Pandemic Influenza Preparedness Framework for the sharing of influenza viruses and access to vaccines and other benefits: report by the Director-General
Income tax is charged for the tax year 2008-09.
For that tax year—
the basic rate is 20%, and
the higher rate is 40%.
For the tax year 2008-09 the amount specified in— (personal allowance for those aged under 65) is replaced with “ £6,035 ”.
section 35 of ITA 2007, ...
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accordingly— (indexation) do not apply for the tax year 2008-09.
section 57 of ITA 2007, so far as relating to the amount specified in section 35 of that Act, ...
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
This section does not require a change to be made in the amounts deductible or repayable under PAYE regulations before 7 September 2008.
For the tax year 2008-09—
the amount specified in section 36(1) of ITA 2007 ... (personal allowance for those aged 65 to 74) is replaced with “ £9,030 ”, and
the amount specified in section 37(1) of ITA 2007 ... (personal allowance for those aged 75 and over) is replaced with “ £9,180 ”.
Accordingly— (indexation) do not apply for the tax year 2008-09.
section 57 of ITA 2007, so far as relating to the amounts specified in sections 36(1) and 37(1) of that Act, ...
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In section 10 of ITA 2007 (income charged at main rates: individuals), for subsection (5) substitute—
The amendment made by subsection (1) has effect for the tax year 2008-09 and subsequent tax years.
But until 7 September 2008 for the purpose of ascertaining the amounts deductible or repayable under PAYE regulations it may be assumed that the figure specified in section 10(5) of ITA 2007 for the tax year 2008-09 is £36,000.
Section 6 of ITA 2007 (rates at which income tax is charged) is amended as follows.
In subsection (1), omit paragraph (a).
In subsection (2), omit “starting rate,”.
In subsection (3), for paragraph (a) substitute—.
Accordingly, in the heading omit “starting rate,”.
The amendments made by this section have effect for the tax year 2008-09 and subsequent tax years.
Schedule 1 contains provision in connection with—
the abolition of the starting rate and the savings rate, and
the creation of the starting rate for savings.
Corporation tax is charged for the financial year 2009.
For that year the rate of corporation tax is—
28% on profits of companies other than ring fence profits, and
30% on ring fence profits of companies.
In subsection (2) “ring fence profits” has the meaning given by section 276 of CTA 2010.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
For the financial year 2008 the small companies' rate is—
21% on profits of companies other than ring fence profits, and
19% on ring fence profits of companies.
For the financial year 2008 the fraction mentioned in section 13(2) of ICTA is—
7/400ths in relation to profits of companies other than ring fence profits (“the standard fraction”), and
11/400ths in relation to ring fence profits of companies (“the ring fence fraction”).
Subsections (3) to (7) of section 3 of FA 2007 (operation of section 13(2) of ICTA in relation to company profits consisting of both ring fence profits and other profits) apply in relation to profits of a company for an accounting period any part of which falls in the financial year 2008, or any subsequent financial year, as in relation to those for an accounting period any part of which falls in the financial year 2007.
In this section “ring fence profits” has the same meaning as in Chapter 5 of Part 12 of ICTA (see section 502(1) and (1A)).
In TCGA 1992, for section 4 substitute—
Schedule 2 contains further provision for and in connection with the reform of capital gains tax.
The amendment made by subsection (1) has effect for the tax year 2008-09 and subsequent tax years.
Schedule 3 contains provision for and in connection with entrepreneurs' relief.
Schedule 4 contains provisions about the transfer of unused nil-rate band between spouses and civil partners for the purposes of the charge to inheritance tax etc.
ALDA 1979 is amended as follows.
In section 5 (rate of duty on spirits), for “£19.56” substitute “ £21.35 ”.
In section 36(1AA)(a) (standard rate of duty on beer), for “£13.71” substitute “ £14.96 ”.
In section 62(1A) (rates of duty on cider)—
in paragraph (a) (rate of duty per hectolitre in the case of sparkling cider of a strength exceeding 5.5 per cent), for “£172.33” substitute “ £188.10 ”,
in paragraph (b) (rate of duty per hectolitre in the case of cider of a strength exceeding 7.5 per cent which is not sparkling cider), for “£39.73” substitute “ £43.37 ”, and
in paragraph (c) (rate of duty per hectolitre in any other case), for “£26.48” substitute “ £28.90 ”.
For the table in Schedule 1 substitute—.
The amendments made by this section are treated as having come into force on 17 March 2008.
1. Cigarettes An amount equal to 22 per cent of the retail price plus £112.07 per thousand cigarettes 2. Cigars £163.22 per kilogram 3. Hand-rolling tobacco £117.32 per kilogram 4. Other smoking tobacco and chewing tobacco £71.76 per kilogram
The amendment made by subsection (1) is treated as having come into force at 6pm on 12 March 2008.
HODA 1979 is amended as follows.
In section 1 (hydrocarbon oil), omit—
subsections (3A) and (3B),
in subsection (3C), “; and petrol is “leaded petrol” if it is not unleaded petrol”, and
subsections (6) and (7).
In section 6 (hydrocarbon oil: rates of duty), for subsection (1A) substitute—
In section 6AB(5) (duty on bioblend), omit the words from “of the description” to the end.
In section 11(1) (rebate on heavy oil), omit—
in paragraph (b), “which is not ultra low sulphur diesel”, and
paragraph (ba).
In section 13AA(6) (restrictions on use of rebated kerosene), omit “which is not ultra low sulphur diesel or sulphur-free diesel”.
Omit section 13A (rebate on unleaded petrol).
In section 20AAA(4)(a) (mixing of rebated oil), for “section 6(1A)(d)” substitute “ section 6A(1A)(c) ”.
In section 27(1) (interpretation)—
in the definition of “rebate”, omit “13A,”,
omit the definitions of “sulphur-free diesel”, “sulphur-free petrol”, “ultra low sulphur diesel” and “ultra low sulphur petrol”, and
for “and “leaded petrol” have” substitute “ has ”.
In Article 21(7) of the Renewable Transport Fuel Obligations Order 2007 (S.I.2007/3072), for “sulphur-free petrol” substitute “ unleaded petrol ”.
In consequence of this section, omit—
in FA 1987, section 1(2) and (3),
in FA 1997, section 7(5)(a) and (b) and (8)(b),
in FA 2000, section 5(3),
in FA 2001, section 2(1), and
in FA 2004, section 7(2), (5) to (7) and (8)(a).
The amendments made by this section are treated as having come into force on 1 April 2008.
Schedule 5 contains provision about biodiesel and bioblend.
HODA 1979 is amended as follows.
In section 6(1A) (main rates)—
in paragraph (a) (unleaded petrol), for “£0.5035” substitute “ £0.5235 ”,
in paragraph (b) (light oil other than unleaded petrol), for “£0.6007” substitute “ £0.6207 ”, and
in paragraph (c), (heavy oil), for “£0.5035” substitute “ £0.5235 ”.
In section 6AA(3) (rate of duty on biodiesel), for “£0.3035” substitute “ £0.3235 ”.
In section 6AD(3) (rate of duty on bioethanol), for “£0.3035” substitute “ £0.3235 ”.
In section 8(3) (road fuel gas)—
in paragraph (a) (natural road fuel gas), for “£0.1370” substitute “ £0.1660 ”, and
in paragraph (b) (other road fuel gas), for “£0.1649” substitute “ £0.2077 ”.
In section 11(1) (rebate on heavy oil)—
in paragraph (a) (fuel oil), for “£0.0929” substitute “ £0.0966 ”, and
in paragraph (b) (gas oil), for “£0.0969” substitute “ £0.1007 ”.
In section 14(1) (rebate on light oil for use as furnace fuel), for “£0.0929” substitute “ £0.0966 ”.
In section 14A(2) (rebate on certain biodiesel), for “£0.0969” substitute “ £0.1007 ”.
The amendments made by this section come into force on 1 October 2008.
In section 6(1A) of HODA 1979 (main rates)—
after paragraph (a) insert—, and
in paragraph (b), after “petrol” insert “ or aviation gasoline ”.
The amendments made by subsection (1) come into force on 1 November 2008.
Schedule 6 contains—
in Part 1, provision consequential on subsection (1) and provision about fuel used for private pleasure-flying or private pleasure craft, and
in Part 2, provision about certain heavy oil used for heating or as fuel for certain engines.
Schedule 1 to VERA 1994 (annual rates of duty) is amended as follows.
In paragraph 1 (general)—
in sub-paragraph (2) (vehicle not covered elsewhere in Schedule otherwise than with engine cylinder capacity not exceeding 1,549cc), for “£180” substitute “ £185 ”, and
in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc), for “£115” substitute “ £120 ”.
CO2 emissions figure Rate (1) (2) (3) (4) Exceeding Not exceeding Reduced rate Standard rate g/km g/km £ £ 100 120 15 35 120 150 100 120 150 165 125 45 165 185 150 170 185 225 195 210 225 385 400 The table has effect in relation to vehicles first registered before 23 March 2006 as if—
In paragraph 1J (light goods vehicles)—
in sub-paragraph (a) (vehicle which is not lower-emission van), for “£175” substitute “ £180 ”, and
in sub-paragraph (b) (lower-emission van), for “£115” substitute “ £120 ”.
In paragraph 2(1) (motorcycles)—
in paragraph (b) (motorbicycle and engine's cylinder capacity more than 150cc but not more than 400cc), for “£32” substitute “ £33 ”,
in paragraph (c) (motorbicycle and engine's cylinder capacity more than 400cc but not more than 600cc), for “£47” substitute “ £48 ”, and
in paragraph (d) (any other case), for “£64” substitute “ £66 ”.
The amendments made by this section have effect in relation to licences taken out on or after 13 March 2008.
In section 42(1)(a) and (2) of FA 1996 (amount of landfill tax), for “£32” substitute “ £40 ”.
The amendments made by subsection (1) come into force on 1 April 2009 and have effect in relation to disposals made (or treated as made) on or after that date.
Taxable commodity supplied Rate at which levy payable if supply is not a reduced-rate supply Electricity £0.00470 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 £0.00164 per kilowatt hour Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state £0.01050 per kilogram Any other taxable commodity £0.01281 per kilogram
The amendment made by subsection (1) has effect in relation to supplies treated as taking place on or after 1 April 2009.
In section 16(4) of FA 2001 (rate of aggregates levy), for “£1.95” substitute “ £2 ”.
The amendment made by subsection (1) has effect in relation to aggregate subjected to commercial exploitation on or after 1 April 2009.
The Treasury may impose charges by providing for carbon reduction trading scheme allowances to be allocated in return for payment.
The charges may only be imposed by regulations.
The regulations may make any other provision about allocations of allowances which the Treasury consider appropriate, including (in particular)—
provision as to the imposition of fees, and as to the making and forfeiting of deposits, in connection with participation in the allocations,
provision as to the persons by whom allocations are to be conducted,
provision for allocations to be overseen by an independent person appointed by the Treasury,
provision for the imposition and recovery of penalties for failure to comply with the terms of a scheme made under subsection (4),
provision for and in connection with the recovery of payments due in respect of allowances allocated (including provision as to the imposition and recovery of interest and penalties), and
provision conferring rights of appeal against decisions made in allocations, the forfeiting of deposits and the imposition of penalties (including provision specifying the person, court or tribunal to hear and determine appeals).
The Treasury may make schemes about the conduct and terms of allocations (to have effect subject to any regulations under this section); and schemes may in particular include provision about—
who may participate in allocations,
the allowances to be allocated, and
where and when allocations are to take place.
In this section—
“deed of arrangement” means a deed of arrangement registered in accordance with ... Chapter 1 of Part 8 the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)), and
“the 2008 Act” means the Dormant Bank and Building Society Accounts Act 2008;
“voluntary arrangement” means a voluntary arrangement approved in accordance with Part 1 or Part 8 of the Insolvency Act 1986 (c. 45) or Part 2 or Chapter 2 of Part 8 of the Insolvency (Northern Ireland) Order 1989.
“contract settlement” means an agreement made in connection with any person's liability to make a payment to the Commissioners under or by virtue of an enactment.
In section 824(4A)(b) of ICTA (repayment supplements: individuals and others), after “397(1)” insert “or 397A(2)”.
ITTOIA 2005 is amended as follows.
Section 25A of TCGA 1992 (long funding leases of plant and machinery: deemed disposals) is amended as follows. In subsection (4)(a), after “lessor” insert “(“the relevant date”)”. After subsection (4) insert— After subsection (4B) insert— The amendments made by sub-paragraphs (2) and (3) have effect in relation to leases granted on or after 13 December 2007. The amendment made by sub-paragraph (4) has effect in relation to leases granted on or after 12 March 2008.
Chapter 5A of Part 12 of ICTA (special rules for long funding leases of plant or machinery: corporation tax) is amended as follows. After section 502G insert— After section 502GA insert— After section 502GB insert— The amendment made by sub-paragraph (2) has effect where— The amendment made by sub-paragraph (3) has effect where the lease mentioned in section 502GB(1)(b) of ICTA is entered into on or after 13 December 2007. The amendment made by sub-paragraph (4) has effect in relation to arrangements entered into on or after 9 October 2007.
After section 74 insert—
In section 467(5) (persons liable: UK resident trustees), for paragraph (c) substitute—
Chapter 10A of Part 2 of ITTOIA 2005 (corresponding income tax rules) is amended as follows. After section 148F insert— After section 148FA insert— After section 148FB insert— The amendment made by sub-paragraph (2) has effect where— The amendment made by sub-paragraph (3) has effect where the lease mentioned in section 148FB(1)(b) of ITTOIA 2005 is entered into on or after 13 December 2007. The amendment made by sub-paragraph (4) has effect in relation to arrangements entered into on or after 9 October 2007.
In section 469(2) (two or more persons interested in policy or contract), omit “above and section 547(1) of ICTA (persons liable for tax etc.)”.
If, at the beginning of 13 December 2007 (“the relevant date”)— sub-paragraphs (2) to (10) apply in respect of lease B. Section 502B of ICTA or section 148A of ITTOIA 2005 (rental earnings) does not apply in relation to a period of account within sub-paragraph (3). A period of account is within this sub-paragraph if— For the purpose of calculating the profits of the lessor under lease B for a period of account ending on or after the relevant date that is not within sub-paragraph (3), treat the lessor as receiving for that period of account income attributable to lease B of an amount equal to the relevant amount. The “relevant amount” is an amount equal to so much of the rentals that— as would not reasonably be regarded as reflected in the rental earnings for that period of account. “Rental earnings” here has the same meaning as in section 502B of ICTA or section 148A of ITTOIA 2005. If any rental is paid for a period (“the rental period”) which begins before the relevant date or is not wholly within the period of account, for the purposes of sub-paragraph (5) treat the amount of that rent as equal to the amount apportioned (on a time basis) in respect of so much of the rental period as falls on or after the relevant date and within the period of account. The income treated as received by virtue of sub-paragraph (4) is in addition to any amount brought into account under section 502B(2) of ICTA or section 148A(2) of ITTOIA 2005. Section 502C of ICTA or section 148B of ITTOIA 2005 (exceptional items) does not apply in relation to any profit or loss arising on or after the relevant date. If section 502D of ICTA or section 148C of ITTOIA 2005 (lessor making termination payment) applies in respect of the termination of lease B on or after the relevant date, a deduction is allowed (in calculating the profits of the lessor) in respect of the sum paid to the lessee. The amount of that deduction is (if it would otherwise exceed that amount) limited to the total amount brought into account in respect of the lease by virtue of sub-paragraph (2) or (4). If lease A becomes a long funding lease by virtue of section 70H of CAA 2001 (and does not cease to be such a lease), treat this paragraph as never having applied in relation to lease B. Chapter 6A of Part 2 of CAA 2001 (interpretation of provisions about long funding leases) applies in relation to this paragraph.
Omit section 486 (exclusion of maturity of capital redemption policies in certain circumstances).
In section 501 (part surrenders: loans)—
in subsection (1), insert “or” at the end of paragraph (a) and omit paragraph (c) and the “or” before it”, and
omit subsection (4).
In section 541B(7) (section 541A: further definitions), omit paragraph (b) and the “or” before it.
In Schedule 1 (consequential amendments), omit paragraphs 210 to 221 and 226 to 228.
A penalty is payable by a person (P) where P makes an unauthorised issue of an invoice showing VAT. P makes an unauthorised issue of an invoice showing VAT if P— In sub-paragraph (2)(a) “an unauthorised person” means anyone other than— This paragraph has effect in relation to any invoice which— as if the person issuing the invoice were an unauthorised person and that amount were shown on the invoice as an amount attributable to value added tax.
A failure by P to comply with a relevant obligation is— The making by P of an unauthorised issue of an invoice showing VAT is— The doing by P of an act which enables HMRC to assess an amount of duty as due from P under a relevant excise provision is— P’s acquiring possession of, or being concerned in dealing with, goods on which a payment of duty is outstanding and has not been deferred is—
Section 61 of TMA 1970 (distraint by collection) is amended as follows. In subsection (1), omit the words from “(a) in England and Wales” to “in Northern Ireland,”. Omit subsection (1A). Insert at the end—
In VATA 1994, omit section 67A (breach of controlled goods agreement).
In Schedule 6 to FA 2000 (climate change levy), omit paragraph 89A (controlled goods agreements).
Schedule 12 of the Tribunals, Courts and Enforcement Act 2007 (taking control of goods) is amended as follows. Omit paragraph 14(5) (relevant premises where enforcement agent acting under section 121A of Social Security Administration Act 1992). In paragraph 19(2) (powers to use reasonable force), for paragraphs (b) to (e) substitute—
In section 1 (time to pay directions)— In section 5 (time to pay orders)— In section 106 (interpretation), in the definition of “summary warrant”—
In Schedule 12 to FA 2003 (stamp duty land tax: collection and recovery), omit paragraph 3 (recovery of tax in Scotland).
Regulations may make provision about the kind or kinds of alternative finance arrangements that are to be available for raising money. That includes provision specifying, or about the specification of, available arrangements (or any aspect of available arrangements).
Regulations may make provision about the involvement of persons other than the Treasury in the raising of money through alternative finance arrangements. Regulations under this paragraph may, in particular, make provision for the Treasury to enter into arrangements with other persons.
Regulations may confer powers, or impose duties, on any person (including the Treasury, the Secretary of State or another Minister of the Crown).
Regulations may make modifications of any enactment. Regulations may provide that available alternative finance arrangements are to be treated for the purposes of any enactment— In this paragraph—
A statutory instrument containing regulations that amend or repeal an enactment contained in an Act may not be made unless a draft has been laid before, and approved by resolution of, the House of Commons. Subject to that, a statutory instrument containing regulations is subject to annulment in pursuance of a resolution of the House of Commons (unless a draft of the statutory instrument has been approved by resolution of the House of Commons).
The amendments made by paragraphs 3(3), 4(3), 5(2), 22, 31 to 33, 38 and 64 have effect in relation to employment-related securities and employment-related securities options where the date of the acquisition is on or after 6 April 2008 (except employment-related securities acquired pursuant to a securities option acquired before 6 April 2008).
ITA 2007 is amended as follows.
Paragraph 8 or 9 does not apply if the relevant consideration— For the purposes of sub-paragraph (1)(b), the relevant consideration falls within Schedule 28AA to ICTA without falling to be adjusted under that Schedule if— In this paragraph “relevant consideration” means—
In sub-paragraph (1) “investment transaction” means any transaction of a description specified for the purposes of this paragraph in regulations made by the Commissioners for Her Majesty’s Revenue and Customs. Provision made in regulations under sub-paragraph (3) may, in particular, have effect in relation to accounting periods current on the day on which the regulations are made. In section 828(2) of ICTA (orders and regulations), after “Finance Act 1989” insert “or paragraph 3(3) of Schedule 26 to the Finance Act 2003”.
under section 74C(5) (non-active traders: withdrawal of relief),
In section 807A of ICTA (disposals and acquisitions of company loan relationships with or without interest), omit subsection (3) (credit allowable as if amount of foreign tax had been paid). Accordingly, omit— The repeals made by this paragraph have effect in relation to related transactions on or after 12 March 2008.
This paragraph does not apply where— In sub-paragraph (2D) above— and section 839 of the Taxes Act 1988 (connected persons) applies for the purposes of that sub-paragraph. This paragraph does not apply in relation to a disposal if paragraph 11B above applies in relation to it. This paragraph does not apply where— In sub-paragraph (3ZB) above— and section 839 of the Taxes Act 1988 (connected persons) applies for the purposes of that sub-paragraph. This paragraph does not apply in relation to a disposal if paragraph 27A applies in relation to it. The amendments made by this paragraph have effect in relation to transactions taking place, or a series of transactions of which the first takes place, on or after 16 May 2008.
This Schedule has effect in relation to— Sub-paragraph (1) is subject to— The relevant date is—
In section 495 of ICTA (regional development grants), omit—
in subsection (1)(b), “, 3” and “, industrial buildings”, and
in subsection (3)(b), “, 3”.
In Schedule 10 to the Proceeds of Crime Act 2002 (tax consequences of transfers under Part 5 of that Act), omit paragraphs 18 to 21.
ITA 2007 is amended as follows. In section 24(1)(b) (reliefs deductible at Step 2), omit the entry relating to Part 3 of CAA 2001. In section 25(3) (reliefs deductible at Steps 2 and 3: supplementary), omit the entry relating to section 355 of that Act. In Schedule 1 (minor and consequential amendments), omit paragraph 406.
Subject to sub-paragraph (2), this Part of this Schedule has effect in relation to chargeable periods (within the meaning of CAA 2001) beginning on or after— The amendments made by paragraph 5 have effect in relation to a transfer by the past owner (within the meaning of section 186 of CAA 2001) in such a chargeable period.
Part 4 of FA 2004 (pension schemes etc) is amended as follows. In section 164 (authorised member payments)— 9. If regulations under section 164(1)(f) so provide, the happening of an event prescribed in the regulations in relation to a payment prescribed in the regulations An amount determined in accordance with the regulations
Part 4 of FA 2004 (pension schemes etc) is amended as follows.
In section 129(1) of FA 1982 (exemption from duty on grants, transfers to charities etc), omit “, or paragraph 16,”.
Regulations may make provision about— That includes provision specifying, or about the specification of, terms, conditions or procedures.
Regulations may make provision about ancillary arrangements. Regulations under this paragraph may, in particular, make provision about the terms or conditions of ancillary arrangements (including terms or conditions about payments). That includes provision specifying, or about the specification of, terms or conditions. In this paragraph “ancillary arrangements” means arrangements that are connected with the raising of money through alternative finance arrangements (including arrangements to facilitate or enable money to be raised through alternative finance arrangements).
Regulations may make—
provision for expenditure and other liabilities to be incurred in connection with raising money through alternative finance arrangements, and
provision about how expenditure and other liabilities are to be met.
The power under paragraph 3(2), 4(2), 7(3), 8(2)(b) or (4), or 11(2) to make provision about the specification of the matter mentioned there may, in particular, be exercised so as to provide for the Treasury or any other person to specify that matter otherwise than in regulations. Regulations may provide for the Treasury or any other person to do anything else otherwise than in regulations.
In this Schedule a reference to a person other than the Treasury includes a reference to— For the purposes of sub-paragraph (1)(b), it does not matter—
“administrator” means a person appointed to manage the affairs, business and property of another person under Schedule B1 to that Act or to that Order,
HODA 1979 is amended as follows.
This paragraph applies in relation to an individual's general earnings for the tax year 2007-08 or any earlier tax year (“the relevant tax year”) if the individual— Section 22 or 26 of ITEPA 2003 (as amended by this Part of this Schedule) applies in relation to the general earnings as if— In relation to the general earnings, the definition of “foreign employer” in section 721(1) of ITEPA 2003 has effect as if at the end there were inserted “ and not resident in the Republic of Ireland ”.
Schedule 20 to FA 2000 (tax relief for expenditure on research and development) is amended as follows. In paragraph 13 (deduction in computing profits of trade), insert at the end “(subject to paragraph 18A)”. In paragraph 14(2) (alternative treatment of pre-trading expenditure), insert at the end “(subject to paragraph 18A)”. In paragraph 15(1) (entitlement to R&D tax credit), insert at the end “(subject to paragraph 18A)”. This paragraph has effect subject to paragraph 18A. After that paragraph insert—
In section 108(1) of FA 1990 (abolition of stamp duty on transfer of securities), insert at the end “or section 67(3) or 70(3) of the Finance Act 1986 (stamp duty on certain transfers to depositary receipt systems and clearance systems)”.
The following provisions of this Schedule do not have effect in relation to an instrument effecting a land transaction or a duplicate or counterpart of such an instrument— In sub-paragraph (1) “land transaction” has the same meaning as in Part 4 of FA 2003, except that it does not include a transfer of an interest in a property-investment partnership (within the meaning of Schedule 15 of that Act).
An officer of Revenue and Customs may not inspect a business document under Part 2 of this Schedule if or to the extent that, by virtue of this Part of this Schedule, an information notice given at the time of the inspection to the occupier of the premises could not require the occupier to produce the document.
Subject to the provisions of this Schedule, the following provisions of TMA 1970 apply for the purposes of this Schedule as they apply for the purposes of the Taxes Acts—
section 108 (responsibility of company officers),
section 114 (want of form), and
section 115 (delivery and service of documents).
A reference in a provision of this Schedule to an authorised officer of Revenue and Customs is a reference to 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 that provision.
For the purposes of this Schedule, information or a document forms part of a person’s statutory records if it is information or a document which the person is required to keep and preserve under or by virtue of— subject to the following provisions of this paragraph. To the extent that any information or document that is required to be kept and preserved under or by virtue of the Taxes Acts— it only forms part of a person’s statutory records to the extent that the chargeable period or periods to which it relates has or have ended. Information and documents cease to form part of a person’s statutory records when the period for which they are required to be preserved by the enactments mentioned in sub-paragraph (1) has expired.
ICTA is amended as follows.
In section 104ZA of the Social Security Administration (Northern Ireland) Act 1992 (Class 1, 1A, 1B or 2 contributions: powers to call for documents etc), for subsections (1) and (2) substitute—
In Schedule 18 to FA 1998 (company tax returns), omit paragraphs 27, 28 and 29 (notice to produce documents etc. for purposes of enquiry into company tax return, power to appeal against such notices and penalty for failure to produce documents etc).
Omit section 174 of FA 2006 (international tax enforcement arrangements: information powers).
In section 70 of TMA 1970 (evidence), omit subsections (1) and (2).
In section 118 of the Social Security Administration Act 1992 (evidence of non-payment), omit subsections (1), (3) and (7).
In Schedule 5 to FA 1996 (landfill tax), in paragraph 37(1) (evidence by certificate)—
in paragraph (a), after “Act,” insert “or”, and
omit paragraph (c) (and the “or” before it).
In Schedule 12 to FA 2003 (stamp duty land tax: collection and recovery of tax), omit paragraph 7 (evidence of unpaid debt) and the heading before it.
Section 29 (offence of using or keeping unlicensed vehicle) is amended as follows. In subsection (1), for “on a public road a vehicle (not being an exempt vehicle)” substitute “a vehicle”. After subsection (2) insert— In subsection (3), for “in respect of the vehicle” substitute “in respect of using or keeping the vehicle on a public road”. In subsection (7), for “kept (but not used)” substitute “not being used”.
Regulations are to be made by statutory instrument.
In section 11(1) (rebate on heavy oil), for “13, 13AA and 13AB below” substitute “ 12(1), 13ZA and 13AA(1) ”.
This paragraph applies to an individual's relevant foreign income for the tax year 2007-08 or any earlier tax year (“the relevant tax year”) if— Section 832 of ITTOIA 2005 (as amended by this Part of this Schedule) applies in relation to the relevant foreign income as if section 809B of ITA 2007 (claim for remittance basis to apply) applied to the individual for the relevant tax year. But nothing in section 832 of ITTOIA 2005 applies in relation to any of the relevant foreign income that arose in the Republic of Ireland. Nothing in section 832A of that Act applies in relation to anything remitted to the United Kingdom in the tax year 2007-08 or any earlier tax year.
In section 767B (change of company ownership: supplementary), in subsection (4), for “, 767AA and 767C” substitute “and 767AA”.
In section 12(2) (rebated heavy oil not to be used as fuel for road vehicles), after “above or” insert “ section 13ZA or ”.
This paragraph applies if section 12 of TCGA 1992 (or any corresponding superseded enactment) applied in relation to a gain accruing to an individual in the tax year 2007-08 or any earlier tax year (“the relevant tax year”). Section 12 of TCGA 1992 (as amended by this Part of this Schedule) applies in relation to that gain as if section 809B of ITA 2007 (claim for remittance basis to apply) applied to the individual for the relevant tax year. Nothing in section 10A of TCGA 1992 applies in relation to any part of the gain remitted to the United Kingdom in the tax year 2007-08 or any earlier tax year.
Omit section 767C (change in company ownership: information).
In the heading of section 13 (penalties for misuse of rebated heavy oil), for “misuse of rebated heavy oil” substitute “ contravention of section 12 ”.
In section 809E(3)(b) of ITA 2007, the reference to a tax year for which section 809B, 809D or 809E of that Act applies to an individual includes a tax year (not later than the tax year 2007-08) in which the individual— In relation to such a tax year, the reference there to the individual's foreign income and gains includes the individual's relevant foreign income if (and only if)—
In section 769 (rules for ascertaining change in ownership of company)—
in subsections (1) and (5), omit “, 767C”, and
in subsections (2A) and (9), for “, 767AA or 767C” substitute “or 767AA”.
After that section insert—
Section 809L of ITA 2007 (meaning of “remitted to the United Kingdom”) has effect subject to this paragraph. If, before 6 April 2008, property (including money) consisting of or deriving from an individual's relevant foreign income was brought to or received or used in the United Kingdom by or for the benefit of a relevant person, treat the relevant foreign income as not remitted to the United Kingdom on or after that date (if it otherwise would be regarded as so remitted). If, before 12 March 2008, property (other than money) consisting of or deriving from an individual's relevant foreign income was acquired by a relevant person, treat the relevant foreign income as not remitted to the United Kingdom on or after 6 April 2008 (if it otherwise would be regarded as so remitted). Subject to sub-paragraphs (2) and (3), in relation to an individual's income and chargeable gains for the tax year 2007-08 or any earlier tax year, section 809L has effect as if the references to a relevant person were to the individual. For the purposes of sub-paragraph (4), section 648(2) to (5) of ITTOIA 2005 (and corresponding earlier enactments) do not apply (so that relevant foreign income which arose under a settlement in the tax year 2007-08 or any earlier tax year is to be treated as income for the tax year in which it arose). “Money” has the same meaning as in section 809Y of ITA 2007.
In section 20AAA(6)(b) (mixing of rebated oil), before “13AA” insert “ 13ZA or ”.
Section 809N of ITA 2007 (section 809L: gift recipients, qualifying property and enjoyment) has effect in relation to an individual's income and chargeable gains for the tax year 2007-08 or any earlier tax year as if—
the reference in subsection (2) to a relevant person were to the individual,
subsections (3) and (4) were omitted, and
the references in subsection (9) to a relevant person, all relevant persons, or relevant persons were to the individual.
In section 20AA(1) (power to allow reliefs), after “12(2)” (in both places) insert “ , 13ZB(2) ”.
Section 809O of ITA 2007 (section 809L: dealings where there is a connected operation) has effect in relation to an individual's income and chargeable gains for the tax year 2007-08 or any earlier tax year as if—
subsection (2) were omitted, and
the references in subsections (4) and (6) to a relevant person, all relevant persons, or relevant persons were to the individual.
In section 24(2) (control of use of duty-free and rebated oil), after “12(2),” insert “ 13ZB(2), ”.
Sections 809Q to 809S of ITA 2007 (transfers from mixed funds) do not apply for the purposes of determining whether income or chargeable gains for the tax year 2007-08 or any earlier tax year are remitted to the United Kingdom (or the amount of any such income or chargeable gains so remitted).
In section 27(1) (interpretation), in the definition of “rebate”, after “11,” insert “ 13ZA, ”.
This paragraph applies if— Relevant foreign income of the individual used outside the United Kingdom before 6 April 2028 to pay interest on the debt is treated as not remitted to the United Kingdom. If, at any time on or after 12 March 2008— sub-paragraph (2) does not apply in relation to relevant foreign income used as mentioned there after that time. If— sub-paragraphs (2) and (3) apply in relation to the subsequent loan (and for this purpose references there to the debt or the loan are to be read as references to the subsequent loan). In this paragraph “residential property” has the same meaning as in Part 4 of FA 2003 (see section 116 of that Act). In this paragraph “guarantee” includes an indemnity, and “guaranteed” is to be read accordingly.
This paragraph applies in relation to employment-related securities if— Section 431 of ITEPA 2003 (election for full or partial disapplication of Chapter) has effect in relation to the employment-related securities as if in subsection (5)(b) for “more than 14 days after the acquisition” there were substituted “ after 14 August 2008 ”.
The other amendments made by this Part of this Schedule have effect for the tax year 2008-09 and subsequent tax years.
In section 425(5) (gift aid: deductions when calculating total amount of income tax to which individual charged for a tax year)—
in paragraph (a), omit “and” at the end of sub-paragraph (v), and
insert at the end, and
In section 64(8) (deduction of trade losses from general income), after paragraph (b) insert—.
In the table in section 216(1) (benefit crystallisation events), in benefit crystallisation event 3 (becoming entitled to pension at increased annual rate), in column 1, after “rate which” insert—.
This paragraph applies if regulations provide for a person to do something otherwise than in regulations. Regulations may make provision about considerations that may be, must be, or must not be, taken into account by a person in connection with the doing of that thing.
applies only to persons who consume electricity— for business or charitable purposes, or for the performance of functions of a public nature, (whether or not they also consume electricity for other purposes);
In section 504(4)(b) (provisions that do not apply to income of unauthorised unit trusts), for “section 397(1)” substitute “sections 397(1) and 397A(2)”.
In section 72(5) (early trade loss relief)—
in paragraph (b), after “relief” insert “unless trade is commercial etc”, and
after that paragraph insert—.
Schedule 32 (benefit crystallisation events: supplementary) is amended as follows.
Section 567 (meaning of “overseas securities” etc) is amended as follows. After subsection (1) insert— After subsection (2) insert— Accordingly, in the heading, after “of” insert ““overseas shares”,”.
Paragraph 10 (benefit crystallisation event 3: excepted circumstances) is amended as follows. The existing provision becomes sub-paragraph (1). For paragraph (b) of that sub-paragraph substitute— A class may consist of all the pensioner members of the pension scheme. Sub-paragraph (4) applies where— If the purpose, or one of the main purposes, of the individual’s being included in the new class is to increase the annual rate of the individual’s pension without benefit crystallisation event 3 occurring, the subsequent increase is not in excepted circumstances.
Section 592 (no tax credits for borrower under stock lending arrangement) is amended as follows. In subsection (1)— In subsection (2), after “397(1)” insert “or 397A(2)”.
After that paragraph insert—
Section 593 (no tax credits for interim holder under repo) is amended as follows. In subsection (1)— In subsection (2), after “397(1)” insert “or 397A(2)”.
Paragraph 11 (benefit crystallisation event 3: permitted margin) is amended as follows. In sub-paragraph (6)— The scheme administrator may select as the reference month any month in the period of 12 months ending with the month in which the individual becomes entitled to payment of the pension at the increased rate. The base month is the month which is the same number of months before the month in which the individual became entitled to the pension, as the reference month is before the month in which the individual becomes entitled to payment of the pension at the increased rate.
Section 594 (no tax credits for original owner under repo) is amended as follows. In subsection (1)— In subsection (2), after “397(1)” insert “or 397A(2)”.
But if one or more benefit crystallisation events has or have previously occurred by reason of the individual having become entitled to payment of the pension at an increased rate, XP does not include the amount of XP on that event or the aggregate of the amounts of XP on those events. For the purposes of sub-paragraph (2), the amount of XP on a previous benefit crystallisation event is to be increased by whichever of calculation A and calculation B gives the greater amount. Calculation A involves increasing the amount of XP on the previous event at the relevant annual percentage rate for the whole of the period— The relevant annual percentage rate has the same meaning as in paragraph 11(4). Calculation B involves increasing the amount of XP on the previous event by the relevant indexation percentage. The relevant indexation percentage is— The scheme administrator may select as the reference month any month in the period of 12 months ending with the month in which the individual becomes entitled to payment of the pension at the increased rate. The base month is the month which is the same number of months before the month in which the previous event occurred, as the reference month is before the month in which the individual becomes entitled to payment of the pension at the increased rate.
Section 595 (meaning of “manufactured dividend”) is amended as follows. For “has” substitute “and “manufactured overseas dividend” have”. For “section 573(1)(a)” substitute “sections 573(1)(a) and 581(1)(a)”.
In consequence of the amendment made by paragraph 7(3), in Schedule 10 to FA 2005, omit paragraph 44.
In section 989 (definitions), in the definition of “tax credit”, after “397(1)” insert “or 397A(2)”.
The amendments made by paragraphs 9(2) and (3) come into force on 6 April 2008. The amendment made by paragraph 10 has effect for the purposes of any benefit crystallisation event 3 occurring on or after 10 October 2007 (including the calculation, for the purposes of such an event, of the amount of XP on any benefit crystallisation event occurring before that date). Subject to that, the amendments made by paragraphs 4 to 11 are treated as having come into force on 6 April 2006.
In Part 14 of ITA 2007 (income tax liability: miscellaneous rules), before Chapter 1 insert—
In section 13(2) of TCGA 1992 (attribution of gains to members of non-resident companies), for the words from “, who, if” to “and who” substitute “ and ”.
Chapter 4 of Part 5 of ITA 2007 (EIS: the issuing company) is amended as follows.
Schedule 22 to FA 2000 (tonnage tax) is amended as follows. In paragraph 87(1)(a), for “a first-year allowance shall not” substitute “no annual investment allowance or first-year allowance is to be”. In paragraph 94(2), after “any” insert “annual investment allowance or”.
Schedule 20 to FA 2000 (tax relief for expenditure on research and development) is amended as follows. In paragraph 15 (entitlement to R&D tax credit)— In paragraph 23 (treatment of deemed trading loss), in sub-paragraph (2), after “section 393A(1)(b)” insert “or 393B(3)”.
are provided for in a relevant trading scheme, and
After section 14 of that Act insert—
In section 192 (meaning of “excluded activities”)—
in subsection (1), after paragraph (i) insert—, and
in subsection (2), after paragraph (d) insert—.
The amendments made by paragraphs 103 and 104 have effect in relation to chargeable gains accruing on or after 6 April 2008.
After section 196 insert—
Regulations under this section are to be made by statutory instrument.
A statutory instrument containing the first regulations under this section may not be made unless a draft of the regulations has been laid before, and approved by a resolution of, the House of Commons.
Any other statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons unless a draft of the regulations has been laid before, and approved by a resolution of, that House.
Part of gross gaming yield Rate The first £1,911,000 15 per cent The next £1,317,000 20 per cent The next £2,307,000 30 per cent The next £4,869,500 40 per cent The remainder 50 per cent
The amendment made by subsection (1) has effect in relation to accounting periods beginning on or after 1 April 2008.
Months for which licence granted Category A Category B1 Category B2 Category B3 Category B4 Category C £ £ £ £ £ £ 1 455 230 180 180 165 70 2 905 450 355 355 320 135 3 1355 675 535 535 485 200 4 1805 905 710 710 645 265 5 2260 1130 890 890 805 335 6 2710 1355 1065 1065 965 400 7 3160 1580 1245 1245 1125 465 8 3610 1805 1420 1420 1290 530 9 4065 2030 1600 1600 1450 600 10 4515 2260 1775 1775 1610 665 11 4965 2485 1955 1955 1770 730 12 5160 2580 2030 2030 1840 760
The amendment made by subsection (1) has effect in relation to cases where the application for the amusement machine licence is received by the Commissioners for Her Majesty's Revenue and Customs after 4pm on 14 March 2008.
Section 831 of ITA 2007 (foreign income of individuals in United Kingdom for temporary purpose) is amended as follows.
In subsection (1), for paragraph (b) substitute—
After that subsection insert—
In section 832 of that Act (employment income of individuals in United Kingdom for temporary purpose), after subsection (1) insert—
Section 9 of TCGA 1992 (residence, including temporary residence) is amended as follows.
In subsection (3), for the words after “if and only if” substitute “ the individual spends (in total) at least 183 days in the United Kingdom. ”
Insert at the end—
The amendments made by this section have effect for the tax year 2008-09 and subsequent tax years.
Schedule 7 contains provision for and in connection with the revision of the remittance basis.
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Paragraph 5 of Schedule 20 to FA 2000 (R&D tax relief: staffing costs) is amended as follows.
In sub-paragraph (1)(b), after “company;” insert—.
In sub-paragraph (1)(ba) “social security legislation” means legislation relating to any of the branches of social security listed in Article 3(1) of Regulation (EC) No 883/2004 of the European Parliament and of the Council of 29 April 2004 on the co-ordination of social security systems (as amended from time to time).
Schedule 13 to FA 2002 (vaccine research relief) is amended as follows.
In paragraph 2 (qualifying expenditure)—
in sub-paragraph (1)(a), at the end insert “or”,
omit sub-paragraph (1)(c) (and the “or” before it), and
omit sub-paragraph (4).
In paragraph 6 (qualifying expenditure on sub-contracted research and development), omit—
in sub-paragraph (1), the second sentence, and
sub-paragraph (3) (expenditure on research sub-contracted to a charity, a university or a scientific research organisation).
Omit paragraph 12 (qualifying expenditure on contributions to independent research and development).
Omit paragraph 25 (refunds of qualifying expenditure on contributions to independent research and development).
Accordingly, in paragraph 3 of Schedule 8 to this Act (changes to rates of vaccine research relief), omit sub-paragraphs (2)(e) and (3)(d).
The amendments made by this section have effect in relation to expenditure incurred on or after such day as the Treasury may by order appoint.
Paragraph 10(4) of Schedule 13 to FA 2002 (time limit for giving notice of election for connected persons treatment) does not apply to a notice of an election under that paragraph in relation to sub-contractor payments if—
the sub-contractor falls within paragraph 6(3) of that Schedule (repealed by this section) (charity, university or scientific research organisation), and
the notice is given before the end of the period of 12 months beginning with the day appointed under subsection (10).
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A company is only entitled to R&D relief in respect of expenditure attributable to a research and development project if, or to the extent that, at that time, the total R&D aid in respect of expenditure by the company attributable to the project would not exceed 7.5 million euros.
In subsection (1)—
any other account in which money is held by or on behalf of Her Majesty's Government in the United Kingdom.
“HMRC decision” means— and references to an HMRC decision include references to anything done by such a person in connection with making such a decision or in consequence of such a decision;
In section 125 of FA 1990 (information for tax authorities in other member States)—
omit subsections (1) and (2),
in subsection (3), for “the Directive mentioned in subsection (1) above” substitute “the Directive of the Council of the European Communities dated 19 December 1977 No. 77/799/EEC (the “1977 Directive”)”,
in subsection (4), for “such as is mentioned in subsection (1) above” substitute “which is covered by the provisions for the exchange of information under the 1977 Directive”, and
in subsection (6), omit the words from the beginning to “passed,”.
Omit section 28(1) to (3) (powers of inspection).
In section 13(5) (gold), omit paragraph (c).
In consequence of the preceding provisions of this Part of this Schedule, omit the following—
section 126 of FA 1988,
sections 142(2), (3), (4), (6)(a), (7), (8) and (9) and 144(3), (5) and (7) of FA 1989,
sections 187 and 255 of, and paragraph 29 of Schedule 19 to, FA 1994,
paragraph 6 of Schedule 1 to the Civil Evidence Act 1995 (c. 38),
paragraph 17 of Schedule 3, paragraph 3 of Schedule 19 and paragraph 2 of Schedule 22 to FA 1996,
section 115 of, and paragraphs 36 and 42(6) and (7) of Schedule 19 to, FA 1998,
section 15(3) of FA 1999,
paragraphs 21 and 38(4) of Schedule 29 to FA 2001,
section 20 of FA 2006, and
paragraph 350 of Schedule 1 to ITA 2007.
An assessment under this paragraph may be made at any time not more than 6 years after the end of the accounting period for which the relief was obtained. Sub-paragraph (5) is without prejudice to paragraph 46(2A) of Schedule 18 to the Finance Act 1998 (loss of tax brought about deliberately).
In section 178(3) of FA 1993 (stop-loss and quota share insurance)—
in paragraph (a), for “six years” substitute “4 years”, and
in paragraph (b), for “fraudulent or negligent conduct” substitute “loss of tax brought about carelessly or deliberately”.
“authorised person” means a person who is, or is a member of a class of persons who are, authorised by the Commissioners to exercise the powers under subsection (3),
TCGA 1992 is amended as follows.
The amendments made by this Schedule have effect in relation to disposals, reorganisations (within the meaning of section 169Q of TCGA 1992) and relevant transactions (within the meaning of section 116 of TCGA 1992) taking place on or after 6 April 2008.
This paragraph applies where there is a relevant chargeable event in a case in which the original gain would, apart from Schedule 5B (enterprise investment scheme) or Schedule 5C (venture capital trusts), have accrued before 6 April 2008. “Relevant chargeable event” means a chargeable event under— which occurs on or after 6 April 2008 in relation to any of the relevant shares held by the investor immediately before the first relevant chargeable event. In this paragraph “the first relevant chargeable event” means the first relevant chargeable event in the case. The following provisions apply if— In this paragraph “the relevant disposal” means— In sub-paragraph (5)(a) “the relevant underlying disposal” means the disposal (not being a disposal within paragraph 3 of Schedule 5B or 5C) by virtue of which Schedule 5B or 5C has effect. Subject as follows, the amount treated as accruing on the relevant chargeable event in respect of the original gain event or original gain disposal is the amount which would be arrived at under section section 169N(1) and (2) if— and “the relevant proportion” means the proportion of the relevant shares which is held by the investor immediately before the first relevant chargeable event. The amount treated as accruing on the relevant chargeable event in respect of the original gain event or original gain disposal is that specified in sub-paragraph (9) where the relevant chargeable event is not a chargeable event in relation to all the relevant shares held by the investor immediately before the first relevant chargeable event. The amount referred to in sub-paragraph (8) is the appropriate proportion of the amount in sub-paragraph (7); and “the appropriate proportion” means the proportion of the relevant shares held by the investor immediately before the first relevant chargeable event as respects which the relevant chargeable event is a chargeable event. Section 169N(3) to (4B) is to apply to the amount treated as accruing in accordance with sub-paragraphs (7) to (9). In this paragraph— References in this paragraph to any provision are to be read as they would be if this paragraph formed part of TCGA 1992.
HODA 1979 is amended as follows.
TCGA 1992 is amended as follows.
Paragraph 13 provides for reductions in penalties under paragraphs 1 to 4 where P discloses a relevant act or failure P discloses a relevant act or failure by— Disclosure of a relevant act or failure— In relation to disclosure “quality” includes timing, nature and extent.
Where P becomes liable for a penalty under any of paragraphs 1 to 4 HMRC shall— A penalty under any of paragraphs 1 to 4 must be paid before the end of the period of 30 days beginning with the day on which notification of the penalty is issued. An assessment— An assessment of a penalty under any of paragraphs 1 to 4 must be made before the end of the period of 12 months beginning with— In sub-paragraph (4)(a) “appeal period” means the period during which— Subject to sub-paragraph (4), a supplementary assessment may be made in respect of a penalty if an earlier assessment operated by reference to an underestimate of potential lost revenue. The references in this paragraph to “an assessment to tax” are, in relation to a penalty under paragraph 2, a demand for recovery.
In paragraph 1 the reference to a failure by P includes a failure by a person who acts on P’s behalf; but P is not liable to a penalty in respect of any failure by P’s agent where P satisfies HMRC or (on appeal) the First-tier Tribunal that P took reasonable care to avoid the failure. In paragraph 2 the reference to the making by P of an unauthorised issue of an invoice showing VAT includes the making of such an unauthorised issue by a person who acts on P’s behalf; but P is not liable to a penalty in respect of any action by P’s agent where P satisfies HMRC or (on appeal) the First-tier Tribunal that P took reasonable care to avoid it. In paragraph 3(1) the reference to the doing by P of an act which enables HMRC to assess an amount as duty due from P under a relevant excise provision includes the doing of such an act by a person who acts on P’s behalf; but P is not liable to a penalty in respect of any action by P’s agent where P satisfies HMRC or (on appeal) the First-tier Tribunal that P took reasonable care to avoid it. In paragraph 4 the reference to P acquiring possession of, or being concerned in dealing with, goods the payment of duty on which is outstanding and has not been deferred includes a person who acts on P’s behalf doing so; but P is not liable to a penalty in respect of any action by P’s agent where P satisfies HMRC or (on appeal) the First-tier Tribunal that P took reasonable care to avoid it.
This paragraph applies for the construction of this Schedule “HMRC” means Her Majesty’s Revenue and Customs. “Tax”, without more, includes duty. An expression used in relation to value added tax has the same meaning as in VATA 1994.
FA 1994 is amended as follows. Omit section 10A (breaches of controlled goods agreements). In Schedule 7 (insurance premium tax), omit paragraph 18A (breaches of controlled goods agreements).
In section 51 of FA 1997 (enforcement by distress), omit subsection (A1).
In Schedule 12 to FA 2003 (stamp duty land tax: collection and recovery), omit paragraph 1A (recovery of tax in England and Wales).
In the Social Security Administration Act 1992, omit section 121B (recovery of contributions etc in Scotland).
At the beginning of Chapter 4 of Part 2 (indexation allowance), insert—
Section 14A (rebate on biodiesel used other than as fuel for road vehicles) is amended as follows. In subsection (1)— After subsection (3) insert— Accordingly, in the heading, insert at the end “ etc ”.
Section 3 (annual exempt amount) is amended as follows. After subsection (1) insert— In subsection (5C)—
Where a person who would otherwise be liable to a 100% penalty has made an unprompted disclosure, HMRC shall reduce the 100% to a percentage, not below 30%, which reflects the quality of the disclosure. Where a person who would otherwise be liable to a 100% penalty has made a prompted disclosure, HMRC shall reduce the 100% to a percentage, not below 50%, which reflects the quality of the disclosure. Where a person who would otherwise be liable to a 70% penalty has made an unprompted disclosure, HMRC shall reduce the 70% to a percentage, not below 20%, which reflects the quality of the disclosure. Where a person who would otherwise be liable to a 70% penalty has made a prompted disclosure, HMRC shall reduce the 70% to a percentage, not below 35%, which reflects the quality of the disclosure. Where a person who would otherwise be liable to a 30% penalty has made an unprompted disclosure, HMRC shall reduce the 30%— which reflects the quality of the disclosure. Where a person who would otherwise be liable to a 30% penalty has made a prompted disclosure, HMRC shall reduce the 30% — which reflects the quality of the disclosure.
In section 53 (indexation allowance), omit—
subsection (1A), and
in subsection (4), “, 110A”.
Section 14C (restrictions on use of rebated biodiesel and bioblend) is amended as follows. In subsection (1)— After subsection (4) insert—
In section 3A (reporting limits), after subsection (5) insert—
Section 54 (calculation of indexation allowance) is amended as follows. In subsection (1), for “the relevant month” substitute “ the month in which the disposal occurs ”. Omit subsection (1A).
After section 14D insert—
In section 9 (residence etc), omit subsection (2).
Section 145 (call options: indexation allowance) is amended as follows. In subsection (1), omit “(subject to subsection (1A) below)”. Omit subsection (1A).
In section 24(1) (control of use of duty-free and rebated oil), for “14C” substitute “ 14E ”.
In section 10A (temporary non-residents), after subsection (9) insert—
In consequence of the amendments made by paragraphs 77 to 81, omit section 122(1) to (3) and (5) of FA 1998.
For section 12 substitute—
The amendments made by paragraphs 77 to 82 have effect in computing gains on disposals made on or after 6 April 2008.
In section 16 (computation of losses), omit subsection (4).
After that section insert—
In section 119A (increase in expenditure by reference to tax charged in relation to employment-related securities), after subsection (5) insert—
After that section insert—
In section 225(3)(b) of FA 1994 (stop-loss and quota share insurance), for “fraudulent or negligent conduct” substitute “loss of tax brought about carelessly or deliberately”.
In consequence of the preceding provisions of this Schedule, omit—
section 149(4)(a)(i) and (ii) of FA 1989,
paragraphs 4 and 6 of Schedule 21 to FA 1996,
section 47(10) of FA 1997,
paragraph 18 of Schedule 19 to FA 1998, and
section 91(6)(b) of FA 2007.
ICTA is amended as follows.
Omit paragraph 21 of Schedule 6 to FA 1996 (which amends section 789(2) of ICTA).
TCGA 1992 is amended as follows.
In section 274 of TCGA 1992 (value determined for inheritance tax), for “that tax” substitute “ the application of that tax to the estate ”.
FA 1994 is amended as follows.
The amendments made by this Part of this Schedule come into force on 1 November 2008.
For the purposes of section 29, “total R&D aid”, in respect of expenditure by a company (the “claimant”) attributable to a research and development project, is calculated as follows— where— A is total R&D aid, TC is the tax credits (see paragraph 2), R is the actual reduction in tax liability (see paragraph 3), P is the potential relief (see paragraph 4), CT is the main rate of corporation tax at the time when the total R&D aid is calculated, and N is the notional relief (see paragraph 5).
If any debits or credits relate to liabilities arising from deposit back arrangements, they are (subject to sub-paragraph (2B)) referable to the category of long-term business which comprises the business reinsured by the arrangements under which the deposit back arrangements are made. If the business reinsured is not all of the same category of long-term business, the debits and credits for any period of account are referable to the categories of business in the same proportions as the mean of the proportions at the beginning and end of the period of account of the liabilities reinsured by the arrangements which are liabilities of the categories of business. and, in sub-paragraph (4), after “(2)” insert “, (2A)”. “deposit back arrangements” means arrangements by which an amount is deposited by the reinsurer under a contract of reinsurance with the cedant; and, in the definition of “liabilities”, omit the words following paragraph (b). The amendments made by this paragraph have effect in relation to periods of account beginning on or after 1 January 2008 and ending on or after 12 March 2008.
Schedule 26 to FA 2002 (derivative contracts) is amended as follows. In sub-paragraph (2) of paragraph 41, for “paragraphs 42 and 43” substitute “the following paragraphs”. After that paragraph insert— Omit paragraph 42 (and the heading before it). After that paragraph insert— The amendments made by sub-paragraphs (2) and (3) have effect in relation to periods of account beginning on or after 1 January 2007. The amendments made by sub-paragraphs (4) and (5) have effect in relation to periods of account beginning on or after 1 January 2008 and ending on or after 12 March 2008.
Section 432A of ICTA (apportionment of income and gains) is amended as follows. In subsection (1)— After that subsection insert— are In subsection (3), after “Income” insert “or losses”. After that subsection insert— In subsection (4A), after “Income” insert “or losses”. In subsection (5), for “income, gains or losses” substitute “income and losses referred to in paragraph (a) of subsection (1) above, and any gains and losses referred to in paragraph (b) of that subsection,”. In subsection (7)— In consequence of the preceding provisions, omit the provisions specified in sub-paragraph (11). The provisions mentioned in sub-paragraph (10) are— The amendments made by this paragraph have effect in relation to accounting periods beginning on or after 1 January 2008.
In section 431A of ICTA (powers to amend), after subsection (2) insert—
Schedule 22 to FA 2001 (remediation of contaminated land) is amended as follows. In paragraph 14 (entitlement to land remediation tax credit)— In paragraph 17 (restriction on losses carried forward), omit— In paragraph 21 (provision in respect of I minus E basis), for the words after “where” substitute “an insurance company is charged to tax under the I minus E basis in respect of its life assurance business for any accounting period.” In paragraph 22(2) (entitlement to relief: I minus E basis), for “is entitled to relief for that accounting period in respect of its qualifying expenditure” substitute “may treat the amount of its qualifying expenditure as expenses payable which fall to be brought into account for that accounting period at Step 1 in section 76(7) of the Taxes Act 1988”. In paragraph 24 (entitlement to life assurance company tax credit), omit— In paragraph 27(1) (restriction on carrying forward expenses payable)— The amendments made by this paragraph have effect in relation to accounting periods beginning on or after 1 January 2008.
Section 431D of ICTA (meaning of “overseas life assurance business”) is amended as follows. In subsections (2) and (4), for “Board” substitute “Commissioners”. In subsection (3), for “Board” substitute “Commissioners for Her Majesty’s Revenue and Customs”.
In section 757 of ICTA (disposals to which Chapter 5 of Part 17 of that Act applies), after subsection (1) insert— The amendment made by sub-paragraph (1) has effect in relation to disposals made in accounting periods beginning on or after 1 January 2008.
In ICTA, omit section 737D (power to provide that manufactured payments are to be treated as income eligible for relief under section 438). In consequence of sub-paragraph (1), omit—
Paragraph 17 of Schedule 9 to FA 2007 (transfers: commencement) is amended as follows. In sub-paragraph (2), for “9, 10(3) to (5),” substitute “10(5),”. In sub-paragraph (3)— The amendment made by paragraph 9 has effect in relation to contracts entered into in a period of account beginning on or after 1 January 2008. The amendments made by paragraph 10(3) and (4) have effect in relation to assets transferred on or after 1 January 2008.
In section 88(5) of FA 1989 (policy holders' share of profits), omit the words after “January 1990”.
Section 785A of ICTA (rent factoring of leases of plant or machinery) is amended as follows. In subsection (1), omit paragraph (d). In subsection (2)— After that subsection insert— After subsection (5) insert— The amendments made by this paragraph have effect in relation to arrangements for transfers of rights entered into on or after 12 March 2008.
In Schedule 9 to FA 1996 (loan relationships: special computational provisions), after paragraph 11A insert— In Schedule 26 to FA 2002 (derivative contracts), after paragraph 27 insert— The amendments made by this paragraph have effect in relation to disposals on or after 16 May 2008.
Section 91A of FA 1996 (shares treated as loan relationship: shares subject to outstanding third party obligations which are interest-like investments) is amended as follows. After subsection (2) insert— In subsections (3) and (4), omit “debits and”.
In section 91C(3) of FA 1996 (assets which are income producing), for paragraph (c) substitute—. The amendment made by sub-paragraph (1) has effect in relation to times on or after 16 May 2008.
In FA 1996, after section 91G insert— In section 131 of FA 2004 (companies in partnership), insert at the end— The amendments made by this paragraph have effect in relation to returns arising on or after 12 March 2008.
Schedule 26 to FA 2002 (derivative contracts) is amended as follows. In paragraph 3(1)(b)(ii) (contract must be treated for accounting purposes as financial asset or liability), for “is treated for accounting purposes as, or as forming” substitute “for accounting purposes is, or forms”. In paragraph 4(2)(b) (contracts excluded by virtue of underlying subject matter) after “(2D)” insert “and which are not designed to produce a return which equates, in substance, to the return on an investment of money at a commercial rate of interest”. The amendments made by this paragraph have effect in relation to accounting periods ending on or after 12 March 2008. But where a company was, immediately before that date, a party to a relevant contract that becomes a derivative contract for the purposes of Schedule 26 to FA 2002 by virtue of those amendments, it is to be regarded for those purposes as having been entered into by the company on that date for a consideration equal to the notional carrying value (within the meaning of paragraph 43A(5) of that Schedule) on that date.
After section 572 insert—
Omit section 575 (allowable deductions for manufactured dividends on UK shares: restriction on double-counting).
Omit section 580 (allowable deductions for manufactured interest on UK securities: restriction on double counting).
Section 263D of TCGA 1992 (gains accruing to persons paying manufactured dividends) is amended as follows. In subsection (6)(b), for “adjusted amount” substitute “amount specified in subsection (7) below”. For subsection (7) substitute—
In section 9 of the Oil Taxation Act 1983 (c. 56) (tariff receipts allowance), in subsection (5)(a), for the words from “other than” to the end substituteother than—
Schedule 11 to VATA 1994 (administration, collection and enforcement) is amended as follows.
In section 65(6) of FA 1991 (additional assessment to corporation tax on receipt of reimbursement expenditure), for “six years” substitute “4 years”.
Liability to a penalty under any of paragraphs 1, 2, 3(1) and 4 does not arise in relation to an act or failure which is not deliberate if P satisfies HMRC or (on appeal) the First-tier Tribunal that there is a reasonable excuse for the act or failure. For the purposes of sub-paragraph (1)—
P is not liable to a penalty under any of paragraphs 1 to 4 in respect of a failure or action in respect of which P has been convicted of an offence.
“HODA 1979” means the Hydrocarbon Oil Duties Act 1979 (c. 5),
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Section 2 (chargeable gains and allowable losses) is amended as follows. For subsections (4) to (6) substitute— In subsection (7), omit— Omit subsection (8).
In section 12A(3)(c) (other assessment relating to excise duty matters)—
after “13AB,” insert “ 13AD, ”, and
after “14,” insert “ 14F, ”.
In paragraph 1 “the tax credits” means the aggregate of the tax credits that have been paid to the claimant under paragraph 18 of Schedule 20 to FA 2000 or paragraph 18 of Schedule 13 to FA 2002 in respect of expenditure attributable to the project. A tax credit that has been claimed but not paid or applied shall be treated for the purposes of sub-paragraph (1) as if it had been paid, unless the claimant has been informed by Her Majesty’s Revenue and Customs that the tax credit will not be paid or applied.
In section 476(3) of ITTOIA 2005 (foreign policies), omit— In consequence of sub-paragraph (1), omit paragraph 78 of Schedule 7 to FA 2007. The amendments made by this paragraph have effect as if they were made by Schedule 7 to FA 2007 (see section 38(2) of that Act).
Section 91B of FA 1996 (shares treated as loan relationship: non-qualifying shares) is amended as follows. After subsection (2) insert— In subsections (3) and (4), omit “debits and”. After subsection (6) insert—
In ITA 2007, omit paragraph 335(5) of Schedule 1 (which amended section 263D(7) of TCGA 1992).
Paragraph 6 (duty to keep records) is amended as follows. In sub-paragraph (3), for “require”, in the second place, substitute “specify in writing (and different periods may be specified for different cases)”. The duty under this paragraph to preserve records may be discharged— subject to any conditions or exceptions specified in writing by the Commissioners for Her Majesty’s Revenue and Customs.
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Omit section 2A (taper relief).
In section 12B(2)(f) (section 12A: supplementary provisions)—
after “13AB,” insert “ 13AD, ”, and
after “14” insert “ , 14F ”.
In paragraph 1 “the actual reduction in tax liability” means the aggregate of—
the amounts by which the liability of the claimant to pay corporation tax has been reduced in any accounting period in consequence of R&D relief in respect of expenditure attributable to the project, and
the amounts by which the liability of any other company to pay corporation tax has been reduced in any accounting period in consequence of a surrender to the company by the claimant under section 402 of ICTA (surrender of relief between members of groups and consortia) of a loss arising in consequence of R&D relief in respect of expenditure attributable to the project.
The amendments made by paragraphs 7 and 8 have effect in relation to accounting periods ending on or after 12 March 2008 but, in the case of an accounting period beginning before that date, only if the debits relate to any time on or after that date.
In paragraph 6A(7) (application of provisions of paragraph 6 where directions under paragraph 6A require records to be kept)—
for “Sub-paragraphs (4) to (6) of paragraph 6 (preservation of information by means approved by the Commissioners) apply” substitute “Sub-paragraph (4) of paragraph 6 (preservation of information) applies”, and
for “they apply” substitute “it applies”.
In section 552(5)(f)(i) (information: duty of insurers), for “savings rate” substitute “ basic rate ”.
Section 3 (annual exempt amount) is amended as follows. In subsection (5), for the words from “which, after” to the end of paragraph (c) substitute “ which ”. In subsection (5C)(c)—
In section 14(1)(ba) (requirement for review of a decision)—
after “13AB,” insert “ 13AD, ”, and
after “14,” insert “ 14F, ”.
In paragraph 1 “the potential relief” means the aggregate amount of any R&D relief (other than a tax credit)— R&D relief shall not be counted for the purposes of sub-paragraph (1) if the claimant has been informed by Her Majesty’s Revenue and Customs that it is not entitled to the relief.
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In section 3A(2) (reporting limits)—
omit paragraph (a), and
in paragraph (b), for “such a deduction does fall to be made is the amount before deduction of losses or any reduction for taper relief” substitute “ a deduction falls to be made in respect of allowable losses is the amount before the deduction ”.
In paragraph 1 “the notional relief” is the aggregate amount of relief that the claimant could have claimed under Schedule 12 to FA 2002 (tax relief for expenditure on R&D: large companies etc) in any accounting period in respect of qualifying R&D expenditure attributable to the project if it had been a large company throughout the accounting period. In this paragraph—
In section 701(3A) (estates of deceased persons in administration), omit—
“, the savings rate” (in both places),
“at the savings rate or”, and
sub-paragraph (ii) of paragraph (b) and the “and” before it.
Omit section 13(10A) (attribution of gains to members of non-resident companies).
Omit section 789(2) (double taxation arrangements made under old law: surtax).
Section 62 (death) is amended as follows In subsection (2A), for “brought into account for that year by virtue of section 2(5)(b)” substitute “ treated as accruing by virtue of section 87 or 89(2) (read, where appropriate, with section 10A) ”. Omit subsection (2B).
In section 86(1)(e) (attribution of gains to settlors with interest in non-resident or dual resident settlements), for the words after “under section 2(2)” substitute “ if the assumption as to residence specified in subsection (3) below were made; ”.
Section 86A (attribution of gains to settlor in section 10A cases) is amended as follows. In subsection (2)— Omit subsection (2A). Omit subsection (2B). In subsection (7), for “the tapered section 10A amount” substitute “ the amount (or aggregate amount) falling in accordance with that section to be so attributed ”. Omit subsection (7A).
Omit section 150D (enterprise investment scheme: application of taper relief).
In subsection (8) of section 165 (relief for gifts of business assets), for paragraph (aa) substitute—.
After that section insert—
Omit section 214C (re-organisations of mutual business: gains not eligible for taper relief) and the heading before it.
In section 228(8) (relief for employee share ownership trusts), for “meanings given by paragraph 22 of Schedule A1” substitute “ same meaning as in section 165 (see section 165A) ”.
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In section 253(14)(b) (relief for loans to traders), for “meaning given by paragraph 22 of Schedule A1” substitute “ same meaning as in section 165 (see section 165A) ”.
Omit section 261C(2)(a) (treating trading loss etc as CGT loss: meaning of “the maximum amount”).
In section 279(2)(a) (foreign assets: delayed remittances), omit “(before the application of any taper relief)”.
In section 279A(7)(b) (deferred unascertainable consideration: election for treatment of loss), for “any amounts that fall to be brought into account for that year under section 2(4)(b) by virtue of section 2(5)(b),” substitute “ the total amount of chargeable gains treated as accruing in that year by virtue of section 87 or 89(2) (read, where appropriate, with section 10A), ”.
In section 279B(1) (provisions supplementary to section 279A), for paragraph (b) substitute—
Section 279C (effect of election under section 279A) is amended as follows. For subsections (3) and (4) substitute— In subsection (6)(c), for “the provisions specified in subsection (8) below” substitute “ amounts of chargeable gains treated as accruing in that later year by virtue of section 87 or 89(2) (read, where appropriate, with section 10A) ”. Omit subsection (8). Omit subsection (10).
Omit section 284B(1) (provisions supplementary to section 284A).
Omit Schedule A1 (taper relief).
Schedule 4C (transfers of value: attribution of gains to beneficiaries) is amended as follows.
Paragraph 6 (gains attributed to settlor) is amended as follows. In sub-paragraph (1), for “the tapered amount of any chargeable gains” substitute “ the amount of any chargeable gains ”. Omit sub-paragraph (1A).
Omit paragraph 11 (taper relief).
Omit Schedule 5BA (application of taper relief to enterprise investment scheme).
Omit paragraph 15 of Schedule 7D (enterprise management incentives).
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In paragraph 86(2) of Schedule 7 to ITEPA 2003 (transitionals and savings), omit the second sentence.
Omit section 185G(3)(c) of FA 2004 (disposal by person holding taxable interest directly).
Omit section 161(5) of ITA 2007 (other tax reliefs relating to EIS).
In consequence of paragraphs 23 to 54, omit—
in FA 1998—
section 121(1) and (2),
section 140(5),
Schedule 20, and
paragraphs 2, 4, 6(3) and (4), 7 and 9 of Schedule 21,
in FA 1999—
section 72, and
Schedule 7,
sections 66 and 67 of FA 2000,
in FA 2001—
section 78, and
Schedule 26,
in FA 2002—
sections 46 and 47,
paragraph 5(13) of Schedule 9,
Schedule 10, and
paragraphs 2(2) and 4 to 6 of Schedule 11,
in FA 2003—
section 160, and
paragraph 5 of Schedule 29,
in Schedule 21 to FA 2004—
paragraphs 3(4) and 8, and
in paragraph 10, in sub-paragraph (4), “, 8(2)” and sub-paragraph (6),
paragraphs 13 and 27 of Schedule 12 to FA 2006, and
paragraphs 313 and 343 of Schedule 1 to ITA 2007.
The amendments made by paragraph 31(2) and (3) have effect where the intervening year is the tax year 2008-09 or any subsequent tax year. The amendments made by paragraphs 41 and 43 have effect where the eligible year is the tax year 2008-09 or any subsequent tax year. The other amendments made by paragraphs 23 to 55 have effect in relation to chargeable gains accruing or treated as accruing in the tax year 2008-09 or any subsequent tax year.
The Treasury may by regulations—
increase the amount specified in subsection (1), and
amend Part 1 of Schedule 10.
Part 2 of Schedule 10 contains amendments consequential on this section.
Subsections (1) to (4) and that Schedule come into force on such day as the Treasury may by order appoint.
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A claim under this paragraph must include a declaration that the availability of the relief claimed has resulted in an increase in—
The amendment made by subsection (1) has effect in relation to claims made on or after such day as the Treasury may by order appoint.
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In section 158(2)(b) of ITA 2007 (form and amount of EIS relief), for “£400,000” substitute “£500,000”.
The amendment made by subsection (1) has effect for—
such tax year as the Treasury may by order specify, and
all tax years subsequent to the specified tax year.
An order under subsection (2) may specify the tax year in which it is made.
Section 1014(4) of ITA 2007 (orders etc subject to annulment) does not apply in relation to an order under subsection (2).
Schedule 11 contains provision about venture capital schemes.
Part 3 of Schedule 5 to ITEPA 2003 (enterprise management incentives: qualifying companies) is amended as follows.
In paragraph 8 (qualifying companies: introduction), omit the “and” at the end of the entry relating to paragraph 12, and after that entry insert— “ number of employees (see paragraph 12A), and ”.
After paragraph 12 insert—
In paragraph 16 (excluded activities), after paragraph (i) insert—.
After paragraph 20 insert—
The amendments made by this section have effect in relation to options granted on or after the day on which this Act is passed.
Schedule 12 contains provision about tax credits for certain foreign distributions.
The amendments made by that Schedule have effect for the tax year 2008-09 and subsequent tax years.
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Section 13 of ICTA (small companies' relief) is amended as follows.
In the second sentence of subsection (4) (meaning of “control” for purposes of definition of “associated company”), insert at the end “except that, in the application of subsection (6) of that section in relation to the company (“the taxpayer company”) and another company or companies for the purposes of this section, the references to an associate of a person (“P”) include a partner of the person only if the condition in subsection (4A) below is met.”
After that subsection insert—
The amendments made by this section are treated as having come into force on 1 April 2008.
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Schedule 14 contains amendments and repeals consequential on that Schedule etc.
Schedule 15 contains provision about the effect of certain changes in trading stock on the calculation of profits of trades for the purposes of income tax or corporation tax.
The amendments made by that Schedule have effect in relation to changes in trading stock occurring on or after 12 March 2008.
In subsection (2) “change in trading stock” means—
in relation to new section 172B of ITTOIA 2005, or paragraph 6 of Schedule 15, an appropriation of trading stock,
in relation to new section 172C of ITTOIA 2005, or paragraph 7 of Schedule 15, a thing becoming trading stock,
in relation to new section 172D of ITTOIA 2005, or paragraph 8 of Schedule 15, a disposal of trading stock, and
in relation to new section 172E of ITTOIA 2005, or paragraph 9 of Schedule 15, an acquisition of trading stock.
Schedule 16 contains provision about—
the eligibility of an investment manager to be the UK representative of a non-resident, or an agent of independent status in relation to a non-resident, and
profits or income of non-residents that are to be disregarded if derived from certain investment transactions carried out by investment managers.
The Commissioners for Her Majesty’s Revenue and Customs may by regulations—
modify Chapters 2 and 3 of Part 15 of ITA 2007 (deduction of income tax on interest payments at source) in relation to interest paid or credited in respect of a relevant dormant asset, and
provide that, for the purposes of Chapter 2 of Part 4 of ITTOIA 2005 (charge to income tax on interest), such interest is to be treated as not being paid until the time (if any) at which the balance of the dormant asset is paid out following a claim made by virtue of—
section 1(2)(b) or 2(2)(b) of the 2008 Act, or
section 2(2)(b), 5(2)(b), 5(3)(b), 8(2)(b), 12(2)(b), 14(2)(b) or 22(1) of the 2022 Act.
provide that, for the purposes of Chapter 2 of Part 4 of ITTOIA 2005 (charge to income tax on interest), such interest is to be treated as not being paid until the time (if any) at which the balance of the dormant account is paid out following a claim made by virtue of section 1(2)(b) or 2(2)(b) of the 2008 Act.
A relevant dormant asset is an asset in respect of which an amount is to be, or has been, transferred by an institution—
to an authorised reclaim fund, with the result that section 1 of the 2008 Act or section 2, 5, 8, 12 or 14 of the 2022 Act applies in relation to the asset, or
to an authorised reclaim fund and one or more charities, with the result that section 2 of the 2008 Act applies in relation to the asset.
Interest paid or credited in respect of a relevant dormant asset includes interest paid or credited by a person who administers the asset on behalf of an authorised reclaim fund after the balance has been transferred.
In this section—
Regulations under subsection (1) are to be made by statutory instrument.
A statutory instrument containing regulations under that subsection is subject to annulment in pursuance of a resolution of the House of Commons.
In TCGA 1992, after section 26 insert—
Subsection (7) comes into force in accordance with provision made by order made by the Treasury.
In section 701 of ITTOIA 2005 (investment plan regulations: general and supplementary), insert at the end—
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The Treasury may by regulations make provision about the treatment of participants in an offshore fund for the purposes of enactments relating to income tax, capital gains tax or corporation tax.
In subsection (1)—
“Exchequer account” means— and a reference to an Exchequer account includes a reference to the assets or liabilities of the account;
HODA 1979 is amended as follows.
Chapter 4 of Part 6 of ITA 2007 (VCTs: qualifying holdings) is amended as follows.
In section 171(2B) of FA 1993 (Lloyd’s underwriters etc: taxation of profits and allowance of losses), for “Section 397(1)” substitute “Sections 397(1) and 397A(2)”.
FA 2003 is amended as follows.
Section 76 of ICTA (expenses of insurance companies) is amended as follows. In subsection (7), in Step 2, omit “or” at the end of paragraph (b) and insert at the endor After subsection (9) insert— The amendments made by this paragraph have effect in relation to policies and contracts made on or after 9 October 2007. For the purposes of the operation of Step 6 in section 76(7) of ICTA in relation to an accounting period of an insurance company beginning on or after 9 October 2007, the adjusted amount of the acquisition expenses (within the meaning of section 86(6) of FA 1989) of the company for any earlier accounting period which is relevant for those purposes (a “relevant earlier accounting period”) is to be arrived at as if the amendments made by this paragraph had effect in relation to policies and contracts whenever made. And for those purposes, if the relevant earlier accounting period is a period which began before 1 April 2004 the amount which would be required to be deducted for that period at paragraph (d) of Step 2 by the subsection (9A) inserted by sub-paragraph (3) is to be treated as an amount to be deducted from the amount treated as the expenses of management of the company for that period under section 75 of ICTA as it applied in relation to the relevant earlier accounting period by virtue of section 76 of that Act. In the application of the subsection (9C) inserted by sub-paragraph (3) by virtue of sub-paragraph (6) the reference to Step 1 is to be read as a reference to section 75 (as it so applied).
“foreign business assets”, in relation to an insurance company, means assets, other than linked assets, which either— and for this purpose “foreign business” means overseas life assurance business or life reinsurance business to the extent that it consists of the reinsurance of overseas life assurance business; After that section insert— In ICTA— for “currency” substitute “business”. In section 432E of ICTA— omit “and foreign currency assets”. In paragraph 19(4)(b) of Schedule 7 to FA 2007, omit sub-paragraph (ii) (and the “and” before it). The amendments made by this paragraph have effect in relation to periods of account beginning on or after 1 January 2008. But an insurance company may, in its company tax return for an accounting period beginning on or after 1 January 2007 but before 1 January 2008, elect that the amendments made by this paragraph have effect in relation to that accounting period.
In section 210A of TCGA 1992 (ring fencing of losses), after subsection (10) insert—
In section 431 of ICTA (interpretative provisions relating to insurance companies), after subsection (2YA) insert— In section 755A(11C) of that Act (treatment of chargeable profits and creditable tax apportioned to company carrying on life assurance business), omit paragraph (b) and the “and” before it. In section 85A of FA 1989 (excess adjusted Case I profits), for subsections (6) and (7) substitute— In section 88 of that Act (meaning of “policy holders' share of profits”), for subsections (3) to (3B) substitute— Omit— The amendments made by this paragraph have effect in relation to accounting periods beginning on or after 1 January 2008.
In section 434A of ICTA (computation of losses and limitation on relief), insert at the end— The amendment made by sub-paragraph (1) has effect in relation to accounting periods beginning on or after 1 January 2008.
In section 56 of ICTA (transactions in deposits and debts), omit subsection (4) (which relates to section 76(2) computations and is spent). In consequence of sub-paragraph (1), in section 164 of FA 1996, omit subsection (4) (which amends section 56(4) of ICTA).
Section 61 of CAA 2001 (disposal events and disposal values) is amended as follows. In the second column of the Table in subsection (2), in the entry relating to item 5A, at the end insert “(“the relevant date”)”. After subsection (5) insert— After subsection (7) insert— The amendments made by sub-paragraphs (2) and (3) have effect in relation to leases granted on or after 13 December 2007. The amendment made by sub-paragraph (4) has effect in relation to leases granted on or after 12 March 2008.
CAA 2001 is amended as follows.
FA 2001 is amended as follows. In Schedule 19 (insertion of Part 4A of CAA 2001: consequential amendments), omit paragraph 4. In Schedule 21 (capital allowances: minor amendments), omit paragraphs 5 and 6.
In Schedule 1 to ITTOIA 2005 (consequential amendments), omit paragraphs 552 to 558.
In FA 2008, omit—
section 85 (phasing out of allowances before abolition),
section 86 (qualifying enterprise zone expenditure: transitional provision), and
section 87 (which inserts section 313A of CAA 2001).
In paragraph 17A(1) of that Schedule (withdrawal of money etc from partnership after transfer of chargeable interest), after paragraph (c) insert—
CAA 2001 is amended as follows.
TMA 1970 is amended as follows.
TCGA 1992 is amended as follows.
ITA 2007 is amended as follows.
In the heading of section 13AB, for “misuse of kerosene” substitute “ contravention of section 13AA ”.
In section 303 (meaning of “excluded activities”)—
in subsection (1), after paragraph (i) insert—, and
in subsection (2), after paragraph (d) insert—.
Section 152 (non-resident companies: transactions carried out through broker, investment manager or Lloyd’s agent) is amended as follows. The existing provision of section 152 becomes subsection (1) of that section. After subsection (1) insert—
Section 85 of FA 1989 (charge of certain receipts of BLAGAB under Case VI) is amended as follows. In subsection (2), for paragraph (b) substitute—. In paragraph (f) of that subsection, after “Scheme” insert “, or from another insurance company,”. After that subsection insert— The amendments made by this paragraph have effect in relation to accounting periods beginning on or after 9 October 2007.
In section 755A of ICTA (treatment of chargeable profits and creditable tax apportioned to life assurance company), after subsection (11B) insert—
In section 1 (capital allowances), omit—
subsection (2)(b) and (c) (entitlement to industrial and agricultural buildings allowances), and
in subsection (3) “, industrial buildings or agricultural buildings,”.
In paragraph 26(8) of that Schedule (application of disadvantaged areas relief), in the substituted paragraph (10)—
in sub-paragraph (2), insert at the end “(subject to any election under paragraph 12A)”, and
in sub-paragraph (4), insert at the end “(subject to any election under paragraph 12A)”.
In section 26 (demolition costs), in subsection (5), for “abandonment expenditure” substitute “general decommissioning expenditure”.
In section 28C(5)(a) (time limit for determination of tax where no return delivered and self-assessment superseding determination), for “five years” substitute “3 years”.
In section 203(2) (claims in respect of certain capital losses), for “6 years” substitute “4 years”.
In section 40(1)(a) (election for transfer of blind person’s allowance), for “on or before the fifth anniversary of the normal self-assessment filing date for” substitute “not more than 4 years after the end of”.
After that section insert—
After section 307 insert—
Schedule 26 (non-resident companies: transactions through broker, investment manager or Lloyd’s agent) is amended as follows. In paragraph 3(2)— Omit paragraph 4(5). After paragraph 5 insert—
The amendments made by paragraphs 13 and 14 have effect in relation to accounting periods beginning on or after 1 January 2008 and ending on or after 12 March 2008.
In section 2(3) (general means of giving effect to capital allowances), omit—
“sections 352 to 355 (industrial buildings allowances);”, and
“sections 391 and 392 (agricultural buildings allowances);”.
In section 57 (available qualifying expenditure), in the entry in subsection (2) relating to section 165(3) of CAA 2001, for “abandonment expenditure” substitute “general decommissioning expenditure”.
In section 29(4) (assessment where loss of tax discovered), for “is attributable to fraudulent or negligent conduct on the part of” substitute “was brought about carelessly or deliberately by”.
In section 253(4A) (claims for relief for loans to traders)—
in paragraph (a), for “on or before the fifth anniversary of the 31st January next following” substitute “not more than 4 years after the end of”, and
in paragraph (b), for “6 years” substitute “4 years”.
In section 46(6)(b) (marriages and civil partnerships on or after 5 December 2005: election specifying person entitled to relief), for “on or before the fifth anniversary of the normal self-assessment filing date for” substitute “not more than 4 years after the end of”.
In section 3 (claims for capital allowances), omit subsections (4)(b) and (5)(b).
Section 164 (abandonment expenditure incurred before cessation of ring fence trade) is amended as follows. In the heading, for “abandonment expenditure” substitute “general decommissioning expenditure”. In subsections (1), (2)(a), (3)(a), (4)(a) and (5), for “abandonment expenditure” substitute “general decommissioning expenditure”.
In section 30B(5) (amendment of partnership statement where loss of tax discovered), for “is attributable to fraudulent or negligent conduct on the part of” substitute “was brought about carelessly or deliberately by”.
In section 279(5) (claims in respect of delayed remittance of gain from disposal of foreign assets)—
in paragraph (a), for “at any time after the fifth anniversary of the 31st January next following” substitute “more than 4 years after the end of”, and
in paragraph (b), for “6 years” substitute “4 years”.
In section 53(4)(a) (notice in respect of transfer of unused relief), for “on or before the fifth anniversary of the normal self-assessment filing date for” substitute “not more than 4 years after the end of”.
Section 186 (fixture on which an industrial buildings allowance has been made) is amended as follows. In subsection (1)(a) and (b), for “is” substitute “was”. In subsection (3)— After that subsection insert— In subsection (5), for “in Part 3” substitute “for the purposes of Part 3 immediately before its repeal by section 84 of the Finance Act 2008.”
Section 165 (abandonment expenditure within 3 years of ceasing ring fence trade) is amended as follows. In the heading, for “abandonment expenditure” substitute “general decommissioning expenditure”. In subsection (1)(b) and (c), for “abandonment expenditure” substitute “general decommissioning expenditure”. In subsection (3)— In subsection (4), in the definition of “the relevant abandonment cost”—
In section 33(1) (claim for error or mistake), for “not later than five years after the 31st January next following” substitute “not more than 4 years after the end of”.
In section 155 (claim for loss relief against miscellaneous income), in each of subsections (1) and (2), for “on or before the fifth anniversary of the normal self-assessment filing date for” substitute “not more than 4 years after the end of”.
In section 443(3) (disposal values and disposal events), omit “or 3” and “and industrial building allowances”.
In section 33A(2) (error or mistake in partnership return), for “not later than 31st January of Year 6” substitute “not more than 4 years after the end of the year of assessment in question, or in which the relevant period ends,”.
Section 237 (EIS relief: time limits for assessments) is amended as follows. In subsection (1)— In subsection (3)—
In section 448(3) (additional VAT rebate generates disposal value), omit “or 3” and “and industrial buildings allowances”.
Section 34 (ordinary time limit for assessments) is amended as follows. In subsection (1), for “not later than five years after the 31st January next following” substitute “not more than 4 years after the end of”. Accordingly, in the heading, for “six years” substitute “4 years”.
In section 372 (withdrawal or reduction of community investment tax relief), insert at the end—
In section 537 (contribution allowances), omit “, 3, 4” in—
subsection (1),
subsection (2)(b)(ii), and
the heading.
In section 35 (time limit: income received after year for which it is assessable), for “within six years after” substitute “not more than 4 years after the end of”.
In section 668(7) (claim for relief for unremittable transfer proceeds), for “on or before the fifth anniversary of the normal self-assessment filing date for” substitute “not more than 4 years after the end of”.
Omit section 539 (contribution allowances: industrial buildings).
Section 36 (fraudulent or negligent conduct) is amended as follows. For subsection (1) substitute— In subsection (2)— In subsection (3), after “(1)” insert “or (1A)”. In subsection (4), for “subsection (1)” substitute “subsections (1) and (1A)”. Accordingly, for the heading substitute “Loss of tax brought about carelessly or deliberately etc”.
In section 669(4) (claim for relief for unremittable transfer proceeds: section 630 profits), for “on or before the fifth anniversary of the normal self-assessment filing date for” substitute “not more than 4 years after the end of”.
Omit section 540 (contribution allowances: agricultural buildings).
In section 37A (effect of assessment where allowances transferred), for the words from “for the purpose” to “conduct” substitute “in a case falling within section 36(1) or (1A)”.
In section 542(1) (effect of transfers of trade on contribution allowances), for “Parts 3, 4 and 5” substitute “Part 5”.
Section 40 (assessment on personal representatives) is amended as follows. In subsection (1), for “beyond the end of the period of three years beginning with the 31st January next following” substitute “more than 4 years after the end of”. In subsection (2)—
In section 546 (introduction to Chapter 2 of Part 12), omit paragraph (b).
In section 43(1) (time limit for making claims), for “five years after the 31st January next following” substitute “4 years after the end of”.
In section 564 (application of procedure in section 563)—
in subsection (1), for “3” substitute “3A”, and
omit subsection (3).
In section 43A(1)(b) (further assessments: claims etc), for the words from “attributable” to the end substitute “brought about carelessly or deliberately by that person or by someone acting on behalf of that person.”
In section 567(1) (sales treated as for alternative amounts), omit “3,” and “4,”.
In section 43C(1)(b) (consequential claims etc), for “attributable to fraudulent or negligent conduct on the part of” substitute “brought about carelessly or deliberately by”.
In section 569 (election to treat sale as being for an alternative amount), omit—
in subsections (3)(a) and (5)(a), “3 or”, and
in subsection (5), “319 (building not an industrial building, etc throughout) or”.
In section 118 (interpretation) insert at the end—
In section 570 (elections: supplementary), omit—
in subsection (1), “, 4”, and
in subsection (3), “3,”.
In section 570A(1) (avoidance affecting proceeds of balancing event), omit “3,” and “4,”.
In section 573(1) (transfers treated as sales), omit “3,” and “4,”.
Part 2 of Schedule 1 (index of defined expressions) is amended as follows. Omit the entries relating to the following defined expressions— In the entry relating to “sale, transfers under Parts 3, 3A, 4, 4A and 10 treated as”, omit “3,” and “4,”.
In Schedule 3 (transitional provision and savings), omit—
paragraphs 56 to 83, and
paragraph 110.
Regulations under subsection (1) are to be made by statutory instrument.
The first regulations under subsection (1) may not be made unless a draft of the instrument containing them has been laid before, and approved by a resolution of, the House of Commons.
Any other statutory instrument containing regulations under subsection (1) is subject to annulment in pursuance of a resolution of the House of Commons.
In Chapter 5 of Part 17 of ICTA (offshore funds)—
in section 756A (general definition of offshore fund), omit subsection (4),
in section 756B (treatment of umbrella funds)—
in subsection (1), omit the words following paragraph (b), and
omit subsection (3),
in section 756C (treatment of funds comprising more than one class of interest)—
in subsection (2), omit paragraph (b) (and the “or” before it), and
omit subsection (3),
omit sections 757 to 763 (further provision about offshore funds), and
omit Schedules 27 and 28 (distributing funds and computation of offshore gains).
In consequence of subsection (6), omit—
paragraph 12 of Schedule 13 to FA 1988,
paragraphs 10 and 11 of Schedule 14 to FA 1990,
paragraph 14(43) to (45), (47) to (49) and (63) of Schedule 10 to TCGA 1992,
section 134(4) of FA 1995,
in paragraph 6 of Schedule 28 to FA 1996, “and in paragraph 5(5) of Schedule 27 to that Act”,
paragraph 4(5) and (6) of Schedule 9 to FA 2002,
paragraphs 1(1), 2(1), 4, 5, 6(3) to (6), 7 to 9, 14(2), (3), (5)(b) and (7), 15 and 16(1) of Schedule 26 to FA 2004,
paragraphs 308, 309 and 350(4) of Schedule 1 to ITTOIA 2005,
section 23 of F(No.2)A 2005,
paragraph 47(1) of Schedule 12 to FA 2006,
paragraphs 179(2)(a) and (b), 180 and 181 of Schedule 1 to ITA 2007, and
in this Act, paragraphs 92 to 94 of Schedule 7 and paragraph 30 of Schedule 17.
Subsections (6) and (7) come into force on such day as the Treasury may appoint by order made by statutory instrument.
An order under subsection (8)—
may appoint different days for different purposes, and
may include savings.
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Regulations under section 41 may, in particular—
make provision for an offshore fund, or a trustee or officer of an offshore fund, to make elections relating to the treatment of participants in the offshore fund for the purposes of income tax, capital gains tax or corporation tax,
make provision about— by offshore funds or trustees or officers of offshore funds, and
the provision of information to Her Majesty’s Revenue and Customs,
the provision of information to participants,
the preparation of accounts, and
the keeping of records,
make other provision about the administration of offshore funds.
Regulations under section 41 may, in particular, make special provision about the treatment of participants in—
an umbrella fund (within the meaning of section 756B of ICTA), and
an offshore fund which comprises a class of interest in another fund (within the meaning of section 756C of ICTA).
Regulations under section 41 may include provision consequential on the repeals made by that section.
Regulations under section 41 may, in particular—
provide for Her Majesty’s Revenue and Customs to exercise a discretion in dealing with any matter,
make provision by reference to standards or other documents issued by any person,
modify an enactment (whenever passed or made),
make different provision for different cases or different purposes, and
make incidental, consequential, supplementary or transitional provision.
Regulations under section 41 may, in particular, make provision having effect—
in the case of provision relating to income tax or capital gains tax, in relation to the tax year current on the day on which the regulations are made, and
in the case of provision relating to corporation tax, in relation to accounting periods current on that day.
In this section—
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This paragraph applies where, by virtue of section 116(10)(b), a chargeable gain is deemed to accrue to an individual on a disposal made on or after 6 April 2008 (a “relevant disposal”) by reason of a relevant transaction to which the individual was a party taking place before that date. Subject as follows, Chapter 3 of Part 5 (as inserted by this Schedule) has effect as if— In sub-paragraph (2) “the first relevant disposal” means the first disposal made on or after 6 April 2008 on which a chargeable gain is deemed to accrue to the individual by reason of the relevant transaction. Where entrepreneurs' relief is claimed by virtue of this paragraph— is to be treated as constituting the amount resulting under section 169N(1). Accordingly (but subject as follows), the amount of the chargeable gain which is deemed to accrue by virtue of section 116(10)(b) on the relevant disposal is that arrived at under section 169N(1) and (2) (in accordance with sub-paragraph (4)). The amount of the chargeable gain which is deemed to accrue by virtue of section 116(10)(b) on the relevant disposal is the amount specified in sub-paragraph (7)— The amount referred to in sub-paragraph (6) is the appropriate proportion of the amount in sub-paragraph (5); and “the appropriate proportion” means the proportion of the new asset, or of so much of the new asset as was not disposed of before 6 April 2008, which is disposed of on the relevant disposal. Section 169N(3) to (4B) is to apply to the deemed chargeable gain found in accordance with sub-paragraphs (5) to (7). In this paragraph— “new asset”, “old asset”, and “relevant transaction”, have the meaning given by section 116. References in this paragraph to any provision are to be read as they would be if this paragraph formed part of TCGA 1992.
The amendments made by this Part of this Schedule come into force on 1 November 2008.
Schedule 13 to FA 2002 (vaccine research relief) is amended as follows. In each of the following provisions, for “50%” substitute “40%”— In each of the following provisions, for “150%” substitute “140%”— The amendments made by this paragraph have effect in relation to expenditure incurred on or after such day as the Treasury may by order appoint. The Treasury may appoint a day before the day on which this Act is passed, but not one before 1 April 2008.
This paragraph applies where— The non-trading credit (“NTC”) is to be treated as increased by the relevant amount and the relevant amount is to be set off against corporation tax assessable on the company for the accounting period. The relevant amount is— where AR is the appropriate rate for the accounting period, that is— if a single rate of tax under section 88(1) of FA 1989 (lower corporation tax rate on certain insurance company profits) is applicable in relation to the accounting period, that rate, and if more than one such rate of tax is applicable in relation to the accounting period, the average of those rates over the accounting period. In sub-paragraph (1) “BLAGAB contract” means a contract forming part of basic life assurance and general annuity business of an insurance company but not part of business which is exempt from corporation tax under section 460 of ICTA (friendly society business and former friendly society business). For the purposes of sub-paragraph (1) the contract is subject to a relevant comparable EEA tax charge if the contract forms part of the business of a company (other than the relevant company) to which a relevant comparable EEA tax charge has applied. For the purposes of sub-paragraph (5) a relevant comparable EEA tax charge has applied to a company if—
In ICTA, after section 95 insert— The amendment made by sub-paragraph (1) has effect in relation to distributions made on or after 1 April 2008.
Chapter 1 of Part 12 of ICTA (insurance companies) is amended as follows. In section 431(2ZB) and (2ZC) (interpretative provisions), insert “or” at the end of paragraph (b) and omit paragraph (d) and the “or” before it. In section 432A (apportionment of income and gains), omit— In section 432B (apportionment of receipts brought into account), omit subsections (4) to (12). The amendments made by this paragraph have effect in relation to periods of account beginning on or after 1 January 2007.
In section 434A(3) of ICTA (limitation on relief), after paragraph (a) (before the “or” at the end) insert—. The amendment made by sub-paragraph (1) has effect in relation to periods of account beginning on or after 1 January 2008 and ending on or after 12 March 2008.
In section 12AE(2) of TMA 1970 (partnership returns: alternative methods for bringing amounts into charge to tax), for “84(2) or (3)” substitute “84(1)”.
In paragraph 4(1A) of Schedule 25 to ICTA (controlled foreign companies), for “436, 439B or 441” substitute “436A”. The amendment made by sub-paragraph (1) has effect in relation to accounting periods beginning on or after 1 January 2008.
In section 70H of CAA 2001 (lessee: requirement for tax return treating lease as long funding lease), after subsection (1) insert— The amendment made by sub-paragraph (1) has effect in relation to leases entered into on or after 13 December 2007.
Section 74A of ITA, and the other provisions inserted into that Act by this Schedule so far as relating to that section, have effect in relation to any loss made by an individual in the tax year 2007-08 or any subsequent tax year. But those provisions do not have effect in relation to a loss made by an individual in a tax year the basis period for which ended before 12 March 2008. If the basis period for the tax year in which a loss is made by an individual begins before 12 March 2008 and ends on or after that date (a “straddling basis period”), the amount of that loss for the purposes of section 74A of ITA 2007 is— “The pre-announcement loss” is determined as follows. Calculate the profits or losses of the straddling basis period, but without regard to capital allowances and qualifying film expenditure (within the meaning of section 74D of ITA 2007). If that calculation produces a loss, apportion the loss produced by that calculation to the part of the straddling basis period which falls before 12 March 2008 in proportion to the number of days in that part. Calculate so much of the loss of the straddling basis period as derives from relevant pre-announcement capital expenditure. The pre-announcement loss is the sum of— For the purposes of this paragraph the amount of the loss of the straddling basis period that derives from relevant pre-announcement capital expenditure is determined on a just and reasonable basis. In this paragraph “relevant pre-announcement capital expenditure” means— and for this purpose “an unconditional obligation” means an obligation which may not be varied or extinguished by the exercise of any right conferred on the individual in question (whether or not under the contract).
CAA 2001 is amended as follows.
Despite the repeal of Part 3 of CAA 2001 by section 84, Chapter 2 of that Part continues to have effect for the purposes of paragraph (a) of item 7 in List B in section 22(1) of that Act (structures which are not plant and machinery).
This paragraph applies in relation to section 592 of ICTA (which before its repeal made provision about exempt approved pension schemes), where that section had effect as amended by the 2004 Order. Section 592 is to be treated as having had effect as if after subsection (4) (as substituted by the 2004 Order) there had been inserted— But the words “Part 2 of ITTOIA 2005 or” in subsection (4A)(a) are to be treated as having had effect only in relation to times in relation to which (by virtue of paragraph 253(3) of Schedule 1 to ITTOIA 2005) they had effect in section 592(4)(a). In this paragraph “the 2004 Order” means the Finance Act 2004, Sections 38 to 45 and Schedule 6 (Consequential Amendment of Enactments No. 2) Order 2004 (S.I. 2004/3269).
In section 12(3) (secrecy), for the words from “and of section 20(3)” to the end substitute “and of Schedule 36 to the Finance Act 2008 (powers of officers of Revenue and Customs to obtain information and documents and inspect business premises)”.
In section 110ZA of the Social Security Administration Act 1992 (Class 1, 1A, 1B or 2 contributions: powers to call for documents etc), for subsections (1) and (2) substitute—
Schedule 11 to VATA 1994 is amended as follows. In paragraph 7 (furnishing information and producing documents), omit sub-paragraphs (2) to (9). In paragraph 10 (entry and search of premises and persons), omit sub-paragraphs (1) to (2A).
In section 25 of the Tax Credits Act 2002 (payments of working tax credit by employers), omit subsections (3) and (4).
In paragraph 1(1)(b) of Schedule 5B (enterprise investment scheme: re-investment), after “164FA,” insert “ section 169N, ”.
But section 13AC(2) of HODA 1979 does not apply to kerosene upon which a rebate under section 11(1)(c) of that Act was allowed before that date if it was supplied for use as fuel for an aircraft before that date.
Where the relevant company brings into account credits and debits in respect of the investment life insurance contract on the basis of fair value accounting, the relevant amount under paragraph 3 is determined as if for “NTC” in the formula in sub-paragraph (3) of that paragraph there were substituted “PC”. For this purpose “PC” is the profit from the contract, that is any amount by which— If the related transaction is an assignment (or, in Scotland, assignation) or surrender of only part of the rights conferred by the contract, sub-paragraph (2) has effect as if paragraph (b) of that sub-paragraph referred to the relevant fraction of the fair value of the contract when the contract was made or, if the contract was made before the beginning of the first accounting period of the company beginning on or after 1 April 2008, at the beginning of that period. For this purpose the relevant fraction is— where— C is the amount payable as a result of the related transaction, and FVC is the fair value of the contract immediately before the related transaction.
Section 74B of ITA, and the other provisions inserted into that Act by this Schedule so far as relating to that section, have effect in relation to a loss arising directly or indirectly in consequence of, or otherwise in connection with, relevant tax avoidance arrangements made on or after 12 March 2008. But those provisions do not have effect if the arrangements were made pursuant to an unconditional obligation in a contract made before that date; and for this purpose “an unconditional obligation” means an obligation which may not be varied or extinguished by the exercise of any right conferred on the individual in question (whether or not under the contract).
And section 14E(2) of that Act does not apply to heavy oil or bioblend upon which a rebate was allowed before that date if it was supplied for use as fuel for a craft before that date.
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Schedule 17 contains provisions relating to insurance companies etc.
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In ITEPA 2003, after section 100 insert—
The amendment made by subsection (1) is treated as always having had effect.
Section 145 of ICTA (living accommodation provided for employee) is to be treated as never having applied to living accommodation outside the United Kingdom provided in circumstances in which, had it been provided on or after 6 April 2003, section 100A(1) of ITEPA 2003 would cause Chapter 5 of Part 3 of ITEPA 2003 (taxable benefits: living accommodation) not to apply.
In-work credit ETA 1973 Section 2 ETA(NI) 1950 Section 1 In-work emergency discretion fund payment ETA 1973 Section 2 In-work emergency fund payment ETA(NI) 1950 Section 1 Return to work credit ETA 1973 Section 2 ETA(NI) 1950 Section 1
ETA(NI) 1950 The Employment and Training Act (Northern Ireland) 1950 (c. 29 (N.I.)) ETA 1973 The Employment and Training Act 1973 (c. 50)
The amendments made by this section have effect for the tax year 2008-09 and subsequent tax years.
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In consequence of the amendment made by subsection (1), omit—
in FA 2003, section 138(3), and
in FA 2006, section 59(6).
The amendments made by this section have effect for the tax year 2008-09 and subsequent tax years.
In section 239(3) of ITEPA 2003 (exemption in respect of payments and benefits connected with taxable cars and vans subject to section 149), insert at the end “ or section 160 (benefit of van fuel treated as earnings). ”
In section 269(2) of that Act (exemption in respect of non-cash vouchers and credit-tokens where benefits or money obtained in connection with taxable car or subject to section 149)—
for “, but see section 149(3)” substitute “ or van, but see section 149(3) or section 160(3) ”, and
after “earnings)” insert “ or section 160 (benefit of van fuel treated as earnings) ”.
In section 149AA of TCGA 1992 (restricted and convertible employment-related securities), after subsection (6) insert—
ITEPA 2003 is amended as follows.
In section 428(2)(b) as originally enacted (conditional interests in shares: amount of charge), insert at the end “ (other than an amount of exempt income) ”.
In section 428(7)(b) (restricted securities: amount of charge), insert at the end “ (other than an amount of exempt income) ”.
In section 446T(3)(b) (securities acquired for less than market value: amount of charge), insert at the end “ (other than an amount of exempt income) ”.
In section 480(5)(a) (securities options: deductible amounts), insert at the end “ (other than an amount of exempt income) ”.
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The amendment made by subsection (1) has effect in relation to disposals made on or after 12 March 2008.
The amendment made by subsection (3) has effect in relation to events within section 427(1)(a) or (b) of ITEPA 2003 (as originally enacted) occurring on or after that date.
The amendments made by subsections (4) and (6) have effect in relation to chargeable events occurring on or after that date.
The amendment made by subsection (5) has effect in relation to employment-related securities acquired (or treated as acquired) on or after that date.
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In ICTA, omit sections 138 and 139 (share acquisitions by directors and employees: shares acquired before 26 October 1987).
In ITEPA 2003—
in section 418 (other related provisions), omit subsection (4), and
in Schedule 7 (transitionals and savings), omit paragraph 57.
The amendments made by this section have effect for the tax year 2008-09 and subsequent tax years.
In ITEPA 2003, after section 297A insert—
The amendment made by subsection (1) has effect in relation to payments made on or after 1 April 2008.
Section 291(2) of ITEPA 2003 (termination payments to MPs and others ceasing to hold office) is amended as follows.
In paragraph (ea), omit “or”.
At the end of paragraph (f) insert, or
The amendments made by this section have effect in relation to payments made on or after 6 April 2008.
Schedule 19 contains provision for the Commissioners for Her Majesty's Revenue and Customs to make payments to charities which receive donations under the gift aid scheme.
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Paragraph 35 of Schedule 16 to FA 2002 (community investment tax relief) is amended as follows.
But if the investor is a bank, the investor does not receive value from the CDFI when the CDFI makes a deposit with the investor in the course of its ordinary banking arrangements.
“bank” has the meaning given by section 840A of the Taxes Act 1988;
The amendments made by this section are treated as always having had effect.
Schedule 20 contains provision about leases of plant or machinery.
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Schedule 10 to FA 2006 (sale etc of lessor companies etc) is amended as follows.
But if at the end of the relevant day the other company is the only person carrying on the business, the expense—
In paragraph 32 (amount of expense)—
in sub-paragraph (2), for “The” substitute “Except in a case where sub-paragraph (3A) applies, the”, and
If paragraph 23(4A) applies (business carried on by the other company alone), the amount of the expense of the other company is equal to the amount of the income.
In paragraph 39 (relief for certain expenses otherwise giving rise to carried forward loss)— and, accordingly, in the heading before that paragraph, after “3” insert “, 23(4A)”.
This paragraph also applies if—
in sub-paragraph (2), after “3” insert “, 23(4A)”, and
in sub-paragraph (4), after “3” insert “, 23(4A)”,
The amendments made by this section are treated as always having had effect.
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Section 798 of ICTA (limits on foreign tax credit: trade income) is amended as follows.
After subsection (1) insert—
In subsection (3), after “income” insert “in respect of which the credit is to be allowed”.
The amendments made by this section have effect in relation to a credit for foreign tax which relates to—
a payment of foreign tax on or after 6 April 2008, or
income received on or after that date in respect of which foreign tax has been deducted at source.
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In section 59 of TCGA 1992 (partnerships), insert at the end—
In section 858 of ITTOIA 2005 (resident partners and double taxation agreements), insert at the end—
The amendments made by subsections (1) to (3) are treated as always having had effect.
For the purposes of the predecessor provisions, the members of a partnership are to be treated as having included, at all times to which those provisions applied, a person entitled to a share of income or capital gains of the partnership.
“The predecessor provisions” means—
section 153(4) and (5) of the Income and Corporation Taxes Act 1970 (c. 10) (as it had effect under section 62(2) of F(No.2)A 1987), and
sections 112(4) to (6) and 115(5) of ICTA.
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In ICTA, after section 815A insert—
The amendment made by subsection (1) has effect in relation to income arising on or after 12 March 2008.
Schedule 21 contains provision restricting relief for losses made by individuals who, otherwise than in partnership, carry on trades in a non-active capacity.
In section 103B(2) of ITA 2007 (meaning of “non-active partner” for purposes of provisions restricting trade loss relief), for “carried on for the purposes of the trade” substituteof the trade and those activities are carried on—
The amendment made by subsection (1) has effect in relation to relevant periods ending on or after 12 March 2008.
Schedule 22 contains provision about avoidance involving financial arrangements.
Schedule 23 contains anti-avoidance provisions about manufactured payments.
The amendments made by that Schedule have effect in relation to manufactured payments (including deemed manufactured payments) made (or treated as made) on or after 31 January 2008.
Chapter 4 of Part 17 of ICTA (controlled foreign companies) is amended as follows.
In section 747 (imputation of chargeable profits of controlled foreign companies)—
in subsection (6), before “and” at the end of paragraph (a) insert—, and
after that subsection insert—
In section 755D (meaning of control)—
after subsection (1) insert—, and
in subsection (2), after “above” insert “ or satisfy subsection (1A) above ”.
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in sub-paragraph (2), for “sub-paragraph (4)” substitute “sub-paragraphs (4) and (4A)”, and
Sub-paragraph (2) does not apply where the distribution condition is satisfied in relation to the relevant accounting period, but— The income within this sub-paragraph is— Where there is more than one settlor or beneficiary in relation to the settlement mentioned in sub-paragraph (4B)(a), the income is to be apportioned between the company and the other settlors or beneficiaries on a just and reasonable basis. In sub-paragraph (4B)(b) “partnership” includes an entity established under the law of a country or territory outside the United Kingdom of a similar character to a partnership; and “partner” is to be read accordingly.
For the purposes of this paragraph, the gross income of a holding company or a superior holding company during an accounting period includes— Where there is more than one settlor or beneficiary in relation to the settlement mentioned in sub-paragraph (5C)(a), the income is to be apportioned between the company and the other settlors or beneficiaries on a just and reasonable basis. In sub-paragraph (5C)(b) “partnership” includes an entity established under the law of a country or territory outside the United Kingdom of a similar character to a partnership; and “partner” is to be read accordingly.
The amendments made by subsections (2) and (5) have effect in relation to income accruing on or after 12 March 2008.
The amendments made by subsection (3) have effect for determining whether, at any time on or after 12 March 2008, a company is controlled by persons resident in the United Kingdom for the purposes of Chapter 4 of Part 17 of ICTA.
The amendments made by subsection (4) have effect in relation to any dividend paid on or after 12 March 2008.
In relation to an accounting period of a company beginning before, and ending on or after, 12 March 2008 (“the straddling period”), the amendments made by this section have effect as if, for the purposes of Chapter 4 of Part 17 of ICTA, 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.
The company's chargeable profits for the straddling period, and its creditable tax (if any) for that period, are to be apportioned to the two separate accounting periods on a just and reasonable basis.
In this section “accounting period”, “chargeable profits” and “creditable tax” have the same meaning as in Chapter 4 of Part 17 of ICTA.
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In Schedule 29 to FA 2002 (gains and losses of a company from intangible fixed assets), after paragraph 95 (meaning of “related party”) insert—
Subject to subsections (4) and (5), the amendment made by subsection (1) has effect in relation to the debits and credits to be brought into account for accounting periods beginning on or after 12 March 2008.
For the purposes of subsection (2), an accounting period beginning before, and ending on or after, that day is treated as if so much of that period as falls before that day, and so much of that period as falls on or after that day, were separate periods.
The amendment made by subsection (1) does not have effect for the purpose of determining whether a person was a related party in relation to a company at a time before 12 March 2008.
That amendment has effect, for the purposes of paragraph 92 of Schedule 29 to FA 2002 as it applies otherwise than for determining the debits and credits to be brought into account under that Schedule, in relation to any transfer of an asset made on or after 12 March 2008.
In Part 17 of ICTA (tax avoidance)—
in section 704 (cancellation of corporation tax advantages: the prescribed circumstances), omit—
paragraph B (and the “OR” after it), and
in paragraph C(1), paragraph (b) (and the “or” before it),
in section 709 (definitions), omit subsection (2A),
omit sections 731 to 735 (purchase and sale of securities), and
omit section 736 (company dealing in securities: distribution materially reducing value of holding).
In Part 13 of ITA 2007 (tax avoidance)—
in section 684(2) (person liable to counteraction of income tax advantage), omit the entry relating to section 687 of that Act,
omit section 687 (deductions from profits obtained following distribution or dealings), and
in section 688 (receipt of consideration representing company's assets, future receipts or trading stock), omit—
in subsection (3), paragraph (b) (and the “or” before it), and
subsections (4), (5) and (9).
In consequence of the amendments made by subsection (1)(a) and (b), omit—
in FA 1997, section 73, and
in ITA 2007, paragraph 155(4) and (5) and (6)(b) of Schedule 1.
In consequence of the amendments made by subsection (1)(c) and (d), omit—
in ICTA, sections 343(5) and 738,
in FA 1990, section 53,
in FA 1991, sections 55 and 56,
in TCGA 1992, paragraph 14(40) and (41) of Schedule 10,
in FA 1994, paragraph 17 of Schedule 16,
in FA 1995, section 81,
in FA 1996—
paragraph 36 of Schedule 20, and
paragraph 9 of Schedule 38,
in FA 1997, section 77,
in F(No.2)A 1997—
section 26, and
paragraph 14 of Schedule 6,
in FA 2003, paragraph 6 of Schedule 38,
in ITTOIA 2005, paragraphs 302 and 303 of Schedule 1,
in ITA 2007—
in section 64(8), paragraph (f) (and the “and” before it),
in section 72(5), paragraph (f) (and the “and” before it),
in section 448(3), “and section 451”,
in section 449(3), “and section 451”,
section 451,
in section 505, in subsection (4) “and section 506” and, in subsection (5) “and in section 506”,
section 506, and
paragraphs 167 to 170 of Schedule 1, and
in FA 2007, paragraph 6 of Schedule 14.
The amendments made by subsections (1)(a) and (b), (2) and (3) have effect in relation to transactions in securities entered into on or after 1 April 2008.
The amendment made by subsection (1)(c) has effect in relation to cases where the purchase by the first buyer (within the meaning of section 731(2) of ICTA) is made on or after that date.
The amendment made by subsection (1)(d) has effect in relation to distributions made on or after that date.
The amendments made by subsection (4) have effect in accordance with subsections (6) and (7).
In section 685A of ITTOIA 2005 (settlor-interested settlements), after subsection (5) insert—
In section 1012(4) of ITA 2007 (relationship between rules on highest part of total income), after the entry relating to section 465A of ITOIA 2005 insert— “ section 685A(5A) of ITTOIA 2005 (payments from trustees of settlor-interested settlements to be treated as highest part of total income), ”.
The amendments made by this section have effect for the tax year 2006-07 and subsequent tax years.
In section 13(2) of ITA 2007 (income charged at dividend upper rate: individuals)—
omit “and” at the end of paragraph (a), and
at the end of paragraph (b) insert, and
The amendments made by subsection (1) have effect for the tax year 2008-09 and subsequent tax years.
In section 964 of ITA 2007, omit subsection (5) (sums representing income tax deducted from annual payments not to be taken into account for the purpose of calculating amounts to be paid on account of income tax).
The repeal made by subsection (1) has effect for the purpose of calculating the amount of any payments to be made under section 59A of TMA 1970 on account of liability to income tax for the tax year 2008-09 and subsequent tax years.
In section 278 of ICTA (non-residents eligible for reliefs)—
in subsection (2)(a), omit “or an EEA national”, and
omit subsection (9).
In section 56(3) of ITA 2007 (non-UK residents eligible for personal allowances and tax reductions), before paragraph (a) insert—.
Accordingly, omit section 145 of FA 1996 (personal reliefs for non-resident EEA nationals).
The amendments made by this section have effect for the tax year 2008-09 and subsequent tax years.
Section 28 of CAA 2001 (thermal insulation of industrial buildings) is amended as follows.
In subsection (1)—
for “consisting of a trade” substitute “ other than an ordinary property business or an overseas property business ”,
for “an industrial” substitute “ a ”, and
for “the trade” substitute “ the qualifying activity ”.
In subsection (2), for “an industrial” substitute “ a ”.
After that subsection insert—
Omit subsection (3).
In the heading, omit “industrial”.
In section 23(2) of CAA 2001 (expenditure unaffected by sections 21 and 22), in the entry for section 28, omit “industrial”.
The amendments made by this section have effect—
for corporation tax purposes, in relation to expenditure incurred on or after 1 April 2008, and
for income tax purposes, in relation to expenditure incurred on or after 6 April 2008.
In CAA 2001, omit section 29 (expenditure on required fire precautions).
In section 23(2) of that Act, omit “section 29 (fire safety);”.
In consequence of the amendment made by subsection (1)—
in the Fire and Rescue Services Act 2004 (c. 21), omit paragraph 96 of Schedule 1, and
in the Fire and Rescue Services (Northern Ireland) Order 2006 (S.I. 2006/1254 (N.I. 9)), omit paragraph 24 of Schedule 3 (and the entry relating to CAA 2001 in Schedule 4).
The amendments made by subsections (1) and (2) have effect—
for corporation tax purposes, in relation to expenditure incurred on or after 1 April 2008, and
for income tax purposes, in relation to expenditure incurred on or after 6 April 2008.
In section 23 of CAA 2001 (expenditure unaffected by sections 21 and 22)—
in subsection (2), after the entry for section 33 insert— “ section 33A (integral features); ”, and
in subsection (4), in List C—
in item 2, omit “Electrical systems (including lighting systems) and cold water,”,
omit item 3, and
in item 6, for “Lifts, hoists, escalators and moving walkways.” substitute “ Hoists. ”
After section 33 of that Act insert—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In Chapter 4 of Part 2 of ITTOIA 2005 (rules restricting deductions from trade profits), after section 55 insert—
section 55A expenditure on integral features
The amendments made by this section have effect—
for corporation tax purposes, in relation to expenditure incurred on or after 1 April 2008, and
for income tax purposes, in relation to expenditure incurred on or after 6 April 2008.
Schedule 24 contains provision about an annual investment allowance in respect of certain qualifying expenditure on plant or machinery.
CAA 2001 is amended as follows.
Omit section 44 (expenditure incurred by small or medium-sized enterprises).
In consequence of the repeal made by subsection (2)—
in the list in section 39 (provisions under which first-year allowances available), omit the entry relating to section 44,
in the list in section 46(1) (provisions subject to general exclusions), omit the entry relating to section 44,
omit sections 47 to 49 (definition of small and medium-sized enterprises), and
in section 52(3) (first-year allowances) omit—
in the table, the entry relating to expenditure qualifying under section 44, and
the words from “In the case” to the end.
Omit the following provisions (which relate to provisions repealed by subsection (3))—
section 142 of FA 2004 (increase in first-year allowance under section 44 for 2004),
section 30 of FA 2006 (increase in first-year allowance under section 44 for 2006), and
section 37 of FA 2007 (increase in first-year allowance under section 44 for 2007).
The repeals made by subsections (2) and (3) have effect in relation to expenditure incurred on or after the relevant date.
But subsection (7) applies in relation to an additional VAT liability incurred on or after the relevant date which under section 235 of CAA 2001 is treated as qualifying expenditure.
If the original expenditure (within the meaning of that section) was first-year qualifying expenditure by virtue of section 44 of CAA 2001, Chapter 18 of Part 2 of that Act (additional VAT liabilities and rebates) applies to the additional VAT liability as if the provisions repealed by this section were not so repealed.
The relevant date is—
for corporation tax purposes, 1 April 2008, and
for income tax purposes, 6 April 2008.
CAA 2001 is amended as follows.
Omit sections 40 to 43 (first-year allowance for Northern Ireland expenditure incurred on or before 11 May 2002).
Omit section 45 (first-year allowance for ICT expenditure incurred on or before 31 March 2004).
In Schedule 3 (transitionals and savings), omit paragraphs 46 to 51 (first-year allowance for additional VAT liabilities).
In consequence of the amendments made by subsections (2) to (4), omit the following provisions—
in the list in section 39 (provisions under which first-year allowances available), the entries relating to section 40 and section 45,
in section 46 (general exclusions)—
in the list in subsection (1), the entries relating to section 40 and section 45, and
in the heading, from “applying” to “45”,
section 51 (disclosure of information between HMRC and Northern Ireland department),
in the table in section 52(3) (first-year allowances), the entries relating to expenditure qualifying under section 40 and expenditure qualifying under section 45,
section 237(2) (exception to section 236 where section 43 applies), and
in Schedule 3 (transitionals and savings), paragraph 14 (application of section 45).
In consequence of the amendments made by this section, omit—
in section 98 of TMA 1970, in the second column of the table, in the entry relating to requirements imposed by CAA 2001, “43(5) and (6),”,
sections 165 and 166 of FA 2003, and
paragraph 84 of Schedule 4 to CRCA 2005.
Subsection (8) applies in relation to an additional VAT liability incurred on or after the day this section comes into force which under section 235 of CAA 2001 is treated as qualifying expenditure.
If the original expenditure (within the meaning of that section) was first-year qualifying expenditure by virtue of a provision repealed by subsections (2) to (4), Chapter 18 of Part 2 of that Act (additional VAT liabilities and rebates) applies to the additional VAT liability as if that provision were not so repealed.
Section 45D of CAA 2001 (expenditure on cars with low carbon dioxide emissions) is amended as follows.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In consequence of the amendment made by subsection (2)—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The amendment made by subsection (3) has effect in relation to expenditure incurred on or after 1 April 2008.
But in relation to expenditure incurred on the hiring of a car— section 50 of ITTOIA 2005 applies on and after 1 April 2008 as if the amendment made by subsection (3) did not have effect.
for a period of hire which begins on or before 31 March 2008, and
under a contract entered into on or before 31 March 2008,
Section 45E of CAA 2001 (expenditure on plant or machinery for gas refuelling station) is amended as follows.
In subsection (1)(a), for “2008” substitute “ 2013 ”.
After “natural gas” (in each place) insert “ , biogas ”.
“biogas” means gas produced by the anaerobic conversion of organic matter and used for propelling vehicles;
The amendments made by subsections (3) and (4) have effect in relation to expenditure incurred on or after 1 April 2008.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 56 of CAA 2001 (amount of allowances and charges) is amended as follows.
In subsection (1), for “25%” substitute “ 20% ”.
After that subsection insert—
In subsection (2), for “Subsection (1) is” substitute “ Subsections (1) and (1A) are ”.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
paragraph 94(3)(a) and (4),
paragraph 95(4),
paragraph 97(2) and (3),
paragraph 98(8), and
paragraph 99(2).
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
in sub-paragraph (4), for “25%” substitute “the appropriate rate”, and
The appropriate rate is 20%; but if for any part of the period mentioned in sub-paragraph (4) the rate of writing-down allowance to which the lessor would have been entitled under section 56(1) of the Capital Allowances Act 2001 if paragraph 94 had not applied was more than 20%, for that part of the period that rate is the appropriate rate.
The amendments made by this section have effect in relation to chargeable periods—
beginning on or after the relevant date, and
beginning before, and ending on or after, the relevant date.
But in respect of a chargeable period within subsection (8)(b), they apply as if in— the references to 20% were to x%.
section 56(1) of CAA 2001,
the provisions listed in subsection (6), and
paragraph 99(5) of Schedule 22 to FA 2000,
For the purposes of subsection (9)— 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 (10)— BRD is the number of days in the chargeable period before the relevant date, ARD is the number of days in the chargeable period on and after the relevant date, and CP is the number of days in the chargeable period.
The relevant date is—
for corporation tax purposes, 1 April 2008, and
for income tax purposes, 6 April 2008.
CAA 2001 is amended as follows.
In section 56(2) (amount of allowances and charges), before paragraph (a) insert—.
After section 56 insert—
In section 59(1) (definition of unrelieved qualifying expenditure)—
after “that period” insert “ (a) ”, and
after “TDR” insert, and
The amendments made by this section have effect—
for corporation tax purposes, in relation to chargeable periods beginning on or after 1 April 2008, and
for income tax purposes, in relation to chargeable periods beginning on or after 6 April 2008.
Schedule 26 contains provision about special rate expenditure and the special rate pool.
This section applies in relation to long-life asset expenditure—
incurred before the relevant date, and
allocated to a pool in a chargeable period beginning before the relevant date.
In relation to a transitional chargeable period, section 102 of CAA 2001 applies as if the percentage figure specified in subsection (1) of that section were x%, where— 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 (2)— BRD is the number of days in the chargeable period before the relevant date, ARD is the number of days in the chargeable period on and after the relevant date, and CP is the number of days in the chargeable period.
Any unrelieved qualifying expenditure in a long-life asset pool at the end of— is to be carried forward to the special rate pool.
a transitional chargeable period, or
a chargeable period which ends immediately before the relevant date,
In subsequent chargeable periods, expenditure so carried forward is to be treated for the purposes of CAA 2001 as if it were special rate expenditure carried forward in the special rate pool from the chargeable period mentioned in subsection (4).
Any unrelieved qualifying expenditure in a single asset pool at the end of— is in subsequent chargeable periods to be treated for the purposes of CAA 2001 as if it were special rate expenditure carried forward in the single asset pool from that chargeable period.
a transitional chargeable period, or
a chargeable period which ends immediately before the relevant date,
Where expenditure is treated as special rate expenditure because of this section, for the purposes of section 104E of CAA 2001—
the reference in subsection (1)(a) of that section to section 104D of CAA 2001 includes a reference to section 102 of that Act (writing-down allowances in respect of long-life asset expenditure), and
the allowances that could have been made to the taxpayer in respect of the expenditure include allowances that could have been made under section 102 of that Act for chargeable periods before that in which the expenditure was first treated as special rate expenditure.
A “transitional chargeable period” is one which begins before, and ends on or after, the relevant date.
“The relevant date” means—
for corporation tax purposes, 1 April 2008, and
for income tax purposes, 6 April 2008.
Expressions used in this section and in CAA 2001 have the same meaning in this section as in that Act.
Parts 3 and 4 of CAA 2001 (industrial buildings allowances and agricultural buildings allowances) do not apply in relation to expenditure incurred on or after the relevant date.
Omit those Parts of that Act.
The amendment made by subsection (2) has effect in relation to chargeable periods beginning on or after the relevant date.
The relevant date is—
for corporation tax purposes, 1 April 2011, and
for income tax purposes, 6 April 2011.
Schedule 27 contains amendments and savings related to this section.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
For a chargeable period to which this section applies (“a transitional chargeable period”), a person’s entitlement to a writing-down allowance under Part 3 or 4 of CAA 2001 in respect of qualifying expenditure is to be determined in accordance with this section.
This section does not apply to a writing-down allowance in respect of qualifying enterprise zone expenditure.
If the whole of a transitional chargeable period falls within a financial year listed in column 1 of the table (for corporation tax purposes) or a tax year listed in column 2 of the table (for income tax purposes), the writing-down allowance to which the person is entitled for that chargeable period is— where— WDA is the writing-down allowance to which the person would be entitled for the chargeable period apart from this section, and P is the percentage specified in relation to that year in column 3 of the table.
If subsection (3) does not apply in relation to a transitional chargeable period, the writing-down allowance to which the person is entitled for that chargeable period is to be determined by—
calculating the apportioned writing-down allowance for each financial year (for corporation tax purposes) or tax year (for income tax purposes) in which part of the chargeable period falls, and
adding the amounts of the apportioned writing-down allowance for each of those years.
For the purposes of Part 3 of CAA 2001 (industrial buildings), the apportioned writing-down allowance for a financial year or tax year in which part of a transitional chargeable period falls is— where— DCPY is the number of days in the chargeable period which fall in that year, DCP is the number of days in the chargeable period, WDA is the writing-down allowance to which the person would be entitled for the chargeable period apart from this section, and P is the percentage specified in relation to that year in column 3 of the table.
For the purposes of Part 4 of CAA 2001 (agricultural buildings), the apportioned writing-down allowance for a financial year or tax year in which part of a transitional chargeable period falls is— where— RDCPY is the number of relevant days in the chargeable period which fall in that year, RDCP is the number of relevant days in the chargeable period, WDA is the writing-down allowance to which the person would be entitled for the chargeable period apart from this section, and P is the percentage specified in relation to that year in column 3 of the table.
The relevant days in the chargeable period are the days in that period for which the person was entitled to the relevant interest in relation to the qualifying expenditure (within the meaning of Part 4 of CAA 2001).
For the purposes of CAA 2001, the residue of the qualifying expenditure at any time is to be calculated as if the writing-down allowance made to a person under Part 3 or 4 of that Act in respect of the qualifying expenditure for any transitional chargeable period were the writing-down allowance which would have been made apart from this section.
This section applies—
for corporation tax purposes, to chargeable periods which begin before the relevant date and end on or after 1 April 2008, and
for income tax purposes, to chargeable periods which begin before the relevant date and end on or after 6 April 2008.
In this section references to the table are to the following table— Column 1 Column 2 Column 3 Financial year beginning 1 April 2007 and earlier financial years Tax year 2007-08 and earlier tax years 100% Financial year beginning 1 April 2008 Tax year 2008-09 75% Financial year beginning 1 April 2009 Tax year 2009-10 50% Financial year beginning 1 April 2010 Tax year 2010-11 25% Financial year beginning 1 April 2011 and later financial years Tax year 2011-12 and later tax years 0%.
In this section—
money paid or not paid by any person,
HODA 1979 is amended as follows.
In section 33(2A) of TMA 1970 (error or mistake)—
omit the “or” at the end of paragraph (a), and
at the end of paragraph (b) insert, or
This paragraph applies if trading stock of a person’s trade is appropriated by the person for any other purpose. In calculating the profits of the trade— The receipt is treated as arising on the date of the appropriation.
ITA 2007 is amended as follows.
ITA 2007 is amended as follows.
Section 91A of FA 1996 (shares treated as loan relationship: shares subject to outstanding third party obligations) is amended as follows. In subsection (7), for “paragraph (b) above” substitute “this subsection”. In subsection (8)(b), after “will be” insert “or has been”.
In section 91D(2) of FA 1996 (shares treated as loan relationship: redeemable shares), omit “or” at the end of paragraph (a) and insert at the endor The amendments made by sub-paragraph (1) have effect in relation to times on or after 12 March 2008.
In FA 1996, after section 94A insert— An election under this paragraph does not have effect in relation to any relevant assets in the case of which section 94B of FA 1996 applies. The amendment made by sub-paragraph (1) has effect in relation to debits and credits arising on or after 12 March 2008. The amendment made by sub-paragraph (2) has effect in relation to elections made on or after that date.
Section 384 of ITA 2007 (general restrictions on relief for interest payments) is amended as follows. In subsection (2), for “interest is paid at a rate in excess of a reasonable commercial rate” substitute “the interest paid on a loan in a tax year exceeds a reasonable commercial amount of interest on the loan for the relevant period”. After subsection (2) insert— The amendments made by this paragraph have effect in relation to interest paid on or after 9 October 2007; but in relation to interest paid in the period beginning with that date and ending with 5 April 2008, they have effect as if the references in section 384(2) and (3) to a tax year were to that period.
Part 3 of FA 1985 (stamp duty) is amended as follows.
Part 3 of FA 1987 (stamp duty and stamp duty reserve tax) is amended as follows.
In Schedule 40 to FA 2003, omit paragraph 2(b).
In section 87A of TMA 1970 (interest on overdue corporation tax), in subsection (6)(a), after “set off” insert “(whether under section 393A(1) or 393B(3))”.
An information notice only requires a person to produce a document if it is in the person’s possession or power.
Where a person has made a tax return in respect of a chargeable period under section 8, 8A or 12AA of TMA 1970 (returns for purpose of income tax and capital gains tax), a taxpayer notice may not be given for the purpose of checking that person’s income tax position or capital gains tax position in relation to the chargeable period. Where a person has made a tax return in respect of a chargeable period under paragraph 3 of Schedule 18 to FA 1998 (company tax returns), a taxpayer notice may not be given for the purpose of checking that person’s corporation tax position in relation to the chargeable period. Sub-paragraphs (1) and (2) do not apply where, or to the extent that, any of conditions A to D is met. Condition A is that a notice of enquiry has been given in respect of— and the enquiry has not been completed. In sub-paragraph (4), “notice of enquiry” means a notice under— Condition B is that an officer of Revenue and Customs has reason to suspect that— Condition C is that the notice is given for the purpose of obtaining any information or document that is also required for the purpose of checking that person’s VAT position. Condition D is that the notice is given for the purpose of obtaining any information or document that is required (or also required) for the purpose of checking the person’s position as regards any deductions or repayments referred to in paragraph 64(2) (PAYE etc).
An information notice does not require a person who has been appointed as an auditor for the purpose of an enactment— Sub-paragraph (1) has effect subject to paragraph 26.
In TMA 1970 omit—
section 63 (recovery of tax in Scotland), and
section 63A (sheriff officer’s fees and outlays).
In FA 1997, omit section 52 (recovery of relevant tax in Scotland).
In section 1 (hydrocarbon oil), after subsection (3C) insert—
ITTOIA 2005 is amended as follows.
This paragraph applies if something that— becomes trading stock of the trade. In calculating the profits of the trade— The cost is treated as being incurred on the date it became trading stock of the trade.
Section 827 (meaning of “investment transaction”) is amended as follows. For subsections (2) and (3) substitute—
Section 91C of FA 1996 (shares treated as loan relationship: shares likely to increase in value at rate representing return on investment of money) is amended as follows. In subsection (1), for “paragraph (b) above” substitute “this subsection”. In subsection (6), for “entered into by the investing company” substitute “or has been entered into”.
In section 83 (transfers in connection with divorce, dissolution of civil partnership, etc), omit subsection (2) (fixed duty).
In section 50(1) (warrants to purchase Government stock, etc), omit “, or paragraph 16”.
In section 2A(1) (power to amend definitions), before paragraph (a) insert—.
In section 839 (annual payments payable out of relevant foreign income), omit subsection (6).
Section 1014(2) (orders and regulations under the Income Tax Acts: excluded powers) is amended as follows. In paragraph (g)(iia), omit “and”. After paragraph (g)(iia) insert—.
The amendments made by paragraphs 10 and 11 have effect in relation to times on or after 12 March 2008.
In section 84 (death: varying dispositions, and appropriations)—
omit subsections (8) and (9) (fixed duty and adjudication), and
in subsection (11) (commencement), omit the words from “and,” to “subsection (8) above”.
In section 55(1) (Crown exemption), omit “, or paragraph 16”.
Section 6 (hydrocarbon oil: rates of duty) is amended as follows. In subsection (1), for the words from the beginning to “below, there” substitute “ There ”. Omit subsections (3) and (4).
In section 840 (relief for backdated pensions charged on arising basis), omit subsection (4) (application of section 837).
In section 24(1) (control of use of duty-free and rebated oil), omit “section 6(3),”.
After that section insert—
In section 27(1) (interpretation), in the definition of “aviation gasoline”, for “section 6(4) above” substitute “ section 1(3D) ”.
Section 857 (partners to whom the remittance basis may apply) is amended as follows. In subsection (1), for paragraph (c) substitute— In subsection (3), omit “for the purposes of this Act (see Part 8)”. Accordingly, in the heading, for “may apply” substitute “ applies ”.
In Schedule 3 (regulations under section 21), omit paragraph 10A.
In section 878 (definitions), omit subsection (2).
In consequence of the amendments made by paragraphs 2 to 7, omit—
in FA 1982, section 4(2), (3) and (7),
in FA 1990, section 3(5), and
in FA 1998, section 6(1)(a).
In Schedule 2 (transitional provision etc), omit paragraphs 150 and 151.
In Part 2 of Schedule 4 (index of defined expressions), omit the entry for “person to whom the remittance basis applies”.
ITA 2007 is amended as follows.
In section 2(14) (overview of Act), before paragraph (a) insert—.
In section 34 (personal allowances etc: introduction), after subsection (2) insert—
In section 42 (tax reductions for married couples etc: introduction), after subsection (4) insert—
In section 460 (residence etc of claimants for relief for life insurance payments etc), after subsection (3) insert—
In consequence of the amendments made by this Part of this Schedule, omit—
in ITEPA 2003, paragraph 208 of Schedule 6,
in ITTOIA 2005, paragraph 429 of Schedule 1, and
in CRCA 2005, paragraphs 102(3)(b) to (d) and 104 of Schedule 4.
“credit” and “debit” have the same meaning as in section 130,
In Schedule 12 to FA 2002 (tax relief for expenditure on research and development), in both of the following provisions, for “25%” substitute “30%”— The amendments made by sub-paragraph (1) have effect in relation to expenditure incurred on or after 1 April 2008.
Schedule 13 to FA 2002 (tax relief for expenditure on vaccine research etc) is amended as follows. In paragraph 14(1) (deduction in computing profits of trade), insert at the end “(subject to paragraph 18A)”. In paragraph 15(1) (alternative treatment of pre-trading expenditure: deemed trading loss), insert at the end “(subject to paragraph 18A)”. In paragraph 16(1) (entitlement to tax credit), insert at the end “(subject to paragraph 18A)”. This paragraph has effect subject to paragraph 18A. After that paragraph insert—
If a relevant company is a party to an investment life insurance contract, for the purposes of Chapter 2 of Part 4 of FA 1996 the contract is, in relation to the company, a loan relationship of the company (as a creditor relationship). But if— the excess is not to be brought into account as a credit under that Chapter representing a profit from a related transaction arising by reason of the lump sum becoming payable.
This Part applies for the purposes of corporation tax. In this Part “trading stock”, in relation to a trade, means anything (whether land or other property)— It does not include—
This paragraph is subject to paragraph 5 of Schedule 20A to the Finance Act 1993.
An officer of Revenue and Customs may by notice in writing require a person (“the taxpayer”)— if the information or document is reasonably required by the officer for the purpose of checking the taxpayer’s tax position. In this Schedule, “taxpayer notice” means a notice under this paragraph.
An officer of Revenue and Customs who gives a third party notice must give a copy of the notice to the taxpayer to whom it relates, unless the First-tier Tribunal has disapplied this requirement. The First-tier Tribunal may not disapply that requirement unless—
Where a person is required by an information notice to provide information or produce a document, the person must do so— as is reasonably specified or described in the notice. Where an information notice requires a person to produce a document, it must be produced for inspection— An officer of Revenue and Customs must not specify a place that is used solely as a dwelling. The production of a document in compliance with an information notice is not to be regarded as breaking any lien claimed on the document.
An inspection under this Part of this Schedule may be carried out only— This sub-paragraph is satisfied if— An officer of Revenue and Customs seeking to carry out an inspection under sub-paragraph (2)(b) must provide a notice in writing as follows— The notice referred to in sub-paragraph (3) must state the possible consequences of obstructing the officer in the exercise of the power. If a notice referred to in sub-paragraph (3) is given with the approval of the First-tier Tribunal (see paragraph 13), it must state that it is given with that approval.
The powers under Part 2 of this Schedule include—
power to mark business assets, and anything containing business assets, for the purpose of indicating that they have been inspected, and
power to obtain and record information (whether electronically or otherwise) relating to the premises, assets and documents that have been inspected.
A person is guilty of an offence (subject to sub-paragraphs (2) and (3)) if— Sub-paragraph (1) does not apply if the person acts after the document has been produced to an officer of Revenue and Customs in accordance with the information notice, unless an officer of Revenue and Customs has notified the person in writing that the document must continue to be available for inspection (and has not withdrawn the notification). Sub-paragraph (1) does not apply, in a case to which paragraph 8(1) applies, if the person acts after the expiry of the period of 6 months beginning with the day on which a copy of the document was so produced unless, before the expiry of that period, an officer of Revenue and Customs made a request for the original document under paragraph 8(2)(b).
In this Schedule—
In this Schedule “chargeable period” means—
in relation to income tax or capital gains tax, a tax year, and
in relation to corporation tax, an accounting period.
In this Schedule, except as otherwise provided, “tax position”, in relation to a person, means the person’s position as regards any tax, including the person’s position as regards— and references to a person’s position as regards a particular tax (however expressed) are to be interpreted accordingly. References in this Schedule to a person’s tax position include, where appropriate, a reference to the person’s position as regards any deductions or repayments of tax, or of sums representing tax, that the person is required to make— References in this Schedule to the tax position of a person include the tax position of— References in this Schedule to a person’s tax position are to the person’s tax position at any time or in relation to any period, unless otherwise stated.
Part 7 of FA 2004 (disclosure of tax avoidance schemes) is amended as follows.
VATA 1994 is amended as follows.
In section 711(2) (notice requiring officer of Revenue and Customs to give notice requiring tax return), for “5 years” substitute “3 years”.
The amendments of sections 33, 34 and 36 of TMA 1970 made by this Schedule do not have effect for the purposes of those sections as applied by paragraph 1 of Schedule 1 to OTA 1975 (management and collection of petroleum revenue tax).
Section 308 (duties of promoter) is amended as follows. In subsection (1)— In subsection (2)(a), for “a” substitute “the”. In subsection (3)— For subsection (4) substitute—
In section 33A(4) (refunds of VAT to museums and galleries), for “3 years” substitute “4 years”.
In section 311(1) (arrangements to be given reference number)—
after “complies” insert “or purports to comply”,
omit “may within 30 days”,
before “allocate” insert “may within 30 days”, and
for “notify the person of that number” substitutemust notify that number to the person and (where the person is one who has complied or purported to comply with section 308(1) or (3)) to any other person—
Section 77 (assessments: time limits and supplementary assessments) is amended as follows. In subsection (1)(a) and (b), for “3 years” substitute “4 years”. For subsection (4) substitute— In subsection (5)—
For section 312 substitute—
In section 78(11) (interest in certain cases of official error), for “three years” substitute “4 years”.
Section 313 (duty of parties to notifiable arrangements to notify HMRC of number etc) is amended as follows. In subsection (1)(a), omit “under section 311 by the Board or under section 312 by the promoter”. In subsection (3)— Insert at the end—
In section 80(4) (credit for, or repayment of, overstated or overpaid VAT), for “3 years” substitute “4 years”.
For section 316 substitute—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
For a chargeable period which begins before, and ends on or after, the relevant date, a person’s entitlement to a writing-down allowance under Part 3 of CAA 2001 in respect of qualifying enterprise zone expenditure is to be determined in accordance with subsection (2).
The writing-down allowance to which the person is entitled is— where— DCPB is the number of days in the chargeable period which fall before the relevant date, DCP is the number of days in the chargeable period, and WDA is the writing-down allowance to which the person would be entitled for the chargeable period apart from this section.
In this section “the relevant date” has the same meaning as in section 84.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In CAA 2001, after section 313 insert—
The amendment made by subsection (1) has effect in relation to the sale of a relevant interest on or after 12 March 2008, except for such a sale in pursuance of a relevant pre-commencement contract (and for this purpose “sale” has the same meaning as for the purposes of Part 3 of CAA 2001).
A contract is a relevant pre-commencement contract if—
the contract is a contract in writing made before 12 March 2008,
the contract is unconditional or its conditions have been satisfied before that date,
no terms remain to be agreed on or after that date, and
the contract is not varied in a significant way on or after that date.
The Treasury may by order make such amendments (including repeals and revocations) of enactments or instruments as may appear appropriate in consequence of, or otherwise in connection with, sections 71 to 87.
The Treasury may by order make such transitional or saving provision as may appear appropriate in consequence of, or otherwise in connection with, those sections.
An order under subsection (1) may make transitional provision and savings.
An order under subsection (1) or (2) may—
make different provision for different cases, and
include provision having effect in relation to times before the order is made if that provision does not increase any person's liability to tax.
An order under subsection (1) or (2) is to be made by statutory instrument.
A statutory instrument containing an order under subsection (1) or (2) is subject to annulment in pursuance of a resolution of the House of Commons.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
After section 343 of ICTA insert—
The amendment made by subsection (1) has effect in relation to the cessation of a trade or part of a trade on or after 12 March 2008.
In Part 4 of FA 2004 (pension schemes etc), after section 199 insert—
The amendment made by this section has effect in relation to payments within section 199A(2) of FA 2004 made on or after 10 October 2007, except for such payments made pursuant to a contract entered into before 9 October 2007.
Schedule 28 contains provision about the inheritance etc of tax-relieved pension savings.
Schedule 29 contains further provision about pension schemes.
Sections 58B and 58C of FA 2003 (relief from SDLT on first acquisition of zero-carbon homes) are amended as follows.
In section 58B, for subsection (2) substitute—
Section 58C is amended as follows.
In subsection (1), for “building” substitute “ dwelling ”.
In subsection (2), after paragraph (c) insert—
In subsection (3)—
for “a building” substitute “ a dwelling ”, and
for “building itself” substitute “ building which, or part of which, constitutes the dwelling ”.
The amendments made by subsections (2), (4) and (6) are treated as always having had effect; and provision included in regulations by virtue of those amendments may be made so as to have effect in relation to acquisitions on or after 1 October 2007.
Part 4 of FA 2003 (stamp duty land tax) is amended as follows.
For section 77 substitute—
In section 79(2) (registration of land transactions), after “every” insert “ notifiable ”.
Schedule 30 contains consequential provision.
The amendments made by this section and that Schedule have effect in relation to transactions with an effective date on or after 12 March 2008.
Schedule 5 to FA 2003 (amount of SDLT chargeable: rent) is amended as follows.
In paragraph 9 (SDLT chargeable in respect of consideration other than rent)— and, accordingly, in the heading before that paragraph, insert at the end “ : general ”.
in sub-paragraph (1), insert at the end “ (but see paragraph 9A) ”, and
omit sub-paragraphs (2), (2A) and (3),
After that paragraph insert—
Each of the following provisions of Schedule 6 to that Act (SDLT: disadvantaged areas relief) is amended in accordance with subsection (5)—
paragraph 5(4) (residential land wholly situated in disadvantaged area),
paragraph 6(6) (mixed land wholly situated in disadvantaged area),
paragraph 9(4) (residential land partly situated in disadvantaged area), and
paragraph 10(6) (mixed land wholly partly situated in disadvantaged area).
In those provisions—
in paragraph (a), omit sub-paragraph (i) (and the “and” after it), and
omit paragraph (b).
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In Schedule 8 to that Act (SDLT: charities relief), in paragraph 3—
in sub-paragraph (3)(b), for “does not exceed £600” substitute “ is less than £1,000 ”, and
in sub-paragraph (5), for “9(2)” substitute “ 9A ”.
In Schedule 9 to that Act (SDLT: right to buy etc), after paragraph 4A insert—
In that Schedule, in paragraphs 10(1) and (2) and 11(b) (shared ownership trusts), omit “additional”.
In that Schedule, insert at the end—
In Schedule 15 to that Act (SDLT: partnerships)—
in paragraph 11(2B)(a), for “9(2A)” substitute “ 9A(6) ”,
in paragraph 19(2B), for “9(2A)” substitute “ 9A(6) ”, and
in paragraph 23(3)(c), for “9(2)” substitute “ 9A ”.
In Schedule 17A to that Act (SDLT: further provisions relating to leases), in paragraph 18A(5)(a)—
for “9(2)” substitute “ 9A ”,
for “the Tables” substitute “ Table B ”, and
for “the relevant rental figure exceeds £600” substitute “ the relevant rent attributable to non-residential property is not less than £1,000 ”.
The amendments made by this section have effect in relation to transactions with an effective date on or after 12 March 2008.
Part 1 of Schedule 7 to FA 2003 (group relief) is amended as follows.
In paragraph 3(5), for “paragraph 4” substitute “ paragraphs 4 and 4ZA ”.
In paragraph 4 (cases in which group relief not withdrawn)—
omit sub-paragraphs (2) and (3), and
in sub-paragraph (5), for “sub-paragraphs (3) and (4)” substitute “ sub-paragraph (4) ”.
After that paragraph insert—
In paragraph 4A (withdrawal of group relief in certain cases involving successive transactions)—
in sub-paragraph (1), in the words following paragraph (d), for “and 4” substitute “ , 4 and 4ZA ”,
after that sub-paragraph insert—,
in sub-paragraph (3)—
for “sub-paragraph (1)(a)” substitute “ this paragraph ”, and
for “this sub-paragraph” substitute “ this paragraph ”, and
after sub-paragraph (3) insert—
The amendments made by this section have effect in relation to transactions with an effective date on or after 13 March 2008.
Schedule 31 contains provision relating to stamp duty land tax chargeable on transfers to, and of interests in, property-investment partnerships.
Part 1 of that Schedule (transfer of interest in partnership: “relevant partnership property”), and this section so far as relating to that Part—
have effect in respect of transfers occurring on or after 19 July 2007 (subject to subsection (3)), and
are treated as having come into force on that day.
Subsections (14) and (17) of section 72 of FA 2007 (partnerships) apply in relation to the amendments made by Part 1 of that Schedule as they apply in relation to the amendments made by subsections (6) and (10) of that section.
Paragraph 1 of Schedule 13 to FA 1999 (charge to stamp duty on conveyance or transfer on sale) is amended as follows.
In sub-paragraph (3), for “(4)” substitute “ (3A) ”.
After that sub-paragraph insert—
In paragraph 6(1) (meaning of instrument being certified at an amount), for “paragraph” substitute “ paragraphs 1(3A) and ”.
The amendments made by this section have effect in relation to instruments executed on or after 13 March 2008 and not stamped before 19 March 2008.
For the purposes of section 14(4) of the Stamp Act 1891 (c. 39) (instruments not to be given in evidence etc unless stamped in accordance with the law in force at the time of first execution), the law in force at the time of execution of an instrument— shall be deemed to be the law as varied in accordance with this section.
executed on or after 13 March 2008 but before 19 March 2008, and
not stamped before 19 March 2008,
Schedule 32 contains provision abolishing fixed stamp duty on certain instruments.
The amendments and saving made by that Schedule have effect in relation to instruments executed on or after 13 March 2008 and not stamped before 19 March 2008.
For the purposes of section 14(4) of the Stamp Act 1891 (instruments not to be given in evidence etc unless stamped in accordance with the law in force at the time of first execution), the law in force at the time of execution of an instrument— shall be deemed to be the law as varied in accordance with Schedule 32.
executed on or after 13 March 2008 but before 19 March 2008, and
not stamped before 19 March 2008,
In FA 1985, omit section 82(5) and (9) (adjudication of certain gifts inter vivos).
Accordingly, omit paragraph 9 of Schedule 14 to FA 1999.
The amendments made by this section have effect in relation to instruments executed on or after 13 March 2008, other than instruments effecting a land transaction (within the meaning of paragraph 22 of Schedule 32).
For the purposes of section 14(4) of the Stamp Act 1891 (instruments not to be given in evidence etc unless stamped in accordance with the law in force at the time of first execution), the law in force at the time of execution of such an instrument shall be deemed to be the law as varied in accordance with this section.
Section 79 of FA 1986 (stamp duty and loan capital) is amended as follows.
In subsection (6), for “subsection (7)” substitute “ subsections (7) to (7B) ”.
After subsection (7A) insert—
After subsection (12) insert—
The amendments made by this section have effect in relation to any instrument executed on or after the day on which this Act is passed.
In section 12 of OTA 1975 (interpretation of Part 1), the definition of “participator” is amended as follows.
In the words before paragraph (a), after “chargeable period” insert “ (“the relevant chargeable period”) ”.
In paragraphs (a), (b) and (c), for “that chargeable period” substitute “ the relevant chargeable period ”.
At the end of paragraph (c) insertand .
The amendments made by this section have effect in relation to expenditure incurred after 30 June 2008.
In Schedule 5 to OTA 1975 (allowance of expenditure, other than abortive exploration expenditure), for paragraph 2A substitute—
The amendment made by subsection (1) has effect in relation to expenditure incurred after 30 June 2008.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FA 1991 is amended as follows.
Section 64 (relief for expenditure incurred by a participator in meeting defaulter’s abandonment expenditure) is amended as follows.
In subsection (1)(a)—
omit “(as set out in section 107 of this Act)”, and
for “sub-paragraph (1)(a)” substitute “sub-paragraph (2)”.
In subsection (1)(b)—
for “sub-paragraph (4)” substitute “sub-paragraph (2)”, and
for “qualifying” substitute “contributing”.
In subsections (2), (3), (4) and (5) (in each place), for “qualifying” substitute “contributing”.
Section 65 (reimbursement by defaulter in respect of certain abandonment expenditure) is amended as follows.
In subsection (1)(a)—
omit “(as set out in section 107 of this Act)”, and
for “sub-paragraph (1)(a)” substitute “sub-paragraph (2)”.
In subsection (1)(b), for “sub-paragraph (4)” substitute “sub-paragraph (2)”.
In subsections (1) (in each place), (4), (5) (in each place), (6), (7) (in each place) and (8), for “qualifying” substitute “contributing”.
The amendments made by this section have effect in relation to expenditure incurred after 30 June 2008.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 108 of FA 1991 (reimbursement by defaulter in respect of certain abandonment expenditure) is amended as follows.
In subsection (1)(a), omit “(as set out in section 107 above)”.
For subsection (1)(b) substitute—.
In subsection (1)(c), for “qualifying participator” substitute “contributing participator”.
In subsection (4), for “qualifying participator” (in each place) substitute “contributing participator”.
In subsection (5), for “qualifying participator” substitute “contributing participator”.
In subsection (7), for “qualifying participator” substitute “contributing participator”.
The amendments made by this section have effect in relation to expenditure incurred after 30 June 2008.
Section 62 of FA 1987 (returns of relevant sales of oil) is amended as follows.
After subsection (3) insert—
In subsection (4), for the words before paragraph (a) substitute—.
In subsection (4), in paragraphs (d), (e) and (f), for “oil” (in each place) substitute “ Category 2 oil ”.
In subsection (6)—
in the words before paragraph (a), for “oil”, in each place except in the expression “oil field”, substitute “ Category 2 oil ”,
in paragraph (a), for “subsection (4)” substitute “ subsection (3A) ”,
in paragraph (c), for “oil” substitute “ Category 2 oil ”, and
omit paragraph (d) and the “and” before it.
After subsection (8) insert—
The amendments made by this section have effect in relation to chargeable periods ending on or after 30 June 2008.
Section 185 of FA 1993 is amended as follows.
Before subsection (1) insert—
In subsection (1)—
for the words before paragraph (a) substitute—, and
omit the words after paragraph (b).
After that subsection insert—
In subsection (1A), before paragraph (a) insert—.
Before Schedule 21 to FA 1993, insert Schedule 20A that is set out in Part 1 of Schedule 33 to this Act.
Part 2 of Schedule 33 contains other amendments relating to the amendments made by this section.
Expenditure qualifying under section 45F (expenditure for use wholly in a ring fence trade) 100%
The amendment made by subsection (1) has effect in relation to expenditure incurred on or after 12 March 2008.
Section 163 of CAA 2001 (meaning of “abandonment expenditure”) is amended as follows.
For the heading substitute “ Meaning of “general decommissioning expenditure” .
For subsections (1) to (3) substitute—
After subsection (4) insert—
In subsection (5)(b), omit “ “abandonment programme”,”.
Schedule 34 contains amendments consequential on this section.
The amendments made by this section and that Schedule have effect in relation to expenditure incurred on or after 12 March 2008.
Section 165 of CAA 2001 (abandonment expenditure within 3 years of ceasing ring fence trade) is amended as follows.
In the heading, for “within 3 years of” substitute “ after ”.
For subsection (2) substitute—
After subsection (4) insert—
After subsection (5) insert—
Section 393A of ICTA (losses: set off against profits of the same, or an earlier, accounting period) is amended as follows.
In subsection (11)—
for “In any case where” substitute “ Subsection (11A) applies in any case where ”,
in paragraph (a), for “within 3 years of” substitute “ after ”, and
omit the words after paragraph (b).
After that subsection insert—
The amendments made by this section have effect in relation to ring fence trades that cease to be carried on or after 12 March 2008.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Schedule 35 contains minor and consequential amendments relating to the amendments made by this section.
The amendments made by this section and that Schedule have effect in relation to losses incurred in accounting periods beginning on or after 12 March 2008.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In section 492 of ICTA (treatment of oil extraction activities etc for tax purposes), after subsection (3) insert—
The amendment made by subsection (1) has effect in relation to expenses referable to accounting periods ending on or after 12 March 2008 (but see also subsections (3) and (4)).
In the case of expenses referable to a straddling period, a deduction of the relevant fraction of those expenses shall be allowed under section 75 of ICTA from the company’s ring fence profits.
But the deduction allowed under subsection (3) may not exceed the total amount of the expenses referable to the straddling period that have actually been paid—
during the first portion of the straddling period, or
before the start of the straddling period.
In this section—
TCGA 1992 is amended as follows.
In Part 5 (transfer of business assets), after section 169G insert—
Section 169P of TCGA 1992 has effect in a case where the period for which the assets are in use for the purposes of the business began before 6 April 2008 as if the reference in subsection (4)(d) of that section to that period were to so much of it as falls on or after that date.
The amendments made by paragraphs 2, 3 and 4(4) have effect in relation to cases where the survivor's death occurs on or after 9 October 2007. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The amendments made by paragraphs 5 and 7 are to be treated as having come into force on 9 October 2007. The amendment made by paragraph 8 has effect in relation to any ascertainment of value made on or after 6 April 2008.
In Chapter 6 of Part 17 of ICTA (tax avoidance: miscellaneous), after section 785A insert— The amendment made by sub-paragraph (1) has effect in relation to— In relation to a case where the condition in paragraph (a) or (b) of section 785B(1) of ICTA was met before 12 March 2008, sections 785B to 785E of that Act have effect as if—
Part 2 of CAA 2001 (plant and machinery allowances) is amended as follows. In section 13(5) (use for qualifying activity of plant or machinery provided for other purposes), omit “or 224”. In section 52(5) (first-year allowances), omit “, 223”. In section 57(3) (available qualifying expenditure), omit “224(1),”. In section 66 (provisions referred to in section 60(1)(b)), omit the entry relating to section 222. In section 70I (meaning of “short lease”), after subsection (9) insert— In section 89(3)(b) (disposal to connected person), for “sections 222 to” substitute “section”. In section 217 (no first-year allowance for B’s expenditure), for subsection (3) substitute— In section 218 (restriction on B’s qualifying expenditure), for subsection (4) substitute— In section 219(1) (meaning of “finance lease”), omit “and which are not a long funding lease in the case of the lessor”. In section 221(1) (meaning of “sale and finance leaseback”), for “sections 222 to 228” substitute “section 225”. Omit— In section 227 (circumstances in which election may be made)— and the heading before that section accordingly becomes “Sale and leaseback: election for special treatment”. In section 228 (effect of election: relaxation of restriction on B’s qualifying expenditure, etc)— In section 230(2) (exception for manufacturers and suppliers), for “sections 222 to” substitute “section”. In section 241(1)(b) (no first-year allowance in respect of additional VAT liability), omit “or 223(1)”. Omit section 243 (restriction on B’s qualifying expenditure: sale and finance leaseback). In section 774E(6) of ICTA (structured finance arrangements: exceptions), omit the second sentence. The amendments made by this paragraph have effect in the case of plant or machinery which is the subject of a sale and finance leaseback (as defined in section 221 of CAA 2001) where the date of the transaction (within the meaning of that section) is on or after 9 October 2007. In the case of plant or machinery which is the subject of a sale and finance leaseback (as defined in section 221 of CAA 2001) where the date of the transaction (within the meaning of that section) is before 12 March 2008, section 70I(10) of CAA 2001 has effect as if for “any finance lease of a kind” there were substituted “the finance lease”.
Credits relating to any amount which falls, when paid, to be treated as a distribution in respect of a loan relationship are to be brought into account for the purposes of this Chapter if the amount arises in consequence of, or otherwise in connection with, arrangements the purpose, or one of the main purposes, of which is securing for any person a tax advantage; and for this purpose— The amendment made by sub-paragraph (1) has effect in relation to accounting periods ending on or after 12 March 2008 but, in the case of an accounting period beginning before that date, only if the credits relate to any time on or after that date.
In FA 1996, in— omit “falling within section 209(2)(a) or (b) of the Taxes Act 1988”. The repeals made by sub-paragraph (1) have effect in relation to distributions on or after 9 October 2007.
ICTA is amended as follows.
Part 4 of FA 2003 (stamp duty land tax) is amended as follows.
This paragraph has effect subject to any election under paragraph 12A.
In section 36 (reduction of deferred charges where wholly or partly attributable to pre-31 March 1982 increase in value), for “tax” substitute “ corporation tax in respect of chargeable gains ”.
In ITA 2007, after section 809 insert— The amendment made by sub-paragraph (1) has effect in relation to— In relation to a case where the condition in paragraph (a) or (b) of section 809ZA(1) of ITA 2007 was met before 12 March 2008, sections 809ZA to 809ZD of that Act have effect as if—
In section 70I of CAA 2001 (meaning of “short lease”), after subsection (9) insert— The amendment made by sub-paragraph (1) has effect in the case of plant or machinery which is the subject of a lease and finance leaseback (as defined in section 228A of CAA 2001) where the date of the transaction mentioned in subsection (2)(a) of that section is on or after 12 March 2008.
In section 395(1)(c) (leasing contracts and company reconstructions), after “for which” insert “an annual investment allowance or”.
Section 79 (registration of land transactions) is amended as follows. In subsection (3), omit the word “either”, paragraph (b) and the word “or” before it. For subsection (5) substitute— In subsection (6)(a), omit “or self-certificates”.
After paragraph 12 insert—
Schedule 4 (deferred charges on pre-31 March 1982 gains) is amended as follows. Before paragraph 1 insert— In paragraph 2(5), omit— In paragraph 4(2), omit “168 (as modified by section 67(6)),”. In paragraph 9(1), omit—
In section 785A of ICTA (rent factoring of leases of plant or machinery), after subsection (5A) insert—
In paragraph 1(6)(b)(i) of Schedule 18 (group relief), before “a first-year” insert “an annual investment allowance or”.
In section 81B(1) (declaration by person authorised to act on behalf of individual), omit “or paragraph 2(1)(c) of Schedule 11” and “or self-certificate”.
This paragraph has effect subject to any election under paragraph 12A.
In consequence of paragraph 74, omit paragraph 43 of Schedule 21 to FA 1996.
Section 103 (joint purchasers) is amended as follows. In subsection (4), omit “or paragraph 2(1)(c) of Schedule 11” and “or self-certificate”. In subsection (5), omit “or self-certificate”.
The amendments made by paragraphs 72 to 75 have effect in relation to disposals which occur on or after 6 April 2008 and to which Schedule 4 to TCGA 1992 would otherwise apply.
Section 122 (index of defined expressions) is amended as follows. In the entry for “closure notice”, omit “Schedule 11, paragraph 16(1) (in relation to a self-certificate)”. In the entry for “notice of enquiry”, omit “Schedule 11, paragraph 7(1) (in relation to a self-certificate)”. In the entry for “notifiable (in relation to a land transaction)”, after “72A(7)” insert “and paragraph 30 of Schedule 15”. Omit the entry for “self-certificate”.
In Part 4 of Schedule 6 (SDLT: disadvantaged areas relief), in paragraph 13, for “section 77 (which specifies” substitute “sections 77 and 77A (which specify”.
In paragraph 36 of Schedule 10 (notice of appeal), in sub-paragraph (5A)(d), for “one for which a self-certificate is due” substitute “not notifiable”.
Omit Part 1 of Schedule 11 (SDLT: self-certificates).
In Part 2 of that Schedule (duty to keep and preserve records), paragraph 4 is amended as follows. This paragraph applies where a transaction is not notifiable, unless the transaction is a transaction treated as taking place under a provision listed in section 79(2)(a) to (d). In sub-paragraph (1)— In sub-paragraph (2), omit the words from “and” to the end.
Omit Part 3 of that Schedule (enquiry into self-certificate).
Accordingly, in the heading to Schedule 11, for “self-certificates” substitute “record-keeping where transaction is not notifiable”.
In Schedule 15 (SDLT: partnerships), in paragraph 8(2), omit “or paragraph 2(1)(c) of Schedule 11” and “or self-certificate”.
In Schedule 16 (SDLT: trusts and powers), paragraph 6 is amended as follows. In sub-paragraphs (1) and (3), omit “or self-certificate”. In sub-paragraph (2), omit “or paragraph 2(1)(c) of Schedule 11” and “or self-certificate”.
In Schedule 17A (SDLT: further provisions relating to leases), in paragraphs 3(2) and (5) and 4(1) and (4A), for “section 77” substitute “sections 77 and 77A”.
any decision of the Commissioners relating to an HMRC matter, or
In section 88(1) of FA 1989 (insurance companies: policy holders' share of profits), for “savings rate” substitute “ basic rate ”.
ITTOIA 2005 is amended as follows.
Part 3 of Schedule 15 to FA 2000 (CVS: the issuing company) is amended as follows.
This paragraph applies if— In calculating the profits of the trade— The receipt is treated as arising on the date of the disposal. This paragraph is subject to paragraph 10.
In section 91B(5)(a) of FA 1996 (debits and credits to be brought into account where Condition 3 in section 91E is satisfied), omit “by the investing company”. The repeal made by sub-paragraph (1) has effect in relation to credits and debits relating to any time on or after 16 May 2008.
Section 91E of FA 1996 (shares treated as loan relationship: schemes etc designed to produce return equating to return on investment of money at interest) is amended as follows. In subsection (1)— and acquiring rights or receiving benefits in respect of other shares. The amendments made by this paragraph have effect in relation to times on or after 12 March 2008.
In section 103 of FA 1996 (interpretation of Chapter 2 of Part 4), omit subsections (3A) and (3B) (meaning of “commercial rate of interest”). Accordingly— The repeals made by this paragraph have effect in relation to times on or after 12 March 2008.
In section 573(4) (manufactured dividends on UK shares: Income Tax Acts to apply subject to sections 574 and 575 where payer is UK resident and not a company), for “sections 574 and 575” substitute “section 574”.
In section 578(3) (manufactured interest on UK securities: Income Tax Acts to apply subject to sections 579 and 580 where payer is UK resident or acting in course of trade carried on through UK branch or agency), for “sections 579 and 580” substitute “section 579”.
After section 581 insert—
FA 1999 is amended as follows.
An officer of Revenue and Customs may not give a third party notice without— An officer of Revenue and Customs may ask for the approval of the First-tier Tribunal to the giving of any taxpayer notice or third party notice (and for the effect of obtaining such approval see paragraphs 29, 30 and 53 (appeals against notices and offence)). The First-tier Tribunal may not approve the giving of a taxpayer notice or third party notice unless— Paragraphs (c) to (e) of sub-paragraph (3) do not apply to the extent that the First-tier Tribunal is satisfied that taking the action specified in those paragraphs might prejudice the assessment or collection of tax. Where the First-tier Tribunal approves the giving of a third party notice under this paragraph, it may also disapply the requirement to name the taxpayer in the notice if it is satisfied that the officer has reasonable grounds for believing that naming the taxpayer might seriously prejudice the assessment or collection of tax.
In this Schedule, “information notice” means a notice under paragraph 1, 2 or 5. An information notice may specify or describe the information or documents to be provided or produced. If an information notice is given with the approval of the First-tier Tribunal, it must state that it is given with that approval.
This Part of this Schedule has effect subject to Parts 4 and 6 of this Schedule.
This paragraph applies to a taxpayer notice or third party notice that refers only to information or documents that form part of any person’s statutory records and relate to— Paragraph 3(1) (requirement for consent to, or approval of, third party notice) does not apply to such a notice. Where a person is given such a notice, the person may not appeal to the First-tier Tribunal against the notice or any requirement in the notice. Sections 5, 11 and 15 of, and Schedule 4 to, VATA 1994, and any orders made under those provisions, apply for the purposes of this paragraph as if it were part of that Act.
This paragraph applies where a business is carried on by two or more persons in partnership. If a tax return has been made by any of the partners under section 12AA of TMA 1970 (partnership returns) in respect of a chargeable period— Where a third party notice is given to any person (other than one of the partners) for the purpose of checking the tax position of more than one of the partners (in their capacity as such), paragraph 2 only requires the notice to state this and give a name in which the partnership is registered for any purpose. In relation to such a notice— Where a third party notice is given to one of the partners for the purpose of checking the tax position of one or more of the other partners (in their capacity as such), paragraphs 3(1) and 4(1) (approval etc of notices and copying third party notices to taxpayer) do not apply. Where a notice is given under paragraph 5 to one of the partners for the purpose of checking the tax position of one or more of the other partners whose identities are not known to the officer giving the notice, sub-paragraph (3) of that paragraph (approval of First-tier Tribunal) does not apply. Where a third party notice or a notice under paragraph 5 is given to one of the partners for the purpose of checking the tax position of one or more of the other partners, that partner may not appeal against a requirement in the notice to produce any document that forms part of that partner’s statutory records.
This paragraph applies if the failure or obstruction mentioned in paragraph 39(1) continues after the date on which a penalty is imposed under that paragraph in respect of the failure or obstruction. The person is liable to a further penalty or penalties not exceeding £60 for each subsequent day on which the failure or obstruction continues.
A person must not conceal, destroy or otherwise dispose of, or arrange for the concealment, destruction or disposal of, a document if an officer of Revenue and Customs has informed the person that the document is, or is likely, to be the subject of an information notice addressed to that person (subject to sub-paragraph (2)). Sub-paragraph (1) does not apply if the person acts after—
Where a person becomes liable for a penalty under paragraph 39 or 40, HMRC may— An assessment of a penalty under paragraph 39 or 40 must be made within 12 months of the relevant date. In sub-paragraph (2) “the relevant date” means—
A penalty under paragraph 39 or 40 must be paid— A penalty under paragraph 39 or 40 may be enforced as if it were income tax charged in an assessment and due and payable.
A person is not liable to a penalty under this Schedule in respect of anything in respect of which the person has been convicted of an offence.
Schedule 18 to FA 1998 (company tax returns) is amended as follows.
ITTOIA 2005 is amended as follows.
In the Social Security Administration Act 1992, omit section 121A (recovery of contributions etc in England and Wales).
In Schedule 5 to FA 1996 (landfill tax), omit paragraph 23A (controlled goods agreements).
In Schedule 5 to FA 2001 (aggregates levy: recovery and interest), omit paragraph 14A (controlled goods agreements).
In consequence of the preceding provisions of this Schedule, omit—
paragraph 8 of Schedule 5 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2),
paragraph 6 of Schedule 11 to the Welfare Reform and Pensions Act 1999 (c. 30),
section 5(1) of the National Insurance Contributions and Statutory Payments Act 2004 (c. 3), and
paragraphs 33, 104(2), 114, 116(2), 119, 123, 126(2), 136, 140 and 147(2) of Schedule 13 to the Tribunals, Courts and Enforcement Act 2007 (c. 15).
VERA 1994 is amended as follows.
Schedule 2A (immobilisation, removal and disposal of vehicles) is amended as follows.
TCGA 1992 is amended as follows.
TCGA 1992 is amended as follows.
The amendments made by paragraphs 128 to 146 have effect in relation to transfers of value to which Schedule 4B to TCGA 1992 applies that are made on or after 6 April 2008.
This Schedule has effect for accounting periods beginning on or after 1 April 2008.
FA 1989 is amended as follows. In section 83(2A) (amounts not to be taken into account as receipts of a period of account where profits computed in accordance with Case I of Schedule D), after paragraph (ab) insert—. After section 83YB insert— Omit section 83ZA (contingent loans).
In section 25 of FA 1990 (donations to charities by individuals), after subsection (10) insert—
After Chapter 10 insert—
This paragraph applies where, on or after the relevant date— An integral feature is a pre-commencement integral feature if the seller— The buyer’s expenditure on the integral feature is not qualifying expenditure unless— The “original expenditure”— The “relevant date” has the same meaning as in paragraph 14.
In Schedule 22 (tonnage tax), omit paragraphs 84 and 86.
In Schedule 4 to the Energy Act 2004 (tax exemption for NDA and NDA companies), omit paragraphs 5 and 6.
In FA 2007, omit section 36 (industrial and agricultural buildings allowances: balancing adjustments).
Despite the repeal of Part 3 of CAA 2001 by section 84, the following provisions continue to have effect for the purposes of section 484 of that Act (dredging allowances: definition of qualifying trade)—
section 274(1) (definition of qualifying trade), and
sections 276(3) and 341(4) of that Act (parts of trades and undertakings; meaning of “highway concession”) so far as they relate to the Tables in that section.
Paragraph 14 of Schedule 15 to FA 2003 (transfer of interest in property-investment partnership) is amended as follows. A transfer to which this paragraph applies is a Type A transfer if it takes the form of arrangements entered into under which— A transfer to which this paragraph applies is also a Type A transfer if it takes the form of arrangements entered into under which— Any other transfer to which this paragraph applies is a Type B transfer. In sub-paragraph (5)— The “relevant partnership property”, in relation to a Type B transfer of an interest in a partnership, is every chargeable interest held as partnership property immediately after the transfer, other than—
Schedule 18 to FA 1998 (company tax returns) is amended as follows.
Section 98C of TMA 1970 (penalties for failure to comply with duties under Part 7 of FA 2004) is amended as follows. In subsection (2)— In subsection (3)— In subsection (4), for “313(1)” (in both places) substitute “subsection (1) of section 313 or regulations under subsection (3) of that section”.
In the table in paragraph 2(1) of Schedule 2 to OTA 1975 (management and collection of petroleum revenue tax), omit the entries in respect of section 70(1) and (2) of TMA 1970.
In Schedule 7 to FA 1994 (insurance premium tax), in paragraph 29(1) (evidence by certificate)—
in paragraph (a), after “Act,” insert “or”, and
omit paragraph (c) (and the “or” before it).
In Schedule 6 to FA 2000 (climate change levy), in paragraph 135(1) (evidence by certificate)—
in paragraph (a), after “levy,” insert “or”, and
omit paragraphs (c) and (d).
In consequence of the preceding provisions of this Schedule, omit—
paragraph 21 of Schedule 19 to FA 1994,
section 62(1) of the Social Security Act 1998 (c. 14),
paragraph 32 of Schedule 19 to FA 1998,
paragraph 7(2) and (6) of Schedule 5 to the Social Security (Transfer of Functions, etc.) Act 1999 (c. 2),
section 89(3) of FA 2001, and
paragraph 135(2) of Schedule 6 to ITEPA 2003.
Section 35 (assets held on 31 March 1982) is amended as follows. In subsection (2)— After that subsection insert— In subsection (3)(d), for the words after “any of” substitute “ the no gain/no loss provisions. ” In subsection (4), for “him” substitute “ that person ”. In subsection (5), for “him” (in both places) substitute “ that person ”. In subsection (6), omit— In subsection (7), for “him” substitute “ that person ”. In subsection (9), after “effect” insert “ for the purposes of corporation tax ”. In subsection (10), insert at the end “ for the purposes of capital gains tax and corporation tax ”.
In section 85(11) (disposal of interests in non-resident settlements), for the words from “there would” to the end substitute “ chargeable gains would be treated under section 89(2) or paragraph 8 of Schedule 4C as accruing in the following year of assessment to a beneficiary who received a capital payment from the trustees of the settlement in that year. ”
For the purposes of paragraph 8 of Schedule 4C to TCGA 1992 (and section 87A of that Act as it applies for the purposes of that paragraph), no account is to be taken of any capital payment received before 21 March 2000.
Where the relevant company was a party to an investment life insurance contract immediately before the beginning of the first accounting period of the company beginning on or after that date, the company is to be treated for the purposes of Chapter 2 of Part 13 of ICTA (life policies etc) as having surrendered all the rights under the contract immediately before that date for an amount equal to the carrying value of the contract at that time as recognised for accounting purposes. Any gain arising under Chapter 2 of Part 13 of ICTA by reason of that deemed surrender (“the Chapter 2 gain”)— If, immediately after the related transaction, the company is still a party to the investment life insurance contract, only the relevant fraction of the Chapter 2 gain is brought into account as mentioned in sub-paragraph (2)(b). “The relevant fraction” is— where— P is the amount payable as a result of the related transaction, and SAR is the amount that would have been payable on a surrender of all of the rights under the contract immediately before the related transaction.
In ICTA, for section 444AE substitute—
In section 521 of ITA 2007 (gifts entitling donor to gift aid relief: income tax liability and exemption of charity), after subsection (6) insert—
Paragraph 21 (duty to keep and preserve records) is amended as follows. In sub-paragraph (2), for the words from “for six years” to the end substitute “until the end of the relevant day.” In this paragraph “relevant day” means— In sub-paragraph (3), for “that six year period” substitute “the relevant day”. In sub-paragraph (4), for “that six year period” substitute “the relevant day”. The Commissioners for Her Majesty’s Revenue and Customs may by regulations— Regulations under this paragraph may— In sub-paragraph (6), omit the first sentence.
After that section insert—
For section 87 substitute—
A capital payment received before 6 April 2008 is not within paragraph 9(4) of Schedule 4C to TCGA 1992 (if it otherwise would be).
This paragraph applies where— In sub-paragraph (1)(d) “the relevant amount” means— No amount is to be brought into account as a credit by virtue of paragraph 2 in relation to the contract except to the extent that the aggregate of— is greater than the excess mentioned in sub-paragraph (1)(d).
In consequence of paragraphs 1 and 2, omit—
paragraph 2(2A) of Schedule 11 to FA 1996,
paragraph 3 of Schedule 33 to FA 2003,
paragraph 8 of Schedule 11 to FA 2006, and
paragraph 1 of Schedule 10 to FA 2007.
Paragraph 22 (preservation of information instead of original records) is amended as follows. The duty under paragraph 21 to preserve records may be discharged— subject to sub-paragraph (3) and any conditions or exceptions specified in writing by the Commissioners for Her Majesty’s Revenue and Customs. Omit sub-paragraph (2). In sub-paragraph (3), for “The records excluded from sub-paragraph (1) are” substitute “Sub-paragraph (1)(b) does not apply in the case of the following kinds of records”. Accordingly, in the heading before that paragraph, for “instead of original records” substitute “etc”.
In section 55(5) (indexation allowance: assets acquired on no gain/no loss disposal), for “enactments specified in section 35(3)(d)” substitute “ no gain/no loss provisions ”.
Section 88 (gains of dual resident settlements) is amended as follows. For subsection (2) substitute— Omit subsection (7).
Paragraph 124 applies in relation to chargeable gains treated under paragraph 8 of Schedule 4C to TCGA 1992 as accruing as it applies in relation to chargeable gains treated under section 87 as accruing.
This paragraph applies where— No amount is to be brought into account as a debit by virtue of paragraph 2 in relation to the contract except to the extent that the aggregate of— is greater than the excess mentioned in sub-paragraph (1)(c).
The amendments made by paragraphs 1 to 3 have effect in relation to periods of account beginning on or after 1 January 2008. Where, at the end of the last period of account of an insurance company before the first beginning on or after 1 January 2008 (“the initial period of account”) the company has unrepaid contingent loan liabilities, sections 83YC and 83YD of FA 1989, as inserted by paragraph 1, have effect as follows. Those sections have effect as if— For the purposes of sub-paragraph (2), subsection (3) of section 83ZA of FA 1989 applies for determining whether the company has unrepaid contingent loan liabilities; and for the purposes of sub-paragraph (3)(a) the amount of the unrepaid contingent loan liabilities is the amount given by subsection (7) of that section for the period of account preceding the initial period of account. In sub-paragraph (3)(b)— AA is the amount which would have been allowable for the period of account by virtue of subsection (13) of section 83ZA of FA 1989, and R is the amount which would have been taken into account as a receipt of the period of account under subsection (6)(b) of that section (on the assumption that there were no reduction under subsection (7)(a) of that section). Where by virtue of sub-paragraph (3)(b) an amount (“the contingent loan amount”) is included in the relevant amount for a period of account for the purposes of subsection (2) of section 83YD of FA 1989 by reason of any repayment of a money debt, a payment brought into account as mentioned in subsection (3)(a) of that section in respect of the money debt for the period of account does not form part of the relevant amount for that period of account for those purposes except to the extent that it exceeds the contingent loan amount.
In section 73(1) (death of life tenant: exclusion of chargeable gain), for “6th April 1965” substitute “ 31 March 1982 ”.
Section 89 (migrant settlements) is amended as follows. In subsection (1), for “section 87 if” substitute “ sections 87 and 87A if ”. For subsections (2) and (3) substitute—
This paragraph applies for the tax year 2008-09 or any subsequent tax year (“the relevant tax year”) if— For the purposes of paragraph 8 of Schedule 4C to TCGA 1992 as it applies for the relevant tax year (and section 87A of that Act as it applies for those purposes), no account is to be taken of the capital payment.
In section 175(2C) (replacement of business assets by member of group), for “enactments specified in section 35(3)(d)” substitute “ no gain/no loss provisions ”.
For section 90 substitute—
In section 288 (interpretation), after subsection (3) insert—
Section 91 (increase in tax payable under section 87 or 89(2)) is amended as follows. For subsection (1) substitute— In subsection (5)(a), for the words from “year” to the end (excluding the “and”) substitute “ tax year immediately after the relevant tax year, ”. Omit subsection (8).
Schedule 2 (assets held on 6 April 1965) is amended as follows. Omit paragraph 1(3). In paragraph 4— In paragraph 17(3) omit— Omit paragraph 22.
Omit sections 92 to 95 (matching).
Schedule 3 (assets held on 31 March 1982) is amended as follows. In paragraph 1— In paragraph 2(1) and (3), omit “58 or”.
Omit—
in FA 1998, section 130(1) and (4), and paragraph 6(3) and (4) of Schedule 21,
in FA 2002, paragraph 6 of Schedule 11,
in FA 2003, section 163(3), and
in FA 2006, paragraphs 34(2)(d) and 36(2)(a) of Schedule 12.
In paragraph 7 of Schedule 4 (deferred charges on pre-31 March 1982 gains), for “enactments specified in section 35(3)(d)” substitute “ no gain/no loss provisions ”.
In paragraph 7 of Schedule 4ZA (sub-fund settlements), for “sections 104(1) and 109(2)(a)” substitute “ section 104(1) ”.
In paragraph 12(b) of Schedule 7A (restriction on set-off or pre-entry losses), for “enactment specified in section 35(3)(d)” substitute “ of the no gain/no loss provisions ”.
FA 1997 is amended as follows. In section 89(8)(a) (earn-out rights), for “enactments specified in section 35(3)(d) of that Act” substitute “ no gain/no loss provisions (within the meaning of that Act: see section 288(3A) of that Act) ”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In consequence of paragraphs 57 to 69, omit—
in F(No.2)A 1992—
section 46(2),
paragraph 21(2) of Schedule 9, and
paragraph 5(9) of Schedule 17,
in FA 1994—
paragraph 2(2) of Schedule 24, and
paragraph 4(3) of Schedule 25,
paragraph 2(3) of Schedule 4 to the Coal Industry Act 1994 (c. 21),
paragraph 3 of Schedule 7 to the Broadcasting Act 1996 (c. 55),
in the Transport Act 2000 (c. 38)—
paragraph 2(3) of Schedule 7, and
paragraph 37 of Schedule 26,
paragraph 36 of Schedule 9 to the Energy Act 2004 (c. 20),
paragraph 33 of Schedule 10 to the Railways Act 2005 (c. 14),
section 59(2) of F(No.2)A 2005,
paragraph 14(3) of Schedule 9 to FA 2007, and
paragraph 11 of Schedule 7 to the Consumers, Estate Agents and Redress Act 2007 (c. 17).
The amendments made by paragraphs 57 to 70 have effect in relation to disposals on or after 6 April 2008.
In section 465A(1)(b) (gains from contracts for life insurance etc: amounts for which individuals liable to be treated as highest part of total income), for “savings rate” substitute “ basic rate ”.
In paragraph 26 (excluded activities)—
in sub-paragraph (1), after paragraph (h) insert—, and
paragraph 30A (shipbuilding); paragraph 30B (producing coal); paragraph 30C (producing steel);
This paragraph applies if— In calculating the profits of the trade— The cost is treated as being incurred on the date of the acquisition. This paragraph is subject to paragraph 10.
Schedule 13 (instruments chargeable to stamp duty and rates of duty) is amended as follows. In paragraph 1(5) (treasury shares), for the words from “any instrument” to the end substitute “sub-paragraph (1) does not apply to any instrument to which sub-paragraph (6) applies.” In Part 3 (other instruments chargeable to stamp duty and rates of duty) omit—
In paragraph 36(5) (determination of tax payable if no return delivered), for “five years” substitute “3 years”.
In section 301(3) (claims for repayment of tax payable in connection with sale with right to reconveyance), for “6 years” substitute “4 years”.
Paragraph 1 (immobilisation) is amended as follows. In sub-paragraph (1), for “on a public road” substitute “in any place other than a place to which this Schedule does not apply”. This Schedule does not apply to— In sub-paragraph (2)— The second requirement is that— The conditions prescribed under sub-paragraph (6)(c) may include a condition that any of the following declarations is made— In sub-paragraph (6A)(a) “appropriate licence”, in relation to a vehicle, means— For the purposes of sub-paragraph (6A)(b)—
In section 466(2) (gains from contracts for life insurance etc: personal representatives), for “savings rate” substitute “ basic rate ”.
After paragraph 30 insert—
Schedule 15 (stamp duty: bearer instruments) is amended as follows. Omit paragraph 6 (fixed duty on instrument given in substitution for a like instrument stamped ad valorem). At the beginning of Part 2 (exemptions) insert— In paragraph 20 (variation of original terms or conditions), for paragraph (b) substitute—. In paragraph 26 (instruments treated as duly stamped), omit paragraph (b) (and the “or” before it).
In paragraph 37(4) (determination of tax payable if notice complied with in part), for “five years” substitute “3 years”.
In section 302(3) (claims for repayment of tax payable in connection with sale and leaseback transactions), for “6 years” substitute “4 years”.
In paragraph 2(4) (offences connected with immobilisation), for paragraphs (a) and (b) substitute—.
In section 467(7) (gains from contracts for life insurance etc: UK resident trustees), for “savings rate” substitute “ basic rate ”.
In paragraph 40(3) (time limit for self-assessment superseding determination), for “five years” substitute “3 years”.
In section 840A(1) (claims for relief for backdated pensions charged on arising basis) (inserted by Schedule 7 to this Act), for “on or before the fifth anniversary of the normal self-assessment filing date for” substitute “not more than 4 years after the end of”.
Paragraph 3 (removal and disposal of vehicles) is amended as follows. In sub-paragraph (1)(a)(i), for “on a public road” substitute “in any place other than a place to which this Schedule does not apply”. In sub-paragraph (2), after “direction, may” insert “enter the place and”. In sub-paragraph (7), for paragraphs (c) and (d) substitute—
Section 530 (gains from contracts for life insurance etc: income tax treated as paid) is amended as follows. In subsection (1), for “savings rate” substitute “ basic rate ”. Omit subsection (6).
Paragraph 43 (fraudulent or negligent conduct) is amended as follows. For “is attributable to fraudulent or negligent conduct on the part of” substitute “was brought about carelessly or deliberately by”. Accordingly, for the heading before the paragraph substitute “Loss of tax brought about carelessly or deliberately”.
In paragraph 4(1) (offences as to securing possession of vehicles), for paragraphs (a) and (b) substitute—.
In section 535(3) (gains from contracts for life insurance etc: top slicing relief)—
for “SRL” in both places substitute “ BRL ”, and
for “savings rate” substitute “ basic rate ”.
Paragraph 46 (general time limits for assessments) is amended as follows. In sub-paragraph (1), for “six years” substitute “4 years”. An assessment in a case involving a loss of tax brought about carelessly by the company (or a related person) may be made at any time not more than 6 years after the end of the accounting period to which it relates (subject to sub-paragraph (2A) and to any other provision of the Taxes Acts allowing a longer period). An assessment in a case involving a loss of tax— may be made at any time not more than 20 years after the end of the accounting period to which it relates (subject to any provision of the Taxes Acts allowing a longer period). In this paragraph “related person”, in relation to a company, means—
In section 536(1) (gains from contracts for life insurance etc: top slicing relieved liability-one chargeable event), for “savings rate” substitute “ basic rate ”.
In paragraph 51(1)(c) (relief in case of mistake in return), for “six years” substitute “4 years”.
In section 537 (gains from contracts for life insurance etc: top slicing relieved liability-two or more chargeable events), for “savings rate” substitute “ basic rate ”.
Paragraph 53 (time limit for recovery of excessive payments etc) is amended as follows. In sub-paragraph (1), for “six year” substitute “4 year”. In sub-paragraph (2), for “paragraph 46(2) (time limit for assessment in case of fraud or negligence)” substitute “paragraph 46(2) and (2A) (time limit for assessment in case of loss of tax brought about carelessly or deliberately)”.
In section 539(5) (gains from contracts for life insurance etc: relief for deficiencies)—
omit Step 2,
in Step 3, for “2” substitute “ 1 ” and omit “other”, and
in Step 5, omit the sentence relating to Step 2.
In paragraph 55 (general time limit for making claims), for “six years” substitute “4 years”.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In paragraph 61(2) (consequential claims etc arising out of certain Revenue amendments or assessments), for “fraudulent or negligent conduct on the part of” substitute “a loss of tax brought about carelessly or deliberately by”.
In section 679(3) (income from which basic amounts are treated as paid), omit paragraph (b) (apart from the “and” at the end).
Paragraph 65 (consequential claims) is amended as follows. In sub-paragraph (1), for “fraudulent or negligent conduct on the part of” substitute “a loss of tax brought about carelessly or deliberately by”. Accordingly, in the heading before the paragraph, for “fraud or negligence” substitute “loss of tax brought about carelessly or deliberately”.
In section 680(4) (income treated as bearing income tax), for “savings rate” substitute “ basic rate ”.
Section 680A (income treated as savings income or dividend income) is amended as follows. In subsection (1)— Omit subsection (2). In subsection (3), for the words from the beginning to “it” substitute “ The income ”. In subsection (4)— Omit subsection (5). In subsection (6), for the words from the beginning to “it” substitute “ The income ”. Accordingly, in the heading omit “savings income or”.
Schedule 4 (index of defined expressions) is amended as follows. starting rate for savings section 7 of ITA 2007 (as applied by section 989 of that Act) starting rate limit for savings section 12 of ITA 2007 (as applied by section 989 of that Act) Omit the entry relating to “savings rate”.
Schedule 36 contains provision about the powers of officers of Revenue and Customs to obtain information and to inspect businesses.
That Schedule comes into force on such day as the Treasury may by order made by statutory instrument appoint.
An order under subsection (2) may contain transitional provision and savings.
This section applies to any enactment that, in connection with an HMRC matter—
requires a person to produce a document or cause a document to be produced,
requires a person to permit the Commissioners or an officer of Revenue and Customs—
to inspect a document, or
to make or take copies of or extracts from or remove a document,
makes provision about penalties or offences in connection with the production or inspection of documents, including in connection with the falsification of or failure to produce or permit the inspection of documents, or
makes any other provision in connection with a requirement mentioned in paragraph (a) or (b).
An enactment to which this section applies has effect as if—
any reference in the enactment to a document were a reference to anything in which information of any description is recorded, and
any reference in the enactment to a copy of a document were a reference to anything onto which information recorded in the document has been copied, by whatever means and whether directly or indirectly.
An authorised person may, at any reasonable time, obtain access to, and inspect and check the operation of, any computer and any associated apparatus or material which is or has been used in connection with a relevant document.
In subsection (3) “relevant document” means a document that a person has been, or may be, required pursuant to an enactment to which this section applies—
to produce or cause to be produced, or
to permit the Commissioners or an officer of Revenue and Customs to inspect, to make or take copies of or extracts from or to remove.
An authorised person may require— to provide the authorised person with such reasonable assistance as may be required for the purposes of subsection (3).
the person by whom or on whose behalf the computer is or has been so used, or
any person having charge of, or otherwise concerned with the operation of, the computer, apparatus or material,
Any person who— is liable to a penalty of £300.
obstructs the exercise of a power conferred by this section, or
fails to comply within a reasonable time with a requirement under subsection (5),
Paragraphs 45 to 49 and 52 of Schedule 36 (assessment of and appeals against penalties) apply in relation to a penalty under this section as they apply in relation to a penalty under paragraph 39 of that Schedule.
Omit the following—
section 10 of FA 1985 (production of computer records etc in connection with assigned matters),
section 127 of FA 1988 (production of computer records etc in connection with the Taxes Acts), and
paragraphs 11(2) to (4) and 13(2) and (3) of Schedule 1 to the Civil Evidence Act 1995 (c. 38).
In this section—
“HMRC matter” means any matter connected with a function of the Commissioners or an officer of Revenue and Customs.
In section 575 of ITEPA 2003 (foreign pensions: taxable pension income), omit subsection (4).
Expressions used in this Part of this Schedule and in Part 2 of CAA 2001 have the same meaning in this Part of this Schedule as in that Part of that Act.
Where a document (or a copy of a document) is produced to, or inspected by, an officer of Revenue and Customs, such an officer may take copies of, or make extracts from, the document.
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, unless the notice is given by, or with the agreement of, an authorised officer.
An information notice does not require a person— For the purpose of this Schedule, information or a document is privileged if it is information or a document in respect of which a claim to legal professional privilege, or (in Scotland) to confidentiality of communications as between client and professional legal adviser, could be maintained in legal proceedings. The Commissioners may by regulations make provision for the resolution by the First-tier Tribunal of disputes as to whether any information or document is privileged. The regulations may, in particular, make provision as to—
Paragraphs 24(1) and 25(1) do not have effect in relation to— In the case of a notice given under paragraph 5, paragraphs 24(1) and 25(1) do not have effect in relation to— Paragraphs 24(1) and 25(1) are not disapplied by sub-paragraph (1) or (2) if the information in question has already been provided, or a document containing the information in question has already been produced, to an officer of Revenue and Customs.
Where a person is given a third party notice, the person may appeal to the First-tier Tribunal against the notice or any requirement in the notice on the ground that it would be unduly onerous to comply with the notice or requirement. Sub-paragraph (1) does not apply to a requirement in a third party notice to provide any information, or produce any document, that forms part of the taxpayer’s statutory records. Sub-paragraph (1) does not apply if the First-tier Tribunal approved the giving of the notice in accordance with paragraph 3.
This Part of this Schedule has effect subject to Part 6 of this Schedule.
TMA 1970 is amended as follows.
ITTOIA 2005 is amended as follows.
This paragraph applies where paragraph 24(1) or 25(1) is disapplied in relation to a document by paragraph 26(1) or (2). An information notice that requires the document to be produced has effect as if it required any part or parts of the document containing the information mentioned in paragraph 26(1) or (2) to be produced.
Omit section 19A (power to call for documents for purposes of enquiries).
In section 260(1) (overview of Part 3)—
at the end of paragraph (d) insert “ and ”, and
omit paragraph (f) (and the “and” before it).
Omit section 20 (power to call for documents of taxpayer and others).
In section 269 (territorial scope of charge to tax), omit subsections (3) and (4).
Section 20B (restrictions on powers to call for documents under ss20 and 20A) is amended as follows. In the heading, for “ss 20 and” substitute “section”. In subsection (1)— Omit subsections (1A) and (1B). In subsection (2), omit from the beginning to “taxpayer; and”. In subsection (3)— In subsection (4)— Omit subsections (5), (6) and (7). In subsection (8), omit “section 20(3) or (8A) or”. Omit subsections (9) to (14).
Omit Chapter 11 of Part 3 (overseas property income).
Section 20BB (falsification etc. of documents) is amended as follows. In subsection (1)(a), omit “20 or”. In subsection (2)(b), omit “or, in a case within section 20(3) or (8A) above, inspected”.
In section 829 (overview of Part 8), for paragraph (a) substitute—.
Section 20D (interpretation) is amended as follows. In subsection (2), for “sections 20 and” substitute “section”. Omit subsection (3).
Section 830 (meaning of “relevant foreign income”) is amended as follows. In subsection (1), for the words from “which” to the end substitutewhich— In subsection (2), omit paragraph (d).
In section 29(6)(c) (assessment where loss of tax discovered), omit “, whether in pursuance of a notice under section 19A of this Act or otherwise”.
Omit section 831 (claims for relevant foreign income to be charged on remittance basis).
Omit section 97AA (failure to produce documents under section 19A).
For section 832 substitute—
In section 98 (penalties), in the Table—
in the first column, omit the entry for section 767C of ICTA, and
in the second column, omit the entry for section 28(2) of F(No.2)A 1992.
Omit sections 833 to 837.
In section 100(2) (exclusions from provisions relating to determination of penalties under the Taxes Acts), insert at the endor
Section 107A (relevant trustees) is amended as follows. In subsection (2)(a), for “, 95 or 97AA” substitute ‘or 95’. In subsection (3)(a), omit “or 97AA(1)(b)”.
In section 118 (interpretation), in the definition of “tax”, omit “20,”.
In Schedule 1A (claims etc. not included in returns), omit paragraphs 6 and 6A (power to call for documents for purposes of enquiries and power to appeal against notice to produce documents).
TCGA 1992 is amended as follows.
The amendments made by paragraphs 92 to 97 have effect for the tax year 2008-09 and subsequent tax years.
TCGA 1992 is amended as follows.
In section 46B(4)(c) of TMA 1970 (questions to be determined by Special Commissioners), for “sections 720, 727 and 731” substitute “any provision of Chapter 2 of Part 13”.
Omit—
in FA 1989, section 90 and Schedule 9,
in FA 1991, section 76(1),
in F(No.2)A 1992, paragraph 15 of Schedule 9,
in FA 1995, section 55(8),
in FA 1996, section 168(4) to (6) and paragraph 1A of Schedule 9,
in FA 1997, section 79,
in FA 1998, sections 88 and 89 and paragraphs 1 to 4 of Schedule 14,
in FA 1999, section 80 and paragraphs 16 and 18(3) of Schedule 4,
in FA 2000, in section 46(2A), “547(1)(b)”,
in FA 2001, section 83(2) and Part 1 of Schedule 28,
in FA 2002, section 87 and paragraph 21 of Schedule 25,
in FA 2003, section 171 and Schedule 34,
in FA 2004, paragraphs 25 and 27 of Schedule 35,
in ITTOIA 2005, paragraph (b) of section 473(2) and the “or” before it, paragraphs 268(1) and (2), 269 and 493 of Schedule 1 and paragraph 86(3) of Schedule 2,
in ITA 2007, paragraphs 111 and 141 of Schedule 1, and
in FA 2007, section 29(1), paragraphs 45 and 46 of Schedule 7 and paragraph 6(3) of Schedule 10.
In section 83XA of FA 1989 (structural assets), omit—
subsections (10) and (11), and
in subsection (15), “or (10)”.
In section 431(2) of ICTA (interpretative provisions about insurance companies), in the definition of “foreign currency assets”, for “three months” substitute “one year”. The amendment made by sub-paragraph (1) has effect in relation to periods of account beginning on or after 1 January 2007 but before 1 January 2008.
Section 826 of ICTA (interest on tax overpaid) is amended as follows. In subsection (1), after paragraph (f) insert, or After subsection (3C) insert— In subsection (8A)(b)(ii), after “film tax credit” insert “or first-year tax credit under Schedule A1 to the Capital Allowances Act”. In subsection (8BA), after “film tax credit” (in both places) insert “or first-year tax credit under Schedule A1 to the Capital Allowances Act”.
The amendments made by paragraph 2 have effect in relation to assignments or agreements to assign made on or after 10 October 2007. The amendments made by paragraph 3 have effect in relation to surrenders and agreements to surrender made on or after that date. The amendments made by paragraphs 4, 7(2), 8, 10 and 11 to 14 have effect in relation to deaths occurring on or after 6 April 2008.
In section 13(6) of FA 1999 (VAT and gold)—
for “(6)” substitute “(4)”,
after “above” insert “, and to records kept in pursuance of such regulations,”, and
insert at the end “and to records kept in pursuance of that paragraph”.
A penalty is payable by a person (P) where P fails to comply with an obligation specified in the Table below (a “relevant obligation”). Tax to which obligation relates Obligation Income tax and capital gains tax Obligation under section 7 of TMA 1970 (obligation to give notice of liability to income tax or capital gains tax). Corporation tax Obligation under paragraph 2 of Schedule 18 to FA 1998 (obligation to give notice of chargeability to corporation tax). Value added tax Obligations under paragraphs 5, 6, 7 and 14(2) and (3) of Schedule 1 to VATA 1994 (obligations to notify liability to register and notify material change in nature of supplies made by person exempted from registration). Value added tax Obligation under paragraph 3 of Schedule 2 to VATA 1994 (obligation to notify liability to register). Value added tax Obligations under paragraphs 3 and 8(2) of Schedule 3 to VATA 1994 (obligations to notify liability to register and notify acquisition affecting exemption from registration). Value added tax Obligations under paragraphs 3, 4 and 7(2) and (3) of Schedule 3A to VATA 1994 (obligations to notify liability to register and notify relevant change in supplies made by person exempted from registration). Value added tax Obligation under regulations under paragraph 2(4) of Schedule 11 to VATA 1994 (obligation to give notification of acquisition of goods from another member State). Insurance premium tax Obligations under section 53(1) and (2) of FA 1994 (obligations to register in respect of receipt of premiums in course of taxable business and notify intended receipt of premiums in course of taxable business). Insurance premium tax Obligations under section 53AA(1) and (3) of FA 1994 (obligations to register as taxable intermediary and notify intention to charge taxable intermediary’s fees). Aggregates levy Obligations under section 24(2) of, and paragraph 1 of Schedule 4 to, FA 2001 (obligations to register in respect of carrying out of taxable activities and notify intention of carrying out such activities). Climate change levy Obligations under paragraphs 53 and 55 of Schedule 6 to FA 2000 (obligations to register in respect of taxable supplies and notify intention to make, or have made, taxable supply). Landfill tax Obligations under section 47(2) and (3) of FA 1996 (obligations to register in respect of carrying out of taxable activities and notify intention of carrying out such activities). Air passenger duty Obligation under section 33(4) of FA 1994 (obligation to give notice of liability to register to operate chargeable aircraft). Alcohol liquor duties Obligation to be authorised and registered to obtain and use duty stamps under regulations under paragraph 4 of Schedule 2A to ALDA 1979 (duty stamps). Alcohol liquor duties Obligations under sections 12(1), 47(1), 54(2), 55(2) and 62(2) of ALDA 1979 (obligations to hold licence to manufacture spirits, register to brew beer, hold licence to produce wine or made-wine and register to make cider). Alcohol liquor duties Obligation to have plant and processes approved for the manufacture of spirits under regulations under section 15(6) of ALDA 1979 (distillers' warehouses). Tobacco products duty Obligation to manufacture tobacco products only on premises registered under regulations under section 7 of TPDA 1979 (management of tobacco products duty). Hydrocarbon oil duties Obligation to make entry of premises intended to be used for production of oil under regulations under section 21 of HODA 1979 (administration and enforcement). Excise duties Obligation to receive, deposit or hold duty suspended excise goods only in premises approved under regulations under section 92 of CEMA 1979 (approval of warehouses). Excise duties Obligation to receive duty suspended excise goods only if approved or registered (or approved and registered) as a REDS or an Occasional Importer under regulations under section 100G or 100H of CEMA 1979 (registered excise dealers and shippers etc). Excise duties Obligation to receive, deposit or hold duty suspended excise goods only if approved or registered (or approved and registered) as a registered owner, a duty representative, a registered mobile operator or a fiscal representative of a registered mobile operator or an authorised warehousekeeper under regulations under section 100G or 100H of CEMA 1979 (registered excise dealers and shippers etc). General betting duty Obligations under paragraph 4(1) to (3) of Schedule 1 to BGDA 1981 (obligation to notify intention to carry on general betting business and make entry of, or notify, premises). Pool betting duty Obligations under paragraphs 4(2) and 5(1) of Schedule 1 to BGDA 1981 (obligation to make entry and hold permit for carrying on pool betting business). Bingo duty Obligations under paragraph 10(1) and (1A) of Schedule 3 to BGDA 1981 (obligation to notify and register in respect of bingo-promotion). Lottery duty Obligation under section 29(1) of FA 1993 (obligation to register in respect of promotion of lotteries). Gaming duty Obligations under paragraphs 3 and 6 of Schedule 1 to FA 1997 (obligations to register in respect of gaming and to notify premises). Remote gaming duty Obligation to register under regulations under section 26J of BGDA 1981 (facilities for remote gaming). Amusement machine licence duty Obligation under section 21 of BGDA 1981 (obligation to licence amusement machine or premises on which amusement machine is provided for play).
A penalty is payable by a person (P) where— In sub-paragraph (1)—
“The potential lost revenue” in respect of a failure to comply with a relevant obligation is as follows. In the case of a relevant obligation relating to income tax or capital gains tax and a tax year, the potential lost revenue is so much of any income tax or capital gains tax to which P is liable in respect of the tax year as by reason of the failure is unpaid on 31 January following the tax year. In the case of a relevant obligation relating to corporation tax and an accounting period, the potential lost revenue is (subject to sub-paragraph (4)) so much of any corporation tax to which P is liable in respect of the accounting period as by reason of the failure is unpaid 12 months after the end of the accounting period. In computing the amount of that tax no account shall be taken of any relief under subsection (4) of section 419 of ICTA (relief in respect of repayment etc of loan) which is deferred under subsection (4A) of that section. In any case where the failure is a failure to comply with the obligation under paragraph 2(4) of Schedule 11 to VATA 1994, the potential lost revenue is the value added tax on the acquisition to which the failure relates. In the case of any other relevant obligation relating to value added tax, the potential lost revenue is the amount of the value added tax (if any) for which P is, or but for any exemption from registration would be, liable for the relevant period (see sub-paragraph (7)), but subject to sub-paragraph (8). “The relevant period” is— But the amount mentioned in sub-paragraph (6) is reduced— In the case of a relevant obligation under any provision relating to insurance premium tax, aggregates levy, climate change levy, landfill tax or air passenger duty, the potential lost revenue is the amount of the tax (if any) for which P is liable for the period— In the case of a failure to comply with a relevant obligation relating to any other tax, the potential lost revenue is the amount of any tax which is unpaid by reason of the failure.
The amount of a penalty for which P is liable under any of paragraphs 1 to 4 shall be reduced by the amount of any other penalty incurred by P, or any surcharge for late payment of tax imposed on P, if the amount of the penalty or surcharge is determined by reference to the same tax liability. If P is liable to a penalty under section 9 of FA 1994 in respect of a failure to comply with a relevant obligation, the amount of any penalty payable under paragraph 1 in respect of the failure is to be reduced by the amount of the penalty under that section. Where penalties are imposed under paragraph 3(1) and (2) in respect of the same act or use, the aggregate of the amounts of the penalties must not exceed 100% of the potential lost revenue.
In section 2(7)(a) (chargeable gains and allowable losses), omit “77 or”.
Paragraphs 120 and 121 apply in relation to offshore income gains as if—
references to section 2(2) amounts were to OIG amounts,
references to chargeable gains were to offshore income gains, and
Step 1 of paragraph 120(2) provided that OIG amounts are to be calculated in accordance with—
section 762(2) of ICTA (the reference in the second sentence of that Step to section 87(4) of TCGA 1992 being read as a reference to section 762(2) of ICTA), or
section 87(5) of TCGA 1992 as applied by section 762(3) of ICTA.
Section 85A (transfers of value: attribution of gains to beneficiaries and treatment of losses) is amended as follows. After subsection (2) insert— For subsection (3) substitute—
In section 830(4) of ITTOIA 2005 (meaning of “relevant foreign income”), after paragraph (h) insertand
In section 431(2) of ICTA (interpretative provisions relating to insurance companies), in the definition of “free assets amount”, after “long-term business” insert “, other than any structural assets (within the meaning of section 83XA of the Finance Act 1989),”. The amendment made by sub-paragraph (1) has effect for periods of account beginning on or after 1 January 2007.
In consequence of the amendments made by paragraph 2 omit—
section 105(4)(b) of FA 1995, and
section 124(2) and (6) of FA 1996.
In the case of the making of an unauthorised issue of an invoice showing VAT, the potential lost revenue is the amount shown on the invoice as value added tax or the amount to be taken as representing value added tax.
Omit section 6 (rates: special cases).
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A settlement is “within section 87” for a tax year if— The reference in subsection (4)(b) to chargeable gains treated as accruing includes offshore income gains treated as arising.
ITA 2007 is amended as follows.
In the case of— the potential lost revenue is the amount of the duty which may be assessed as due.
the doing of an act which enables HMRC to assess an amount of duty as due under a relevant excise provision, or
supplying a product knowing that it will be used in a way which enables HMRC to assess an amount as duty due from another person under a relevant excise provision,
In section 13(7A) (attribution of gains to members of non-resident companies: ordering rules), omit paragraphs (b) to (d).
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Schedule 4C (transfers of value: attribution of gains to beneficiaries) is amended as follows.
In section 720(4) (transfer of assets abroad: charge where power to enjoy income), after “abroad)” insert “and section 726 (non-UK domiciled individuals to whom remittance basis applies)”.
In the case of acquiring possession of, or being concerned in dealing with, goods the payment of duty on which is outstanding and has not been deferred, the potential lost revenue is an amount equal to the amount of duty due on the goods.
Omit sections 77 to 79 (charge on settlor with interest in settlement).
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The transferor settlement is regarded for the purposes of this Schedule as having a “Schedule 4C pool”. The Schedule 4C pool contains the section 2(2) amounts for the settlement that are outstanding at the end of the tax year in which the original transfer is made (see paragraph 1A). The section 2(2) amount for that tax year is increased by—
For section 726 substitute—
In calculating potential lost revenue in respect of a relevant act or failure on the part of P no account is to be taken of the fact that a potential loss of revenue from P is or may be balanced by a potential over-payment by another person (except to the extent that an enactment requires or permits a person’s tax liability to be adjusted by reference to P's). In this Schedule “a relevant act or failure” means—
Omit section 88(6) (gains of dual resident settlements: sections 77 to 79 to be ignored).
After that paragraph insert—
In section 727 (transfer of assets abroad: charge where capital sums received), after subsection (3) insert—
Schedule 4A (disposal of interest in settled property: deemed disposal of underlying assets) is amended as follows. In paragraph 7— In paragraph 12—
In paragraph 4(2) (chargeable amount: non-resident settlement), at the end insert “(and had made the disposals which Schedule 4B treats them as having made)”.
For section 730 substitute—
Schedule 4B (transfers of value by trustees linked with trustee borrowing) is amended as follows. In paragraph 1(1), omit “77,”. In paragraph 3, omit— and in the heading before it omit “77,”.
In paragraph 5(2)(a) (chargeable amount: dual resident settlement), after “apply” insert “(and the disposals which Schedule 4B treats them as having made were made)”.
In section 731 (transfer of assets abroad: charge where benefit received), after subsection (2) insert—
Omit paragraph 6(3) of Schedule 4C (attribution of gains to beneficiaries: sections 77 to 79 to be ignored).
Omit paragraph 7A (and the heading before it).
For section 735 substitute—
In paragraph 1(1) of Schedule 5 (construction of section 86(1)(e)), for “sections 3 and 77 to 79” substitute “ section 3 ”.
For paragraph 7B substitute—
The amendments made by paragraphs 161 to 169 have effect for the tax year 2008-09 and subsequent tax years.
Chapter 4 of Part 2 of FA 2005 (trusts with vulnerable beneficiary) is amended as follows.
For paragraph 8 substitute—
In section 23(4) (introduction), for “33” substitute “ 32 ”.
After paragraph 8A insert—
In section 26(1) (income tax: amount of relief), in the definition of VQTI, after “extra” insert “ income ”.
Omit paragraphs 8B and 8C (including the heading before paragraph 8B).
Section 28 (vulnerable person's liability: VQTI) is amended as follows. In subsection (1), after “total” (in both cases) insert “ income ”. In subsection (2), omit “and capital gains tax”. In subsection (4), omit paragraph (b) and the “and” before it. In subsection (7), omit paragraph (b) and the “and” before it.
For paragraph 9 (and the heading before it) substitute—
In section 30 (qualifying trust gains: special capital gains tax treatment), omit subsections (1A) and (3A).
In paragraph 10 (residence of trustees from whom capital payment received)—
in sub-paragraph (1), for “sub-paragraph (2) below” substitute “paragraph 9(3)”, and
omit sub-paragraphs (2) and (3).
Section 31 (UK resident vulnerable persons: section 77 treatment) is amended as follows. For subsections (2) and (3) substitute— In the heading, for “section 77 treatment” substitute “ amount of relief ”.
Paragraph 12 (attribution of gains to settlor in section 10A cases) is amended as follows. This paragraph applies if— The amount of chargeable gains treated as mentioned in sub-paragraph (1)(a) as accruing to the settlor in the year of return is limited to the section 2(2) amount referred to in sub-paragraph (1)(b).
Section 32 (non-UK resident vulnerable persons: amount of relief) is amended as follows In subsection (2), for the definition of VQTG substitute— “ VQTG is the amount arrived at under subsection (3). ” After that subsection insert—
In paragraph 12A(3), for “87(4)” substitute “87(2)”.
Omit section 33 (non-UK resident vulnerable person's liability: VQTG).
Paragraph 13 (increase in tax payable under this Schedule) is amended as follows. This paragraph applies if— Where part of a capital payment is matched, references in sub-paragraphs (2) and (3) to the capital payment are to the part matched. In sub-paragraph (5)(a), for the words from “year of assessment” to the end (excluding the “and”) substitute “tax year immediately after the relevant tax year,”.
In section 41(3) (interpretation), for “33” substitute “ 32 ”.
Omit paragraph 3 and 6(2) and (3) of Schedule 29 to FA 2003.
Schedule 1 (non-UK resident vulnerable persons: interpretation) is amended as follows. Omit paragraphs 1 and 2. Omit paragraph 4. In paragraph 7(1), for “paragraphs 4 and 6” substitute “ paragraph 6 ”.
In consequence of section 8 and paragraphs 1 to 20, omit—
paragraphs 27 to 29 of Schedule 17 to FA 1995,
paragraphs 24 and 25 of Schedule 4 to F(No.2)A 1997,
in FA 1998—
section 120, and
paragraph 6(1) of Schedule 21,
section 26 of FA 1999,
section 37 of FA 2000,
paragraph 3 of Schedule 11 to FA 2002,
paragraph 2 of Schedule 21 to FA 2004,
paragraphs 427 and 428 of Schedule 1 to ITTOIA 2005,
section 44(2) of FA 2005,
paragraphs 3, 13, 29, 31 and 48(1) of Schedule 12 to FA 2006, and
paragraphs 295, 296 and 301 of Schedule 1 to ITA 2007.
The amendments made by paragraphs 1 to 21 have effect for the tax year 2008-09 and subsequent tax years.
the Debt Management Account,
an Exchequer account, or
TMA 1970 is amended as follows.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ICTA is amended as follows.
The amendments made by this Schedule— The amendments made by paragraphs 4 to 6 also have effect in relation to deemed surrenders under paragraph 6(1) of Schedule 13.
A charity is entitled to be paid an amount by the Commissioners (referred to in this Schedule as a payment of “gift aid supplement”) if the following conditions are met. Condition A is that a gift aid donation is made to the charity in a transitional tax year. Condition B is that the charity makes a claim for the donation to be exempt from tax by virtue of— Condition C is that the claim is made within the period of two years beginning immediately after the end of— Condition D is that the claim is allowed.
This paragraph applies if an officer of Revenue and Customs discovers that payment or set-off of an amount of gift aid supplement— The relevant amount of gift aid supplement may be recovered as if it were an amount of income tax wrongly repaid to the charity (and, in particular, section 30 of TMA 1970 and paragraph 52 of Schedule 18 to FA 1998 apply accordingly). An amount to be recovered in accordance with sub-paragraph (2) is liable to interest as if it were an amount of income tax wrongly repaid to the charity. In this paragraph “relevant amount of gift aid supplement” means the payment or set-off of the amount of gift aid supplement, to the extent that it— For the purposes of this paragraph income tax is “wrongly repaid” to a charity if it is an amount repaid to the charity which ought not to have been repaid. For the purposes of this paragraph it does not matter if a charity is within the charge to income tax or the charge to corporation tax.
IHTA 1984 is amended as follows.
Schedule 28 to FA 2004 (authorised pensions etc) is amended as follows. The regulations may include provision having effect in relation to times before they are made if that provision does not increase any person’s liability to tax. The regulations may include provision having effect in relation to times before they are made if that provision does not increase any person’s liability to tax.
In consequence of the preceding provisions of this Schedule, omit section 81 of FA 2007.
In section 393A of ICTA (losses: set off against profits), in subsections (2C)(b) and (11)(a), for “abandonment expenditure” substitute “general decommissioning expenditure”.
ICTA is amended as follows.
An officer of Revenue and Customs may enter a person’s business premises and inspect— if the inspection is reasonably required for the purpose of checking that person’s tax position. The powers under this paragraph do not include power to enter or inspect any part of the premises that is used solely as a dwelling. In this Schedule—
An officer of Revenue and Customs may ask the First-tier Tribunal to approve an inspection under this Part of this Schedule. The First-tier Tribunal may not approve an inspection unless—
Where a document is produced to, or inspected by, an officer of Revenue and Customs, such an officer may— if it appears to the officer to be necessary to do so. Where a document is removed in accordance with sub-paragraph (1), the person who produced the document may request— and an officer of Revenue and Customs must comply with such a request without charge. The removal of a document under this paragraph is not to be regarded as breaking any lien claimed on the document. Where a document removed under this paragraph is lost or damaged, the Commissioners are liable to compensate the owner of the document for any expenses reasonably incurred in replacing or repairing the document. In this paragraph references to a document include a copy of a document.
An information notice does not require a person to provide or produce— An information notice does not require a person to provide or produce personal records (as defined in section 12 of the Police and Criminal Evidence Act 1984) or information contained in such records, subject to sub-paragraph (3). An information notice may require a person—
An information notice given for the purpose of checking the tax position of a person who has died may not be given more than 4 years after the person’s death.
An information notice does not require a tax adviser— Sub-paragraph (1) has effect subject to paragraph 26. In this paragraph—
Where a person is given a notice under paragraph 5, the person may appeal to the First-tier Tribunal against the notice or any requirement in the notice on the ground that it would be unduly onerous to comply with the notice or requirement.
Sub-paragraph (2) applies where it appears to the Commissioners that— Paragraph 21 (restrictions on giving taxpayer notice where taxpayer has made tax return) does not apply in relation to a taxpayer notice given to the seller. Section 769 of ICTA applies for the purposes of determining when there has been a change in the ownership of a company.
If it appears to the Treasury that there has been a change in the value of money since the last relevant date, they may by regulations substitute for the sums for the time being specified in paragraphs 39(2) and 40(2) such other sums as appear to them to be justified by the change. In sub-paragraph (1) “relevant date” means— Regulations under this paragraph do not apply to any failure or obstruction which began before the date on which they come into force.
A failure by a person to do anything required to be done within a limited period of time does not give rise to liability to a penalty under paragraph 39 or 40 if the person did it within such further time, if any, as an officer of Revenue and Customs may have allowed.
A person may appeal to the First-tier Tribunal against any of the following decisions of an officer of Revenue and Customs—
a decision that a penalty is payable by that person under paragraph 39 or 40, or
a decision as to the amount of such a penalty.
This paragraph applies where— The person is liable to a penalty of an amount decided by the Upper Tribunal. In deciding the amount of the penalty, the Upper Tribunal must have regard to the amount of tax which has not been, or is not likely to be, paid by the person. Where a person becomes liable to a penalty under this paragraph, HMRC must notify the person. Any penalty under this paragraph is in addition to the penalty or penalties under paragraph 39 or 40. In the application of the following provisions, no account shall be taken of a penalty under this paragraph—
A person who is guilty of an offence under this Part of this Schedule is liable—
on summary conviction, to a fine not exceeding the statutory maximum, and
on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine, or both.
A penalty is payable by a person (“P”) where P does an act which enables HMRC to assess an amount as duty due from P under any of the provisions in the Table below (a “relevant excise provision”). Provision under which assessment may be made Subject-matter of provision ALDA 1979 section 8(4) Spirits for use for medical or scientific purposes. ALDA 1979 section 10(4) Spirits for use in art or manufacture. ALDA 1979 section 11(3) Imported goods not for human consumption containing spirits. HODA 1979 section 10(3) Duty-free oil. HODA 1979 section 13(1A) Rebated heavy oil. HODA 1979 section 13AB(1)(a) or (2)(a) Kerosene. HODA 1979 section 13AD(2) Kerosene. HODA 1979 section 13ZB(1) Heating oil etc. HODA 1979 section 14(4) Light oil for use as furnace oil. HODA 1979 section 14D(1) Rebated biodiesel or bioblend. HODA 1979 section 14F(2) Rebated heavy oil or bioblend. HODA 1979 section 23(1B) Road fuel gas on which no duty paid. HODA 1979 section 24(4A) Duty-free and rebated oil. A penalty is payable by a person (“P”) where P supplies a product knowing that it will be used in a way which enables HMRC to assess an amount as duty due from another person under a relevant excise provision.
The penalty payable under any of paragraphs 1, 2, 3(1) and 4 is— The penalty payable under paragraph 3(2) is 100% of the potential lost revenue. Paragraphs 7 to 11 define “the potential lost revenue”.
In section 7(6) (notice of liability to income tax and capital gains tax), for “, the savings rate or the starting rate” substitute “ or the starting rate for savings ”.
Subsection (1C) of section 437 (general annuity business: income limit) is amended as follows. In paragraph (b)(ii), omit “capital elements and”. Omit paragraph (c). In paragraph (d), for the words after “2005” substituteare so much of the payments under the new annuities as would be within the exemption in subsection (1) of that section if—
Section 151A (person dying with alternatively secured pension fund) is amended as follows. In subsection (2), after “charged if it” insert “and any amount on which tax was previously charged under this section in relation to the member”. In subsection (4B) —
In section 343 (company reconstructions without change of ownership), in subsection (3), after “section 393A(1)” insert “(including a case where section 393B applies)”.
In section 91(3)(c) (effect of interest on reliefs), for “, the savings rate or the starting rate” substitute “ or the starting rate for savings ”.
Omit sections 539 to 551A (corporation tax in respect of gains arising in connection with life policies etc).
Section 151BA (rate or rates of charge under section 151B) is amended as follows. In subsection (1), for the words after “(4) of that section)” substitute “less the amount of any previously charged income tax (within the meaning of subsection (4A) of section 151A) constituted the relevant amount for the purposes of subsection (2) of that section, but subject as follows.” Omit subsection (2). In subsection (3)—
In section 393 (losses other than terminal losses), in subsection (1), for the words after “cannot” substitute “be relieved under this subsection, or (if a claim is made under section 393A(1)) under section 393A(1) or 393B(3), against income or profits of an earlier accounting period.”
Section 552 (information: duty of insurers) is amended as follows. In subsection (3), omit— In subsection (5)— In subsection (6)— In subsection (7)— In subsection (8)(c), omit the words from “or” to “financial year”. In subsection (9)— In subsection (10)— Omit subsection (11). In subsection (13), omit “section 548A above or”.
Section 151C (dependant dying with alternatively secured pension fund where section 151B does not apply) is amended as follows. In subsection (3B)— “dependants' alternatively secured pension” has the meaning given by paragraph 19 of that Schedule; “dependants' unsecured pension” has the meaning given by paragraph 18 of that Schedule; and in the definition of “dependant’s alternatively secured pension fund”, for “Schedule 28 to that Act” substitute “that Schedule”.
In section 393A (losses: set off against profits of the same, or an earlier, accounting period), after subsection (2C) insert—
In section 552ZA(3) (information: supplementary provisions), omit “section 546C(7)(a) of this Act and”.
After section 151C insert—
In section 768A (change in ownership: disallowance of carry back of trading losses), in subsection (1), after “section 393A(1)” insert “or 393B(3)”.
In section 552A(12) (tax representatives)—
omit “this Chapter and” in each place, and
for “have” substitute “has” in each place.
In section 210 (persons liable), after subsection (2) insert—
In section 826 (interest on tax overpaid), in subsection (7A)(b), after “set off” insert “(whether under section 393A(1) or 393B(3))”.
Omit sections 553 to 553C (further provisions about corporation tax in respect of gains arising in connection with life policies etc).
Section 216 (delivery of accounts) is amended as follows. In subsection (1)(bca), after “210(2)” insert “or (3)”. In subsection (6)(ac), after “scheme” insert “otherwise than by reason of a liability to tax under section 210(3)”. In subsection (7), for “or 126” substitute “, 126 or 151D”.
Schedule 19B (petroleum extraction activities: exploration expenditure supplement) is amended as follows. In paragraph 1 (provision about the Schedule), in sub-paragraph (7)(b), after “section 393A” insert “or 393B”. In paragraph 17 (ring fence losses and qualifying E&A losses), in sub-paragraph (2)—
Omit sections 656 to 658 (purchased life annuities).
In section 226(4) (payment), for “or 151B” substitute “, 151B or 151D”.
Schedule 19C (petroleum extraction activities: ring fence expenditure supplement) is amended as follows. In paragraph 1 (provision about the Schedule), in sub-paragraph (6)(b), after “section 393A” insert “or 393B”. In paragraph 17 (ring fence losses)—
In paragraph 20 of Schedule 15 (qualifying policies)—
in sub-paragraph (1)(a), omit “and 540 and 541”, and
in sub-paragraph (3)—
in paragraph (a), omit “and 540 and 541”, and
omit paragraph (b) and the “and” before it.
In section 233(1)(c) (interest on unpaid tax), for “or 151B” substitute “, 151B or 151D”.
Schedule 37 contains provision about the obligations to keep records for the purposes of income tax, capital gains tax, corporation tax and value added tax.
The amendments made by that Schedule come into force on such day as the Treasury may by order made by statutory instrument appoint.
Schedule 38 contains amendments relating to the disclosure of tax avoidance schemes.
The amendments made by that Schedule come into force on such day as the Treasury may by order made by statutory instrument appoint; and different days may be appointed for different purposes.
CEMA 1979 is amended as follows.
In section 1(1) (interpretation), in the definition of “container”, after “and any” insert “ baggage, ”.
Section 159 (power to examine and take account of goods) is amended as follows.
In subsection (1)—
after “for that purpose” insert “ open or unpack any container or ”, and
insert at the end “ and search it or anything in it. ”
In subsection (4), insert at the end “ ; but if an officer opens or unpacks any container, or searches it or anything in it, the Commissioners are to bear the expense of doing so. ”
Schedule 39 contains provision about time limits for assessments, claims etc.
The amendments and saving made by that Schedule come into force on such day as the Treasury may by order made by statutory instrument appoint.
An order under subsection (2)—
may make different provision for different purposes, and
may include transitional provision and further savings.
In section 9ZB(1) of TMA 1970 (correction of personal or trustee return by HMRC)—
after “correct” insert— , and
insert at the end, and
In section 12ABB(1) of that Act (correction of partnership return by HMRC)—
after “correct” insert— , and
insert at the end, and
Schedule 18 to FA 1998 (company tax returns) is amended as follows.
In paragraph 16(1) (correction of company tax return by HMRC)—
after “correct” insert— , and
insert at the end, and
In paragraph 31 (amendment of return by company during enquiry), in sub-paragraph (4), for paragraph (b) substitute—
In paragraph 34 (amendment of company tax return after enquiry), for sub-paragraphs (1) and (2) substitute—
In sub-paragraph (3) of that paragraph, for “any such amendment of a company's return” substitute “ an amendment of a company's return under sub-paragraph (2) or (2A) ”.
In sub-paragraph (4)(c) of that paragraph, for “notice of amendment” substitute “ closure notice ”.
In paragraph 61(1)(a) and (3)(a) (consequential claims etc), for “34(2)(b)” substitute “ 34(2A) ”.
In paragraph 88 (conclusiveness of amounts stated in return)—
in sub-paragraph (3)(b), omit the words from “and” to the end,
in sub-paragraph (3)(c), for “34(2)” substitute “ 34 ”,
in sub-paragraph (4)(b), for “the end of the period specified in paragraph 34(1)” substitute “ the completion of the enquiry ”, and
in sub-paragraph (4)(c), for “34(2)” substitute “ 34 ”.
In paragraph 93(1)(b) (general jurisdiction of Special or General Commissioners), for “34(2)” substitute “ 34 ”.
In the following provisions, for “34(2)” substitute “ 34 ”
in TMA 1970—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
section 46D(2)(aa) (questions to be determined by Land Tribunal), and
section 55(1)(a)(ii) (recovery of tax not postponed), and
in ICTA, section 754(2E) (assessment, recovery and postponement of tax).
The amendments made by this section come into force on such day as the Treasury may by order appoint.
In section 73 of VATA 1994 (assessment of overpaid VAT credits etc), after subsection (6) insert—
Section 80 of that Act (credit for, or repayment of, overstated or overpaid VAT) is amended as follows.
After subsection (4A) insert—
In subsection (4C), for “(2)” substitute “ (3) ”.
The amendments made by this section are treated as having come into force on 19 March 2008.
The requirement in section 80(4) of VATA 1994 that a claim under that section be made within 3 years of the relevant date does not apply to a claim in respect of an amount brought into account, or paid, for a prescribed accounting period ending before 4 December 1996 if the claim is made before 1 April 2009.
The requirement in section 25(6) of VATA 1994 that a claim for deduction of input tax be made at such time as may be determined by or under regulations does not apply to a claim for deduction of input tax that became chargeable, and in respect of which the claimant held the required evidence, in a prescribed accounting period ending before 1 May 1997 if the claim is made before 1 April 2009.
In this section—
This section is treated as having come into force on 19 March 2008.
Schedule 40 contains provisions amending Schedule 24 to FA 2007 (penalties for errors in returns etc).
That Schedule comes into force on such day as the Treasury may by order appoint.
An order under subsection (2)—
may commence a provision generally or only for specified purposes, and
may appoint different days for different provisions or for different purposes.
The Treasury may by order make any incidental, supplemental, consequential, transitional, transitory or saving provision which may appear appropriate in consequence of, or otherwise in connection with, Schedule 24 to FA 2007 or Schedule 40.
An order under subsection (4) may include provision amending, repealing or revoking any provision of any Act or subordinate legislation whenever passed or made (including this Act and any Act amended by it).
An order under subsection (4) may make different provision for different purposes.
The power to make an order under this section is exercisable by statutory instrument.
A statutory instrument containing an order under subsection (4) which includes provision amending or repealing any provision of an Act is subject to annulment in pursuance of a resolution of the House of Commons.
Schedule 41 contains provisions for imposing penalties on persons in respect of failures to notify HMRC that they are chargeable to tax etc and certain wrongdoings relating to invoices showing VAT and excise duties.
That Schedule comes into force on such day as the Treasury may by order appoint.
An order under subsection (2)—
may commence a provision generally or only for specified purposes, and
may appoint different days for different provisions or for different purposes.
The Treasury may by order make any incidental, supplemental, consequential, transitional, transitory or saving provision which may appear appropriate in consequence of, or otherwise in connection with, Schedule 41.
An order under subsection (4) may include provision amending, repealing or revoking any provision of any Act or subordinate legislation whenever passed or made (including this Act and any Act amended by it).
An order under subsection (4) may make different provision for different purposes.
The power to make an order under this section is exercisable by statutory instrument.
A statutory instrument containing an order under subsection (4) which includes provision amending or repealing any provision of an Act is subject to annulment in pursuance of a resolution of the House of Commons.
The Treasury may by order made by statutory instrument make provision—
for and in connection with reviews by the Commissioners, or by an officer of Revenue and Customs, of HMRC decisions, and
in connection with appeals against HMRC decisions.
An order under subsection (1) may, in particular, contain provision about—
the circumstances in which, or the time within which—
a right to a review may be exercised, or
an appeal may be made, and
the circumstances in which, or the time at which, an appeal or review is, or may be treated as, concluded.
An order under subsection (1) may, in particular, contain provision about the payment of sums by, or to, the Commissioners in cases where—
a right to a review is exercised, or
an appeal is made or determined.
That includes provision about payment of sums where an appeal has been determined, but a further appeal may be or has been made, including provision—
requiring payments to be made,
enabling payments to be postponed, or
imposing conditions in connection with the making or postponement of payments.
An order under subsection (1) may, in particular, contain provision about interest on any sum that is payable by, or to, the Commissioners in accordance with a decision made on the determination of an appeal.
Provision under subsection (1) may be made by amending, repealing or revoking any provision of any Act or subordinate legislation (whenever passed or made, including this Act and any Act amended by it).
An order under subsection (1) may—
provide that any provision contained in the order comes into force on a day appointed by an order of the Treasury made by statutory instrument (and may provide that different days may be appointed for different purposes),
contain incidental, supplemental, consequential, transitional, transitory and saving provision, and
make different provision for different purposes.
A statutory instrument containing an order under subsection (1) may not be made unless a draft of it has been laid before and approved by resolution of the House of Commons.
But if the order, or any other order under subsection (1) contained in the statutory instrument, is made in connection with a transfer of functions carried out under the Tribunals, Courts and Enforcement Act 2007 (c. 15), the statutory instrument may only be made if a draft of it has been laid before and approved by resolution of each House of Parliament.
In this section—
references to appeals against HMRC decisions include any other kind of proceedings relating to an HMRC matter, and
references to the making, determination or conclusion of appeals are to be read accordingly.
In this section—
Schedule 42 contains amendments of FA 1994 making certain decisions about alcoholic liquor duties subject to review and appeal.
The amendments made by that Schedule have effect in relation to decisions made on or after the day on which this Act is passed.
In paragraph 2(1)(s) of Schedule 5 to FA 1994 (decisions under section 157 of CEMA 1979 subject to review and appeal)—
after “any security” insert “ (or further security) ”, and
insert at the end “ , guarantee or other security ”.
The amendments made by subsection (1) have effect in relation to decisions made on or after the day on which this Act is passed.
This section applies if a person does not pay a sum that is payable by that person to the Commissioners under or by virtue of an enactment or under a contract settlement.
The Commissioners may use the procedure in Schedule 12 to the Tribunals, Courts and Enforcement Act 2007 (c. 15) (taking control of goods) to recover that sum.
This section extends to England and Wales only.
This section applies if a person does not pay a sum that is payable by that person to the Commissioners under or by virtue of any enactment or under a contract settlement.
An officer of Revenue and Customs may apply to the sheriff for a summary warrant.
An application under subsection (2) must be accompanied by a certificate which—
complies with subsection (4), and
is signed by the officer.
A certificate complies with this subsection if—
it states that—
none of the persons specified in the application has paid the sum payable by that person,
the officer has demanded payment from each such person of the sum payable by that person, and
the period of 14 days beginning with the day on which the demand is made has expired without payment being made, and
it specifies the sum payable by each person specified in the application.
Subsection (4)(a)(iii) does not apply to an application under subsection (2) insofar as it relates to—
sums payable in respect of value added tax,
sums payable in respect of deductions required to be made under section 61 of FA 2004 (sub-contractors in the construction industry), and
sums payable by a person in that person's capacity as an employer.
The sheriff must, on an application by an officer of Revenue and Customs under subsection (2), grant a summary warrant in, or as nearly as may be in, the form prescribed by Act of Sederunt.
A summary warrant granted under subsection (6) authorises the recovery of the sum payable by—
attachment,
money attachment,
earnings arrestment,
arrestment and action of furthcoming or sale.
Subject to subsection (9) and without prejudice to section 39(1) of the Debt Arrangement and Attachment (Scotland) Act 2002 (asp 17) (expenses of attachment)— in connection with the execution of a summary warrant are to be chargeable against the person in relation to whom the warrant was granted.
the sheriff officer's fees, and
any outlays necessarily incurred by that officer,
No fees are to be chargeable by the sheriff officer against the person in relation to whom the summary warrant was granted for collecting, and accounting to the Commissioners for, sums paid to that officer by that person in respect of the sum payable.
This section extends to Scotland only.
Part 1 of Schedule 43 contains provision consequential on section 127.
Part 2 of that Schedule contains provision consequential on section 128.
The extent of the amendments and repeals in Schedule 43 is the same as the provision amended or repealed.
Sections 127 and 128 and Schedule 43 come into force on such day as the Commissioners may by order made by statutory instrument appoint.
An order under subsection (4) may—
make different provision for different purposes, and
contain transitional provision and savings.
This section applies where there is both a credit and a debit in relation to a person.
The Commissioners may set the credit against the debit (subject to section 131 and any obligation of the Commissioners to set the credit against another sum).
The obligations of the Commissioners and the person concerned are discharged to the extent of any set-off under subsection (2).
“Credit”, in relation to a person, means—
a sum that is payable by the Commissioners to the person under or by virtue of an enactment, or
a relevant sum that may be repaid to the person by the Commissioners.
For the purposes of subsection (4), in relation to a person, “relevant sum” means a sum that was paid in connection with any liability (including any purported or anticipated liability) of that person to make a payment to the Commissioners under or by virtue of an enactment or under a contract settlement.
“Debit”, in relation to a person, means a sum that is payable by the person to the Commissioners under or by virtue of an enactment or under a contract settlement.
In this section references to sums paid, repaid or payable by or to a person (however expressed) include sums that have been or are to be credited by or to a person.
This section has effect without prejudice to any other power of the Commissioners to set off amounts.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
in the definition of “tax repayment”, for “set-off that falls to be made against the individual’s liabilities” substitute “relevant set-off”, and
“relevant set-off”, in relation to an individual, means any set-off that falls to be made against the individual’s liabilities, other than any set-off under section 130 of FA 2008.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
This section applies where—
an insolvency procedure has been applied to a person, and
there is a post-insolvency credit in relation to that person.
The Commissioners may not use the power under section 130 to set that post-insolvency credit against a pre-insolvency debit in relation to the person.
“Post-insolvency credit” means a credit that—
became due after the insolvency procedure was applied to the person, and
relates to, or to matters occurring at, times after it was so applied.
“Pre-insolvency debit” means a debit that—
arose before the insolvency procedure was applied to the person, or
arose after that procedure was so applied but relates to, or to matters occurring at, times before it was so applied.
Subject to subsection (6), an insolvency procedure is to be taken, for the purposes of this section, to be applied to a person when—
a bankruptcy order or winding up order or award of sequestration is made or an administrator is appointed in relation to that person,
that person is put into administrative receivership,
if the person is a corporation, that person passes a resolution for voluntary winding up,
a voluntary arrangement comes into force in relation to that person, ...
a deed of arrangement takes effect in relation to that person , or
that person's estate becomes vested in any other person as that person's trustee under a trust deed (within the meaning of the Bankruptcy (Scotland) Act 1985).
In this section references to the application of an insolvency procedure to a person do not include—
the application of an insolvency procedure to a person at a time when another insolvency procedure applies to the person, or
the application of an insolvency procedure to a person immediately upon another insolvency procedure ceasing to have effect.
For the purposes of this section—
a person shall be treated as being in administrative receivership throughout any continuous period for which there is an administrative receiver of that person (disregarding any temporary vacancy in the office of receiver), and
the reference in subsection (5) to a person being put into administrative receivership shall be interpreted accordingly.
In this section—
In section 830(4) of ITTOIA 2005 (meaning of “relevant foreign income”)—
omit the “and” at the end of paragraph (f), and
at the end of paragraph (g) insert—.
For the purpose of any calculation in accordance with paragraph 1, no account shall be taken of any R&D relief in respect of expenditure incurred before the day on which this Schedule comes into force.
Part 4 of FA 2004 (pension schemes etc) is amended as follows.
In Schedule 29A to FA 2004 (taxable property etc), omit paragraph 2(1)(b) and the “or” before it. The amendment made by sub-paragraph (1) is treated as having come into force on 6 April 2006.
FA 2004 is amended as follows. In section 197 (spreading of relief)— In section 199(2) (deemed contributions), for paragraphs (a) to (c) substitute “the relieving provisions (within the meaning of section 197) and sections 197 and 198”. In consequence of the amendment made by sub-paragraph (3), in Schedule 1 to ITTOIA 2005 (consequential amendments), omit paragraph 648.
Schedule 34 to FA 2004 (which applies certain charges to non-UK pension schemes) is amended as follows. In paragraph 10(2), in the definition of EI, after “tax year,” insert “excluding any such income which is exempt income (within the meaning of section 8 of ITEPA 2003),”. In paragraph 11(2), in the definition of EI, after “tax year,” insert “excluding any such income which is exempt income (within the meaning of section 8 of ITEPA 2003),”. The amendment made by sub-paragraph (2) has effect for the tax year 2008-09 and subsequent tax years. The amendment made by sub-paragraph (3) has effect— For the tax year 2007-08, for the purposes of paragraph 11(1)(b) of Schedule 34 to FA 2004 the appropriate fraction of the contributions mentioned in that paragraph is the aggregate of—
TMA 1970 is amended as follows.
If HMRC think it right because of special circumstances, they may reduce a penalty under any of paragraphs 1 to 4. In sub-paragraph (1) “special circumstances” does not include— In sub-paragraph (1) the reference to reducing a penalty includes a reference to—
P may appeal against a decision of HMRC that a penalty is payable by P. P may appeal against a decision of HMRC as to the amount of a penalty payable by P.
Where a penalty under any of paragraphs 1, 2, 3(1) and 4 is payable by a company for a deliberate act or failure which was attributable to an officer of the company, the officer is liable to pay such portion of the penalty (which may be 100%) as HMRC may specify by written notice to the officer. Sub-paragraph (1) does not allow HMRC to recover more than 100% of a penalty. In the application of sub-paragraph (1) to a body corporate “officer” means— In the application of sub-paragraph (1) in any other case “officer” means— Where HMRC have specified a portion of a penalty in a notice given to an officer under sub-paragraph (1)—
In consequence of this Schedule the following provisions are omitted—
in TMA 1970—
section 7(8), and
in the table in section 98, in the second column, the entry relating to section 55 of FA 2004,
section 170A of CEMA 1979,
in ALDA 1979—
in section 47(5), “which shall be calculated by reference to the amount of duty charged on the beer produced”,
in section 54(5), “which shall be calculated by reference to the amount of duty charged on the wine produced”,
in section 55(6), “which shall be calculated by reference to the amount of duty charged on the made-wine produced”, and
in section 62(4), “which shall be calculated by reference to the amount of duty charged on the cider made”,
in HODA 1979—
section 13AD(4)(a) and (b), and
section 14F(4)(a) and (b),
in FA 1994—
section 33(6),
paragraph 13 of Schedule 4, and
paragraph 14 of Schedule 7,
section 67 of VATA 1994,
section 32 of FA 1995,
in FA 1996—
section 37, and
paragraph 21(1), (2) and (4) of Schedule 5,
section 27(11) of FA 1997,
paragraph 2(3) and (4) of Schedule 18 to FA 1998,
in FA 2000—
section 136(2), and
paragraph 55(2) to (6) of Schedule 6, and
paragraph 1(2) to (6) of Schedule 4 to FA 2001.
In this Schedule “regulations” means regulations under section 157.
Regulations may make provision about decisions by the Treasury to raise money through alternative finance arrangements. Regulations under this paragraph may, in particular, make provision about considerations that may be, must be, or must not be, taken into account in—
Regulations may make provision about property to be employed in raising money through alternative finance arrangements. That includes provision— Regulations under sub-paragraph (2)(c) or (d) may, in particular, make provision about the terms on which property is to be dealt with or held (including terms about payments). That includes provision specifying, or about the specification of, terms or conditions. In this paragraph “property” includes land. In this paragraph a reference to a dealing with property includes—
Regulations may make provision about the treatment of money raised through alternative finance arrangements. That includes provision specifying, or about the specification of, the account or fund into which money is to be paid.
In section 617 of ITA 2007 (accrued income profits: income charged), after subsection (6) insert—
Section 172 (assignment) is amended as follows. In subsection (3)— After subsection (6) insert—
In section 215(4)(a) of FA 2004 (amount of lifetime allowance charge), after “first lifetime allowance” insert “charge”.
Section 12B (records to be kept for purposes of income tax and capital gains tax returns) is amended as follows. In subsection (2)— In subsection (3), omit paragraph (b) and the “and” before it. After that subsection insert— For subsection (4) substitute— In subsection (4A), for “The records which fall within this subsection are” substitute “Subsection (4)(b) does not apply in the case of the following kinds of records”. After subsection (5B) insert—
An appeal is to be brought to the First-tier Tribunal. An appeal shall be treated for procedural purposes in the same way as an appeal against an assessment to the tax concerned (except in respect of a matter expressly provided for by this Act).
Paragraphs 3 to 14 do not limit the generality of the power conferred by section 157.
Omit section 644 of that Act (accrued income profits: individuals to whom remittance basis applies).
Section 172A (surrender) is amended as follows. In subsection (1), at the end of paragraph (a) (but before the “or”) insert—. In subsection (3)(a), for “relating to” substitute “in respect of”. In subsection (5), after paragraph (c) insert—. After subsection (9) insert—
In Schedule 34 to that Act (non-UK schemes: application of certain charges), in paragraph 7ZA for “Commissions” substitute “Commissioners”.
Paragraph 2A of Schedule 1A (records to be kept for the purposes of claims) is amended as follows. The Commissioners for Her Majesty’s Revenue and Customs may by regulations— The duty under sub-paragraph (1) to preserve records may be discharged— subject to sub-paragraph (3A) and any conditions or further exceptions specified in writing by the Commissioners for Her Majesty’s Revenue and Customs. Sub-paragraph (3)(b) does not apply in the case of records of the kinds specified in section 12B(4A) or paragraph 22(3) of Schedule 18 to the Finance Act 1998. Regulations under this paragraph may— In this paragraph “supporting documents” includes accounts, books, deeds, contracts, vouchers and receipts.
On an appeal under paragraph 17(1) the First-tier Tribunal may affirm or cancel HMRC’s decision. On an appeal under paragraph 17(2) the First-tier Tribunal may— If the First-tier Tribunal substitutes its decision for HMRC's, the Tribunal may rely on paragraph 14— In sub-paragraph (3)(b) “flawed” means flawed when considered in the light of the principles applicable in proceedings for judicial review.
After section 670 of that Act insert—
Section 172B (increase in rights of connected person on death) is amended as follows. In subsection (2), at the end of paragraph (a) (but before the “or”) insert—. In subsections (3)(a) and (7)(b), for “is actually or prospectively entitled” substitute “has an actual or prospective entitlement”. In subsection (7)— After subsection (7) insert—
The amendments made by paragraphs 156 to 159 have effect in relation to transfers of securities where the settlement day is on or after 6 April 2008.
In paragraph 16(2) of Schedule 28 (dependants' scheme pension), after “pension” insert “for the purposes of this Part”.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 81 of VATA 1994 (set-off of credits etc) is amended as follows.
For subsection (4C) substitute—
In subsection (5)—
omit paragraph (a),
in paragraph (b)—
for “that Act of 1986” substitute “ the Insolvency Act 1986 ”, and
for “that Order of 1989” substitute “ the Insolvency (Northern Ireland) Order 1989 ”, and
before the “and” at the end of paragraph (b) insert—.
This section applies where there has been a transfer from one person (“the original creditor”) to another person (“the current creditor”) of a right to be paid a sum (“the transferred sum”) by the Commissioners.
The Commissioners—
must set the transferred sum against a sum payable to them by the original creditor if they would have had an obligation to do so under or by virtue of an enactment had the original creditor retained the right, and
may do so if they would have had a power to do so under or by virtue of an enactment or under a rule of law had the original creditor retained the right.
Subsection (2) applies whether the sum payable by the original creditor to the Commissioners first became payable before or after the transfer (but not if it only became payable after the Commissioners discharged their obligation to pay the transferred sum to the current creditor).
The following are discharged to the extent of any set-off under this section—
the obligations of the Commissioners in relation to the current creditor, and
the obligations of the original creditor.
An obligation under or by virtue of an enactment (other than this section) to set the transferred sum against a sum payable to the Commissioners by a person other than the original creditor has effect subject to the obligation under subsection (2)(a) and to any exercise of the power under subsection (2)(b).
A power under or by virtue of an enactment (other than this section) or under a rule of law to set the transferred sum against a sum payable to the Commissioners by a person other than the original creditor has effect subject to the obligation under subsection (2)(a).
In determining the sum (if any) to be paid, the Commissioners may make any reduction that they could have made if the original creditor had retained the right to be paid the transferred sum (in addition to any other reduction that they are entitled to make), including a reduction arising from any defence to a claim for the sum.
In this section—
references to the transfer of a right are to its transfer by assignment, assignation or any other means, ...
references to a sum that is payable by or to a person are to a sum that is to be paid, repaid or credited by or to that person and references to the payment of the sum (however expressed) are to be interpreted accordingly, and
where a right in relation to a sum has been transferred more than once, references to the original creditor are to the person from whom the right was first transferred (except in subsection (1)).
Where the right to be paid the transferred sum is dependent on the making of a claim—
subsection (2) does not apply unless a claim in respect of the transferred sum has been made, and
the references in subsections (2) and (7) to the obligations or powers that the Commissioners would have had if the original creditor had retained the right are references to those that they would have had if the original creditor had also made the claim in respect of the transferred sum.
This section has effect where the right to be paid the transferred sum was transferred from the original creditor on or after 25 June 2008.
Section 939 of ITA 2007 (duty to retain bonds where issue treated as payment of interest) is amended as follows.
After subsection (4) insert—
Omit subsection (5).
In ITA 2007, after section 940 insert—
The amendments made by this section have effect in relation to funding bonds issued on or after 12 March 2008.
This section applies in any case where the Commissioners agree that the payment of a relevant sum may be deferred by reason of circumstances arising as a result of a disaster or emergency specified in an order under this section (an “agreement for deferred payment”).
In subsection (1) “relevant sum” means a sum to meet any liability to the Commissioners that—
arises under or by virtue of an enactment or a contract settlement, and
is of a description (if any) specified in the order.
No interest on the amount deferred is chargeable in respect of the relief period and no liability to a surcharge on the deferred amount arises during that period.
The relief period , in relation to a deferred amount, is the period—
beginning with a date specified in the order or, if the Commissioners so direct, a later date from which the agreement for deferred payment has effect, and
ending with the date on which the agreement for deferred payment ceases to have effect or, if earlier, the date on which the order is revoked or amended so that it ceases to have effect in relation to the deferred amount.
The agreement for deferred payment ceases to have effect at the end of the period of deferment specified in the agreement or, if the Commissioners agree to extend (or further extend) that period by reason of circumstances arising as a result of the disaster or emergency, with the end of that extended (or further extended) period.
If the agreement for deferred payment is an agreement for payment by instalments, the period of deferment in relation to each instalment ends with the date on or before which that instalment is to be paid; but if an instalment is not paid by the agreed date and the Commissioners do not agree to extend the period of deferment, the whole of the agreement for deferred payment is to be treated as ceasing to have effect on that date.
This section applies whether the agreement for deferred payment was made—
before or after the amount to which it relates becomes due and payable, or
before or after the making of the order concerned.
If in any case the Commissioners are satisfied that, although no agreement for deferred payment was made, one could have been made, this section applies as if one had been made; and the terms of the notional agreement for deferred payment are to be assumed to be such as the Commissioners are satisfied would have been agreed in the circumstances.
An order under this section may be made only in relation to a disaster or emergency which the Treasury consider to be of national significance.
Such an order—
may specify a disaster or emergency which has begun (or both begun and ended) before it is made (including one which has begun, or both begun and ended, before the passing of this Act), ...
may specify a date before the date on which it is made (including a date before the passing of this Act) , and
may specify different dates in relation to liabilities of different descriptions.
The power to make an order under this section is exercisable by the Treasury by statutory instrument.
A statutory instrument containing such an order is subject to annulment in pursuance of a resolution of the House of Commons.
In FA 2001, omit section 107 (interest on unpaid tax etc: foot and mouth disease); but the repeal of that section does not affect any agreement for deferred payment made before this Act is passed.
The Commissioners may by regulations provide that, where a person makes a payment to the Commissioners or a person authorised by the Commissioners using a method of payment specified in the regulations, the person must also pay a fee specified in, or determined in accordance with, the regulations.
A method of payment may only be specified in regulations made under this section if the Commissioners expect that they, or the person authorised by them, will be required to pay a fee or charge (however described) in connection with amounts paid using that method of payment.
Regulations under this section—
may make provision about the time and manner in which the fee must or may be paid,
may make provision generally or only for specified purposes, and
may make different provision for different purposes.
Regulations under this section are to be made by statutory instrument.
A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.
In section 25 of CRCA 2005 (conduct of civil proceedings)—
after subsection (1) insert—, and
after subsection (5) insert—
In section 66 of TMA 1970 (county court proceedings)—
in subsection (1), omit “commenced in the name of a collector”, and
omit subsection (2).
Accordingly, in FA 1984, omit section 57(2).
In section 244 of IHTA 1984 (right to address court), omit “county court or”.
In paragraph 3 of Schedule 4 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2) (recovery of contributions where income tax recovery provisions not applicable)—
in sub-paragraph (1), omit “commenced in the name of an authorised officer”, and
omit sub-paragraph (2).
In paragraph 5 of Schedule 12 to FA 2003 (stamp duty land tax)—
in sub-paragraph (1), omit “brought in the name of the collector”, and
omit sub-paragraph (2).
Nothing in subsections (2) to (6) affects proceedings commenced or brought in the name of a collector or authorised officer before this Act is passed.
In CRCA 2005, after section 25 insert—
Schedule 44 contains provisions consequential on this section.
In this Chapter—
In section 53 of IHTA 1984 (exceptions from charge on termination of interest in possession), for subsection (2A) substitute—
The amendment made by subsection (1) is treated as having come into force on 22 March 2006 (so that paragraph 14(3) of Schedule 20 to FA 2006 is treated as never having had effect).
In Chapter 2 of Part 3 of IHTA 1984 (interests in possession etc)— for “April” substitute “ October ”.
in section 49C (transitional serial interest: interest to which person becomes entitled on or after 22 March 2006 and before 6 April 2008), in subsection (3) and in the heading,
in section 49D (transitional serial interest: interest to which person becomes entitled on death of spouse or civil partner on or after 6 April 2008), in subsection (3) and in the heading, and
in section 49E (transitional serial interest: contracts of life insurance), in subsection (3),
The amendments made by subsection (1) are treated as having come into force on 6 April 2008.
In Part 3 of FA 1994 (insurance premium tax), omit the following provisions (which relate to tax representatives)—
sections 57 and 58,
in section 65(1), paragraph (b) and the “and” before it,
in section 73(1), the definition of “tax representative”, and
in Schedule 7, paragraph 18 and, in paragraph 20, “, 18(2)”.
In consequence of the repeals made by subsection (1), omit sections 27(4) and (5) of FA 1997.
Section 65 of FA 1994 (insurance premium tax: liability of insured where insurer not established in United Kingdom) is amended as follows.
In subsection (1), for the words after “time” substitutethe insurer—
After that subsection insert—
VERA 1994 is amended as follows.
In section 10 (transfer and surrender of vehicle licences), omit subsections (2) and (3) and, in the heading, “and surrender”.
For section 19 (rebates on surrender of licences) substitute—
In section 22(1D) (requirement to furnish particulars etc in certain circumstances), omit paragraph (a) (surrender under section 10(2)).
In— (meaning of “expiry”), after “surrender” insert “ or ceasing to be in force under section 19(7) ”.
section 31(7)(a),
section 31B(9)(a)(i), and
section 31C(7)(a),
In consequence of the amendment made by subsection (3), omit section 14 of FA 2001.
The amendments made by this section come into force on 1 January 2009.
Schedule 45 contains provision in relation to the offence of using or keeping an unlicensed vehicle.
Part 1B of Schedule 1 to VERA 1994 (annual rates of duty: light goods vehicles) is amended as follows.
In paragraph 1J(a) and (b) (rates), after “a” insert “ pre-2007 or post-2008 ”.
In paragraph 1K (meaning of “lower-emission van”), for “ “lower-emission van”” substitute “pre-2007 lower-emission van” .
After paragraph 1L insert—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 61B of VERA 1994 (certificates as to reduced pollution) is amended as follows.
In subsection (1), after paragraph (b) insert—.
In paragraph (c) of that subsection, for “examination of an eligible vehicle, for the purposes of the determination mentioned in paragraph (b),” substitute “ Secretary of State to specify cases in which a determination is to be made only after an examination of an eligible vehicle ”.
In paragraph (d) of that subsection, for “for such an examination” substitute “ in respect of a determination ”.
In paragraph (e) of that subsection, for “on a prescribed examination,” substitute “ in accordance with the regulations, ”.
In subsection (3)—
in paragraph (a), for “in accordance with the regulations” substitute “ (or, if not previously examined, examined) in accordance with the regulations (“a post-certification examination”) ”,
in paragraph (b), for “such a re-examination” substitute “ a post-certification examination ”, and
in paragraph (c), for “the prescribed re-examination” substitute “ a post-certification examination ”.
In paragraph 19 of Schedule 6 to FA 2000 (exemption: electricity from renewable sources), omit sub-paragraph (4A) (coal mine methane to be regarded as renewable source).
Accordingly, omit—
section 126 of FA 2002 (which inserted sub-paragraph (4A)), and
regulation 47(2A) of the Climate Change Levy (General) Regulations 2001 (S.I. 2001/838).
The repeals and revocation made by this section have effect in relation to electricity generated on or after 1 November 2008.
In paragraph 143(2) of Schedule 6 to FA 2000 (requirements to be met by invoice if it is to be a “climate change levy accounting document”), omit paragraph (a) (requirement that it must state that it is a climate change levy accounting document).
Part 3 of FA 1996 (landfill tax) is amended as follows.
In section 53(4)(d) (withdrawal of approval of environmental body or regulatory body), for “approval of an environmental body or the regulatory body to be withdrawn” substitute “ the withdrawal of approval of an environmental body by the Commissioners or by the regulatory body, and the withdrawal of approval of the regulatory body by the Commissioners, ”.
In section 54(1) (review of Commissioners' decisions), after paragraph (c) insert—.
The amendments made by this section are treated as having come into force on 19 March 2008.
The Commissioners for Her Majesty's Revenue and Customs may incur expenditure in preparing for the introduction of a new duty chargeable in respect of flights by aircraft.
In section 30 of FA 1994 (rate of air passenger duty), after subsection (10) insert—
The amendment made by subsection (1) has effect in relation to any carriage of a passenger on an aircraft which begins on or after 1 November 2008.
FA 1986 is amended as follows.
In section 78(7) (stamp duty: loan capital), after paragraph (c) insert—
In section 79 (loan capital: instruments not chargeable to stamp duty), after subsection (8) insert—
In section 99 (stamp duty reserve tax: interpretation), after subsection (9) insert—
The amendments made by subsections (2) and (3) have effect in relation to instruments executed on or after the day on which this Act is passed (and for this purpose it does not matter when the arrangements falling within section 48A of FA 2005 are made).
The amendment made by subsection (4) has effect in relation to— (and for this purpose it does not matter when the arrangements falling within section 48A of FA 2005 or section 507 of CTA 2009 are made).
agreements to transfer chargeable securities made on or after the day on which this Act is passed, and
the transfer, issue or appropriation of chargeable securities after that day in pursuance of an agreement made after that day;
FA 2003 is amended as follows.
For the heading of section 73A substitute “ Sections 71A to 73: relationship with Schedule 7 ”.
After section 73A insert—
The amendment made by subsection (3) has effect in relation to alternative finance arrangements entered into on or after 12 March 2008.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 98 of FA 2006 (alternative finance arrangements: variation of Chapter 5 of Part 2 of FA 2005 by order) is amended as follows.
For the heading substitute “Orders amending Chapter 5 of Part 2 of FA 2005”.
For subsection (1) substitute—
For subsection (3) substitute—
The Treasury may by regulations make provision for raising money through alternative finance arrangements.
Regulations under subsection (1) must specify the purpose or purposes for which money may be raised through each kind of alternative finance arrangements that, under regulations under subsection (1), is available for raising money.
The Treasury may not raise money through a particular kind of alternative finance arrangements unless, in the Treasury's opinion, raising the money would be in accordance with the provision made under subsection (2) in relation to that kind of arrangements.
Regulations under subsection (2) may, in particular, specify a purpose or purposes for which money may be raised under the National Loans Act 1968 (c. 13).
Money to be raised under regulations made under this section—
may be raised either within or outside the United Kingdom, and
may be raised either in sterling or in any other currency or medium of exchange, whether national or international.
Subsection (5) is subject to provision made in or under the regulations.
Schedule 46 contains further provision about regulations under this section.
In this section and Schedule 46 “alternative finance arrangements” means arrangements which in the Treasury's opinion—
equate in substance to a loan, deposit or other transaction of a kind that generally involves the payment of interest (including the issuance of government securities), but
achieve a similar effect to such a transaction without including provision for the payment of interest.
This section applies if a person makes a claim which, in the Treasury's opinion, is a financial claim that concerns an Exchequer account.
The Treasury may pay money from any Exchequer account—
to satisfy the claim (in whole or in part), or
to enable the claim to be satisfied (in whole or in part) from another government account.
The reference in this section to a financial claim that concerns an Exchequer account includes, in particular, either of the following cases.
The first case is where a financial claim relates to—
a case where money is paid into a government account, but the money should not have, or need not have, been paid into that account, or
a case where money should have been, or needed to be, paid out of a government account, but the money—
was not paid out of that account, or
was paid out of that account, but not as it should have been, or needed to be, paid.
The second case is where a financial claim relates to the exercise of functions that relate to an Exchequer account (whether the functions are exercisable by the Treasury or another person).
In this section—
This section applies to money to be paid under section 158 from—
the Consolidated Fund, or
the National Loans Fund.
In the case of the Consolidated Fund—
the Comptroller and Auditor General shall on receipt of a requisition from the Treasury grant a credit on the Exchequer Account at the Bank of England (or on its growing balance), and
an issue shall be made on orders given to the Bank by the Treasury in accordance with a credit granted under paragraph (a).
An issue made under subsection (2) shall be recorded in the daily account under section 15(5) of the Exchequer and Audit Departments Act 1866 (c. 39).
In the case of the National Loans Fund—
the Comptroller and Auditor General shall at the request of the Treasury grant a credit on the National Loans Fund, and
a payment out of the Fund shall be made by the Treasury in accordance with a credit granted under paragraph (a).
A payment made under subsection (4) shall be recorded in the daily account under section 1(2) of the National Loans Act 1968 (c. 13).
The Treasury may by order make provision for and in connection with giving effect to any existing HMRC concession.
“Existing HMRC concession” means a statement made by the Commissioners for Her Majesty's Revenue and Customs before the passing of this Act, and having effect at that time, that they will treat persons as if they were entitled to— to which they are not, or may not be, entitled in accordance with the law.
a reduction in a liability to a tax or duty, or
any other concession relating to a tax or duty,
For this purpose “statement” means a statement of any sort, whether it was described as an extra-statutory concession, a statement of practice, an interpretation, a decision or a press release or in any other way.
The reference in subsection (2) to the Commissioners for Her Majesty's Revenue and Customs includes the Commissioners of Inland Revenue and the Commissioners of Customs and Excise.
An order under this section—
may give effect to an existing HMRC concession with or without modification,
may include supplementary, incidental, consequential or transitional provision, and
may include provisions amending (or repealing or revoking) any enactment or instrument (whenever passed or made).
The power to make an order under this section is exercisable by statutory instrument.
No order is to be made under this section unless a draft of the order has been laid before, and approved by a resolution of, the House of Commons.
In section 1(6) of HODA 1979 (definition of “ultra low sulphur diesel”), omit paragraphs (b) and (c) (but not the “and” at the end of paragraph (c)).
The amendment made by subsection (1) is treated as having come into force on 4 September 2007.
In section 137 of CEMA 1979 (calculation of excise duty etc), omit subsection (4) (fractions of penny to be disregarded in calculation of duty).
Section 10 of the National Debt Act 1972 (c. 65) (national savings stamps and gift tokens) is amended as follows.
In subsection (2), after “tokens; and” insert “ (subject to regulations under subsection (2A)) ”.
After that subsection insert—
Section 16 of FA 2007 (EU emissions trading: charges for allocations) is amended as follows.
In subsection (4)(c), for “imposition and recovery of penalties” substitute “ creation of criminal offences, or for the imposition and recovery of civil penalties, ”.
After subsection (6) insert—
In this Act—
In this Act— “FA”, followed by a year, means the Finance Act of that year, and “F(No.2)A”, followed by a year, means the Finance (No.2) Act of that year.
This Act may be cited as the Finance Act 2008.
Section 5
ITA 2007 is amended as follows.
For section 7 (savings rate) substitute—
Section 10 (income charged at main rates: individuals) is amended as follows. Omit subsection (1). For subsection (2) substitute— In subsection (4), omit the entry relating to section 12. Insert at the end— Accordingly, in the heading, omit “starting,”.
In section 11(2) (income charged at the basic rate: persons other than individuals), omit the reference to section 12.
For section 12 substitute—
In section 13 (income charged at dividend ordinary and dividend upper rates: individuals)—
in subsection (1)(b), omit “starting or”, and
in subsection (4), omit “starting,”.
In section 16(1) (savings and dividend income to be treated as highest part of total income), for the words from “the rate” to the end substitute—
Section 17 (repayment: tax paid at basic rate instead of starting rate or savings rate) is amended as follows. In subsection (1), for “starting or savings rate” substitute “ starting rate for savings ”. Accordingly, in the heading, for “starting or savings rate” substitute “ starting rate for savings ”.
For the heading before section 20 substitute— “ Indexation of basic rate limit and starting rate limit for savings ”.
Omit section 20 (starting rate limit and basic rate limit).
Section 21 (indexation of starting and basic rate limits) is amended as follows. Omit subsection (2). After subsection (3) insert— In subsection (4), for “(2) and (3)” substitute “ (3) and (3A) ”. In subsection (5)— Accordingly, in the heading, for “starting rate limit and the basic rate limit” substitute “ basic rate limit and starting rate limit for savings ”.
In section 31(2), omit “or savings rate”.
Section 158 (form and amount of EIS relief) is amended as follows. In subsection (2), for “savings rate” substitute “ EIS rate ”. After that subsection insert—
In section 209(3) (withdrawal or reduction of EIS relief: disposal of shares)—
in the formula, for “S” substitute “ EISR ”, and
for the definition of “S” substitute “ EISR is the EIS rate. ”
In section 210(1)(b) (cases where maximum EIS relief not obtained), for “savings rate for that year” substitute “ EIS rate ”.
In section 213(2) (withdrawal or reduction of EIS relief: value received by investor)—
in the formula, for “S” substitute “ EISR ”, and
for the definition of “S” substitute “ EISR is the EIS rate. ”
In section 220(1)(b) (cases where maximum EIS relief not obtained), for “savings rate for that year” substitute “ EIS rate ”.
In section 224(2) (withdrawal or reduction of EIS relief: repayments etc of share capital to other persons)—
in the formula, for “S” substitute “ EISR ”, and
for the definition of “S” substitute “ EISR is the EIS rate. ”
In section 229(1)(b) (cases where maximum EIS relief not obtained), for “savings rate for that year” substitute “ EIS rate ”.
In section 414(2) (relief for gifts to charity), for “section 20” substitute “ section 10 ”.
In section 486(1) (how allowable expenses are to be set against trust rate income), in Step 5, for “savings rate” substitute “ basic rate ”.
Section 498 (types of income tax for purposes of section 497) is amended as follows. In subsection (1), in Type 3A, for “savings rate” substitute “ basic rate ”. In that subsection, in Type 4, omit “or at the savings rate”. In subsection (2A), for “savings rate” substitute “ basic rate ”.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In section 745(1) (rates of tax applicable to income charged under sections 720 and 727 etc), for “savings rate” substitute “ starting rate for savings ”.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In section 874(2) (deduction from payments of yearly interest), for “savings rate” substitute “ basic rate ”.
In section 889(4) (deduction from payments in respect of building society securities), for “savings rate” substitute “ basic rate ”.
In section 892(2) (deduction from UK public dividends), for “savings rate” substitute “ basic rate ”.
In section 901(4) (deduction from annual payments made by other persons), for “the applicable rate (see section 902)” substitute “ the basic rate in force for the tax year in which the payment is made ”.
Omit section 902 (meaning of “applicable rate” in section 901).
In section 919(2) (manufactured interest on UK securities: payments by UK residents etc), for “savings rate” substitute “ basic rate ”.
In section 939(2) (duty to retain bonds where issue treated as payment of interest), for “savings rate” substitute “ basic rate ”.
Section 989 (definitions) is amended as follows. In the definition of “basic rate limit”, for “20(2)” substitute “ 10 ”. Omit the definition of “savings rate”. “starting rate for savings” has the meaning given by section 7, “starting rate limit for savings” has the meaning given by section 12,
In section 1014(5)(b)(i) (orders and regulations not subject to annulment), for “starting rate limit and basic rate limit” substitute “ basic rate limit and starting rate limit for savings ”.
In Schedule 1 (consequential amendments), omit paragraphs 85(2), 86, 112, 151, 152, 191, 244, 259, 279, 530, 535(2), 536(3), 537, 538, 564, 565 and 592(47) and (49).
Schedule 4 (index of defined expressions) is amended as follows. EIS rate (in Part 5) section 158(2A) starting rate for savings section 7 starting rate limit for savings section 12 Omit the entry relating to “savings rate”.
“produce”, in relation to a document, includes furnish, deliver and any other equivalent expression.
In section 7(5) of F(No.2)A 2005 (charge to income tax on social security pension lump sum)—
omit paragraph (b), and
in paragraph (c), for “exceeds the starting rate limit” substitute “ is greater than nil ”.
TCGA 1992 is amended as follows.
The amendments made by this Schedule are treated as having come into force on 6 April 2008.
In section 431(2) of ICTA, in the definition of “periodical return”, insert at the end “(and does not include the Forms mentioned in Rule 9.3(5))”.
In section 89(7) of FA 1989 (policy holders' share of profits), for “in respect of losses in accordance with section 85A(4)” substitute “in accordance with section 85A(4) in respect of losses incurred in an accounting period in which 31 December 2002 is included or any later accounting period.” The amendment made by sub-paragraph (1) has effect in relation to accounting periods beginning on or after 1 January 2008 and ending on or after 15 May 2008. But that amendment does not have effect (and is to be treated as never having had effect) in relation to a company if a relevant determination is made in proceedings commenced by the company before 15 May 2008 and is not reversed on an appeal or further appeal. A relevant determination is a determination that losses incurred in an accounting period earlier than that in which 31 December 2002 was included are to be taken into account for the purposes of section 89 of FA 1989 in arriving at Case I profits for accounting periods—
In section 436A(6) of ICTA (gross roll-up business: separate charge on profits), omit “under subsection (4) above”. The amendment made by sub-paragraph (1) has effect in relation to periods of account beginning on or after 1 January 2008 and ending on or after 12 March 2008.
In section 466(1) (“life or endowment business”), for paragraph (b) substitute— The amendment made by sub-paragraph (1) has effect for periods of account beginning on or after 1 January 2007.
Omit— In section 462(1), for “subsections (2) to (4)” substitute “subsection (2)”. In consequence of sub-paragraph (1), omit—
Chapter 2 of Part 11 of ITA 2007 (manufactured payments) is amended as follows.
Section 574 (allowable deductions for manufactured dividends on UK shares: matching) is amended as follows. This is subject to subsection (3). For subsections (3) to (9) substitute— In subsection (10), for “deductible if” substitute “otherwise deductible if, apart from this section,”. In the heading, omit “: matching”.
Section 579 (allowable deductions for manufactured interest on UK securities: matching) is amended as follows. For subsections (3) to (8) substitute— In subsection (9), for “deductible if” substitute “otherwise deductible if, apart from this section,”. Omit subsection (10). In the heading, omit “: matching”.
In section 583 (manufactured payments exceeding underlying payments), insert at the end—
ITA 2007 is amended as follows.
Sub-paragraph (2) applies if— Unless the event occurs more than 7 years after the building was first used, a balancing charge is to be made in respect of the event as if that Part of that Act remained in force.
This Part of this Schedule has effect in relation to chargeable periods (within the meaning of CAA 2001) beginning on or after—
for corporation tax purposes, 1 April 2011, and
for income tax purposes, 6 April 2011.
Section 104 (share pooling: general interpretative provisions) is amended as follows. For subsections (2) and (2A) substitute— In subsection (3), omit “, 110A”. After that subsection insert— In subsection (5), omit “, 110A”.
But the amendments made by paragraphs 2, 3, 5 and 6 do not have effect in relation to shares issued before that date.
In section 76 (first-year allowances)—
after “from” insert “an annual investment allowance or”, and
in the heading, after “allowances” insert “and annual investment allowances”.
Sub-paragraph (2) applies if— Unless the event occurs more than 7 years after the end of the chargeable period for which the allowance was made, the allowance is to be withdrawn as if that section remained in force.
In section 105 (disposal on or before day of acquisition), after subsection (2) insert—
And the amendments made by paragraphs 8 and 9 do not have effect in relation to—
a relevant holding issued before that date, or
a relevant holding acquired by a company (“the investing company”) by means of the investment of protected money.
In section 78 (arrangements to reduce tax liabilities)—
in subsection (1)(a), after “the” insert “annual investment allowance or”, and
in the heading, after “allowances” insert “and annual investment allowances”.
Section 106A (identification of securities: general rules for capital gains tax) is amended as follows. After subsection (5) insert— In subsection (6), before “securities” (in each place) insert “ relevant ”. Omit subsection (7). Omit subsection (8). For subsection (10) substitute— In the heading, omit “general rules for”.
For the purposes of paragraph 12(b) “protected money” is—
money raised by the issue before that date of shares in or securities of the investing company, or
money derived from the investment of such money.
In the heading of section 107 (identification of securities etc: general rules), insert at the end “ for corporation tax ”.
In the heading of section 108 (identification of relevant securities), insert at the end “ for corporation tax ”.
Section 109 (pre-April 1982 share pools) is amended as follows. In subsection (1), for “This” substitute “ For the purposes of corporation tax, this ”. In the heading, for “Pre-April” substitute “ Corporation tax: pre-April ”.
For the heading of section 110 substitute “ Indexation for section 104 holdings for corporation tax ”.
Omit section 110A (indexation for section 104 holdings: CGT).
In the heading of section 112 (parallel pooling regulations), insert at the end “ : corporation tax ”.
Section 113 (calls on shares) is amended as follows. Before subsection (1) insert— In the heading, insert at the end “ : corporation tax ”.
Section 114 (consideration for options) is amended as follows. Before subsection (1) insert— In the heading, insert at the end “ : corporation tax ”.
In FA 1998, omit—
section 123(1) and (2), and
section 125(2) and (3).
Chapter 6 of Part 4 of ITA 2007 (losses on disposals of shares) is amended as follows.
Section 147 (limits on share loss relief) is amended as follows. In subsection (1)(b)— In subsection (7)—
Section 148 (disposal of shares forming part of mixed holding) is amended as follows. In subsection (3)(a)(ii), omit “or a 1982 holding”. In subsection (5), omit “or 1982”. In subsection (9), for “and “1982 holding” have” substitute “ has ”.
The amendments made by paragraphs 84 to 99 have effect in relation to disposals on or after 6 April 2008.
Apart from the amendments made by paragraph 11, the amendments made by this Schedule have effect for the tax year 2008-09 and subsequent tax years.
Section 8
interest earned or not earned by any person, or
Section 288 of TCGA 1992 (interpretation) is amended as follows. “year of assessment” means tax year; After that subsection insert—
Part 2 of Schedule 20 to FA 2000 (giving effect to R&D tax relief) is amended as follows. In each of the following provisions, for “150%” substitute “175%”— In paragraph 16(1)(a) (amount of R&D tax credit), for “16%” substitute “14%”. The amendments made by this paragraph have effect in relation to expenditure incurred on or after such day as the Treasury may by order appoint. The Treasury may appoint a day before the day on which this Act is passed, but not one before 1 April 2008.
The amendments made by this Schedule have effect in relation to claims and elections made, and amounts paid or applied, on or after such day as the Treasury may by order appoint.
In this Schedule— In sub-paragraph (1)— A policy of life insurance issued in respect of an insurance made before 14 March 1989 is to be treated for the purposes of this Schedule as issued in respect of one made on or after that date if it is varied on or after that date so as to— and any exercise of rights conferred by the policy is to be regarded for this purpose as a variation. In this Schedule—
In section 53 of ICTA (farming and market gardening and managing land on commercial basis for profit), insert at the end— In section 55 of ICTA (mines, quarries etc), insert at the end— In section 432AB(5) (losses from Schedule A business etc), for “section 392A or 392B” substitute “sections 392A and 503, or section 392B,”. The amendments made by this paragraph have effect in relation to accounting periods beginning on or after 1 January 2008.
In section 444AB(6) of ICTA (transfer schemes transferring whole of business), for the words after “means” substitute “the period of account of the transferor ending, or treated by section 444AA(2) as ending, immediately before the transfer date.” The amendment made by sub-paragraph (1) has effect in relation to transfers of business taking place on or after 1 July 2008.
In paragraph 12 of Schedule 12 to FA 2002 (insurance companies treated as large companies), for the words following paragraph (b) substitute “the company does not qualify as a small or medium-sized enterprise for the purposes of Parts 1 to 3 of this Schedule or Schedule 20 to the Finance Act 2000.”
In article 1(5) of the Insurance Business Transfer Schemes (Amendment of the Corporation Tax Acts) Order 2008 (S.I. 2008/381), for “other” substitute “earlier”. In article 29(2), for ““assuming the transferor had continued to carry on the business transferred after the transfer”” substitute ““assuming that the transferor had continued to carry on the business transferred””. The amendments made by this paragraph are to be treated as always having had effect.
After section 461C insert— The amendment made by sub-paragraph (1) has effect in relation to transfers of engagements and amalgamations taking place on or after the day on which this Act is passed.
The “notional basic rate” for a transitional tax year is calculated by adding together— But if the rate calculated for a transitional tax year by adding those two things together is more than 22%, the notional basic rate for that year is 22%. The “transitional supplement” for each transitional tax year is 2%. Section 998 of ITA 2007 applies to the grossing up of an amount by reference to a notional basic rate as if the notional basic rate were an actual rate of tax.
Chapter 17 of Part 2 of CAA 2001 (plant and machinery allowances: anti-avoidance) is amended as follows. For section 228A substitute— In section 228B (lessee’s income or profits: deductions)— In section 228C (lessee’s income or profits: termination of leaseback)— Omit— In section 228G (leaseback not accounted for as finance lease in accounts of lessee)— Section 228H (sections 228A to 228G: supplementary) is amended as follows. In subsection (1)— After that subsection insert— In section 228J(8) (plant or machinery subject to further operating lease), in the definition of “lease and finance leaseback”, for “section 228F” substitute “section 228A”. In section 774E(5)(b) of ICTA (structured finance arrangements: exceptions), omit “with the modifications contained in section 228F of that Act”. The amendments made by this paragraph have effect in relation to transactions referred to in section 228A(2)(a) of CAA 2001 (as substituted by this paragraph) entered into on or after 9 October 2007.
In section 54(5) (the different kinds of pools), for “section 101 (long life assets);” substitute “section 104C (special rate expenditure);”.
Part 3 of FA 1986 (stamp duty) is amended as follows.
Part 3 of FA 1986 (stamp duty) is amended as follows.
In Schedule 14 to FA 1999, omit paragraphs 10(b), 11(b), 12(3) and 13(3).
If a day is appointed under section 111 of FA 1990 (abolition day), paragraphs 14 and 15 of this Schedule cease to have effect in accordance with section 108 of that Act.
In section 6 of OTA 1975 (allowances of unrelievable loss from abandoned field), in subsection (1A), after “this Act” insert “and paragraph 5 of Schedule 20A to the Finance Act 1993”.
An officer of Revenue and Customs may by notice in writing require a person— if the information or document is reasonably required by the officer for the purpose of checking the tax position of another person whose identity is known to the officer (“the taxpayer”). A third party notice must name the taxpayer to whom it relates, unless the First-tier Tribunal has approved the giving of the notice and disapplied this requirement under paragraph 3. In this Schedule, “third party notice” means a notice under this paragraph.
An authorised officer of Revenue and Customs may by notice in writing require a person— if the condition in sub-paragraph (2) is met. That condition is that the information or document is reasonably required by the officer for the purpose of checking the UK tax position of— An officer of Revenue and Customs may not give a notice under this paragraph without the approval of the First-tier Tribunal. The First-tier Tribunal may not give its approval for the purpose of this paragraph unless it is satisfied that— In this paragraph “UK tax” means any tax other than relevant foreign tax and value added tax charged in accordance with the law of another member State.
Where an information notice requires a person to produce a document, the person may comply with the notice by producing a copy of the document, subject to any conditions or exceptions set out in regulations made by the Commissioners. Sub-paragraph (1) does not apply where— Where an officer of Revenue and Customs requests a document under sub-paragraph (2)(b), the person to whom the request is made must produce the document— as is reasonably requested by the officer.
This paragraph applies where an officer of Revenue and Customs has reason to believe that— An officer of Revenue and Customs may enter the premises and inspect— The powers under this paragraph do not include power to enter or inspect any part of the premises that is used solely as a dwelling. Terms used both in sub-paragraph (1) and in VATA 1994 have the same meaning in that sub-paragraph as they have in that Act.
This Part of this Schedule has effect subject to Parts 4 and 6 of this Schedule.
This paragraph applies to a person who— A person to whom this paragraph applies is liable to a penalty of £300. The reference in this paragraph to a person who fails to comply with an information notice includes a person who conceals, destroys or otherwise disposes of, or arranges for the concealment, destruction or disposal of, a document in breach of paragraph 42 or 43.
A person must not conceal, destroy or otherwise dispose of, or arrange for the concealment, destruction or disposal of, a document that is the subject of an information notice addressed to the person (subject to sub-paragraphs (2) and (3)). Sub-paragraph (1) does not apply if the person acts after the document has been produced to an officer of Revenue and Customs in accordance with the information notice, unless an officer of Revenue and Customs has notified the person in writing that the document must continue to be available for inspection (and has not withdrawn the notification). Sub-paragraph (1) does not apply, in a case to which paragraph 8(1) applies, if the person acts after the expiry of the period of 6 months beginning with the day on which a copy of the document was produced in accordance with that paragraph unless, before the expiry of that period, an officer of Revenue and Customs made a request for the original document under paragraph 8(2)(b).
Liability to a penalty under paragraph 39 or 40 does not arise if the person satisfies HMRC or (on appeal) the First-tier Tribunal that there is a reasonable excuse for the failure or the obstruction of an officer of Revenue and Customs. For the purposes of this paragraph—
Notice of an appeal under paragraph 47 must be given— Notice of an appeal under paragraph 47 must state the grounds of appeal. On an appeal under paragraph 47(a), the First-tier Tribunal may confirm or cancel the decision. On an appeal under paragraph 47(b), the First-tier Tribunal may— Subject to this paragraph and paragraph 49, the provisions of Part 5 of TMA 1970 relating to appeals have effect in relation to appeals under this Part of this Schedule as they have effect in relation to an appeal against an assessment to income tax.
A penalty under paragraph 50 must be paid before the end of the period of 30 days beginning with the date on which the notification of the penalty is issued. A penalty under paragraph 50 may be enforced as if it were income tax charged in an assessment and due and payable.
A person is also guilty of an offence (subject to sub-paragraph (2)) if the person conceals, destroys or otherwise disposes of, or arranges for the concealment, destruction or disposal of a document after the person has been informed by an officer of Revenue and Customs in writing that— A person is not guilty of an offence under this paragraph if the person acts after—
Regulations made by the Commissioners or the Treasury under this Schedule are to be made by statutory instrument. A statutory instrument containing regulations under this Schedule is subject to annulment in pursuance of a resolution of the House of Commons.
In this Schedule (subject to regulations under this paragraph), references to carrying on a business include— In sub-paragraph (1)— The Commissioners may by regulations provide that for the purposes of this Schedule— is or is not to be treated as the carrying on of a business.
In this Schedule, except where the context otherwise requires, “tax” means all or any of the following— and references to “a tax” are to be interpreted accordingly. In this Schedule “corporation tax” includes any amount assessable or chargeable as if it were corporation tax. In this Schedule “VAT” means— and includes any amount that is recoverable under paragraph 5(2) of Schedule 11 to VATA 1994 (amounts shown on invoices as VAT). In this Schedule “relevant foreign tax” means—
ICTA is amended as follows.
In consequence of the amendments made by paragraph 101, omit—
the definition of “tax year” in section 41(1) of FA 2005, and
paragraph 342(2)(i) of Schedule 1 to ITA 2007.
In section 444ABB(1A)(b)(ii) of ICTA (retained assets), for “liabilities” substitute “mathematical reserves (as determined in accordance with section 1.2 of the Insurance Prudential Sourcebook)”. The amendment made by sub-paragraph (1) has effect in relation to transfers of business taking place on or after 1 July 2008.
Section 228B of CAA 2001 (S’s income or profits: deductions) is amended as follows. After subsection (4) insert— Accordingly, in the heading, after “profits” insert “etc”. The amendments made by this paragraph have effect in relation to transactions referred to in section 228A(2)(a) of CAA 2001 entered into on or after 12 March 2008.
In section 56(2) (amount of allowances and charges), for paragraph (a) substitute—.
In section 66 (company’s purchase of own shares), omit subsection (2A) (fixed duty).
Section 67 (stamp duty on certain transfers to depositary receipt systems) is amended as follows. In subsection (1), after “instrument” insert “(other than a bearer instrument)”. In subsection (3), for the words from the beginning to “then,” substituteIn any other case—. After subsection (9) insert—
In section 36(2)(b) (claims for repayment of tax on sale of land with right to reconveyance), for “six years” substitute “4 years”.
In section 444ABD(1) of ICTA (transferor’s period of account including transfer), for “liabilities” substitute “mathematical reserves (as determined in accordance with section 1.2 of the Insurance Prudential Sourcebook)”. The amendment made by sub-paragraph (1) has effect in relation to transfers of business with a transfer date after 21 March 2007.
In section 65(1) (final chargeable period), for paragraph (b) substitute—.
In section 67(9) (transfer of securities between depositary receipt systems), for “the stamp duty chargeable on the instrument is £5” substitute “stamp duty is not chargeable on the instrument”.
Section 70 (stamp duty on certain transfers to a clearance system) is amended as follows. In subsection (1), after “instrument” insert “(other than a bearer instrument)”. In subsection (3), for the words from the beginning to “then,” substituteIn any other case—. After subsection (9) insert—
In section 257AB(9) (elections in respect of married couple’s allowance (post-5th December 2005 marriages and civil partnerships)), for “on or before the 5th anniversary of the 31st January next following” substitute “not more than 4 years after”.
section 104E special rate expenditure: avoidance cases
In section 70(9) (transfer of securities between clearance systems), for “the stamp duty chargeable on the instrument is £5” substitute “stamp duty is not chargeable on the instrument”.
In section 257BB(5)(a) (notices in respect of transfer of relief under section 257A or 257AB), for “on or before the fifth anniversary of the 31st January next following” substitute “not more than 4 years after”.
In column 1 of the table in section 84 (cases in which short-life asset treatment is ruled out), for item 4 substitute—
In section 72A(1) (transfer of securities between depositary receipt system and clearance system), for paragraph (b) substitute—
In section 265(5) (notices in respect of transfer of blind person’s allowance), for “on or before the fifth anniversary of the 31st January next following” substitute “not more than 4 years after”.
Omit section 92 (application of Chapter 10 to part of expenditure).
In section 270(4) (claims for repayment of excess paid on surrender etc of life insurance policy), for “six years” substitute “4 years”.
For section 101 (long-life asset pool) substitute—
In section 419(4) (claims for relief from tax where loan surrendered etc), for “six years” substitute “4 years”.
For section 102 (6% writing-down allowance in respect of long-life asset expenditure) substitute—
In section 500(4) and (9) (additional assessment to corporation tax where petroleum revenue tax repaid), for “six years” substitute “4 years”.
Omit section 104 (disposal value of long-life assets).
In section 806(1) (time limit for claims for allowance under arrangements by way of credit for foreign tax)—
in paragraph (a)(i), for “the fifth anniversary of the 31st January next following” substitute “the 4th anniversary of the end of”, and
in paragraph (b)(i), for “six years” substitute “4 years”.
In section 266(7) (certain provisions disapplied where election made under section 266)—
for “104” substitute “104E”, and
for “of long-life assets” substitute “in connection with special rate expenditure”.
In section 806G(3)(a) (claims for the purposes of utilisation of eligible unrelieved foreign tax), for “six years” substitute “4 years”.
special rate expenditure (in Part 2) section 104A
In section 806M(7)(a) (claims for the purpose of carry forward or carry back of unrelieved foreign tax), for “six years” substitute “4 years”.
Section 9
TCGA 1992 is amended as follows.
FA 1994 is amended as follows.
ITEPA 2003 is amended as follows.
Schedule 4C to TCGA 1992 (as it has effect without the amendments made by paragraphs 128 to 146) applies for the tax year 2008-09 and subsequent tax years in relation to Schedule 4C pools created before 6 April 2008 (“existing Schedule 4C pools”) as if paragraphs 7B and 9(2) were omitted.
In this Schedule “R&D relief” means any relief or tax credit under—
Schedule 20 to FA 2000 (tax relief for expenditure by SMEs on research and development), or
Schedule 13 to FA 2002 (tax relief for expenditure on vaccine research etc).
This paragraph applies where, on or after the relevant date— An integral feature is a pre-commencement integral feature if qualifying expenditure on it— The buyer and seller may jointly elect for paragraph 17 to apply. The election must be made by notice to an officer of Revenue and Customs within 2 years after the date on which the sale takes place. All such assessments and adjustments of assessments are to be made as are necessary to give effect to the election. Whether the buyer and seller are members of the same group is to be determined in accordance with section 170(3) to (6) of TCGA 1992. The “relevant date” has the same meaning as in paragraph 14.
In section 12A(3)(c) (other assessment relating to excise duty matters), after “13,” insert “ 13ZB, ”.
Section 6 (nature of charge to tax on employment income) is amended as follows. In subsection (3), omit the “and” at the end of paragraph (a), and after that paragraph insert—. After that subsection insert—
Any reduction in the amount of a capital payment has effect for the purposes of Schedule 4C to TCGA 1992 as it applies in relation to existing Schedule 4C pools (as well as for other purposes).
Where this paragraph applies, for the purposes of making allowances and charges under Part 2 of CAA 2001— Allowances and charges are to be made under Part 2 of CAA 2001 to or on the buyer as if everything done to or by the seller had been done to or by the buyer.
In section 12B(2)(f) (section 12A: supplementary provisions), after “13,” insert “ 13ZB, ”.
Section 10 (meaning of “taxable earnings” etc) is amended as follows. In subsection (2), for the words after “with” substitute “ Chapters 4 and 5 of this Part ”. After subsection (3) insert—
If all of a capital payment ceases (in the tax year 2008-09 or any subsequent tax year) to be available, the amount of the capital payment is reduced to nil. If part of a capital payment ceases (in the tax year 2008-09 or any subsequent tax year) to be available, the amount of the capital payment is reduced by the amount of that part. A capital payment “ceases to be available” in a tax year if and to the extent that, by reason of the capital payment, chargeable gains are treated under paragraph 8 of Schedule 4C to TCGA 1992 (as it has effect in relation to existing Schedule 4C pools) as accruing in that year to the recipient. If— sub-paragraph (3) applies in relation to earlier capital payments before later ones.
In section 14(1)(ba) (requirement for review of a decision), after “13,” insert “ 13ZB, ”.
Section 13 (person liable to tax) is amended as follows. After subsection (4) insert— In subsection (5), for “In that event” substitute “ If subsection (4) or (4A) applies, ”.
In any tax year—
Schedule 4C to TCGA 1992 (as amended by paragraphs 128 to 146) applies in relation to a settlement before that Schedule (as it has effect without those amendments) applies in relation to the settlement, and
that Schedule (as it has effect without those amendments) applies in relation to the settlement before section 87 or 89(2) of that Act applies in relation to the settlement.
For the heading of Chapter 4 of Part 2 substitute “ Taxable earnings: UK resident employees ”.
In section 14(1) (taxable earnings under Chapter 4: introduction), for “resident, ordinarily resident and domiciled in UK” substitute “ UK resident ”.
For the heading before section 15 substitute “ UK resident employees ”.
Section 15 (earnings for year when employee resident, ordinarily resident and domiciled in UK) is amended as follows. In subsection (1), for the words from “resident”, in the first place, to the end substitute “ UK resident. ” For subsection (3) substitute— Accordingly, in the heading, for “resident, ordinarily resident and domiciled in UK” substitute “ UK resident ”.
For the title to Chapter 5 of Part 2 substitute “ Taxable earnings: remittance basis rules and rules for non-uk resident employees ”.
Section 20 (taxable earnings under Chapter 5: introduction) is amended as follows. For subsection (1) substitute— In subsection (2), omit paragraphs (b) and (c). In subsection (3), for “the sections listed in subsection (1)” substitute “ sections 22, 26 and 27 ”.
For the heading before section 21 substitute “ Remittance basis rules for UK ordinarily resident employees ”.
Omit section 21 (earnings for year when employee resident and ordinarily resident, but not domiciled, in UK, except chargeable overseas earnings).
Section 22 (chargeable overseas earnings for year when employee resident and ordinarily resident, but not domiciled, in UK) is amended as follows. In subsection (1), for the words from “in which” to the end substitute, to the extent that they are chargeable overseas earnings for that year, if— For subsection (3) substitute— In subsection (4), omit the words after “year”. In subsection (5)(b), for “section 21” substitute “ section 15 ”. After subsection (5) insert— Accordingly, in the heading, for the words from “employee” to the end substitute “ remittance basis applies and employee ordinarily UK resident ”.
Section 23 (calculation of chargeable overseas earnings) is amended as follows. In subsection (1), for “sections 21 and” substitute “ section ”. In subsection (2), for paragraph (a) substitute—.
In section 24(7) (limit on chargeable overseas earnings where duties of associated employment performed in UK), for “section 21(1)” substitute “ section 15(1) ”.
For the heading before section 25 substitute “ Remittance basis rules: employees not UK ordinarily resident ”.
Omit section 25 (UK-based earnings for year when employee resident, but not ordinarily resident, in UK).
Section 26 (foreign earnings for year when employee resident, but not ordinarily resident, in UK) is amended as follows. In subsection (1), for the words from “in which” to “they” substitute “ where section 809B, 809D or 809E of ITA 2007 (remittance basis) applies to the employee for that year and the employee is not ordinarily UK resident in that year, if the general earnings ”. For subsection (3) substitute— After subsection (4) insert— Accordingly, in the heading, for the words from “employee” to the end substitute “ remittance basis applies and employee not ordinarily UK resident ”.
Section 27 (UK-based earnings for year when employee non-UK resident) is amended as follows. For subsection (3) substitute— After subsection (4) insert—
Omit sections 31 to 37 (and the heading before section 31).
After section 41 insert—
Omit Chapter 6 of Part 2 (disputes as to domicile or ordinary residence).
In section 225 (payments for restrictive undertakings), for subsections (6) and (7) substitute—
In section 271(2) (limited exemption of removal benefits and expenses: general)—
in paragraph (a), for the words from “employee” to “UK” substitute “ remittance basis applies and employee ordinarily UK resident ”, and
in paragraph (b), for the words from “employee” to “UK” substitute “ remittance basis applies and employee not ordinarily UK resident ”.
In section 335(4) (application of deductions provisions), omit “, 21, 25”.
Section 370 (travel costs and expenses where duties performed abroad) is amended as follows. In subsection (1), for the words from “taxable” to “UK)” substitute “ relevant taxable earnings ”. After subsection (5) insert—
Section 371 (travel costs and expenses where duties performed abroad: spouse's travel etc) is amended as follows. In subsection (1), for the words from “taxable” to “UK)” substitute “ relevant taxable earnings ”. After subsection (7) insert—
Section 378 (deduction from seafarer's earnings: eligibility) is amended as follows. In subsection (1)(a), for the words from “taxable” to the end substitute “ relevant taxable earnings, ”. After subsection (4) insert—
Section 413 (exception in certain cases of foreign service) is amended as follows. In subsection (3), for paragraph (a) substitute— After that subsection insert—
In section 421E(1) (income relating to securities: exclusions), for the words from “or 21” to the end substitute “ , 22 or 26 applies (earnings for year when employee UK resident). ”.
In section 446N (securities subject to restriction during relevant period), after subsection (6) insert—
In section 474(1) (securities options: exclusions), for the words from “or 21” to the end substitute “ , 22 or 26 applies (earnings for year when employee UK resident). ”
In section 540(2) (EMI: taxable benefits), for the words from “or 21” to the end substitute “ applies (earnings for year when employee UK resident).& ”
In section 690 (PAYE: employee non-UK resident etc), after subsection (2) insert—
In section 698 (PAYE: special charges on employment-related securities), after subsection (7) insert—
In section 700 (PAYE: gains from securities options), after subsection (6) insert—
After that section insert—
“foreign employer” means an individual, partnership or body of persons resident outside, and not resident in, the United Kingdom,
In Schedule 1 (index of defined expressions), omit the entries relating to—
receipt of money earnings (in Chapter 5 of Part 2), and
receipt of non-money earnings (in Chapter 5 of Part 2).
An employee is a UK resident taxpayer if—
In paragraph 6(2) of Schedule 3 (approved SAYE option schemes: all-employee nature of scheme), for paragraph (c) substitute—.
In paragraph 27(2) of Schedule 5 (enterprise management incentives: meaning of “working time”)—
in paragraph (a), for the words from “or 21” to “Kingdom)” substitute “ applies (earnings for year when employee UK resident) ”, and
in paragraph (b), for the words from “resident and” to the end substitute “ UK resident (and none of sections 809B, 809D and 809E of ITA 2007 (remittance basis) applied to the employee). ”
In Schedule 7 (transitionals and savings), omit paragraphs 9 to 12.
Section 10
IHTA 1984 is amended as follows.
Section 8A of IHTA 1984 (as inserted by paragraph 2) has effect in relation to cases where the deceased person died before 25 July 1986 (and the survivor dies on or after 9 October 2007) subject as follows. Where the deceased person died on or after 1 January 1985— Where the deceased person died on or after 13 March 1975 and before 1 January 1985— Where the deceased person died on or after 16 April 1969 and before 13 March 1975, section 8A applies as if— Where the deceased person died before 16 April 1969, section 8A applies as if—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The amendments made by paragraphs 106 to 114 have effect for the tax year 2008-09 and subsequent tax years.
For the purposes of this Part of this Schedule, the market value of any asset is its market value for the purposes of TCGA 1992.
TMA 1970 is amended as follows.
ITTOIA 2005 is amended as follows.
Section 818 of ITA 2007 (the independent investment manager conditions) is amended as follows. In subsection (1), for the words from “if” to the end substitute “if conditions A to E are met.” Omit subsections (7) and (8).
Chapter 2 of Part 12 of ICTA (friendly societies etc) is amended as follows.
In subsection (1) of section 463 (application of Corporation Tax Acts to life or endowment business carried on by friendly societies), for “the life or endowment” substitute “long-term”; and, accordingly, in the heading of that section, for “Life or endowment” substitute “Long-term”.
The amount of gift aid supplement that a charity is entitled to be paid in respect of a gift aid donation is— where— DGN is the amount of the gift aid donation grossed up by reference to the notional basic rate for the transitional tax year, and DGA the amount of the gift aid donation grossed up by reference to the actual basic rate of income tax for the transitional tax year. A charity is not entitled to be paid gift aid supplement in respect of a gift aid donation if the amount determined in accordance with sub-paragraph (1) is a negative amount.
Gift aid supplement is not—
income for the purposes of income tax, or
profits for the purposes of corporation tax.
Schedule 18 to FA 1998 (company tax returns, assessments etc.) is amended as follows. In paragraph 10(2)— The provisions of paragraphs 41 and 45 to 48 relating to discovery assessments apply to an amount paid to a company by way of first-year tax credit under Schedule A1 to the Capital Allowances Act as if it were unpaid tax, but only to the extent that the company was not, or is no longer, entitled to it. In paragraph 52(5), after paragraph (ae) insert—. After paragraph 83 insert—
In paragraph 34 of Schedule 36 to FA 2004 (pension commencement lump sums), in the provisions of paragraph 2 of Schedule 29 substituted by sub-paragraph (2)— The amendments made by sub-paragraph (1) are treated as having come into force on 6 April 2006.
IHTA 1984 is amended as follows. In section 12(2) (dispositions conferring benefits under pension scheme), for “or” substitute “, a qualifying non-UK pension scheme or a”. In section 58 (meaning of relevant property)— In section 151(2), (4) and (5) (treatment of pension rights etc), for “or section” substitute “, a qualifying non-UK pension scheme or a section”. In section 152 (cash options), for “or section” substitute “, a qualifying non-UK pension scheme or a section”. After section 271 insert— In paragraph 56 of Schedule 36 to FA 2004 (pension schemes: transitional provision in relation to inheritance tax)— The amendments made by this paragraph are treated as having come into force on 6 April 2006.
In paragraph 15(1) of that Schedule (exclusion of market rent leases), after “14(5)” insert “or (5A)”.
Where a taxpayer is given a taxpayer notice, the taxpayer may appeal to the First-tier Tribunal against the notice or any requirement in the notice. Sub-paragraph (1) does not apply to a requirement in a taxpayer notice to provide any information, or produce any document, that forms part of the taxpayer’s statutory records. Sub-paragraph (1) does not apply if the First-tier Tribunal approved the giving of the notice in accordance with paragraph 3.
Notice of an appeal under this Part of this Schedule must be given— Notice of an appeal under this Part of this Schedule must state the grounds of appeal. On an appeal the First-tier Tribunal may— Where the First-tier Tribunal confirms or varies the information notice or a requirement, the person to whom the information notice was given must comply with the notice or requirement— A decision by the First-tier Tribunal on an appeal under this Part of this Schedule is final. Subject to this paragraph, the provisions of Part 5 of TMA 1970 relating to appeals have effect in relation to appeals under this Part of this Schedule as they have effect in relation to an appeal against an assessment to income tax.
This paragraph applies where an undertaking is a parent undertaking in relation to another undertaking (a subsidiary undertaking). Where a third party notice is given to any person for the purpose of checking the tax position of the parent undertaking and any of its subsidiary undertakings, paragraph 2 only requires the notice to state this and name the parent undertaking. In relation to such a notice— Where a third party notice is given to the parent undertaking for the purpose of checking the tax position of one or more subsidiary undertakings— Where a notice is given under paragraph 5 to the parent undertaking for the purpose of checking the tax position of one or more subsidiary undertakings whose identities are not known to the officer giving the notice, sub-paragraph (3) of that paragraph (approval of First-tier Tribunal) does not apply. Where a third party notice or a notice under paragraph 5 is given to the parent undertaking for the purpose of checking the tax position of one or more subsidiary undertakings, the parent undertaking may not appeal against a requirement in the notice to produce any document that forms part of the statutory records of the parent undertaking or any of its subsidiary undertakings. In this paragraph “parent undertaking”, “subsidiary undertaking” and “undertaking” have the same meaning as in the Companies Acts (see sections 1161 and 1162 of, and Schedule 7 to, the Companies Act 2006 (c. 46)).
This Schedule (other than Part 8) applies to the Crown, but not to Her Majesty in Her private capacity (within the meaning of the Crown Proceedings Act 1947 (c. 44)).
In section 254 of IHTA 1984 (evidence), omit subsection (2).
In Schedule 11 to VATA 1994 (administration, collection and enforcement of VAT), in paragraph 14(1) (evidence by certificate), omit paragraph (d) (and the “or” before it).
In Schedule 7 to FA 2001 (aggregates levy: information and evidence etc), in paragraph 12(1)—
in paragraph (a), after “registered,” insert “or”, and
omit paragraphs (c) and (d).
In section 30(2) (additional penalty for keeper of unlicensed vehicle), for “appropriate to the vehicle” substitute “chargeable in respect of using or keeping the vehicle on a public road”.
After section 8 insert—
Section 8C of IHTA 1984 (as inserted by paragraph 2) has effect in relation to cases where the deceased person died before 25 July 1986 but on or after 13 March 1975 (and the survivor dies on or after 9 October 2007) subject as follows. Where the deceased person died on or after 1 January 1985— Where the deceased person died on or after 7 April 1976 and before 1 January 1985— but, if the event occasioning the charge occurred before 27 October 1977, the reference in subsection (4) to the personal nil-rate band maximum is to the amount shown in the second column of the first row, and in the first column of the second row, of the First Table in section 37 of FA 1975 at the time of the deceased person's death. Where the deceased person died on or after 13 March 1975 and before 7 April 1976—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
For the purposes of sections 87 and 87A of TCGA 1992, no account is to be taken of—
any capital payment received before 10 March 1981, or
any capital payment received on or after that date but before 6 April 1984, so far as it represents a chargeable gain which accrued to the trustees before 6 April 1981.
In section 8(1AA)(b) (personal return: amount payable by way of income tax), after “397(1)” insert “or 397A(2)”.
In section 403(1) (dividends from non-UK resident companies: income charged), omit “full”.
Any expenditure incurred by the Commissioners under this Schedule is to be paid out of money provided by Parliament.
In paragraph 16(2) of that Schedule (application of provisions about exchanges etc), after “14(5)” insert “or (5A) (as appropriate)”.
In section 147 (Scotland: legitim etc), insert at the end—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In the application of section 87 of TCGA 1992 for a tax year by virtue of section 88, no account is to be taken of any capital payment received before 6 April 1991.
In section 8A(1AA)(b) (trustee’s return: amount payable by way of income tax), after “397(1)” insert “or 397A(2)”.
In section 406 (dividends of non-UK resident companies: later charge where cash dividends retained in SIPs are paid over), after subsection (4) insert—
In this Schedule—
In paragraph 26(9) of that Schedule (application of disadvantaged areas relief), in the definition of “the relevant partnership property” in the sub-paragraph (1A) inserted by that sub-paragraph, after “14(5)” insert “or (5A) (as appropriate)”.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
This paragraph applies if— For the purposes of that section as it applies to the settlement for the tax year, no account is to be taken of— A settlor “fulfils the residence requirements” when the settlor is—
In section 9(1)(b) (self-assessment of amount payable by way of income tax), after “397(1)” insert “or 397A(2)”.
In section 407 (dividends of non-UK resident companies: dividend payment when dividend shares cease to be subject to SIP), after subsection (4) insert—
In section 239(4) (certificates of discharge: cases where further tax not affected), after paragraph (a) (but before the “or”) insert—.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 87C of TCGA 1992 does not apply in relation to any capital payment received before 6 April 2008.
In section 12AA(1A)(b) (partnership return: amount payable by way of income tax), after “397(1)” insert “or 397A(2)”.
In section 408 (reduction in tax due in cases within section 407), after subsection (2) insert—
In section 247(2) (tax-geared penalty), after “liable” insert “ , or for which any other person is liable by virtue of the operation of section 8A above, ”.
In section 734 of ITA 2007 (reduction in amount charged: previous capital gains tax charge), after subsection (4) insert—
This paragraph applies to a settlement if section 87 or 89(2) of TCGA 1992 applied to it for the tax year 2007-08 or any earlier tax year. The following steps are to be taken for the purposes of calculating the section 2(2) amount for the settlement for the tax year 2007-08 and earlier tax years. Step 1 Calculate (in accordance with section 87 and, where appropriate, section 88) the section 2(2) amount for the settlement for the tax year 2007-08 and earlier tax years. For this purpose, references in section 87(4) and (5) of TCGA 1992 (as substituted) to section 87 of that Act applying to a settlement for a tax year are to be read as references to section 87 of that Act (as it had effect before that substitution) applying to a settlement for a tax year. Step 2 Find the total amount of chargeable gains treated under section 87 or 89(2) as accruing to beneficiaries of the settlement in the tax year 2007-08 or any earlier tax year (“the total deemed gains”). Step 3 Find the earliest tax year for which the section 2(2) amount is not nil. If the section 2(2) amount for that year is less than or equal to the total deemed gains, reduce that section 2(2) amount to nil. Otherwise, reduce that section 2(2) amount by the amount of the total deemed gains. Step 4 Reduce the total deemed gains by the amount by which the section 2(2) amount was reduced under Step 3. Step 5 If the total deemed gains is not nil, start again at Step 3. For this purpose, read references to the earliest tax year for which the section 2(2) amount is not nil as references to the earliest tax year— If, before 6 April 2008, the trustees of the settlement made a transfer of value to which Schedule 4B to TCGA 1992 applied, sub-paragraph (2) has effect subject to such modifications as are just and reasonable on account of Schedule 4C to that Act having applied in relation to the settlement. This paragraph does not apply if section 90 of TCGA 1992 applied to a transfer of settled property by or to the trustees of the settlement that was made before 6 April 2008 (see paragraph 121).
In section 12AB(5) (partnership statement), in the definition of “tax credit”, after “397(1)” insert “or 397A(2)”.
In section 688(1) (income not otherwise charged), omit “full”.
“nil-rate band maximum” has the meaning given by section 8A(7);
If section 90 of TCGA 1992 (as originally enacted) applied to a transfer of settled property made before 6 April 2008, this paragraph applies in relation to the transferor settlement and the transferee settlement. In this paragraph “the year of transfer” means the tax year in which the transfer occurred. This paragraph applies with any necessary modifications in relation to a settlement as respects which more than one relevant transfer was made. In sub-paragraph (4) “relevant transfer” means a transfer— If, before 6 April 2008, the trustees of the transferor or transferee settlement made a transfer of value to which Schedule 4B to TCGA 1992 applied, this paragraph has effect subject to such modifications as are just and reasonable on account of Schedule 4C to that Act having applied in relation to the settlement.
In section 59A(8)(b) (payments on account of income tax), after “397(1)” insert “or 397A(2)”.
If all of a capital payment would (in the tax year 2008-09) have been left out of account by virtue of section 87(6) of TCGA 1992 as originally enacted, the amount of that capital payment is reduced to nil. If part of a capital payment would (in the tax year 2008-09) have been left out of account by virtue of section 87(6) of TCGA 1992 as originally enacted, the amount of that capital payment is reduced by the amount of that part. If— for the purposes of this paragraph treat section 87(6) of TCGA 1992 as originally enacted as having effect in relation to earlier capital payments before later ones. References in this paragraph to section 87(6) of TCGA 1992 include that provision as it would (but for the amendments made by this Schedule) have applied by virtue of section 762(3) of ICTA (offshore income gains). References in this paragraph to chargeable gains include offshore income gains.
In section 59B(2)(b) (payment of income tax), after “397(1)” insert “or 397A(2)”.
Section 89(2) of TCGA 1992 as substituted applies to a settlement for the tax year 2008-09 (and subsequent tax years) if section 89(2) of that Act as originally enacted would (but for the amendments made by this Schedule) have applied to the settlement for the tax year 2008-09.
This paragraph applies if— The individual is not charged to capital gains tax on the chargeable gains if and to the extent that they are treated as accruing by reason of—
This paragraph applies in relation to a settlement for the tax year 2008-09 or any subsequent tax year (“the relevant tax year”) if— For the purposes of sections 87 to 89 of TCGA 1992 as they apply in relation to the settlement for the relevant tax year, no account is to be taken of the capital payment.
The following provisions apply to a settlement if— An election under sub-paragraph (1) may only be made on or before the first 31 January to occur after the end of the first tax year (beginning with the tax year 2008-09) in which an event within either of the following paragraphs occurs— For a tax year as respects which the settlement has a Schedule 4C pool, the reference in sub-paragraph (2)(a) above to a capital payment received (or treated as received) by a beneficiary of the settlement is to be read as a capital payment received (or treated as received) by a beneficiary of a relevant settlement from the trustees of a relevant settlement. Paragraph 8A of that Schedule (relevant settlements) applies for the purposes of sub-paragraph (3) above. An election under sub-paragraph (1) is irrevocable. An election under that sub-paragraph must be made in the way and form specified by the Commissioners for Her Majesty's Revenue and Customs. Sub-paragraph (8) applies if— The individual is not charged to capital gains tax on so much of the chargeable gains as exceeds the relevant proportion of those gains. The relevant proportion is— where— A is what would be the section 2(2) amount for the settlement for the relevant tax year, if immediately before 6 April 2008 every relevant asset had been sold by the trustees (or the company concerned) and immediately re-acquired by them (or it) at the market value at that time, and B is the section 2(2) amount for the settlement for the relevant tax year. For the purposes of sub-paragraph (9) an asset is a “relevant asset” if— For those purposes, an asset is also a “relevant asset” if— In sub-paragraph (11)(c) “the relevant period” means the period beginning at the beginning of 6 April 2008 and ending immediately before the event giving rise to the chargeable gains. If— the new asset (or part of that asset) is a “relevant asset” if the condition in sub-paragraph (10)(b) or the conditions in sub-paragraph (11)(b) and (c) would be met were the references there to the asset to be read as references to the new asset or the original asset. If— for the purposes of sub-paragraph (11) (and this sub-paragraph) treat company B as having owned the asset throughout the period when company A owned it. If an asset is a relevant asset by virtue of sub-paragraph (14), for the purposes of sub-paragraph (9)— If— for the purposes of sub-paragraph (9) treat the appropriate proportion of the asset as a relevant asset and the rest of the asset as if it were not a relevant asset. “The minimum proportion” is the smallest proportion of chargeable gains (if any) that would have been attributable to the trustees on a disposal of the asset at any time in the relevant period (as defined by sub-paragraph (12)). “The appropriate proportion” is the minimum proportion divided by the relevant proportion.
This paragraph applies if— If the trustees of the transferee settlement have made an election under paragraph 126(1), paragraph 126(7) to (9) have effect in relation to the transferee settlement for that year as if the reference in paragraph 126(9) to relevant assets included relevant assets within the meaning of this paragraph. If the trustees of the transferee settlement have not made an election under paragraph 126(1), the individual is not charged to capital gains tax on so much of the chargeable gains mentioned in sub-paragraph (1)(d) above as exceeds the relevant proportion of those gains. The relevant proportion is— where— A is what would be the section 2(2) amount for the transferee settlement for the relevant tax year, if immediately before 6 April 2008 every relevant asset had been sold by the company concerned and immediately re-acquired by it at the market value at that time, and B is the section 2(2) amount for the transferee settlement for the relevant tax year. For the purposes of this paragraph an asset is a “relevant asset” if— In sub-paragraph (5)(c) “the relevant period” means the period beginning at the beginning of 6 April 2008 and ending immediately before the event giving rise to the chargeable gains. Sub-paragraphs (13) to (18) of paragraph 126 apply for the purposes of this paragraph (with such modifications as are necessary) as they apply for the purposes of that paragraph.
Section 14
HODA 1979 is amended as follows.
Section 1 (hydrocarbon oil) is amended as follows. In subsection (1), for “Subsections (2) to (7) below” substitute “ The following provisions ”. After subsection (7) insert—
Section 2A (power to amend definitions) is amended as follows. In subsection (1), for paragraphs (a) to (e) substitute— Omit subsections (1A) and (1B).
In section 6AA (excise duty on biodiesel), after subsection (3) insert—
In section 6AB (excise duty on bioblend), for subsections (3) and (4) substitute—
In section 8 (excise duty on road fuel gas)—
in subsection (2), for “in” substitute “ for ”, and
omit subsection (6).
In section 10 (restrictions on use of duty-free oil), omit subsection (8).
In section 12 (rebate not allowed on fuel for road vehicles), omit subsection (3).
In section 13 (penalties for misuse of rebated heavy oil), omit subsection (7).
In section 13AA (restrictions on use of rebated kerosene), omit subsection (5).
In section 13AB (penalties for misuse of kerosene), omit subsections (3) and (4).
In section 14 (rebate on light oil for use as furnace fuel), omit subsection (9).
After that section insert—
Omit section 17A (repayment of part of duty where biodiesel used otherwise than as road fuel).
Section 20A (mixing: adjustment of duty) is amended as follows. For subsections (1) to (4) substitute— In subsection (5)(a), for the words from “in a” to “only)” substitute “ relevant substances (or specified kinds of relevant substances) in a pipe-line ”.
Section 20AAA (mixing of rebated oil) is amended as follows. Omit subsections (3) and (5). In subsection (9), for “, (2)(a) or (3)” substitute “ or (2)(a) ”.
In section 20AA(1) (power to allow reliefs), after “12(2)” (in both places) insert “ or 14C(3) ”.
Before section 21 (but after the heading “Administration and enforcement”) insert—
In section 23 (prohibition on use etc of road fuel gas on which duty has not been paid), omit subsection (2).
Section 24 (control of duty-free and rebated oil) is amended as follows. In subsection (1), for the words from “section 11,” to “section 14(1),” substitute “ any of sections 11 to 14C, ”. In subsection (2)— In subsection (3)— In subsection (4A)(a), after “oil” insert “ , biodiesel or bioblend ”. In subsection (5), after “oil” insert “ , biodiesel or bioblend ”.
In section 24A (penalties for misuse of marked oil), omit subsection (4).
Section 27 (interpretation) is amended as follows. In subsection (1)— After that subsection insert—
In Schedule 4 (regulations under section 24), omit—
in paragraph 3, “17A,”, and
in paragraph 22, the words from “and section 12(3)(a)” to the end.
In Schedule 5 (sampling), in paragraph 3(1), omit “of oil”.
In consequence of the amendments of HODA 1979, omit—
section 1(2) of FA 1987,
section 5(5) of FA 1996,
in FA 1997—
section 7(7), and
in Schedule 6, paragraph 6(5),
in FA 2002—
section 5(3), and
in Schedule 2, paragraph 4, and
in FA 2004—
section 7(3), and
section 10(2).
The amendments made by this Schedule are treated as having come into force—
so far as they confer a power to make regulations, on 19 March 2008, and
for all other purposes, on 1 April 2008.
Section 16
Section 25
Section 26
Section 28
Section 29
This paragraph has effect subject to section 29 of the Finance Act 2008 (cap on R&D aid).
In Schedule 12 to FA 2002 (tax relief for expenditure on research and development)—
after paragraph 10B insert—,
in paragraph 11(3)(c), insert at the end “and capped SME expenditure (see paragraph 10C)”, and
in paragraph 15(1)(d), insert at the end “or capped SME expenditure”.
This paragraph has effect subject to section 29 of the Finance Act 2008 (cap on R&D aid).
Section 32
Section 34
Chapter 3 of Part 4 of ITTOIA 2005 (dividends etc from UK resident companies etc) is amended as follows.
In the heading of the Chapter, for “etc.”, in the second place, substitute “and tax credits etc. in respect of certain distributions”.
In the heading of section 397, after “distributions” insert “of UK resident companies”.
After section 397 insert—
In section 398(1) (increase in amount or value of dividends where tax credit available)—
after “a tax credit” insert “under section 397 or 397A”, and
for “section 397(1)” substitute “sections 397(1) and 397A(2)”.
In section 399(1) (qualifying distributions received by persons not entitled to tax credits), after “a tax credit” insert “under section 397 or 397A”.
Section 36
Section 36
Section 37
ITTOIA 2005 is amended as follows.
After section 172 insert—
In the heading of Chapter 12 of Part 2, insert at the end insert “on cessation of trade”.
trading stock (in relation to a trade) (in Chapter 11A of Part 2) section 172A
Section 38
In section 127 of FA 1995 (persons not treated as UK representatives), in subsection (3)—
at the end of paragraph (d), insert “and”, and
omit paragraph (f) (and the word “and” preceding it).
In section 127 of FA 1995, for subsections (12) and (13) substitute— In section 1014(2) of ITA 2007 (orders and regulations under the Income Tax Acts: excluded powers), after paragraph (b) insert—.
The amendments made by paragraph 1 have effect in relation to business that relates to investment transactions occurring on or after the day on which this Act is passed. The amendments made by paragraphs 7 to 9 have effect in relation to accounting periods ending on or after the day on which this Act is passed. The amendments made by paragraph 10 have effect for the tax year 2008-09 and subsequent tax years. Subject to sub-paragraphs (1) to (3), the amendments made by this Schedule come into force on the day on which this Act is passed. But, despite the coming into force of paragraph 2, 3 or 5— continue to have effect until such time as the first regulations under the new regulation-making power come into force. In sub-paragraph (5)—
Section 43
Section 44
Section 53
Section 55
Section 60
Section 62
Section 63
Section 74
CAA 2001 is amended as follows.
In Part 2, after Chapter 3 insert—
In Chapter 5 of Part 2 (allowances and charges), insert at the beginning—
After section 52 insert—
In section 58 (allocation of qualifying expenditure to pools), after subsection (4) insert—
Section 205 (reduction of first-year allowances) is amended as follows. In subsection (1), after “any” insert “annual investment allowance or”. In the heading, after “of” insert “annual investment allowance and”.
Section 210 (reduction of first-year allowances) is amended as follows. In subsection (1), after “amount of any” insert “annual investment allowance or”. In the heading, after “of” insert “annual investment allowance and”.
Section 217 (restrictions on allowances) is amended as follows. In subsection (1), for “a first-year allowance is not” substitute “no annual investment allowance or first-year allowance is”. In subsection (2), after “Any” insert “annual investment allowance or”. In the heading, after “No” insert “annual investment allowance or”.
After section 218 insert—
Section 236 (additional VAT liability generates first-year allowance) is amended as follows. After subsection (3) insert— In the heading, after “allowance” insert “or annual investment allowance”.
In section 237(1) (exceptions to section 236), after “liability is not” insert “AIA qualifying expenditure or”.
Section 241 (no first-year allowance in respect of additional VAT liability) is amended as follows. In subsection (1)(b), before “a first-year” insert “an annual investment allowance or”. In subsection (2), for “A first-year allowance is not” substitute “No annual investment allowance or first-year allowance is”. In subsection (3), after “Any” insert “annual investment allowance or”. In the heading, after “No” insert “annual investment allowance or”.
In section 263(3) (qualifying activities carried on in partnership), after “Any” insert “annual investment allowance,”.
In section 265(4) (successions: general), after “to” insert “an annual investment allowance or”.
AIA qualifying expenditure section 38A
This Schedule has effect in relation to expenditure incurred on or after the relevant date. In relation to a chargeable period which— the maximum allowance under section 51A of CAA 2001 is to be calculated as if the period beginning with the relevant date and ending with the end of the chargeable period were the chargeable period. The relevant date is—
Section 79
CAA 2001 is amended as follows.
In section 2(3) (general means of giving effect to capital allowances), for “262” substitute “262A”.
Section 3 (claims for capital allowances) is amended as follows. In subsection (1), after “Act” insert “, and no first-year tax credit is to be paid under Schedule A1,”. After subsection (2A) insert—
After section 262 insert—
Before Schedule 1 insert—
FA 2000 The Finance Act 2000 (c. 17) FA 2001 The Finance Act 2001 (c. 9) FA 2002 The Finance Act 2002 (c. 23)
The amendments made by this Schedule have effect in relation to expenditure incurred on or after 1 April 2008.
Section 82
Section 84
Section 91
Section 92
Section 94
Section 97
Omit section 72(14) of FA 2007 (saving relating to changes to Part 3 of Schedule 15 to FA 2003).
This paragraph applies in the case of a transfer of a chargeable interest to a partnership falling within paragraph 10(1)(a), (b) or (c) of Schedule 15 to FA 2003 where the effective date of the transaction is before the day on which this Act is passed. The purchaser in relation to the transaction may at any time before the end of the period of 12 months beginning with that day amend the land transaction return in respect of that transaction so as to make an election under paragraph 12A of Schedule 15 to FA 2003 (inserted by this Schedule). An election made in reliance on sub-paragraph (2) has effect as if it had been made on the date on which the land transaction return was made, even though paragraph 12A of Schedule 15 to FA 2003 was not in force at that time. Where an election is made in reliance on sub-paragraph (2), the power under paragraph 12A(5)(b) of Schedule 15 to FA 2003 to amend a land transaction return in respect of an affected transaction to take account of that election may be exercised at any time before the end of the period of 12 months beginning with the day on which this Act is passed.
Section 99
Section 107
This is Schedule 20A to be inserted before Schedule 21 to FA 1993—
Section 109
Section 111
Section 113
Section 115
Section 116
Section 118
Section 122
Schedule 24 to FA 2007 (penalties for errors) is amended as follows.
Paragraph 1 (error in taxpayer’s document) is amended as follows. In sub-paragraph (2)— In sub-paragraph (3), for “careless or deliberate (within the meaning of paragraph 3)” substitute “careless (within the meaning of paragraph 3) or deliberate on P’s part”. Income tax Return under section 254 of FA 2004. Insurance premium tax Return under regulations under section 54 of FA 1994. Insurance premium tax Return, statement or declaration in connection with a claim. Inheritance tax Account under section 216 or 217 of IHTA 1984. Inheritance tax Information or document under regulations under section 256 of IHTA 1984. Inheritance tax Statement or declaration in connection with a deduction, exemption or relief. Stamp duty land tax Return under section 76 of FA 2003. Stamp duty reserve tax Return under regulations under section 98 of FA 1986. Petroleum revenue tax Return under paragraph 2 of Schedule 2 to the Oil Taxation Act 1975. Petroleum revenue tax Statement or declaration in connection with a claim under Schedule 5, 6, 7 or 8 to the Oil Taxation Act 1975. Petroleum revenue tax Statement under section 1(1)(a) of the Petroleum Revenue Tax Act 1980. Aggregates levy Return under regulations under section 25 of FA 2001. Climate change levy Return under regulations under paragraph 41 of Schedule 6 to FA 2000. Landfill tax Return under regulations under section 49 of FA 1996. Air passenger duty Return under section 38 of FA 1994. Alcoholic liquor duties Return under regulations under section 13, 49, 56 or 62 of the Alcoholic Liquor Duties Act 1979. Alcoholic liquor duties Statement or declaration in connection with a claim for repayment of duty under section 4(4) of FA 1995. Tobacco products duty Return under regulations under section 7 of the Tobacco Products Duties Act 1979. Hydrocarbon oil duties Return under regulations under section 21 of the Hydrocarbon Oil Duties Act 1979. Excise duties Return under regulations under section 93 of CEMA 1979. Excise duties Return under regulations under section 100G or 100H of CEMA 1979. Excise duties Statement or declaration in connection with a claim. General betting duty Return under regulations under paragraph 2 of Schedule 1 to BGDA 1981. Pool betting duty Return under regulations under paragraph 2A of Schedule 1 to BGDA 1981. Bingo duty Return under regulations under paragraph 9 of Schedule 3 to BGDA 1981. Lottery duty Return under regulations under section 28(2) of FA 1993. Gaming duty Return under directions under paragraph 10 of Schedule 1 to FA 1997. Remote gaming duty Return under regulations under section 26K of BGDA 1981. In the Table, in the last entry, in column 1, for “Income tax, capital gains tax, corporation tax or VAT” substitute “Any of the taxes mentioned above”. In relation to a return under paragraph 2 of Schedule 2 to the Oil Taxation Act 1975, references in this Schedule to P include any person who, after the giving of the return for a taxable field (within the meaning of that Act), becomes the responsible person for the field (within the meaning of that Act).
After that paragraph insert—
Paragraph 2 (under-assessment by HMRC) is amended as follows. In sub-paragraph (1), for “tax” substitute “a relevant tax”. In sub-paragraph (1) “relevant tax” means any tax mentioned in the Table in paragraph 1.
Paragraph 3 (degrees of culpability) is amended as follows In sub-paragraph (1)— In sub-paragraph (2), after “deliberate” insert “on P’s part”.
The penalty payable under paragraph 1A is 100% of the potential lost revenue.
In paragraph 5(1) (potential lost revenue: normal rule), after “document” insert “(including an inaccuracy attributable to a supply of false information or withholding of information)”.
Paragraph 6 (potential lost revenue: multiple errors) is amended as follows. In sub-paragraphs (1) and (2), after “penalty” insert “under paragraph 1”. In sub-paragraph (5), after “calculating” insert “for the purposes of a penalty under paragraph 1”.
Paragraph 9 (reductions for disclosure) is amended as follows. Paragraph 10 provides for reductions in penalties under paragraphs 1, 1A and 2 where a person discloses an inaccuracy, a supply of false information or withholding of information, or a failure to disclose an under-assessment. In sub-paragraph (1)— In sub-paragraph (2)(a), for “or under-assessment” substitute “, the supply of false information or withholding of information, or the under-assessment”.
In paragraph 11(1) (special reduction), after “1” insert “, 1A”.
Paragraph 12 (interaction with other penalties) is amended as follows. In sub-paragraph (2), for the words after “other penalty” substitute “incurred by P, or any surcharge for late payment of tax imposed on P, if the amount of the penalty or surcharge is determined by reference to the same tax liability.” Where penalties are imposed under paragraphs 1 and 1A in respect of the same inaccuracy, the aggregate of the amounts of the penalties must not exceed 100% of the potential lost revenue. In the heading before paragraph 12, insert at the end “and late payment surcharges”.
Paragraph 13 (assessment) is amended as follows. In sub-paragraph (1)— A penalty under paragraph 1, 1A or 2 must be paid before the end of the period of 30 days beginning with the day on which notification of the penalty is issued. In sub-paragraph (3)— In sub-paragraph (4), for the words after “made” substitutebefore the end of the period of 12 months beginning with—
In paragraph 15 (right of appeal)—
for “P may” (in each place) substitute “A person may”, and
for “by P” (in each place) substitute “by the person”.
For paragraph 16 substitute—
In paragraph 18(3) (agency), after “penalty” insert “under paragraph 1 or 2”.
Paragraph 19 (companies: officers' liability) is amended as follows. In sub-paragraph (1), for the words from “of the company” to “as they” substitute “of the company, the officer is liable to pay such portion of the penalty (which may be 100%) as HMRC”. Where HMRC have specified a portion of a penalty in a notice given to an officer under sub-paragraph (1)—
In paragraph 21 (double jeopardy)—
for “P is” substitute “A person is”,
after “1” insert “, 1A”, and
for “P has” substitute “the person has”.
In paragraph 22 (interpretation: introduction), for “26” substitute “27”.
After paragraph 23 insert—
Paragraph 28 (interpretation) is amended as follows. In paragraph (c) (meaning of “direct tax”), omit “and” after paragraph (ii) and after paragraph (iii) insertand. After paragraph (d) insert—. In paragraph (f), insert at the end “against tax or to a payment of a corporation tax credit”. After that paragraph insert—.
In consequence of this Schedule the following provisions are omitted—
paragraphs 8 and 9 of Schedule 2 to OTA 1975,
in section 1(3B) of the Petroleum Revenue Tax Act 1980, “, 8 and 9”,
in IHTA 1984—
section 247(1) and (2),
in section 248, in subsection (1), “account,” and “delivered,” (in both places) and, in subsection (2), “under section 247 above”, and
section 250(2),
in FA 1994—
section 8, and
paragraphs 12 and 13 of Schedule 7,
paragraphs 18 to 20 of Schedule 5 to FA 1996,
paragraphs 83ZA(4) and (5), 83F, 83L, 83R and 83X of Schedule 18 to FA 1998,
section 108(2)(a) of FA 1999,
paragraphs 98 to 100 of Schedule 6 to FA 2000,
in Schedule 6 to FA 2001, paragraphs 7 to 9, and in paragraph 9A(5), paragraph (b) and the “or” before it,
section 133(2) to (4) of FA 2002,
in FA 2003—
section 192(8), and
paragraph 8 of Schedule 10 to FA 2003, and
section 295(4)(a) of FA 2004.
Section 123
Section 125
Schedule 5 to FA 1994 (customs and excise decisions subject to review and appeal) is amended as follows.
Sub-paragraph (1) of paragraph 3 (decisions under or for the purposes of ALDA 1979) is amended as follows. After paragraph (h) insert—. After paragraph (k) insert—. After paragraph (m) insert—.
Sub-paragraph (2) of paragraph 3 (decisions under regulations under section 13 or 77 of ALDA 1979) is amended as follows. After “a decision” insert—. Insert at the end; or
Any decision which is made under or for the purposes of any regulations under section 15 of the Alcoholic Liquor Duties Act 1979 (distillers' warehouses) and is a decision as to whether or not a person is to be required to give security for the fulfilment of an obligation or as to the form or amount of, or the conditions of, any such security. Any decision which is made under or for the purposes of section 41A or 47, or any regulations under section 49, of the Alcoholic Liquor Duties Act 1979 (regulation of the making of beer) and is a decision—
Sub-paragraph (3) of paragraph 3 (decisions under section 55, and regulations under section 56, of ALDA 1979) is amended as follows. For “section 55” substitute “section 54 or 55”. After “a decision” insert—. For “that section” substitute “section 54 or 55”. Insert at the end—
Any decision which is made under or for the purposes of section 62 of the Alcoholic Liquor Duties Act 1979 (regulation of the making of cider), or any regulations under that section, and is a decision—
After paragraph 9 insert—
Section 129
Section 138
Section 145
Section 157