Finance (No. 2) Act 2023

July 19, 2023

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<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-income-tax-charge-rates-etc"><heading>Income tax charge, rates etc</heading><section eId="section-1"><n

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-1"><num>1</num><heading>Income tax charge for tax year 2023-24</heading><content>Income tax is charged for the tax year 2023-24.</content></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-2"><num>2</num><heading>Main rates of income tax for tax year 2023-24</heading><intro>For the tax year 2023-24 the main rates of income tax are as follows—</intro><level class="para1" eId="section-2-a"><num>(a)</nu

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-2-a"><num>(a)</num><content>the basic rate is 20%,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-2-b"><num>(b)</num><content>the higher rate is 40%, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-2-c"><num>(c)</num><content>the additional rate is 45%.</content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-3"><num>3</num><heading>Default and savings rates of income tax for tax year 2023-24</heading><subsection eId="section-3-1"><num>(1)</num><intro>For the tax year 2023-24 the default rates of income tax are as follows—<

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-3-1"><num>(1)</num><intro>For the tax year 2023-24 the default rates of income tax are as follows—</intro><level class="para1" eId="section-3-1-a"><num>(a)</num><content>the default basic rate is 20%,</co

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-3-1-a"><num>(a)</num><content>the default basic rate is 20%,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-3-1-b"><num>(b)</num><content>the default higher rate is 40%, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-3-1-c"><num>(c)</num><content>the default additional rate is 45%.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-3-2"><num>(2)</num><intro>For the tax year 2023-24 the savings rates of income tax are as follows—</intro><level class="para1" eId="section-3-2-a"><num>(a)</num><content>the savings basic rate is 20%,</co

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-3-2-a"><num>(a)</num><content>the savings basic rate is 20%,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-3-2-b"><num>(b)</num><content>the savings higher rate is 40%, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-3-2-c"><num>(c)</num><content>the savings additional rate is 45%.</content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-4"><num>4</num><heading>Freezing starting rate limit for savings for tax year 2023-24</heading><subsection eId="section-4-1"><num>(1)</num><content>For the tax year 2023-24 the amount specified in section 12(3) of ITA

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-4-1"><num>(1)</num><content>For the tax year 2023-24 the amount specified in section 12(3) of ITA 2007 (the starting rate limit for savings) is “£5,000”.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-4-2"><num>(2)</num><content>Accordingly, section 21 of that Act (indexation) does not apply in relation to the starting rate limit for savings for that tax year.</content></subsection>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-corporation-tax-charge-and-rates"><heading>Corporation tax charge and rates</heading><section eId="sect

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5"><num>5</num><heading>Charge and main rate for financial year 2024</heading><subsection eId="section-5-1"><num>(1)</num><content>Corporation tax is charged for the financial year 2024.</content></subsection><subs

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5-1"><num>(1)</num><content>Corporation tax is charged for the financial year 2024.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5-2"><num>(2)</num><content>The main rate of corporation tax for that year is 25%.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-6"><num>6</num><heading>Standard small profits rate and fraction for financial year 2024</heading><subsection eId="section-6-1"><num>(1)</num><intro>For the purposes of Part 3A of CTA 2010, for the financial year 2024—

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-6-1"><num>(1)</num><intro>For the purposes of Part 3A of CTA 2010, for the financial year 2024—</intro><level class="para1" eId="section-6-1-a"><num>(a)</num><content>the standard small profits rate is 19%, a

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-6-1-a"><num>(a)</num><content>the standard small profits rate is 19%, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-6-1-b"><num>(b)</num><content>the standard marginal relief fraction is 3/200ths.</content></level>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:default="http://www.w3.org/1999/xhtml" name="crossheading" ukl:Name="Pblock" eId="part-1-crossheadin

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-7"><num>7</num><heading>Temporary full expensing et

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-7-1"><num>(1)</num><content>Part 2 of CAA 2001 (plant and machinery allowances) has effect as if the following amendments were made.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-7-2"><num>(2)</num><content><mod>Section 39 (

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-7-3"><num>(3)</num><content><mod>Chapter 4 has effect as if after section 45R there were i

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" class="para1" eId="section-7-4-a"><num>(a)</num><content><mod>i

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-7-4-b"><num>(b)</num><content><mod>after subsection (4) there were inserted—<quot

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-7-6"><num>(6)</num><content><mod>Chapter 5 has effect as if after section 59 there were in

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8"><num>8</num><heading>Annual investment allowance to remain at £1M beyond temporary period</heading><subsection eId="section-8-1"><num>(1)</num><content>The amount of £1,000,000 which is specified in section 51A(5) o

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8-1"><num>(1)</num><content>The amount of £1,000,000 which is specified in section 51A(5) of CAA 2001 as the maximum allowance in relation to expenditure incurred in the period beginning with 1 January 2019 and endi

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8-2"><num>(2)</num><intro>Accordingly—</intro><level class="para1" eId="section-8-2-a"><num>(a)</num><content><mod>in section 51A of CAA 2001, for the amount specified in subsection (5) as the maximum allowan

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-8-2-a"><num>(a)</num><content><mod>in section 51A of CAA 2001, for the amount specified in subsection (5) as the maximum allowance (which in the absence of this section would be £200,000 in relation to expe

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-8-2-b"><num>(b)</num><content>the temporary AIA transitional provisions cease to have effect in relation to chargeable periods beginning before 1 April 2023 and ending on or after that date.</content></

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8-3"><num>(3)</num><intro>For this purpose “<term refersTo="#term-the-temporary-aia-transitional-provisions" eId="term-the-temporary-aia-transitional-provisions">the temporary AIA transitional provisions</term>” mea

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-8-3-a"><num>(a)</num><content>paragraphs 2 and 3 of Schedule 13 to FA 2019, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-8-3-b"><num>(b)</num><content>section 32 of FA 2019, section 15 of FA 2021 and section 12 of FA 2022 so far as relating to those paragraphs.</content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-9"><num>9</num><heading>First-year allowance for expenditure on electric vehicle charge points</heading><content><mod>In section 45EA of CAA 2001 (expenditure on plant or machinery for electric vehicle charging point),

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-other-reliefs-relating-to-businesses"><head

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-10"><num>10</num><heading>Relief for research and development</heading><intro><ref href="#schedule-1">Schedule 1</ref> makes provision in relation to the corporation tax relief contained in Chapter 6A of Part 3 of CTA

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-10-a"><num>(a)</num><content>conferring relief in respect of expenditure on data and cloud computing services,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-10-b"><num>(b)</num><content>about the administration and management of claims for relief,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-10-c"><num>(c)</num><content>about the circumstances in which an enterprise counts as a small or medium-sized enterprise and in which accounts are to be treated as prepared on a going concern basis, and

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-10-d"><num>(d)</num><content>limiting relief for expenditure incurred on payments to expenditure incurred on payments made before the making of a claim for the relief.</content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-11"><num>11</num><heading>Treatment of profits from patents etc: small profits rate of corporati

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-11-1"><num>(1)</num><intro>In section 357A of CTA 2010 (election for special treatment of

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-11-1-a"><num>(a)</num><content><mod>in the formula, in both places it occurs, for “MR” substitute <quotedText>“AR”</quotedText>;</mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-11-1-b"><num>(b)</num><content><mod>for the definition of “MR” substitute—<quoted

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-11-2"><num>(2)</num><content>The amendments made by <ref href="#section-11-1">subsection (1)</ref> have effect in relation to accounting periods beginning on or after 1 April 2023.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-12"><num>12</num><heading>Energy (oil and gas) profits levy: de-carbonisation allowance</heading

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-12-1"><num>(1)</num><content>The Energy (Oil and Gas) Profits Levy Act 2022 is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-12-2"><num>(2)</num><content><mod>In section 2 (additional expenditure treated as incurred

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-12-3"><num>(3)</num><content><mod>In that section, after subsection (4) insert—<quotedStru

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-12-4"><num>(4)</num><content><mod>After that section insert—<quotedStructure startQuote="&

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-12-5"><num>(5)</num><content><mod>In section 3 (section 2: meaning of “operating expenditu

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-12-6"><num>(6)</num><intro>In section 18(1) (interpretation)—</intro><level class="par

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-12-6-a"><num>(a)</num><content><mod>after the definition of “energy (oil and gas)

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-12-6-b"><num>(b)</num><content><mod>omit the “and” before the definition of “ring

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-12-7"><num>(7)</num><content>The amendments made by subsections (2) to (4) have effect in relation to expenditure incurred on or after 1 January 2023 and the amendments made by subsections (5) and (6) have effect in

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-13"><num>13</num><heading>Museums and galleries exhibition tax relief: extension of sunset date</heading><content><mod>In section 1218ZCG(1)(c) of CTA 2009 (date before which qualifying expenditure must be incurred), f

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-14"><num>14</num><heading>Extension of the temporary increase in theatre tax credit etc</heading><subsection eId="section-14-1"><num>(1)</num><intro>In each of the following provisions of FA 2022—</intro><level cla

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-14-1"><num>(1)</num><intro>In each of the following provisions of FA 2022—</intro><level class="para1" eId="section-14-1-a"><num>(a)</num><content>section 17(2) (temporary increase in amount of theatre tax cr

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-14-1-a"><num>(a)</num><content>section 17(2) (temporary increase in amount of theatre tax credit),</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-14-1-b"><num>(b)</num><content>section 19(2) (corresponding provision for orchestra tax credit), and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-14-1-c"><num>(c)</num><content>section 21(2) (corresponding provision for museums and galleries exhibition tax credit),</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-14-2"><num>(2)</num><intro>In each of the following provisions of that Act (which provide for an increase in the amount of those credits for a further year but at a lower rate than that provided for by sections 17(2

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-14-2-a"><num>(a)</num><content>section 17(3),</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-14-2-b"><num>(b)</num><content>section 19(3), and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-14-2-c"><num>(c)</num><content>section 21(3),</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-14-3"><num>(3)</num><intro>In each of the following provisions of that Act (which deal with straddling periods for those credits)—</intro><level class="para1" eId="section-14-3-a"><num>(a)</num><content>secti

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-14-3-a"><num>(a)</num><content>section 17(4),</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-14-3-b"><num>(b)</num><content>section 19(4), and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-14-3-c"><num>(c)</num><content>section 21(4),</content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-15"><num>15</num><heading>Seed enterprise investment scheme: increase of limits etc.</heading><s

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-15-1"><num>(1)</num><content>Part 5A of ITA 2007 (seed enterprise investment scheme) is amended in accordance with subsections <ref href="#section-15-2">(2)</ref> to <ref href="#section-15-5">(5)</ref>.</content

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-15-2"><num>(2)</num><content><mod>In section 257AB (form and amount of SEIS relief), in subsection (2)(b), for “£100,000” substitute <quotedText>“£200,000”</quotedText>.</mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-15-3"><num>(3)</num><intro>In section 257DI (the gross assets requirement)—</intro><level class="para1" eId="section-15-3-a"><num>(a)</num><content><mod>in subsection (1), for “£200,000” substitute <quotedTex

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-15-3-a"><num>(a)</num><content><mod>in subsection (1), for “£200,000” substitute <quotedText>“£350,000”</quotedText>;</mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-15-3-b"><num>(b)</num><content><mod>in subsection (2), for “£200,000” substitute <quotedText>“£350,000”</quotedText>.</mod></content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-15-4"><num>(4)</num><intro><mod>In section 257DL (the amount raised through the SEIS), in each of the following provisions, for “£150,000” substitute <quotedText>“£250,000”</quotedText>—</mod></intro><level clas

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-15-4-a"><num>(a)</num><content>subsection (1);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-15-4-b"><num>(b)</num><content>subsection (4)(a);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-15-4-c"><num>(c)</num><content>subsection (4)(b);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-15-4-d"><num>(d)</num><content>in subsection (6), the definition of “A”.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-15-5"><num>(5)</num><intro>In section 257HF (meaning of “<term refersTo="#term-new-qualify

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-15-5-a"><num>(a)</num><content><mod>in subsection (1)(a), for “two” substitute <quotedText>“three”</quotedText>;</mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-15-5-b"><num>(b)</num><content><mod>in subsection (2), for the definition of “two

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-15-6"><num>(6)</num><intro>In Schedule 5BB to TCGA 1992 (seed enterprise investment scheme: re-investment), in paragraph 2—</intro><level class="para1" eId="section-15-6-a"><num>(a)</num><content><mod>in sub-

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-15-6-a"><num>(a)</num><content><mod>in sub-paragraph (1), for “£100,000” substitute <quotedText>“£200,000”</quotedText>;</mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-15-6-b"><num>(b)</num><content><mod>in sub-paragraph (2), in the formula, for “£100,000” substitute <quotedText>“£200,000”</quotedText>.</mod></content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-15-7"><num>(7)</num><content>The amendments made by this section have effect in relation to shares issued on or after 6 April 2023.</content></subsection>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-reliefs-for-employees"><heading>Reliefs for

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-16"><num>16</num><heading>CSOP schemes: share value limit and share class</heading><subsection e

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-16-1"><num>(1)</num><content>Schedule 4 to ITEPA 2003 (CSOP schemes) is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-16-2"><num>(2)</num><intro>In paragraph 6 (limit on value of shares subject to options)—</

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-16-2-a"><num>(a)</num><content><mod>in sub-paragraph (1), in the words after paragraph (b), for “£30,000” substitute <quotedText>“£60,000”</quotedText>;</mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-16-2-b"><num>(b)</num><content><mod>after sub-paragraph (4) insert—<quotedStructu

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-16-3"><num>(3)</num><intro>In paragraph 15 (requirements relating to shares that may be subject to share options: introduction), in sub-paragraph (1)—</intro><level class="para1" eId="section-16-3-a"><num>(a)</n

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-16-3-a"><num>(a)</num><content><mod>after the entry for paragraph 17 insert <quotedText>“, and”</quotedText>;</mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-16-3-b"><num>(b)</num><content>omit the entry for paragraph 20 and the “, and” before it.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-16-4"><num>(4)</num><content>Omit paragraph 20 (requirements as to other shareholdings).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-16-5"><num>(5)</num><content><mod>In paragraph 27 (requirement about share options granted in exchange), in sub-paragraph (4)(a), for “20” substitute <quotedText>“18”</quotedText>.</mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-16-6"><num>(6)</num><content>The amendments made by <ref href="#section-16-2">subsection (2)</ref> have effect for the purposes of determining whether a share option may be granted to an individual on or after 6 Apr

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-16-7"><num>(7)</num><intro>The amendments made by subsections <ref href="#section-16-3">(3)</ref> and <ref href="#section-16-4">(4)</ref> have effect in relation to—</intro><level class="para1" eId="section-16-7

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-16-7-a"><num>(a)</num><content>share options granted on or after the commencement day, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-16-7-b"><num>(b)</num><content>shares acquired by the exercise of share options on or after the commencement day (regardless of when those share options were granted).</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-16-8"><num>(8)</num><content>The amendment made by subsection <ref href="#section-16-5">(5)</ref> has effect in relation to share options granted on or after the commencement day.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-16-9"><num>(9)</num><content>A CSOP scheme which was approved by, or notified to, His Majesty’s Revenue and Customs before the commencement day has effect on and after the commencement day with any modifications nee

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-16-10"><num>(10)</num><intro>In particular, such a CSOP scheme has effect from the commencement day with—</intro><level class="para1" eId="section-16-10-a"><num>(a)</num><content><mod>the substitution of <quo

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-16-10-a"><num>(a)</num><content><mod>the substitution of <quotedText>“£60,000”</quotedText> for “£30,000” in any provision required by paragraph 6 of Schedule 4 to ITEPA 2003;</mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-16-10-b"><num>(b)</num><content>the omission of any provision that (before the amendments made by this section) was required by paragraph 20 of that Schedule by virtue of paragraph 15(1) of that Schedule.</

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-16-11"><num>(11)</num><content>In this section, “<term refersTo="#term-csop-scheme" eId="term-csop-scheme">CSOP scheme</term>” and “<term refersTo="#term-share-option" eId="term-share-option">share option</term>” ha

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-17"><num>17</num><heading>Enterprise management incentives: restricted shares and declarations</heading><subsection eId="section-17-1"><num>(1)</num><content>Schedule 5 to ITEPA 2003 (enterprise management incentives)

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-17-1"><num>(1)</num><content>Schedule 5 to ITEPA 2003 (enterprise management incentives) is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-17-2"><num>(2)</num><content>In Part 5 (requirements relating to options), in paragraph 37 (terms of option to be agreed in writing) omit sub-paragraphs (4) and (5).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-17-3"><num>(3)</num><intro>In Part 7 (notification of option to HMRC), in paragraph 44 (notice of option to be given to HMRC)—</intro><level class="para1" eId="section-17-3-a"><num>(a)</num><intro>in sub-para

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-17-3-a"><num>(a)</num><intro>in sub-paragraph (5)—</intro><level class="para2" eId="section-17-3-a-i"><num>(i)</num><content><mod>after paragraph (a) insert <quotedText>“and”</quotedText>;</mod><

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-17-3-a-i"><num>(i)</num><content><mod>after paragraph (a) insert <quotedText>“and”</quotedText>;</mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-17-3-a-ii"><num>(ii)</num><content>omit paragraph (c) and the “, and” immediately before it;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-17-3-b"><num>(b)</num><content>omit sub-paragraphs (5A) and (6).</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-17-4"><num>(4)</num><content>In Part 8 (supplementary provisions) omit paragraph 57A (penalty for non-compliance with paragraph 44(5A)).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-17-5"><num>(5)</num><intro>The amendments made by this section have effect in relation to—</intro><level class="para1" eId="section-17-5-a"><num>(a)</num><content>share options granted on or after 6 April 202

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-17-5-a"><num>(a)</num><content>share options granted on or after 6 April 2023, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-17-5-b"><num>(b)</num><content>share options granted before 6 April 2023 which are capable of being exercised on or after that date (“relevant options”).</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-17-6"><num>(6)</num><intro>But if—</intro><level class="para1" eId="section-17-6-a"><num>(a)</num><content>an employer company has granted relevant options to persons by reason of their employment with the co

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-17-6-a"><num>(a)</num><content>an employer company has granted relevant options to persons by reason of their employment with the company, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-17-6-b"><num>(b)</num><content>the effect of <ref href="#section-17-5">subsection (5)</ref><ref href="#section-17-5-b">(b)</ref> would otherwise be that a relevant requirement would not be met in relation t

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-17-7"><num>(7)</num><intro>The arrangements must—</intro><level class="para1" eId="section-17-7-a"><num>(a)</num><content>set out the criteria by reference to which the determination will be made, and</co

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-17-7-a"><num>(a)</num><content>set out the criteria by reference to which the determination will be made, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-17-7-b"><num>(b)</num><content>be made available to persons who may be affected by the determination.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-17-8"><num>(8)</num><content>If the employer company fails to make arrangements in accordance with <ref href="#section-17-7">subsection (7)</ref> in a case where it is required to do so by <ref href="#section-17-6">

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-17-9"><num>(9)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-relevant-day" eId="term-relevant-day">relevant day</term>” means 6 July following the end of th

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“<term refersTo="#term-relevant-day" eId="term-relevant-day">relevant day</term>” means 6 July following the end of the first tax year in which a relevant option granted by the employer company is exer

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“<term refersTo="#term-relevant-options" eId="term-relevant-options">relevant options</term>” has the meaning given in <ref href="#section-17-5">subsection (5)</ref><ref href="#section-17-5-b">(b)</ref

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“<term refersTo="#term-relevant-requirement" eId="term-relevant-requirement">relevant requirement</term>” means any of the requirements in paragraphs 5(1), 6(2) or (4) or 7(1) of Schedule 5 to ITEPA 20

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“<term refersTo="#term-share-option" eId="term-share-option">share option</term>” and “<term refersTo="#term-employer-company" eId="term-employer-company">employer company</term>” have the same meaning

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:default="http://www.w3.org/1999/xhtml" xmlns:default1="http://www.w3.org/1998/Math/MathML" name="cro

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-18"><num>18</num><heading>Lifetime allowance charge abolished</heading><subsection eId="section-18-1"><num>(1)</num><content>No lifetime allowance charge arises for the tax year 2023-24 or any subsequent tax year.<

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-18-1"><num>(1)</num><content>No lifetime allowance charge arises for the tax year 2023-24 or any subsequent tax year.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-18-2"><num>(2)</num><content>Subsection <ref href="#section-18-1">(1)</ref> does not affect the continued operation of any provision of Part 4 of FA 2004 (pension schemes etc) so far as it has effect for purposes ot

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-19"><num>19</num><heading>Certain lump sums to be taxed at marginal rate</heading><subsection eId="section-19-1"><num>(1)</num><intro>Subsection <ref href="#section-19-2">(2)</ref> applies to any relevant lump sum, or

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-19-1"><num>(1)</num><intro>Subsection <ref href="#section-19-2">(2)</ref> applies to any relevant lump sum, or any part of a relevant lump sum, that—</intro><level class="para1" eId="section-19-1-a"><num>(a)</nu

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-19-1-a"><num>(a)</num><content>is paid under a registered pension scheme, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-19-1-b"><num>(b)</num><content>would, disregarding section <ref href="#section-18">18</ref>, have been chargeable to income tax under sections 214 to 226 of FA 2004 (lifetime allowance charge).</content

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-19-2"><num>(2)</num><content>Section 579A of ITEPA 2003 (pensions under registered pension schemes) applies in relation to the relevant lump sum or part of the relevant lump sum as it applies to any pension under a

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-19-3"><num>(3)</num><intro>Subsection <ref href="#section-19-4">(4)</ref> applies to any lump sum, or any part of a lump sum, that—</intro><level class="para1" eId="section-19-3-a"><num>(a)</num><content>is p

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-19-3-a"><num>(a)</num><content>is paid under a relieved non-UK pension scheme,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-19-3-b"><num>(b)</num><content>would have been a relevant lump sum within subsection <ref href="#section-19-5">(5)</ref><ref href="#section-19-5-a">(a)</ref>, <ref href="#section-19-5-c">(c)</ref> or <ref h

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-19-3-c"><num>(c)</num><content>would, disregarding section <ref href="#section-18">18</ref>, have been chargeable to income tax under sections 214 to 226 of FA 2004 (as applied by paragraphs 13 to 19 of Sch

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-19-4"><num>(4)</num><content>Section 573 of ITEPA 2003 (foreign pensions) applies in relation to the lump sum or part of the lump sum as it applies to any pension paid by or on behalf of a person who is outside the

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-19-5"><num>(5)</num><intro>In this section “<term refersTo="#term-relevant-lump-sum" eId="term-relevant-lump-sum">relevant lump sum</term>” means—</intro><level class="para1" eId="section-19-5-a"><num>(a)</num><

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-19-5-a"><num>(a)</num><content>a serious ill-health lump sum,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-19-5-b"><num>(b)</num><content>a lifetime allowance excess lump sum,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-19-5-c"><num>(c)</num><content>a defined benefits lump sum death benefit, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-19-5-d"><num>(d)</num><content>an uncrystallised funds lump sum death benefit;</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-19-6"><num>(6)</num><content>Expressions used in subsection <ref href="#section-19-5">(5)</ref> have the same meaning as in Part 4 of FA 2004 (see Schedule 29 to that Act).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-19-7"><num>(7)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-registered-pension-scheme" eId="term-registered-pension-scheme">registered pension scheme</term

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“<term refersTo="#term-registered-pension-scheme" eId="term-registered-pension-scheme">registered pension scheme</term>” has the same meaning as in Part 4 of FA 2004 (see section 150(2) of that Act);</

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“<term refersTo="#term-relieved-non-uk-pension-scheme" eId="term-relieved-non-uk-pension-scheme">relieved non-UK pension scheme</term>” has the meaning given by paragraph 13(3) of Schedule 34 to FA 200

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1"><num>(a)</num><content>the preparation of food for human consumption, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1"><num>(b)</num><content>the preparation of any beverage of an alcoholic strength not exceeding 1.2%;</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-19-8"><num>(8)</num><content>This section has effect for the tax year 2023-24 and subsequent tax years.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-20"><num>20</num><heading>Annual allowance increased</heading><subsection eId="section-20-1"><nu

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-20-1"><num>(1)</num><content>In Part 4 of FA 2004 (pension schemes etc), section 228 (annual allowance) is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-20-2"><num>(2)</num><content><mod>For subsection (1) substitute—<quotedStructure startQuot

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-20-3"><num>(3)</num><content><mod>In subsection (2) for “2014-15” substitute <quotedText>“2023-24”</quotedText>.</mod></content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-21"><num>21</num><heading>Money purchase annual allowance</heading><subsection eId="section-21-1"><num>(1)</num><content>Part 4 of FA 2004 (pension schemes etc) is amended as follows.</content></subsection><subsect

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-21-1"><num>(1)</num><content>Part 4 of FA 2004 (pension schemes etc) is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-21-2"><num>(2)</num><intro><mod>In the following provisions, for “£4,000” substitute <quotedText>“£10,000”</quotedText>—</mod></intro><level class="para1" eId="section-21-2-a"><num>(a)</num><content>section 2

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-21-2-a"><num>(a)</num><content>section 227ZA(1)(b);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-21-2-b"><num>(b)</num><content>section 227B(1)(b) and (2);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-21-2-c"><num>(c)</num><content>in section 227D(4), Steps 4 and 5.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-21-3"><num>(3)</num><content>In consequence of the amendments made by this section, in F(No.2)A 2017, omit section 7.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-21-4"><num>(4)</num><content>The amendments made by this section have effect for the tax year 2023-24 and subsequent tax years.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-22"><num>22</num><heading>Annual allowance: tapering</heading><subsection eId="section-22-1"><num>(1)</num><content>In Part 4 of FA 2004 (pension schemes etc), section 228ZA (tapered reduction of annual allowance) is a

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-22-1"><num>(1)</num><content>In Part 4 of FA 2004 (pension schemes etc), section 228ZA (tapered reduction of annual allowance) is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-22-2"><num>(2)</num><intro>In subsection (1)—</intro><level class="para1" eId="section-22-2-a"><num>(a)</num><content><mod>for “£4,000” substitute <quotedText>“£10,000”</quotedText>;</mod></content></leve

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-22-2-a"><num>(a)</num><content><mod>for “£4,000” substitute <quotedText>“£10,000”</quotedText>;</mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-22-2-b"><num>(b)</num><content><mod>for “£240,000” substitute <quotedText>“£260,000”</quotedText>.</mod></content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-22-3"><num>(3)</num><content><mod>In subsection (3)(a) and (b), for “£240,000” substitute <quotedText>“£260,000”</quotedText>.</mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-22-4"><num>(4)</num><content>The amendments made by this section have effect for the tax year 2023-24 and subsequent tax years.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-23"><num>23</num><heading>Modification of certain existing transitional protections</heading><su

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-23-1"><num>(1)</num><content>In Part 4 of FA 2004 (pension schemes etc), Schedule 36 (transitional provisions) is amended in accordance with subsections <ref href="#section-23-2">(2)</ref> and <ref href="#section-23

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-23-2"><num>(2)</num><content><mod>In paragraph 12 (enhanced protection), in sub-paragraph (2), after “ceases to apply if” insert <quotedText>“the notice under sub-paragraph (1) is given on or after 15 March 2023 and

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-23-3"><num>(3)</num><content><mod>In paragraph 27 (enhanced protection: modifications of p

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-23-4"><num>(4)</num><content><mod>In the Taxation of Pension Schemes (Transitional Provisi

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-23-5"><num>(5)</num><content><mod>In FA 2011, in Schedule 18, in paragraph 14 (fixed protection 2012) in sub-paragraph (4), after “ceases to apply if” insert <quotedText>“the notice under sub-paragraph (1) or (as th

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-23-6"><num>(6)</num><content><mod>In FA 2013, in Schedule 22, in paragraph 1 (fixed protection 2014), in sub-paragraph (3), after “ceases to apply if” insert <quotedText>“the notice under sub-paragraph (1) is given

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-23-7"><num>(7)</num><content><mod>In FA 2016, in Schedule 4, in Part 1 (fixed protection 2016), in paragraph 3, after “There is a protection-cessation event if” insert <quotedText>“the reference number for the purpo

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-23-8"><num>(8)</num><content>The amendments made by this section have effect for the tax year 2023-24 and subsequent tax years.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-24"><num>24</num><heading>Collective money purchase

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-24-1"><num>(1)</num><content>Part 4 of FA 2004 (pension schemes) is amended in accordance with <ref href="#section-24-2">subsections (2)</ref> to <ref href="#section-24-8">(8)</ref>.</content></subs

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-24-2"><num>(2)</num><intro>In section 152 (meaning of arrangement), in subsection (5A)—</p

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-24-2-a"><num>(a)</num><content>the words after “means benefits that are” become paragraph (a);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-24-2-b"><num>(b)</num><content><mod>at the end of that paragraph insert <quotedText>“, or”</quotedText>;</mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-24-2-c"><num>(c)</num><content><mod>after that paragraph insert—<quotedStructure

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-24-3"><num>(3)</num><content><mod>In section 169 (recognised transfers), after subsection

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-24-4"><num>(4)</num><content><mod>In section 279 (other definitions), after subsection (1E

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-24-6"><num>(6)</num><content><mod>In Schedule 28 (registered pension schemes: authorised p

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-24-7"><num>(7)</num><content><mod>In Schedule 29 (authorised lump sums - supplementary), i

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-24-8"><num>(8)</num><content><mod>In Schedule 32 (benefit crystallisation events - supplem

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-24-9"><num>(9)</num><intro>In consequence of the amendments made by the preceding provisions of <ref href="#section-24">this section</ref>, the following provisions of Schedule 5 to FA 2021 are omitted—</intro><

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-24-9-a"><num>(a)</num><content>paragraph 21(2)(b);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-24-9-b"><num>(b)</num><content>paragraph 22(2).</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-24-10"><num>(10)</num><content>The Registered Pension Schemes (Transfer of Sums and Assets) Regulations 2006 (<ref eId="c00003" href="http://www.legislation.gov.uk/id/uksi/2006/499">S.I. 2006/499</ref>) are amended

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-24-11"><num>(11)</num><content><mod>In regulation 3 (scheme pension payable by registered

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-24-12"><num>(12)</num><content><mod>In regulation 5 (term and reduction in rate of scheme pension), in paragraph (1), in the opening words, for “3 or 4” substitute <quotedText>“3(1) or (2) or regulation 4,”</quotedT

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1998/Math/MathML" eId="section-25"><num>25</num><heading>Relief relating to

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-social-security"><heading>Social security</

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-26"><num>26</num><heading>Payments under Jobs Growth Wales Plus</heading><subsection eId="sectio

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-26-1"><num>(1)</num><content><mod>After section 776 of ITTOIA 2005 insert—<quotedStructure

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-26-2"><num>(2)</num><content>The amendment made by this section has effect in relation to payments made on or after 1 April 2022.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-27"><num>27</num><heading>Power to clarify tax treatment of devolved social security benefits</h

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-27-1"><num>(1)</num><content>The Treasury may by regulations amend Chapter 3 of Part 10 of ITEPA 2003 (taxable UK social security benefits) so as to provide that a specified devolved social security benefit is charg

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-27-2"><num>(2)</num><intro>A “<term refersTo="#term-specified-devolved-social-security-benefit" eId="term-specified-devolved-social-security-benefit">specified devolved social security benefit</term>” means a social

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-27-2-a"><num>(a)</num><content>payable under or by virtue of a post-commencement devolved enactment, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-27-2-b"><num>(b)</num><content>specified in regulations under this section.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-27-3"><num>(3)</num><intro>A “<term refersTo="#term-post-commencement-devolved-enactment" eId="term-post-commencement-devolved-enactment">post-commencement devolved enactment</term>” means an enactment which is—

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-27-3-a"><num>(a)</num><intro>contained in, or in an instrument made under—</intro><level class="para2" eId="section-27-3-a-i"><num>(i)</num><content>an Act of the Scottish Parliament;</content></

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-27-3-a-i"><num>(i)</num><content>an Act of the Scottish Parliament;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-27-3-a-ii"><num>(ii)</num><content>an Act of Senedd Cymru;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-27-3-a-iii"><num>(iii)</num><content>Northern Ireland legislation, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-27-3-b"><num>(b)</num><content>passed or made on or after the day on which this Act is passed.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-27-4"><num>(4)</num><intro>Regulations under this section may make—</intro><level class="para1" eId="section-27-4-a"><num>(a)</num><content>different provision for different cases;</content></level><level

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-27-4-a"><num>(a)</num><content>different provision for different cases;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-27-4-b"><num>(b)</num><content>incidental, supplementary or consequential provision (which may include provision amending any provision made by or under the Income Tax Acts).</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-27-5"><num>(5)</num><content><mod>In section 655 of ITEPA 2003 (structure of Part 10), in

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-foster-carers-etc"><heading>Foster carers e

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-28"><num>28</num><heading>Qualifying care relief: increase in individual’s limit</heading><subse

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-28-1"><num>(1)</num><content>Chapter 2 of Part 7 of ITTOIA 2005 (qualifying care relief) is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-28-2"><num>(2)</num><intro>In section 808 (the individual’s limit)—</intro><level class="para1" eId="section-28-2-a"><num>(a)</num><content><mod>in subsection (2), for “£10,000” substitute <quotedText>“£18,14

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-28-2-a"><num>(a)</num><content><mod>in subsection (2), for “£10,000” substitute <quotedText>“£18,140”</quotedText>, and</mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-28-2-b"><num>(b)</num><content>omit subsection (3) (which confers a power to amend that amount).</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-28-3"><num>(3)</num><intro>In section 811 (the amount per adult or child)—</intro><level class="para1" eId="section-28-3-a"><num>(a)</num><content><mod>in subsection (1A) (weekly amount for adult), for “£250”

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-28-3-a"><num>(a)</num><content><mod>in subsection (1A) (weekly amount for adult), for “£250” substitute <quotedText>“£450”</quotedText>,</mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-28-3-b"><num>(b)</num><content><mod>in subsection (2)(a) (weekly amount for children under 11 years old), for “£200” substitute <quotedText>“£375”</quotedText>,</mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-28-3-c"><num>(c)</num><content><mod>in subsection (2)(b) (weekly amount for older children), for “£250” substitute <quotedText>“£450”</quotedText>, and</mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-28-3-d"><num>(d)</num><content>omit subsection (3) (which confers a power to amend those amounts).</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-28-4"><num>(4)</num><content><mod>After section 828 insert—<quotedStructure startQuote="&#

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-28-5"><num>(5)</num><content><mod>In section 873(3) (orders made by Treasury etc not subje

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-28-6"><num>(6)</num><content>The amendments made by this section have effect for the tax year 2023-24 and subsequent tax years.</content></subsection>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-estates-in-administration-and-trusts"><heading>Estates in administration and trusts</heading><section e

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-29"><num>29</num><heading>Estates in administration and trusts</heading><content><ref href="#schedule-2">Schedule 2</ref> contains amendments relating to estates in administration and trusts.</content></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-30"><num>30</num><heading>Transfer of basic life assurance and general annuity business</heading

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-30-1"><num>(1)</num><content><mod>In Part 2 of FA 2012 (insurance companies carrying on lo

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-30-2"><num>(2)</num><content>The amendment made by <ref href="#section-30">this section</ref> is treated as having come into force on 15 December 2022 and applies to the re-insurance of basic life assurance and gene

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-30-3"><num>(3)</num><content>Where, on or after 15 December 2022, a re-insurer adopts IFRS 17 in relation to one or more accounting periods that commence before that date, the amendment made by <ref href="#section-3

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-30-4"><num>(4)</num><content>In <ref href="#section-30-3">subsection (3)</ref> “<term refersTo="#term-ifrs-17" eId="term-ifrs-17">IFRS 17</term>” means International Financial Reporting Standard 17 (insurance contra

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-31"><num>31</num><heading>Certain re-insurance sums not to count as deemed I-E receipts</heading

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-31-1"><num>(1)</num><content>Section 92 of FA 2012 (certain BLAGAB trading receipts to count as deemed I-E receipts) is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-31-2"><num>(2)</num><intro>In subsection (5)—</intro><level class="para1" eId="section

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-31-2-a"><num>(a)</num><content><mod>after paragraph (a) insert—<quotedStructure s

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-31-2-b"><num>(b)</num><content><mod>in paragraph (b), after “sums” insert <quotedText>“, other than sums falling within <ref href="#d25e3097">paragraph (aa)</ref>,”</quotedText>.</mod></content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-31-3"><num>(3)</num><content><mod>In subsection (6), in the words before paragraph (a), after “contract” insert <quotedText>“, other than a sum falling within <ref href="#d25e3097">paragraph (aa)</ref>,”</quotedText

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-31-4"><num>(4)</num><content>The amendments made by this section have effect for accounting periods ending on or after 15 December 2022.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-32"><num>32</num><heading>Insurers in difficulties: write-down orders for corporation tax purpos

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-32-1"><num>(1)</num><content><mod>In Part 3 of CTA 2009 (trading income), after section 13

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-32-2"><num>(2)</num><content>Part 5 of CTA 2009 (loan relationships) is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-32-3"><num>(3)</num><content><mod>After section 323A insert—<quotedStructure startQuote="&

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-32-4"><num>(4)</num><content><mod>In section 465B (“tax-adjusted carrying value”), in subs

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-33"><num>33</num><heading>Insurers in difficulties: write-down orders in case of pension schemes

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-33-1"><num>(1)</num><content>In Part 4 of FA 2004 (pension schemes), Schedule 28 (registered pension schemes: authorised pensions - supplementary) is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-33-2"><num>(2)</num><intro>In paragraph 3 (definition of “lifetime annuity”), in sub-parag

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-33-2-a"><num>(a)</num><content>the words after “by reason of the operation of” become paragraph (a);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-33-2-b"><num>(b)</num><content><mod>at the end of that paragraph insert <quotedText>“, or”</quotedText>;</mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-33-2-c"><num>(c)</num><content><mod>after that paragraph insert—<quotedStructure

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-33-3"><num>(3)</num><intro>In paragraph 17 (definition of “dependants’ annuity”), in sub-p

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-33-3-a"><num>(a)</num><content>the words after “by reason of the operation of” become paragraph (a);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-33-3-b"><num>(b)</num><content><mod>at the end of that paragraph insert <quotedText>“, or”</quotedText>;</mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-33-3-c"><num>(c)</num><content><mod>after that paragraph insert—<quotedStructure

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-miscellaneous-corporation-tax-matters"><heading>Miscellaneous corporation tax matters</heading><section

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-34"><num>34</num><heading>Corporate interest restriction</heading><content><ref href="#schedule-3">Schedule 3</ref> makes provision about corporate interest restriction and the tax treatment of financing costs and inco

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-35"><num>35</num><heading>Investment vehicles</heading><intro><ref href="#schedule-4">Schedule 4</ref> makes amendments to—</intro><level class="para1" eId="section-35-a"><num>(a)</num><content>Schedule 5AAA to

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-35-a"><num>(a)</num><content>Schedule 5AAA to TCGA 1992 (UK property rich collective investment vehicles etc),</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-35-b"><num>(b)</num><content>Part 12 of CTA 2010 (Real Estate Investment Trusts) and the Real Estate Investment Trusts (Assessment and Recovery of Tax) Regulations 2006 (<ref eId="c00004" href="http://www.l

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-35-c"><num>(c)</num><content>Schedule 2 to FA 2022 (qualifying asset holding companies).</content></level>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-international-matters"><heading>Internation

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-36"><num>36</num><heading>Share exchanges involving non-UK incorporated close companies</heading

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-36-1"><num>(1)</num><content>TCGA 1992 is amended in accordance with <ref href="#section-36-2">subsections (2)</ref> and <ref href="#section-36-3">(3)</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-36-2"><num>(2)</num><content><mod>After section 138 (exchange of securities and schemes of

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-36-3"><num>(3)</num><content><mod>In section 288 (interpretation), in the definition of “close company”, at the end insert <quotedText>“(subject to <ref href="#d25e3404">section 138ZA</ref><ref href="#d25e3541">(6)<

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-36-4"><num>(4)</num><content>The amendments made by <ref href="#section-36-2">subsections (2)</ref> and <ref href="#section-36-3">(3)</ref> have effect in relation to an issue of shares or debentures made on or afte

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-36-5"><num>(5)</num><content><mod>In section 830 of ITTOIA 2005 (meaning of “<term refersT

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-36-6"><num>(6)</num><content>The amendment made by <ref href="#section-36-5">subsection (5)</ref> is treated as having come into force on 17 November 2022.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-37"><num>37</num><heading>Records relating to transfer pricing</heading><content><ref href="#schedule-5">Schedule 5</ref> makes provision about the keeping of records for the purposes of Part 4 of TIOPA 2010.</cont

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-38"><num>38</num><heading>Double taxation relief: foreign nominal rates</heading><subsection eId="section-38-1"><num>(1)</num><content>No extended time limit claim may be made on or after 20 July 2022 for a credit calc

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-38-1"><num>(1)</num><content>No extended time limit claim may be made on or after 20 July 2022 for a credit calculated by reference to a foreign nominal rate of tax unless <ref href="#section-38-2">subsection (2)</r

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-38-2"><num>(2)</num><intro><ref href="#section-38-2">This subsection</ref> applies in relation to an extended time limit claim if the adjustment in the amount of tax payable that gives rise to the claim—</intro>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-38-2-a"><num>(a)</num><content>is not calculated by reference to a foreign nominal rate of tax, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-38-2-b"><num>(b)</num><content>occurred on or after 21 July 2016 but before 20 July 2022.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-38-3"><num>(3)</num><intro><ref href="#section-38-3">This subsection</ref> applies in relation to an extended time limit claim if the claim relates to an accounting period that ended before 20 July 2022 (“<term refe

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-38-3-a"><num>(a)</num><content>an appeal under section 31 of TMA 1970 against an assessment to tax in relation to the relevant accounting period has been brought but has not been finally determined or withd

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-38-3-b"><num>(b)</num><content>an enquiry under paragraph 5 of Schedule 1A to TMA 1970 into a claim in relation to the relevant accounting period could be opened or is in progress,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-38-3-c"><num>(c)</num><intro>an appeal against a conclusion stated in respect of such a claim, or an amendment of such a claim, as a result of an enquiry under that paragraph—</intro><level class="para2

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-38-3-c-i"><num>(i)</num><content>could be brought, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-38-3-c-ii"><num>(ii)</num><content>has been brought but has not been finally determined or withdrawn,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-38-3-d"><num>(d)</num><content>an enquiry under Part 4 of Schedule 18 to FA 1998 into the company tax return for the relevant accounting period could be opened or is in progress, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-38-3-e"><num>(e)</num><intro>an appeal against an amendment of that return as a result of an enquiry under that Part—</intro><level class="para2" eId="section-38-3-e-i"><num>(i)</num><content>could b

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-38-3-e-i"><num>(i)</num><content>could be brought, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-38-3-e-ii"><num>(ii)</num><content>has been brought but has not been finally determined or withdrawn.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-38-4"><num>(4)</num><intro>An “extended time limit claim” is a claim under—</intro><level class="para1" eId="section-38-4-a"><num>(a)</num><content>section 79 of TIOPA 2010 (extended time limits for certain c

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-38-4-a"><num>(a)</num><content>section 79 of TIOPA 2010 (extended time limits for certain claims), or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-38-4-b"><num>(b)</num><content>section 806(2) of ICTA (extended time limits for certain claims in relation to accounting periods to which section 79 of TIOPA 2010 does not apply).</content></level>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-chargeable-gains"><heading>Chargeable gains

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39"><num>39</num><heading>Payments to farmers under the lump sum exit scheme etc</heading><subsection eId="section-39-1"><num>(1)</num><intro>An amount paid to a person (“<term refersTo="#term-p" eId="term-p">P</term>”

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-1"><num>(1)</num><intro>An amount paid to a person (“<term refersTo="#term-p" eId="term-p">P</term>”) under the lump sum exit scheme is—</intro><level class="para1" eId="section-39-1-a"><num>(a)</num><content

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-39-1-a"><num>(a)</num><content>in a case where P satisfied the eligibility conditions when the payment was made, to be treated as an amount of capital nature that is treated as a chargeable gain accruing to

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-39-1-b"><num>(b)</num><content>in a case where P did not satisfy the eligibility conditions when the payment was made, to be treated as an amount of a revenue nature.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-2"><num>(2)</num><intro>Where—</intro><level class="para1" eId="section-39-2-a"><num>(a)</num><content>a person (“<term refersTo="#term-p" eId="term-p">P</term>”) makes an application for a lump sum under

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-39-2-a"><num>(a)</num><content>a person (“<term refersTo="#term-p" eId="term-p">P</term>”) makes an application for a lump sum under the lump sum exit scheme,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-39-2-b"><num>(b)</num><content>P satisfies the eligibility conditions at any time during the interim period, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-39-2-c"><num>(c)</num><content>during the interim period, an amount is paid to P under the basic payment scheme,</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-3"><num>(3)</num><intro>Where—</intro><level class="para1" eId="section-39-3-a"><num>(a)</num><content>a person (“<term refersTo="#term-p" eId="term-p">P</term>”) makes an application for a lump sum under

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-39-3-a"><num>(a)</num><content>a person (“<term refersTo="#term-p" eId="term-p">P</term>”) makes an application for a lump sum under the lump sum exit scheme,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-39-3-b"><num>(b)</num><content>P does not satisfy the eligibility conditions at any time during the interim period, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-39-3-c"><num>(c)</num><content>during the interim period, an amount is paid to P under the basic payment scheme,</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-4"><num>(4)</num><intro>For the purposes of this section—</intro><hcontainer name="definition"><content>the “<term refersTo="#term-lump-sum-exit-scheme" eId="term-lump-sum-exit-scheme">lump sum exit scheme

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>the “<term refersTo="#term-basic-payment-scheme" eId="term-basic-payment-scheme">basic payment scheme</term>” means <ref eId="c00006" href="http://www.legislation.gov.uk/european/regulation/2013/1307">

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><intro>the “<term refersTo="#term-interim-period" eId="term-interim-period">interim period</term>”, in relation to P, means the period—</intro><level class="para1"><num>(a)</num><content>beginning with t

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1"><num>(a)</num><content>beginning with the day on which the lump sum exit scheme came into force (see regulation 1(1) of that scheme), and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1"><num>(b)</num><content>ending with the scheme end date;</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-5"><num>(5)</num><content>This section has effect in relation to amounts whether paid before or after the coming into force of this Act.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-40"><num>40</num><heading>Contracts completed after ordinary notification period</heading><subse

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-40-1"><num>(1)</num><content><mod>In TCGA 1992, after section 28 (time of disposal and acq

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-40-2"><num>(2)</num><intro>The amendment made by <ref href="#section-40-1">subsection (1)</ref> has effect—</intro><level class="para1" eId="section-40-2-a"><num>(a)</num><content>for the purposes of corporat

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-40-2-a"><num>(a)</num><content>for the purposes of corporation tax, in relation to any disposal and acquisition of an asset under a contract that is entered into on or after 1 April 2023, and</content><

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-40-2-b"><num>(b)</num><content>for all other purposes, in relation to any disposal and acquisition of an asset under a contract that is entered into on or after 6 April 2023.</content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-41"><num>41</num><heading>Separated spouses and civil partners</heading><subsection eId="section

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-41-1"><num>(1)</num><content>TCGA 1992 is amended in accordance with <ref href="#section-41-2">subsections (2)</ref> to <ref href="#section-41-5">(5)</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-41-2"><num>(2)</num><content><mod>In Part 3 (individuals, partnerships, trusts and collect

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-41-3"><num>(3)</num><intro>In section 225B (disposals in connection with divorce etc)—</intro><level class="para1" eId="section-41-3-a"><num>(a)</num><content><mod>in subsection (1)(b), after “to” insert <quo

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-41-3-a"><num>(a)</num><content><mod>in subsection (1)(b), after “to” insert <quotedText>“someone other than”</quotedText>;</mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-41-3-b"><num>(b)</num><content><mod>in subsection (3), after “disposal to” insert <quotedText>“someone other than”</quotedText>.</mod></content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-41-4"><num>(4)</num><content><mod>After section 225B insert—<quotedStructure startQuote="&

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-41-5"><num>(5)</num><content><mod>In Part 8 (supplemental), in section 288 (interpretation), in subsection (3), after “partner” insert <quotedText>“(however expressed)”</quotedText>.</mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-41-6"><num>(6)</num><content>The amendments made by <ref href="#section-41">this section</ref> apply in relation to disposals made on or after 6 April 2023.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-42"><num>42</num><heading>Carried interest: election to pay tax as scheme profits arise</heading

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-42-1"><num>(1)</num><content>TCGA 1992 is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-42-2"><num>(2)</num><content><mod>After section 103KF insert—<quotedStructure startQuote="

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-42-3"><num>(3)</num><intro>In section 1H (the main rates of CGT), in subsection (9)—</

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-42-3-a"><num>(a)</num><content>omit the “or” at the end of paragraph (a), and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" class="para1" eId="section-42-3-b"><num>(b)</num><content><mod>after that paragraph insert—<quotedStructure

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-42-4"><num>(4)</num><content>The amendments made by this section have effect for the tax year 2022-23 and subsequent tax years.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-43"><num>43</num><heading>Relief on disposal of joint interests in land</heading><subsection eId

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-43-1"><num>(1)</num><content><mod>In section 248A of TCGA 1992 (roll-over relief on dispos

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-43-2"><num>(2)</num><content><mod>In section 248E of TCGA 1992 (relief on disposal of join

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-43-3"><num>(3)</num><content>The amendments made by <ref href="#section-43">this section</ref> have effect in relation to disposals made on or after 6 April 2023.</content></subsection>

<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:default="http://www.w3.org/1998/Math/MathML" xmlns:default1="http://www.w3.org/1999/xhtml" eId="part-2"><n

<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="part-2-chapter-1"><num>Chapter 1</num><heading>Charge to alcohol duty</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-chapter-1-crossheading-

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-2-chapter-1-crossheading-alcoholic-products"><heading>Alcoholic products</heading><section eId="section-44"><num>44</n

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-44"><num>44</num><heading>Meaning of “alcoholic product”</heading><subsection eId="section-44-1"><num>(1)</num><intro>In <ref href="#part-2">this Part</ref>, “<term refersTo="#term-alcoholic-product" eId="term-alcoholi

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-44-1"><num>(1)</num><intro>In <ref href="#part-2">this Part</ref>, “<term refersTo="#term-alcoholic-product" eId="term-alcoholic-product">alcoholic product</term>” means any of the following—</intro><level class

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-44-1-a"><num>(a)</num><content>spirits,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-44-1-c"><num>(c)</num><content>cider,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-44-1-e"><num>(e)</num><content>any other fermented product.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-44-2"><num>(2)</num><content>But a product listed in <ref href="#section-44-1">subsection (1)</ref> is not an alcoholic product if it is of an alcoholic strength of 1.2% or less.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-44-3"><num>(3)</num><content><ref href="#schedule-6">Schedule 6</ref> defines each category of alcoholic product (and makes further provision in connection with the definitions).</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-45"><num>45</num><heading>Alcoholic strength</heading><subsection eId="section-45-1"><num>(1)</num><intro>The “alcoholic strength” of an alcoholic product is the ratio, expressed as a percentage, of—</intro><level

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-45-1"><num>(1)</num><intro>The “alcoholic strength” of an alcoholic product is the ratio, expressed as a percentage, of—</intro><level class="para1" eId="section-45-1-a"><num>(a)</num><content>the volume of t

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-45-1-a"><num>(a)</num><content>the volume of the alcohol contained in the product, to</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-45-1-b"><num>(b)</num><content>the volume of the product (inclusive of the alcohol contained in it).</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-45-2"><num>(2)</num><content>The alcoholic strength of any alcoholic product is to be determined by reference to the product as at 20°C.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-45-3"><num>(3)</num><content>The Commissioners may by regulations make provision about the means of ascertaining the alcoholic strength, weight or volume of any alcoholic product or other substance (including produc

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-45-4"><num>(4)</num><content>Regulations under <ref href="#section-45-3">subsection (3)</ref> may, in particular, include provision for ascertaining the alcoholic strength, weight or volume of anything contained in

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-45-5"><num>(5)</num><content>In <ref href="#part-2">this Part</ref>, “<term refersTo="#term-alcohol" eId="term-alcohol">alcohol</term>” means ethanol.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-46"><num>46</num><heading>Categories of alcoholic products: regulations</heading><intro>The Treasury may by regulations—</intro><level class="para1" eId="section-46-a"><num>(a)</num><content>amend <ref href="#sc

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-46-a"><num>(a)</num><content>amend <ref href="#schedule-6">Schedule 6</ref>;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-46-b"><num>(b)</num><content>provide that a beverage of an alcoholic strength exceeding 1.2%, of a description specified by or under the regulations, is to be treated as being an alcoholic product of a part

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-2-chapter-1-crossheading-charge-and-rates"><heading>Charge and rates</heading><section eId="section-47"><num>47</num><

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-47"><num>47</num><heading>Alcohol duty: charge</heading><subsection eId="section-47-1"><num>(1)</num><content>An excise duty (“alcohol duty”) is charged on alcoholic products that are produced in, or imported into, the

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-47-1"><num>(1)</num><content>An excise duty (“alcohol duty”) is charged on alcoholic products that are produced in, or imported into, the United Kingdom.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-47-2"><num>(2)</num><content>But <ref href="#section-47-1">subsection (1)</ref> is subject to the exemptions in <ref href="#part-2-chapter-4">Chapters 4</ref> and <ref href="#part-2-chapter-6">6</ref>.</content>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-48"><num>48</num><heading>Rates</heading><subsection eId="section-48-1"><num>(1)</num><content>Alcohol duty is charged at the rates shown in <ref href="#schedule-7">Schedule 7</ref>.</content></subsection><subsecti

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-48-1"><num>(1)</num><content>Alcohol duty is charged at the rates shown in <ref href="#schedule-7">Schedule 7</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-48-2"><num>(2)</num><intro>But <ref href="#section-48-1">subsection (1)</ref> is subject to—</intro><level class="para1" eId="section-48-2-a"><num>(a)</num><content><ref href="#section-50">section 50</ref> (d

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-48-2-a"><num>(a)</num><content><ref href="#section-50">section 50</ref> (draught relief), and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-48-2-b"><num>(b)</num><content><ref href="#section-54">section 54</ref> (small producer relief).</content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-49"><num>49</num><heading>Excise duty point and payment</heading><subsection eId="section-49-1"><num>(1)</num><intro>Alcohol duty is to be paid, and the amount chargeable is to be determined and become due, in accordan

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-49-1"><num>(1)</num><intro>Alcohol duty is to be paid, and the amount chargeable is to be determined and become due, in accordance with provision made by or under—</intro><level class="para1" eId="section-49-1-a

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-49-1-a"><num>(a)</num><content><ref href="#section-88">section 88</ref>;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-49-1-b"><num>(b)</num><content>section 1 of F(No. 2)A 1992.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-49-2"><num>(2)</num><content>In <ref href="#part-2">this Part</ref>, “<term refersTo="#term-excise-duty-point" eId="term-excise-duty-point">excise duty point</term>” has the meaning given by section 1 of F(No. 2)A 1

<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="part-2-chapter-2"><num>Chapter 2</num><heading>Draught relief</heading><section eId="section-50"><num>50</num><heading>Qualifying draught products: reduced rates</heading><subsection eId="section-50-1"><num>(1)</num><content>A

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-50"><num>50</num><heading>Qualifying draught products: reduced rates</heading><subsection eId="section-50-1"><num>(1)</num><content>Alcohol duty is charged on qualifying draught products at the reduced rates shown in <

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-50-1"><num>(1)</num><content>Alcohol duty is charged on qualifying draught products at the reduced rates shown in <ref href="#schedule-8">Schedule 8</ref> (instead of at the rates shown in <ref href="#schedule-7">Sc

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-50-2"><num>(2)</num><content>But a person liable to pay alcohol duty on qualifying draught products may, for the purposes of <ref href="#section-52">section 52</ref><ref href="#section-52-2">(2)</ref>, elect for dut

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51"><num>51</num><heading>Alcoholic products qualifying for draught relief</heading><subsection eId="section-51-1"><num>(1)</num><intro>“<term refersTo="#term-qualifying-draught-products" eId="term-qualifying-draught-p

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-1"><num>(1)</num><intro>“<term refersTo="#term-qualifying-draught-products" eId="term-qualifying-draught-products">Qualifying draught products</term>” means alcoholic products that—</intro><level class="para1

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-51-1-a"><num>(a)</num><content>are of an alcoholic strength of less than 8.5%, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-51-1-b"><num>(b)</num><content>at the excise duty point are contained in, or are being transported to a place in the United Kingdom for the purpose of being transferred to, a large draught container.</c

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-2"><num>(2)</num><content>But alcoholic products that are produced in the United Kingdom by a person otherwise than in accordance with an approval under <ref href="#section-82">section 82</ref> are not qualifying

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-3"><num>(3)</num><intro>A “<term refersTo="#term-large-draught-container" eId="term-large-draught-container">large draught container</term>” means a container which—</intro><level class="para1" eId="section-5

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-51-3-a"><num>(a)</num><content>is of a capacity of at least 20 litres, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-51-3-b"><num>(b)</num><content>incorporates, or is designed to connect to, a qualifying system for dispensing individual drinks.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-4"><num>(4)</num><intro>For the purposes of <ref href="#section-51-3">subsection (3)</ref><ref href="#section-51-3-b">(b)</ref>, “<term refersTo="#term-qualifying-system" eId="term-qualifying-system">qualifying s

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-51-4-a"><num>(a)</num><content>a pressurised gas delivery system, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-51-4-b"><num>(b)</num><content>a pump delivery system.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-5"><num>(5)</num><intro>The Commissioners may by regulations—</intro><level class="para1" eId="section-51-5-a"><num>(a)</num><content>amend <ref href="#section-51-3">subsection (3)</ref><ref href="#section

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-51-5-a"><num>(a)</num><content>amend <ref href="#section-51-3">subsection (3)</ref><ref href="#section-51-3-a">(a)</ref> so as to specify a different capacity;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-51-5-b"><num>(b)</num><content>amend <ref href="#section-51-4">subsection (4)</ref> so as to add or remove, or to vary the description of, a qualifying system.</content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-52"><num>52</num><heading>Repackaging qualifying draught products</heading><subsection eId="section-52-1"><num>(1)</num><intro>For the purposes of <ref href="#section-52">this section</ref>, qualifying draught products

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-52-1"><num>(1)</num><intro>For the purposes of <ref href="#section-52">this section</ref>, qualifying draught products are “repackaged” if—</intro><level class="para1" eId="section-52-1-a"><num>(a)</num><content

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-52-1-a"><num>(a)</num><content>they are transferred to containers that are not large draught containers, but</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-52-1-b"><num>(b)</num><content>are not transferred in the course of serving a beverage for immediate consumption.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-52-2"><num>(2)</num><intro>A person may not repackage qualifying draught products on any premises in the United Kingdom unless—</intro><level class="para1" eId="section-52-2-a"><num>(a)</num><content>the repa

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-52-2-a"><num>(a)</num><content>the repackaging is authorised, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-52-2-b"><num>(b)</num><content>alcohol duty was charged on the products at the full rates, in accordance with an election under <ref href="#section-50">section 50</ref><ref href="#section-50-2">(2)</ref>.</

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-52-3"><num>(3)</num><intro>Repackaging is “authorised” if it is carried out by a person who is—</intro><level class="para1" eId="section-52-3-a"><num>(a)</num><content>approved and registered under section 10

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-52-3-a"><num>(a)</num><content>approved and registered under section 100G of CEMA 1979 by virtue of regulation 3 of the Warehousekeepers and Owners of Warehoused Goods Regulations 1999 (<ref eId="c00009" hr

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-52-3-b"><num>(b)</num><content>approved under <ref href="#section-82">section 82</ref> (producers of alcoholic products).</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-52-4"><num>(4)</num><content>Where the repackaging of qualifying draught products is authorised, an amount equal to the duty shortfall is treated, for the purposes of <ref href="#part-2">this Part</ref>, as an amoun

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-52-5"><num>(5)</num><intro>In <ref href="#section-52">this section</ref> and in <ref href="#section-53">section 53</ref>, the “<term refersTo="#term-duty-shortfall" eId="term-duty-shortfall">duty shortfall</term>” i

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-52-5-a"><num>(a)</num><content>the alcohol duty payable on the alcoholic products under <ref href="#section-50">section 50</ref><ref href="#section-50-1">(1)</ref> (draught products: reduced rates), and

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-52-5-b"><num>(b)</num><content>the alcohol duty that would have been payable on the alcoholic products under <ref href="#section-48">section 48</ref> (rates) if they had not, at the excise duty point, been

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-52-6"><num>(6)</num><content>For the purposes of subsection (2), the Commissioners may by regulations require a person to provide, on the supply to another person of qualifying draught products in respect of which a

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-53"><num>53</num><heading>Repackaging in contravention of <ref href="#section-52">section 52</ref><ref href="#section-52-2">(2)</ref></heading><subsection eId="section-53-1"><num>(1)</num><content><ref href="#section-5

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-53-1"><num>(1)</num><content><ref href="#section-53">This section</ref> applies if a person repackages qualifying draught products in contravention of <ref href="#section-52">section 52</ref><ref href="#section-52-2

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-53-2"><num>(2)</num><intro>The Commissioners may—</intro><level class="para1" eId="section-53-2-a"><num>(a)</num><content>assess as alcohol duty due from the person mentioned in <ref href="#section-53-1">subs

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-53-2-a"><num>(a)</num><content>assess as alcohol duty due from the person mentioned in <ref href="#section-53-1">subsection (1)</ref> an amount equal to the duty shortfall, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-53-2-b"><num>(b)</num><content>notify that person or that person’s representative of any assessment under <ref href="#section-53-2-a">paragraph (a)</ref>.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-53-3"><num>(3)</num><content>The conduct mentioned in <ref href="#section-53-1">subsection (1)</ref> attracts a penalty under section 9 of FA 1994, calculated by reference to the amount of duty referred to in <ref h

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-53-4"><num>(4)</num><content>Any alcoholic products, articles (including packaging or equipment) or substances in the person's possession, used (or which may be used) for or in connection with the repackaging, are l

<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1998/Math/MathML" xmlns:default1="http://www.w3.org/1999/xhtml" eId="part-2-chapter-3"><num>Chapter 3</num><heading>Small producer relie

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1998/Math/MathML" name="crossheading" ukl:Name="Pblock" eId="part-2-chapter-3-crossheading-main-provisions"><heading>Main provisions<

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54"><num>54</num><heading>Small producer relief: discounted rates</heading><subsection eId="section-54-1"><num>(1)</num><content>Alcohol duty is charged at the discounted rate on small producer alcoholic products produ

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54-1"><num>(1)</num><content>Alcohol duty is charged at the discounted rate on small producer alcoholic products produced in a particular production year (the “current year”).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54-2"><num>(2)</num><intro>The discounted rate, in relation to small producer alcoholic products, is equal to—</intro><level class="para1" eId="section-54-2-a"><num>(a)</num><content>the standard rate, less</

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-2-a"><num>(a)</num><content>the standard rate, less</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-2-b"><num>(b)</num><content>the duty discount for those products (determined in accordance with <ref href="#section-59">section 59</ref> and <ref href="#schedule-9">Schedule 9</ref>).</content></leve

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54-3"><num>(3)</num><intro>In <ref href="#section-54-2">subsection (2)</ref><ref href="#section-54-2-a">(a)</ref>, the “<term refersTo="#term-standard-rate" eId="term-standard-rate">standard rate</term>”, in relatio

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-3-a"><num>(a)</num><content>the rate shown for products of that kind in <ref href="#schedule-7">Schedule 7</ref>, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-3-b"><num>(b)</num><content>if <ref href="#schedule-8">Schedule 8</ref> applies (and no election has been made under <ref href="#section-50">section 50</ref><ref href="#section-50-2">(2)</ref>) in relati

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54-4"><num>(4)</num><intro>For the purposes of this Chapter—</intro><level class="para1" eId="section-54-4-a"><num>(a)</num><content>a “production year” is a period of 12 months beginning with 1 February;

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-4-a"><num>(a)</num><content>a “production year” is a period of 12 months beginning with 1 February;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-54-4-b"><num>(b)</num><content>the “<term refersTo="#term-previous-year" eId="term-previous-year">previous year</term>”, in relation to alcoholic products, is the production year immediately preceding the c

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-55"><num>55</num><heading>Small producer alcoholic products</heading><subsection eId="section-55-1"><num>(1)</num><intro>“Small producer alcoholic products” are alcoholic products that—</intro><level class="para1"

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-55-1"><num>(1)</num><intro>“Small producer alcoholic products” are alcoholic products that—</intro><level class="para1" eId="section-55-1-a"><num>(a)</num><content>are of an alcoholic strength of less than 8.

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-55-1-a"><num>(a)</num><content>are of an alcoholic strength of less than 8.5%,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-55-1-b"><num>(b)</num><content>are produced on premises that are small production premises,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-55-1-c"><num>(c)</num><content>are not produced under licence, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-55-1-d"><num>(d)</num><content>meet such other conditions (if any) as are specified by regulations made by the Commissioners.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-55-2"><num>(2)</num><content><ref href="#section-55-1">Subsection (1)</ref> is subject to <ref href="#section-58">section 58</ref> (exclusions).</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-56"><num>56</num><heading>Small production premises</heading><subsection eId="section-56-1"><num>(1)</num><intro>Production premises are “small production premises” in the current year in relation to alcoholic products

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-56-1"><num>(1)</num><intro>Production premises are “small production premises” in the current year in relation to alcoholic products if—</intro><level class="para1" eId="section-56-1-a"><num>(a)</num><content><p

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-56-1-a"><num>(a)</num><content>the production limit condition is met, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-56-1-b"><num>(b)</num><content>the unlicensed product condition is met.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-56-2"><num>(2)</num><intro>The “production limit condition” is met in relation to non-group premises if, in relation to those premises, neither of the following amounts exceeds the small production limit—</intro

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-56-2-a"><num>(a)</num><content>the alcohol production amount for the previous year;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-56-2-b"><num>(b)</num><content>the estimated alcohol production amount for the current year,</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-56-3"><num>(3)</num><intro>The “production limit condition” is met in relation to group premises if neither of the following amounts exceeds the small production limit—</intro><level class="para1" eId="section-5

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-56-3-a"><num>(a)</num><content>the aggregate of the alcohol production amount, in relation to every set of premises in the production group, for the previous year;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-56-3-b"><num>(b)</num><content>the aggregate of the estimated alcohol production amount, in relation to every set of premises in the production group, for the current year.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-56-4"><num>(4)</num><content>The “small production limit” is 4500 hectolitres.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-56-5"><num>(5)</num><intro>The “unlicensed product condition” is met—</intro><level class="para1" eId="section-56-5-a"><num>(a)</num><content>in relation to non-group premises if the condition in <ref href="#

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-56-5-a"><num>(a)</num><content>in relation to non-group premises if the condition in <ref href="#section-56-6">subsection (6)</ref> is met in relation to those premises;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-56-5-b"><num>(b)</num><content>in relation to group premises if the condition in <ref href="#section-56-6">subsection (6)</ref> is met in relation to every set of premises in the production group.</cont

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-56-6"><num>(6)</num><intro>The condition is that—</intro><level class="para1" eId="section-56-6-a"><num>(a)</num><content>less than half of the alcohol production amount (if any), in relation to the premises,

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-56-6-a"><num>(a)</num><content>less than half of the alcohol production amount (if any), in relation to the premises, for the previous year was contained in alcoholic products produced under licence, and</p

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-56-6-b"><num>(b)</num><content>the producer reasonably estimates that less than half of the alcohol production amount, in relation to the premises, for the current year will be contained in alcoholic produc

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-57"><num>57</num><heading>“Alcohol production amount” etc</heading><subsection eId="section-57-1"><num>(1)</num><intro>In relation to production premises—</intro><level class="para1" eId="section-57-1-a"><num>(a)</

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-57-1"><num>(1)</num><intro>In relation to production premises—</intro><level class="para1" eId="section-57-1-a"><num>(a)</num><content>the “alcohol production amount” for a production year is the total amount

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-57-1-a"><num>(a)</num><content>the “alcohol production amount” for a production year is the total amount of alcohol contained in alcoholic products produced on those premises in that year, and</content>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-57-1-b"><num>(b)</num><content>the “estimated alcohol production amount” for a production year is the producer’s reasonable estimate of the alcohol production amount for those premises in that year.</co

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-57-2"><num>(2)</num><content><ref href="#section-57-1">Subsection (1)</ref> is subject to <ref href="#section-57-3">subsections (3)</ref> to <ref href="#section-57-6">(6)</ref>.</content></subsectio

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-57-3"><num>(3)</num><intro>The reference in <ref href="#section-57-1">subsection (1)</ref> to the alcoholic products produced on a set of premises does not include a reference to any alcoholic products that are—

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-57-3-a"><num>(a)</num><content>spoilt or destroyed before the excise duty point, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-57-3-b"><num>(b)</num><content>produced in the course of producing a different alcoholic product on those premises or on any set of connected premises.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-57-4"><num>(4)</num><content><ref href="#section-57-5">Subsection (5)</ref> applies where premises are in use for the purposes of the production of alcoholic products for part only (the “relevant part”) of a product

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-57-5"><num>(5)</num><intro>The alcohol production amount or (as the case may be) the estimated alcohol production amount is treated, for the purposes of <ref href="#part-2">this Part</ref>, as being the amount given

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-57-5-a"><num>(a)</num><content>dividing the actual alcohol production amount, or (as the case may be) the estimate of that amount, by the number of days in the relevant part of the production year, and<

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-57-5-b"><num>(b)</num><content>multiplying the amount given by <ref href="#section-57-5-a">paragraph (a)</ref> by the number of days in the production year.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-57-6"><num>(6)</num><intro>The Commissioners may, if satisfied that the circumstances are exceptional, agree with a producer that certain alcoholic products, or a certain quantity of alcoholic products, may be disre

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-57-6-a"><num>(a)</num><content>the alcohol production amount, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-57-6-b"><num>(b)</num><content>the estimated alcohol production amount,</content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-58"><num>58</num><heading>Exclusions</heading><intro>Alcoholic products produced on any premises are not “small producer alcoholic products” if—</intro><level class="para1" eId="section-58-a"><num>(a)</num><content

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-58-a"><num>(a)</num><content>they are exempt from duty under any of <ref href="#section-72">sections 72</ref>, <ref href="#section-76">76</ref> or <ref href="#section-77">77</ref>,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-58-b"><num>(b)</num><content>they are produced in the United Kingdom by a person otherwise than in accordance with an approval under <ref href="#section-82">section 82</ref>,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-58-c"><num>(c)</num><content>at the time they are produced, the alcohol production amount attributable to the premises (in the case of non-group premises) or the production group (in the case of group premi

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-58-d"><num>(d)</num><intro>they are produced—</intro><level class="para2" eId="section-58-d-i"><num>(i)</num><content>in the case of non-group premises, before the producer has estimated (for the pur

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-58-d-i"><num>(i)</num><content>in the case of non-group premises, before the producer has estimated (for the purposes of <ref href="#section-57">section 57</ref>) the alcohol production amount attributable

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-58-d-ii"><num>(ii)</num><content>in the case of group premises, before the producer in relation to those premises or any connected premises has estimated (for the purposes of <ref href="#section-57">section

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:default="http://www.w3.org/1998/Math/MathML" eId="section-59"><num>59</num><heading>Duty discount for small producer alcoholic products</heading><subsection eId="section-59-1"><num>(1)</num><content>The duty discount, in rela

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59-1"><num>(1)</num><content>The duty discount, in relation to small producer alcoholic products in a discount band, is the amount (in £ per litre of alcohol) given by the formula in subsection (2) and rounded up to

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:default="http://www.w3.org/1998/Math/MathML" eId="section-59-2"><num>(2)</num><content>The formula is—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" overflow="scroll" alttext=

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59-3"><num>(3)</num><intro>Where the alcoholic products are produced on non-group premises, the “relevant production amount” is—</intro><level class="para1" eId="section-59-3-a"><num>(a)</num><content>the alc

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-59-3-a"><num>(a)</num><content>the alcohol production amount, in relation to those premises, for the previous year, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-59-3-b"><num>(b)</num><content>if that amount would be nil, the estimated alcohol production amount in relation to those premises for the current year.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59-4"><num>(4)</num><intro>Where the alcoholic products are produced on group premises, the “relevant production amount” is —</intro><level class="para1" eId="section-59-4-a"><num>(a)</num><content>the aggreg

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-59-4-a"><num>(a)</num><content>the aggregate of the alcohol production amount for the previous year, in relation to every set of premises in the production group on which alcoholic products were produced in

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-59-4-b"><num>(b)</num><content>if there are no premises in the production group on which alcoholic products were produced in the previous year, the aggregate of the estimated alcoholic production amount, in

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59-5"><num>(5)</num><intro>Small producer alcoholic products are in a particular discount band if the relevant production amount in relation to those products—</intro><level class="para1" eId="section-59-5-a"><n

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-59-5-a"><num>(a)</num><content>exceeds the start threshold for that band, but</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-59-5-b"><num>(b)</num><content>does not exceed the end threshold for that band.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59-6"><num>(6)</num><intro>The start and end thresholds, cumulative discount and marginal discount for a discount band are the figures shown—</intro><level class="para1" eId="section-59-6-a"><num>(a)</num><conte

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-59-6-a"><num>(a)</num><content>in relation to alcoholic products (other than qualifying draught products referred to in paragraph (b)) of a particular description, in the tables in Part 1 of <ref href="#sch

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-59-6-b"><num>(b)</num><content>in relation to qualifying draught products (in respect of which no election has been made under section 50(2)) of a particular description, in the tables in Part 2 of <ref hre

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-60"><num>60</num><heading>Assessments where incorrectly low rate of alcohol duty applied</heading><subsection eId="section-60-1"><num>(1)</num><intro><ref href="#section-60">This section</ref> applies if—</intro><l

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-60-1"><num>(1)</num><intro><ref href="#section-60">This section</ref> applies if—</intro><level class="para1" eId="section-60-1-a"><num>(a)</num><content>alcohol duty is charged on alcoholic products,</co

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-60-1-a"><num>(a)</num><content>alcohol duty is charged on alcoholic products,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-60-1-b"><num>(b)</num><content>it appears at the excise duty point that the alcoholic products are small producer alcoholic products, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-60-1-c"><num>(c)</num><content>it turns out that the alcoholic products were not small producer alcoholic products (including where circumstances were not as they appeared at the excise duty point or where

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-60-2"><num>(2)</num><intro><ref href="#section-60">This section</ref> also applies if—</intro><level class="para1" eId="section-60-2-a"><num>(a)</num><content>alcohol duty is charged on small producer alcohol

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-60-2-a"><num>(a)</num><content>alcohol duty is charged on small producer alcoholic products, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-60-2-b"><num>(b)</num><content>the discounted rate that at the excise duty point appeared to be the correct rate turns out to be lower than the correct rate (including where circumstances were not as they a

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-60-3"><num>(3)</num><intro>The Commissioners—</intro><level class="para1" eId="section-60-3-a"><num>(a)</num><content>may assess as being alcohol duty due from the liable person an amount equal to the duty sh

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-60-3-a"><num>(a)</num><content>may assess as being alcohol duty due from the liable person an amount equal to the duty shortfall, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-60-3-b"><num>(b)</num><content>must notify that person or that person’s representative of any assessment under <ref href="#section-60-3-a">paragraph (a)</ref>.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-60-4"><num>(4)</num><intro>In <ref href="#section-60">this section</ref> “<term refersTo="#term-duty-shortfall" eId="term-duty-shortfall">duty shortfall</term>” means the difference between—</intro><level class=

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-60-4-a"><num>(a)</num><content>the actual amount of alcohol duty chargeable on the alcoholic products, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-60-4-b"><num>(b)</num><content>the lower amount that, at the excise duty point, appeared to be the amount chargeable.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-60-5"><num>(5)</num><content>The reference in <ref href="#section-60-3">subsection (3)</ref> to the “<term refersTo="#term-liable-person" eId="term-liable-person">liable person</term>” is a reference to the person l

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-2-chapter-3-crossheading-mergers-and-demergers"><heading>Mergers and demergers</heading><section eId="section-61"><num

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-61"><num>61</num><heading>Mergers: general provisions</heading><subsection eId="section-61-1"><num>(1)</num><content><mod><ref href="#section-61">This section</ref> and <ref href="#section-62">sections 62</ref> t

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-61-1"><num>(1)</num><content><mod><ref href="#section-61">This section</ref> and <ref href="#section-62">sections 62</ref> to <ref href="#section-67">67</ref> apply where a small producer (“SP1”) become

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-61-2"><num>(2)</num><intro>“<term refersTo="#term-post-merger-production-group" eId="term-post-merger-production-group">Post-merger production group</term>” means the production group that consists of—</intro><l

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-61-2-a"><num>(a)</num><content>every set of premises on which SP1 or SP2 produces alcoholic products, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-61-2-b"><num>(b)</num><content>every set of connected premises,</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-61-3"><num>(3)</num><intro>In relation to the post-merger production group—</intro><level class="para1" eId="section-61-3-a"><num>(a)</num><content>“<term refersTo="#term-year-1" eId="term-year-1">Year 1</ter

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-61-3-a"><num>(a)</num><content>“<term refersTo="#term-year-1" eId="term-year-1">Year 1</term>” means the production year in which SP1 and SP2 become connected with one another,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-61-3-b"><num>(b)</num><content>“<term refersTo="#term-year-2" eId="term-year-2">Year 2</term>” means the production year immediately following Year 1,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-61-3-c"><num>(c)</num><content>“<term refersTo="#term-year-3" eId="term-year-3">Year 3</term>” means the production year immediately following Year 2, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-61-3-d"><num>(d)</num><content>the “<term refersTo="#term-pre-merger-year" eId="term-pre-merger-year">pre-merger year</term>” means the production year immediately preceding Year 1.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-61-4"><num>(4)</num><intro>Each of Year 1, Year 2 and Year 3 is a “<term refersTo="#term-merger-transition-year" eId="term-merger-transition-year">merger transition year</term>” in relation to the post-merger produc

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-61-4-a"><num>(a)</num><content><ref href="#section-65">section 65</ref> (early termination of merger transition period),</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-61-4-b"><num>(b)</num><content><ref href="#section-66">section 66</ref> (subsequent mergers), or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-61-4-c"><num>(c)</num><content><ref href="#section-68">section 68</ref><ref href="#section-68-8">(8)</ref> (demergers in a merger transition year).</content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-62"><num>62</num><heading>Modified “small production premises” test</heading><subsection eId="section-62-1"><num>(1)</num><content><ref href="#section-62">This section</ref> (instead of <ref href="#section-56">section

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-62-1"><num>(1)</num><content><ref href="#section-62">This section</ref> (instead of <ref href="#section-56">section 56</ref>) applies in relation to a post-merger production group in a merger transition year.</c

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-62-2"><num>(2)</num><intro>Post-merger production group premises are “small production premises” in the current year in relation to alcoholic products if—</intro><level class="para1" eId="section-62-2-a"><num>(a

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-62-2-a"><num>(a)</num><content>the adjusted post-merger amount, determined in accordance with <ref href="#section-64">section 64</ref> does not exceed the small production limit (within the meaning of <ref

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-62-2-b"><num>(b)</num><content>in relation to each set of post-merger production group premises, less than half of the alcohol production amount (if any), in relation to those premises, for the previous yea

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-63"><num>63</num><heading>Modified duty discount</heading><subsection eId="section-63-1"><num>(1)</num><intro><ref href="#section-63">This section</ref> applies in relation to alcoholic products that are produced—<

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-63-1"><num>(1)</num><intro><ref href="#section-63">This section</ref> applies in relation to alcoholic products that are produced—</intro><level class="para1" eId="section-63-1-a"><num>(a)</num><content>on po

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-63-1-a"><num>(a)</num><content>on post-merger production group premises, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-63-1-b"><num>(b)</num><content>in a merger transition year.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-63-2"><num>(2)</num><content>For the purposes of <ref href="#section-59">section 59</ref>, references to the “<term refersTo="#term-relevant-production-amount" eId="term-relevant-production-amount">relevant producti

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-63-3"><num>(3)</num><content><ref href="#section-58">Section 58</ref><ref href="#section-58-c">(c)</ref> does not apply for the purposes of the application of <ref href="#section-55">section 55</ref> or <ref href="#

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64"><num>64</num><heading>Adjusted post-merger amount</heading><subsection eId="section-64-1"><num>(1)</num><content>In Year 1, the adjusted post-merger amount is the alcohol production amount in relation to the larger

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64-1"><num>(1)</num><content>In Year 1, the adjusted post-merger amount is the alcohol production amount in relation to the larger producer’s premises for the pre-merger year, determined in accordance with <ref href

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64-2"><num>(2)</num><intro>In Year 2, the adjusted post-merger amount is the total of—</intro><level class="para1" eId="section-64-2-a"><num>(a)</num><content>the adjusted post-merger amount in Year 1, and</p

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-2-a"><num>(a)</num><content>the adjusted post-merger amount in Year 1, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-2-b"><num>(b)</num><content>one-third of the production difference for Year 2.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64-3"><num>(3)</num><intro>In Year 3, the adjusted post-merger amount is the total of—</intro><level class="para1" eId="section-64-3-a"><num>(a)</num><content>the adjusted post-merger amount in Year 1, and</p

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-3-a"><num>(a)</num><content>the adjusted post-merger amount in Year 1, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-3-b"><num>(b)</num><content>two-thirds of the production difference for Year 3.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64-4"><num>(4)</num><intro>The amount of the “production difference” for a merger transition year is the difference between—</intro><level class="para1" eId="section-64-4-a"><num>(a)</num><content>the aggrega

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-4-a"><num>(a)</num><content>the aggregate of the alcohol production amount, in relation to every set of post-merger production group premises, for the previous year (determined in accordance with <ref hr

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-4-b"><num>(b)</num><content>the adjusted post-merger amount in Year 1.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64-5"><num>(5)</num><intro>If the alcohol production amount attributable to SP1’s premises for the pre-merger year is greater than the alcohol production amount attributable to SP2’s premises for that year—</int

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-5-a"><num>(a)</num><content>SP1 is the “larger producer”, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-5-b"><num>(b)</num><content>SP2 is the “smaller producer”,</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64-6"><num>(6)</num><content>If the amount mentioned in <ref href="#section-64-5">subsection (5)</ref> is equal in relation to both SP1’s premises and SP2’s premises, either SP1 or SP2 may be treated as the “<term r

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64-7"><num>(7)</num><intro>In <ref href="#section-64-1">subsections (1)</ref>, <ref href="#section-64-5">(5)</ref> and <ref href="#section-64-6">(6)</ref>, references to a person’s premises are references to—</i

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-7-a"><num>(a)</num><content>the premises on which the person produces alcoholic products immediately before becoming connected with the other person mentioned in <ref href="#section-61">section 61</ref><

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-7-b"><num>(b)</num><content>if those premises are group premises, the production group which, at that time, includes those premises (and the reference in <ref href="#section-64-1">subsection (1)</ref> to

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-65"><num>65</num><heading>Early termination of merger transition period</heading><subsection eId="section-65-1"><num>(1)</num><content><ref href="#section-65">This section</ref> applies in relation to a post-merger pro

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-65-1"><num>(1)</num><content><ref href="#section-65">This section</ref> applies in relation to a post-merger production group if, in a relevant year, Amount A is less than Amount B.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-65-2"><num>(2)</num><content>“Amount A” is the aggregate of the alcohol production amount, in relation to every set of premises in the group, for the production year immediately preceding the relevant year (determin

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-65-3"><num>(3)</num><content>“Amount B” is the adjusted post-merger amount in the relevant year.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-65-4"><num>(4)</num><content>Neither the relevant year, nor any subsequent production year, is a merger transition year in relation to the group.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-65-5"><num>(5)</num><content>Each of Year 1, 2 and 3 is a “<term refersTo="#term-relevant-year" eId="term-relevant-year">relevant year</term>” for the purposes of <ref href="#section-65">this section</ref>.</con

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66"><num>66</num><heading>Subsequent mergers</heading><subsection eId="section-66-1"><num>(1)</num><intro><ref href="#section-66">This section</ref> applies if—</intro><level class="para1" eId="section-66-1-a"><num

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66-1"><num>(1)</num><intro><ref href="#section-66">This section</ref> applies if—</intro><level class="para1" eId="section-66-1-a"><num>(a)</num><content>a person who produces alcoholic products on group prem

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-66-1-a"><num>(a)</num><content>a person who produces alcoholic products on group premises which are included in a post-merger production group (the “first post-merger group”) becomes connected with another

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-66-1-b"><num>(b)</num><content>the producers mentioned in <ref href="#section-66-1-a">paragraph (a)</ref> become connected with one another in Year 1, 2 or 3 in relation to the first post-merger group.<

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66-2"><num>(2)</num><content>Neither the production year in which the producers mentioned in <ref href="#section-66-1">subsection (1)</ref><ref href="#section-66-1-a">(a)</ref> become connected with one another, nor

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-66-3"><num>(3)</num><content>But <ref href="#section-61-2">subsection (2)</ref> does not prevent the application of <ref href="#section-61">sections 61</ref> to <ref href="#section-67">67</ref> in relat

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-67"><num>67</num><heading>Simultaneous mergers</heading><subsection eId="section-67-1"><num>(1)</num><content><ref href="#section-67-2">Subsections (2)</ref> to <ref href="#section-67-4">(4)</ref> apply if

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-67-1"><num>(1)</num><content><ref href="#section-67-2">Subsections (2)</ref> to <ref href="#section-67-4">(4)</ref> apply if, at the same time as SP1 becomes connected with SP2, SP1 also becomes connect

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-67-2"><num>(2)</num><content>References in <ref href="#section-61">sections 61</ref> and <ref href="#section-64">64</ref> to SP2 include references to the other small producers becoming connected with S

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-67-3"><num>(3)</num><intro>For the purposes of <ref href="#section-64">section 64</ref>—</intro><level class="para1" eId="section-67-3-a"><num>(a)</num><content>the “larger producer” is the producer with a gr

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-67-3-a"><num>(a)</num><content>the “larger producer” is the producer with a greater alcohol production amount attributable to the producer’s premises for the pre-merger year than any of the other producers

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-67-3-b"><num>(b)</num><content>each of the other producers is a “smaller producer”,</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-67-4"><num>(4)</num><content>If the amount mentioned in <ref href="#section-67-3">subsection (3)</ref><ref href="#section-67-3-a">(a)</ref> is equal in relation to any two or more of the producers mentioned in <ref

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68"><num>68</num><heading>Demergers</heading><subsection eId="section-68-1"><num>(1)</num><content><ref href="#section-68">This section</ref> applies if a demerger event occurs in relation to a production group.</c

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68-1"><num>(1)</num><content><ref href="#section-68">This section</ref> applies if a demerger event occurs in relation to a production group.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68-2"><num>(2)</num><content>A “demerger event” occurs, in relation to a production group, if a group producer (the “demerging producer”) ceases to be connected with at least one other group producer.</content><

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68-3"><num>(3)</num><content>A “<term refersTo="#term-group-producer" eId="term-group-producer">group producer</term>” in relation to a production group means a person who produces alcoholic products on premises tha

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68-4"><num>(4)</num><content>For the purposes of the application of <ref href="#section-56">sections 56</ref> and <ref href="#section-59">59</ref> in relation to the demerger year, the alcohol production amount for

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68-5"><num>(5)</num><content>If, before the end of the restricted period, the demerging producer becomes connected again with another group producer, none of <ref href="#section-61">sections 61</ref> to <ref h

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68-6"><num>(6)</num><content>For the purposes of <ref href="#section-68-5">subsection (5)</ref>, the “restricted period” is the period of 7 years beginning with the date on which the demerger event occurs.</cont

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68-7"><num>(7)</num><content><ref href="#section-68-8">Subsection (8)</ref> applies if the demerger event occurs in Year 1, 2 or 3 in relation to a post-merger production group (the “relevant group”).</content><

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68-8"><num>(8)</num><content>Neither the production year in which the event occurs, nor any subsequent year, is a merger transition year in relation to the relevant group.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68-9"><num>(9)</num><content>References in <ref href="#section-68">this section</ref> to the “demerger year” are references to the production year in which the demerger event occurs.</content></subsection>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" name="crossheading" ukl:Name="Pblock" eId="part-2-chapter-3-crossheading-interpretation-of-chapter-3"><heading>Interpreta

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-69"><num>69</num><heading>“Producer”, “production premises”, “group premises” etc</heading><subsection eId="section-69-1"><num>(1)</num><content><ref href="#section-69">This section</ref> applies for the purposes of <r

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-69-1"><num>(1)</num><content><ref href="#section-69">This section</ref> applies for the purposes of <ref href="#part-2-chapter-3">this Chapter</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-69-2"><num>(2)</num><content>“<term refersTo="#term-production-premises" eId="term-production-premises">Production premises</term>” means premises (whether or not in the United Kingdom) on which alcoholic products a

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-69-3"><num>(3)</num><intro>Production premises are “group premises” at a time in a production year (the “reference time”) if—</intro><level class="para1" eId="section-69-3-a"><num>(a)</num><content>a person (

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-69-3-a"><num>(a)</num><content>a person (“<term refersTo="#term-p" eId="term-p">P</term>”) who produces alcoholic products on the premises at the reference time or at any earlier time in that year, or</

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-69-3-b"><num>(b)</num><content>a person connected with P,</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-69-4"><num>(4)</num><intro>“<term refersTo="#term-connected-premises" eId="term-connected-premises">Connected premises</term>”, in relation to group premises, means premises on which alcoholic products are produced

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-69-4-b"><num>(b)</num><content>a person connected with P.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-69-5"><num>(5)</num><intro>References to “<term refersTo="#term-the-production-group" eId="term-the-production-group">the production group</term>”, in relation to group premises, are references to the group consisti

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-69-5-a"><num>(a)</num><content>the group premises, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-69-5-b"><num>(b)</num><content>every set of connected premises.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-69-6"><num>(6)</num><content>Production premises are “non-group premises” at a time in a production year if, at that time, they are not group premises.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-69-7"><num>(7)</num><intro>In <ref href="#part-2-chapter-3">this Chapter</ref>—</intro><level class="para1" eId="section-69-7-a"><num>(a)</num><content>references to the “<term refersTo="#term-producer" eId="

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-69-7-a"><num>(a)</num><content>references to the “<term refersTo="#term-producer" eId="term-producer">producer</term>”, in relation to a set of premises, are references to the person who produces alcoholic

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-69-7-b"><num>(b)</num><content>references to a “small producer” are references to a person who produces small producer alcoholic products.</content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-70"><num>70</num><heading>Connected persons</heading><subsection eId="section-70-1"><num>(1)</num><content>References in <ref href="#part-2-chapter-3">this Chapter</ref> to a person being or becoming connected with ano

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-70-1"><num>(1)</num><content>References in <ref href="#part-2-chapter-3">this Chapter</ref> to a person being or becoming connected with another person are to be construed in accordance with section 1122 of CTA 2010

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-70-2"><num>(2)</num><content>But the Commissioners may, if they think it appropriate, treat two connected persons as if they were not connected with one another for the purposes of <ref href="#part-2-chapter-3">this

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-71"><num>71</num><heading>Index of defined expressions: <ref href="#part-2-chapter-3">Chapter 3</ref></heading>

<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="part-2-chapter-4"><num>Chapter 4</num><heading>Other reliefs and exemptions</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-chapter-4-crosshe

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-2-chapter-4-crossheading-general"><heading>General</heading><section eId="section-72"><num>72</num><heading>Exemption:

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-72"><num>72</num><heading>Exemption: production for personal consumption</heading><intro>Alcohol duty is not charged on alcoholic products which—</intro><level class="para1" eId="section-72-a"><num>(a)</num><conten

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-72-a"><num>(a)</num><content>are produced, in the United Kingdom, by a person who produces alcoholic products only for the person’s own domestic use, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-72-b"><num>(b)</num><content>are not spirits.</content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-73"><num>73</num><heading>Research and experiments</heading><subsection eId="section-73-1"><num>(1)</num><intro><ref href="#section-73">This section</ref> applies where—</intro><level class="para1" eId="section-73-

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-73-1"><num>(1)</num><intro><ref href="#section-73">This section</ref> applies where—</intro><level class="para1" eId="section-73-1-a"><num>(a)</num><content>alcohol duty is chargeable on alcoholic products pr

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-73-1-a"><num>(a)</num><content>alcohol duty is chargeable on alcoholic products produced in the United Kingdom, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-73-1-b"><num>(b)</num><content>the Commissioners are satisfied that the alcoholic products are to be used only for the purposes of research into, or experiments in, the production of alcoholic products.

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-73-2"><num>(2)</num><content>The Commissioners may remit or repay the alcohol duty.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-74"><num>74</num><heading>Spoilt alcoholic products</heading><subsection eId="section-74-1"><num>(1)</num><intro><ref href="#section-74">This section</ref> applies where—</intro><level class="para1" eId="section-74

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-74-1"><num>(1)</num><intro><ref href="#section-74">This section</ref> applies where—</intro><level class="para1" eId="section-74-1-a"><num>(a)</num><content>alcohol duty is chargeable on alcoholic products, a

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-74-1-a"><num>(a)</num><content>alcohol duty is chargeable on alcoholic products, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-74-1-b"><num>(b)</num><content>the Commissioners are satisfied that the alcoholic products have become spoilt or unfit for use.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-74-2"><num>(2)</num><content>The Commissioners may remit or repay the alcohol duty.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-75"><num>75</num><heading>Alcoholic ingredients</heading><subsection eId="section-75-1"><num>(1)</num><intro> <ref href="#section-75-2">Subsection (2)</ref> applies where a person proves to the satisfaction of the Comm

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-75-1"><num>(1)</num><intro> <ref href="#section-75-2">Subsection (2)</ref> applies where a person proves to the satisfaction of the Commissioners that—</intro><level class="para1" eId="section-75-1-a"><num>(a)</

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-75-1-a"><num>(a)</num><content>alcohol duty is chargeable, and has been paid, on alcoholic products, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-75-1-b"><num>(b)</num><intro>the alcoholic products have been used as an ingredient in the production or manufacture of—</intro><level class="para2" eId="section-75-1-b-i"><num>(i)</num><content>a qu

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-75-1-b-i"><num>(i)</num><content>a qualifying food product, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-75-1-b-ii"><num>(ii)</num><content>a beverage of an alcoholic strength of 1.2% or less.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-75-2"><num>(2)</num><content>The person is entitled to repayment of the alcohol duty, on making a claim in accordance with <ref href="#section-75">this section</ref> (subject to <ref href="#section-75-7">subsection

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-75-3"><num>(3)</num><intro>In <ref href="#section-75">this section</ref> “<term refersTo="#term-qualifying-food-product" eId="term-qualifying-food-product">qualifying food product</term>” means—</intro><level cl

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-75-3-a"><num>(a)</num><content>vinegar,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-75-3-b"><num>(b)</num><content>chocolates containing alcohol, where 100 kilograms of the chocolates would not contain more than 8.5 litres of alcohol, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-75-3-c"><num>(c)</num><content>any other food (for human consumption) which contains alcohol, where 100 kilograms of the food would not contain more than 5 litres of alcohol.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-75-4"><num>(4)</num><content>Alcoholic products that are converted into vinegar are treated, for the purposes of <ref href="#section-75">this section</ref>, as being used as an ingredient in the production or manufa

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-75-5"><num>(5)</num><intro>Neither of the following is a qualifying food product for the purposes of this section—</intro><level class="para1" eId="section-75-5-a"><num>(a)</num><content>a beverage, including

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-75-5-a"><num>(a)</num><content>a beverage, including a beverage produced or intended for consumption in frozen form;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-75-5-b"><num>(b)</num><content>a product that is intended for consumption as a substitute for a beverage.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-75-6"><num>(6)</num><intro>A claim for repayment under <ref href="#section-75">this section</ref>—</intro><level class="para1" eId="section-75-6-a"><num>(a)</num><content>must be in the form and manner, and c

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-75-6-a"><num>(a)</num><content>must be in the form and manner, and contain the information, required by the Commissioners (either generally or in a particular case), and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-75-6-b"><num>(b)</num><content>except so far as the Commissioners otherwise allow, relate to duty paid on alcoholic products used as an ingredient during a period of 3 months ending not more than 3 years be

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-75-7"><num>(7)</num><content>No repayment of duty may be made unless the Commissioners are satisfied that the repayment claimed does not relate to any duty which has been repaid or drawn back prior to the making of

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-75-8"><num>(8)</num><intro>The Commissioners may remit any alcohol duty chargeable—</intro><level class="para1" eId="section-75-8-a"><num>(a)</num><content>on alcoholic products imported into the United Kingd

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-75-8-a"><num>(a)</num><content>on alcoholic products imported into the United Kingdom at a time when they are contained as an ingredient in a qualifying food product within <ref href="#section-75-3">subsect

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-75-8-b"><num>(b)</num><content>on alcoholic products used as an ingredient in the manufacture or production in an excise warehouse of a qualifying food product within <ref href="#section-75-3">subsection (3

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-2-chapter-4-crossheading-spirits"><heading>Spirits</heading><section eId="section-76"><num>76</num><heading>Imported m

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-76"><num>76</num><heading>Imported medical articles</heading><subsection eId="section-76-1"><num>(1)</num><content>Alcohol duty is not charged on spirits contained in medical articles imported into the United Kingdom.<

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-76-1"><num>(1)</num><content>Alcohol duty is not charged on spirits contained in medical articles imported into the United Kingdom.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-76-2"><num>(2)</num><content>“<term refersTo="#term-medical-article" eId="term-medical-article">Medical article</term>” means an article recognised by the Commissioners as being an article used for medical purposes.

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-77"><num>77</num><heading>Flavourings</heading><subsection eId="section-77-1"><num>(1)</num><content>Alcohol duty is not charged on spirits contained in food and drink flavourings.</content></subsection><subsection

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-77-1"><num>(1)</num><content>Alcohol duty is not charged on spirits contained in food and drink flavourings.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-77-2"><num>(2)</num><intro>In <ref href="#section-77">this section</ref>—</intro><hcontainer name="definition"><intro>“<term refersTo="#term-food-and-drink-flavourings" eId="term-food-and-drink-flavourings">f

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78"><num>78</num><heading>Authorised use for certain purposes</heading><subsection eId="section-78-1"><num>(1)</num><intro><ref href="#section-78">This section</ref> applies where a person proposes to use spirits, on w

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78-1"><num>(1)</num><intro><ref href="#section-78">This section</ref> applies where a person proposes to use spirits, on which alcohol duty is chargeable, either—</intro><level class="para1" eId="section-78-1-a"

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-78-1-a"><num>(a)</num><content>in the manufacture or preparation of medical articles, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-78-1-b"><num>(b)</num><content>for scientific purposes.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78-2"><num>(2)</num><intro><ref href="#section-78">This section</ref> also applies where—</intro><level class="para1" eId="section-78-2-a"><num>(a)</num><content>a person proposes to use spirits, on which alc

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-78-2-a"><num>(a)</num><content>a person proposes to use spirits, on which alcohol duty is chargeable, for the purposes of art or manufacture (other than the manufacture of medical articles), and</conten

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-78-2-b"><num>(b)</num><content>the Commissioners are satisfied that denatured alcohol would not be suitable for that use.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78-3"><num>(3)</num><content>The Commissioners may authorise the person to receive the spirits, and permit the delivery of the spirits from relevant premises to that person, without payment of the alcohol duty.<

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78-4"><num>(4)</num><intro>In <ref href="#section-78-3">subsection (3)</ref>, “<term refersTo="#term-relevant-premises" eId="term-relevant-premises">relevant premises</term>” means—</intro><level class="para1" e

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-78-4-a"><num>(a)</num><content>an excise warehouse, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-78-4-b"><num>(b)</num><content>premises in respect of which a person is approved (including premises on which a person is authorised to hold alcoholic products without payment of duty) under <ref href="#sec

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78-5"><num>(5)</num><intro>An authorisation under <ref href="#section-78">this section</ref> may be given subject to the conditions (if any)—</intro><level class="para1" eId="section-78-5-a"><num>(a)</num><conte

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-78-5-a"><num>(a)</num><content>specified by the Commissioners in a notice published by them;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-78-5-b"><num>(b)</num><content>imposed by them in a particular case.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78-6"><num>(6)</num><content>If a person fails to comply with a condition in respect of an authorisation, the failure attracts a penalty under section 9 of FA 1994.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78-7"><num>(7)</num><intro><ref href="#section-78-8">Subsection (8)</ref> applies if—</intro><level class="para1" eId="section-78-7-a"><num>(a)</num><content>the spirits are delivered to the person mentioned

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-78-7-a"><num>(a)</num><content>the spirits are delivered to the person mentioned in <ref href="#section-78-3">subsection (3)</ref>, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-78-7-b"><num>(b)</num><content>the spirits are used otherwise than for the purpose in respect of which the authorisation was given.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78-8"><num>(8)</num><intro>The Commissioners—</intro><level class="para1" eId="section-78-8-a"><num>(a)</num><content>may assess as being alcohol duty due from the person an amount equal to the alcohol duty t

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-78-8-a"><num>(a)</num><content>may assess as being alcohol duty due from the person an amount equal to the alcohol duty that would have been charged on the spirits if, at the time of delivery, no authorisat

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-78-8-b"><num>(b)</num><content>must notify that person or the person’s representative of the assessment.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-78-9"><num>(9)</num><content>In <ref href="#section-78">this section</ref> “<term refersTo="#term-medical-article" eId="term-medical-article">medical article</term>” has the same meaning as in <ref href="#section-76

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-79"><num>79</num><heading>Imported goods not for human consumption</heading><subsection eId="section-79-1"><num>(1)</num><content>The Commissioners may remit any alcohol duty chargeable on spirits imported into the Uni

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-79-1"><num>(1)</num><content>The Commissioners may remit any alcohol duty chargeable on spirits imported into the United Kingdom at a time when the spirits are contained in goods that are not for human consumption.<

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-79-2"><num>(2)</num><intro>If it turns out that the goods containing spirits are for human consumption, the Commissioners—</intro><level class="para1" eId="section-79-2-a"><num>(a)</num><content>may assess as

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-79-2-a"><num>(a)</num><content>may assess as being alcohol duty due from the relevant person an amount equal to the alcohol duty that would (apart from <ref href="#section-79-1">subsection (1)</ref>) have b

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-79-2-b"><num>(b)</num><content>must notify the relevant person or that person’s representative of the assessment.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-79-3"><num>(3)</num><content>For the purposes of <ref href="#section-79-2">subsection (2)</ref>, references to “<term refersTo="#term-the-relevant-person" eId="term-the-relevant-person">the relevant person</term>” a

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80"><num>80</num><heading>Restrictions on use of certain articles</heading><subsection eId="section-80-1"><num>(1)</num><intro>If a person makes unauthorised use of an article to which <ref href="#section-80">this sect

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80-1"><num>(1)</num><intro>If a person makes unauthorised use of an article to which <ref href="#section-80">this section</ref> applies—</intro><level class="para1" eId="section-80-1-a"><num>(a)</num><content><p

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-80-1-a"><num>(a)</num><content>that conduct attracts a penalty under section 9 of FA 1994, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-80-1-b"><num>(b)</num><content>the article is liable to forfeiture.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80-2"><num>(2)</num><intro><ref href="#section-80">This section</ref> applies to—</intro><level class="para1" eId="section-80-2-a"><num>(a)</num><content>an article containing spirits which are exempt under <

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-80-2-a"><num>(a)</num><content>an article containing spirits which are exempt under <ref href="#section-76">section 76</ref> from the charge to alcohol duty;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-80-2-b"><num>(b)</num><content>an article in respect of which spirits were used in the manufacture or preparation, where remission of alcohol duty on the spirits was obtained under <ref href="#section-78">s

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80-3"><num>(3)</num><intro>A person makes “unauthorised use” of an article for the purposes of <ref href="#section-80">this section</ref> if—</intro><level class="para1" eId="section-80-3-a"><num>(a)</num><conte

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-80-3-a"><num>(a)</num><content>the person uses the article other than for medical or scientific purposes, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-80-3-b"><num>(b)</num><content>the person has not complied with the requirements under <ref href="#section-80-4">subsection (4)</ref>.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80-4"><num>(4)</num><intro>The requirements are that—</intro><level class="para1" eId="section-80-4-a"><num>(a)</num><content>the person must obtain the written consent of the Commissioners to the use of the

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-80-4-a"><num>(a)</num><content>the person must obtain the written consent of the Commissioners to the use of the article other than for medical or scientific purposes, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-80-4-b"><num>(b)</num><content>the person must pay to the Commissioners an amount equal to the duty shortfall.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80-5"><num>(5)</num><intro>In <ref href="#section-80">this section</ref>, the “<term refersTo="#term-duty-shortfall" eId="term-duty-shortfall">duty shortfall</term>” means—</intro><level class="para1" eId="secti

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-80-5-a"><num>(a)</num><content>the difference between the duty charged on the spirits contained in, or used in the manufacture or preparation of, the article, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-80-5-b"><num>(b)</num><content>the duty which would have been chargeable had the article not been exempt under <ref href="#section-76">section 76</ref> or the duty had not been remitted under <ref href="#se

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80-6"><num>(6)</num><content>The Commissioners may make regulations for the purpose of enforcing <ref href="#section-80">this section</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80-7"><num>(7)</num><intro>Regulations under <ref href="#section-80-6">subsection (6)</ref> may, in particular, require a person carrying on any trade in which spirits or articles containing, manufactured or prepare

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-80-7-a"><num>(a)</num><content>to give and verify particulars of the materials which the person is using or has used, or the articles the person has sold;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-80-7-b"><num>(b)</num><content>to produce any documents (of whatever nature) relating to such materials or articles.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80-8"><num>(8)</num><content>If a person contravenes or fails to comply with any regulation made under <ref href="#section-80-6">subsection (6)</ref>, the contravention or failure attracts a penalty under section 9

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-80-9"><num>(9)</num><content>In <ref href="#section-80">this section</ref>, a reference to an article includes a reference to any part of that article.</content></subsection>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-2-chapter-4-crossheading-remission-and-repayment"><heading>Remission and repayment</heading><section eId="section-81">

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-81"><num>81</num><heading>Further provision about remission and repayment</heading><subsection eId="section-81-1"><num>(1)</num><intro>The remission or repayment of alcohol duty under any provision of <ref href="#part-

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-81-1"><num>(1)</num><intro>The remission or repayment of alcohol duty under any provision of <ref href="#part-2-chapter-4">this Chapter</ref> is subject to the conditions (if any)—</intro><level class="para1" eI

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-81-1-a"><num>(a)</num><content>specified by the Commissioners in a notice published by them;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-81-1-b"><num>(b)</num><content>specified by or under regulations made by them;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-81-1-c"><num>(c)</num><content>imposed by them in a particular case.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-81-2"><num>(2)</num><content>If a person fails to comply with a condition in respect of the remission or repayment, the failure attracts a penalty under section 9 of FA 1994.</content></subsection>

<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="part-2-chapter-5"><num>Chapter 5</num><heading>Regulated activities and approvals</heading><section eId="section-82"><num>82</num><heading>Approval requirement: producers</heading><subsection eId="section-82-1"><num>(1)</num><int

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-82"><num>82</num><heading>Approval requirement: producers</heading><subsection eId="section-82-1"><num>(1)</num><intro>A person may not produce alcoholic products on any premises unless—</intro><level class="para1"

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-82-1"><num>(1)</num><intro>A person may not produce alcoholic products on any premises unless—</intro><level class="para1" eId="section-82-1-a"><num>(a)</num><content>the production on those premises is in ac

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-82-1-a"><num>(a)</num><content>the production on those premises is in accordance with an approval given under <ref href="#section-82">this section</ref> by the Commissioners to the person, or</content><

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-82-1-b"><num>(b)</num><content>the person is exempt from the approval requirement under <ref href="#section-84">section 84</ref> or <ref href="#section-85">85</ref>.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-82-2"><num>(2)</num><content>The Commissioners may approve a person under <ref href="#section-82">this section</ref> only if they are satisfied that the person is a fit and proper person to produce alcoholic product

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-82-3"><num>(3)</num><content>An approval under <ref href="#section-82">this section</ref> may authorise the approved person to hold alcoholic products (including alcoholic products produced by another person in, or

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-82-4"><num>(4)</num><content>A person may not carry out other activities on those premises in relation to those alcoholic products, without payment of alcohol duty, except in accordance with an approval under this s

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-82-5"><num>(5)</num><content>The reference in subsection (4) to “<term refersTo="#term-activities" eId="term-activities">activities</term>” includes, in particular, packaging and processing, or carrying out other op

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-83"><num>83</num><heading>Supplementary provision about approvals</heading><subsection eId="section-83-1"><num>(1)</num><intro>An approval under <ref href="#section-82">section 82</ref> may be given to a person—</i

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-83-1"><num>(1)</num><intro>An approval under <ref href="#section-82">section 82</ref> may be given to a person—</intro><level class="para1" eId="section-83-1-a"><num>(a)</num><intro>in respect of—</intro>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-83-1-a"><num>(a)</num><intro>in respect of—</intro><level class="para2" eId="section-83-1-a-i"><num>(i)</num><content>more than one category of alcoholic product;</content></level><level class="p

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-83-1-a-i"><num>(i)</num><content>more than one category of alcoholic product;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-83-1-a-ii"><num>(ii)</num><content>more than one set of premises;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-83-1-b"><num>(b)</num><content>for such period as the Commissioners think fit.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-83-2"><num>(2)</num><intro>An approval is subject to the conditions or restrictions (if any)—</intro><level class="para1" eId="section-83-2-a"><num>(a)</num><content>specified by the Commissioners in a notice

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-83-2-a"><num>(a)</num><content>specified by the Commissioners in a notice published by them;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-83-2-b"><num>(b)</num><content>specified by or under regulations made by them;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-83-2-c"><num>(c)</num><content>imposed by them in a particular case.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-83-3"><num>(3)</num><content>The Commissioners may, at any time, revoke or vary the terms of an approval.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-83-4"><num>(4)</num><content>An application for approval must be in the form and manner, and contain the information, specified by or under regulations made by the Commissioners.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-84"><num>84</num><heading>Exemption: production for personal consumption</heading><intro>For the purposes of <ref href="#section-82">section 82</ref><ref href="#section-82-1">(1)</ref><ref href="#section-82-1-b">(b)</r

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-84-a"><num>(a)</num><content>the person produces alcoholic products only for the person’s own domestic use, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-84-b"><num>(b)</num><content>the alcoholic products are not spirits.</content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-85"><num>85</num><heading>Exemption: research and experiments</heading><intro>For the purposes of <ref href="#section-82">section 82</ref><ref href="#section-82-1">(1)</ref><ref href="#section-82-1-b">(b)</ref>, a pers

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-85-a"><num>(a)</num><content>the person produces alcoholic products only for the purposes of research into, or experiments in, the production of alcoholic products, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-85-b"><num>(b)</num><intro>the person complies with, and the alcoholic products are produced in accordance with, the requirements specified—</intro><level class="para2" eId="section-85-b-i"><num>(i)</nu

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-85-b-i"><num>(i)</num><content>by the Commissioners in a notice published by them, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-85-b-ii"><num>(ii)</num><content>by or under regulations made by the Commissioners.</content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86"><num>86</num><heading>Mixing alcoholic products</heading><subsection eId="section-86-1"><num>(1)</num><content>A person may not mix two or more alcoholic products unless one of the following exemptions applies.

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86-1"><num>(1)</num><content>A person may not mix two or more alcoholic products unless one of the following exemptions applies.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86-2"><num>(2)</num><intro>The first exemption applies if the products are mixed—</intro><level class="para1" eId="section-86-2-a"><num>(a)</num><intro>either—</intro><level class="para2" eId="section-86-

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-2-a"><num>(a)</num><intro>either—</intro><level class="para2" eId="section-86-2-a-i"><num>(i)</num><content>in accordance with an approval under <ref href="#section-82">section 82</ref>, or</c

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-86-2-a-i"><num>(i)</num><content>in accordance with an approval under <ref href="#section-82">section 82</ref>, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-86-2-a-ii"><num>(ii)</num><content>in an excise warehouse, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-2-b"><num>(b)</num><content>the mixing takes place before the excise duty point.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86-3"><num>(3)</num><intro>The second exemption applies if all of the alcoholic products being mixed—</intro><level class="para1" eId="section-86-3-a"><num>(a)</num><content>fall within the same paragraph of

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-3-a"><num>(a)</num><content>fall within the same paragraph of <ref href="#section-44">section 44</ref><ref href="#section-44-1">(1)</ref>, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-3-b"><num>(b)</num><content>are of the same alcoholic strength.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86-4"><num>(4)</num><intro>The third exemption applies if—</intro><level class="para1" eId="section-86-4-a"><num>(a)</num><content>the alcohol duty on each of the alcoholic products being mixed has been paid,

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-4-a"><num>(a)</num><content>the alcohol duty on each of the alcoholic products being mixed has been paid, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-4-b"><num>(b)</num><content>that amount is equal to or exceeds the amount of alcohol duty that would (if the mixing had taken place before the excise duty point) have been chargeable on the resulting mix

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-86-5"><num>(5)</num><intro>The fourth exemption applies if—</intro><level class="para1" eId="section-86-5-a"><num>(a)</num><content>the alcohol duty on each of the alcoholic products being mixed has been paid

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-5-a"><num>(a)</num><content>the alcohol duty on each of the alcoholic products being mixed has been paid,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-5-b"><num>(b)</num><content>the resulting mix is intended for consumption on the premises on which the mixing takes place, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-86-5-c"><num>(c)</num><content>the method of mixing is of a description specified in a notice published by the Commissioners.</content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-87"><num>87</num><heading>Post-duty point dilution of alcoholic products</heading><subsection eId="section-87-1"><num>(1)</num><intro>A person may not mix water or any other substance with alcoholic products on which a

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-87-1"><num>(1)</num><intro>A person may not mix water or any other substance with alcoholic products on which alcohol duty is chargeable if—</intro><level class="para1" eId="section-87-1-a"><num>(a)</num><conten

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-87-1-a"><num>(a)</num><content>the mixing takes places after the excise duty point in relation to that charge,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-87-1-b"><num>(b)</num><content>the resulting product is intended for sale, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-87-1-c"><num>(c)</num><content>if the mixing had taken place immediately before the excise duty point, the amount of alcohol duty would have been greater than the amount actually payable.</content></lev

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-87-2"><num>(2)</num><content><ref href="#section-87">This section</ref> has effect, despite section 8 of the Isle of Man Act 1979, as if a removal of relevant alcoholic products to the United Kingdom from the Isle o

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88"><num>88</num><heading>Alcoholic products regulations</heading><subsection eId="section-88-1"><num>(1)</num><intro>The Commissioners may by regulations (“<term refersTo="#term-alcoholic-products-regulations" eId="te

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88-1"><num>(1)</num><intro>The Commissioners may by regulations (“<term refersTo="#term-alcoholic-products-regulations" eId="term-alcoholic-products-regulations">alcoholic products regulations</term>”) make provisio

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-1-a"><num>(a)</num><content>regulating the production, packaging, keeping and storage of alcoholic products produced in, or imported into, the United Kingdom;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-1-b"><num>(b)</num><content>for determining when the production of any alcoholic product begins and when it is completed;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-1-c"><num>(c)</num><content>for securing and collecting alcohol duty;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-1-d"><num>(d)</num><content>for determining alcohol duty, the rate and the method of charging the duty;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-1-e"><num>(e)</num><content>for charging alcohol duty, in specified circumstances, by reference to an alcoholic strength which any alcoholic product might reasonably be expected to have, or the rate of d

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-1-f"><num>(f)</num><content>for determining the alcohol production amount in relation to a set of premises (for the purposes of Chapter 3 of this Part), in specified circumstances, by reference to an alc

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-1-g"><num>(g)</num><content>for full or partial relief from alcohol duty in specified circumstances (and whether or not subject to conditions);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-1-h"><num>(h)</num><content>regulating or prohibiting the addition of substances to, the mixing of, or the carrying out of other operations on or in relation to, any alcoholic product;</content></lev

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-1-i"><num>(i)</num><content>regulating the approval of persons under this Chapter, including the variation or revocation of the approval or of any condition or restriction to which it is subject;</co

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-1-j"><num>(j)</num><content>permitting, in specified circumstances, the removal of alcoholic products from certain premises without payment of duty (whether or not subject to conditions);</content></

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-1-k"><num>(k)</num><content>make provision in respect of alcoholic products permitted to be removed from premises without payment of duty or on which alcohol duty has been remitted;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-1-l"><num>(l)</num><content>regulating the transportation of alcoholic products;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-1-m"><num>(m)</num><content>requiring the production of certificates as to matters relating to alcoholic products imported into the United Kingdom, and the production and producer of those products, as e

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88-2"><num>(2)</num><intro>Alcoholic products regulations may, in particular, include provision—</intro><level class="para1" eId="section-88-2-a"><num>(a)</num><content>requiring the making of returns;</c

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-2-a"><num>(a)</num><content>requiring the making of returns;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-2-b"><num>(b)</num><content>for notifications and other communications with the Commissioners to be made electronically;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-2-c"><num>(c)</num><content>requiring persons to keep, and make available for inspection, specified records relating to alcoholic products;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-2-d"><num>(d)</num><content>for the imposition under the regulations of requirements as to documents to accompany, or be provided with, alcohol products at any time during a specified period or in specif

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-2-e"><num>(e)</num><content>conferring powers on an officer of Revenue and Customs to inspect, copy or remove for a reasonable period records or documents relating to alcoholic products;</content></l

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-2-f"><num>(f)</num><content>for assessing an amount as alcohol duty due from a person in specified circumstances;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-2-g"><num>(g)</num><content>for the imposition under the regulations of conditions and restrictions (which may include a requirement to give a guarantee or other security).</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88-3"><num>(3)</num><intro>The reference in <ref href="#section-88-1">subsection (1)</ref><ref href="#section-88-1-k">(k)</ref> to alcoholic products permitted to be removed from premises without payment of duty is

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-3-a"><num>(a)</num><content>treated for the purposes of alcohol duty, by provision made (or having effect as if made) under section 12 of the Customs and Excise Duties (General Reliefs) Act 1979 (supply

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-3-b"><num>(b)</num><content>supplied to persons on whom relief from payment of alcohol duty is conferred by provision made under section 13A of that Act (reliefs from duties and taxes for persons enjoyin

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-88-3-c"><num>(c)</num><content>supplied for use on a ship, aircraft or railway vehicle as stores, in accordance with provision made under section 60A of CEMA 1979 (power to make regulations about stores).</

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-88-4"><num>(4)</num><content>In this section, “<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified by or under alcoholic products regulations.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-89"><num>89</num><heading>Penalties and forfeiture</heading><subsection eId="section-89-1"><num>(1)</num><intro><ref href="#section-89">This section</ref> applies if a person contravenes or fails to comply with—</i

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-89-1"><num>(1)</num><intro><ref href="#section-89">This section</ref> applies if a person contravenes or fails to comply with—</intro><level class="para1" eId="section-89-1-a"><num>(a)</num><content><ref href

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-89-1-a"><num>(a)</num><content><ref href="#section-82">section 82</ref>,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-89-1-b"><num>(b)</num><content><ref href="#section-86">section 86</ref><ref href="#section-86-1">(1)</ref>,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-89-1-c"><num>(c)</num><content><ref href="#section-87">section 87</ref><ref href="#section-87-1">(1)</ref>, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-89-1-d"><num>(d)</num><content>any provision made by or under alcoholic products regulations.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-89-2"><num>(2)</num><content>The person’s conduct attracts a penalty under section 9 of FA 1994.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-89-3"><num>(3)</num><content>Any alcoholic products, articles (including packaging or equipment) or substances in the person's possession, used (or which may be used) for or in connection with an action to which the

<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="part-2-chapter-6"><num>Chapter 6</num><heading>Denatured alcohol</heading><section eId="section-90"><num>90</num><heading>Denatured alcohol</heading><subsection eId="section-90-1"><num>(1)</num><content>Alcohol duty is not cha

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-90"><num>90</num><heading>Denatured alcohol</heading><subsection eId="section-90-1"><num>(1)</num><content>Alcohol duty is not charged on denatured alcohol.</content></subsection><subsection eId="section-90-2"><num

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-90-1"><num>(1)</num><content>Alcohol duty is not charged on denatured alcohol.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-90-2"><num>(2)</num><content>“<term refersTo="#term-denatured-alcohol" eId="term-denatured-alcohol">Denatured alcohol</term>” means an alcoholic product which has been mixed with a substance, and in a manner, specif

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-90-3"><num>(3)</num><content>Provision made under <ref href="#section-90-2">subsection (2)</ref> may include provision specifying a substance, or a manner of mixing, by reference to particular circumstances or other

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-90-4"><num>(4)</num><intro>Where—</intro><level class="para1" eId="section-90-4-a"><num>(a)</num><content>alcohol duty is chargeable on alcoholic products, and</content></level><level class="para1" eId="s

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-90-4-a"><num>(a)</num><content>alcohol duty is chargeable on alcoholic products, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-90-4-b"><num>(b)</num><content>the Commissioners are satisfied that the alcoholic products are to be converted into denatured alcohol before the duty is required to be paid,</content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-91"><num>91</num><heading>Licence to manufacture and deal wholesale in denatured alcohol</heading><subsection eId="section-91-1"><num>(1)</num><content>A person may not denature any alcoholic products, or deal wholesal

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-91-1"><num>(1)</num><content>A person may not denature any alcoholic products, or deal wholesale in denatured alcohol, unless the person holds an excise licence as a denaturer under <ref href="#section-91">this sect

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-91-2"><num>(2)</num><intro>For the purposes of <ref href="#section-91">this section</ref>, a person deals wholesale in denatured alcohol if the person sells, at any one time to any one person—</intro><level clas

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-91-2-a"><num>(a)</num><content>a quantity of at least 20 litres of denatured alcohol, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-91-2-b"><num>(b)</num><content>a smaller quantity, specified by or under regulations made by the Commissioners, of denatured alcohol.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-91-3"><num>(3)</num><content>The Commissioners may, at any time, revoke or suspend an excise licence under <ref href="#section-91">this section</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-91-4"><num>(4)</num><content>An application for an excise licence as a denaturer must be in the form and manner, and contain the information, specified by the Commissioners in a notice published by them.</conten

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-92"><num>92</num><heading>Regulations relating to denatured alcohol</heading><subsection eId="section-92-1"><num>(1)</num><intro>The Commissioners may, with a view to the protection of the revenue, by regulations make

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-92-1"><num>(1)</num><intro>The Commissioners may, with a view to the protection of the revenue, by regulations make provision—</intro><level class="para1" eId="section-92-1-a"><num>(a)</num><content>regulatin

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-1-a"><num>(a)</num><content>regulating the denaturing of alcoholic products;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-1-b"><num>(b)</num><content>regulating the supply, storage, removal, sale, delivery, receipt, use, export or shipment as stores of denatured alcohol;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-1-c"><num>(c)</num><content>permitting alcoholic products to be denatured in a warehouse;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-1-d"><num>(d)</num><content>permitting dealing wholesale (within the meaning of <ref href="#section-91">section 91</ref>) in denatured alcohol of a specified description, in specified circumstances, with

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-1-e"><num>(e)</num><content>regulating the import, receipt, removal, storage and use of alcoholic products for denaturing;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-1-f"><num>(f)</num><content>regulating the storage and removal of substances to be used in denaturing alcoholic products;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-1-g"><num>(g)</num><content>about the manner in which account is to be kept of stocks of denatured alcohol in the possession of persons licensed as denaturers under <ref href="#section-91">section 91</re

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-92-2"><num>(2)</num><intro>Regulations under <ref href="#section-92">this section</ref> may, in particular, include provision—</intro><level class="para1" eId="section-92-2-a"><num>(a)</num><content>for appli

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-2-a"><num>(a)</num><content>for applications and other communications with the Commissioners to be made electronically;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-2-b"><num>(b)</num><content>requiring persons licensed as denaturers under <ref href="#section-91">section 91</ref> and retailers of denatured alcohol to keep, and make available for inspection, specifie

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-2-c"><num>(c)</num><content>conferring powers on an officer of Revenue and Customs to inspect, copy or remove for a reasonable period those records;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-92-2-d"><num>(d)</num><content>for the imposition under the regulations of conditions and restrictions (which may include a requirement to give a guarantee or other security).</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-92-3"><num>(3)</num><content>In this section, “<term refersTo="#term-specified" eId="term-specified">specified</term>” means specified by or under regulations under this section.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-93"><num>93</num><heading>Penalties and forfeiture</heading><subsection eId="section-93-1"><num>(1)</num><intro><ref href="#section-93">This section</ref> applies if a person—</intro><level class="para1" eId="secti

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-93-1"><num>(1)</num><intro><ref href="#section-93">This section</ref> applies if a person—</intro><level class="para1" eId="section-93-1-a"><num>(a)</num><content>fails to comply with <ref href="#section-91">

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-1-a"><num>(a)</num><content>fails to comply with <ref href="#section-91">section 91</ref><ref href="#section-91-1">(1)</ref> (denaturing alcoholic products, or dealing wholesale in denatured alcohol, oth

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-93-1-b"><num>(b)</num><content>contravenes or fails to comply with any provision made by or under regulations under <ref href="#section-92">section 92</ref>.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-93-2"><num>(2)</num><content>Conduct mentioned in <ref href="#section-93-1">subsection (1)</ref><ref href="#section-93-1-a">(a)</ref> or <ref href="#section-93-1-b">(b)</ref> attracts a penalty under section 9 of FA

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-93-3"><num>(3)</num><content>Any alcoholic product or denatured alcohol, article (including packaging or equipment) or substance in the person’s possession, used (or which may be used) for or in connection with an a

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-94"><num>94</num><heading>Defaults in respect of denatured alcohol: possession of excess alcoholic products</heading><subsection eId="section-94-1"><num>(1)</num><intro><ref href="#section-94">This section</ref> applie

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-94-1"><num>(1)</num><intro><ref href="#section-94">This section</ref> applies if, in relation to a person who holds an excise licence under <ref href="#section-91">section 91</ref> (the “denaturer”), at a time when

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-1-a"><num>(a)</num><content>there is a difference between the actual amount and the proper amount, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-1-b"><num>(b)</num><intro>either—</intro><level class="para2" eId="section-94-1-b-i"><num>(i)</num><content>where the actual amount exceeds the proper amount, the amount of the excess is more than

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-94-1-b-i"><num>(i)</num><content>where the actual amount exceeds the proper amount, the amount of the excess is more than 1% of the permitted amount, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-94-1-b-ii"><num>(ii)</num><content>where the proper amount exceeds the actual amount, the amount of the excess is more than 2% of the permitted amount.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-94-2"><num>(2)</num><intro>For the purposes of <ref href="#section-94-1">subsection (1)</ref>—</intro><level class="para1" eId="section-94-2-a"><num>(a)</num><content>the “actual amount” is the quantity of al

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-2-a"><num>(a)</num><content>the “actual amount” is the quantity of alcoholic products of any description in the denatured alcohol in the denaturer’s possession;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-2-b"><num>(b)</num><content>the “proper amount” is the quantity of alcoholic products of the same description which, according to any accounts that are required to be kept by or under any regulations und

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-94-3"><num>(3)</num><intro>Where there is a difference between the actual amount and the proper amount, in relation to alcoholic products of a particular description, the “permitted amount” is the aggregate of—<

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-3-a"><num>(a)</num><content>the quantity of alcoholic products of that description when an account was last taken, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-3-b"><num>(b)</num><content>the quantity of alcoholic products of that description that have since been lawfully added to the denaturer’s stock.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-94-4"><num>(4)</num><content>In a case within <ref href="#section-94-1">subsection (1)</ref><ref href="#section-94-1-b">(b)</ref><ref href="#section-94-1-b-i">(i)</ref>, the relevant amount of any alcoholic products

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-94-5"><num>(5)</num><content>The “<term refersTo="#term-relevant-amount" eId="term-relevant-amount">relevant amount</term>” for the purposes of <ref href="#section-94-4">subsection (4)</ref> is the amount correspond

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-94-6"><num>(6)</num><intro>In a case within <ref href="#section-94-1">subsection (1)</ref><ref href="#section-94-1-b">(b)</ref><ref href="#section-94-1-b-ii">(ii)</ref>, the denaturer must, on demand by the Commissi

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-6-a"><num>(a)</num><content>on the amount of alcoholic products (of the same description) equal to the amount of the difference, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-94-6-b"><num>(b)</num><content>if the Commissioners specify a smaller amount of alcoholic products (of the same description) in the demand, on that amount.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-94-7"><num>(7)</num><content>A demand made for the purposes of <ref href="#section-94">this section</ref> is to be combined, as if there had been a default of a kind mentioned in section 12 of FA 1994 (assessments t

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-95"><num>95</num><heading>Defaults in respect of denatured alcohol: supply and use of denatured alcohol</heading><subsection eId="section-95-1"><num>(1)</num><content><ref href="#section-95">This section</ref> applies

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-95-1"><num>(1)</num><content><ref href="#section-95">This section</ref> applies if a person, in contravention of regulations under <ref href="#section-92">section 92</ref>, uses or supplies denatured alcohol contain

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-95-2"><num>(2)</num><intro>The person must, on demand by the Commissioners, pay alcohol duty—</intro><level class="para1" eId="section-95-2-a"><num>(a)</num><content>on the amount of alcoholic products contai

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-95-2-a"><num>(a)</num><content>on the amount of alcoholic products contained, at the time of supply or use, in the denatured alcohol, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-95-2-b"><num>(b)</num><content>if the Commissioners specify a smaller amount of alcoholic products (of the same description) in the demand, on that amount.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-95-3"><num>(3)</num><intro>For the purposes of <ref href="#section-95">this section</ref>, a supply of denatured alcohol to a person who—</intro><level class="para1" eId="section-95-3-a"><num>(a)</num><content><

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-95-3-a"><num>(a)</num><content>by reason of regulations under <ref href="#section-92">section 92</ref> is prohibited from receiving it unless authorised to do so by or under the regulations, but</conten

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-95-3-b"><num>(b)</num><content>is not so authorised,</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-95-4"><num>(4)</num><content>A demand made for the purposes of <ref href="#section-95">this section</ref> is to be combined, as if there had been a default of a kind mentioned in section 12 of FA 1994 (assessments t

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-96"><num>96</num><heading>Inspection of premises etc</heading><subsection eId="section-96-1"><num>(1)</num><intro>An officer of Revenue and Customs may, at any reasonable time—</intro><level class="para1" eId="sect

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-96-1"><num>(1)</num><intro>An officer of Revenue and Customs may, at any reasonable time—</intro><level class="para1" eId="section-96-1-a"><num>(a)</num><content>enter and inspect the premises of a person aut

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-96-1-a"><num>(a)</num><content>enter and inspect the premises of a person authorised by regulations under <ref href="#section-92">section 92</ref> to receive denatured alcohol,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-96-1-b"><num>(b)</num><content>inspect and examine any denatured alcohol on the premises, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-96-1-c"><num>(c)</num><content>take samples of any denatured alcohol or of any goods containing denatured alcohol (paying a reasonable price for each sample).</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-96-2"><num>(2)</num><content><ref href="#section-96-1">Subsection (1)</ref> does not affect any other power conferred by the customs and excise Acts.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-97"><num>97</num><heading>Prohibition of use of denatured alcohol etc as beverage or medicine</heading><subsection eId="section-97-1"><num>(1)</num><intro>It is an offence for a person—</intro><level class="para1"

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-97-1"><num>(1)</num><intro>It is an offence for a person—</intro><level class="para1" eId="section-97-1-a"><num>(a)</num><content>to prepare, or attempt to prepare, denatured alcohol for use as a beverage or

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-97-1-a"><num>(a)</num><content>to prepare, or attempt to prepare, denatured alcohol for use as a beverage or as a mixture with a beverage;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-97-1-b"><num>(b)</num><content>to sell denatured alcohol (whether or not prepared as described in <ref href="#section-97-1-a">paragraph (a)</ref>) as a beverage or mixed with a beverage;</content></leve

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-97-1-c"><num>(c)</num><content>to use any denatured alcohol or a derivative of it in the preparation of any article capable of being used as a beverage;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-97-1-d"><num>(d)</num><content>to sell or possess any article capable of being used as described in <ref href="#section-97-1-c">paragraph (c)</ref>, in the preparation of which denatured alcohol or any deri

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-97-1-e"><num>(e)</num><intro>except as permitted by the Commissioners and in accordance with any conditions imposed by them—</intro><level class="para2" eId="section-97-1-e-i"><num>(i)</num><content>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-97-1-e-i"><num>(i)</num><content>to purify, or attempt to purify, denatured alcohol, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-97-1-e-ii"><num>(ii)</num><content>after denatured alcohol has once been used, to attempt to recover the spirit or alcohol contained in it by distillation, condensation or in any other manner.</content>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-97-2"><num>(2)</num><content><ref href="#section-97-1">Subsection (1)</ref> is subject to <ref href="#section-97-5">subsections (5)</ref> and <ref href="#section-97-6">(6)</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-97-3"><num>(3)</num><content>A person who commits an offence under <ref href="#section-97">this section</ref> is liable on summary conviction to a penalty not exceeding level 3 on the standard scale.</content></

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-97-4"><num>(4)</num><content>Any denatured alcohol, or any article (including packaging or equipment), in respect of which an offence under <ref href="#section-97">this section</ref> is committed is liable to forfei

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-97-5"><num>(5)</num><intro>No offence is committed under <ref href="#section-97">this section</ref> where a person uses denatured alcohol or any derivative of it—</intro><level class="para1" eId="section-97-5-a"

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-97-5-a"><num>(a)</num><content>in the preparation for use as a medical article (as defined in <ref href="#section-76">section 76</ref>),</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-97-5-b"><num>(b)</num><content>in the making of anything sold or supplied in accordance with regulations made by the Commissioners under <ref href="#section-92">section 92</ref>, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-97-5-c"><num>(c)</num><content>in art or manufacture.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-97-6"><num>(6)</num><intro>No offence is committed under <ref href="#section-97">this section</ref> where a person sells or possesses anything that—</intro><level class="para1" eId="section-97-6-a"><num>(a)</num

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-97-6-a"><num>(a)</num><content>is permitted to be prepared or made, by reference to <ref href="#section-97-5-a">paragraph (a)</ref> or <ref href="#section-97-5-b">(b)</ref> of <ref href="#section-97-5">subs

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-97-6-b"><num>(b)</num><content>is sold or possessed for that use.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-97-7"><num>(7)</num><intro>In <ref href="#section-97">this section</ref>, references to denatured alcohol include references to—</intro><level class="para1" eId="section-97-7-a"><num>(a)</num><content>methano

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-97-7-a"><num>(a)</num><content>methanol, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-97-7-b"><num>(b)</num><content>any mixture containing denatured alcohol or methanol.</content></level>

<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="part-2-chapter-7"><num>Chapter 7</num><heading>Wholesaling of controlled alcoholic products</heading><section eId="sect

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-98"><num>98</num><heading>Definitions</heading><subsection eId="section-98-1"><num>(1)</num><content><ref href="#section-98">This section</ref> defines certain expressions used in <ref href="#part-2">this Chapter</ref>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-98-1"><num>(1)</num><content><ref href="#section-98">This section</ref> defines certain expressions used in <ref href="#part-2">this Chapter</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-98-2"><num>(2)</num><intro>A sale is of “controlled alcoholic products” if—</intro><level class="para1" eId="section-98-2-a"><num>(a)</num><content>it is a sale of alcoholic products on which alcohol duty is

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-98-2-a"><num>(a)</num><content>it is a sale of alcoholic products on which alcohol duty is charged under <ref href="#part-2">this Part</ref> at a rate greater than nil, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-98-2-b"><num>(b)</num><content>the excise duty point for the alcoholic products falls at or before the time of the sale.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-98-3"><num>(3)</num><intro>Controlled alcoholic products are sold “wholesale” if—</intro><level class="para1" eId="section-98-3-a"><num>(a)</num><content>the sale is of any quantity of the alcoholic products,

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-98-3-a"><num>(a)</num><content>the sale is of any quantity of the alcoholic products,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-98-3-b"><num>(b)</num><content>the seller is carrying on a trade or business and the sale is made in the course of that trade or business,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-98-3-c"><num>(c)</num><content>the sale is to a buyer carrying on a trade or business, for sale or supply in the course of that trade or business, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-98-3-d"><num>(d)</num><content>the sale is not an incidental sale, a group sale or an excluded sale,</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-98-4"><num>(4)</num><intro>A sale is an “incidental sale” if—</intro><level class="para1" eId="section-98-4-a"><num>(a)</num><content>the seller makes authorised retail sales of alcoholic products of any desc

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-98-4-a"><num>(a)</num><content>the seller makes authorised retail sales of alcoholic products of any description, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-98-4-b"><num>(b)</num><content>the sale is incidental to those sales.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-98-5"><num>(5)</num><content>A sale is an “authorised retail sale” if it is made by retail under and in accordance with a licence or other authorisation under an enactment regulating the sale and supply of alcohol.<

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-98-6"><num>(6)</num><content>A sale is a “group sale” if the seller and the buyer are both bodies corporate which are members of the same group (see <ref href="#section-106">section 106</ref>).</content></subsec

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-98-7"><num>(7)</num><content>A sale is an “excluded sale” if it is of a description specified by or under regulations made by the Commissioners.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-98-8"><num>(8)</num><intro>“<term refersTo="#term-controlled-activity" eId="term-controlled-activity">Controlled activity</term>” means—</intro><level class="para1" eId="section-98-8-a"><num>(a)</num><content><p

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-98-8-a"><num>(a)</num><content>selling controlled alcoholic products wholesale,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-98-8-b"><num>(b)</num><content>offering or exposing controlled alcoholic products for sale in circumstances in which the sale (if made) would be a wholesale sale, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-98-8-c"><num>(c)</num><content>arranging in the course of a trade or business for controlled alcoholic products to be sold wholesale, or offered or exposed for sale in circumstances in which the sale (if ma

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-98-9"><num>(9)</num><content>“<term refersTo="#term-uk-person" eId="term-uk-person">UK person</term>” means a person who is UK-established for the purposes of value added tax (see paragraph 1(10) of Schedule 1 to VA

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-98-10"><num>(10)</num><intro>“<term refersTo="#term-enactment" eId="term-enactment">Enactment</term>” includes an enactment contained in—</intro><level class="para1" eId="section-98-10-a"><num>(a)</num><content>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-98-10-a"><num>(a)</num><content>an Act of the Scottish Parliament;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-98-10-b"><num>(b)</num><content>an Act or Measure of Senedd Cymru;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-98-10-c"><num>(c)</num><content>Northern Ireland legislation.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-98-11"><num>(11)</num><content>References in <ref href="#part-2">this Chapter</ref> to the “alcohol wholesaling provisions” are references to <ref href="#section-98">this section</ref> and <ref href="#section-

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-99"><num>99</num><heading>Further provision relating to definitions</heading><subsection eId="section-99-1"><num>(1)</num><intro>The Commissioners may by regulations make provision as to the cases in which sales are, o

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-99-1"><num>(1)</num><intro>The Commissioners may by regulations make provision as to the cases in which sales are, or are not, to be treated for the purposes of <ref href="#part-2">this Chapter</ref> as—</intro>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-99-1-a"><num>(a)</num><content>wholesale sales,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-99-1-b"><num>(b)</num><content>sales of controlled alcoholic products,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-99-1-c"><num>(c)</num><content>incidental sales,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-99-1-d"><num>(d)</num><content>authorised retail sales, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-99-1-e"><num>(e)</num><content>group sales.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-99-2"><num>(2)</num><content>The Commissioners may by regulations make provision as to the cases in which a person is, or is not, to be treated for the purposes of <ref href="#part-2">this Chapter</ref> as carrying

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-100"><num>100</num><heading>Approval to carry on controlled activity</heading><subsection eId="section-100-1"><num>(1)</num><content>A UK person may not carry on a controlled activity otherwise than in accordance with

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-100-1"><num>(1)</num><content>A UK person may not carry on a controlled activity otherwise than in accordance with an approval given by the Commissioners under <ref href="#section-100">this section</ref>.</conte

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-100-2"><num>(2)</num><content>The Commissioners may approve a person under <ref href="#section-100">this section</ref> to carry on a controlled activity only if they are satisfied that the person is a fit and proper

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-100-3"><num>(3)</num><content>The Commissioners may approve a person under <ref href="#section-100">this section</ref> to carry on a controlled activity for such period as they think fit.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-100-4"><num>(4)</num><intro>An approval may be given subject to the conditions or restrictions (if any)—</intro><level class="para1" eId="section-100-4-a"><num>(a)</num><content>specified by the Commissioners

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-100-4-a"><num>(a)</num><content>specified by the Commissioners in a notice published by them;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-100-4-b"><num>(b)</num><content>specified by or under regulations made by them;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-100-4-c"><num>(c)</num><content>imposed by them in a particular case.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-100-5"><num>(5)</num><content>The conditions or restrictions may include conditions or restrictions requiring the controlled activity to be carried on only at or from premises specified or approved by the Commission

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-100-6"><num>(6)</num><content>The Commissioners may at any time revoke or vary the terms of an approval under <ref href="#section-100">this section</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-100-7"><num>(7)</num><content>In <ref href="#part-2">this Chapter</ref> “<term refersTo="#term-approved-wholesaler" eId="term-approved-wholesaler">approved wholesaler</term>” means a person approved under <ref href=

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-101"><num>101</num><heading>The register of approved wholesalers</heading><subsection eId="section-101-1"><num>(1)</num><content>The Commissioners must maintain a register of approved wholesalers.</content></subsec

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-101-1"><num>(1)</num><content>The Commissioners must maintain a register of approved wholesalers.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-101-2"><num>(2)</num><content>The register is to contain such information relating to approved wholesalers as the Commissioners consider appropriate.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-101-3"><num>(3)</num><content>The Commissioners may make publicly available such information contained in the register as they consider necessary to enable those who deal with a person who carries on a controlled ac

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-101-4"><num>(4)</num><content>The information may be made available by such means as the Commissioners consider appropriate.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-102"><num>102</num><heading>Regulations relating to approval, registration and controlled activities</heading><subsection eId="section-102-1"><num>(1)</num><intro>The Commissioners may by regulations make provision—</p

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-102-1"><num>(1)</num><intro>The Commissioners may by regulations make provision—</intro><level class="para1" eId="section-102-1-a"><num>(a)</num><content>regulating the approval and registration of persons un

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-102-1-a"><num>(a)</num><content>regulating the approval and registration of persons under the alcohol wholesaling provisions,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-102-1-b"><num>(b)</num><content>regulating the variation or revocation of any such approval or registration or of any condition or restriction to which such an approval or registration is subject,</cont

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-102-1-c"><num>(c)</num><content>about the register maintained under <ref href="#section-101">section 101</ref>,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-102-1-d"><num>(d)</num><content>regulating the carrying on of controlled activities, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-102-1-e"><num>(e)</num><content>imposing obligations on approved wholesalers.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-102-2"><num>(2)</num><intro>The regulations may, in particular, make provision—</intro><level class="para1" eId="section-102-2-a"><num>(a)</num><content>requiring applications, and other communications with t

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-102-2-a"><num>(a)</num><content>requiring applications, and other communications with the Commissioners, to be made electronically;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-102-2-b"><num>(b)</num><intro>as to the procedure for the approval and registration of bodies corporate which are members of the same group and for members of such a group to be jointly and severally liable

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-102-2-b-i"><num>(i)</num><content>the regulations, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-102-2-b-ii"><num>(ii)</num><content><ref href="#schedule-10">Schedule 10</ref>;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-102-2-c"><num>(c)</num><content>requiring approved wholesalers to keep and make available for inspection such records relating to controlled activities as may be specified by or under the regulations;</

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-102-2-d"><num>(d)</num><content>conferring powers on an officer of Revenue and Customs to inspect, copy or remove for a reasonable period those records;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-102-2-e"><num>(e)</num><intro>imposing a penalty of an amount specified by the regulations (which must not exceed £1,000) for a contravention of—</intro><level class="para2" eId="section-102-2-e-i"><num

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-102-2-e-i"><num>(i)</num><content>the regulations, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-102-2-e-ii"><num>(ii)</num><content>any condition or restriction imposed under the alcohol wholesaling provisions;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-102-2-f"><num>(f)</num><content>for the assessment and recovery of such a penalty;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-102-2-g"><num>(g)</num><intro>for alcoholic products (whether or not charged with any duty and whether or not that duty has been paid) to be subject to forfeiture for a contravention of—</intro><level c

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-102-2-g-i"><num>(i)</num><content>the alcohol wholesaling provisions or the regulations made under <ref href="#section-102">this section</ref>, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-102-2-g-ii"><num>(ii)</num><content>any condition or restriction imposed under the alcohol wholesaling provisions.</content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-103"><num>103</num><heading>Restriction on buying controlled alcoholic products wholesale</heading><subsection eId="section-103-1"><num>(1)</num><intro>A person may not—</intro><level class="para1" eId="section-103

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-103-1"><num>(1)</num><intro>A person may not—</intro><level class="para1" eId="section-103-1-a"><num>(a)</num><content>buy controlled alcoholic products wholesale from a UK person, unless the person is an app

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-103-1-a"><num>(a)</num><content>buy controlled alcoholic products wholesale from a UK person, unless the person is an approved wholesaler in relation to the sale, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-103-1-b"><num>(b)</num><content>buy relevant alcoholic products from an Isle of Man person, unless the person is an Isle of Man approved wholesaler.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-103-2"><num>(2)</num><intro>In <ref href="#section-103">this section</ref> and in <ref href="#section-104">section 104</ref><ref href="#section-104-4">(4)</ref>—</intro><level class="para1" eId="section-103-2-a"

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-103-2-a"><num>(a)</num><content>“<term refersTo="#term-isle-of-man-person" eId="term-isle-of-man-person">Isle of Man person</term>” means a person who is established in the Isle of Man for the purposes of v

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-103-2-b"><num>(b)</num><content>“<term refersTo="#term-isle-of-man-approved-wholesaler" eId="term-isle-of-man-approved-wholesaler">Isle of Man approved wholesaler</term>” means an Isle of Man person who is

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-103-2-c"><num>(c)</num><content>“<term refersTo="#term-relevant-alcoholic-products" eId="term-relevant-alcoholic-products">relevant alcoholic products</term>” means alcoholic products which, if they had bee

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-104"><num>104</num><heading>Offences</heading><subsection eId="section-104-1"><num>(1)</num><intro>A person who contravenes <ref href="#section-100">section 100</ref><ref href="#section-100-1">(1)</ref> by selling cont

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-104-1"><num>(1)</num><intro>A person who contravenes <ref href="#section-100">section 100</ref><ref href="#section-100-1">(1)</ref> by selling controlled alcoholic products wholesale commits an offence if the person

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-104-1-a"><num>(a)</num><content>the buyer is carrying on a trade or business, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-104-1-b"><num>(b)</num><content>the alcoholic products are for sale or supply in the course of that trade or business.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-104-2"><num>(2)</num><content>A person who contravenes <ref href="#section-100">section 100</ref><ref href="#section-100-1">(1)</ref> by offering or exposing controlled alcoholic products for sale in circumstances i

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-104-3"><num>(3)</num><content>A person who contravenes <ref href="#section-100">section 100</ref><ref href="#section-100-1">(1)</ref> by arranging in the course of a trade or business for controlled alcoholic produc

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-104-4"><num>(4)</num><intro>A person who contravenes <ref href="#section-103">section 103</ref> commits an offence if the person knows or has reasonable grounds to suspect that—</intro><level class="para1" eId="

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-104-4-a"><num>(a)</num><content>the UK person from whom the controlled alcoholic products are bought is not an approved wholesaler in relation to the sale, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-104-4-b"><num>(b)</num><content>the Isle of Man person from whom the relevant alcoholic products are bought is not an Isle of Man approved wholesaler in relation to the sale.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-104-5"><num>(5)</num><intro>A person who commits an offence under <ref href="#section-104">this section</ref> is liable on summary conviction—</intro><level class="para1" eId="section-104-5-a"><num>(a)</num><int

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-104-5-a"><num>(a)</num><intro>in England and Wales to—</intro><level class="para2" eId="section-104-5-a-i"><num>(i)</num><content>imprisonment for a term not exceeding the general limit in a magistra

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-104-5-a-i"><num>(i)</num><content>imprisonment for a term not exceeding the general limit in a magistrates’ court,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-104-5-b"><num>(b)</num><intro>in Scotland to—</intro><level class="para2" eId="section-104-5-b-i"><num>(i)</num><content>imprisonment for a term not exceeding 12 months,</content></level><level c

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-104-5-b-i"><num>(i)</num><content>imprisonment for a term not exceeding 12 months,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-104-5-b-ii"><num>(ii)</num><content>a fine not exceeding the statutory maximum, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-104-5-c"><num>(c)</num><intro>in Northern Ireland to—</intro><level class="para2" eId="section-104-5-c-i"><num>(i)</num><content>imprisonment for a term not exceeding 6 months,</content></level><

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-104-5-c-i"><num>(i)</num><content>imprisonment for a term not exceeding 6 months,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-104-5-c-ii"><num>(ii)</num><content>a fine not exceeding the statutory maximum, or</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-104-6"><num>(6)</num><intro>A person who commits an offence under <ref href="#section-104">this section</ref> is liable on conviction on indictment to—</intro><level class="para1" eId="section-104-6-a"><num>(a)<

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-104-6-a"><num>(a)</num><content>imprisonment for a period not exceeding 7 years,</content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-105"><num>105</num><heading>Penalties</heading><content><ref href="#schedule-10">Schedule 10</ref> contains provision about penalties for contraventions of the alcohol wholesaling provisions.</content></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-106"><num>106</num><heading>Groups</heading><subsection eId="section-106-1"><num>(1)</num><intro>Two or more bodies corporate are members of a group for the purposes of the alcohol wholesaling provisions if each is est

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-106-1"><num>(1)</num><intro>Two or more bodies corporate are members of a group for the purposes of the alcohol wholesaling provisions if each is established or has a fixed establishment in the United Kingdom and—</

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-106-1-a"><num>(a)</num><content>one of them controls each of the others,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-106-1-b"><num>(b)</num><content>one person (whether a body corporate or an individual) controls all of them, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-106-1-c"><num>(c)</num><content>two or more individuals carrying on a business in partnership control all of them.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-106-2"><num>(2)</num><intro>For the purposes of <ref href="#section-106">this section</ref>, a body corporate is to be taken to control another body corporate if—</intro><level class="para1" eId="section-106-2-a

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-106-2-a"><num>(a)</num><content>it is empowered by or under an enactment to control that body’s activities, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-106-2-b"><num>(b)</num><content>it is that body’s holding company within the meaning of section 1159 of, and Schedule 6 to, the Companies Act 2006.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-106-3"><num>(3)</num><intro>For the purposes of <ref href="#section-106">this section</ref>—</intro><level class="para1" eId="section-106-3-a"><num>(a)</num><content>an individual or individuals are to be tak

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-106-3-a"><num>(a)</num><content>an individual or individuals are to be taken to control a body corporate if the individual or individuals (were the individual or individuals a company) would be that body’s

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-106-3-b"><num>(b)</num><content>a body corporate is established or has a fixed establishment in the United Kingdom if it is so established or has such an establishment for the purposes of value added tax.</

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-107"><num>107</num><heading>Index of defined expressions: <ref href="#part-2-chapter-7">Chapter 7</ref></headin

<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="part-2-chapter-8"><num>Chapter 8</num><heading>Supplementary</heading><section eId="section-108"><num>10

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-108"><num>108</num><heading>Reviews and appeals</heading><content><ref href="#schedule-11">Schedule 11</ref> makes provision about reviews and appeals.</content></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-109"><num>109</num><heading>Forfeiture: supplementary provision</heading><subsection eId="section-109-1"><num>(1)</num><content>An officer of Revenue and Customs may destroy, break up or spill anything seized as liable

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-109-1"><num>(1)</num><content>An officer of Revenue and Customs may destroy, break up or spill anything seized as liable to forfeiture under any provision of this Part.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-109-2"><num>(2)</num><content>Subsection (1) does not affect any other provision of, or power conferred by, the customs and excise Acts.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-110"><num>110</num><heading>Removal of goods: application of section 95 of CEMA 1979</heading><s

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-110-1"><num>(1)</num><content>Section 95 of CEMA 1979 (deficiency in goods occurring in course of removal from warehouse without payment of duty) is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-110-2"><num>(2)</num><content><mod>After subsection (1) insert—<quotedStructure startQuote

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-110-3"><num>(3)</num><content><mod>In subsection (2), in the words before paragraph (a), after “subsection (1)” insert <quotedText>“, (1A) or (1B)”</quotedText>.</mod></content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-111"><num>111</num><heading>Drawback</heading><subsection eId="section-111-1"><num>(1)</num><content><ref href="#section-111">This section</ref> applies where drawback of alcohol duty is allowable, under regulations ma

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-111-1"><num>(1)</num><content><ref href="#section-111">This section</ref> applies where drawback of alcohol duty is allowable, under regulations made under section 60A of CEMA 1979 (power to make regulations about s

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-111-2"><num>(2)</num><content>Subject to the conditions (if any) that the Commissioners impose, drawback of alcohol duty may be set against any amount to which the producer is chargeable in respect of alcohol duty (

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-112"><num>112</num><heading>Duty stamps</heading><content><ref href="#schedule-12">Schedule 12</ref> makes provision about duty stamps.</content></section>

<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="part-2-chapter-9"><num>Chapter 9</num><heading>repeals, further amendments and transitional provisions</heading><hcontainer name="crossheading" ukl:Name="Pblock" eI

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-2-chapter-9-crossheading-repeals-and-further-amendments"><heading>Repeals and further amendments</heading><section eId

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-113"><num>113</num><heading>Repeals</heading><subsection eId="section-113-1"><num>(1)</num><content>The Alcoholic Liquor Duties Act 1979 is repealed.</content></subsection><subsection eId="section-113-2"><num>(2)</

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-113-1"><num>(1)</num><content>The Alcoholic Liquor Duties Act 1979 is repealed.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-113-2"><num>(2)</num><intro>The following sections of FA 1995 are repealed—</intro><level class="para1" eId="section-113-2-a"><num>(a)</num><content>section 4 (alcoholic ingredients relief);</content></le

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-113-2-a"><num>(a)</num><content>section 4 (alcoholic ingredients relief);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-113-2-b"><num>(b)</num><content>section 5 (denatured alcohol).</content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-114"><num>114</num><heading>Minor and consequential amendments</heading><content><ref href="#schedule-13">Schedule 13</ref> makes minor and consequential amendments relating to <ref href="#part-2">this Part</ref>.<

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-2-chapter-9-crossheading-transitional-provision"><heading>Transitional provision</heading><section eId="section-115"><

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-115"><num>115</num><heading>Temporary provision: wine</heading><subsection eId="section-115-1"><num>(1)</num><content>Wine of an alcoholic strength of at least 11.5% but not exceeding 14.5% is treated, for the purposes

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-115-1"><num>(1)</num><content>Wine of an alcoholic strength of at least 11.5% but not exceeding 14.5% is treated, for the purposes of the charge to alcohol duty, as if it were of an alcoholic strength of 12.5%.<

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-115-2"><num>(2)</num><content>This section expires at the end of the period of 18 months beginning with the day on which <ref href="#section-48">section 48</ref> (rates) comes into force.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-116"><num>116</num><heading>Temporary provision: cider</heading><intro>Alcohol duty is not charged on cider which is produced—</intro><level class="para1" eId="section-116-a"><num>(a)</num><content>at a time bef

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-116-a"><num>(a)</num><content>at a time before <ref href="#section-82">section 82</ref> (approvals) comes into force, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-116-b"><num>(b)</num><content>by a person who, at that time, is exempt from the requirement to register under section 62 of ALDA 1979 by reason of an order made (or having effect as if made) under subsectio

<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="part-2-chapter-10"><num>Chapter 10</num><heading>Final provisions</heading><section eId="section-117"><num>117</num><he

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-117"><num>117</num><heading>Interpretation of <ref href="#part-2">this Part</ref></heading><subsection eId="sec

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-117-1"><num>(1)</num><content>The following Table sets out expressions defined or explained in <ref href=

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-117-2"><num>(2)</num><content><ref href="#part-2">This Part</ref> is to be construed as one with the Customs and Excise Acts 1979.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-117-3"><num>(3)</num><content>Any expression used in this Act or in any instrument made under this Act to which a meaning is given by any other Act included in the Customs and Excise Acts 1979 has, except where the

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-118"><num>118</num><heading>Regulations: supplementary and general</heading><subsection eId="section-118-1"><num>(1)</num><content>The Commissioners may by regulations make provision supplementing provision made in rel

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-118-1"><num>(1)</num><content>The Commissioners may by regulations make provision supplementing provision made in relation to alcohol duty by or under this Part or any other enactment.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-118-2"><num>(2)</num><content>A power to make regulations under any provision of <ref href="#part-2">this Part</ref> may be exercised so as to make different provision for different purposes or areas.</content><

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-118-3"><num>(3)</num><intro>A power to make regulations under any provision of <ref href="#part-2">this Part</ref> includes power to make—</intro><level class="para1" eId="section-118-3-a"><num>(a)</num><content

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-118-3-a"><num>(a)</num><content>provision which applies generally or only for specified cases or purposes;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-118-3-b"><num>(b)</num><content>provision conferring a discretion on a specified person to do anything under, or for the purposes of, the regulations;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-118-3-c"><num>(c)</num><content>provision by reference to things specified in a notice published in accordance with the regulations;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-118-3-d"><num>(d)</num><content>consequential, supplementary, incidental, transitional or saving provision.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-118-4"><num>(4)</num><content>Regulations under <ref href="#part-2">this Part</ref> are to be made by statutory instrument.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-118-5"><num>(5)</num><content>This section does not apply to regulations under <ref href="#section-120">section 120</ref>.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-119"><num>119</num><heading>Regulations: procedure</heading><subsection eId="section-119-1"><num>(1)</num><content>A statutory instrument containing any regulations made under <ref href="#section-46">section 46</ref><r

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-119-1"><num>(1)</num><content>A statutory instrument containing any regulations made under <ref href="#section-46">section 46</ref><ref href="#section-46-a">(a)</ref> or section <ref href="#section-51">51</ref><ref

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-119-2"><num>(2)</num><intro>The fact that a statutory instrument ceases to have effect as a result of <ref href="#section-119-1">subsection (1)</ref> does not affect—</intro><level class="para1" eId="section-119

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-119-2-a"><num>(a)</num><content>anything previously done under the instrument, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-119-2-b"><num>(b)</num><content>the making of a new statutory instrument.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-119-3"><num>(3)</num><intro>In calculating the period for the purposes of <ref href="#section-119-1">subsection (1)</ref>, no account is to be taken of any time—</intro><level class="para1" eId="section-119-3-a"

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-119-3-a"><num>(a)</num><content>during which Parliament is dissolved or prorogued, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-119-3-b"><num>(b)</num><content>during which the House of Commons is adjourned for more than 4 days.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-119-4"><num>(4)</num><content>A statutory instrument containing (whether alone or with other provision) any regulations made under <ref href="#schedule-12-paragraph-2">paragraph 2</ref> of <ref href="#schedule-12">S

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-119-5"><num>(5)</num><content>A statutory instrument containing regulations made under <ref href="#part-2">this Part</ref>, other than regulations in respect of which <ref href="#section-119-1">subsection (1)</ref>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-119-6"><num>(6)</num><content>A statutory instrument containing regulations to which <ref href="#section-119-1">subsection (1)</ref> applies may also include regulations relating to alcohol duty under any other prov

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-119-7"><num>(7)</num><content>Where regulations are included as mentioned in <ref href="#section-119-6">subsection (6)</ref>, the procedure applicable to the statutory instrument is the procedure mentioned in <ref h

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-119-8"><num>(8)</num><intro>If—</intro><level class="para1" eId="section-119-8-a"><num>(a)</num><content>a statutory instrument contains regulations under any provision of <ref href="#part-2">this Part</ref>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-119-8-a"><num>(a)</num><content>a statutory instrument contains regulations under any provision of <ref href="#part-2">this Part</ref> (other than regulations in respect of which <ref href="#section-119-1">

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-119-8-b"><num>(b)</num><content>the Parliamentary procedure applicable to a statutory instrument containing provision under the other provision does not require House of Commons approval,</content></lev

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-119-9"><num>(9)</num><content>For the purposes of <ref href="#section-119-6">subsection (6)</ref> and <ref href="#section-119-8">subsection (8)</ref> the Parliamentary procedure applicable to a statutory instrument

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-119-10"><num>(10)</num><content><ref href="#section-119">This section</ref> does not apply to regulations under <ref href="#section-120">section 120</ref>.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-120"><num>120</num><heading>Commencement</heading><subsection eId="section-120-1"><num>(1)</num><intro>The following provisions of <ref href="#part-2">this Part</ref> come into force on the day on which this Act is pas

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-120-1"><num>(1)</num><intro>The following provisions of <ref href="#part-2">this Part</ref> come into force on the day on which this Act is passed—</intro><level class="para1" eId="section-120-1-a"><num>(a)</num

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-120-1-a"><num>(a)</num><content><ref href="#part-2">this Chapter</ref>, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-120-1-b"><num>(b)</num><content>any other provision of <ref href="#part-2">this Part</ref> so far as it confers a power to make regulations.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-120-2"><num>(2)</num><content>The other provisions of <ref href="#part-2">this Part</ref> (so far as not brought into force by <ref href="#section-120-1">subsection (1)</ref>) come into force on such day or days as

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-120-3"><num>(3)</num><content>Different days may be appointed for different purposes or different areas.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-120-4"><num>(4)</num><content>The Commissioners may by regulations make consequential, supplementary, incidental, transitional or saving provision in connection with the coming into force of any provision of <ref hr

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-120-5"><num>(5)</num><intro>The power to make regulations under <ref href="#section-120-4">subsection (4)</ref>—</intro><level class="para1" eId="section-120-5-a"><num>(a)</num><content>may be exercised so as

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-120-5-a"><num>(a)</num><content>may be exercised so as to make different provision for different purposes or areas, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-120-5-b"><num>(b)</num><content>includes power to make provision of a kind described in <ref href="#section-118">section 118</ref><ref href="#section-118-3">(3)</ref><ref href="#section-118-3-a">(a)</

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-120-6"><num>(6)</num><content>Regulations under <ref href="#section-120">this section</ref> are to be made by statutory instrument.</content></subsection>

<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="part-3"><num>Part 3</num><heading>Multinational top-up tax</heading><chapter eId="part-3-chapter-1"><num>Ch

<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="part-3-chapter-1"><num>Chapter 1</num><heading>Introduction and charge</heading><section eId="section-121"><num>121</num><heading>Introduction to multinational top-

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-121"><num>121</num><heading>Introduction to multinational top-up tax</heading><subsection eId="section-121-1"><num>(1)</num><content>The purpose of <ref href="#part-3">this Part</ref> is to implement the provisions of

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-121-1"><num>(1)</num><content>The purpose of <ref href="#part-3">this Part</ref> is to implement the provisions of the Pillar Two rules relating to top-up tax under the IIR (within the meaning of those rules).</

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-121-2"><num>(2)</num><content>For that purpose, <ref href="#part-3">this Part</ref> makes provision for a tax payable in respect of members of multinational groups who are located in territories (outside the United

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-121-3"><num>(3)</num><content>The tax is to be known as “<term refersTo="#term-multinational-top-up-tax" eId="term-multinational-top-up-tax">multinational top-up tax</term>”.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-121-4"><num>(4)</num><content><ref href="#section-122">Sections 122</ref> to <ref href="#section-124">124</ref> set out the charge to multinational top-up tax and describe how it is to be calculated.</p

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-121-5"><num>(5)</num><intro><ref href="#part-3-chapter-2">Chapter 2</ref> of <ref href="#part-3">this Part</ref>—</intro><level class="para1" eId="section-121-5-a"><num>(a)</num><content>sets out the meaning

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-121-5-a"><num>(a)</num><content>sets out the meaning of “multinational group”;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-121-5-b"><num>(b)</num><content>describes who the members of such a group are;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-121-5-c"><num>(c)</num><content>identifies the ultimate parent of such a group;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-121-5-d"><num>(d)</num><content>limits the application of <ref href="#part-3">this Part</ref> to multinational groups with an annual revenue of at least 750 million euros and that have at least one member i

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-121-5-e"><num>(e)</num><content>sets out how to determine which members of a multinational group (“responsible members”) are responsible for paying the tax and which members they are responsible for.</c

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-122"><num>122</num><heading>Chargeable persons</heading><subsection eId="section-122-1"><num>(1)</num><intro>A person is chargeable to multinational top-up tax for an accounting period of a multinational group if the g

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-122-1"><num>(1)</num><intro>A person is chargeable to multinational top-up tax for an accounting period of a multinational group if the group is a qualifying multinational group in that period and—</intro><level

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-122-1-a"><num>(a)</num><intro>the person—</intro><level class="para2" eId="section-122-1-a-i"><num>(i)</num><content>is a responsible member of the multinational group at any time in that period,

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-122-1-a-i"><num>(i)</num><content>is a responsible member of the multinational group at any time in that period,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-122-1-a-ii"><num>(ii)</num><content>is a body corporate or a partnership that is not a body corporate, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-122-1-a-iii"><num>(iii)</num><content>is located in the United Kingdom, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-122-1-b"><num>(b)</num><content>the person is chargeable to tax in respect of an entity that is a responsible member of the multinational group at any time in that period.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-122-2"><num>(2)</num><intro>A person is chargeable to tax in respect of a responsible member of a multinational group if—</intro><level class="para1" eId="section-122-2-a"><num>(a)</num><content>the profits o

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-122-2-a"><num>(a)</num><content>the profits of the responsible member would, on the relevant assumptions, be the profits of the person for the purposes of income tax or corporation tax,</content></level

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-122-2-b"><num>(b)</num><content>the responsible member is located in the United Kingdom, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-122-2-c"><num>(c)</num><intro>the responsible member is not—</intro><level class="para2" eId="section-122-2-c-i"><num>(i)</num><content>a body corporate, or</content></level><level class="para2"

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-122-2-c-i"><num>(i)</num><content>a body corporate, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-122-2-c-ii"><num>(ii)</num><content>a partnership that is not a body corporate.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-122-3"><num>(3)</num><intro>The relevant assumptions are—</intro><level class="para1" eId="section-122-3-a"><num>(a)</num><content>that the responsible member has profits that are chargeable to income tax or

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-122-3-a"><num>(a)</num><content>that the responsible member has profits that are chargeable to income tax or corporation tax, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-122-3-b"><num>(b)</num><content>that the person is resident in the United Kingdom for the purposes of that tax.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-122-4"><num>(4)</num><intro>Where a partnership that is not a body corporate is chargeable to multinational top-up tax as a result of <ref href="#section-122-1">subsection (1)</ref><ref href="#section-122-1-a">(a)</

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-122-4-a"><num>(a)</num><content>the responsible partners are liable to pay the tax, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-122-4-b"><num>(b)</num><content>the liability of the responsible partners to do so is joint and several.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-122-5"><num>(5)</num><intro>The references in <ref href="#section-122-4">subsection (4)</ref> to “the responsible partners” are to each member of the partnership at any time during the accounting period who—</in

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-122-5-a"><num>(a)</num><content>in the case of a partner that is an entity, is located in the United Kingdom, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-122-5-b"><num>(b)</num><content>in the case of a partner that is an individual, is tax resident in the United Kingdom.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-122-6"><num>(6)</num><content>A partnership is to be regarded for the purposes of <ref href="#section-122">this section</ref> as continuing to be the same partnership regardless of a change in membership, provided t

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-122-7"><num>(7)</num><content>Where more than one person is chargeable to tax in relation to the same responsible member of a qualifying multinational group as a result of the application of <ref href="#section-122-

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-123"><num>123</num><heading>Amount charged by reference to “top-up amounts”</heading><content>Where a person is chargeable to multinational top-up tax fo

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-124"><num>124</num><heading>How to calculate top-up amounts and attribute them</heading><subsection eId="section-124-1"><num>(1)</num><intro>Generally, a member of a multinational group in a territory will have a top-u

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-124-1"><num>(1)</num><intro>Generally, a member of a multinational group in a territory will have a top-up amount for an accounting period if—</intro><level class="para1" eId="section-124-1-a"><num>(a)</num><con

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-124-1-a"><num>(a)</num><content>the effective tax rate of the members of the group in that territory for that period is less than 15%, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-124-1-b"><num>(b)</num><content>that member has profits for that period.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-124-2"><num>(2)</num><content><ref href="#part-3-chapter-3">Chapter 3</ref> of <ref href="#part-3">this Part</ref> sets out how to determine the effective tax rate of the members of a multinational group in a territ

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-124-3"><num>(3)</num><content><ref href="#part-3-chapter-4">Chapter 4</ref> of <ref href="#part-3">this Part</ref> sets out how to calculate the profits of members of a multinational group.</content></subsection

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-124-4"><num>(4)</num><intro><ref href="#part-3-chapter-5">Chapter 5</ref> of <ref href="#part-3">this Part</ref> sets out—</intro><level class="para1" eId="section-124-4-a"><num>(a)</num><content>which taxes

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-124-4-a"><num>(a)</num><content>which taxes (referred to in <ref href="#part-3">this Part</ref> as “covered taxes”) are to be considered in determining the effective tax rate of those members, and</cont

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-124-4-b"><num>(b)</num><content>how to determine the amount of covered taxes allocated to those members.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-124-5"><num>(5)</num><content><ref href="#part-3-chapter-6">Chapter 6</ref> of <ref href="#part-3">this Part</ref> sets out how to use the effective tax rate and profits of the members of a multinational group to de

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-124-6"><num>(6)</num><content><ref href="#part-3-chapter-7">Chapter 7</ref> of <ref href="#part-3">this Part</ref> sets out how to attribute those top-up amounts to a responsible member of the group.</content></

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-124-7"><num>(7)</num><intro><ref href="#part-3-chapter-8">Chapter 8</ref> of <ref href="#part-3">this Part</ref> contains provisions about—</intro><level class="para1" eId="section-124-7-a"><num>(a)</num><conten

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-124-7-a"><num>(a)</num><content>additional top-up amounts, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-124-7-b"><num>(b)</num><content>further adjustments that may need to be made (including provision about adjustments for restructuring of multinational groups).</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-124-8"><num>(8)</num><content><ref href="#part-3-chapter-9">Chapter 9</ref> of <ref href="#part-3">this Part</ref> sets out special provision for investment entities, joint venture groups and minority owned members

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-124-9"><num>(9)</num><content><ref href="#part-3-chapter-10">Chapter 10</ref> of <ref href="#part-3">this Part</ref> contains definitions and other provisions relevant to the calculations and other determinations to

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-125"><num>125</num><heading>Administration of multinational top-up tax</heading><intro><ref href="#schedule-14">Schedule 14</ref> makes provision for—</intro><level class="para1" eId="section-125-a"><num>(a)</num><

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-125-a"><num>(a)</num><content>information returns which must be made in respect of multinational groups,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-125-b"><num>(b)</num><content>assessments to multinational top-up tax,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-125-c"><num>(c)</num><content>penalties, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-125-d"><num>(d)</num><content>other administrative matters.</content></level>

<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="part-3-chapter-2"><num>Chapter 2</num><heading>Qualifying multinational groups and their members</headin

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-3-chapter-2-crossheading-multinational-groups"><heading>Multinational groups</heading><section eId="section-126"><num>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-126"><num>126</num><heading>Meaning of “multinational group” and “ultimate parent”</heading><subsection eId="section-126-1"><num>(1)</num><content>References in <ref href="#part-3">this Part</ref> to a multinational gr

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-126-1"><num>(1)</num><content>References in <ref href="#part-3">this Part</ref> to a multinational group are to a consolidated group where at least one of the members of that group is not located in the same territo

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-126-2"><num>(2)</num><intro>A “<term refersTo="#term-consolidated-group" eId="term-consolidated-group">consolidated group</term>” means the following entities (which are its members)—</intro><level class="para1"

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-126-2-a"><num>(a)</num><intro>an entity (the “ultimate parent”)—</intro><level class="para2" eId="section-126-2-a-i"><num>(i)</num><content>in which no other entity has a controlling interest, and</p

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-126-2-a-i"><num>(i)</num><content>in which no other entity has a controlling interest, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-126-2-a-ii"><num>(ii)</num><content>which has a controlling interest in other entities, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-126-2-b"><num>(b)</num><intro>the entities whose assets, liabilities, income, expenses and cash flows—</intro><level class="para2" eId="section-126-2-b-i"><num>(i)</num><content>are included in the c

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-126-2-b-i"><num>(i)</num><content>are included in the consolidated financial statements of the ultimate parent, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-126-2-b-ii"><num>(ii)</num><content>are not included in those statements only because of an exclusion on size or materiality grounds or on the grounds that the entity in question is held for sale.</cont

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-127"><num>127</num><heading>Excluded entities</heading><subsection eId="section-127-1"><num>(1)</num><content>For the purposes of <ref href="#part-3">this Part</ref>, excluded entities are to be treated as not being me

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-127-1"><num>(1)</num><content>For the purposes of <ref href="#part-3">this Part</ref>, excluded entities are to be treated as not being members of a multinational group.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-127-2"><num>(2)</num><intro>But <ref href="#section-127-1">subsection (1)</ref> does not apply for the purposes of the following provisions—</intro><level class="para1" eId="section-127-2-a"><num>(a)</num><conte

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-127-2-a"><num>(a)</num><content><ref href="#section-126">section 126</ref> (and accordingly an excluded entity that is the ultimate parent of multinational group remains the ultimate parent of that group),<

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-127-2-b"><num>(b)</num><content><ref href="#section-127">this section</ref>, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-127-2-c"><num>(c)</num><content><ref href="#section-129">section 129</ref> (determining whether a multinational group is qualifying).</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-127-3"><num>(3)</num><intro>The following are excluded entities—</intro><level class="para1" eId="section-127-3-a"><num>(a)</num><content>a governmental entity;</content></level><level class="para1" eId="

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-127-3-a"><num>(a)</num><content>a governmental entity;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-127-3-b"><num>(b)</num><content>an international organisation;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-127-3-c"><num>(c)</num><content>a pension fund;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-127-3-d"><num>(d)</num><content>a non-profit organisation;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-127-3-e"><num>(e)</num><content>a qualifying non-profit subsidiary;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-127-3-f"><num>(f)</num><content>a qualifying service entity;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-127-3-g"><num>(g)</num><content>a qualifying exempt income entity.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-127-4"><num>(4)</num><intro>The following are also excluded entities if they are the ultimate parent of a multinational group, or would be but for the fact they do not produce consolidated financial statements that

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-127-4-a"><num>(a)</num><content>an investment fund,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-127-4-c"><num>(c)</num><content>an overseas REIT equivalent.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-127-5"><num>(5)</num><intro>An entity is a qualifying non-profit subsidiary in an accounting period if—</intro><level class="para1" eId="section-127-5-a"><num>(a)</num><content>it is 100% owned by one or more

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-127-5-a"><num>(a)</num><content>it is 100% owned by one or more entities that are non-profit organisations,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-127-5-b"><num>(b)</num><content>the revenue (see <ref href="#section-129">section 129</ref><ref href="#section-129-5">(5)</ref>) of the multinational group of which the entity is a member would not exceed t

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-127-5-c"><num>(c)</num><content>the revenue of the group for that period that is ignored for the purposes of <ref href="#section-127-5-b">paragraph (b)</ref> is less than 25% of the total revenue of the gro

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-127-5-d"><num>(d)</num><content>no election under <ref href="#section-127-8">subsection (8)</ref> is in force in relation to the entity.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-127-6"><num>(6)</num><intro>An entity is a qualifying service entity if—</intro><level class="para1" eId="section-127-6-a"><num>(a)</num><content>it is 95% owned by one or more qualifying excluded entities,</

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-127-6-a"><num>(a)</num><content>it is 95% owned by one or more qualifying excluded entities,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-127-6-b"><num>(b)</num><intro>either—</intro><level class="para2" eId="section-127-6-b-i"><num>(i)</num><content>the entity only carries out activities that are ancillary to the activities of those o

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-127-6-b-i"><num>(i)</num><content>the entity only carries out activities that are ancillary to the activities of those owners, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-127-6-b-ii"><num>(ii)</num><content>all, or almost all, of its activities, ignoring activities falling within <ref href="#section-127-6-b-i">sub-paragraph (i)</ref>, consist of the holding of assets or the

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-127-6-c"><num>(c)</num><content>no election under <ref href="#section-127-8">subsection (8)</ref> is in force in relation to the entity.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-127-7"><num>(7)</num><intro>An entity is a qualifying exempt income entity if—</intro><level class="para1" eId="section-127-7-a"><num>(a)</num><content>it is 85% owned by one or more qualifying excluded entit

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-127-7-a"><num>(a)</num><content>it is 85% owned by one or more qualifying excluded entities,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-127-7-b"><num>(b)</num><content>almost all of the entity’s income is excluded dividends or excluded equity gains (or a mixture of both), and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-127-7-c"><num>(c)</num><content>no election under <ref href="#section-127-8">subsection (8)</ref> is in force in relation to the entity.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-127-8"><num>(8)</num><content>The filing member of a multinational group (see <ref href="#schedule-14-paragraph-2">paragraph 2</ref> of <ref href="#schedule-14">Schedule 14</ref>) may make an election that a member

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-127-9"><num>(9)</num><content><ref href="#schedule-15">Schedule 15</ref> makes provision about elections under <ref href="#part-3">this Part</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-127-10"><num>(10)</num><content>Paragraph <ref href="#schedule-15-paragraph-1">1</ref> of that Schedule (long term elections) applies to an election under <ref href="#section-127-8">subsection (8)</ref>.</conten

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-127-11"><num>(11)</num><content>For the purposes of <ref href="#section-127-5">subsection (5)</ref>, the reference to an entity being 100% owned by one or more entities that are non-profit organisations is to those

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-127-12"><num>(12)</num><intro>For the purposes of <ref href="#section-127-6">subsections (6)</ref> and <ref href="#section-127-7">(7)</ref>—</intro><level class="para1" eId="section-127-12-a"><num>(a)</num><cont

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-127-12-a"><num>(a)</num><content>despite <ref href="#section-232">section 232</ref><ref href="#section-232-3">(3)</ref> (permanent establishments treated as distinct from main entity), the conditions in <re

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-127-12-b"><num>(b)</num><content>an excluded entity is “qualifying” if it is not a pensions service entity, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-127-12-c"><num>(c)</num><content>references to an entity being 95% or 85% owned by qualifying excluded entities are to those entities together having at least that percentage of the ownership interests in t

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-3-chapter-2-crossheading-responsible-members"><heading>Responsible members</heading><section eId="section-128"><num>12

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-128"><num>128</num><heading>Responsible members</heading><subsection eId="section-128-1"><num>(1)</num><content>The ultimate parent of a multinational group is a responsible member of that group if it is subject to Pil

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-128-1"><num>(1)</num><content>The ultimate parent of a multinational group is a responsible member of that group if it is subject to Pillar Two IIR tax.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-128-2"><num>(2)</num><content>An ultimate parent that is a responsible member of a multinational group is responsible for all of its members that are not located in the territory it is located in.</content></sub

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-128-3"><num>(3)</num><intro>An intermediate parent member of a multinational group (see <ref href="#section-237">section 237</ref><ref href="#section-237-2">(2)</ref>) that is located in a Pillar Two territory is a

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-128-3-a"><num>(a)</num><content>no intermediate parent member of that group that is subject to Pillar Two IIR tax has a controlling interest in it,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-128-3-b"><num>(b)</num><content>the ultimate parent is not subject to Pillar Two IIR tax, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-128-3-c"><num>(c)</num><content>it has an ownership interest in a member of the group that has a top-up amount.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-128-4"><num>(4)</num><content>Such an intermediate parent member is responsible for all of the members of the group it has an ownership interest in that are not located in the territory it is located in.</conten

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-128-5"><num>(5)</num><intro>A partially-owned parent member of a multinational group (see <ref href="#section-237">section 237</ref><ref href="#section-237-1">(1)</ref>) that is located in a Pillar Two territory is

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-128-5-a"><num>(a)</num><content>it is not wholly owned by another partially-owned parent member of that group that is subject to Pillar Two IIR tax, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-128-5-b"><num>(b)</num><content>it has an ownership interest in a member of the group that has a top-up amount.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-128-6"><num>(6)</num><content>Such a partially owned parent member is responsible for all of the members of the group it has an ownership interest in that are not located in the same territory it is located in.<

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-128-7"><num>(7)</num><intro>For the purposes of <ref href="#part-3">this Part</ref> an entity is subject to Pillar Two IIR tax if—</intro><level class="para1" eId="section-128-7-a"><num>(a)</num><content>the

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-128-7-a"><num>(a)</num><content>the entity is located in the United Kingdom and is not an excluded entity, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-128-7-b"><num>(b)</num><intro>the entity—</intro><level class="para2" eId="section-128-7-b-i"><num>(i)</num><content>is located in another Pillar Two territory in which a tax equivalent to multinatio

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-128-7-b-i"><num>(i)</num><content>is located in another Pillar Two territory in which a tax equivalent to multinational top-up tax is in force, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-128-7-b-ii"><num>(ii)</num><content>is not excluded from the application of that tax as a result of provision equivalent to <ref href="#section-127">section 127</ref>.</content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-129"><num>129</num><heading>Qualifying multinational groups</heading><subsection eId="section-129-1"><num>(1)</num><content>For the purposes of <ref href="#part-3">this Part</ref>, a multinational group is “qualifying”

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-129-1"><num>(1)</num><content>For the purposes of <ref href="#part-3">this Part</ref>, a multinational group is “qualifying” in an accounting period if conditions A and B are met.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-129-2"><num>(2)</num><content>Condition A is that the group’s members have revenue that exceeds the threshold set out in <ref href="#section-129-4">subsection (4)</ref> in at least 2 accounting periods of the previo

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-129-3"><num>(3)</num><content>Condition B is that at least one of the group’s members is located in the United Kingdom.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-129-4"><num>(4)</num><content>The threshold for an accounting period is the amount given by multiplying 750 million euros by the amount given by dividing the number of days in the accounting period by 365.</cont

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-129-5"><num>(5)</num><content>For the purposes of <ref href="#section-129">this section</ref>, and <ref href="#section-127">section 127</ref><ref href="#section-127-5">(5)</ref>, the revenue of the members of a mult

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-130"><num>130</num><heading>Change in composition of multinational group</heading><subsection eId="section-130-1"><num>(1)</num><intro><ref href="#section-130">This section</ref> applies for the purpose of determining

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-130-1"><num>(1)</num><intro><ref href="#section-130">This section</ref> applies for the purpose of determining whether condition A in <ref href="#section-129">section 129</ref><ref href="#section-129-2">(2)</ref> is

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-130-1-a"><num>(a)</num><content>in that period, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-130-1-b"><num>(b)</num><content>during the previous 4 accounting periods (“the testing period”).</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-130-2"><num>(2)</num><content>Reference in <ref href="#section-130-1">subsection (1)</ref> to a change in the composition of a multinational group includes its formation as a result of the acquisition by one entity

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-130-3"><num>(3)</num><intro>Where a member of the multinational group was not a member of any consolidated group in one or more of the accounting periods in the testing period—</intro><level class="para1" eId="s

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-130-3-a"><num>(a)</num><content>its revenues for those accounting periods are to be determined by reference to its financial statements or any consolidated financial statements in which its revenue is inclu

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-130-3-b"><num>(b)</num><content>those revenues are to be treated as forming part of the revenues of the multinational group in those periods (whether or not the group existed in those periods).</content

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-130-4"><num>(4)</num><content>Where a multinational group is the result of a merger of two or more consolidated groups in the qualifying period or the testing period, for each accounting period of those periods in w

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-130-5"><num>(5)</num><content>For the purposes of <ref href="#section-130">this section</ref> “<term refersTo="#term-merger" eId="term-merger">merger</term>” means any arrangement that results in two or more consoli

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-131"><num>131</num><heading>Whether de-merged groups meet the revenue threshold</heading><subsec

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-131-1"><num>(1)</num><content><mod>Where a multinational group is the result of a qualifyi

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-131-2"><num>(2)</num><content>In <ref href="#section-131">this section</ref> “<term refersTo="#term-qualifying-de-merger" eId="term-qualifying-de-merger">qualifying de-merger</term>” means the separation of members

<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="part-3-chapter-3"><num>Chapter 3</num><heading>Effective tax rate of members of a multinational group in a territory</heading><section eId="section-132"><num>132</n

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-132"><num>132</num><heading>Effective tax rate</heading><subsection eId="section-132-1"><num>(1)</num><content>The effective tax rate of the standard mem

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-132-1"><num>(1)</num><content>The effective tax rate of the standard members of a multinational group in a territory for an accounting period is deter

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-132-2"><num>(2)</num><intro>The combined covered tax balance for standard members of a multinational group in a territory is—</intro><level class="para1" eId="section-132-2-a"><num>(a)</num><content>where tho

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-132-2-a"><num>(a)</num><content>where those members only have positive covered tax balances (see <ref href="#part-3-chapter-5">Chapter 5</ref>), the sum of those balances,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-132-2-b"><num>(b)</num><content>where those members only have negative covered tax balances (see that Chapter), the sum of those balances expressed as a negative number, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-132-2-c"><num>(c)</num><content>where those members have a mixture of positive covered tax balances and negative covered tax balances, the amount (which may be positive or negative) given by subtracting the

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-132-3"><num>(3)</num><intro>For the purposes of <ref href="#part-3">this Part</ref>—</intro><level class="para1" eId="section-132-3-a"><num>(a)</num><intro>a member of a multinational group is a “standard mem

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-132-3-a"><num>(a)</num><intro>a member of a multinational group is a “standard member” if it is not—</intro><level class="para2" eId="section-132-3-a-i"><num>(i)</num><content>an investment entity, o

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-132-3-a-i"><num>(i)</num><content>an investment entity, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-132-3-a-ii"><num>(ii)</num><content>a minority owned member, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-132-3-b"><num>(b)</num><content>a stateless member of a multinational group is to be treated as being the sole member of the group located in a nominal territory.</content></level>

<chapter xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="part-3-chapter-4"><num>Chapter 4</num><heading>Calculation of adjusted profits of members of a multinational group</heading><hcontainer name="crossheading" ukl:Name

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-3-chapter-4-crossheading-adjusted-profits-of-a-member-of-a-multinational-group"><heading>Adjusted profits of a member

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-133"><num>133</num><heading>Adjusted profits of a member of a multinational group</heading><subsection eId="section-133-1"><num>(1)</num><content>For the purposes of <ref href="#part-3">this Part</ref>, references to t

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-133-1"><num>(1)</num><content>For the purposes of <ref href="#part-3">this Part</ref>, references to the adjusted profits of a member of a multinational group are to the underlying profits of that member adjusted in

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-133-2"><num>(2)</num><content><ref href="#section-134">Sections 134</ref> to <ref href="#section-137">137</ref> set out how to determine the underlying profits.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-133-3"><num>(3)</num><content><ref href="#section-138">Sections 138</ref> to <ref href="#section-158">158</ref> set out various adjustments that may need to be made to those profits.</content></subs

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-133-4"><num>(4)</num><content><ref href="#section-159">Sections 159</ref> and <ref href="#section-160">160</ref> set out adjustments to be made in relation to members that are permanent establishments.</content>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-133-5"><num>(5)</num><content><ref href="#section-161">Sections 161</ref> to <ref href="#section-164">164</ref> make provision for elections for certain matters to be calculated in an alternative manner

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-133-6"><num>(6)</num><content>Sections <ref href="#section-167">167</ref> to <ref href="#section-171">171</ref> set out adjustments in relation to transparent and hybrid entities and entities subject to a “qualifyin

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-133-7"><num>(7)</num><intro>Other provisions of <ref href="#part-3">this Part</ref> may require further adjustments of underlying profits, including provision in—</intro><level class="para1" eId="section-133-7-a

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-133-7-a"><num>(a)</num><content><ref href="#part-3-chapter-9">Chapter 9</ref> (investment entities), and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-133-7-b"><num>(b)</num><content><ref href="#schedule-16">Schedule 16</ref> (transitional provision).</content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-134"><num>134</num><heading>Underlying profits as determined for statements of ultimate parent</heading><subsection eId="section-134-1"><num>(1)</num><content>The normal rule is that the underlying profits of a member

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-134-1"><num>(1)</num><content>The normal rule is that the underlying profits of a member of a multinational group, other than a member that is a permanent establishment, are the member’s profits as they would be det

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-134-2"><num>(2)</num><content>But those profits may instead be determined on the basis of an alternative accounting standard, and information in the separate financial accounts of the member, if all of the condition

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-134-3"><num>(3)</num><intro>Those conditions are that—</intro><level class="para1" eId="section-134-3-a"><num>(a)</num><content>it is not reasonably practicable to determine those profits on the basis of the

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-134-3-a"><num>(a)</num><content>it is not reasonably practicable to determine those profits on the basis of the accounting standard used in the preparation of the consolidated financial statements of the ul

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-134-3-b"><num>(b)</num><content>the alternative accounting standard is an acceptable accounting standard or an authorised accounting standard,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-134-3-c"><num>(c)</num><content>the alternative accounting standard is that used for the financial accounts of the member, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-134-3-d"><num>(d)</num><content>the information in those accounts is reliable.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-134-4"><num>(4)</num><content>Where an alternative accounting standard is used and an amount relevant to the underlying profits of a member of a multinational group is recorded in a currency other than the currency

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-134-5"><num>(5)</num><content><ref href="#section-134-6">Subsection (6)</ref> applies where the application of a particular policy of the alternative accounting standard in the determination of the profits of the me

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-134-6"><num>(6)</num><content>The underlying profits are to be adjusted to eliminate that difference (as if the accounting standard of the ultimate parent had been applied).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-134-7"><num>(7)</num><content>Information in the financial accounts of the member is “reliable” if an auditor applying the generally accepted auditing standards of a relevant territory would reasonably conclude the

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-134-8"><num>(8)</num><intro>For the purposes of <ref href="#section-134-7">subsection (7)</ref>, the following are relevant territories—</intro><level class="para1" eId="section-134-8-a"><num>(a)</num><content><

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-134-8-a"><num>(a)</num><content>the territory in which the member is located;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-134-8-b"><num>(b)</num><content>the territory in which the ultimate parent is located;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-134-8-c"><num>(c)</num><content>if the member is a flow-through entity (see <ref href="#section-168">section 168</ref><ref href="#section-168-2">(2)</ref>) that is a stateless entity, the territory in which

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-134-9"><num>(9)</num><content>For the purposes of this section, reference to a “significant accounting standard difference” is to a difference of more than 1 million euros between the treatment of an amount in the f

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-135"><num>135</num><heading>Underlying profits of permanent establishments</heading><subsection eId="section-135-1"><num>(1)</num><intro>The underlying profits of a member of a multinational group that is a permanent e

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-135-1"><num>(1)</num><intro>The underlying profits of a member of a multinational group that is a permanent establishment are the member’s profits—</intro><level class="para1" eId="section-135-1-a"><num>(a)</num

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-135-1-a"><num>(a)</num><content>if the member has separate financial accounts, as reflected in those accounts, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-135-1-b"><num>(b)</num><content>if not, as reflected in the underlying profits accounts of the main entity, attributed between the permanent establishment and the main entity in accordance with <ref href="#

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-135-2"><num>(2)</num><content>If the member is a permanent establishment falling within <ref href="#section-232-2-d">paragraph (d)</ref> of <ref href="#section-232">section 232</ref><ref href="#section-232-2">(2)</r

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-135-3"><num>(3)</num><intro>For the purposes of <ref href="#section-135-2">subsection (2)</ref>—</intro><level class="para1" eId="section-135-3-a"><num>(a)</num><content>the relevant income of the member is t

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-135-3-a"><num>(a)</num><content>the relevant income of the member is the income of the member that is exempted from tax in the territory where the main entity is located that is attributable to operations c

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-135-3-b"><num>(b)</num><content>the relevant expenses of the member are such of its expenses as are attributable to those operations and are not deducted for tax purposes in the territory of the main entity

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-135-4"><num>(4)</num><content>Profits (as determined in accordance with this Part) of a permanent establishment are not to be taken into account in determining the adjusted profits of the main entity, and vice versa

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-135-5"><num>(5)</num><intro>But <ref href="#section-135-4">subsection (4)</ref>—</intro><level class="para1" eId="section-135-5-a"><num>(a)</num><content>does not apply to profits of a permanent establishment

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-135-5-a"><num>(a)</num><content>does not apply to profits of a permanent establishment that are excluded from its profits as a result of an adjustment under <ref href="#section-159">section 159</ref>, and</

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-135-5-b"><num>(b)</num><content>is subject to <ref href="#section-160">section 160</ref> (attribution of losses between permanent establishment and main entity).</content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-136"><num>136</num><heading>Underlying profits accounts</heading><content>In this Part, reference to the “<term refersTo="#term-underlying-profits-accounts" eId="term-underlying-profits-accounts">underlying profits acc

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-137"><num>137</num><heading>No amounts outside of profit and loss account to be included</heading><content>Except as required by any other provision of this Part, amounts that are recognised outside the profit and loss

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-3-chapter-4-crossheading-adjustments-of-underlying-profits"><heading>Adjustments of underlying profits</heading><secti

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-138"><num>138</num><heading>Profits adjusted to be before tax</heading><subsection eId="section-138-1"><num>(1)</num><content>The underlying profits of a member of a multinational group for an accounting period are to

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-138-1"><num>(1)</num><content>The underlying profits of a member of a multinational group for an accounting period are to be adjusted by adding back any debit, and excluding any credit, for tax expense amounts refle

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-138-2"><num>(2)</num><intro>In <ref href="#part-3">this Part</ref> “<term refersTo="#term-tax-expense-amount" eId="term-tax-expense-amount">tax expense amount</term>” means an amount of tax expense (including a defe

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-138-2-a"><num>(a)</num><content>a covered tax (whether or not the income to which the tax relates are excluded from adjusted profits for the purposes of <ref href="#part-3">this Part</ref>);</content></

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-138-2-b"><num>(b)</num><content>multinational top-up tax, or any tax equivalent to multinational top-up tax;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-138-2-c"><num>(c)</num><content>a qualifying domestic top-up tax (see <ref href="#section-256">section 256</ref>);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-138-2-d"><num>(d)</num><content>a qualifying undertaxed profits tax (see <ref href="#section-257">section 257</ref>);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-138-2-e"><num>(e)</num><content>taxes accrued by an insurance company in respect of returns to policyholders to the extent that <ref href="#section-152">section 152</ref><ref href="#section-152-2">(2)</ref>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-138-2-f"><num>(f)</num><content>a disqualified refundable imputation tax (see <ref href="#section-253">section 253</ref>).</content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-139"><num>139</num><heading>Profits adjusted to be profits before consolidation adjustments to eliminate intragroup transactions</heading><subsection eId="section-139-1"><num>(1)</num><content>The underlying profits of

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-139-1"><num>(1)</num><content>The underlying profits of a member of a multinational group are to be adjusted so that they include income, expenses, gains and losses arising from transactions between that member and

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-139-2"><num>(2)</num><intro><ref href="#section-139-1">Subsection (1)</ref> is subject to—</intro><level class="para1" eId="section-139-2-a"><num>(a)</num><content><ref href="#section-137">section 137</ref> (

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-139-2-a"><num>(a)</num><content><ref href="#section-137">section 137</ref> (amounts outside profit and loss excluded), and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-139-2-b"><num>(b)</num><content><ref href="#section-164">section 164</ref> (where an election is made under that section to exclude profits from intra-group transactions).</content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-140"><num>140</num><heading>Profits adjusted to be profits before certain purchase accounting adjustments</heading><subsection eId="section-140-1"><num>(1)</num><content>The underlying profits of a member of a multinat

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-140-1"><num>(1)</num><content>The underlying profits of a member of a multinational group for an accounting period are to be adjusted so that they do not reflect relevant share acquisition adjustments.</content>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-140-2"><num>(2)</num><content>“<term refersTo="#term-relevant-share-acquisition-adjustment" eId="term-relevant-share-acquisition-adjustment">Relevant share acquisition adjustment</term>” means a purchase accounting

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-140-3"><num>(3)</num><content>This section does not apply to a relevant share acquisition adjustment resulting from an acquisition of shares before 1 December 2021 if it is not reasonably practicable to identify the

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-141"><num>141</num><heading>General exclusion of dividends</heading><subsection eId="section-141-1"><num>(1)</num><content>The underlying profits of a member of a multinational group are to be adjusted so as to exclude

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-141-1"><num>(1)</num><content>The underlying profits of a member of a multinational group are to be adjusted so as to exclude any excluded dividends received or accrued by that member.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-141-2"><num>(2)</num><intro>“<term refersTo="#term-excluded-dividends" eId="term-excluded-dividends">Excluded dividends</term>” means—</intro><level class="para1" eId="section-141-2-a"><num>(a)</num><content>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-141-2-a"><num>(a)</num><content>a dividend or other distribution arising as a result of a qualifying interest in a flow-through entity (see <ref href="#section-168">section 168</ref>), or</content></lev

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-141-2-b"><num>(b)</num><content>any other dividend or other distribution arising as a result of a qualifying interest in an entity, other than a dividend or other distribution falling within <ref href="#sec

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-141-3"><num>(3)</num><intro>The following fall within <ref href="#section-141-3">this subsection</ref>—</intro><level class="para1" eId="section-141-3-a"><num>(a)</num><content>a dividend or other distributio

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-141-3-a"><num>(a)</num><content>a dividend or other distribution arising as a result of a qualifying interest that is a short-term portfolio holding;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-141-3-b"><num>(b)</num><content>a dividend or other distribution arising as a result of a qualifying interest in an investment entity that is subject to an election under <ref href="#section-214">section 21

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-141-3-c"><num>(c)</num><intro>a dividend or other distribution made by a member of a multinational group if—</intro><level class="para2" eId="section-141-3-c-i"><num>(i)</num><content>its recipient i

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-141-3-c-i"><num>(i)</num><content>its recipient is a member of the same group, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-141-3-c-ii"><num>(ii)</num><content>payments in respect of the distribution (whether or not the distribution was accounted for as a distribution at the time of payment) are treated as an expense of the memb

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-141-3-d"><num>(d)</num><content>any other dividend or other distribution to the extent it reflects debt rather than a qualifying interest.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-141-4"><num>(4)</num><intro>For the purposes of <ref href="#section-141-2">subsection (2)</ref> a qualifying interest in an entity held by a member of a multinational group is a portfolio holding if, on the vesting

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-141-4-a"><num>(a)</num><content>profits,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-141-4-b"><num>(b)</num><content>capital,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-141-4-c"><num>(c)</num><content>reserves, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-141-4-d"><num>(d)</num><content>voting rights.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-141-5"><num>(5)</num><content>A portfolio holding held by a member of a multinational group is a short-term portfolio holding if it was held for less than 1 year before the vesting date of the distribution.</con

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-141-6"><num>(6)</num><intro>The vesting date of a distribution is the earlier of—</intro><level class="para1" eId="section-141-6-a"><num>(a)</num><content>the day on which it is made, and</content></level

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-141-6-a"><num>(a)</num><content>the day on which it is made, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-141-6-b"><num>(b)</num><content>the day on which the person to whom it arises is entitled to have it made.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-141-7"><num>(7)</num><content>The filing member of a multinational group may elect that all portfolio holdings held by a member of the group specified in the election are to be treated for the purposes of <ref href=

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-141-8"><num>(8)</num><content><ref href="#schedule-15-paragraph-1">Paragraph 1</ref> of <ref href="#schedule-15">Schedule 15</ref> (long term elections) applies to an election under <ref href="#section-141-7">subsec

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-141-9"><num>(9)</num><intro>In <ref href="#section-141">this section</ref>, and in <ref href="#section-142">section 142</ref>, “qualifying interest” in an entity means—</intro><level class="para1" eId="section-1

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-141-9-a"><num>(a)</num><content>a direct ownership interest in it, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-141-9-b"><num>(b)</num><content>an entitlement to exercise voting rights in relation to it.</content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-142"><num>142</num><heading>Excluded equity gain or loss</heading><subsection eId="section-142-1"><num>(1)</num><content>The underlying profits of a member of a multinational group are to be adjusted so as to exclude a

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-142-1"><num>(1)</num><content>The underlying profits of a member of a multinational group are to be adjusted so as to exclude any excluded equity gain or loss.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-142-2"><num>(2)</num><intro>“<term refersTo="#term-excluded-equity-gain-or-loss" eId="term-excluded-equity-gain-or-loss">Excluded equity gain or loss</term>” means any gain, profit or loss arising from—</intro><

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-142-2-a"><num>(a)</num><content>gains and losses from changes in fair value of a qualifying interest or the impairment of such an interest, other than an interest to which <ref href="#section-142-3">subsect

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-142-2-b"><num>(b)</num><content>profit or loss in respect of a qualifying interest included in underlying profits under the equity method of accounting, other than an interest to which <ref href="#section-1

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-142-2-c"><num>(c)</num><content>gains and losses from a disposition of a qualifying interest, other than an interest to which <ref href="#section-142-3">subsection (3)</ref> applies.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-142-3"><num>(3)</num><intro><ref href="#section-142-3">This subsection</ref> applies to a qualifying interest in an entity if the members of the multinational group do not, at the relevant time, have qualifying inte

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-142-3-a"><num>(a)</num><content>profits,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-142-3-b"><num>(b)</num><content>capital,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-142-3-c"><num>(c)</num><content>reserves, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-142-3-d"><num>(d)</num><content>voting rights.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-142-4"><num>(4)</num><intro>The “<term refersTo="#term-relevant-time" eId="term-relevant-time">relevant time</term>” means—</intro><level class="para1" eId="section-142-4-a"><num>(a)</num><content>for the pur

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-142-4-a"><num>(a)</num><content>for the purposes of testing whether <ref href="#section-142-3">subsection (3)</ref> applies to an interest for the purposes of <ref href="#section-142-2">subsection (2)</ref>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-142-4-b"><num>(b)</num><content>for the purposes of testing whether <ref href="#section-142-3">subsection (3)</ref> applies to an interest for the purpose of <ref href="#section-142-2">subsection (2)</ref><

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-142-5"><num>(5)</num><content>See also <ref href="#section-165">section 165</ref> which provides for an election to treat certain gains or losses as not being excluded equity gains or losses.</content></subsecti

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-143"><num>143</num><heading>Included revaluation method gain or loss</heading><subsection eId="section-143-1"><num>(1)</num><content>The underlying profits of a member of a multinational group are to be adjusted so as

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-143-1"><num>(1)</num><content>The underlying profits of a member of a multinational group are to be adjusted so as to include any relevant revaluation method gain or loss.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-143-2"><num>(2)</num><intro>“<term refersTo="#term-relevant-revaluation-method-gain-or-loss" eId="term-relevant-revaluation-method-gain-or-loss">Relevant revaluation method gain or loss</term>” means a gain or loss,

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-143-2-a"><num>(a)</num><content>periodically adjusts the carrying value of the member’s property, plant and equipment to its fair value,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-143-2-b"><num>(b)</num><content>records the changes in value in other comprehensive income, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-143-2-c"><num>(c)</num><content>does not subsequently report the gains or losses through the profit and loss account.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-143-3"><num>(3)</num><intro>In <ref href="#part-3">this Part</ref>—</intro><hcontainer name="definition"><content>“<term refersTo="#term-other-comprehensive-income" eId="term-other-comprehensive-income">other

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“<term refersTo="#term-other-comprehensive-income" eId="term-other-comprehensive-income">other comprehensive income</term>”, in relation to a member of a multinational group, means items of income and

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-144"><num>144</num><heading>Adjustments for asymmetric foreign currency income and losses</heading><subsection eId="section-144-1"><num>(1)</num><content>This section only applies in relation to a member of a multinati

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-144-1"><num>(1)</num><content>This section only applies in relation to a member of a multinational group where its accounting currency and its tax currency are different.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-144-2"><num>(2)</num><intro>Where—</intro><level class="para1" eId="section-144-2-a"><num>(a)</num><content>the member has a gain or a loss as a result of fluctuations in the exchange rate between its account

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-144-2-a"><num>(a)</num><content>the member has a gain or a loss as a result of fluctuations in the exchange rate between its accounting currency and its tax currency, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-144-2-b"><num>(b)</num><content>the gain or loss is reflected differently in its taxable income and in the determination of its underlying profits (including where it is not reflected at all in one of those

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-144-3"><num>(3)</num><intro>Where—</intro><level class="para1" eId="section-144-3-a"><num>(a)</num><content>the member has a gain or a loss as a result of fluctuations in the exchange rate between its account

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-144-3-a"><num>(a)</num><content>the member has a gain or a loss as a result of fluctuations in the exchange rate between its accounting currency and a third currency,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-144-3-b"><num>(b)</num><content>the gain or loss is reflected in its underlying profits, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-144-3-c"><num>(c)</num><content>the gain or loss is not reflected, or is reflected to a different extent, in its taxable income,</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-144-4"><num>(4)</num><intro>Where—</intro><level class="para1" eId="section-144-4-a"><num>(a)</num><content>the member has a gain or a loss as a result of fluctuations in the exchange rate between its tax cur

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-144-4-a"><num>(a)</num><content>the member has a gain or a loss as a result of fluctuations in the exchange rate between its tax currency and a third currency, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-144-4-b"><num>(b)</num><content>the income or loss is not reflected, or is reflected to a different extent, in its underlying profits,</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-144-5"><num>(5)</num><intro>In this Part—</intro><hcontainer name="definition"><content>“<term refersTo="#term-accounting-currency" eId="term-accounting-currency">accounting currency</term>” means the currenc

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“<term refersTo="#term-tax-currency" eId="term-tax-currency">tax currency</term>” means the currency in which the profits of that member are determined for the purposes of determining its liability to

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“<term refersTo="#term-taxable-income" eId="term-taxable-income">taxable income</term>” means income subject to, and determined for the purposes of, covered taxes.</content></hcontainer>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-145"><num>145</num><heading>Exclusion of expenses for illegal payments, fines and penalties</heading><subsection eId="section-145-1"><num>(1)</num><intro>Where the underlying profits of a member of a multinational grou

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-145-1"><num>(1)</num><intro>Where the underlying profits of a member of a multinational group reflects—</intro><level class="para1" eId="section-145-1-a"><num>(a)</num><content>expenses accrued for illegal pa

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-145-1-a"><num>(a)</num><content>expenses accrued for illegal payments (for example, bribes or kickbacks), or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-145-1-b"><num>(b)</num><content>expenses accrued for fines or penalties of 50,000 euros or more,</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-145-2"><num>(2)</num><intro>For the purposes of <ref href="#section-145-1">subsection (1)</ref><ref href="#section-145-1-a">(a)</ref>, a payment is illegal if the making of that payment is, or forms part of conduct

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-145-2-a"><num>(a)</num><content>the United Kingdom,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-145-2-b"><num>(b)</num><content>the territory of the member, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-145-2-c"><num>(c)</num><content>the territory of the ultimate parent.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-145-3"><num>(3)</num><content>For the purposes of <ref href="#section-145-1">subsection (1)</ref><ref href="#section-145-1-b">(b)</ref>, where more than one fine or penalty is accrued in respect of the same conduct,

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-146"><num>146</num><heading>Adjustment for changes in accounting policies and prior period errors</heading><intro>Where there has been a change to the net assets and liabilities of a member of a multinational group at

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-146-a"><num>(a)</num><content>a change in accounting policy that affects income or expenses included in determining the member’s adjusted profits, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-146-b"><num>(b)</num><content>a correction of an error reflected in the determination, for the purposes of this Part, of the adjusted profits of the member for a previous accounting period, except to the ex

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-147"><num>147</num><heading>Accrued pension expense</heading><content>Where the underlying profits of a member of a multinational group for an accounting

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-148"><num>148</num><heading>Treatment of qualifying refundable tax credits</heading><subsection eId="section-148-1"><num>(1)</num><intro>The underlying profits of a member of a multinational group are to be adjusted (i

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-148-1"><num>(1)</num><intro>The underlying profits of a member of a multinational group are to be adjusted (if necessary) to secure that—</intro><level class="para1" eId="section-148-1-a"><num>(a)</num><content>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-148-1-a"><num>(a)</num><content>qualifying refundable tax credits are treated as income, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-148-1-b"><num>(b)</num><content>other tax credits (refundable or otherwise) are not treated as income.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-148-2"><num>(2)</num><content>A refundable tax credit is “qualifying” to the extent that, under the law of the territory in which it is given, it entitles a person to receive (by way of payment or discharge of liabi

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-148-3"><num>(3)</num><content>But a refundable tax credit is never qualifying if it is creditable or refundable pursuant to a qualified refundable imputation tax or a disqualified refundable imputation tax (see <ref

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-148-4"><num>(4)</num><intro>In this Part “<term refersTo="#term-refundable-tax-credit" eId="term-refundable-tax-credit">refundable tax credit</term>” means a tax credit which—</intro><level class="para1" eId="se

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-148-4-a"><num>(a)</num><content>after any liability to covered taxes has been reduced or discharged by it, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-148-4-b"><num>(b)</num><content>in the absence of any tax liability to covered taxes,</content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-149"><num>149</num><heading>Arm’s length requirement for certain transactions</heading><subsection eId="section-149-1"><num>(1)</num><content><ref href="#section-149-6">Subsection (6)</ref> applies to a member of a mul

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-149-1"><num>(1)</num><content><ref href="#section-149-6">Subsection (6)</ref> applies to a member of a multinational group if any of Conditions A to D are met.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-149-2"><num>(2)</num><intro>Condition A is that—</intro><level class="para1" eId="section-149-2-a"><num>(a)</num><content>a debit is recorded in the underlying profits accounts of the member that arises from

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-149-2-a"><num>(a)</num><content>a debit is recorded in the underlying profits accounts of the member that arises from a transaction (“the relevant transaction”) comprising a transfer of an asset between the

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-149-2-b"><num>(b)</num><content>both members are located in the same territory, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-149-2-c"><num>(c)</num><content>the relevant transaction is not recorded on an arm’s length basis.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-149-3"><num>(3)</num><intro>Condition B is that—</intro><level class="para1" eId="section-149-3-a"><num>(a)</num><content>the member is party to a transaction (“the relevant transaction”) with another member

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-149-3-a"><num>(a)</num><content>the member is party to a transaction (“the relevant transaction”) with another member of that group,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-149-3-b"><num>(b)</num><content>both members are located in the same territory,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-149-3-c"><num>(c)</num><content>one of the members is a minority owned member and the other is not, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-149-3-d"><num>(d)</num><content>the relevant transaction is not recorded in the member’s underlying profits accounts on an arm’s length basis.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-149-4"><num>(4)</num><intro>Condition C is that—</intro><level class="para1" eId="section-149-4-a"><num>(a)</num><content>the member is party to a transaction (“the relevant transaction”) with another member

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-149-4-a"><num>(a)</num><content>the member is party to a transaction (“the relevant transaction”) with another member of that group,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-149-4-b"><num>(b)</num><content>both members are located in the same territory,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-149-4-c"><num>(c)</num><content>one of the members is an investment entity and the other is not, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-149-4-d"><num>(d)</num><content>the relevant transaction is not recorded in the member’s underlying profits accounts on an arm’s length basis.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-149-5"><num>(5)</num><intro>Condition D is that—</intro><level class="para1" eId="section-149-5-a"><num>(a)</num><content>the member is party to a transaction (“the relevant transaction”) with another member

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-149-5-a"><num>(a)</num><content>the member is party to a transaction (“the relevant transaction”) with another member of that group,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-149-5-b"><num>(b)</num><content>both members are located in the same territory, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-149-5-c"><num>(c)</num><content>the recorded value of the relevant transaction is not the same in each member’s underlying profits accounts.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-149-6"><num>(6)</num><content>Where <ref href="#section-149-6">this subsection</ref> applies to a member of a multinational group, the underlying profits of the member are to be adjusted to secure that the relevant

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-149-7"><num>(7)</num><content>In <ref href="#part-3">this Part</ref> “<term refersTo="#term-arms-length-basis" eId="term-arms-length-basis">arm’s length basis</term>”, in relation to a transaction between members of

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-150"><num>150</num><heading>Transactions between members of a multinational group: differences with accounting for tax</heading><subsection eId="section-150-1"><num>(1)</num><intro><ref href="#section-150">This section

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-150-1"><num>(1)</num><intro><ref href="#section-150">This section</ref> applies if—</intro><level class="para1" eId="section-150-1-a"><num>(a)</num><content>a transaction between two members of a multinationa

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-150-1-a"><num>(a)</num><content>a transaction between two members of a multinational group located in different territories is not recorded in the same amount, or is not recorded on an arm’s length basis (o

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-150-1-b"><num>(b)</num><content>there is a permanent difference in respect of the transaction in relation to one or both of those members as a result of adjustments to the taxable income of the member made

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-150-2"><num>(2)</num><intro><ref href="#section-150-3">Subsection (3)</ref> applies if—</intro><level class="para1" eId="section-150-2-a"><num>(a)</num><content>for each member there is a permanent difference

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-150-2-a"><num>(a)</num><content>for each member there is a permanent difference in respect of the transaction which arises as a result of adjustments made in connection with transfer pricing, and</conte

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-150-2-b"><num>(b)</num><content>the permanent difference for each member corresponds to the permanent difference for the other.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-150-3"><num>(3)</num><content>Where <ref href="#section-150-3">this subsection</ref> applies, the underlying profits of each of the members are to be adjusted so that the amount of the transaction reflects the amoun

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-150-4"><num>(4)</num><intro><ref href="#section-150-5">Subsection (5)</ref> applies if—</intro><level class="para1" eId="section-150-4-a"><num>(a)</num><content>one of the members (“<term refersTo="#term-a" e

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-150-4-a"><num>(a)</num><content>one of the members (“<term refersTo="#term-a" eId="term-a">A</term>”) is a high tax member,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-150-4-b"><num>(b)</num><content>there is a permanent difference for A in respect of the transaction which arises as a result of adjustments made in connection with transfer pricing, and</content></level

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-150-4-c"><num>(c)</num><content>there is no permanent difference for the other member (“<term refersTo="#term-b" eId="term-b">B</term>”) in respect of the transaction arising as a result of adjustments made

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-150-5"><num>(5)</num><intro>Where <ref href="#section-150-5">this subsection</ref> applies—</intro><level class="para1" eId="section-150-5-a"><num>(a)</num><content>the underlying profits of A are to be adjus

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-150-5-a"><num>(a)</num><content>the underlying profits of A are to be adjusted so that the amount of the transaction reflects the amount reflected in the member’s taxable income, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-150-5-b"><num>(b)</num><content>an adjustment is to be made to the underlying profits of B which corresponds with the amount of the adjustment made to the profits of A.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-150-6"><num>(6)</num><intro>For the purposes of <ref href="#section-150">this section</ref>, a member of a multinational group is a high tax member for an accounting period (“<term refersTo="#term-the-relevant-perio

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-150-6-a"><num>(a)</num><content>the nominal tax rate in the territory in which the member is located is, or exceeds, 15% in the relevant period, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-150-6-b"><num>(b)</num><content>the effective tax rate of the standard members of that group in that territory is, or exceeds, 15% in either, or both, of the accounting period that immediately preceded the

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-150-7"><num>(7)</num><content>In this section reference to a “permanent difference” is to a difference between the treatment of an amount for the purposes of covered taxes and for accounting purposes that is not eli

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-151"><num>151</num><heading>Adjustments for companies in distress</heading><subsection eId="section-151-1"><num>(1)</num><intro><ref href="#section-151">This section</ref> applies to a member of a multinational group w

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-151-1"><num>(1)</num><intro><ref href="#section-151">This section</ref> applies to a member of a multinational group where—</intro><level class="para1" eId="section-151-1-a"><num>(a)</num><content>it is relea

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-151-1-a"><num>(a)</num><content>it is released from an obligation to pay a debt (however that obligation arises), and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-151-1-b"><num>(b)</num><content>at the time of that release, one or more of the circumstances mentioned in <ref href="#section-151-1-a">paragraphs (a)</ref> to <ref href="#section-151-2-c">(c)</ref></

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-151-2"><num>(2)</num><intro>Those circumstances are—</intro><level class="para1" eId="section-151-2-a"><num>(a)</num><content>that the member meets an insolvency condition mentioned in paragraphs (a) to (e) o

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-151-2-a"><num>(a)</num><content>that the member meets an insolvency condition mentioned in paragraphs (a) to (e) of section 322(6) of CTA 2009 (release of debts);</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-151-2-b"><num>(b)</num><intro>that—</intro><level class="para2" eId="section-151-2-b-i"><num>(i)</num><content>it is reasonable to suppose that within 12 months, ignoring any debts owed to persons an

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-151-2-b-i"><num>(i)</num><content>it is reasonable to suppose that within 12 months, ignoring any debts owed to persons and entities that are connected to the member, the member will be unable to meet its d

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-151-2-b-ii"><num>(ii)</num><content>the member has obtained an independent expert opinion confirming that is the case;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-151-2-c"><num>(c)</num><content>that the member’s liabilities exceed its assets.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-151-3"><num>(3)</num><content>Where the circumstance in <ref href="#section-151-2">subsection (2)</ref><ref href="#section-151-2-a">(a)</ref> applies to the member, its underlying profits are to be adjusted to exclu

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-151-4"><num>(4)</num><intro>Where—</intro><level class="para1" eId="section-151-4-a"><num>(a)</num><content>the circumstance in <ref href="#section-151-2">subsection (2)</ref><ref href="#section-151-2-b">(b)<

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-151-4-a"><num>(a)</num><content>the circumstance in <ref href="#section-151-2">subsection (2)</ref><ref href="#section-151-2-b">(b)</ref> applies to the member,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-151-4-b"><num>(b)</num><content>the circumstance in (2)(a) does not, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-151-4-c"><num>(c)</num><intro>the debt—</intro><level class="para2" eId="section-151-4-c-i"><num>(i)</num><content>is not a debt owed to a person or entity that is connected to the member, or</co

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-151-4-c-i"><num>(i)</num><content>is not a debt owed to a person or entity that is connected to the member, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-151-4-c-ii"><num>(ii)</num><content>the debt is owed to a person or entity that is connected to the member, but the release of the debt obligation can reasonably be regarded as part of arrangements to secur

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-151-5"><num>(5)</num><intro><ref href="#section-151-6">Subsection (6)</ref> applies where—</intro><level class="para1" eId="section-151-5-a"><num>(a)</num><content>the circumstance in <ref href="#section-151-

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-151-5-a"><num>(a)</num><content>the circumstance in <ref href="#section-151-2">subsection (2)</ref><ref href="#section-151-2-c">(c)</ref> applies to the member,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-151-5-b"><num>(b)</num><content>neither the circumstance in <ref href="#section-151-2">subsection (2)</ref><ref href="#section-151-2-a">(a)</ref> nor <ref href="#section-151-2">(2)</ref><ref href="#section-

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-151-5-c"><num>(c)</num><content>the debt is not a debt owed to a person or entity that is connected to the member.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-151-6"><num>(6)</num><intro>Where <ref href="#section-151-6">this subsection</ref> applies, the underlying profits of the member are to be adjusted to exclude the lesser of—</intro><level class="para1" eId="sect

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-151-6-a"><num>(a)</num><content>the amount of any profits arising as a result of the release of the debt obligation,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-151-6-b"><num>(b)</num><content>if, as a result of the release of the debt obligation, the member’s assets exceed its liabilities, the amount by which its liabilities exceeded its assets immediately before

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-151-6-c"><num>(c)</num><content>if, in determining the member’s liability to tax, some or all of the profits arising as a result of the release of the debt obligation are offset by deferred tax assets, the

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-151-7"><num>(7)</num><content>Where the member is released from more than one obligation to pay a debt at the same time, the release of those obligations is to be treated, for the purposes of applying the conditions

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-152"><num>152</num><heading>Adjustments where life assurance business carried on</heading><subsection eId="section-152-1"><num>(1)</num><content>This section applies to a member of a multinational group that carries on

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-152-1"><num>(1)</num><content>This section applies to a member of a multinational group that carries on a life assurance business.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-152-2"><num>(2)</num><content>Where amounts charged to the member’s policyholders for taxes payable by the member are reflected in its underlying profits, those profits are to be adjusted to exclude such of those am

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-152-3"><num>(3)</num><content>Where returns to the member’s policyholders are not reflected in the member’s underlying profits but corresponding increases or decreases in the liability of the member to the policyhol

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-152-4"><num>(4)</num><content>In this section “<term refersTo="#term-life-assurance-business" eId="term-life-assurance-business">life assurance business</term>” has the meaning it has in section 56 of FA 2012.</

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-153"><num>153</num><heading>Exclusion of certain insurance reserve movement expense</heading><subsection eId="section-153-1"><num>(1)</num><content>The underlying profits of a member of a multinational group that is an

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-153-1"><num>(1)</num><content>The underlying profits of a member of a multinational group that is an insurance company are to be adjusted so as to exclude any expense resulting from the movement of its insurance res

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-153-2"><num>(2)</num><content>The underlying profits of a member of a multinational group that is an insurance company are to be adjusted so as to exclude any expense resulting from the movement of its insurance res

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-154"><num>154</num><heading>Exclusion of qualifying intra-group financing arrangement expenses</heading><subsection eId="section-154-1"><num>(1)</num><intro>Where—</intro><level class="para1" eId="section-154-1-a">

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-154-1"><num>(1)</num><intro>Where—</intro><level class="para1" eId="section-154-1-a"><num>(a)</num><intro>the underlying profits of the member of a multinational group for an accounting period reflect expense

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-154-1-a"><num>(a)</num><intro>the underlying profits of the member of a multinational group for an accounting period reflect expenses attributable to a qualifying intra-group financing arrangement that coul

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-154-1-a-i"><num>(i)</num><content>increase the amount of expenses taken into account in calculating the member’s underlying profits, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-154-1-a-ii"><num>(ii)</num><content>not result in a corresponding increase in the taxable income of a member of the group that is a high tax member for that period,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-154-1-b"><num>(b)</num><content>the member is a low tax member for that period, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-154-1-c"><num>(c)</num><content>the expenses are not required to be included as a result of <ref href="#section-155">section 155</ref>,</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-154-2"><num>(2)</num><intro>In <ref href="#section-154">this section</ref>—</intro><hcontainer name="definition"><content>“<term refersTo="#term-intra-group-financing-arrangement" eId="term-intra-group-financ

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“<term refersTo="#term-intra-group-financing-arrangement" eId="term-intra-group-financing-arrangement">intra-group financing arrangement</term>” means an arrangement between two or more members of a mu

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>an intra-group financing arrangement is “<term refersTo="#term-qualifying" eId="term-qualifying">qualifying</term>” if member A is a high tax member and member B is a low tax member;</content></hco

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>a member of a multinational group is a “<term refersTo="#term-high-tax-member" eId="term-high-tax-member">high tax member</term>” in an accounting period if the effective tax rate for the standard memb

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-155"><num>155</num><heading>Qualifying tier one capital</heading><subsection eId="section-155-1"><num>(1)</num><content>Where amounts recognised by a member of a multinational group as a decrease to its equity in an ac

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-155-1"><num>(1)</num><content>Where amounts recognised by a member of a multinational group as a decrease to its equity in an accounting period that is attributable to distributions paid or payable in respect of qua

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-155-2"><num>(2)</num><content>Where amounts recognised by a member of a multinational group as an increase to its equity in an accounting period that is attributable to distributions received or receivable in respec

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-155-3"><num>(3)</num><content>In this section “<term refersTo="#term-qualifying-tier-one-capital" eId="term-qualifying-tier-one-capital">qualifying tier one capital</term>” means an instrument issued by an entity pu

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-156"><num>156</num><heading>Exclusion of international shipping profits</heading><subsection eId="section-156-1"><num>(1)</num><content>Where the underlying profits of a member of a multinational group for an accountin

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-156-1"><num>(1)</num><content>Where the underlying profits of a member of a multinational group for an accounting period reflect the inclusion of international shipping profits, the member’s underlying profits for t

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-156-2"><num>(2)</num><intro>The member’s international shipping profits for the period are the sum of the member’s—</intro><level class="para1" eId="section-156-2-a"><num>(a)</num><content>core international

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-156-2-a"><num>(a)</num><content>core international shipping profits (see section <ref href="#section-157">157</ref>), and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-156-2-b"><num>(b)</num><content>ancillary international shipping profits (see section <ref href="#section-158">158</ref>).</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-156-3"><num>(3)</num><content>Subsection <ref href="#section-156-1">(1)</ref> does not apply if, in the period, the strategic and commercial management of any ship used in international shipping giving rise to those

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-156-4"><num>(4)</num><intro>In this section, and in sections <ref href="#section-157">157</ref> and <ref href="#section-158">158</ref>—</intro><hcontainer name="definition"><content>“<term refersTo="#term-int

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“<term refersTo="#term-transportation" eId="term-transportation">transportation</term>” does not include towing or dredging.</content></hcontainer>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-157"><num>157</num><heading>Core international shipping profits</heading><subsection eId="section-157-1"><num>(1)</num><content>A member’s core international shipping profits for a period are the member’s core internat

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-157-1"><num>(1)</num><content>A member’s core international shipping profits for a period are the member’s core international shipping revenue for the period less the member’s core international shipping costs for t

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-157-2"><num>(2)</num><content>A member’s core international shipping revenue is all revenue earned by the member in consideration for the member’s performance of core international shipping activities.</content>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-157-3"><num>(3)</num><intro>A member’s core international shipping costs are the sum of—</intro><level class="para1" eId="section-157-3-a"><num>(a)</num><content>all costs incurred by the member that are dire

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-157-3-a"><num>(a)</num><content>all costs incurred by the member that are directly attributable to the member’s performance of core international shipping activities, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-157-3-b"><num>(b)</num><content>all costs incurred by the member that are indirectly attributable to the member’s performance of core international shipping activities multiplied by the core international s

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-157-4"><num>(4)</num><content>The core international shipping factor is the member’s core international shipping revenue divided by all revenue earned by the member from any source.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-157-5"><num>(5)</num><content>An activity is a core international shipping activity if it is of a type referred to in subsection <ref href="#section-157-6">(6)</ref>.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-157-6"><num>(6)</num><intro>The types of activity are—</intro><level class="para1" eId="section-157-6-a"><num>(a)</num><content>carrying out international shipping, whether alone or in conjunction with anothe

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-157-6-a"><num>(a)</num><content>carrying out international shipping, whether alone or in conjunction with another person;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-157-6-b"><num>(b)</num><intro>leasing as lessor a ship to be used for international shipping, where—</intro><level class="para2" eId="section-157-6-b-i"><num>(i)</num><content>the ship is leased full

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-157-6-b-i"><num>(i)</num><content>the ship is leased fully equipped, crewed and supplied, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-157-6-b-ii"><num>(ii)</num><content>the lessee is a member of the same multinational group and the purpose of the lease is to allow that member to carry out a core international shipping activity;</cont

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-157-6-c"><num>(c)</num><content>arranging for another person to carry out international shipping under slot-chartering arrangements;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-157-6-d"><num>(d)</num><content>the sale of a ship used in international shipping, where the ship has been held for use by the member for at least one year.</content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-158"><num>158</num><heading>Ancillary international shipping profits</heading><subsection eId="section-158-1"><num>(1)</num><intro>A member’s ancillary i

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-158-1"><num>(1)</num><intro>A member’s ancillary international shipping profits for a period are the member’s ancillary international shipping revenue for the period, less—</intro><level class="para1" eId="secti

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-158-1-a"><num>(a)</num><content>the member’s ancillary international shipping costs for the period, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-158-1-b"><num>(b)</num><content>the member’s ancillary international shipping profit cap adjustment for the period.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-158-2"><num>(2)</num><content>A member’s ancillary international shipping revenue is all revenue earned by the member in consideration for the member’s performance of ancillary international shipping activities.

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-158-3"><num>(3)</num><intro>A member’s ancillary international shipping costs are the sum of—</intro><level class="para1" eId="section-158-3-a"><num>(a)</num><content>all costs incurred by the member that are

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-158-3-a"><num>(a)</num><content>all costs incurred by the member that are directly attributable to the member’s performance of ancillary international shipping activities, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-158-3-b"><num>(b)</num><content>all costs incurred by the member that are indirectly attributable to the member’s performance of ancillary international shipping activities multiplied by the ancillary inter

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-158-4"><num>(4)</num><content>The ancillary international shipping factor is the ancillary international shipping revenue divided by all revenue earned by the member from any source.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-158-5"><num>(5)</num><intro>An activity is an ancillary international shipping activity if—</intro><level class="para1" eId="section-158-5-a"><num>(a)</num><content>it is of a type referred to in subsection <

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-158-5-a"><num>(a)</num><content>it is of a type referred to in subsection <ref href="#section-158-6">(6)</ref>, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-158-5-b"><num>(b)</num><content>it is performed primarily in connection with international shipping.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-158-6"><num>(6)</num><intro>The types of activity are—</intro><level class="para1" eId="section-158-6-a"><num>(a)</num><intro>leasing as lessor a ship to be used for international shipping, where—</intro>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-158-6-a"><num>(a)</num><intro>leasing as lessor a ship to be used for international shipping, where—</intro><level class="para2" eId="section-158-6-a-i"><num>(i)</num><content>the ship is not leased

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-158-6-a-i"><num>(i)</num><content>the ship is not leased fully equipped, crewed and supplied,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-158-6-a-ii"><num>(ii)</num><content>the lessee is a third party, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-158-6-a-iii"><num>(iii)</num><content>the lease has not been in effect for a period exceeding three years, or entered into on terms that would result in the lease being in effect for such a period;</con

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-158-6-b"><num>(b)</num><content>selling tickets for a domestic leg of an international voyage carried out by a third party;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-158-6-c"><num>(c)</num><content>leasing as lessor a container of a kind used for international shipping;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-158-6-d"><num>(d)</num><content>storing such a container for a short period, including by leasing as lessor space for the storage of such a container by another person;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-158-6-e"><num>(e)</num><content>providing support services (see subsection <ref href="#section-158-7">(7)</ref><ref href="#section-158-7-e">(e)</ref>) to persons engaged in international shipping;</cont

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-158-6-f"><num>(f)</num><content>holding assets necessary for the member to carry out a core international shipping activity;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-158-6-g"><num>(g)</num><content>the disposal of emissions allowances it is necessary for the member to hold in order to carry out international shipping.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-158-7"><num>(7)</num><intro>For the purposes of subsection <ref href="#section-158-6">(6)</ref>—</intro><level class="para1" eId="section-158-7-a"><num>(a)</num><intro>“<term refersTo="#term-third-party" eId=

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-158-7-a"><num>(a)</num><intro>“<term refersTo="#term-third-party" eId="term-third-party">third party</term>”, in relation to a member of a multinational group, means a person that is not—</intro><level

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-158-7-a-i"><num>(i)</num><content>the member, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-158-7-a-ii"><num>(ii)</num><content>a member of the same multinational group;</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-158-7-b"><num>(b)</num><content>“<term refersTo="#term-domestic-leg-of-an-international-voyage" eId="term-domestic-leg-of-an-international-voyage">domestic leg of an international voyage</term>” means the t

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-158-7-c"><num>(c)</num><content>a lease of a ship is in effect for the period in which the practical effect of that lease and any associated arrangements (including any other lease) is that a person is in t

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-158-7-d"><num>(d)</num><content>“<term refersTo="#term-lessee" eId="term-lessee">lessee</term>”, in relation to a ship, means the person referred to in paragraph <ref href="#section-158-7-c">(c)</ref>;<

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-158-7-e"><num>(e)</num><content>“<term refersTo="#term-support-services" eId="term-support-services">support services</term>” means engineering, maintenance, cargo handling, catering and customer relations

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-158-8"><num>(8)</num><content>The member’s ancillary international shipping profit cap adjustment is to be calculated by taking the following steps—</

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-3-chapter-4-crossheading-adjustments-only-applicable-to-permanent-establishments"><heading>Adjustments only applicable

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-159"><num>159</num><heading>Permanent establishment income and expense attribution</heading><subsection eId="section-159-1"><num>(1)</num><content>Where a member of a multinational group is a permanent establishment fa

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-159-1"><num>(1)</num><content>Where a member of a multinational group is a permanent establishment falling within <ref href="#section-232-2-a">paragraph (a)</ref> of <ref href="#section-232">section 232</ref><ref hr

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-159-2"><num>(2)</num><content>Where a member of a multinational group is a permanent establishment falling within <ref href="#section-232-2-b">paragraph (b)</ref> of <ref href="#section-232">section 232</ref><ref hr

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-159-3"><num>(3)</num><content>Where a member of a multinational group is a permanent establishment falling within <ref href="#section-232-2-c">paragraph (c)</ref> of <ref href="#section-232">section 232</ref><ref hr

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-160"><num>160</num><heading>Attribution of losses between permanent establishment and main entity</heading><subsection eId="section-160-1"><num>(1)</num><content><ref href="#section-160-2">Subsection (2)</ref> applies

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-160-1"><num>(1)</num><content><ref href="#section-160-2">Subsection (2)</ref> applies where, on determining (ignoring this section) the adjusted profits of a member of a multinational group that is a permanent estab

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-160-2"><num>(2)</num><intro>So much of that loss as—</intro><level class="para1" eId="section-160-2-a"><num>(a)</num><content>is treated as an allowable expense of the main entity for the purposes of the comp

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-160-2-a"><num>(a)</num><content>is treated as an allowable expense of the main entity for the purposes of the computation of tax in the territory in which the main entity is located, and</content></leve

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-160-2-b"><num>(b)</num><content>is not set off against an item of income that is subject to tax under the laws of both the territory of the permanent establishment and the territory of the main entity,<

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-160-3"><num>(3)</num><content><ref href="#section-160-4">Subsections (4)</ref> and <ref href="#section-160-5">(5)</ref> apply where an amount (“<term refersTo="#term-the-relevant-amount" eId="term-the-relevant-amoun

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-160-4"><num>(4)</num><content>The relevant amount is to be excluded from the adjusted profits of the permanent establishment for the relevant period.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-160-5"><num>(5)</num><content>Where, on determining (ignoring this section) the adjusted profits of the permanent establishment for an accounting period after the relevant period, the permanent establishment has mad

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-160-6"><num>(6)</num><content>But <ref href="#section-160-5">subsection (5)</ref> only applies until the total amount treated as income of the main entity as a result of that subsection is equal to the relevant amou

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-160-7"><num>(7)</num><content>Where profits of the permanent establishment for an accounting period are treated as income of the main entity as a result of <ref href="#section-160-5">subsection (5)</ref>, those prof

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-3-chapter-4-crossheading-elections-to-treat-certain-amounts-differently"><heading>Elections to treat certain amounts d

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-161"><num>161</num><heading>Election to use realisation principle</heading><subsection eId="section-161-1"><num>(1)</num><intro>The filing member of a multinational group may elect that all of the group’s members in a

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-161-1"><num>(1)</num><intro>The filing member of a multinational group may elect that all of the group’s members in a territory, or all of the group’s members in that territory that are investment entities, are to u

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-161-1-a"><num>(a)</num><content>all assets and liabilities that are subject to fair value or impairment accounting, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-161-1-b"><num>(b)</num><content>tangible assets that are subject to fair value accounting or impairment accounting.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-161-2"><num>(2)</num><intro>Where such an election is in force in relation to members of multinational group in a territory—</intro><level class="para1" eId="section-161-2-a"><num>(a)</num><content>the underl

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-161-2-a"><num>(a)</num><content>the underlying profits of each of the group’s members for each of the accounting periods in respect of which the election is in force are to be adjusted so as to exclude gain

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-161-2-b"><num>(b)</num><intro>the carrying value of an asset or liability to which the election applies to be used for the purposes of determining gains or losses in respect of that asset or liability, is t

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-161-2-b-i"><num>(i)</num><content>the commencement of the first accounting period of the multinational group to which the election applied, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para2" eId="section-161-2-b-ii"><num>(ii)</num><content>the time the asset was acquired or the liability was incurred.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-161-3"><num>(3)</num><content><ref href="#schedule-15-paragraph-1">Paragraph 1</ref> of <ref href="#schedule-15">Schedule 15</ref> (long term elections) applies to an election under this section.</content></subs

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-161-4"><num>(4)</num><content>Where an election under this section has been revoked, the underlying profits of each member of a multinational group in respect of which the election was in force are to be adjusted in

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-161-5"><num>(5)</num><intro>To adjust the underlying profits of a member of a multinational group for the change in treatment of an asset or liability subject to an election under this section, subtract the carrying

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-161-5-a"><num>(a)</num><content>if the amount given is positive, add it to those profits, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-161-5-b"><num>(b)</num><content>if the amount is negative, subtract it from those profits.</content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-162"><num>162</num><heading>Election to reflect deductions for stock-based compensation</heading><subsection eId="section-162-1"><num>(1)</num><content>The filing member of a multinational group may make an election un

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-162-1"><num>(1)</num><content>The filing member of a multinational group may make an election under <ref href="#section-162">this section</ref> for the members of the group located in a territory to adjust their und

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-162-2"><num>(2)</num><intro>Where such an election has effect—</intro><level class="para1" eId="section-162-2-a"><num>(a)</num><content>the underlying profits of each such member is adjusted by substituting,

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-162-2-a"><num>(a)</num><content>the underlying profits of each such member is adjusted by substituting, for the amount of any expense for stock-based compensation, the amount that was allowed as a deduction

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-162-2-b"><num>(b)</num><content>where such a member has an expense for stock-based compensation that arises in connection with an option that expires without exercise, the underlying profits of that member

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-162-3"><num>(3)</num><intro>Where—</intro><level class="para1" eId="section-162-3-a"><num>(a)</num><content>the underlying profits of a member of a multinational group are adjusted in accordance with <ref hre

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-162-3-a"><num>(a)</num><content>the underlying profits of a member of a multinational group are adjusted in accordance with <ref href="#section-162-2">subsection (2)</ref> in respect of an amount of stock-b

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-162-3-b"><num>(b)</num><content>some expenses in respect of that compensation were recorded in the underlying profits of the member in one or more accounting periods before the election had effect, and<

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-162-3-c"><num>(c)</num><content>the sum of the expenses recorded in those periods exceeds the sum of what those expenses would have been had the election been in effect for those periods,</content></lev

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-162-4"><num>(4)</num><content><ref href="#schedule-15-paragraph-1">Paragraph 1</ref> of <ref href="#schedule-15">Schedule 15</ref> (long term elections) applies to an election under <ref href="#section-162">this sec

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-162-5"><num>(5)</num><intro>Where—</intro><level class="para1" eId="section-162-5-a"><num>(a)</num><content>the underlying profits of a member of a multinational group are adjusted in accordance with <ref hre

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-162-5-a"><num>(a)</num><content>the underlying profits of a member of a multinational group are adjusted in accordance with <ref href="#section-162-2">subsection (2)</ref>,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-162-5-b"><num>(b)</num><content>the election is revoked before all of the stock-based compensation has been paid, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-162-5-c"><num>(c)</num><content>the sum of amounts deducted in accordance with subsection (2) exceeds the sum of the financial account expense accrued that has been paid,</content></level>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-163"><num>163</num><heading>Election to spread certain capital gains over five years</heading><subsection eId="section-163-1"><num>(1)</num><content>The

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-163-1"><num>(1)</num><content>The filing member of a multinational group may elect that the net gain in respect of the disposal of local tangible assets by standard members of the group in a territory in an accounti

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-163-2"><num>(2)</num><content>To spread the net gain across those periods take the following steps—<blockList class="unordered none" ukl:Name="Uno

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-163-3"><num>(3)</num><content>For the purposes of <ref href="#section-163">this section</ref> any gain or loss arising from the transfer of assets between standard members of a multinational group is to be ignored.<

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-163-4"><num>(4)</num><intro>Where, as a result of an election under <ref href="#section-163">this section</ref>, the underlying profits of a member of a multinational group in an accounting period is adjusted, the f

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-163-4-a"><num>(a)</num><content>the effective tax rate for the member and the other members of that group located in the same territory, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-163-4-b"><num>(b)</num><content>the top-up amounts that those members would have.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-163-5"><num>(5)</num><intro><ref href="#section-206">Section 206</ref>—</intro><level class="para1" eId="section-163-5-a"><num>(a)</num><content>makes provision about the consequences of a recalculation (whic

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-163-5-a"><num>(a)</num><content>makes provision about the consequences of a recalculation (which may include the generation of an additional top-up amount), and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-163-5-b"><num>(b)</num><content>applies to recalculations under <ref href="#section-163-4">subsection (4)</ref>.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-163-6"><num>(6)</num><content>Where an election under <ref href="#section-163">this section</ref> has effect in relation to a member of a multinational group, any amount of tax with respect to any gains or loss in r

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-163-7"><num>(7)</num><content><ref href="#schedule-15-paragraph-2">Paragraph 2</ref> of <ref href="#schedule-15">Schedule 15</ref> (annual elections) applies to an election under <ref href="#section-163">this sectio

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-163-8"><num>(8)</num><content>In <ref href="#section-163">this section</ref> “<term refersTo="#term-local-tangible-asset" eId="term-local-tangible-asset">local tangible asset</term>” means immovable property in the

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-164"><num>164</num><heading>Election to exclude intra-group transactions</heading><subsection eId="section-164-1"><num>(1)</num><content>The filing member of a multinational group may elect that standard members of the

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-164-1"><num>(1)</num><content>The filing member of a multinational group may elect that standard members of the group that are located in the same territory and are included in a tax consolidation group are to apply

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-164-2"><num>(2)</num><intro>Where an election under <ref href="#section-164">this section</ref> has effect—</intro><level class="para1" eId="section-164-2-a"><num>(a)</num><content>the underlying profits of t

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-164-2-a"><num>(a)</num><content>the underlying profits of those members are to be adjusted accordingly in the accounting periods for which the election has effect, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-164-2-b"><num>(b)</num><content>the underlying profits of those members are to be adjusted for the first accounting period for which the election has effect so as to ensure that there are no duplications or

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-164-3"><num>(3)</num><content><ref href="#schedule-15-paragraph-1">Paragraph 1</ref> of <ref href="#schedule-15">Schedule 15</ref> (long term elections) applies to an election under <ref href="#section-164">this sec

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-164-4"><num>(4)</num><content>Where an election under <ref href="#section-164">this section</ref> is revoked, the underlying profits of the members to whom the election applied are to be adjusted in the first accoun

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-164-5"><num>(5)</num><content>For the purposes of this section, members of a multinational group in a territory are included in a “tax consolidation group” if under the law of that territory the income, expenses, ga

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-165"><num>165</num><heading>Election to have excluded equity gains and losses included</heading><subsection eId="section-165-1"><num>(1)</num><content>The filing member of a multinational group may elect that qualifyin

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-165-1"><num>(1)</num><content>The filing member of a multinational group may elect that qualifying excluded equity gains or losses of the standard members of the group in a territory are to be treated as not being e

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-165-2"><num>(2)</num><intro>Excluded equity gains or losses are “qualifying” if—</intro><level class="para1" eId="section-165-2-a"><num>(a)</num><content>those gains or losses are subject to covered taxes (as

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-165-2-a"><num>(a)</num><content>those gains or losses are subject to covered taxes (as taxable gains or allowable losses) in that territory, or</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-165-2-b"><num>(b)</num><content>in the case of gains or losses falling within <ref href="#section-142">section 142</ref><ref href="#section-142-2">(2)</ref><ref href="#section-142-2-a">(a)</ref> that are no

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-165-3"><num>(3)</num><content>Paragraph <ref href="#schedule-15-paragraph-1">1</ref> of <ref href="#schedule-15">Schedule 15</ref> (long term elections) applies to an election under <ref href="#section-165-1">subsec

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-165-4"><num>(4)</num><intro>But a revocation of the election under that paragraph does not have effect in relation to equity gains or losses in respect of an ownership interest if—</intro><level class="para1" eI

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-165-4-a"><num>(a)</num><content>any member’s adjusted profits have included a loss in respect of that ownership interest as a result of <ref href="#section-165-1">subsection (1)</ref>, and</content></le

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-165-4-b"><num>(b)</num><content>that loss would otherwise have been excluded from those profits as a result of <ref href="#section-142">section 142</ref><ref href="#section-142-1">(1)</ref>.</content></

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-166"><num>166</num><heading>Election in relation to hedging currency risk in ownership interests</heading><subsection eId="section-166-1"><num>(1)</num><content>The filing member of a multinational group may elect that

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-166-1"><num>(1)</num><content>The filing member of a multinational group may elect that the underlying profits of a member of the group specified in the election are to be adjusted to exclude qualifying gains or los

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-166-2"><num>(2)</num><intro>A gain or loss arising from fluctuations in exchange rates is “qualifying” to the extent—</intro><level class="para1" eId="section-166-2-a"><num>(a)</num><content>the gain or loss

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-166-2-a"><num>(a)</num><content>the gain or loss is attributable to an instrument intended to act as a hedge against currency risk in ownership interests held by the member or another member of the group, o

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-166-2-b"><num>(b)</num><content>the gain or loss is recognised in other comprehensive income in the consolidated financial statements of the ultimate parent,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-166-2-c"><num>(c)</num><content>the instrument is considered an effective net investment hedge under the authorised accounting standard upon which those statements are prepared,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-166-2-d"><num>(d)</num><content>where the instrument is held by the member, the economic and accounting effect of the hedge has not been transferred to any other entity, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-166-2-e"><num>(e)</num><content>where the instrument is not held by the member, the economic and accounting effect of the hedge has been transferred to the member.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-166-3"><num>(3)</num><intro>An ownership interest in an entity held by a member of a multinational group falls within <ref href="#section-166-3">this subsection</ref> if the members of that group do not, between the

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-166-3-a"><num>(a)</num><content>profits,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-166-3-b"><num>(b)</num><content>capital,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-166-3-c"><num>(c)</num><content>reserves, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-166-3-d"><num>(d)</num><content>voting rights.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-166-4"><num>(4)</num><content>Paragraph <ref href="#schedule-15-paragraph-1">1</ref> of <ref href="#schedule-15">Schedule 15</ref> (long term elections) applies to an election under <ref href="#section-166">this sec