WHO Epidemiological Brief: highlights in the WHO European Region: No. 13, 6 March 2011
Schedule 1 contains provision extending foster-care relief to other forms of care.
Part 6 of ITTOIA 2005 (exempt income) is amended as follows.
In section 744 (payments to adopters: England and Wales)—
the existing provision becomes subsection (1),
in that subsection, omit the “and” before paragraph (e) and after that paragraph insert—,
after that subsection insert—, and
in the heading, after “adopters” insert “ , etc ”.
In section 745 (payments to adopters: Scotland)—
the existing provision becomes subsection (1),
in that subsection, omit the “and” before paragraph (d) and after that paragraph insert—,
after that subsection insert—, and
in the heading, after “adopters” insert “ , etc ”.
In section 746 (payments to adopters: Northern Ireland)—
the existing provision becomes subsection (1),
in that subsection, omit the “and” before paragraph (c) and after that paragraph insert—,
after that subsection insert—, and
in the heading, after “adopters” insert “ , etc ”.
The amendments made by this section have effect in relation to the tax year 2010-11 and subsequent tax years.
Chapter 2 of Part 7 of ITTOIA 2005 (qualifying care relief) is amended as follows.
In section 824 (capital allowances: introduction), after subsection (2) insert—
For section 825 substitute—
The amendments made by this section have effect in relation to chargeable periods ending on or after the day on which this Act is passed (“the commencement day”).
For anyone who was a relevant individual for the most recent chargeable period ending before the commencement day, sections 825B and 825C of ITTOIA 2005 have effect (on and after that day) as if references in those sections to section 825A were references to section 825 as it was in force immediately before the commencement day.
Section 378 of ITEPA 2003 (deductions from seafarers' earnings: eligibility) is amended as follows.
In subsection (1)(a), after “relevant taxable earnings” insert “ or EEA-resident earnings ”.
After subsection (5) insert—
The amendments made by this section have effect for the tax year 2011-12 and subsequent tax years but only in relation to eligible periods beginning on or after 6 April 2011.
Schedule 2 contains provision about venture capital schemes.
Schedule 5 to ITEPA 2003 (enterprise management incentives) is amended as follows.
UK permanent establishment (see paragraph 14A).
After paragraph 14 insert—
In paragraph 15(1) (meaning of “qualifying trade”), omit paragraph (a) (requirement that trade be carried on wholly or mainly in United Kingdom).
The amendments made by this section have effect in relation to options granted on or after the day on which this Act is passed.
Section 646 of ITTOIA 2005 (adjustments between settlor and trustees etc) is amended as follows.
For subsection (4) substitute—
In subsection (5), for “excess” substitute “ repayment ”.
After subsection (6) insert—
In subsection (7), for “Any” substitute “ Subject to subsections (6A) and (6B), any ”.
The amendments made by this section have effect in relation to repayments of tax for the tax year 2010-11 or any subsequent tax year.
In Chapter 16 of Part 15 of ITA 2007, after section 963 (collection of income tax on certain payments by other persons) insert—
Schedule 3 contains provision about company distributions.
Schedule 4 contains provision about the issue of stock dividends by a company UK REIT or the principal company of a group UK REIT.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
amendments of Part 7 of TIOPA 2010 (tax treatment of financing costs and income of companies that are members of a group) and consequential amendments of other provisions of that Act, and
provision enabling a group, by election, to defer the application in relation to it of certain amendments contained in the Schedule.
Schedule 6 contains provision about claims for group relief from corporation tax made by companies which are members of, or owned by, a consortium.
Part 13 of CTA 2009 (additional relief for expenditure on research and development) is amended as follows.
In section 1052 (qualifying expenditure on in-house direct R&D)—
in subsection (1), for “conditions A to E” substitute “ conditions A, B, D and E ”, and
omit subsection (4) (condition C: intellectual property created as result of research and development to which expenditure is attributable to be vested in company).
In section 1053 (qualifying expenditure on contracted out R&D)—
in subsection (1)(b), for “conditions A to D” substitute “ conditions A, C and D ”, and
omit subsection (3) (condition B: same intellectual property condition).
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
in subsection (1), for “conditions A to E” substitute “conditions A to C and E”, and
omit subsection (5) (condition D: same intellectual property condition).
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
in subsection (1)(b), for “conditions A to F” substitute “conditions A to D and F”, and
omit subsection (6) (condition E: same intellectual property condition).
Omit section 1139 (meaning of “intellectual property”).
In Schedule 4 to CTA 2009 (index of defined expressions), omit the entry relating to “intellectual property (in Part 13)”.
The amendments made by this section have effect in relation to expenditure incurred by a company in an accounting period ending on or after 9 December 2009.
Section 1201 of CTA 2009 (film tax credit claimable where company has surrenderable loss) is amended as follows.
In subsection (2)—
for “any period” substitute “ an accounting period ”, and
in paragraph (a), for “the company's loss” substitute “ the company's available loss ”.
After that subsection insert—
In subsection (4), in the definition of “S”, for “surrendered in previous periods” substitute “ previously surrendered ”.
After that subsection insert—
In section 1202(4) of that Act (company's loss reduced by amount surrendered), for “loss in the separate film trade” substitute “ available loss ”.
The amendments made by this section have effect in relation to accounting periods ending on or after 9 December 2009.
In relation to those accounting periods the amendments, and corresponding amendments of paragraphs 6 and 11 of Schedule 5 to FA 2006, are to be treated as always having had effect.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Chapter 1 of Part 12 of ICTA (insurance companies etc) is amended as follows.
Section 444AB (transfer schemes: charge on transferor in respect of relevant non-transferred assets and retained assets) is amended as follows.
In subsection (1)(b), for “or condition” substitute “, AA or”.
(“non long-term fund transferred assets”).
After that subsection insert—
In subsection (4), for “relevant non-transferred assets or retained assets (or both)” substitute “non long-term fund transferred assets, non-profit fund transferred assets or retained assets”.
In subsection (5), for “relevant non-transferred assets;” substitute “non long-term fund transferred assets, section 444ABAA makes provision for its calculation in relation to non-profit fund transferred assets”.
In subsection (8), for “paragraph (2)(a)” substitute “subsection (2)(a) and (b)”.
In subsection (1) of section 444ABA (relevant amount in relation to relevant non-transferred assets), for “relevant non-transferred assets” substitute “non long-term fund transferred assets”; and for the heading of that section substitute “Non long-term fund transferred assets”.
After that section insert—
The amendments made by this section have effect in relation to transfers of business taking place on or after 22 June 2010.
In section 223(8) of TCGA 1992 (amount of relief), before the “and” at the end of paragraph (a) insert—.
In section 224 of that Act (amount of relief: further provisions), insert at the end—
In that Act, after section 225C insert—
The amendments made by this section have effect in relation to disposals made on or after 9 December 2009.
Until the coming into force of paragraph 11 of schedule 12 to the Public Services Reform (Scotland) Act 2010, the reference to that provision in section 225D(4) of TCGA 1992 is to section 2(16) of the Regulation of Care (Scotland) Act 2001.
After section 198G of TCGA 1992 insert—
The amendment made by this section has effect in relation to disposals made on or after 22 April 2009 (whether the acquisition takes place before, on or after that date).
Schedule 7 contains provision about first-year allowances on zero-emission goods vehicles.
Schedule 8 contains—
provision about input tax, and
provision about supplies under paragraph 5(4) of Schedule 4 to VATA 1994.
In section 9A of VATA 1994 (reverse charge on gas and electricity supplied by persons outside the United Kingdom)—
for subsection (5) substitute—, and
in the heading, for “and electricity” substitute “ , electricity, heat or cooling ”.
In Schedule 4 to VATA 1994 (matters to be treated as supply of goods or services), in paragraph 3 after “refrigeration” insert “ or other cooling, ”.
The amendments made by this section have effect in relation to supplies made on or after 1 January 2011.
Schedule 8 to VATA 1994 (zero-rating) is amended as follows.
In Note (A1) of Group 8 (transport: definition of “qualifying aircraft” etc), for paragraph (b) substitute—
After that Note insert—
The amendments made by this section have effect in relation to supplies made, and acquisitions and importations taking place, on or after 1 January 2011.
In Schedule 8 to VATA 1994 (zero-rating), in Group 8—
in item 4 (transport of passengers), for “the Post Office company” substitute “ a universal service provider ”, and
after Note (4D) insert—
In Schedule 9 to that Act (exemptions), for Group 3 (postal services) substitute—
The following provisions are omitted—
in section 96(1) of VATA 1994, the definition of “the Post Office company”, and
paragraph 22(3) and (4) of Schedule 8 to the Postal Services Act 2000.
The amendments made by this section have effect in relation to supplies made on or after 31 January 2011.
In section 4 of TPDA 1979 (calculation of duty on long cigarettes)— and, in the heading, for “9 cm.” substitute “ 8 cm. ”.
for “than 9 cm.” substitute “ than 8 cm. ”, and
for “each 9 cm. or part thereof” substitute “ the first 8 cm. of it, each 3 cm. portion of the remainder of it (if any) and the remaining portion of it (if any) ”,
The amendments made by this section come into force on 1 January 2011.
In section 42 of FA 1996 (amount of landfill tax), for subsection (4) substitute—
The amendment made by this section has effect in relation to disposals made, or treated as made, on or after 1 April 2011.
Schedule 9 contains amendments of FA 2009 relating to late payment interest and repayment interest on amounts of corporation tax and petroleum revenue tax.
That Schedule comes into force on such day as the Treasury may by order appoint.
An order under subsection (2)—
may commence a provision generally or only for specified purposes, and
may appoint different days for different provisions or for different purposes.
The Treasury may by order make any incidental, supplemental, consequential, transitional, transitory or saving provision which appears appropriate in consequence of, or otherwise in connection with, that Schedule.
An order under subsection (4) may—
make different provision for different purposes, and
make provision amending, repealing or revoking any Act or subordinate legislation whenever passed or made (including this Act and any Act amended by it).
An order under this section is to be made by statutory instrument.
A statutory instrument containing an order under subsection (4) which includes provision amending or repealing any provision of an Act is subject to annulment in pursuance of a resolution of the House of Commons.
Schedule 10 contains provision amending Schedule 55 to FA 2009 (penalties in respect of failures to make returns and other documents relating to liabilities for tax).
Schedule 10 comes into force on such day as the Treasury may by order appoint.
An order under subsection (2)—
may commence a provision generally or only for specified purposes, and
may appoint different days for different provisions or for different purposes.
The Treasury may by order make any incidental, supplemental, consequential, transitional, transitory or saving provision which appears appropriate in consequence of, or otherwise in connection with, that Schedule.
An order under subsection (4) may—
make different provision for different purposes, and
make provision amending, repealing or revoking any Act or subordinate legislation whenever passed or made (including this Act and any Act amended by it).
An order under this section is to be made by statutory instrument.
A statutory instrument containing an order under subsection (4) which includes provision amending or repealing any provision of an Act is subject to annulment in pursuance of a resolution of the House of Commons.
Schedule 11 contains provision amending Schedule 56 to FA 2009 (penalties in respect of failures to comply with obligations to pay tax).
Schedule 11 comes into force on such day as the Treasury may by order appoint.
An order under subsection (2)—
may commence a provision generally or only for specified purposes, and
may appoint different days for different provisions or for different purposes.
The Treasury may by order make any incidental, supplemental, consequential, transitional, transitory or saving provision which appears appropriate in consequence of, or otherwise in connection with, that Schedule.
An order under subsection (4) may—
make different provision for different purposes, and
make provision amending, repealing or revoking any Act or subordinate legislation whenever passed or made (including this Act and any Act amended by it).
An order under this section is to be made by statutory instrument.
A statutory instrument containing an order under subsection (4) which includes provision amending or repealing any provision of an Act is subject to annulment in pursuance of a resolution of the House of Commons.
Schedule 12 contains—
provision amending Part 4 of FA 2003 (stamp duty land tax) in respect of the recovery of overpaid tax etc, and
provision amending Schedule 2 to OTA 1975 (management and collection of petroleum revenue tax) in respect of the recovery of overpaid tax etc.
The amendments made by Schedule 12 have effect in relation to claims made on or after 1 April 2011.
The Treasury may by order make any incidental, supplemental, consequential, transitional, transitory or saving provision which appears appropriate in consequence of, or otherwise in connection with, that Schedule.
An order under this section may—
make different provision for different purposes, and
make provision amending, repealing or revoking any Act or subordinate legislation whenever passed or made (including this Act and any Act amended by it).
An order under this section is to be made by statutory instrument.
A statutory instrument containing an order under this section which includes provision amending or repealing any provision of an Act is subject to annulment in pursuance of a resolution of the House of Commons.
Schedule 13 contains provision about information and inspection powers, record-keeping and time limits for assessments and claims involving excise duties.
The amendments made by that Schedule come into force on such day as the Treasury may by order made by statutory instrument appoint.
An order under subsection (2)—
may appoint different days for different provisions or for different purposes, and
may include transitional provision and savings.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In section 67 of the Pensions Act 2008 (duty to establish pension scheme) —
omit subsection (3), and
in subsection (4), for “that Chapter” substitute “ Chapter 2 of Part 4 of the Finance Act 2004 ”.
Schedule 14 contains provision about the taxation of settlements the purpose of which is to make compensation payments to or in respect of individuals affected by an asbestos-related condition.
In this Act—
“TMA 1970” means the Taxes Management Act 1970;
The amendments made by this Schedule have effect in relation to distributions made on or after the day on which this Act is passed.
Section 143 (which makes provision limiting the amount of group relief that is available in cases where the surrendering company is owned by a consortium) is amended as follows. In subsection (3)— In subsection (4)(a), for “paragraphs (a) to (c)” substitute “paragraphs (a) to (d)”.
Section 144 (which makes provision limiting the amount of group relief that is available in cases where the claimant company is owned by a consortium) is amended as follows. In subsection (3)— In subsection (4)(a), for “paragraphs (a) to (c)” substitute “paragraphs (a) to (d)”.
“TPDA 1979” means the Tobacco Products Duty Act 1979;
Schedule 54 to FA 2009 (repayment interest) is amended as follows.
Insert at the beginning—
In Part 2 (special provision as to repayment interest start date), after paragraph 9A insert—
ITTOIA 2005 is amended as follows.
The amendments made by paragraphs 2(2)(b) and (c), (3) to (6) and 4(2) and (3) have effect in relation to accounting periods ending on or after the commencement day. The amendments mentioned in sub-paragraph (1) do not have effect in relation to shares or securities held by a company (“the investing company”) if the shares or securities— In this paragraph “protected money” means—
Part 9A of CTA 2009 (company distributions) is amended as follows. In section 931A (charge to tax), omit subsection (2) and for subsection (3) substitute— In section 931H (dividends derived from transactions not designed to reduce tax)— After section 931R insert—
Section 1285 of CTA 2009 (UK company distributions exempt from corporation tax) and section 208 of ICTA (which was the predecessor of section 1285 of CTA 2009) are to be treated as always having had effect (before their repeal) as if references in them to a distribution included a distribution to which sub-paragraph (2) applies. This sub-paragraph applies to a distribution that— Section 22 of TCGA 1992 (disposal where capital sums derived from assets) is to be treated as always having had effect as if subsection (1) of that section did not apply where a company receives, or becomes entitled to receive— Section 122 of that Act (deemed disposal on receipt of certain distributions) is to be treated as always having had effect as if references in it to a capital distribution did not include a distribution that is exempt from corporation tax under section 1285 of CTA 2009 or section 208 of ICTA, as modified by sub-paragraph (1).
In section 973 of ITA 2007 (REITs: income tax due in respect of distributions), after subsection (3) insert—
In section 113 (functions conferred on “the Inland Revenue”), omit subsection (3)(b)(ii).
In section 1(5) (overview of Act), for “foster-care” substitute “ qualifying care ”.
Schedule 10 (returns, enquiries, assessments and appeals) is amended as follows. In the heading at the beginning of Part 6, after “Relief in the case of” insert “overpaid tax or”. In paragraph 45(1) (determination of market value by relevant tribunal), for “paragraphs 34(6) or” substitute “paragraph”.
In section 23 (rent-a-room and foster-care relief)— Accordingly—
In Schedule 11A (claims not included in returns etc), in paragraph 14(5) (application of provisions of Schedule 10)—
for “and 44” substitute “, 44 and 45”, and
omit “(settling of appeals by agreement)”.
In section 688(2)(b) (income charged), for “foster care” substitute “ qualifying care ”.
In the heading of Part 7, for “FOSTER-CARE” substitute “ QUALIFYING CARE ”.
“VATA 1994” means the Value Added Tax Act 1994;
omit the entries for “foster-care receipts” and “foster-care relief”,
After section 331 (companies with net financing deduction or net financing income that is small) insert—
After Schedule 54 to FA 2009 insert—
Schedule 2 to OTA 1975 (management and collection of petroleum revenue tax) is amended as follows.
provides qualifying care (in Chapter 2 of Part 7) section 805A provides shared lives care (in Chapter 2 of Part 7) section 806A
In the Table in paragraph 1(1) (applying provisions of TMA 1970 in relation to management and collection of petroleum revenue tax), omit the entry relating to section 33 of TMA 1970.
qualifying care receipts (in Chapter 2 of Part 7) section 805 qualifying care relief (in Chapter 2 of Part 7) section 803(1)
In paragraph 10(1A) (time limit for assessments and determinations) for “and 12B” substitute “, 12B and 13E”.
residence (in Chapter 2 of Part 7) section 806B
In paragraph 12(1B) (disapplication of time limits for further assessments and determinations)—
omit the “or” at the end of paragraph (a), and
after that paragraph insert—.
After paragraph 13 insert—
Paragraph 14 (appeals) is amended as follows. A participator who has made a claim under paragraph 13A may appeal from the decision on the claim by notice in writing given to HMRC within 30 days after the date of issue of the notice of the decision. In sub-paragraph (9) for “section 33 of the Taxes Management Act 1970 as applied by paragraph 1 above” substitute “paragraph 13A”. In sub-paragraph (10) for “the appeal that” substitute “an appeal under sub-paragraph (1)”. If an appeal under sub-paragraph (1A) is notified to the tribunal and it appears to the tribunal that the decision is wrong, the tribunal shall substitute such decision as may be required.
in the entry for “total foster-care receipts”, for “foster-care” substitute “ qualifying care ”.
In consequence of the amendment made by paragraph 3(2), omit paragraph 562(6) of Schedule 1 to CTA 2010.
In paragraphs 6 and 7 “the commencement day” means such day as the Treasury may by order appoint. An order may appoint different days for different provisions or different purposes.
Section 24 of VATA 1994 (input tax and output tax) is amended as follows. Omit subsection (3) (accommodation used for domestic purposes by company director etc). In subsection (5) (goods or services used partly for business purposes), for the words after “other purposes” substitute— After that subsection insert— In subsection (6) (powers to make regulations), after paragraph (d) insert— After that subsection insert— Omit subsection (7) (definition of “director” etc). The amendments made by sub-paragraphs (2), (4) and (7) come into force on 1 January 2011 and apply in relation to VAT incurred by a taxable person on or after that date. For the purposes of sub-paragraph (8), the VAT “incurred” by a person in respect of an asset is— and VAT within paragraphs (a) to (d) is incurred at the time of the supply, acquisition or importation in question.
In section 26 of VATA 1994 (input tax allowable under section 25), in subsection (4) for “and supplementary” substitute “, supplementary, consequential and transitional”.
“OTA 1975” means the Oil Taxation Act 1975;
Chapter 2 of Part 7 of ITTOIA 2005 (foster-care relief) is amended as follows.
This paragraph applies if— Sections 824 to 827 of ITTOIA 2005 (capital allowances) are to have effect as if the individual had been a relevant individual for— “The pre-commencement tax year” means the tax year immediately preceding— “Relevant concession” has the same meaning as in paragraph 36.
Part 7 of TIOPA 2010 (tax treatment of financing costs and income) is amended as follows.
In section 292(5)(a) (statement of allocated exemptions: requirements), for “and C” substitute “, C and D”.
Section 803 (overview of Chapter 2) is amended as follows. For subsection (1) substitute— In subsections (2) and (5), for “foster-care” substitute “ qualifying care ”.
Section 804 (person who qualifies for relief) is amended as follows. For subsection (1) substitute— In subsection (3), for “foster-care” substitute “ qualifying care ”. After that subsection insert—
After section 804 insert—
In section 805(1) (meaning of “foster-care receipts”)— Accordingly, in the heading of section 805, for “foster-care” substitute “ qualifying care ”.
After section 805 insert—
After section 806 insert—
In section 807 (calculation of “total foster-care receipts”), for “foster-care” substitute “ qualifying care ”. Accordingly, in the heading of that section, for “foster-care” substitute “ qualifying care ”.
In section 808(1)(b) (the individual's limit), before “child” insert “ adult or ”.
For section 809 substitute—
In section 810(1) (share of fixed income: income period not a year), for “foster-care” substitute “ qualifying care ”.
Section 811 (the amount per child) is amended as follows. For subsection (1) substitute— In subsection (3), for “subsection (2)” substitute “ subsection (1A) or (2) ”. In subsection (4), for “foster care for a child” substitute “ qualifying care for an adult or child ”. Accordingly, in the heading, before “child” insert “ adult or ”.
For section 812 substitute—
In section 813(1) (full foster-care relief: trading income), for “foster-care” substitute “ qualifying care ”. Accordingly, in the heading of section 813, for “foster-care” substitute “ qualifying care ”.
In section 814(1) (full foster-care relief: income chargeable under Chapter 8 of Part 5), for “foster-care” substitute “ qualifying care ”. Accordingly, in the heading of section 814, for “foster-care” substitute “ qualifying care ”.
In section 815(a) and (b) (alternative calculation of profits: introduction), for “foster-care” substitute “ qualifying care ”.
In section 816(1) and (2)(a) (alternative calculation of profits: trading income), for “foster-care” substitute “ qualifying care ”.
In section 817(1) and (2)(a) (alternative calculation of profits: income chargeable under Chapter 8 of Part 5), for “foster-care” substitute “ qualifying care ”.
In section 818(1)(a) and (b) (election for alternative method of calculating profits), for “foster-care” substitute “ qualifying care ”.
In section 819(1)(b) (adjustment of assessment), for “foster care” substitute “ qualifying care ”.
In section 820(a) and (b) (periods of account not ending on 5th April), for “foster-care” substitute “ qualifying care ”.
Section 821 (meaning of “relevant limit”) is amended as follows. In subsection (1)— In subsection (2), before “child”, in both places where it occurs, insert “ adult or ”.
In section 822(1) (full relief), for “foster-care” substitute “ qualifying care ”.
In section 823(1)(a) and (2)(a) (alternative method of calculating profits), for “foster-care” substitute “ qualifying care ”.
In section 824(1)(a) and (2)(b) (capital allowances: introduction), for “foster-care” substitute “ qualifying care ”.
In section 825(2) and (4)(a) (carried forward unrelieved qualifying expenditure), for “foster care” substitute “ qualifying care ”.
In section 826(b) (excluded capital expenditure), for “foster care” substitute “ qualifying care ”.
In section 827(a) (excluded capital expenditure: subsequent treatment of asset), for “foster care” substitute “ qualifying care ”.
Accordingly, for the heading of Chapter 2 of Part 7 of ITTOIA 2005 substitute “ qualifying care relief ”.
Part 6 of ITA 2007 (venture capital trusts) is amended as follows. In section 274 (requirements for the giving of approval)— In section 275(3)(b) (alternative requirements for the giving of approval), for “30%” substitute “ 70% ”. In section 278(1) (conditions relating to value of investments: general), for “30%” substitute “ 70% ”. In section 280(2) (conditions relating to qualifying holdings and eligible shares), for “30%” substitute “ 70% ”. In section 285 (interpretation of Chapter 3 of Part 6), for subsection (3) substitute— In section 286 (qualifying holdings: introduction), in subsection (3), before paragraph (a) insert—. Before section 287 insert— In section 289(5) (the proportion of eligible shares requirement), for “285(3)” substitute “ 285(3A) and (3B) ”. In section 291 (carrying on of qualifying activity requirement)— In section 300(2) (meaning of “qualifying trade”), for paragraphs (a) and (b) substitute—. After section 302 (and before the italic heading “Excluded activities”) insert— In section 313 (interpretation of Chapter 4 of Part 6)—
Chapter 4 of Part 5 of CTA 2010 (claims for group relief) is amended as follows.
In section 137A(4) of CEMA 1979 (recovery of overpaid excise duty), for “three years” substitute “4 years”.
In Schedule 3 to FA 2001 (excise duty: payments by Commissioners in case of error or delay), in each of the following provisions, for “three years” substitute “4 years”—
paragraph 7(1)(d),
paragraph 8(1)(e),
paragraph 9(1)(g), and
paragraph 10(1)(b).
In this Act— “FA”, followed by a year, means the Finance Act of that year; “F(No.2)A”, followed by a year, means the Finance (No.2) Act of that year.
“CAA 2001” means the Capital Allowances Act 2001;
The amendments made by this Schedule have effect for the tax year 2010-11 and subsequent tax years. But an individual within sub-paragraph (3) may elect to be treated for income tax purposes as if those amendments had effect instead for the tax year 2011-12 and subsequent tax years (and accordingly to remain entitled, for the tax year 2010-11, to the benefit of any relevant concession so far as applicable to the individual). An individual is within this sub-paragraph if the individual has qualifying care receipts for the tax year 2010-11 in respect of the provision of shared lives care (with or without qualifying care receipts in respect of the provision of foster care). A relevant concession is an existing HMRC concession (within the meaning of section 160 of FA 2008)— An election under sub-paragraph (2) must be made on or before the first anniversary of the normal self-assessment filing date for the tax year 2010-11 (or such later date as an officer of Revenue and Customs may, in a particular case, allow).
In section 260(9) (introduction), after “interpretative” insert “and supplementary”.
In section 129 (overview of Chapter), in subsection (2), for “Sections 130 to 134” substitute “Sections 130 to 134A”.
The amendments made by this Schedule have effect in relation to accounting periods beginning on or after 12 July 2010.
In section 130(2) (group relief claims on amounts surrenderable under Chapter 2), in Requirement 3—
in paragraph (c), for “section 133(1), (3) and (4)” substitute “section 133(1) and (3) to (8)”, and
in paragraph (d), for “section 133(2), (3) and (4)” substitute “section 133(2) to (8)”.
Section 133 (conditions to be met for consortium claims for group relief) is amended as follows. In subsection (1)— In subsection (2)— After subsection (4) insert—
After section 134 (meaning of “UK related” company) insert—
Section 146 (maximum amount of group relief in consortium claims) is amended as follows. In subsection (3)— In subsection (6), at the end insert “, assuming that the link company was UK related.” In subsection (8)—
This Act may be cited as the Finance (No. 3) Act 2010.
Section 1
Section 5
Part 5 of ITA 2007 (enterprise investment scheme) is amended as follows. In section 179 (meaning of “qualifying business activity”)— In section 180 (overview of Chapter 4), before paragraph (a) insert—. Before section 181 insert— After section 191 (and before the italic heading “Excluded activities”) insert—
Section 305 (financing income amounts of a company) is amended as follows. In subsection (1), for “or C” substitute “, C or D”. After subsection (5) insert— In subsection (6), for “or C” (in both places) substitute “, C or D”. After that subsection insert—
Section 332 (the available amount) is amended as follows. In subsection (1)— After subsection (1) insert—
Section 271 of TCGA 1992 (other miscellaneous exemptions) is amended as follows. After subsection (1)(e) insert—. After subsection (1) insert— The amendments made by this paragraph are treated as having come into force on 6 April 2006.
After section 332 (the available amount) insert—
After section 336 (meaning of accounting expressions used in this Chapter) insert—
“VERA 1994” means the Vehicle Excise and Registration Act 1994.
Chapter 1 of Part 16 of ITA 2007 (definitions) is amended as follows. In section 989 (the definitions), omit the definition of “permanent establishment”. After section 1007 insert—
The amendments made by paragraph 1 have effect in relation to shares issued on or after the commencement day. The amendments made by paragraph 2(2)(a) and (d) have effect in relation to accounting periods ending on or after the commencement day (and have effect in relation to shares issued at any time). The amendments made by paragraphs 2(7), (8) and (10) to (12), 3, 4(4) and 5 have effect in relation to shares or securities issued on or after the commencement day. The amendments made by paragraph 2(9) and (13) have effect in relation to shares issued at any time.
In section 989 of ITA 2007 (definitions for the purposes of the Income Tax Acts), in the definition of “distribution”, after “Chapters 2 to 5 of Part 23 of CTA 2010” insert “ , disregarding section 1027A of that Act ”.
The amendments made by this Schedule have effect in relation to distributions made on or after 1 July 2009. An amendment corresponding to that made by paragraph 1, having effect in relation to distributions made on or after 1 July 2009, is to be treated as having been made in section 211 of ICTA.
Part 12 of CTA 2010 (Real Estate Investment Trusts) is amended as follows.
In Schedule 9 to TIOPA 2010 (transitionals and savings), in paragraph 32(3) (exclusion of certain debits and credits), for “or C” substitute “, C or D”.
If an authorised corporate entity makes an election under this paragraph, the amendments made by paragraphs 4 and 5(3) and (4) do not have effect in relation to any period of account of the worldwide group that begins before the day on which this Act is passed. The election— The following are authorised corporate entities in relation to the worldwide group— The election is irrevocable. In this paragraph “the appropriate person”, in relation to an authorised corporate entity, means— Subsections (3) and (4) of section 108 of TMA 1970 (responsibility of company officers: meaning of “proper officer”) apply for the purposes of this paragraph as they apply for the purposes of that section. In this paragraph “the ultimate UK parent”, in relation to the worldwide group, means an entity that— The following expressions have the same meaning in this paragraph as they have in Part 7 of TIOPA 2010—
Schedule 4 to that Act (index of defined expressions) is amended as follows. In column 2 of the entry for “eligible shares (in Chapter 3 of Part 6)”, for “285(3)” substitute “ 285(3A) and (3B) ”. In column 1 of the entry for “the 30% eligible shares condition (in Chapter 3 of Part 6)”, for “30%” substitute “ 70% ”. permanent establishment (except in Part 5 and Chapter 4 of Part 6) section 1007A permanent establishment (in Part 5) section 191A permanent establishment (in Chapter 4 of Part 6) section 302A
Section 530 (condition as to distribution of profits) is amended as follows. In subsection (1), omit paragraph (b) (but not the word “and” at the end of it). In subsection (4), omit paragraph (a) (including the word “and” at the end of it). After subsection (6) insert—
In section 549 (distributions: supplementary), after subsection (2) insert—
In section 550 (attribution of distributions), in subsection (2)(a), for “payments” substitute “distributions”.
In section 553 (meaning of “holder of excessive rights”), in subsection (2)(a), for “dividends” substitute “distributions”.
After section 554 (regulations: distributions to holders of excessive rights) insert—
Section 564 (breach of condition as to distribution of profits) is amended as follows. In subsection (5)(a), omit “by way of dividend”. After subsection (9) insert—
After section 599 (calculation of profits) insert—
In section 605 (property rental business: exclusion of business producing listed income), after subsection (2) insert—
Section 9
Part 23 of CTA 2010 (company distributions) is amended as follows. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . After section 1027 insert—
TCGA 1992 is amended as follows. In section 22 (disposal where capital sums derived from assets), after subsection (3), insert— In section 122 (deemed disposal on receipt of certain distributions), after subsection (5) insert—
If a company so elects, this Schedule has effect in relation to a relevant distribution received by the company as if— An election under this paragraph has effect only in relation to such distributions as are specified in the election. In this paragraph “relevant distribution” means a distribution made before 22 June 2010.
Section 262 (UK net debt of the worldwide group for period of account of worldwide group) is amended as follows. In subsection (1)— In subsection (8), in paragraphs (a) and (b), after “relevant group company” insert “or a group securitisation company”.
dual resident investing company (in Chapter 3 of Part 7) section 275A” “group securitisation company (in Chapter 2 of Part 7) section 273A” “UK net debt (in Chapter 2 of Part 7) section 262” “worldwide gross debt (in Chapter 2 of Part 7) section 264
In section 263 (net debt of a company), for subsections (3) to (5) substitute—
Section 264 (worldwide gross debt) is amended as follows. In subsection (1), for “The reference in section 261” substitute “A reference in this Chapter”. In subsection (2), for paragraphs (a) to (c) substitute— For subsections (3) and (4) substitute—
Section 265 (references to amounts disclosed in balance sheet) is amended as follows. In the heading, for “relevant group” substitute “a”. In subsections (1) and (5), omit “relevant group”.
After section 265 insert—
In section 266(3) (qualifying financial services groups), in the definition of “UK trading income”, after “relevant group company” insert “or a group securitisation company”.
In section 270 (relevant dealing in financial instruments), for subsection (1) substitute—
Section 271 (UK trading income of the worldwide group) is amended as follows. In subsections (2), (3), (4) and (6), omit “relevant group”. In subsection (7), for “relevant group company” substitute “group securitisation company”.
In section 273 (foreign currency accounting), in subsections (1), (2) and (3)(a), omit “relevant group”.
After section 273 insert—
Section 10
and
After section 142 of TCGA 1992 (capital gains on stock dividends) insert—
Sub-paragraph (2) applies where— The thing done or to be done is to be treated for the purposes of VATA 1994 as if it were or would be a paragraph 5(4) supply. But sub-paragraph (2) does not confer on the person allowed credit as mentioned in sub-paragraph (1)(a) any entitlement to that credit under sections 25 and 26 of that Act. For the purposes of sub-paragraph (1) credit for input tax is “allowed” under sections 25 and 26 of VATA 1994 to the extent that the credit is claimed, and the claim is satisfied by one or more of the following— In this paragraph— This paragraph is to be treated as having always had effect.
Section 11
After section 275 (meaning of “company to which this Chapter applies”) insert—
Section 314 (financing income amounts of a company) is amended as follows. In subsection (1), for “or C” substitute “, C or D”. After subsection (5) insert—
Schedule 24 to FA 2007 (penalties for errors) is amended as follows. Petroleum revenue tax Statement or declaration in connection with a claim under paragraph 13A of Schedule 2 to the Oil Taxation Act 1975. In paragraph 1(5), after “Oil Taxation Act 1975” insert “or a statement or declaration under paragraph 13A of that Schedule”.
Section 12 of FA 1994 (assessments to excise duty) is amended as follows. In subsections (4)(a) and (5), for “three years” substitute “4 years”. In subsection (5), for the words from “in the case” to the end substitute “in any case falling within subsection (5A)(a) or (b)”. After subsection (5) insert— After subsection (6) insert— Omit subsection (7). The amendments made by this paragraph have effect in relation to the making of assessments under section 20AAB(4) of HODA 1979 as to the making of assessments under section 12(1) of FA 1994 (see section 20AAB(5) of HODA 1979).
After section 280 (statement of allocated disallowances: requirements), insert—
In section 315 (interpretation of sections 313 and 314), omit ““impairment”,”.
In FA 2009—
in Schedule 51 (time limits for assessments, claims etc), omit paragraph 18(2), and
in Schedule 52 (recovery of overpaid tax etc), omit paragraph 11.
In consequence of the amendment made by paragraph 3(6), omit paragraph 22 of Schedule 6 to the Serious Crime Act 2007.
Section 284 (failure of reporting body to submit statement of allocated disallowances) is amended as follows. In subsection (2), for “Each company to which this Chapter applies that has a net financing deduction for the relevant period of account that is greater than nil” substitute “Where a company to which this Chapter applies (“company A”) has a net financing deduction for the relevant period of account that is greater than nil, it”. The total of the reductions required to be made by company A because of subsection (2) is— In subsection (3)—
Section 316 (group treasury companies) is amended as follows. In subsection (1)(b), for “or C” substitute “, C or D”. For subsection (8) substitute—
Section 12A of FA 1994 (other assessments relating to excise duty matters) is amended as follows. In subsections (4)(a) and (6), for “three years” substitute “4 years”. In subsection (6), for the words from “where the assessment” to the end substitute “falling within section 12(5A)(a) or (b)”. After subsection (6) insert—
After section 284 insert—
After section 318 (companies engaged in oil extraction activities) insert—
Schedule 4A to BGDA 1981 (unlicensed amusement machines) is amended as follows. In paragraph 2(3)(a), for “three years” substitute “4 years”. In sub-paragraph (5) of paragraph 6— This sub-paragraph applies where— Omit sub-paragraph (7) of that paragraph.
In section 321 (short-term loan relationships)—
in subsection (4), omit “other”, and
omit subsection (7).
Section 327 (educational and public bodies) is amended as follows. In subsection (2), omit the “or” at the end of paragraph (c) and after that paragraph insert—. In subsection (4), omit the “and” after the definition of “designated educational establishment” and after the definition of “health service body” insert, and After that subsection insert—
In the heading of Chapter 10, for “provisions” substitute “and supplementary provisions”.
Part 7 of, and Schedule 9 to, TIOPA 2010 are treated as always having had effect subject to the amendments made by this Schedule. Schedule 15 to FA 2009 (which contains provision rewritten in that Part and that Schedule and which continues to apply in relation to accounting periods ending before 1 April 2010) is treated as always having had effect subject to corresponding amendments. The power to make regulations under section 353A of TIOPA 2010 (inserted by paragraph 33 above) may only be exercised in relation to liabilities to corporation tax falling due and payable on or after the day on which this Act is passed.
After section 146 insert—
In section 339 (meaning of “ultimate parent”), for subsection (1)(b) to (d) substitute—
Section 345 (meaning of “UK group company” and “relevant group company”) is amended as follows. A company is a “UK group company” if— A company is a “relevant group company” if— Condition B is that the company is not a securitisation company within the meaning of section 83(2) of FA 2005 or section 623 of CTA 2010. In subsection (5), for “B” substitute “C”.
In section 351 (expressions taking their meaning from international accounting standards), after subsection (1) insert—
After section 353 (other expressions) insert—
Section 12
Section 18
CAA 2001 is amended as follows.
section 45DA expenditure on zero-emission goods vehicles,
After section 45D insert—
section 45DA (expenditure on zero-emission goods vehicles),
Section 52 (first-year allowances) is amended as follows. Expenditure qualifying under section 45DA (expenditure on zero-emission goods vehicles) 100% In subsection (5)—
After section 212S insert—
The amendments made by this Schedule have effect—
for the purposes of corporation tax, for chargeable periods ending on or after 1 April 2010, and
for the purposes of income tax, for chargeable periods ending on or after 6 April 2010.
Section 19
Sub-paragraph (4) does not apply (despite paragraph 9(1)) to— This paragraph comes into force on 1 January 2011. This paragraph does not apply in relation to an asset in respect of which the person in question or any of that person’s predecessors incurred VAT before 1 January 2011. But, where VAT is incurred by such a person before that date in respect of the asset, VAT incurred by such a person on or after that date in respect of the asset is not to be treated as referable to that person’s business purposes by virtue of paragraph 5(4) and (6) of Schedule 4 to VATA 1994 if, and to the extent that, the asset is used or to be used for that person’s private use or the private use of that person’s staff, or more generally for purposes other than those of that person’s business. For the purposes of this paragraph— and references to the VAT “incurred” by a person in respect of an asset are to be construed in accordance with paragraph 1(9).
FA 2009 is amended as follows.
In section 101 (late payment interest on sums due to HMRC), omit subsection (2)(a).
Section 102 (repayment interest on sums to be paid by HMRC) is amended as follows. Omit subsection (2)(a). In subsection (4), before paragraph (a) insert—.
After section 103 insert—
In section 104(1), for “103” substitute “103A (and Schedules 53 to 54A)”.
Section 25
“ITTOIA 2005” means the Income Tax (Trading and Other Income) Act 2005;
Schedule 53 to FA 2009 (late payment interest) is amended as follows.
In Schedule 10 (returns, enquiries, assessments and appeals), for paragraph 34 and the italic heading preceding it substitute—
ITA 2007 is amended as follows. In section 462(11) (overview of Part), after “charitable trusts” insert “and section 838A for special provision about asbestos compensation settlements”. After section 838 (exemption from income tax for local authorities and local authority associations) insert— The amendments made by sub-paragraphs (2) and (3) are treated as having had effect for the tax year 2007-08 and subsequent tax years. ICTA is treated as having had effect for the tax year 2006-07 with an amendment, after section 518 of that Act, which corresponds to that made by sub-paragraph (3).
In Part 1 (special provision as to amount carrying late payment interest), after paragraph 2 insert—
In Part 2 (special provision as to late payment interest start date), after paragraph 6 insert—
FA 2009 is amended as follows.
In section 101 (late payment interest on sums due to HMRC), omit subsection (2)(b).
In section 102 (repayment interest on sums to be paid by HMRC), omit subsection (2)(b).
Schedule 53 (late payment interest) is amended as follows.
After paragraph 11 insert—
After paragraph 14 insert—
In Schedule 54 (repayment interest), after paragraph 12 insert—
Section 26
Schedule 55 to FA 2009 (penalty for failure to make returns etc) is amended as follows.
Paragraph 1 (penalty for failure) is amended as follows. In sub-paragraph (2), for “13” substitute “13J”. The Table is amended as follows. 7A Value added tax Return under regulations under paragraph 2 of Schedule 11 to VATA 1994 7B Insurance premium tax Return under regulations under section 54 of FA 1994 14 Aggregates levy Return under regulations under section 25 of FA 2001 15 Climate change levy Return under regulations under paragraph 41 of Schedule 6 to FA 2000 16 Landfill tax Return under regulations under section 49 of FA 1996 17 Air passenger duty Return under regulations under section 38 of FA 1994 18 Alcoholic liquor duties Return under regulations under section 13, 49, 56 or 62 of ALDA 1979 19 Tobacco products duty Return under regulations under section 7 of TPDA 1979 20 Hydrocarbon oil duties Return under regulations under section 21 of HODA 1979 21 Excise duties Return under regulations under section 93 of the Customs and Excise Management Act 1979 22 Excise duties Return under regulations under section 100G or 100H of the Customs and Excise Management Act 1979 23 General betting duty Return under regulations under paragraph 2 of Schedule 1 to BGDA 1981 24 Pool betting duty Return under regulations under paragraph 2A of Schedule 1 to BGDA 1981 25 Bingo duty Return under regulations under paragraph 9 of Schedule 3 to BGDA 1981 26 Lottery duty Return under regulations under section 28(2) of FA 1993 27 Gaming duty Return under directions under paragraph 10 of Schedule 1 to FA 1997 28 Remote gaming duty Return under regulations under section 26K of BGDA 1981
For paragraph 2 (amount of penalty for occasional or annual returns) and the italic heading preceding it substitute—
Paragraph 6 (amount of penalty for occasional returns and annual returns) is amended as follows. In sub-paragraph (2), after “P” in the first place it occurs insert “deliberately”. In sub-paragraph (5), for “any other case” substitute “any case not falling within sub-paragraph (2)”.
Paragraph 11 (amount of penalty for certain CIS returns after 12 months) is amended as follows. In sub-paragraph (2), after “P” in the first place it occurs insert “deliberately”. In sub-paragraph (5), for “any other case” substitute “any case not falling within sub-paragraph (2)”.
Paragraph 12 (amount of penalty for other CIS returns after 12 months) is amended as follows. In sub-paragraph (2), after “P” insert “deliberately”.
After paragraph 13 insert—
In paragraph 14(1) (reductions for disclosure), for “or 11(3) or (4)” substitute “, 11(3) or (4), 13E(3) or (4) or 13J(3) or (4)”.
In paragraph 15(5) (reductions for disclosure not below certain amounts)—
for “paragraph 11(3) or (4)” substitute “sub-paragraph (3) or (4) of any of paragraphs 11, 13E and 13J”, and
for “paragraph 11(3)(b) or (4)(b) (as the case may be)” substitute “paragraph (b) of that sub-paragraph”.
A replacement assessment may be made in respect of a penalty if an earlier assessment operated by reference to an overestimate of the liability to tax which would have been shown in a return.
If P satisfies HMRC or (on appeal) the First-tier Tribunal or Upper Tribunal that there is a reasonable excuse for a failure to make a return—
Section 27
Schedule 56 to FA 2009 (penalty for failure to make payments on time) is amended as follows.
Paragraph 1 (penalty for failure) is amended as follows. In sub-paragraph (2), for “8” substitute “8J”. Sub-paragraph (4) is subject to paragraph 2A. The Table is amended as follows. In item 2, in column 3, omit “(except an amount falling within item 20)”. In item 4, in column 4, for “section 62” substitute “section 71”. 6A Value added tax Amount payable under section 25(1) of VATA 1994 (except an amount falling within item 6B, 13A, 23 or 24) The date determined— by or under regulations under section 25 of VATA 1994, or in accordance with an order under section 28 of that Act, as the date by which the amount must be paid 6B Value added tax Amount payable under section 25(1) of VATA 1994 which is an instalment of an amount due in respect of a period of 9 months or more (“amount A”) The date on or before which P must pay any balancing payment or other outstanding payment due in respect of amount A 6C Insurance premium tax Amount payable under regulations under section 54 of FA 1994 (except an amount falling within item 13B, 23 or 24) The date determined by or under regulations under section 54 of FA 1994 as the date by which the amount must be paid 11A Aggregates levy Amount payable under regulations under section 25 of FA 2001 (except an amount falling within item 16A, 23 or 24) The date determined by or under regulations under section 25 of FA 2001 as the date by which the amount must be paid 11B Climate change levy Amount payable under regulations under paragraph 41 of Schedule 6 to FA 2000 (except an amount falling within item 16B, 23 or 24) The date determined by or under regulations under paragraph 41 of Schedule 6 to FA 2000 as the date by which the amount must be paid 11C Landfill tax Amount payable under regulations under section 49 of FA 1996 (except an amount falling within item 16C, 23 or 24) The date determined by or under regulations under section 49 of FA 1996 as the date by which the amount must be paid 11D Air passenger duty Amount payable under regulations under section 38 of FA 1994 (except an amount falling within item 17A, 23 or 24) The date determined by or under regulations under section 38 of FA 1994 as the date by which the amount must be paid 11E Alcoholic liquor duties Amount payable under regulations under section 13, 49, 56 or 62 of ALDA 1979 (except an amount falling within item 17A, 23 or 24) The date determined by or under regulations under section 13, 49, 56 or 62 of ALDA 1979 as the date by which the amount must be paid 11F Tobacco products duty Amount payable under regulations under section 7 of TPDA 1979 (except an amount falling within item 17A, 23 or 24) The date determined by or under regulations under section 7 of TPDA 1979 as the date by which the amount must be paid 11G Hydrocarbon oil duties Amount payable under regulations under section 21 or 24 of HODA 1979 (except an amount falling within item 17A, 23 or 24) The date determined by or under regulations under section 21 or 24 of HODA 1979 as the date by which the amount must be paid 11H General betting duty Amount payable under section 5B of BGDA 1981 (except an amount falling within item 17A, 23 or 24) The date determined— under section 5B of BGDA 1981, or by or under regulations under para-graph 2 of Schedule 1 to that Act, as the date by which the amount must be paid 11I Pool betting duty Amount payable under section 8 of BGDA 1981 (except an amount falling within item 17A, 23 or 24) The date determined— under section 8 of BGDA 1981, or by or under regulations under that section or directions under para-graph 3 of Schedule 1 to that Act, as the date by which the amount must be paid 11J Bingo duty Amount payable under regulations under paragraph 9 of Schedule 3 to BGDA 1981 (except an amount falling within item 17A, 23 or 24) The date determined by or under regulations under paragraph 9 of Schedule 3 to BGDA 1981 as the date by which the amount must be paid 11K Lottery duty Amount payable under section 26 of FA 1993 (except an amount falling within item 17A, 23 or 24) The date determined— by section 26 of FA 1993, or by or under regulations under that section, as the date by which the amount must be paid 11L Gaming duty Amount payable under section 12 of FA 1997 (except an amount falling within item 17A, 23 or 24) The date determined by or under regulations under— section 12 of FA 1997, or paragraph 11 of Schedule 1 to that Act, as the date by which the amount must be paid 11M Remote gaming duty Amount payable under section 26I of BGDA 1981 (except an amount falling within item 17A, 23 or 24) The date determined by or under regulations under section 26I of BGDA 1981 as the date by which the amount must be paid 13A Value added tax Amount assessed under section 73(1) of VATA 1994 in the absence of a return The date by which the amount would have been required to be paid if it had been shown in the return 13B Insurance premium tax Amount assessed under section 56(1) of FA 1994 in the absence of a return The date by which the amount would have been required to be paid if it had been shown in the return 16A Aggregates levy Amount assessed under paragraph 2 or 3 of Schedule 5 to FA 2001 in the absence of a return The date by which the amount would have been required to be paid if it had been shown in the return 16B Climate change levy Amount assessed under paragraph 78 or 79 of Schedule 6 to FA 2000 in the absence of a return The date by which the amount would have been required to be paid if it had been shown in the return 16C Landfill tax Amount assessed under section 50(1) of FA 1996 in the absence of a return The date by which the amount would have been required to be paid if it had been shown in the return 17A Tax falling within any of items 11D to 11M Amount assessed under section 12(1) of FA 1994 in the absence of a return The date by which the amount would have been required to be paid if it had been shown in the return Omit item 20. In item 23— In item 24—
In paragraph 2 (assessments and determinations in default of return), in paragraph (c), for “10” substitute “11M”.
After paragraph 2 insert—
Paragraph 3 (amount of penalty for occasional amounts and amounts due for periods of 6 months or more) is amended as follows. Sub-paragraph (1) is amended as follows. In paragraph (a), for “items 1, 3 and 7 to 24” substitute “items 1, 3, 6B, 7 to 11 and 12 to 24”. In paragraph (b)— After paragraph (c) insert, and In sub-paragraph (1)(d), a transitional period for the purposes of the annual accounting scheme is a prescribed accounting period (within the meaning of section 25(1) of VATA 1994) which—
For paragraph 6 substitute—
After paragraph 8 insert—
After paragraph 8J insert—
Paragraph 11 (assessment) is amended as follows. In sub-paragraph (4), for “unpaid tax” substitute “tax which was due or payable”. A replacement assessment may be made in respect of a penalty if an earlier assessment operated by reference to an overestimate of an amount of tax which was due or payable.
If P satisfies HMRC or (on appeal) the First-tier Tribunal or Upper Tribunal that there is a reasonable excuse for a failure to make a payment—
Section 28
Part 4 of FA 2003 (stamp duty land tax) is amended as follows.
Section 29
Section 118A of CEMA 1979 (duty of revenue traders to keep records) is amended as follows. In subsection (1)(b), for “require” substitute “specify in writing (and different lesser periods may be specified for different cases)”. For subsection (3) substitute— Omit subsections (4) to (6).
In consequence of the amendment made by paragraph 1(4)—
in FA 1994, omit section 256(3), and
in the Criminal Procedure (Consequential Provisions) (Scotland) Act 1995, omit paragraph 18(2) of Schedule 4.
CEMA 1979 is amended as follows.
In section 112 (power of entry upon premises etc of revenue traders), after subsection (6) insert—
After that section insert—
After section 118B insert—
In section 118C (entry and search of premises and persons), omit subsections (2), (2A) and (2B).
In section 118D (order for access to recorded information), in subsection (5), for “118B and 118C” substitute “118B to 118C”.
Section 118G (offences under Part 9) is amended as follows. The existing provisions become subsection (1). After that subsection insert—
Section 161A (power to search premises: search warrant) is amended as follows. After subsection (2) insert— In subsection (3), for “subsections (1) and (2)” substitute “subsections (1), (2) and (2A)”.
Section 31
Section 58 of IHTA 1984 (relevant property) is amended as follows. For the word “and” at the end of subsection (1)(e) substitute—. After subsection (3) insert— The amendments made by this paragraph are treated as having come into force on 6 April 2006.