) insert—.
After 127 (general bets) insert—
remote bet section 127A
In section 194(4) of FA 2014 (made affirmative procedure for regulations), before paragraph (za) insert—.
This section has effect in relation to accounting periods beginning on or after 1 April 2027, and the charge under section 127A of FA 2014 is on bets made on or after that date.
In a case where an accounting period (a “straddling period”) begins before 1 April 2027 and ends on or after that date— are to be treated as separate accounting periods for the purpose of calculating the duty concerned for the straddling period.
so much of the straddling period as falls before 1 April 2027, and
so much of it as falls on or after that date,
For the purposes of subsection (8), the amount on which duty is charged is apportioned to those separate accounting periods on a time basis according to the respective lengths of those periods.
Omit—
sections 17 to 20C and 31 of the Betting and Gaming Duties Act 1981 (bingo duty);
the cross-heading before section 17 of that Act;
Schedule 3 to that Act (further provision about bingo duty).
Schedule 13 makes—
provision in consequence of subsection (1);
transitional and saving provision.
The repeals and amendments made by this section and Schedule 13 come into force on 1 April 2026.
The Treasury may by regulations make such further transitional, transitory or saving provision as the Treasury consider appropriate in connection with the coming into force of those repeals and amendments.
Regulations under subsection (4) are to be made by statutory instrument.
Part 2 of F(No.2)A 2023 (alcohol duty) is amended as follows.
For Schedule 7 (main rates) substitute—.
For Schedule 8 (reduced rates for qualifying draught products) substitute—.
For Schedule 9 (duty discount for small producer alcoholic products)—.
In consequence of the amendments made by the preceding subsections of this section, in Schedule 2 to the Travellers’ Allowances Order 1994 (which provides in certain circumstances for a simplified calculation of excise duty on goods brought into Great Britain)—
in the entry relating to beer, in the second column, for “£0.91” substitute “£0.95”,
in the entry relating to still wine, in the second column, for “£3.40” substitute “£3.52”,
in the entry relating to sparkling wine, in the second column, for “£3.40” substitute “£3.52”,
in the entry relating to cider, in the second column, for “£0.46” substitute “£0.48”,
in the entry relating to sparkling cider of an alcoholic strength not exceeding 5.5% by volume, in the second column, for “£0.46” substitute “£0.48”,
in the entry relating to sparkling cider of an alcoholic strength exceeding 5.5% but less than 8.5% by volume, in the second column, for “£1.80” substitute “£1.86”,
in the entry relating to other fermented products, in the second column, for “£3.40” substitute “£3.52”, and
in the entry relating to spirits, in the second column, for “£12.30” substitute “£12.75”.
The amendments made by this section are treated as having come into force on 1 February 2026.
1 Cigarettes An amount equal to the higher of— 16.5% of the retail price plus £353.50 per thousand cigarettes, or £471.93 per thousand cigarettes. 2 Cigars £440.93 per kilogram 3 Hand-rolling tobacco £503.80 per kilogram 4 Other smoking tobacco and chewing tobacco £193.87 per kilogram 5 Tobacco for heating £363.36 per kilogram
In consequence of the provision made by subsection (1), in Schedule 2 to the Travellers’ Allowances Order 1994 (which provides in certain circumstances for a simplified calculation of excise duty on goods brought into Great Britain)—
in the entry relating to cigarettes, for “£446.67” substitute “£471.93”,
in the entry relating to hand rolling tobacco, for “£476.83” substitute “£503.80”,
in the entry relating to other smoking tobacco and chewing tobacco, for “£183.49” substitute “£193.87”,
in the entry relating to cigars, for “£417.33” substitute “£440.93”,
in the entry relating to cigarillos, for “£417.33” substitute “£440.93”, and
in the entry relating to tobacco for heating, for “£103.17” substitute “£109.01”.
The amendments made by this section are treated as having come into force at 6pm on 26 November 2025.
1 Cigarettes An amount equal to the higher of— 16.5% of the retail price plus £394.09 per thousand cigarettes, or £518.75 per thousand cigarettes. 2 Cigars £508.12 per kilogram 3 Hand-rolling tobacco £574.30 per kilogram 4 Other smoking tobacco and chewing tobacco £248.07 per kilogram 5 Tobacco for heating £426.47 per kilogram
In consequence of the provision made by subsection (1), in Schedule 2 to the Travellers’ Allowances Order 1994 (which provides in certain circumstances for a simplified calculation of excise duty on goods brought into Great Britain)—
in the entry relating to cigarettes, for “£471.93” substitute “£518.75”,
in the entry relating to hand rolling tobacco, for “£503.80” substitute “£574.30”,
in the entry relating to other smoking tobacco and chewing tobacco, for “£193.87” substitute “£248.07”,
in the entry relating to cigars, for “£440.93” substitute “£508.12”,
in the entry relating to cigarillos, for “£440.93” substitute “£508.12”, and
in the entry relating to tobacco for heating, for “£109.01” substitute “£127.94”.
The amendments made by this section come into force on 1 October 2026.
Schedule 1 to VERA 1994 (annual rates of vehicle excise duty) is amended as follows.
In paragraph 1 (general rate)—
in sub-paragraph (2) (vehicle not covered elsewhere in Schedule with engine cylinder capacity exceeding 1,549cc), for “£360” substitute “£375”, and
in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc), for “£220” substitute “£230”.
CO2 Emissions Figure (1) (2) (3) Exceeding or, in the first row, equal to or exceeding Not exceeding Rate g/km g/km £ 0 100 20 100 110 20 110 120 35 120 130 170 130 140 200 140 150 225 150 165 275 165 175 325 175 185 360 185 200 410 200 225 445 225 255 760 255 — 790
In the sentence immediately following the Table in that paragraph, for the words from “as if” to the end substitute “as if, in column (3), in the last two rows, “445” were substituted for “760” and “790”.”
CO2 Emissions Figure (1) (2) (3) Exceeding or, in the first row, equal to Not exceeding Rate g/km g/km £ 0 0 10 0 50 115 50 75 135 75 90 280 90 100 365 100 110 405 110 130 455 130 150 560 150 170 1410 170 190 2270 190 225 3420 225 255 4850 255 — 5690
CO2 Emissions Figure Rate (1) (2) (3) Exceeding or, in the first row, equal to or exceeding Not exceeding Rate g/km g/km £ 0 50 135 50 75 280 75 90 365 90 100 405 100 110 455 110 130 560 130 150 1410 150 170 2270 170 190 3420 190 225 4850 225 255 5690 255 — 5690
In paragraph 1GD(1)(rates for any other licence for light passenger vehicles registered on or after 1 April 2017), for “£195” substitute “£200”.
In paragraph 1GE(2) (rates for light passenger vehicles registered on or after 1 April 2017 with a price exceeding £40,000), for “£620” substitute “£640”.
In paragraph 1J(a) (rates for light goods vehicles that are not pre-2007 or post-2008 lower emission vans), for “£345” substitute “£360”.
In paragraph 2(1) (rates for motorcycles)—
in paragraph (a) (engine cylinder capacity not exceeding 150cc), for “£26” substitute “£27”,
in paragraph (b) (motorbicycles with engine cylinder capacity exceeding 150cc but not exceeding 400cc), for “£57” substitute “£59”,
in paragraph (c) (motorbicycles with engine cylinder capacity exceeding 400cc but not exceeding 600cc), for “£87” substitute “£90”, and
in paragraph (d) (other cases), for “£121” substitute “£125”.
The amendments made by this section have effect in relation to licences taken out on or after 1 April 2026.
Schedule 1 to VERA 1994 (annual rates of vehicle excise duty) is amended as follows.
Revenue weight of vehicle Rate (1) (2) (3) (4) (5) Exceeding Not exceeding Two axle vehicle Three axle vehicle Four or more axle vehicle kgs kgs £ £ £ 3,500 7,500 177 177 177 7,500 11,999 215 215 215 11,999 14,000 102 102 102 14,000 15,000 113 102 102 15,000 19,000 322 102 102 19,000 21,000 322 135 102 21,000 23,000 322 226 102 23,000 25,000 322 322 226 25,000 27,000 322 322 322 27,000 44,000 322 322 601
Revenue weight of vehicle Rate (1) (2) (3) (4) (5) Exceeding Not exceeding Any no of semi-trailer axles 2 or more semi-trailer axles 3 or more semi-trailer axles kgs kgs £ £ £ 3,500 11,999 177 177 177 11,999 22,000 86 86 86 22,000 23,000 90 86 86 23,000 25,000 163 86 86 25,000 26,000 285 108 86 26,000 28,000 285 157 86 28,000 31,000 322 322 86 31,000 33,000 601 601 226 33,000 34,000 601 654 226 34,000 38,000 741 741 601 38,000 44,000 913 913 913 Revenue weight of vehicle Rate (1) (2) (3) (4) (5) Exceeding Not exceeding Any no of semi-trailer axles 2 or more semi-trailer axles 3 or more semi-trailer axles kgs kgs £ £ £ 3,500 11,999 177 177 177 11,999 25,000 86 86 86 25,000 26,000 108 86 86 26,000 28,000 157 86 86 28,000 29,000 226 86 86 29,000 31,000 311 86 86 31,000 33,000 601 226 86 33,000 34,000 654 322 86 34,000 36,000 654 322 226 36,000 38,000 741 601 322 38,000 44,000 913 913 601
The amendments made by this section have effect in relation to licences taken out on or after 1 April 2026.
Vehicle excise duty band Plated gross weight of trailer Total weight Rate (1) (2) (3) (4) (5) (6) Exceeding (kgs) Not exceeding (kgs) Exceeding (kgs) Not exceeding (kgs) £ B(T) 4,000 12,000 - 27,000 247 B(T) 12,000 - - 33,000 317 B(T) 12,000 - 33,000 36,000 431 B(T) 12,000 - 36,000 38,000 343 B(T) 12,000 - 38,000 - 477 D(T) 4,000 12,000 - 30,000 392 D(T) 12,000 - - 38,000 462 D(T) 12,000 - 38,000 - 477 Vehicle excise duty band Plated gross weight of trailer Total weight Rate (1) (2) (3) (4) (5) (6) Exceeding (kgs) Not exceeding (kgs) Exceeding (kgs) Not exceeding (kgs) £ B(T) 4,000 12,000 - 33,000 247 B(T) 12,000 - - 38,000 317 B(T) 12,000 - 38,000 40,000 421 B(T) 12,000 - 40,000 - 317 C(T) 4,000 12,000 - 35,000 328 C(T) 12,000 - - 38,000 397 C(T) 12,000 - 38,000 40,000 421 C(T) 12,000 - 40,000 - 397 D(T) 4,000 10,000 - 33,000 392 D(T) 4,000 10,000 33,000 36,000 431 D(T) 10,000 12,000 - 38,000 392 D(T) 12,000 - - - 462 Vehicle excise duty band Plated gross weight of trailer Total weight Rate (1) (2) (3) (4) (5) (6) Exceeding (kgs) Not exceeding (kgs) Exceeding (kgs) Not exceeding (kgs) £ B(T) 4,000 12,000 - 35,000 247 B(T) 12,000 - - - 317 C(T) 4,000 12,000 - 37,000 328 C(T) 12,000 - - - 397 D(T) 4,000 12,000 - 39,000 392 D(T) 12,000 - - - 462 E(T) 4,000 12,000 - - 575 E(T) 12,000 - - - 645 Vehicle excise duty band Plated gross weight of trailer Total weight Rate (1) (2) (3) (4) (5) (6) Exceeding (kgs) Not exceeding (kgs) Exceeding (kgs) Not exceeding (kgs) £ B(T) 4,000 12,000 - 27,000 247 B(T) 12,000 - - 31,000 317 B(T) 12,000 - 31,000 33,000 431 B(T) 12,000 - 33,000 36,000 654 B(T) 12,000 - 36,000 38,000 477 B(T) 12,000 - 38,000 - 649 D(T) 4,000 12,000 - 30,000 392 D(T) 12,000 - - 33,000 462 D(T) 12,000 - 33,000 36,000 654 D(T) 12,000 - 36,000 38,000 477 D(T) 12,000 - 38,000 - 649 Vehicle excise duty band Plated gross weight of trailer Total weight Rate (1) (2) (3) (4) (5) (6) Exceeding (kgs) Not exceeding (kgs) Exceeding (kgs) Not exceeding (kgs) £ B(T) 4,000 10,000 - 29,000 247 B(T) 4,000 10,000 29,000 31,000 311 B(T) 10,000 12,000 - 33,000 247 B(T) 12,000 - - 36,000 317 B(T) 12,000 - 36,000 38,000 421 B(T) 12,000 - 38,000 - 583 C(T) 4,000 10,000 - 31,000 328 C(T) 4,000 10,000 31,000 33,000 431 C(T) 10,000 12,000 - 35,000 328 C(T) 12,000 - - 36,000 397 C(T) 12,000 - 36,000 38,000 421 C(T) 12,000 - 38,000 - 583 D(T) 4,000 10,000 - 31,000 392 D(T) 4,000 10,000 31,000 33,000 431 D(T) 4,000 10,000 33,000 35,000 654 D(T) 10,000 12,000 - 36,000 392 D(T) 10,000 12,000 36,000 37,000 421 D(T) 12,000 - - 38,000 462 D(T) 12,000 - 38,000 - 583 Vehicle excise duty band Plated gross weight of trailer Total weight Rate (1) (2) (3) (4) (5) (6) Exceeding (kgs) Not exceeding (kgs) Exceeding (kgs) Not exceeding (kgs) £ B(T) 4,000 12,000 - 35,000 247 B(T) 12,000 - - - 317 C(T) 4,000 12,000 - 37,000 328 C(T) 12,000 - - - 397 D(T) 4,000 10,000 - 36,000 392 D(T) 4,000 10,000 36,000 37,000 477 D(T) 10,000 12,000 - 39,000 392 D(T) 12,000 - - - 462 E(T) 4,000 10,000 - 38,000 575 E(T) 4,000 10,000 38,000 - 649 E(T) 10,000 12,000 - - 575
In that paragraph, in sub-paragraph (7), for “£631” substitute “£654”.
The amendments made by this section have effect in relation to licences taken out on or after 1 April 2026.
In— for “£1,643” substitute “£1,703”.
paragraph 6(2A)(a) of Schedule 1 to VERA 1994 (vehicles with exceptional loads),
paragraph 9(3) of that Schedule (rigid goods vehicle which has weight exceeding 44,000 kg and is not an island goods vehicle), and
paragraph 11(3) of that Schedule (tractive unit vehicle which has weight exceeding 44,000 kg and is not an island goods vehicle),
The amendments made by this section have effect in relation to licences taken out on or after 1 April 2026.
In paragraph 7(3A) of Schedule 1 to VERA 1994 (which specifies the rate applicable to haulage vehicles other than showman’s vehicles), for £365” substitute “£380”.
The amendment made by this section has effect in relation to licences taken out on or after 1 April 2026.
In paragraph 1GE of Schedule 1 to VERA 1994 (rates for light passenger vehicles registered on or after 1 April 2017 with a price exceeding £40,000)—
in sub-paragraph (1)(a), for “£40,000” substitute “the applicable amount”, and
For the purposes of sub-paragraph (1) “the applicable amount” is—
The amendments made by this section have effect in relation to any licence where the period for which the licence has effect begins on or after 1 April 2026 (whenever the licence is taken out).
Schedule 1 to the HGV Road User Levy Act 2013 (rates of the levy) is amended as follows.
Band Daily rate Weekly rate Monthly rate Half-yearly rate Yearly rate A £3.22 £8.05 £16.10 £96.60 £161 B £7.74 £19.35 £38.70 £232.20 £387 C £9.67 £30.95 £61.90 £371.40 £619
Band Daily rate Weekly rate Monthly rate Half-yearly rate Yearly rate A £4.18 £10.45 £20.90 £125.40 £209 B £10.06 £25.15 £50.30 £301.80 £503 C £10.74 £40.20 £80.40 £482.40 £804
The amendments made by this section come into force on 1 April 2026.
Section 30 of FA 1994 (air passenger duty: rates) is amended as follows.
In subsection (1B) (journeys ending in the United Kingdom)—
in paragraph (a), for “£8” substitute “£8.26”, and
in paragraph (b), for “£16” substitute “£16.52”.
In subsection (2) (short-haul journeys)—
in paragraph (a), for “£15” substitute “£15.49”, and
in paragraph (b), for “£32” substitute “£33.04”.
In subsection (2A) (long-haul journeys)—
in paragraph (a), for “£102” substitute “£105.33”, and
in paragraph (b), for “£244” substitute “£251.95”.
In subsection (4A) (ultra-long haul journeys)—
in paragraph (a), for “£106” substitute “£109.46”, and
in paragraph (b), for “£253” substitute “£261.25”.
In subsection (4E) (journeys on aircraft equipped to carry fewer than 19 passengers)—
in paragraph (za), for “£142” substitute “£146.63”,
in paragraph (a), for “£142” substitute “£146.63”,
in paragraph (aa), for “£1,097” substitute “£1132.76”, and
in paragraph (d), for “£1,141” substitute “£1178.20”.
The amendments made by this section have effect in relation to the carriage of passengers beginning on or after 1 April 2027.
Taxable commodity supplied Rate at which levy payable if supply is not a reduced-rate supply Electricity £0.00827 per kilowatt hour Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility £0.00827 per kilowatt hour Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state £0.02175 per kilogram Any other taxable commodity £0.06468 per kilogram
The amendment made by this section has effect in relation to supplies treated as taking place on or after 1 April 2027.
Section 42 of FA 1996 (amount of landfill tax) is amended as follows.
In subsection (1)(a) (standard rate), for “£126.15” substitute “£130.75”.
In subsection (2) (reduced rate for certain disposals), in the words after paragraph (b)—
for “£126.15” substitute “£130.75”, and
for “£4.05” substitute “£8.65”.
The amendments made by this section have effect in relation to disposals made (or treated as made) on or after 1 April 2026.
In section 16(4) of FA 2001 (rate of aggregates levy), for “£2.08” substitute “£2.16”.
The amendment made by this section has effect in relation to aggregate subjected to commercial exploitation on or after 1 April 2026.
Schedule 14 (aggregates levy: amendments relating to disapplication of levy to Scotland) has effect.
In section 45(1) of FA 2021 (rate of plastic packaging tax), for “£223.69” substitute “£228.82”.
The amendment made by this section has effect in relation to packaging components produced in, or imported into, the United Kingdom on or after 1 April 2026.
Part 2 of FA 2021 (plastic packaging tax) is amended as follows.
In section 47(1)(a) (chargeable plastic packaging components)—
before “proportion” insert “combined”;
after “recycled plastic” insert “and attributed recycled plastic”.
In section 49 (meaning of “plastic” and “recycled plastic”)—
in the heading, for “and “recycled plastic”” substitute “, “recycled plastic” and “attributed recycled plastic””;
after subsection (2) insert—;
after subsection (7) insert—;
in subsection (8), for “and “recycled plastic”” substitute “, “recycled plastic” and “attributed recycled plastic””;
in subsection (10), after “recycled plastic” insert “or attributed recycled plastic”.
After section 49 insert—
In section 83 (interpretation), at the appropriate places insert—; .
In section 84(5)(b) (regulations), for “and “recycled plastic”” substitute “, “recycled plastic” and “attributed recycled plastic””.
In section 49 of FA 2021 (meaning of “plastic” and “recycled plastic”)—
in subsection (4), in the opening words, omit “pre-consumer plastic or”;
omit subsection (5).
The following come into force on the day on which this Act is passed—
this section;
any provision of, or amendment made by, section 105 so far as it confers a power to make regulations or relates to the exercise of such a power.
The following come into force on 1 April 2027—
section 105, so far as not brought into force by subsection (1)(b);
section 106.
In section 36(1) of FA 2017 (rates of soft drinks industry levy)—
in paragraph (a) (soft drinks that meet higher sugar threshold), for “£2.59” substitute “£2.78”, and
in paragraph (b) (other soft drinks), for “£1.94” substitute “£2.08”.
The amendments made by this section have effect in relation to chargeable events occurring on or after 1 April 2026.
Section 8 of TCTA 2018 (the customs tariff) is amended as follows.
After subsection (3) insert—
After subsection (8) insert—
Schedule 4 to TCTA 2018 (dumping of goods or foreign subsidies causing injury to UK industry) is amended as follows.
In the italic heading before paragraph 9, after “investigation” insert “: request made to TRA”.
In paragraph 9 (initiation of a dumping or a subsidisation investigation)—
in sub-paragraph (1)—
in the opening words, omit “only”;
in paragraph (a), omit sub-paragraph (ii) and the “or” before it;
in sub-paragraph (2)—
in paragraph (a), omit “in the case of an application under sub-paragraph (1)(a)(i),”;
omit paragraph (b).
After paragraph 9 insert—
In paragraph 10(2) (conduct of a dumping or a subsidisation investigation), after paragraph (d) insert—.
In paragraph 17(8B) (TRA’s duty to recommend an anti-dumping amount or countervailing amount)—
for “The Secretary of State may by regulations” substitute “Regulations may”;
after “specified circumstances, to” insert “give or”.
In paragraph 18 (TRA's recommendations about an anti-dumping amount or a countervailing amount)—
in sub-paragraph (6), omit paragraph (b) and the “or” before it;
Regulations may provide that a recommendation must be such that an anti-dumping amount or a countervailing amount applicable to goods does not exceed a specified amount that is lower than the amount referred to in sub-paragraph (6)(a).
in sub-paragraph (7) omit the words from “for the purposes of” to the end and insert “about how an amount specified in regulations under sub-paragraph (6A) is to be determined by the TRA”.
Schedule 5 to TCTA 2018 (increase in imports causing serious injury to UK producers) is amended in accordance with subsections (2) to (5).
In the italic heading before paragraph 7, after “investigation” insert “: request made to TRA”.
In paragraph 7 (initiation of a safeguarding investigation)—
in sub-paragraph (1)—
in the opening words, omit “only”;
in paragraph (a), omit sub-paragraph (ii) and the “or” before it;
in sub-paragraph (2)—
in paragraph (a), omit “in the case of an application under sub-paragraph (1)(a)(i),”;
omit paragraph (b);
in sub-paragraph (3)—
in paragraph (a), omit “in the case of an application under sub-paragraph (1)(a)(i),”;
omit paragraph (b).
After paragraph 7 insert—
But the requirement in sub-paragraph (5)(b) does not apply in a case where—
Schedule 5A to TCTA 2018 (increase in imports as a result of free trade agreement causing serious injury to UK producers) is amended in accordance with subsections (7) and (8).
Sub-paragraph (2) is to be read as if in paragraph (a)— Sub-paragraph (3) is to be read as if in paragraph (a), for “the applicant UK producers think they” there were substituted “UK producers of the goods”.
After paragraph 5 insert—
This section and section 110 come into force on such day as the Secretary of State may by regulations made by statutory instrument appoint; and different days may be appointed for different purposes.
Section 20 of CEMA 1979 (approval of wharves) is amended as follows.
In subsection (1A)—
omit the “or” after paragraph (a),
after paragraph (a) insert—.
after paragraph (b) insert—
After subsection (1B) insert—
Section 20(A) of CEMA 1979 (approved wharves) is amended as follows.
Renumber that section as section 20A.
In subsection (1)—
in paragraph (a), for “20” substitute “20(1)”, and
after that paragraph insert or
In subsection (1A), after “imposed” insert “by or”.
The amendments made by this section come into force on the day on which this Act is passed.
But CEMA 1979 continues to have effect, for any purpose in connection with duty under section 30A(3) or 40A of TCTA 2018, as if the amendments made by this section had not been made.
In section 54 of FA 2022 (charge to the levy)—
in subsection (1)(b), for the words from “is” to the end substitute “is in any of the bands set out in section 55”, and
in subsection (2)—
in paragraph (a), for “medium” substitute “in band A” and for “£10,000” substitute “£10,200”,
in paragraph (b), for “large” substitute “in band B”,
after paragraph (b) insert—, and
in paragraph (c), for “very large” substitute “in band D” and for “£500,000” substitute “£1million”.
In section 55 of FA 2022 (UK revenue: amount), in subsection (1)—
in paragraph (a), for “medium” substitute “in band A”,
in paragraph (b), for “large” substitute “in band B” and for “£1billion” substitute “£500 million”,
after paragraph (b) insert—, and
in paragraph (c), for “very large” substitute “in band D”.
In consequence of the amendments made by the preceding subsections, in section 189 of the Economic Crime and Corporate Transparency Act 2023, in subsections (3)(b)(ii) and (11) (which operate by reference to provisions amended by this section), for “large or very large” substitute “in any of bands B to D”.
The amendments made by this section have effect for the financial year beginning with April 2026 and subsequent financial years.
In section 106 of FA 2013 (adjustment of amount chargeable), omit subsection (6).
The amendment made by this section is treated as always having been in force.
An excise duty is charged on vaping products produced in, or imported into, the United Kingdom.
The duty is charged at a rate of £2.20 per 10 millilitres, rounded down to the nearest penny.
In this Part, “vaping products duty” means excise duty charged under this section.
In this Part, “vaping product” means a liquid that— and is not a medicinal product or a tobacco product.
contains nicotine and either or both of glycerine and a glycol, or
is intended to be vaporised by a vape,
For the purposes of this Part—
a liquid may be intended to be vaporised by a vape even if a consumer would be required to mix it with another substance before vaporising it by a vape;
a reference to vaporisation includes a reference to aerosolisation;
a reference to a liquid includes a reference to a liquid that has been frozen.
For the purposes of this Part, a vaping product is produced if—
a substance that is not duty-paid is—
combined or mixed with another substance (whether or not that substance is duty-paid), or
otherwise processed, and
the resulting substance is a vaping product.
If a liquid that is not duty-paid is packaged, labelled or advertised so as to indicate it is intended to be vaporised by a vape, the act of packaging, labelling or advertising is to be treated, for the purposes of this Part, as producing a vaping product.
In this section, a reference to a substance or liquid that is not duty-paid is a reference to a substance or liquid that—
is not a vaping product, or
is a vaping product on which duty has not been paid or deferred under a duty deferment arrangement.
Vaping products must not be produced except in accordance with regulations under section 45 of TCTA 2018.
Vaping products duty is to be paid, and the amount chargeable is to be determined and become due, in accordance with provision made by or under—
section 1 of F(No.2)A 1992 (powers to fix excise duty point);
section 45 of TCTA 2018 (general power for excise duty purposes etc).
The Commissioners are responsible for the collection and management of vaping products duty.
For the purposes of this Part, the Commissioners may by regulations make provision—
requiring vaping products to be held in duty suspense arrangements, including in premises of a kind specified in the regulations;
requiring the giving of a guarantee or other security;
for exceptions to sections 129 to 131 (offences);
about civil penalties and forfeiture, including provision for exceptions and joint and several liability;
about appeals, including provision amending FA 1994.
A vaping product must be stamped in accordance with regulations made under this Part and section 45 of TCTA 2018.
For the purposes of this Part, a vaping product is stamped if a duty stamp is affixed to— and a reference to a stamp being affixed to a vaping product includes a reference to a stamp being affixed to its retail packaging.
the vaping product, or
the retail packaging of the vaping product,
The Commissioners may by regulations make provision—
requiring a stamp to be linked to a particular vaping product;
specifying information to be provided to HMRC for the purpose of paragraph (a) or otherwise in connection with a stamped vaping product.
In this Part, a “duty stamp” means a document issued by the Commissioners that—
is designed to be affixed to a vaping product or the retail packaging of a vaping product,
is uniquely identifiable, and
indicates that the product to which it is affixed is liable to vaping products duty.
The Commissioners must make arrangements for the issue and management of duty stamps.
The Commissioners may by regulations provide for the charging of fees in connection with the issue and management of duty stamps (but such a fee may not offset any liability to vaping products duty).
The Commissioners may by published notice authorise a person to act as a stamp issuer for the purposes of this Part.
In this Part, “stamp issuer” means—
a person authorised under subsection (3), or
if no person is authorised, the Commissioners.
A duty stamp may not be issued to a person who is not approved under this section.
The Commissioners may approve a person if they are satisfied that the person—
has a fixed place of business in the United Kingdom, and
meets such other requirements as may be specified in regulations under section 45 of TCTA 2018.
An approved stamp holder may not transfer a duty stamp to any person before it has been affixed to, and activated in respect of, a vaping product (in which case it may be transferred as part of the vaping product).
Subsection (3) does not prevent the return of stamps to a stamp issuer.
The Commissioners may by regulations make provision—
about what it means to have a fixed place of business in the United Kingdom;
for exceptions to subsection (3);
limiting the number of duty stamps that may be issued to (or, in the case of an overseas person, in respect of) a person within a specified period;
permitting or requiring duty stamps to be voided, destroyed or returned in certain circumstances, including on the expiry of a specified period.
The Commissioners may approve an approved stamp holder to represent a person who does not have a fixed place of business in the United Kingdom.
A duty stamp may, at the request of a UK representative, be issued to the UK representative by way of delivery to an overseas person.
A UK representative is responsible for a stamp issued as described in subsection (2) from the point at which it is delivered to the overseas person.
Section 122(3) (restriction on transfer) does not apply in relation to the transfer of a duty stamp between a UK representative and an overseas person.
A UK representative who transfers a duty stamp to an overseas person remains responsible for the stamp after transfer.
For the purposes of subsections (3) and (5), a person who is responsible for a stamp is also liable to penalties arising under this Part or regulations made under this Part in respect of it.
The Commissioners may by regulations make provision about UK representatives, including provision—
about their dealings with an overseas person and what it means to be responsible for duty stamps, and
providing for exceptions to this section.
In this Part— and a reference to a stamp being delivered to an approved stamp holder includes, in the case of a UK representative, a reference to a stamp being delivered to an overseas person.
“regulated activity” and “specified emissions” have the meaning given by paragraph 3 of Schedule 2 to the UK ETS Order (or, in relation the 2019 scheme year, given by regulation 3 of the ETS Regulations as it had effect during that year);
The following things are liable to forfeiture—
an unstamped vaping product;
an invalid duty stamp and any product to which an invalid duty stamp is affixed;
a duty stamp that, after the end of the period of 12 months beginning with the day on which it was issued, has not been—
affixed to, and activated in respect of, a vaping product, or
returned to a stamp issuer.
In subsection (1)(b), an “invalid duty stamp” means—
a duty stamp which has been altered after it has been issued;
a document which purports to be (but is not) a duty stamp;
a voided duty stamp.
For things that are liable to forfeiture only in particular circumstances, see—
section 128 (civil penalties);
section 133 (criminal offences).
A person who sells, offers for sale or otherwise deals in unstamped vaping products packaged for retail sale is liable to a penalty.
The penalty under subsection (1) is the amount indicated in the table, to be determined by cross-referencing—
the number of units in respect of which the penalty is imposed, and
whether it is the first, second or further time that the person has been liable to a penalty under subsection (1) since the beginning of the relevant period. 1 to 99 units 100 to 299 units 300 to 499 units 500 units or more First time £2,500 £5,000 £7,500 £10,000 Second time £5,000 £7,500 £10,000 £10,000 Further time £7,500 £10,000 £10,000 £10,000
For the purpose of determining a penalty under subsection (2)—
“unit” means an amount of vaping product packaged for individual retail sale.
An approved stamp holder to whom a duty stamp is issued and delivered is liable to a penalty if—
the stamp is lost, or
at the end of the period of 12 months beginning with the day on which the stamp was issued, the stamp has not been—
affixed to, and activated in respect of, a vaping product,
returned to a stamp issuer, or
destroyed.
Subsection (1) does not apply if the stamp was lost in circumstances where the approved stamp holder—
did not cause the loss, and
took all reasonable steps to protect against the loss.
The penalty under subsection (1) is an amount equal to five times the monetary amount specified in section 115 (excise duty: charge).
The following is conduct which attracts a penalty under section 9 of FA 1994—
altering a duty stamp after it has been issued;
affixing an invalid duty stamp to a vaping product.
In this section, an “invalid duty stamp” means—
a duty stamp which has been altered after it has been issued;
a document which purports to be (but is not) a duty stamp;
a voided duty stamp.
Failure to comply with a provision or requirement specified in subsection (2) is conduct which attracts a penalty under section 9 of FA 1994.
The following provisions and requirements are specified for the purpose of subsection (1)—
provision contained in this Part or regulations made under this Part;
provision contained in regulations made under section 45 of TCTA 2018 insofar as it applies in relation to vaping products duty;
any requirements imposed under such provision.
This section applies (in addition to section 124) where a person is liable to a penalty under section 125 or 127(1).
Where a person is liable to a penalty under section 125 (dealing in unstamped vaping products), any stamped vaping product— is liable to forfeiture.
that is in the person’s possession at the time of the conduct in respect of which the liability arises, and
which the Commissioners have reason to believe is owned or used in the course of a business carried out by any person,
Where a person is liable to a penalty for a failure of a kind described in section 127(1) (failure to comply with this Part etc), the following things are liable to forfeiture—
any vaping product or duty stamp to which the failure relates, or
where the failure relates to premises—
any stamped vaping product found on the premises which the Commissioners have reason to believe is owned or used in the course of a business carried out by any person, and
any duty stamp found on the premises.
It is an offence for a person who is not an approved stamp holder to possess a duty stamp that has not been affixed to a vaping product.
It is an offence for a person to transfer a duty stamp that has not been affixed to a vaping product to another person.
It is a defence for a person charged with an offence under this section to prove that they did not know, suspect or have reason to suspect that they were possessing or transferring a duty stamp that had not been affixed to a vaping product.
Subsection (1) and (2) do not apply in relation to—
a transfer between a UK representative and an overseas person,
possession by the overseas person, or
a person providing a delivery service on a commercial basis.
Subsection (2) does not apply in relation to a transfer to a stamp issuer.
It is an offence to— an unstamped vaping product.
possess, transport or display, or
sell, offer for sale or otherwise deal in,
It is an offence for a person who is a manager of premises to cause or permit the premises to be used for the sale of an unstamped vaping product.
It is a defence for a person charged with an offence under this section to prove that they did not know, suspect or have reason to suspect that the product to which the charge relates was an unstamped vaping product.
A manager of premises is a person who—
is entitled to control their use,
is entrusted with their management, or
is in charge of them.
If a person is convicted of an offence under section 130(2), the court by which the person is convicted of the offence may make an order prohibiting the use of the premises in respect of which the offence was committed for the sale of vaping products.
The term of the order may not exceed twelve months.
It is an offence for a manager of premises to cause or permit the premises to be used in breach of an order under this section.
In this section, “manager of premises” has the meaning given in section 130.
A person who commits an offence under sections 129 to 131 is liable on summary conviction—
in England and Wales, to imprisonment for a term not exceeding the general limit in a magistrates’ court, or a fine, or both;
in Scotland, to imprisonment for a term not exceeding 12 months, or a fine not exceeding the statutory maximum, or both;
in Northern Ireland, to imprisonment for a term not exceeding six months, or a fine not exceeding the statutory maximum, or both.
A person who commits an offence under sections 129 to 131 is liable, on conviction on indictment, to imprisonment for a term not exceeding 2 years, or a fine, or both.
This section applies (in addition to section 124) where a person has committed an offence under sections 129 to 131.
In the case of an offence under section 129 (dealing in duty stamps), the following things are liable to forfeiture—
any duty stamp in relation to which the offence is committed, and
any duty stamp that is not affixed to a vaping product and that is in the person’s possession at the time the offence is committed.
In the case of an offence under section 130(1) (dealing in unstamped vaping products), any stamped vaping product— is liable to forfeiture.
that is in the person’s possession at the time the offence is committed, and
which the Commissioners have reason to believe is owned or used in the course of a business carried out by any person,
In the case of an offence under section 130(2) or 131 (unlawful use of premises), any stamped vaping product— is liable to forfeiture.
that is on the premises at the time the offence is committed, and
which the Commissioners have reason to believe is owned or used in the course of a business carried out by any person,
The Commissioners may publish information provided to HMRC under section 120(3)(b) (stamping of vaping products) for the purpose of enabling retailers, consumers and other persons to assess whether a duty stamp has been activated in respect of a vaping product.
The Commissioners may disclose such information as the Commissioners consider appropriate in connection with—
the Commissioners’ functions relating to vaping products duty, or
the recipient’s functions relating to vaping products duty.
Any person with functions relating to vaping products duty may disclose to HMRC such information as the person considers appropriate in connection with—
the Commissioners’ functions relating to vaping products duty, or
the person’s functions relating to vaping products duty.
A person who receives information from the Commissioners as a result of this section may not— except with the consent of the Commissioners (which may be general or specific).
use the information for a purpose other than the purpose for which it was disclosed, or
further disclose the information,
If— section 19 of CRCA 2005 (offence of wrongful disclosure) applies in relation to that disclosure as it applies in relation to a disclosure of information in contravention of section 20(9) of that Act.
a person discloses information in contravention of subsection (3)(b), and
the information relates to a person whose identity is specified in, or can be deduced from, the disclosure,
Nothing in this section limits the circumstances in which information may be disclosed under section 18(2) of CRCA 2005 or under any other enactment or rule of law.
In this section, a reference to the Commissioners or HMRC include a reference to anyone acting on their behalf.
A local enforcement authority may investigate compliance with this Part, regulations made under this Part and regulations made under section 45 of TCTA 2018 in relation to vaping products duty, and may carry out inspections of vaping products for that purpose.
In this section, “local enforcement authority” means—
in Great Britain, a local weights and measures authority within the meaning of section 69 of the Weights and Measures Act 1985;
in Northern Ireland, a district council.
Regulations under this Part may—
confer a discretion on any specified person to do anything under, or for the purposes of, the regulations;
make provision by reference to things specified in a notice published in accordance with the regulations;
make supplementary, incidental and consequential provision;
make transitional or transitory provision and savings.
A power to make regulations under this Part, or a power to exercise a discretion or publish a notice under regulations made under this Part, may be exercised—
in relation to all cases to which the power extends, or in relation to those cases subject to specified exceptions, or in relation to any specified case or description of case;
so as to make different provision for different purposes or areas.
A notice published under this Part may be withdrawn or revised by further published notice.
A power to make regulations under this Part does not restrict any power to make legislation under any other enactment relating to excise duty.
Regulations under this Part must be made by statutory instrument.
A statutory instrument containing regulations under this Part is subject to made affirmative procedure if it contains (whether alone or with other provision) provision that—
amends an Act of Parliament,
restricts any rebate of or relief from vaping products duty, or
extends the cases in which vaping products are required to be stamped.
Where a statutory instrument is subject to made affirmative procedure—
it must be laid before the House of Commons after being made, and
it ceases to have effect at the end of the period of 28 days beginning with the day on which the instrument is made, unless within that period the instrument is approved by a resolution of the House of Commons.
Where a statutory instrument ceases to have effect as a result of subsection (3), that does not—
affect the validity of anything previously done under the instrument, or
prevent the making of a new statutory instrument.
In calculating the period of 28 days for the purposes of subsection (3), no account is to be taken of any whole days that fall within a period during which—
Parliament is dissolved or prorogued, or
the House of Commons is adjourned for more than 4 days.
A statutory instrument containing regulations under this Part is subject to annulment in pursuance of a resolution of the House of Commons if it does not contain provision of a kind described in subsection (2).
Subsections (2) to (6) do not apply to regulations made under section 141 (commencement and transitional provision).
Schedule 15 contains amendments of other enactments.
In this Part—
“stamp issuer” has the meaning given in section 121(4);
a person who issues credit cards;
repayment or increased repayment from tax,
“authorised officer of Revenue and Customs” means an officer of Revenue and Customs who is, or is a member of a class of officers who are, authorised by the Commissioners for the purpose of this Chapter;
Section 115 comes into force on 1 October 2026.
Section 115 has effect in relation to vaping products that— as though they were produced in, or imported into, the United Kingdom on 1 October 2026.
were produced in, or imported into, the United Kingdom before 1 October 2026, and
are stamped (see section 120(2)),
Sections 117(4) (production only in accordance with regulations) and 120(1) (duty to stamp in accordance with regulations) come into force on such day as the Treasury may by regulations appoint.
Section 129 comes into force two months after this Act is passed.
Sections 130 and 131 (dealing in unstamped vaping products and sales ban) come into force on 1 April 2027, and have effect in relation to vaping products irrespective of when they were produced or imported.
The Treasury may by regulations provide that, for a specified period, this Part has effect as though—
a reference to a duty stamp includes a reference to a transitional duty stamp;
in section 122(3) the words “and activated in respect of” were omitted;
sections 124(1)(c) and 126(1)(b) were omitted.
Regulations under subsection (6) may—
define “transitional duty stamp”;
make further provision about the specified period and transitional duty stamps.
The Treasury may by regulations provide that, for a specified period, this Part has effect as though a reference to an approved stamp holder or UK representative is a reference to a person being approved or treated as an approved stamp holder or UK representative.
Regulations under subsection (8) may make provision about when a person is to be treated as an approved stamp holder or UK representative.
The Treasury may by regulations extend a period specified in regulations under this section.
Regulations under subsection (7)(b) may include provision imposing penalties and for forfeiture.
A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.
A tax called the carbon border adjustment mechanism (“CBAM”) is to be charged in accordance with this Part.
In this Part—
sections 143 to 150 and Schedule 16 set out the charge to CBAM (and include exemptions and relief);
section 151 and Schedule 17 provide for the administration and enforcement of CBAM;
section 152 and Schedule 18 provide for criminal offences relating to CBAM;
sections 153 to 158 and Schedule 19 make general provision.
CBAM is charged on the emissions embodied in a CBAM good when the good is imported into the United Kingdom.
In this Part, “CBAM good” means a good specified by Schedule 16 (but see section 145(3)).
Schedule 16 specifies the following kinds of goods—
aluminium goods;
cement;
fertilisers;
hydrogen;
iron and steel goods.
For the purposes of this Part, a reference to a good being imported into the United Kingdom is a reference to—
the first time a good is imported as described in this section, and
if a good is imported as described in this section and subsequently exported from the United Kingdom, the next time the good is imported as described in this section.
If a CBAM good is chargeable to import duty under section 1 of TCTA 2018, it is imported when liability to import duty is incurred in respect of the good.
If a CBAM good is chargeable to duty under section 30C of TCTA 2018, it is imported when liability to that duty is incurred in respect of the good.
If a CBAM good is chargeable to duty under section 30A(3) or 40A(1)(a) of TCTA 2018 (or would be so chargeable but for regulations within section 30B(1)(a) or 40B(1)(a) of that Act), it is imported when liability to that duty is incurred in respect of the good (or would be incurred but for the regulations).
If a CBAM good is— it is imported at the time of importation for the purposes of the customs and excise Acts.
a Union good that is imported into the United Kingdom as a result of its entry into Northern Ireland and not excluded by regulations made by the Treasury,
a good that is imported into the United Kingdom from the Isle of Man and not excluded by regulations made by the Treasury,
a domestic good by virtue of regulations made under section 33(8) of TCTA 2018 relating to goods declared for an outward processing procedure, or
a domestic good by virtue of subsection (6) of section 36 of TCTA 2018 or regulations made under that section,
If a CBAM good would be chargeable to duty under section 30C of TCTA 2018 but for regulations within subsection (6)(a) of that section, it is imported at the time of entry of the good in Great Britain in the course of the removal of the good to Great Britain from Northern Ireland.
The reference in subsection (4) to when liability to duty under section 30A(3) or 40A(1)(a) of TCTA 2018 is incurred in respect of a good is to when, for the purpose of the duty, a customs debt on import is incurred under UCC 2013.
For the purposes of determining, in accordance with subsection (5), when a CBAM good is imported into the United Kingdom from the Isle of Man, section 8 of the Isle of Man Act 1979 (removal of goods from the Isle of Man) has effect as if, in subsection (2) of that Act, at the end of paragraph (c), there were inserted ; or
Section 5 of CEMA 1979 applies for the purpose of subsection (6) to determine the time of entry of a CBAM good in Great Britain in the course of the removal of the good to Great Britain from Northern Ireland as it applies for the purpose of the customs and excise Acts to determine the time of importation of goods—
reading references in that section to the time of importation of goods as the time of entry of the CBAM good in Great Britain, and
reading references in subsections (2) and (6) of that section to the United Kingdom as Great Britain.
Regulations made by the Treasury may exclude from subsection (4) or (6) (as the case may be) goods that would be chargeable to duty under section 30A(3), 30C or 40A(1)(a) of TCTA 2018 but for regulations within section 30B(1)(a), 30C(6)(a) or 40B(1)(a) of that Act.
Subsection (2) applies where—
a CBAM good has been declared for a special customs procedure,
the CBAM good is processed under the procedure,
the processing produces a good that is not a CBAM good, and
that good is imported into the United Kingdom.
When the good that is not a CBAM good is first imported as described in section 144, CBAM is charged on so much of the emissions embodied in that good as were embodied in the CBAM good when it was declared for the special customs procedure.
References in this Part to a CBAM good include a reference to a good imported in the circumstances described in subsection (1).
In this section, “special customs procedure” means—
a special Customs procedure (within the meaning of section 3(4) of TCTA 2018);
a special procedure provided for by Title 7 of UCC 2013, other than the outward processing procedure.
The person liable to CBAM on the emissions embodied in a CBAM good is the importer.
If a CBAM good is imported as described in section 144(2), (3) or (6), the importer is—
if liability to import duty, or duty under section 30C of TCTA 2018, is incurred when a declaration for a Customs procedure is accepted, or when there is a breach of a requirement relating to the procedure—
the person in whose name the declaration for the procedure was made, or
if the declaration was made on behalf of another person, the person on whose behalf the declaration was made, or
if paragraph (a) does not apply, the person on whose behalf the good is imported.
If a CBAM good is imported as described in section 144(4), the importer is—
if liability to duty under section 30A(3) or 40A(1)(a) of TCTA 2018 is incurred when a Union customs declaration in respect of the good is accepted, or when there is a breach of a requirement relating to the procedure for which it is accepted—
the declarant, or
if the declaration was made on behalf of another person, the person on whose behalf the declaration was made, or
if paragraph (a) does not apply, the person on whose behalf the good is imported.
If a CBAM good is imported as described in section 144(5), the importer is the person on whose behalf the good is imported.
In this section—
“sub-installation” means each kind of sub-installation defined by Article 2 of Commission Delegated Regulation (EU) 2019/331 determining transitional Union-wide rules for harmonised free allocation of emission allowances pursuant to Article 10a of Directive 2003/87/EC of the European Parliament and of the Council (or, in relation to the 2019 scheme year, has the meaning given by regulation 3 of the ETS Regulations as it had effect during that year);
a financial institution under the CRS other than one which is such an institution only because it is an investment entity within section 8(A)(6)(b) of the CRS;
CBAM is not charged on the emissions embodied in a CBAM good if the importer—
is, at the time the good is imported, neither registrable nor registered (see Part 2 of Schedule 17), or
is importing the good otherwise than in the course of a business.
CBAM is not charged on the emissions embodied in a CBAM good if—
the place of origin of the good is the United Kingdom, determined in accordance with provision applicable in relation to the customs tariff in its standard form (see section 17(1) to (6) of TCTA 2018);
the good is imported as described in section 144(2) or (3) and returned goods relief is available in respect of the good;
the good is imported as described in section 144(4) and relief under Article 203 of UCC 2013 (returned goods) is available in respect of the good;
the good is within section 144(5)(a) and was—
exported from the United Kingdom as a Union good as a result of its removal from Northern Ireland, and
imported into the United Kingdom as described in section 144(5)(a) not more than 3 years later, in the state in which it was exported (see Article 203(5) of UCC 2013);
the good is imported as described in section 144(5)(b) and returned goods relief would be available in respect of it if liability to import duty were incurred by reference to its importation into the United Kingdom.
CBAM is not charged on so much of the emissions embodied in a CBAM good (“the chargeable good”) as are attributable to the production of another CBAM good which—
originated from the United Kingdom, determined in accordance with provision applicable in relation to the customs tariff in its standard form (see section 17(1) to (6) of TCTA 2018), and
was processed to produce the chargeable good.
If, but for this subsection, a liability to duty would have been incurred for the purposes of section 144(2) or (3) in circumstances where— the liability to duty is treated as not having been incurred on that occasion for the purposes of section 144(2) or (3) (and, accordingly, the good is treated as not having been imported as described in section 144(2) or (3) on that occasion).
liability to duty was incurred in accordance with section 4(4)(a) of TCTA 2018,
liability to duty was incurred by virtue of HMRC accepting a declaration of the good for a temporary admission procedure, and
full relief was given from the liability to duty incurred,
But subsection (4) does not apply if—
there was no entitlement to make the declaration mentioned in subsection (4)(b), or
the full relief given, mentioned in subsection (4)(c), was not available.
The Treasury may by regulations specify other circumstances in which CBAM is not charged on emissions, or certain emissions, embodied in a CBAM good.
Regulations under subsection (6) may also treat an importation into the United Kingdom, for any purpose of this Part, of a CBAM good in respect of which the regulations apply as not having occurred (including by virtue of provision similar to subsection (4)).
In this section—
In this Part, “emissions embodied in a CBAM good” means emissions that are attributable to the production of a CBAM good.
The Treasury may by regulations make provision about what it means for emissions to be attributable to the production of a CBAM good.
Regulations under subsection (2) may (among other things) make provision about emissions that are emitted in the course of an activity carried out in connection with the production of—
a CBAM good, or
materials used (including goods processed) to produce a CBAM good.
See paragraphs 10 and 11 of Schedule 17 for provision about how to determine and evidence emissions embodied in a CBAM good.
CBAM is charged at an amount equal to the sectoral domestic price applicable in respect of the CBAM good multiplied by the number of tonnes of carbon dioxide equivalent emissions embodied in the CBAM good.
The “sectoral domestic price” applicable in respect of a CBAM good is the price calculated and published by the Treasury for—
the CBAM sector in which the good falls, and
the quarter in which the liability to CBAM is incurred in respect of the good.
The Treasury must calculate and publish the sectoral domestic price for each CBAM sector for each quarter (“quarter Q”) as follows— Step 1 Calculate the average price per tonne of specified emissions under the UK Emissions Trading Scheme in the quarter preceding quarter Q— by reference to auction clearing prices for UK ETS allowances at auctions during the quarter preceding quarter Q, or if no allowances were sold at auction during that quarter, as provided in regulations under subsection (6). Step 2 Reduce that price by a percentage equal to the baseline free allocation percentage for the CBAM sector, as adjusted by a factor specified by regulations under subsection (6)— for the CBAM sector for the year in which quarter Q falls, and in light of reduction factors applicable in determining, under the UK Emissions Trading Scheme, the allocation in that year of free UK ETS allowances in respect of sub-installations that have a process that serves production of goods falling within the CBAM sector.
In this section—
“UK ETS Order” means the Greenhouse Gas Emissions Trading Scheme Order 2020 (S.I. 2020/1265).
In determining the “baseline free allocation percentage” in relation to a CBAM sector, ignore any scheme year in which there were no sectoral emissions.
The Treasury may by regulations make further provision about the calculation of the sectoral domestic price.
In this section—
references to a good falling within a CBAM sector are references to the good falling within one of the commodity codes comprising the sector;
references to emissions are references to tonnes of carbon dioxide equivalent emissions;
references to regulated activities carried out to produce goods include regulated activities consisting in the production of heating and cooling consumed during the regulated activities.
The amount of CBAM charged on emissions may be reduced under this section if another monetary amount is payable in relation to the emissions, whether the amount is—
in the form of taxation,
in exchange for allowances (however expressed) under an emissions trading scheme, or
required to be paid under the law of a country or territory in connection with the importation of goods into the country or territory.
The Treasury may by regulations make provision about relief under this section, including provision—
describing which monetary amounts may generate relief,
about when a monetary amount is to be treated as being payable in relation to emissions, and how the emissions are to be identified, and
about determining the amount of relief.
In this Part, “carbon price” means a monetary amount of a kind described in regulations under subsection (2)(a).
Regulations under subsection (2) may (among other things) make provision—
for the amount of relief to be determined by reference to averages, estimates, assumptions or by reference to information provided by a third party;
to take account of other reliefs, allowances, offsets or similar relating to a carbon price;
about cases where two or more carbon prices are payable in relation to the same emissions;
for the amount of relief to differ depending on where the carbon price is payable;
specifying periods by reference to which calculations or measurements are to be made.
In this section, references to an amount being payable in relation to emissions includes a reference to—
an amount that indirectly relates to emissions, and
an amount having been payable, or that is going to become payable, in relation to emissions.
Schedule 17 makes provision for the administration and enforcement of CBAM.
Schedule 18 makes provision for criminal offences relating to CBAM and about proceedings for those offences.
Schedule 19 contains supplementary amendments of other legislation.
In this Part, “emissions” means emissions of greenhouse gases (within the meaning of section 92 of the Climate Change Act 2008) into the atmosphere that are attributable to human activity.
For the purposes of this Part, “emissions” are determined or expressed in tonnes of carbon dioxide equivalent.
In this Part, a “tonne of carbon dioxide equivalent” means one metric tonne of carbon dioxide or an amount of any other greenhouse gas with an equivalent global warming potential.
The Commissioners may by regulations make provision setting, or about the determination of, such amounts.
In this Part—
where the provision referred to in subsection (1)(a) is section 86 of FA 2022— in subsection (1)(a), an officer of Revenue and Customs; in subsections (3) and (4), an authorised officer as defined for the purposes of that section;
In this Part—
a person imports a CBAM good only if the person is “the importer” of the good (within the meaning of section 146);
references to the production of goods include the manufacture of goods;
references to the processing of goods have the same meaning as in TCTA 2018 (see section 37(4) of that Act).
The Treasury may by regulations make such amendments to this Part as they consider appropriate in consequence of UCC 2013, or any legislation replacing it, being amended or replaced.
The Treasury may by regulations amend this Part for the purpose of—
excluding emissions embodied in goods that originate from a country or territory with a linked emissions trading scheme from the charge to CBAM;
providing that such goods are to be disregarded when calculating the aggregate value of imports for the purposes of Part 2 of Schedule 2 (registration).
In this section, “a country or territory with a linked emissions trading scheme” means—
a country or territory that has entered into arrangements with the United Kingdom for the purpose of linking its emissions trading scheme with the UK Emissions Trading Scheme, or
a country or territory that has entered into arrangements with a country or territory of a kind referred to in paragraph (a) for the purpose of linking its emissions trading scheme with that country or territory’s emissions trading scheme.
Regulations under this Part—
may make different provision for different purposes;
may include incidental, consequential, supplementary or transitional provision.
Regulations under this Part may make provision by reference to things specified in a notice that is—
published by the Treasury or the Commissioners in accordance with the regulations, and
not withdrawn by a further notice.
Regulations under this Part are to be made by statutory instrument.
A statutory instrument containing regulations under section 156(1) (linked emission trading schemes) is subject to the affirmative procedure.
A statutory instrument containing regulations under any of the following provisions is subject to the made affirmative procedure—
section 149(6) (rate of CBAM);
section 150(2) (carbon price relief);
paragraph 47 of Schedule 17 (amount of penalties).
A statutory instrument containing regulations under paragraph 2(3) of Schedule 16 and under section 8 of TCTA 2018 is subject to the procedure under section 32 of TCTA 2018 that applies by virtue of the instrument containing regulations section 8 of TCTA 2018.
A statutory instrument containing regulations under this Part, other than regulations in respect of which subsection (4), (5) or (6) applies, is subject to the negative procedure.
Subsection (7) does not apply to a statutory instrument containing only regulations under section 158 (transitory provision).
Where a statutory instrument is subject to the affirmative procedure, it may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons.
Where a statutory instrument is subject to the made affirmative procedure—
it must be laid before the House of Commons after being made, and
it ceases to have effect at the end of the period of 28 days beginning with the day on which the instrument is made, unless within that period the instrument is approved by a resolution of the House of Commons.
Where a statutory instrument is subject to the negative procedure, it is subject to annulment in pursuance of a resolution of the House of Commons.
Where a statutory instrument ceases to have effect as a result of subsection (10), that does not—
affect the validity of anything previously done under the instrument, or
prevent the making of a new statutory instrument.
In calculating the period of 28 days for the purposes of subsection (10), no account is to be taken of any whole days that fall within a period during which—
Parliament is dissolved or prorogued, or
the House of Commons is adjourned for more than 4 days.
Any provision that may be included in regulations in a statutory instrument under this Part subject to the negative procedure may be included in regulations in a statutory instrument subject to the affirmative procedure or the made affirmative procedure.
Any provision that may be included in regulations in a statutory instrument under this Part subject to the made affirmative procedure may be included in regulations in a statutory instrument subject to the affirmative procedure.
A notice published by the Treasury or the Commissioners under this Part—
may be amended or withdrawn by a further notice;
may include provision mentioned in subsection (1)(a) and (b).
This Part has effect in relation to goods imported into the United Kingdom on or after 1 January 2027.
The Treasury may by regulations modify the effect of—
paragraph 2(4) of Schedule 17 as regards any person who triggers registration in 2027 or 2028;
paragraph 6(2) or (3) or 7(2) for the purposes of any accounting period in respect of CBAM falling in 2027 or 2028.
Provision included in regulations under this section by virtue of section 157(1)(b) may modify the effect of any enactment.
A person must not promote arrangements that—
have been, or are likely to be, marketed as a means by which a person may seek a particular tax advantage if there is no realistic prospect that the arrangements will result in the tax advantage, or
are of a kind specified in regulations under subsection (2).
The Commissioners may by regulations specify arrangements that in the reasonable opinion of the Commissioners—
have been, or are likely to be, marketed as a means by which a person may seek a particular tax advantage,
are unlikely to result in the tax advantage, and
are likely to cause harm to participants.
The following factors would, for example, indicate that arrangements are likely to cause harm to participants—
a large number of participants;
participants that are not independently advised;
participants with otherwise straightforward tax affairs;
mass-marketing;
standardised implementation documents;
promoters that are unknown to, or not able to be contacted by, participants.
Regulations under subsection (2) may specify arrangements by—
describing—
some or all of the steps to be taken by participants or other persons;
the tax advantage sought;
the marketing;
characteristics of participants;
providing examples or illustrations;
such other means as the Commissioners consider appropriate.
It does not matter for the purposes of this section whether a person knows, or has reason to believe, that the arrangements fall within subsection (1).
For the purposes of section 159, a person promotes arrangements if, in the course of a business or with a view to monetary gain, the person—
communicates information with a view to encouraging another person to implement the arrangements or part of the arrangements,
makes the arrangements available for implementation by another person,
in circumstances where the arrangements have been implemented by another person, organises or manages any aspect of the arrangements, or
arranges (whether directly or indirectly) for another person or persons to take the steps above.
A person does not promote arrangements merely by—
providing goods or services on commercial terms in circumstances where the person does not know, and could not reasonably be expected to know, that the goods or services are being procured or used for the purposes of arrangements falling within section 159(1) (prohibition of promotion), or
providing legally privileged advice or legally privileged information.
For the purposes of subsection (2)(b), advice or information is legally privileged if a claim to legal professional privilege, or (in Scotland) to confidentiality of communications as between client and professional legal adviser, could be maintained in respect of it in legal proceedings.
Regulations under section 159(2) are to be made by statutory instrument.
A statutory instrument containing regulations under section 159(2) must be laid before the House of Commons after being made.
Regulations contained in a statutory instrument laid before the House of Commons under subsection (2) cease to have effect at the end of the period of 28 days beginning on the day on which the instrument is made unless, during that period, the instrument is approved by a resolution of the House of Commons.
In calculating the period of 28 days, no account is to be taken of any whole days that fall within a period during which—
Parliament is dissolved or prorogued, or
the House of Commons is adjourned for more than four days.
If the regulations cease to have effect as a result of subsection (3), that does not—
affect the validity of anything previously done under the regulations, or
prevent the making of new regulations.
A person who promotes arrangements in breach of section 159(1) is liable to a penalty.
The maximum penalty under this section is the sum of—
£1,000,000, and
£5,000 for each person who participated in the arrangements.
Before imposing a penalty under this section, an authorised officer of Revenue and Customs must—
notify the person of the fact that the authorised officer considers subsection (1) to apply, and
allow the person 30 days from the date of notification to make representations to HMRC.
In imposing a penalty under this section, an authorised officer of Revenue and Customs must have regard to—
the number of persons participating, or targeted to participate, in the arrangements,
the amount of tax that was likely at risk in connection with the arrangements,
whether and to what extent the person cooperated with HMRC, and
whether the wrongdoing was repeated, or continued over an extended period.
A penalty imposed under this section is to be treated as a penalty determined under section 100(1) of TMA 1970.
A penalty imposed under this section is to carry interest in accordance with section 101 of FA 2009.
A person is not liable to a penalty under this section in respect of anything for which the person has been convicted of an offence.
In paragraph 5(6) of Schedule 13 to FA 2020 (joint and several liability of company directors etc) after paragraph (f) insert—
A person who promotes arrangements in breach of section 159(1) commits an offence.
A person who commits an offence under this section is liable—
on summary conviction, to—
in England and Wales, a fine, or
in Scotland or Northern Ireland, a fine not exceeding the statutory maximum, or
on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or both.
If an offence under section 163 is committed by a body corporate or a partnership and— the responsible person commits the offence (as well as the body or partnership).
is committed with the consent or connivance of a responsible person, or
is attributable to the neglect of a responsible person,
A “responsible person” means—
in relation to a body corporate other than one whose affairs are managed by its members—
a director, manager, secretary or other similar officer of the body, or a person purporting to act in such a capacity, or
a shadow director within the meaning given in section 251 of the Companies Act 2006;
in relation to a limited liability partnership or other body corporate whose affairs are managed by its members—
a member exercising management functions, or purporting to do so, or
in the case of a limited liability partnership, a shadow member;
in relation to a partnership, a partner or a person purporting to act in that capacity.
In this section, a “shadow member” means a person in accordance with whose directions or instructions the members of the limited liability partnership are accustomed to act, save that a person is not a shadow member by reason only of the fact that the members act on advice given by that person in a professional capacity.
In this Chapter—
“arrangements” includes any agreement, scheme, arrangement or understanding of any kind whether or not legally enforceable involving one or more transactions, and includes a proposal for arrangements;
“promotion” has the meaning it has in section 236B(1) of FA 2014 (effect of stop notices) or section 159 (prohibition of promotion of certain tax avoidance arrangements) (as the context requires).
Section 159(1) comes into force two months after the day on which this Act is passed.
An authorised officer of Revenue and Customs may, for the purposes of this Chapter, certify that a person is promoting arrangements—
in breach of section 236B of FA 2014 (effect of stop notices), or
in breach of section 159(1) (prohibition of promotion of certain tax avoidance arrangements).
A certification under subsection (1) must be in writing and include the following—
the name of the person,
a statement to the effect that—
an authorised officer of Revenue and Customs has certified that the person is promoting arrangements as described in subsection (1)(a) or (b), and
accordingly, the person is a certified promoter for the purposes of this Chapter,
a summary of the officer’s reasons for coming to the conclusion certified, including a description of the arrangements and promotion, and
information about how the person may make representations to HMRC (see subsection (4)(b)).
For the purposes of this Chapter, a “certified promoter” means a person certified under this section.
Before issuing a notice under section 167 (promoter action notice) in respect of a certified promoter, an authorised officer of Revenue and Customs must—
provide the certified promoter with a copy of the certification, and
allow the certified promoter 30 days from the date of provision to make representations to HMRC.
An authorised officer of Revenue and Customs may issue a notice to a person if the officer reasonably suspects that—
the person (the “recipient”) is providing goods or services to a certified promoter (the “target”), and
the goods or services are being procured or used wholly or partly in connection with the promotion of arrangements in respect of which the target is certified.
For the purposes of this Chapter, a “promoter action notice” means a notice issued under subsection (1).
A promoter action notice may, for the purpose of impeding the target’s promotion of the arrangements, require the recipient of the notice to—
stop providing some or all of the goods or services,
provide the goods or services subject to specified conditions, or
take specified steps in relation to the provision of the goods or services.
A promoter action notice must identify the target and specify—
the goods or services in respect of which it is issued,
the requirements applicable under subsection (3), and
the time by which the recipient must comply with the requirements under subsection (3).
A time specified under subsection (4)(c)—
must be the end of—
the period of 30 days beginning with the day on which the notice is issued, or
such longer period as an authorised officer of Revenue and Customs considers appropriate, and
takes precedence over any statutory or regulatory requirement to provide a period of notice before terminating or modifying a contract.
A promoter action notice may not—
require the recipient to monitor or assess whether or how particular goods or services are being procured or used in connection with the promotion or arrangements,
restrict the provision of services that provide access to the internet, or
restrict the provision of legal or auditing services.
An authorised officer of Revenue and Customs may withdraw a promoter action notice.
The recipient is not liable in damages in respect of anything done, or omitted to be done, in good faith for the purposes of complying with a promoter action notice.
An authorised officer of Revenue and Customs may issue a notice to a person who the officer reasonably suspects is providing goods or services as described in section 167(1).
A notice under this section must—
identify the target referred to in section 167(1);
give reasons for the suspicion referred to in subsection (1);
allow the recipient of the notice a period of 30 days from the date of the notice to make representations to HMRC.
A notice under this section may request information from the recipient.
A disclosure of information by the recipient in response to a request under subsection (3) does not breach—
any obligation of confidence owed by the person making the disclosure, or
any other restriction on the disclosure of information (however imposed).
A person who receives a notice under this section may not disclose the existence or contents of the notice to—
the target identified in the notice, or
any person who might reasonably be expected to disclose the existence or contents of the notice to the target.
An authorised officer of Revenue and Customs may withdraw a notice under this section.
An authorised officer of Revenue and Customs may for the purposes of this Chapter disclose—
information relating to the target identified in a promoter action notice to the recipient of the notice, or
information relating to the target identified in a notice issued under section 168 (preliminary notices) to the recipient of the notice.
A person to whom an authorised officer of Revenue and Customs discloses information under this section—
may use it only for the purpose for which it was disclosed, and
may not further disclose it without the consent of HMRC (which may be general or specific).
Where a person contravenes subsection (2)(b) by disclosing information relating to a person whose identity— section 19 of CRCA 2005 (offence of wrongful disclosure) applies in relation to the disclosure as it applies in relation to a disclosure in contravention of section 20(9) of that Act.
is specified in the disclosure, or
can be deduced from it,
Nothing in this section limits the circumstances in which information may be disclosed under section 18(2) of CRCA 2005 or under any other enactment or rule of law.
A recipient of a promoter action notice may appeal to the tribunal against a decision to issue the notice on the grounds that—
the recipient is not providing the goods or services specified in the notice to the target identified in the notice;
the goods or services are not being used wholly or partly in connection with the arrangements referred to in section 167(1).
Notice of an appeal must—
state the ground of appeal, and
be given in writing to HMRC before the end of the period of 30 days beginning with the day on which the promoter action notice was issued.
The provisions of Part 5 of TMA 1970 relating to appeals have effect in relation to appeals under this section as they have effect in relation to an appeal against an assessment to income tax.
In this section, the “tribunal” means the First-tier Tribunal or, where determined by or under the Tribunal Procedure Rules, the Upper Tribunal.
A recipient of a promoter action notice is liable to a penalty if the recipient—
fails to comply with the notice, and
does so without reasonable excuse.
The maximum penalty under this section is £1,000 for each day on which the recipient failed, without reasonable excuse, to comply with the notice.
Before imposing a penalty under this section, an authorised officer of Revenue and Customs must—
notify the recipient of the fact that the authorised officer considers subsection (1) to apply, and
allow the recipient 30 days from the date of notification to make representations to HMRC.
In imposing a penalty under this section, an authorised officer of Revenue and Customs must have regard to—
the likely cost to the recipient of complying with the notice;
any benefit for the recipient of not complying with the notice;
whether and to what extent the recipient cooperated with HMRC or made efforts to comply with the notice.
A penalty imposed under this section is to be treated as a penalty determined under section 100(1) of TMA 1970.
A penalty imposed under this section is to carry interest in accordance with section 101 of FA 2009.
In paragraph 5(6) of Schedule 13 to FA 2020 (joint and several liability of company directors etc) after paragraph (g) (inserted by section 162(8)) insert—
Subsection (2) applies if—
a penalty under section 171 has been imposed on a recipient of a promoter action notice, and
notice of appeal against the penalty can no longer be given or, if notice has been given, the appeal has been determined or withdrawn.
An authorised officer of Revenue and Customs may publish—
the recipient’s name (including any trading name, previous name or pseudonym);
any address used by the recipient;
any other information that the authorised officer considers appropriate for the purposes of identifying the recipient or their business;
details of the recipient’s failure to comply;
details of the penalty imposed on the recipient under section 171.
Before publishing information under this section, an authorised officer of Revenue and Customs must—
notify the recipient of their intention to publish, including the information that they intend to publish, and—
allow the recipient 30 days from the date of notification to make representations to HMRC.
Information published under this section must be withdrawn no later than 12 months after its publication.
Nothing in this section limits the circumstances in which information may be disclosed under section 18(2) of CRCA 2005 or under any other enactment or rule of law.
This section applies if an authorised officer of Revenue and Customs considers that a recipient of a promoter action notice—
failed to comply with the notice, and
did so without reasonable excuse.
An authorised officer of Revenue and Customs may, for the permitted purpose, disclose the following information to a regulator, representative body or trade body of the recipient—
the recipient’s name (including any trading name, previous name or pseudonym);
any address used by the recipient;
any other information that the authorised officer considers appropriate for the purposes of identifying the recipient or their business;
details of the recipient’s failure to comply;
details of any penalty imposed on the recipient under section 171;
any other information that the authorised officer considers appropriate for the permitted purpose.
In this section, the “permitted purpose” means assisting the person to whom the information is disclosed in relation to—
a current or future investigation into the failure referred to in subsection (1), or
any other action taken, or to be taken, by the person in relation to that failure.
Before disclosing information under this section, an authorised officer of Revenue and Customs must—
notify the recipient of their intention to disclose it, including—
their reasons for considering that subsection (1) applies, and
the information that they intend to disclose, and
allow the recipient 30 days from the date of notification to—
comply with any requirements specified in the promoter action notice, or
make representations to HMRC.
A person to whom an authorised officer of Revenue and Customs discloses information under this section—
may use it only for the purpose for which it was disclosed, and
may not further disclose it without the consent of HMRC (which may be general or specific).
Where a person contravenes subsection (5)(b) by disclosing information relating to a person whose identity— section 19 of CRCA 2005 (offence of wrongful disclosure) applies in relation to the disclosure as it applies in relation to a disclosure in contravention of section 20(9) of that Act.
is specified in the disclosure, or
can be deduced from it,
Nothing in this section limits the circumstances in which information may be disclosed under section 18(2) of CRCA 2005 or under any other enactment or rule of law.
For the purposes of sections 171 and 173, a failure of a person to do anything within a limited period of time is to be disregarded if the person did the thing within such further period of time, if any, as an officer of Revenue and Customs allowed.
For the purposes of sections 171 and 173—
an insufficiency of funds is not a reasonable excuse unless attributable to events outside the person’s control,
if the person relies on any other person to do anything, that is not a reasonable excuse unless the first person took reasonable care to avoid the failure,
if the person had a reasonable excuse for the failure but the excuse has ceased, the person is to be treated as having continued to have the excuse if the failure is remedied without unreasonable delay after the excuse ceased, and
reliance on legal advice is to be taken automatically not to constitute a reasonable excuse if either—
the advice was not based on a full and accurate description of the facts, or
the conclusions in the advice that the person relied upon were unreasonable.
In this Chapter—
In this Chapter, a “connected person” means a person who an officer of Revenue and Customs reasonably suspects is or has been—
contravening an anti-avoidance enactment,
connected to a person who is or has been contravening an anti-avoidance enactment, or
connected to arrangements by reference to which a person is or has been contravening an anti-avoidance enactment.
For the purposes of subsection (1)(b), two persons (“A” and “B”) are connected if—
A is a director, manager, secretary or other officer or employee of B,
A is a member of, or partner in, B,
A is a trustee, settlor, beneficiary or administrator of a trust in respect of which B is a trustee, settlor, beneficiary or administrator, or
A is accustomed to acting in accordance with B’s directions or instructions.
For the purposes of subsection (1)(c), a person is connected to arrangements if the person is—
to any extent involved in making the arrangements available for implementation by another person,
to any extent involved in the organisation or management of the arrangements, or
directly or indirectly benefiting from the arrangements.
In this Chapter, an “anti-avoidance enactment” means—
Part 7 of FA 2004 (disclosure of tax avoidance schemes);
Part 5 of FA 2014 (promoters of tax avoidance schemes);
Schedule 16 to F(No.2)A 2017 (penalties for enablers of defeated tax avoidance);
Schedule 17 to F(No.2)A 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes);
Chapter 1 of this Part (prohibition on promotion of certain tax avoidance arrangements).
And a reference to taking action under an anti-avoidance enactment includes a reference to taking action under—
sections 8ZF and 8ZG of the Company Directors Disqualification Act 1986 (disqualification for promoting tax avoidance);
Schedule 13 to FA 2020 (joint and several liability);
section 85 of FA 2022 (winding up petitions by an officer of HMRC);
section 86 of FA 2022 (publication by HMRC of information about tax avoidance schemes);
sections 87, 88 and 89 of FA 2022 (freezing orders etc);
Schedule 13 to FA 2022 (penalties for facilitating avoidance schemes involving non-resident promoters);
Chapter 2 of this Part (promoter action notices).
An officer of Revenue and Customs may by notice require a connected person to provide information that is, in the opinion of the officer, reasonably required for the purposes of—
monitoring the compliance of the connected person with an anti-avoidance enactment, or
HMRC taking, or considering whether HMRC could take, action against the connected person under an anti-avoidance enactment.
An officer of Revenue and Customs may seek the approval of the tribunal before issuing a notice under this section.
An officer of Revenue and Customs may by notice require a person to provide information that is, in the opinion of the officer, reasonably required for the purposes of—
monitoring the compliance of a connected person with an anti-avoidance enactment, or
HMRC taking, or considering whether HMRC could take, action against a connected person under an anti-avoidance enactment.
A notice under this section must identify the connected person to whom it relates.
Before issuing a notice under this section, an officer of Revenue and Customs must—
notify the intended recipient of—
the officer’s intention to issue the notice, and
the information that would be required under the notice, and
allow the intended recipient reasonable opportunity to make representations to HMRC.
An officer of Revenue and Customs may not issue a notice under this section without either—
the agreement of the connected person identified in the notice, or
the approval of the tribunal.
The tribunal may not approve a notice unless it has been given a summary of any representations made under subsection (3)(b).
After issuing a notice under this section, an officer of Revenue and Customs must provide to the connected person identified in the notice—
a copy of the notice, and
a summary of the officer’s reasons for requiring the information.
Subsections (2), (3) and (6) do not apply to the extent the tribunal is satisfied that taking the steps in those subsections might prejudice the investigation of tax avoidance.
An officer of Revenue and Customs may by notice require a person to provide information that is, in the opinion of the officer, reasonably required for the purposes of—
monitoring the compliance of an unidentified connected person with an anti-avoidance enactment, or
HMRC taking, or considering whether HMRC could take, action against an unidentified connected person under an anti-avoidance enactment.
In this section, “unidentified connected person” means—
a connected person whose identity is not known to the officer, or
a class of persons whose individual identities are not known to the officer but, of which, one or more members is a connected person.
A notice under this section may only require information that is not readily available from another source.
An officer of Revenue and Customs may not issue a notice under this section without the approval of the tribunal.
In subsection (1)(b), the reference to taking action against an unidentified connected person includes a reference to taking action against one or more members of a class referred to in subsection (2)(b).
An officer of Revenue and Customs may by notice require a person to provide identifying information that is, in the opinion of the officer, reasonably required for the purpose of identifying an unidentified connected person.
An officer of Revenue and Customs may not issue a notice under subsection (1) unless the officer has reason to believe that—
the intended recipient of the notice could identify the unidentified connected person by reference to information provided by the officer, and
the recipient obtained the identifying information in the course of a business.
A notice under this section may only require information that is not readily available from another source.
In this section—
An officer of Revenue and Customs who is not an authorised officer may not issue a notice under this section without the approval of either—
the tribunal, or
an authorised officer of Revenue and Customs.
An authorised officer of Revenue and Customs may seek the approval of the tribunal before issuing a notice under this section.
An officer of Revenue and Customs may by notice require a financial institution to provide information that is, in the opinion of the officer, reasonably required for the purposes of—
monitoring the compliance of a connected person with an anti-avoidance enactment, or
HMRC taking, or considering whether HMRC could take, action against a connected person under an anti-avoidance enactment.
A notice under this section must identify the connected person to whom it relates.
An officer of Revenue and Customs may not issue a notice under this section without the approval of the tribunal.
After issuing a notice under this section, an officer of Revenue and Customs must provide to the connected person identified in the notice—
a copy of the notice, and
a summary of the officer’s reasons for requiring the information.
Subsection (4) does not apply to the extent the tribunal is satisfied that taking the steps in that subsection might prejudice the investigation of tax avoidance.
In this section—
An information notice must specify (or, in the case of paragraphs (a) and (b), describe)—
the information that the recipient is required to provide;
the form in which, and the means by which, the information is to be provided;
a reasonable period within which the information is to be provided;
the provision under which the notice is issued;
whether the notice is issued with the approval of the tribunal.
An information notice issued under sections 180 to 183 may only require information that would not, in the reasonable opinion of an officer of Revenue and Customs, be unduly onerous for the recipient to provide.
An information notice may not require a person to produce a document if the whole of the document originates more than 6 years before the date of the notice without the agreement of an authorised officer of Revenue and Customs.
An information notice may be issued to a person outside the United Kingdom.
An information notice may require the recipient not to disclose the existence or contents of the notice to—
the connected person to whom the notice relates,
in the case of a notice under section 181, members of the class of persons to which the notice relates,
any person who might reasonably be expected to disclose the existence or contents of the notice to the connected person or members of the class, or
any other person.
A requirement under subsection (1)(d) may not prohibit disclosure for, or in connection with, the purpose of—
complying with the notice, or
seeking legal advice.
A requirement imposed under subsection (1) has effect until the end of the period of 12 months beginning with the day on which the notice is issued, unless before the end of that period—
the requirement is withdrawn in accordance with subsection (4), or
the period is extended in accordance with subsection (5).
An officer of Revenue and Customs may withdraw the requirement by notifying the recipient in writing.
An officer of Revenue and Customs may by notice to the recipient—
extend the period during which a requirement imposed under subsection (1) has effect by a period of 12 months beginning with the day after the last day of the previous period of 12 months, and
do so on one or more occasions.
An officer of Revenue and Customs may not issue a notice under subsection (5) unless—
the officer considers that there are reasonable grounds for believing that failure to extend the period might prejudice the investigation of tax avoidance, and
where the officer is not an authorised officer of Revenue and Customs, an authorised officer agrees with the officer’s—
decision to extend the period, and
assessment under paragraph (a).
An information notice does not require a person to provide information that is not in the possession or power of that person.
An information notice does not require a person to provide—
information that relates to the conduct of a pending tax appeal or appeal against a decision under an anti-avoidance enactment;
personal records (as defined in section 12 of the Police and Criminal Evidence Act 1984) or information contained in such records, except that a notice may require a person to produce a redacted version of a document omitting any information that would otherwise make it personal records;
journalistic material (as defined in section 13 of that Act) or information contained in such material;
information in respect of a which a claim to legal professional privilege or, (in Scotland) to confidentiality of communications as between a client and professional legal advisor, could be maintained by the person in legal proceedings.
An information notice does not require a person who has been appointed auditor for the purposes of an enactment to provide information held or created in connection with the performance of the person’s functions under the enactment, other than information that the recipient of the notice has assisted any client in preparing for, or delivering to, HMRC.
Subsection (3) does not apply in relation to—
a notice under section 182 (identification), or
identifying information (within the meaning given in section 182) required by a notice under section 181 in respect of—
the connected person to whom the notice relates, or
a person who has acted on behalf of the connected person.
The Commissioners may by regulations make provision for the resolution by the tribunal of disputes as to whether any information falls within subsection (2)(d) (privilege).
Regulations under subsection (5) are to be made by statutory instrument and a statutory instrument containing regulations under subsection (5) is subject to annulment in pursuance of a resolution of the House of Commons.
An application to the tribunal for approval of a notice, or disapplication of requirements, under this Chapter may be made without notice.
An officer of Revenue and Customs (other than an authorised officer) may not seek the approval of, or disapplication of requirements by, the tribunal without the agreement of an authorised officer of Revenue and Customs.
The tribunal may not approve the issue of a notice under sections 179 to 183 unless it is satisfied that the requirements of the relevant section are met.
A decision of the tribunal is final (despite sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007).
An officer of Revenue and Customs may withdraw an information notice by notifying the recipient in writing.
A recipient of an information notice commits an offence if the recipient—
fails to comply with the notice, or
in purporting to comply with the notice, carelessly or deliberately provides inaccurate information.
It is a defence for a person charged with an offence under subsection (1)(a) to show that they had a reasonable excuse.
In this section, a reference to carelessness is a reference to a failure to take reasonable care.
This section does not apply in respect of a notice under section 183 (financial institutions).
A recipient of an information notice commits an offence if the recipient conceals, destroys or otherwise disposes of information that is required to be provided under the notice.
It is a defence for a person charged with an offence under subsection (1) to show that they concealed, destroyed or otherwise disposed of the information only after the information had been provided in accordance with the notice.
Subsection (2) does not apply where an officer of Revenue and Customs had notified the person in writing that the information must continue to be available (and had not withdrawn that notification).
A person commits an offence if—
an officer of Revenue and Customs has notified the person under section 180(3) that—
the officer intends to issue an information notice to the person, and
certain information would be required under the notice, and
the person conceals, destroys or otherwise disposes of the information.
It is a defence for a person charged with an offence under subsection (4) to show that they concealed, destroyed or otherwise disposed of the information only—
after the end of the period of six months beginning with the day on which they were last notified under section 180(3) in respect of the information, or
after an information notice has been issued to the person in respect of the information.
In this section, a reference to concealing, destroying or otherwise disposing of information includes a reference to arranging for the concealment, destruction or disposal of information.
This section does not apply in respect of a notice under section 183 (financial institutions).
If an offence under section 189 or 190 is committed by a body corporate or a partnership and— the responsible person commits the offence (as well as the body or partnership).
is committed with the consent or connivance of a responsible person, or
is attributable to the neglect of a responsible person,
A “responsible person” means—
in relation to a body corporate other than one whose affairs are managed by its members—
a director, manager, secretary or other similar officer of the body, or a person purporting to act in such a capacity, or
a shadow director within the meaning given in section 251 of the Companies Act 2006;
in relation to a limited liability partnership or other body corporate whose affairs are managed by its members—
a member exercising management functions, or purporting to do so, or
in the case of a limited liability partnership, a shadow member;
in relation to a partnership, a partner or a person purporting to act in that capacity.
In this section, a “shadow member” means a person in accordance with whose directions or instructions the members of the limited liability partnership are accustomed to act, save that a person is not a shadow member by reason only of the fact that the members act on advice given by that person in a professional capacity.
Subsection (2) applies where a body corporate or partnership that is the recipient of an information notice—
fails to comply with the notice, or
in purporting to comply with the notice, carelessly or deliberately provides inaccurate information.
If the recipient’s failure or careless or deliberate provision of inaccurate information— the responsible person commits an offence.
occurred with the consent or connivance of a responsible person, or
is attributable to the neglect of a responsible person,
It is a defence for a person charged with an offence under subsection (2) to show that they or the recipient had a reasonable excuse.
In this section—
a reference to carelessness is a reference to a failure to take reasonable care, and
“responsible person” has the same meaning as in section 191.
This section does not apply in respect of a notice under section 183 (financial institutions).
A person who commits an offence under section 189, 190 or 192 is liable—
on summary conviction, to—
in England and Wales, a fine, or
in Scotland or Northern Ireland, a fine not exceeding the statutory maximum, or
on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or both.
A recipient of an information notice is liable to a penalty if the recipient—
fails to comply with the notice, and
does so without reasonable excuse.
The penalty under subsection (1) is—
in relation to a notice under section 183 (financial institutions), £300;
otherwise, £5,000.
If a failure referred to in subsection (1) continues after the day on which a penalty is imposed in respect of it, the recipient is liable to a further penalty for each day on which the failure continues.
The penalty under subsection (3) is—
in relation to a notice under section 183 (financial institutions), an amount not exceeding £60;
otherwise, an amount not exceeding £1,000.
Before imposing a penalty under this section, an officer of Revenue and Customs must—
notify the recipient of the fact that the officer considers subsection (1) or (3) to apply, and
allow the recipient a period of 30 days beginning with the date of notification to make representations to HMRC.
This section does not apply in relation to a failure to comply with a requirement imposed under section 185 (restriction on disclosure of notices).
A recipient of an information notice is liable to a penalty if the recipient—
is required to provide information under the notice issued, and
conceals, destroys or otherwise disposes of the information—
before the information has been provided in accordance with the notice, or
in circumstances where an officer of Revenue and Customs has notified the person in writing that the information must continue to be available (and has not withdrawn that notification).
A person is liable to a penalty if—
an officer of Revenue and Customs has notified the person under section 180(3) that—
the officer intends to issue an information notice to the person, and
certain information would be required under the notice, and
the person conceals, destroys or otherwise disposes of the information.
Subsection (2) does not apply if the person concealed, destroyed or otherwise disposed of the information only—
after the end of the period of 6 months beginning with the day on which they were last notified under section 180(3) in respect of the information, or
after an information notice has been issued to the person in respect of the information.
The penalty under subsection (1) or (2) is—
in relation to a notice under section 183 (financial institutions), £300, or
otherwise, £20,000.
In this section, a reference to concealing, destroying or otherwise disposing of information includes a reference to arranging for the concealment, destruction or disposal of information.
A recipient of an information notice is liable to a penalty if the recipient—
in purporting to comply with the notice, carelessly or deliberately provides inaccurate information, or
after purporting to comply with the notice—
discovers that, in doing so, they provided inaccurate information, and
does not take reasonable steps to notify HMRC of that fact.
The maximum penalty under subsection (1) is—
in relation to a notice under section 183 (financial institutions), £3,000 for each inaccuracy, or
otherwise, £20,000 for each inaccuracy.
Before imposing a penalty under this section, an officer of Revenue and Customs must—
notify the recipient of the fact that the officer considers subsection (1) to apply, and
allow the recipient a period of 30 days beginning with the date of notification to make representations to HMRC.
In this section, a reference to carelessness is a reference to a failure to take reasonable care.
A recipient of an information notice is liable to a penalty if the recipient—
fails to comply with a requirement imposed under section 185 (restriction on disclosure of notices), and
does so without reasonable excuse.
The penalty under subsection (1) is—
in relation to a notice under section 183 (financial institutions), £1,000, or
otherwise, £10,000.
Subsection (3) applies if—
a penalty has been imposed on a person under section 194(1) for failure to comply with a notice,
the person, without reasonable excuse, continues to fail to comply with the notice,
an officer of Revenue and Customs has reason to believe that—
the person received money or money’s worth in connection with the contravening arrangements to which the notice relates, and
the continuing failure is significant, and
the Upper Tribunal decides that it is appropriate for a penalty to be imposed under this section.
For the purposes of subsection (1)(c)(ii), a continuing failure is significant if—
it continues beyond the end of the period of six months beginning with the day on which the penalty referred to in subsection (1)(a) was imposed, or
as a result of the continuing failure, it is or is likely to be significantly more difficult for HMRC to—
monitor the compliance of a connected person with an anti-avoidance enactment, or
take, or consider whether HMRC could take, action against a connected person under an anti-avoidance enactment.
The person is liable to a penalty equal to the amount of money or money’s worth received, or likely to have been received, by the person in connection with the contravening arrangements to which the notice relates.
The amount of a penalty to which a person is liable under subsection (3) must be determined by the Upper Tribunal (with such determination being treated as assessment).
An application to the Tribunal for the purposes of subsection (1)(d) or (4) may be made by an officer of Revenue and Customs and must be made before the end of the period of 12 months beginning with—
in the case of a penalty relating to a notice against which the recipient may appeal under section 204, the latest of—
the day on which the person became liable to a penalty under section 194(1),
the last day of the period in which notice of appeal against the notice could have been given, and
if notice of such an appeal has been given, the day on which the appeal is determined or withdrawn, or
in any other case, the day on which the person became liable to a penalty under section 194(1).
An officer of Revenue and Customs who makes an application for the purposes of subsection (1)(d) or (4) must notify the person concerned.
For the purposes of this section, a reference to contravening arrangements to which a notice relates is a reference to arrangements by reference to which the person to whom the notice relates is considered to be a connected person under section 177(1) (including, where the person is a connected person under section 177(1)(b), arrangements by reference to which the other person is considered to be a connected person).
This section does not apply in relation to a notice under section 183 (financial institutions).
An officer of Revenue and Customs may apply to the tribunal for a determination that an increased penalty should be available under section 194(4) in respect of a person’s failure to comply with an information notice if—
a penalty has been imposed under section 194(3) (daily penalties for continuing failure) in respect of the failure,
the failure continues after the end of the period of 30 days beginning with the day on which notification of the penalty under section 194(3) was issued (see paragraph 46 to Schedule 36 to FA 2008), and
the officer has notified the person of their intention to apply to the tribunal under this section.
If the tribunal decides that an increased penalty should be available under section 194(4) in respect of a person’s failure, the tribunal must determine—
the amount of the increased penalty, and
the day from which it is to be applicable.
The increased penalty is available under section 194(4) in respect of the failure—
from the day determined by the tribunal, and
as though the figure in that subsection were replaced with the amount of the increased penalty.
An increased penalty under this section may not exceed—
in relation to a notice under section 183 (financial institutions), £1,000, or
otherwise, £5,000.
In determining the amount of the increased penalty, the tribunal must have regard to—
the likely cost to the person of complying with the notice,
any benefits to the person of not complying with the notice, and
any benefits to anyone else resulting from the person’s non-compliance.
If the tribunal makes a determination under subsection (2), an officer of Revenue and Customs must notify the person to whom it relates of—
the amount of the increased penalty, and
the day from which it is to be applicable.
For the purposes of sections 189 to 199(sanctions), a failure of a person to do anything within a limited period of time is to be disregarded if the person did the thing within such further period of time, if any, as an officer of Revenue and Customs or the tribunal allowed.
For the purposes of sections 189(1)(a) (offence of failing to comply), 192 (criminal liability of responsible persons: no prosecution of recipient), 194 (penalty for failing to comply), 197 (penalty for disclosing) and 198 (penalty based on monies received)—
an insufficiency of funds is not a reasonable excuse unless attributable to events outside the person’s control,
if the person relies on any other person to do anything, that is not a reasonable excuse unless the first person took reasonable care to avoid the failure,
if the person had a reasonable excuse for the failure but the excuse has ceased, the person is to be treated as having continued to have the excuse if the failure is remedied without unreasonable delay after the excuse ceased, and
reliance on legal advice is to be taken automatically not to constitute a reasonable excuse if either—
the advice was not based on a full and accurate description of the facts, or
the conclusions in the advice that the person relied upon were unreasonable.
A person is not liable to a penalty under this Chapter in respect of anything in respect of which the person has been convicted of an offence.
The following paragraphs of Schedule 36 to FA 2008 apply as set out below.
Paragraph 46 (assessment of penalty) applies to—
a penalty under sections 194 (failure to comply) and 195 (concealing information) as it applies to a penalty under paragraphs 39 and 40 of the Schedule;
a penalty under section 196 (inaccurate information) as it applies to a penalty under paragraph 40A of the Schedule.
Paragraph 51B(2) and (3) (assessment of a penalty for disclosure) apply to a penalty under section 197 (disclosure of a notice) as they apply to a penalty under paragraph 51B(1) of the Schedule.
Paragraph 49 (enforcement of penalty) applies to a penalty under sections 194 to 197 as it applies to a penalty under paragraphs 39, 40 and 40A of the Schedule and, in the case of a penalty under section 197 (disclosure of a notice), the reference to notification under paragraph 46 of the Schedule is to be read as a reference to notification under paragraph 51B(2)(b) of the Schedule).
Paragraph 51 (enforcement of a tax-related penalty) applies to a penalty under section 198 (penalties based on monies received) as it applies to a penalty under paragraph 50 of the Schedule.
A recipient of a notice under section 179 (connected persons) may appeal against the issue of the notice or any requirement in the notice.
A recipient of a notice under section 180 (third parties) may appeal against the issue of the notice or any requirement in the notice on the grounds that it would be unduly onerous to comply with the notice or requirement.
A recipient of a notice under section 182 (identification) may appeal against the issue of the notice or any requirement in the notice on the grounds that it would be unduly onerous to comply with the notice or requirement.
Subsections (1) to (3) do not apply in relation to a notice that was issued with tribunal approval.
Paragraph 32 of Schedule 36 to FA 2008 applies to appeals under this section as it applies to appeals under Part 5 of that Schedule (and references to information notices are to be read as references to notices under this Chapter).
A person may appeal against any of the following decisions—
a decision of an officer of Revenue and Customs that a penalty is payable under sections 194 to 197, and
a decision of an officer of Revenue and Customs as to the amount of a penalty under sections 194 to 197.
Paragraph 48 of Schedule 36 to FA 2008 (procedure on appeal against penalty) applies to appeals under this section as it applies to appeals under paragraph 47 of that Schedule (and references to paragraph 47(1)(a) and (b) in paragraph 48 are to be read as references to subsection (1)(a) and (b) of this section).
In this Chapter—
“recipient”, in relation to a notice, means the person to whom the notice is issued;
“Commissioners” means the Commissioners for His Majesty’s Revenue and Customs;
For the purposes of this Chapter—
a reference to providing information includes a reference to producing documents;
a reference to a document is a reference to anything in which information of any description is recorded.
Paragraphs 7(2) to (4), 8, 15 and 16 of Schedule 36 to FA 2008 (provision relating to documents) apply in relation to documents required under this Chapter as they apply in relation to documents required under that Schedule.
The following provisions of TMA 1970 apply for the purposes of this Chapter as they apply for the purposes of the Taxes Acts—
section 108 (responsibility of officers);
section 114 (want of form);
section 115 (delivery and service of documents).
Section 272A of FA 2014 is repealed.
Subsection (1) comes into force on such day as the Treasury may by regulations made by statutory instrument appoint.
Subsection (2) applies where—
HMRC have notified a lawyer that they intend to publish, or are considering publishing, information identifying the lawyer under a provision listed in subsection (5), and
the lawyer—
intends to make representations to the effect that the information should not be published, but
will not be able to substantiate some or all of those representations without disclosing the content of privileged communications.
A lawyer (whether or not the lawyer intending to make the representations) may make a declaration to the effect that—
the representations are true, and
the content of privileged communications would be sufficient (whether alone or with other information) to demonstrate this on the balance of probabilities.
When considering whether the information referred to in subsection (1)(a) may be published, HMRC and, in the context of proceedings, a court or tribunal must treat a declaration made under subsection (2) and provided under a provision listed in subsection (5) as conclusive evidence of the information included in the declaration.
But subsection (3) does not apply if HMRC, or the court or tribunal, is satisfied that the declaration includes any information that is incorrect.
The provisions are—
section 316C of FA 2004 (disclosure of tax avoidance schemes);
paragraph 36 of Schedule 17 to F(No.2)A 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes);
section 86 of FA 2022 (publication of information about tax avoidance schemes).
For the purposes of this section—
references to a lawyer are references to a person in respect of whose communications a claim to legal professional privilege, or (in Scotland) to confidentiality of proceedings as between client and professional legal adviser, could be maintained in legal proceedings, and
a communication is “privileged” if such a claim could be maintained in respect of it.
In this section—
The Commissioners for His Majesty’s Revenue and Customs may by regulations make provision about—
the form of a declaration made under subsection (2),
the information to be included in a declaration,
when and how a declaration is to be provided.
Regulations under this section—
are to be made by statutory instrument, and
may make different provision for different purposes.
A statutory instrument containing regulations made under this section is subject to annulment in pursuance of a resolution of the House of Commons.
A person who makes a declaration under section 209(2) and carelessly or deliberately includes any incorrect information in the declaration is liable to a penalty not exceeding £10,000.
Where— A is liable to a penalty not exceeding £10,000.
a person (“A”) provides a declaration under a provision listed in section 209(5) which is made under section 209(2) by another person,
the declaration includes incorrect information, and
A knew, or could reasonably have been expected to have known, that the information was incorrect,
For the purposes of subsection (1), incorrect information is included in a declaration carelessly if the person who makes the declaration has failed to take reasonable care to verify the information before including it.
Subject to subsection (2), a penalty under section 210 is to be treated as a penalty imposed under the Taxes Acts and, accordingly, is a penalty to be determined and imposed by an authorised officer under section 100(1) of TMA 1970.
A penalty under section 210 is not required to be paid before the penalty becomes final.
For the purposes of subsection (2) and sections 212 and 213 a penalty becomes “final” at the time when the period for any appeal or further appeal relating to the penalty expires or, if later, when any appeal or final appeal relating to the penalty is finally determined.
An authorised officer may publish information about a person where—
the person has incurred a penalty under section 210 in relation to a declaration, and
the penalty has become final.
The information that may be published under this section is—
the person’s name (including any trading name, previous name or pseudonym);
any address used by the person;
any other information that the authorised officer considers appropriate for the purposes of identifying the person or their business;
details of the arrangements to which the declaration relates including the nature of the person’s involvement in those arrangements;
details of the penalty imposed on the person under section 210.
The information may be published in any way that the authorised officer considers appropriate.
Before publishing information under this section, the authorised officer must—
notify the person that they are considering doing so,
give the person 30 days from that notification in which to make representations about whether it should be published, and
have regard to any representations received.
In this section—
“arrangements” means—
Publication of any information under section 212 on the basis of a penalty incurred by a person may not take place after the end of the period of 12 months beginning with the date on which the penalty became final.
Subsection (1) is not to be taken to prevent the re-publication, or continued publication, after the end of the period referred to in that subsection, of information published under section 212 before the end of the period.
In section 316C of FA 2004 (disclosure of tax avoidance schemes)—
omit subsection (4A);
in subsection (6)(b)—
the words from “make representations” to the end become sub-paragraph (i);
after that sub-paragraph insert , and.
In paragraph 36 of Schedule 17 to F(No.2)A 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes)—
omit sub-paragraph (4A);
in sub-paragraph (6)(b)—
the words from “make representations” to the end become sub-paragraph (i);
after that sub-paragraph insert , and.
In section 86 of FA 2022 (publication of information about tax avoidance schemes)—
omit subsection (3)(b) (and the “or” before it);
in subsection (5)(b)—
the words from “make representations” to the end become sub-paragraph (i);
after that sub-paragraph insert , and;
in subsection (6), after “representations” insert “and any declaration”.
Subject to subsection (2), sections 209 to 214 have effect from the day on which this Act is passed.
The amendments made by section 214 have effect only in relation to conduct occurring on or after the day on which this Act is passed.
In TMA 1970—
omit section 98C (notifications under Part 7 of FA 2004);
in section 100(2) (determination of penalties by an officer of the Board), omit paragraph (f);
in section 103A (interest on penalties), omit “(other than section 98C)”.
In Part 7 of FA 2004 (disclosure of tax avoidance schemes)—
in section 313(4), for “98C of the Taxes Management Act 1970” substitute “315”;
for section 315 substitute—;
in section 318, in the appropriate places insert—.
In Part 2 of Schedule 17 to F(No.2)A 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes)—
in the cross heading before paragraph 39 omit “(apart from paragraph 26)”;
for paragraphs 39 to 44 substitute—;
omit paragraph 45 and the cross heading before paragraph 45;
in the italic cross heading before paragraph 46, omit “under paragraph 39(1)(b) or 44”;
in paragraph 46(1), for “39(1)(b) or 44” substitute “39 or 40”;
in paragraph 49(2)(a), for “prescribed period mentioned in paragraph 41” substitute “period mentioned in paragraph 39(2)(b)”.
In Part 7 of FA 2004 (disclosure of tax avoidance schemes), in section 316C (publication by HMRC), omit subsections (6A) and (6B).
In Part 1 of Schedule 17 to F(No.2)A 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes), in paragraph 36 (publication by HMRC), omit sub-paragraphs (7) and (8).
In paragraph 5 of Schedule 34 to FA 2014 (promoters of tax avoidance schemes: threshold conditions)—
in sub-paragraph (3)(a), for “the tribunal” substitute “an authorised officer”;
in sub-paragraph (4)(a)—
at the beginning insert “on appeal,”;
for “section 118(2) of TMA 1970” substitute “section 315D(1) of FA 2004”;
For the purposes of this paragraph—
In paragraph 5 of Schedule 13 to FA 2020 (joint and several liability of company directors), for sub-paragraph (6)(a) substitute—.
In section 132A(2) of the Social Security Administration Act 1992 (disclosure of contributions avoidance arrangements)—
in paragraph (a), at the end insert “or to a penalty under that Part”;
in paragraph (b)—
for “section 98C of the Taxes Management Act 1970 (penalties for failure to comply with Part 7 of the Finance Act 2004) and any other” substitute “any”;
for “that section” substitute “Part 7 of the Finance Act 2004”.
In FA 2022—
in section 90(3) (freezing orders: interpretation etc)—
omit paragraph (a);
omit paragraph (d);
in Schedule 13 (penalties for facilitating avoidance schemes involving non-resident promoters), in paragraph 1(4), for paragraph (a) substitute—.
The amendments made by sections 216 and 218 do not have effect in relation to a penalty for which proceedings have been commenced under section 100C TMA or paragraph 45 of Schedule 17 to F(No.2)A 2017 before sections 216 and 218 come into force.
Chapter 3 of Part 3 of FA 2004 (construction industry scheme) is amended as follows.
After section 62 insert—.
In section 66—
after subsection (3) insert—;
in subsection (4)—
for “the Board” substitute “the Commissioners”;
after “subsection (3)” insert “or subsection (3A)”;
in subsection (6)—
the words from “the person must” to the end become paragraph (a);
after that paragraph insert , and;
in subsection (7)—
after “subsection (3)” insert “or subsection (3A)”;
for the words from “the person may” to the end substitute—;
omit subsection (8).
In section 72, in the heading, at the end insert “: false statements and documentation”.
After section 72 insert—
In section 75, at the end insert—.
The Income Tax (Construction Industry Scheme) Regulations 2005 (S.I. 2005/2045) are amended as follows.
After regulation 13 insert—
In regulation 16—
in paragraph (1)—
the words from “a contractor” to the end become paragraph (a);
after that paragraph insert , or;
in paragraph (3), in Table 1, in the first row, for “and 13(2)” substitute “, 13(2) and 13A(2)”.
Subject to subsection (2), the amendments made by sections 220 and 221 have effect from 6 April 2026.
The amendments made by section 220(3)(d)(ii) and 220(3)(e)have effect in relation to a determination under section 66(3) of FA 2004 if the determination is made by reference to behaviour occurring on or after 6 April 2026.
A tax adviser may not interact with HMRC in relation to the tax affairs of a client unless—
the adviser is registered under this Chapter, or
an exception in Schedule 20 (exceptions) applies.
A person interacts with HMRC if the person does or attempts to do any of the following—
contact HMRC by telephone, post or email;
send a message to HMRC through a website or internet portal;
file a return, claim, notice or other document with HMRC (whether electronically or otherwise);
communicate with HMRC in any other way.
Subsection (1) applies even if the tax adviser or the client (or both) are outside the United Kingdom.
Where an individual— the interaction is to be regarded as being carried out by that tax adviser.
works for a tax adviser, and
interacts with HMRC in the course of a business carried on by that tax adviser,
In this Chapter “tax adviser” means—
an organisation that, in the course of a business carried on by it, assists other persons with their tax affairs, or
an individual who, in the course of a business carried on by the individual as a sole trader, assists other persons with their tax affairs.
An organisation or individual assists another person with their tax affairs if the organisation or individual does any of the following—
advises the other person in relation to tax;
acts or purports to act as an agent on behalf of the other person in relation to tax;
provides assistance with any document that is likely to be relied on by HMRC to determine the other person’s tax position.
A person can be a tax adviser even if they are appointed indirectly (for example, at the request of someone other than their client).
In this Chapter “client”, in relation to a tax adviser, means a person who the adviser, in the course of a business carried on by the adviser, assists with their tax affairs.
A tax adviser may apply to HMRC to be registered under this Chapter.
An application must be made in the form and manner specified in a notice published by HMRC.
An application must contain the following—
the name and address of the tax adviser;
if the tax adviser is an organisation, the name of each of the tax adviser’s relevant individuals (see section 226 (meaning of “relevant individual” etc));
a statement—
that the tax adviser meets the registration conditions (see section 227 (registration conditions)), or
explaining why those conditions are not met;
any other information or evidence relating to the tax adviser or the registration conditions that may be specified in a notice published by HMRC.
A notice under subsection (3)(d) may, in particular, specify different types of information or evidence for different descriptions of tax advisers (for example, for tax advisers who are established in, or who otherwise have a connection with, a territory outside the United Kingdom).
For the purposes of this Chapter “relevant individual”, in relation to a tax adviser that is an organisation with fewer than six officers, means—
each individual who works for the tax adviser and who plays a significant role in—
the making of decisions about how the whole or a substantial part of the tax adviser activities of the organisation are to be managed or organised, or
the actual managing or organising of the whole or a substantial part of those activities, and
each officer of the tax adviser who is not within paragraph (a).
For the purposes of this Chapter “relevant individual”, in relation to a tax adviser that is an organisation with six or more officers, means—
each individual who works for the tax adviser and who plays a significant role in—
the making of decisions about how the whole or a substantial part of the tax adviser activities of the organisation are to be managed or organised, or
the actual managing or organising of the whole or a substantial part of those activities, and
if the organisation has fewer than five officers within paragraph (a), each officer of the tax adviser nominated by the adviser to be a relevant individual (see section 227(4) (registration conditions)).
In this Chapter “officer” means—
in relation to a company, a director;
in relation to a body corporate whose affairs are managed by its members, a member who exercises functions of management with respect to it;
in relation to a body corporate not within paragraph (a) or (b), an officer of the body whose functions correspond to those of a director of a company;
in relation to a partnership, a partner;
in relation to any other organisation, a person who exercises functions of management with respect to it.
A reference in this Chapter to the registration conditions is to the following three conditions.
The first registration condition is that the tax adviser and, if the adviser is an organisation, each of the adviser’s relevant individuals—
does not have a relevant amount overdue or a relevant return outstanding,
is not subject to a decision by HMRC to refuse to deal with them,
is not subject to a relevant anti-avoidance measure,
has not, in the previous 12 months, had a relevant anti-avoidance penalty imposed on them,
is not subject to a relevant suspension or a relevant ineligibility order,
is not disqualified under the directors disqualification legislation or subject to a similar disqualification in a territory outside the United Kingdom,
does not have an insolvency practitioner acting in relation to them, and
does not have an unspent conviction for a relevant offence (see section 229 (offences)).
The second registration condition is that the adviser—
is registered with a supervisory authority for the purposes of anti-money laundering supervision, or
meets such conditions about applying to register with a supervisory authority for those purposes as may be specified in a notice published by HMRC.
The third registration condition is that, if the adviser is an organisation within section 226(2)(b) (organisations with six or more officers etc), the adviser has nominated as many officers to be relevant individuals as are necessary to ensure that the adviser has at least five relevant individuals who are officers.
In section 227 and this section, “relevant amount”, other than in relation to a person within subsection (2), means an amount of—
tax payable to HMRC;
national insurance contributions;
devolved tax corresponding to a tax payable to HMRC or to national insurance contributions;
a civil penalty relating to a tax mentioned in paragraph (a) or (c) or to national insurance contributions;
a civil penalty (not within paragraph (d)) relating to an obligation contained in a provision made by or under any enactment relating to tax;
interest on an amount within paragraphs (a) to (e).
A person is within this subsection if, in the previous 12 months, the person—
was not liable to pay an amount within subsection (1)(a) to (f), and
was liable to pay an amount corresponding to an amount within subsection (1)(a) to (f) under the law of a territory outside the United Kingdom.
In relation to a person within subsection (2), “relevant amount” means an amount corresponding to an amount within subsection (1)(a) to (f) that the person is liable to pay—
under the law of the territory mentioned in subsection (2)(b), or
if the person was, during the 12-month period, liable to pay such an amount under the law of more than one territory outside the United Kingdom, under whichever of those territories the person earned the most income in relation to tax adviser activities during the 12-month period.
For the purposes of section 227(2)(a)—
a relevant amount is overdue if the amount has become due and payable but the amount has not been paid;
a relevant return is outstanding if the return is required to have been made or delivered but it has not been made or delivered.
But a relevant amount is not overdue if it is subject to a time to pay agreement that has not been broken.
For the purposes of section 227(2)(c), a person is subject to a “relevant anti-avoidance measure” if—
the person is subject to a stop notice given under section 236A of FA 2014 (power to give stop notices);
the person is subject to a monitoring notice given under section 244 of FA 2014 (monitoring notices: content and issuing);
information about the person has been published under paragraph 46 of Schedule 16 of F(No.2)A 2017 (penalties for enablers of defeated tax avoidance) and the information has not been withdrawn;
information identifying or about the person has been published under section 86(1) of FA 2022 (publication by HMRC of information about tax avoidance schemes) and the information has not been withdrawn.
In section 227 and this section “relevant anti-avoidance penalty” means a penalty under any of the following—
paragraph 2(1) of Schedule 35 to FA 2014 in respect of a failure to comply with section 236B(1) of that Act (stop notices);
paragraph 1 of Schedule 16 to F(No.2)A 2017 (penalties for enablers of defeated tax avoidance);
section 162 (ban on promotion of certain tax arrangements).
For the purposes of section 227(2)(d), if a relevant anti-avoidance penalty is imposed on a person and the penalty is at any time subsequently set aside or otherwise cancelled, the penalty is to be treated from that time as if it was not imposed on the person.
For the purposes of section 227(2)(e), a person is subject to a relevant suspension if the person’s registration under this Chapter is suspended under section 232 (suspension of registration).
In section 227 and this section—
The reference in section 227(2)(h) to a relevant offence is to any of the following offences—
an offence under section 20BB of TMA 1970 (falsification of documents);
an offence under CEMA 1979;
an offence under section 112 (false representations for obtaining benefit) or section 114 (offences relating to contributions) of the Social Security Administration Act 1992;
an offence under VATA 1994;
an offence under section 35 of the Tax Credits Act 2002 (offence of fraud);
an offence under CRCA 2005;
an offence under section 45 or 46 of the Criminal Finances Act 2017 (failure to prevent facilitation of tax evasion offences);
an offence at common law of cheating the public revenue;
an offence under the law of any part of the United Kingdom consisting of being knowingly concerned in, or in taking steps with a view to, the fraudulent evasion of tax;
an offence of aiding, abetting, counselling or procuring the commission of an offence mentioned in paragraphs (a) to (i);
an offence under the law of a territory outside the United Kingdom which would be an offence otherwise referred to in this section if the conduct constituting that offence was carried out in any part of the United Kingdom.
For the purposes of subsection (1)(k), an act punishable under the law of a territory outside the United Kingdom constitutes an offence under that law, however it is described in that law.
Where a tax adviser applies to be registered under this Chapter in accordance with section 225 (application for registration), an officer of Revenue and Customs must—
decide whether to approve the application;
notify the tax adviser of the decision and—
where the application is approved, of the date from which the registration has effect, and
where the application is not approved, of the reasons for the decision.
The officer must approve the application if satisfied that the tax adviser meets the registration conditions.
The officer may otherwise approve the application only if— In this subsection “relevant amount” and “relevant return” have the same meaning as in section 227 (registration conditions).
the tax adviser fails to meet the registration conditions solely by virtue of the adviser, or a relevant individual of the adviser, not meeting the condition in section 227(2)(a) (amount of tax etc overdue), and
having regard to the relevant amount that is overdue or (as the case may be) the circumstances of the outstanding relevant return, the officer considers it appropriate to approve the application.
An officer of Revenue and Customs may cancel the registration of a registered tax adviser if—
the adviser requests the cancellation, or
the tax adviser has been wound up or dissolved or has died.
An officer of Revenue and Customs may by notice require a registered tax adviser to provide such information or evidence as the officer reasonably requires for the purpose of monitoring whether the tax adviser meets the registration conditions.
An authorised officer of Revenue and Customs may, by notice, suspend the registration of a registered tax adviser if the officer is not satisfied that the adviser meets the registration conditions.
An authorised officer of Revenue and Customs may, by notice, suspend the registration of a registered tax adviser for a period of up to 12 months if the officer considers that the adviser has, in the course of interacting with HMRC, behaved in a manner which falls below the standards that might reasonably be expected of a tax adviser in their interactions with HMRC.
In considering whether a tax adviser has behaved as described in subsection (2), the officer may in particular have regard to any provisions of a relevant HMRC standard that relate to interactions between tax advisers and HMRC. In this subsection “relevant HMRC standard” means a standard published by HMRC that is specified for the purposes of this section in a notice published by HMRC.
Before suspending the registration of a registered tax adviser under this section, the officer must—
notify the adviser of the fact that the officer considers subsection (1) or (2) to apply, and
allow the adviser a period of— beginning with the date of the notification, to take action to meet the conditions or to make representations to HMRC.
30 days, or
if subsection (5) applies, 60 days,
This subsection applies where—
the tax adviser is an individual and the officer considers subsection (1) to apply solely by virtue of the adviser not meeting the condition in section 227(2)(a) (amount of tax etc overdue), or
the tax adviser is an organisation and the officer considers subsection (1) to apply solely by virtue of a relevant individual of the adviser not meeting the condition in section 227(2)(a) (amount of tax etc overdue).
A notice suspending the registration of a registered tax adviser under this section must state the following—
the date on which it is issued;
the date on which the suspension has effect, which must not be before the end of the period of 30 days beginning with the date mentioned in paragraph (a);
in a case within subsection (2), the period of the suspension;
details of—
in a case within subsection (1), which of the registration conditions the officer is not satisfied that the adviser meets;
in a case within subsection (2), the behaviour mentioned in that subsection;
the period within which an appeal against the decision to suspend the registration of the adviser may be made.
An authorised officer of Revenue and Customs must, by notice, lift a suspension imposed under subsection (1) if satisfied that the adviser meets the registration conditions.
Where a tax adviser contravenes section 223(1) (prohibited interaction with HMRC), an authorised officer of Revenue and Customs may give a notice (a “compliance notice”) to the adviser. For provision about the effect of a compliance notice, see sections 234(1)(a) and 235(1)(a) (financial penalties for prohibited interaction with HMRC).
A compliance notice must state the following—
the date on which it is issued;
the contravention to which the notice relates;
the period within which an appeal against the notice may be made.
An authorised officer of Revenue and Customs may withdraw a compliance notice at any time; and if they do so, they must notify the tax adviser.
A compliance notice is to be treated as withdrawn if subsection (5) or (6) applies.
This subsection applies if—
the tax adviser was not registered under this Chapter at the time of the contravention mentioned in subsection (1), and
the tax adviser subsequently registers under this Chapter.
This subsection applies if—
the tax adviser’s registration was suspended under section 232 (suspension of registration) at the time of the contravention mentioned in subsection (1), and
the suspension is subsequently lifted under section 232(7) or expires.
Before giving a compliance notice under this section, the authorised officer must—
notify the adviser of the fact that the officer considers subsection (1) to apply, and
allow the adviser a period of 30 days, beginning with the date of the notification, to make representations to HMRC.
This section applies where—
a tax adviser has been given a compliance notice under section 233 that has not been withdrawn,
the tax adviser subsequently contravenes section 223(1) (prohibited interaction with HMRC), and
if the tax adviser is an organisation, an authorised officer of Revenue and Customs does not consider that the contravention is attributable to a relevant individual of the tax adviser (see section 235 (liability of relevant individuals)).
The tax adviser is liable in respect of the contravention to a penalty of—
£5,000, or
if subsection (3) or (4) applies, £10,000.
This subsection applies if—
in the period of two years ending with the date of the contravention, the tax adviser has been assessed to a penalty under this section or section 235 on four or more occasions, and
subsection (4) does not apply.
This subsection applies if the contravention takes place at a time when the tax adviser is subject to—
a temporary ineligibility order issued under this Chapter, or
a permanent ineligibility order issued under this Chapter.
For the purposes of subsection (3)(a), if a tax adviser is assessed to a penalty under this section or section 235 and the penalty is, at any time, subsequently set aside or otherwise cancelled, the penalty is to be treated from that time as if it was not assessed on the adviser.
This section applies where—
a tax adviser that is an organisation has been given a compliance notice under section 233 that has not been withdrawn,
the tax adviser subsequently contravenes section 223(1) (prohibited interaction with HMRC), and
an authorised officer of Revenue and Customs considers that the contravention is attributable to a relevant individual of the tax adviser.
The individual is liable in respect of the contravention to a penalty of—
£5,000, or
if subsection (3) or (4) applies, £10,000.
This subsection applies if—
in the period of two years ending with the date of the contravention, the relevant individual has been assessed to a penalty under this section or section 234 on four or more occasions, and
subsection (4) does not apply.
This subsection applies if the contravention takes place at a time when the relevant individual is subject to—
a temporary ineligibility order issued under this Chapter, or
a permanent ineligibility order issued under this Chapter.
For the purposes of subsection (3)(a), if a relevant individual is assessed to a penalty under this section or section 234 and the penalty is, at any time, subsequently set aside or otherwise cancelled, the penalty is to be treated from that time as if it was not assessed on the individual.
In this section references to a relevant individual of a tax adviser include a former relevant individual of the tax adviser.
Where an authorised officer of Revenue and Customs assesses a tax adviser to a penalty under section 234(2)(b) (financial penalties for prohibited interaction with HMRC) in a case where section 234(3) applies (repeated contravention), the officer must issue a temporary ineligibility order to the tax adviser. For provision about the effect of a temporary ineligibility order, see in particular section 227(2)(e) (registration conditions) and sections 234(4) and 235(4) (financial penalties for prohibited interaction with HMRC).
A temporary ineligibility order issued under subsection (1) has effect for a period of 12 months from the end of the period of 30 days beginning with the date on which the order was issued to the person.
Where an authorised officer of Revenue and Customs assesses a tax adviser to a penalty under section 234(2)(b) (financial penalties for prohibited interaction with HMRC) in a case where section 234(4)(a) applies (contravention while subject to temporary ineligibility order), the officer must— For provision about the effect of a permanent ineligibility order, see in particular section 227(2)(e) (registration conditions) and sections 234(4) and 235(4) (financial penalties for prohibited interaction with HMRC).
issue a permanent ineligibility order to the tax adviser, and
in a case where the adviser’s registration is suspended under section 232, cancel the adviser’s registration.
A permanent ineligibility order issued under subsection (3) has effect indefinitely from the end of the period of 30 days beginning with the date on which the order was issued to the person.
Before issuing an order to a person under subsection (1) or (3), the authorised officer must—
notify the person of the fact that the officer considers subsection (1) or (3) (as the case may be) to apply, and
allow the person a period of 30 days, beginning with the date of the notification, to make representations to HMRC.
An order under subsection (1) or (3) must state—
the date on which it is issued, and
the period within which an appeal against the decision to issue the order may be made.
Where an authorised officer of Revenue and Customs assesses a tax adviser to a penalty under section 234(2)(b)(financial penalties for prohibited interaction with HMRC), the officer may—
in a case where section 234(3) applies (repeated contravention), issue a temporary ineligibility order to any relevant individual of the tax adviser;
in a case where section 234(4) applies (contravention while subject to an ineligibility order), issue a permanent ineligibility order to any relevant individual of the tax adviser.
Where an authorised officer of Revenue and Customs assesses a relevant individual of a tax adviser to a penalty under section 235(2)(b) (liability of relevant individuals) in a case where section 235(3) applies (repeated contravention), the officer must issue a temporary ineligibility order to the individual.
Where an authorised officer of Revenue and Customs assesses a relevant individual of a tax adviser to a penalty under section 235(2)(b) (liability of relevant individuals) in a case where section 235(4)(a) applies (contravention while subject to temporary ineligibility order), the officer must issue a permanent ineligibility order to the individual.
For provision about the effect of a temporary or a permanent ineligibility order, see in particular section 227(2)(e) (registration conditions) and sections 234(4) and 235(4) (financial penalties for prohibited interaction with HMRC).
A temporary ineligibility order issued under subsection (1)(a) or (2) has effect for a period of 12 months from the end of the period of 30 days beginning with the date on which the order was issued to the person.
A permanent ineligibility order issued under subsection (1)(b) or (3) has effect indefinitely from the end of the period of 30 days beginning with the date on which the order was issued to the person.
Before issuing an order to a relevant individual under subsection (1), (2) or (3), the authorised officer must—
notify the relevant individual and the tax adviser of the fact that the officer considers subsection (1), (2) or (3) (as the case may be) to apply, and
allow the relevant individual and the tax adviser a period of 30 days, beginning with the date of the notification, to make representations to HMRC.
An order under subsection (1), (2) or (3) must state—
the date on which it is issued, and
the period within which an appeal against the decision to issue the order may be made.
Where an authorised officer of Revenue and Customs issues an order to a relevant individual under this section, the officer must also notify the tax adviser in question.
In this section references to a relevant individual of a tax adviser include a former relevant individual of the tax adviser.