Finance Act 2021
Income tax is charged for the tax year 2021-22.
For the tax year 2021-22 the main rates of income tax are as follows—
the basic rate is 20%,
the higher rate is 40%, and
the additional rate is 45%.
For the tax year 2021-22 the default rates of income tax are as follows—
the default basic rate is 20%,
the default higher rate is 40%, and
the default additional rate is 45%.
For the tax year 2021-22 the savings rates of income tax are as follows—
the savings basic rate is 20%,
the savings higher rate is 40%, and
the savings additional rate is 45%.
For the tax year 2021-22, the amount specified in section 12(3) of ITA 2007 (the starting rate limit for savings) is “£5,000”.
Accordingly, section 21 of that Act (indexation) does not apply in relation to the starting rate limit for savings for that tax year.
For the tax years 2022-23, 2023-24, 2024-25 , 2025-26, 2026-27 , 2027-28, 2028-29, 2029-30 and 2030-31 , the amount specified in section 10(5) of ITA 2007 (basic rate limit) is “£37,700”.
For the tax years 2022-23, 2023-24, 2024-25 , 2025-26, 2026-27 , 2027-28, 2028-29, 2029-30 and 2030-31 , the amount specified in section 35(1) of ITA 2007 (personal allowance) is “£12,570”.
Accordingly— for the tax years 2022-23, 2023-24, 2024-25 , 2025-26, 2026-27 , 2027-28, 2028-29, 2029-30 and 2030-31 .
section 21 of ITA 2007 (indexation of basic rate limit) does not apply in relation to the basic rate limit, and
section 57 of ITA 2007 (indexation of allowances) does not apply in relation to the amount specified in section 35(1) of that Act,
Corporation tax is charged for the financial years 2022 and 2023.
The main rate of corporation tax—
is 19% for the financial year 2022, and
is 25% for the financial year 2023.
Schedule 1 contains the following provision (with effect from 1 April 2023)—
provision for corporation tax to be charged at the standard small profits rate on profits that are not ring fence profits,
provision for marginal relief to be given by reference to the standard marginal relief fraction,
provision making corresponding amendments to Chapter 3A of Part 8 of CTA 2010 (corporation tax rates on ring fence profits), and
provision making other consequential amendments to provision made by the Corporation Tax Acts.
For the financial year 2023—
the standard small profits rate is 19%, and
the standard marginal relief fraction is 3/200ths.
In section 79 of FA 2015 (charge to diverted profits tax)— for “25%” substitute “ 31% ”.
in subsection (2)(a) (which sets the rate in a standard case), and
in subsections (3) and (3A) (which contain modifications of the rate in the case of ring fence profits or banking surcharge profits),
The amendments made by this section have effect for accounting periods beginning on or after 1 April 2023.
The remaining provisions of this section deal with a case where a company has an accounting period (a “straddling period”) beginning before 1 April 2023 and ending on or after that date.
For the purpose of calculating the amount of diverted profits tax chargeable on a company for the straddling period— are to be treated as separate accounting periods.
so much of the straddling period as falls before 1 April 2023, and
so much of it as falls on or after that date,
If it is necessary to apportion an amount for the straddling period to the two separate accounting periods, the apportionment is to be made on a time basis according to the respective lengths of the separate accounting periods.
Part 2 of CAA 2001 has effect as if—
in section 39 (first-year allowances available for certain types of qualifying expenditure only) a reference to this section were included in the list of provisions describing first-year qualifying expenditure, and
Expenditure qualifying under section 9(2) of FA 2021 130% Expenditure qualifying under section 9(3) of that Act 50% Expenditure qualifying under section 9(4) of that Act 100%
Expenditure is qualifying under this subsection if— Expenditure qualifying under this subsection is referred to as “super-deduction expenditure” and a first-year allowance made as a result of expenditure qualifying under this subsection is referred to as a “super-deduction”.
it is incurred on or after 1 April 2021 but before 1 April 2023,
it is incurred by a company within the charge to corporation tax,
it is expenditure on plant or machinery which is unused and not second-hand,
it is not within any of the general exclusions in section 46(2) of CAA 2001,
it is not special rate expenditure, and
it is not expenditure on the provision of plant or machinery for use wholly or partly for the purposes of a ring fence trade.
Expenditure is qualifying under this subsection if— Expenditure qualifying under this subsection is referred to as “SR allowance expenditure” and a first-year allowance made as a result of expenditure qualifying under this subsection is referred to as an “SR allowance”.
it is special rate expenditure,
it is incurred on or after 1 April 2021 but before 1 April 2023,
it is incurred by a company within the charge to corporation tax,
it is expenditure on plant or machinery which is unused and not second-hand, and
it is not within any of the general exclusions in section 46(2) of CAA 2001.
Expenditure is qualifying under this subsection if—
it is expenditure on the provision of plant or machinery for use partly for the purposes of a ring fence trade and partly for the purposes of another qualifying activity,
it is incurred on or after 1 April 2021 but before 1 April 2023,
it is incurred by a company within the charge to corporation tax,
it is not within any of the general exclusions in section 46(2) of CAA 2001, and
it is not special rate expenditure.
A first-year allowance made as a result of expenditure qualifying under subsection (4) is to be allocated between the ring fence trade and the other qualifying activity on a just and reasonable basis.
This section has effect as if it were contained in Chapter 4 of Part 2 of CAA 2001 (which, among other things, means that sections 5 and 50 of that Act are relevant for the purpose of determining when expenditure is incurred).
For the purpose of determining when expenditure is incurred for the purpose of subsection (2)(a) or (3)(b), if an amount of expenditure is incurred as a result of a contract entered into before 3 March 2021—
section 5 of CAA 2001 does not apply, and
the expenditure is instead treated for that purpose as incurred when the contract was entered into (whether or not an unconditional obligation to pay it arises on or after that date).
For the purpose of determining whether a person is entitled to a super-deduction or an SR allowance, section 67 of CAA 2001 (plant or machinery treated as owned by person entitled to benefit of contract, etc) applies as if for subsection (1)(b) of that section there were substituted—
General exclusion 6 in section 46(2) of CAA 2001 (expenditure on provision of plant or machinery for leasing) does not prevent expenditure being super-deduction expenditure or SR allowance expenditure if the plant or machinery is provided for leasing under an excluded lease of background plant or machinery for a building (as defined by section 70R of that Act).
Section 130(1) of CAA 2001 (postponement of first-year allowances on the provision of a ship) does not apply in relation to a super-deduction or an SR allowance.
In this section “ring fence trade” means a ring fence trade in respect of which tax is chargeable under section 330(1) of CTA 2010 (supplementary charge in respect of ring fence trades).
Sections 11 to 14 contain further provision in connection with super-deductions and SR allowances.
Section 11 contains provision that modifies the percentage that as a result of section 9(1)(b) would otherwise apply to—
super-deduction expenditure incurred in a chargeable period that ends on or after 1 April 2023;
an additional VAT liability accruing in a chargeable period that ends on or after 1 April 2023 that is regarded as super-deduction expenditure as a result of section 236(2) of CAA 2001 (additional VAT liability generates first-year allowance).
Section 12 contains provision about the disposal of plant or machinery in respect of which a super-deduction was made and section 13 contains similar provision in relation to plant or machinery in respect of which an SR allowance was made.
Section 14 contains provision about counteracting tax advantages in connection with super-deductions and SR allowances (but see also Chapter 17 of Part 2 of CAA 2001 which contains other provisions about anti-avoidance).
Sections 11, 12 and 13 have effect as if they were contained in Chapter 5 of Part 2 of CAA 2001 (allowances and charges).
In this section, and in sections 11 to 14— “super-deduction expenditure” and “super-deduction” are to be construed in accordance with section 9(2); “SR allowance expenditure” and “SR allowance” are to be construed in accordance with section 9(3); “additional VAT liability” has the meaning given by section 547(1) of CAA 2001.
“reference rate” means a published rate used to set interest rates for financial instruments;
The following sections of ITA 2007 apply in relation to relief under paragraph 1 or 2 as they apply in relation to relief under section 64 of that Act— Paragraphs 1 and 2 apply to professions and vocations as they apply to trades. Paragraphs 1 and 2 are subject to paragraph 2 of Schedule 1B to TMA 1970 (claims to loss relief involving 2 or more years). Sections 61 to 63 of ITA 2007 (meaning of “making a loss in a tax year” etc and prohibition against double counting) have effect as if paragraphs 1 and 2 were included in Chapter 2 of Part 4 of that Act. The reference in paragraph 3(1) of Schedule 2 to the Social Security Contributions and Benefits Act 1992 and Social Security Contributions and Benefits (Northern Ireland) Act 1992 (levy of Class 4 contributions with income tax) to section 64 of ITA 2007 includes paragraphs 1 and 2.
In Chapter 9 of Part 8B of CTA 2010 (research and development expenditure), section 357PD (amount of tax credit under section 1054 of CTA 2009) is amended in accordance with paragraphs 2 to 5.
A certificate of the Commissioners that— is, in any proceedings evidence, or in proceedings in Scotland sufficient evidence, of that fact. A copy of any document provided to the Commissioners for the purposes of this Part and certified by them to be such a copy shall be admissible in any proceedings, whether civil or criminal, to the same extent as the document itself. In any proceedings any document purporting to be a certificate under sub-paragraph (1) or (2) is to be taken to be such a certificate unless the contrary is shown.
Where an assessment is made under paragraph 2 or 3 to an amount of a penalty to which any person is liable, the notification of that amount must specify a time, not later than the end of the day of the giving of the notification, to which the amount of any daily penalty is calculated. For the purposes of sub-paragraph (1) “daily penalty” means a penalty imposed under section 80(1)(b). If further penalties accrue in respect of a continuing failure after that date, a further assessment or further assessments may be made under paragraph 2 or 3 in respect of the amounts so accruing.
In section 1(1) of the Provisional Collection of Taxes Act 1968 (temporary statutory effect of House of Commons resolutions affecting income tax etc) after “digital services tax,” insert “plastic packaging tax,”.
In Schedule 53 to FA 2009 (late payment interest) after paragraph 11C insert—
TMA 1970 is amended as follows.
Sub-paragraph (2) applies where— The licensing authority may not consider the application until it has— For the purposes of this Schedule an application for an authorisation is a “first-time” application if the applicant— For the purposes of sub-paragraph (3) an authorisation is “relevant” if—
For the purposes of this Schedule a person undertakes a “tax check” in relation to an authorised activity by doing the following in accordance with arrangements made pursuant to paragraph 4(1)(a)— The information that HMRC may request a person to give under sub-paragraph (1)(a) and (c) includes, in particular— A tax check undertaken by a person in relation to an authorised activity— In this paragraph—
The HMRC Commissioners may by regulations make provision about— References in sub-paragraph (1) to information include— Regulations under sub-paragraph (1) may— The HMRC Commissioners may by regulations amend any of the following provisions by substituting a different number of days for that for the time being specified in it— Regulations under this paragraph are to be made by statutory instrument. A statutory instrument containing regulations under this paragraph is subject to annulment in pursuance of a resolution of the House of Commons.
In the Transport Act 1985, section 17 (London taxi driver licensing: appeals) is amended in accordance with sub-paragraphs (2) and (3). In subsection (7) after “shall” insert “(subject to subsections (12) to (14))”. After subsection (11) insert— In the Scrap Metal Dealers Act 2013, in Schedule 1 (further provision about licences), paragraph 1 (term of licence) is amended in accordance with sub-paragraphs (5) and (6). In sub-paragraph (2), after paragraph (a) insert—. In sub-paragraph (2)(aa) “the relevant period” means—
For subsection (2) substitute—
Sub-paragraph (2) applies where— The failure is to be deemed for the purposes of any further liability to a penalty to have been remedied on the specified date.
For section 8B(8) (withdrawal of notice to file personal or trustee return) substitute—
For subsection (3) substitute—
For section 12AAA(9) (withdrawal of notice to file partnership return) substitute—
In subsection (4), for the words from “sum of” to the end, substitute lesser of—
In section 49E (nature of review etc), after subsection (5) insert—
After subsection (4) insert—
After section 49E insert—
After section 49F insert—
In section 69 (recovery of penalty or interest), in subsection (1)—
after paragraph (a) insert—;
omit paragraph (b).
In section 103ZA (disapplication of sections 100 to 103 in the case of certain penalties)—
omit the “or” at the end of paragraph (k);
after paragraph (l) insert—
Section 107A (relevant trustees) is amended as follows. In subsection (2)— In subsection (3)—
the period beginning with the date on which this Schedule comes into force and ending with 31 March 2022, and
In this Schedule—
“secondary liability and assessment notice” has the meaning that it has in Part 1 of Schedule 9;
Liability to a penalty point or a penalty under this Schedule does not arise in respect of a failure to make a return if the person satisfies HMRC (or on appeal, the tribunal) that the person had a reasonable excuse for the failure. For this purpose— In this paragraph “tribunal” means the First-tier Tribunal or Upper Tribunal (as appropriate by virtue of paragraph 23(1)).
A person may appeal against a decision of HMRC under this Schedule—
that the person is liable to a penalty point, or
that a penalty is payable by the person.
The Treasury may by regulations amend this Part of this Schedule so as to— Regulations under this paragraph may include consequential provision, including provision amending, repealing or revoking any provision of an Act or subordinate legislation whenever passed or made (including this Act and any Act amended by it). In sub-paragraph (2) “subordinate legislation” has the same meaning as in the Interpretation Act 1978.
This paragraph applies where— In determining whether the representative partner, a successor of the representative partner or the nominated partner (as the case may be) is liable to a penalty under paragraph 3, the condition in sub-paragraph (2) of that paragraph is to be read as if the reference to the person’s liability to tax was a reference to the liability to tax of any relevant partner. If a representative partner, a successor of a representative partner or a nominated partner is liable to a penalty under paragraph 3, every relevant partner is liable to a penalty under that paragraph. The amount of the penalty to which the representative partner, a successor of the representative partner, the nominated partner or a relevant partner is liable is £300 (and accordingly paragraphs 3(3) to (8), 4 to 8, 10, 11 and 13 do not apply). An appeal under paragraph 17 in connection with a penalty payable by virtue of this paragraph may be brought only by— Where such an appeal is brought in connection with a penalty payable in respect of a failure, the appeal is to be treated as if it were an appeal in connection with every penalty payable in respect of that failure. In this paragraph—
In Schedule 38 to FA 2012 (tax agents: dishonest conduct), in paragraph 34(1)—
omit the “or” at the end of paragraph (b);
at the end of paragraph (c), insert , or
Schedule 21 to FA 2015 (penalties in connection with offshore asset moves) is amended as follows. In paragraph 1(2), at the beginning of paragraph (b) insert “where the original penalty is a penalty specified in paragraph (a), (b), (c) or (d) of paragraph 2,”. In paragraph 2— In paragraph 5—
In Schedule 18 to F(No.2)A 2017 (requirement to correct certain offshore tax non-compliance), in paragraph 15(2)(b), after “Schedule 55 to FA 2009” insert “or of paragraph 11 of Schedule 25 to FA 2021, as the case may be”.
After paragraph 51 insert—
The amendments made by paragraph 8 have effect whenever the land transaction return under section 76 of FA 2003 was delivered.
An appeal under paragraph 22 is to be treated in the same way as an appeal against an assessment to the tax concerned (including by the application of any provision about bringing the appeal by notice to HMRC, about HMRC’s review of the decision or about determination of the appeal by the First-tier Tribunal or Upper Tribunal). Sub-paragraph (1) does not apply—
On an appeal under paragraph 22 that is notified to the tribunal, the tribunal may— Where the appeal is under paragraph 22(b), the tribunal may also affirm or cancel HMRC’s decision that the person was liable to any of the penalty points by virtue of which the person was liable to the penalty. Sub-paragraph (2)— Sub-paragraph (5) applies if— HMRC may award a penalty point in respect of the failure before the end of the period of 12 months beginning with the day after the tribunal’s decision on the appeal (and paragraph 6(3) does not apply). In this paragraph “tribunal” means the First-tier Tribunal or Upper Tribunal (as appropriate by virtue of paragraph 23(1)).
This paragraph applies where— Where this paragraph applies, treat the new representative member as having the penalty points that the former representative member has for the group of returns.
An assessment of a penalty under this Schedule may not be made after— (But see sub-paragraphs (7) and (8).) Date A is the end of the period of 2 years beginning with— Date B is the last day of the period of 12 months beginning with— In sub-paragraph (3)(a)— If more than one return is the relevant return by virtue of paragraph (b) of the definition of “relevant return” in sub-paragraph (4) and the same day is not date B in relation to all of those returns, treat date B as being the latest of those days. Date C— Sub-paragraph (8) applies where— Where this sub-paragraph applies—
A person is not liable to a penalty point or a penalty under this Schedule in respect of a failure in respect of which the person has been convicted of an offence.
A person who is liable to pay a relevant VAT sum is liable to a penalty if the person— In sub-paragraph (1), “payment arrangements” means arrangements with HMRC (whether general or individually tailored) under which the sum is to be paid and includes arrangements entered into before this Schedule comes into force. A person is not liable to a penalty under this Schedule in respect of a relevant VAT sum if the person satisfies HMRC or, on appeal, a tribunal that there is a reasonable excuse for the failures described in sub-paragraph (1)(a) and (b). In sub-paragraph (3), “tribunal” has the same meaning as in VATA 1994 (see section 82 of that Act).
A penalty under this Schedule must be paid before the end of the period of 30 days beginning with the day on which notification of the assessment of the penalty under paragraph 6(1) is issued. Where HMRC make a supplementary assessment under paragraph 6(2), the additional amount must be paid before the end of the period of 30 days beginning with the day on which they issue the notification of that assessment. Where HMRC amend an assessment under paragraph 6(3) that does not affect when the penalty must be paid.
A person is not liable to a penalty under this Schedule in respect of a failure in respect of which the person has been convicted of an offence.
Before regulation 8 insert— In regulation 8 (determination of section 30A charge), before “and 9” insert “, 7B”. The amendments made by this paragraph—
In regulation 3 (interpretation of Part 2), at the appropriate places insert—; ; ; ; . The amendments made by this paragraph—
The Table identifies, for each item listed in column 1 of the Table, one or more groups of returns (according to the frequency with which returns are required to be made). Item Tax Groups of returns Column A (groups of annual etc returns) Column B (groups of quarterly etc returns) Column C (groups of monthly etc returns) 1 Income tax or capital gains tax (persons other than trustees or partnerships) This group applies where there is no requirement to provide information under regulations under paragraph 7 of Schedule A1 to TMA 1970. Return under section 8 of TMA 1970 Accounts, statement or document required under section 8(1AB)(b) of TMA 1970 This group applies where there is a requirement to provide information under regulations under paragraph 7 of Schedule A1 to TMA 1970. Return under section 8 of TMA 1970 Accounts, statement or document required under section 8(1AB)(b) of TMA 1970 Statement under regulations under paragraph 8 of Schedule A1 to TMA 1970 Information required to be provided under regulations under paragraph 7 of Schedule A1 to TMA 1970 - 2 Income tax or capital gains tax (trustees) This group applies where there is no requirement to provide information under regulations under paragraph 7 of Schedule A1 to TMA 1970. Return under section 8A of TMA 1970 Accounts, statement or document required under section 8A(1AB)(b) of TMA 1970 This group applies where there is a requirement to provide information under regulations under paragraph 7 of Schedule A1 to TMA 1970. Return under section 8A of TMA 1970 Accounts, statement or document required under section 8A(1AB)(b) of TMA 1970 Statement under regulations under paragraph 8 of Schedule A1 to TMA 1970 Information required to be provided under regulations under paragraph 7 of Schedule A1 to TMA 1970 - 3 Income tax or corporation tax (partnerships) This group applies where there is no requirement to provide information under regulations under paragraph 7 of Schedule A1 to TMA 1970. Return under section 12AA(2)(a) or (3)(a) of TMA 1970 Accounts, statement or document required under section 12AA(2)(b) or (3)(b) of TMA 1970 This group applies where there is a requirement to provide information under regulations under paragraph 7 of Schedule A1 to TMA 1970. Return under regulations under paragraph 10 of Schedule A1 to TMA 1970 Information required to be provided under regulations under paragraph 7 of Schedule A1 to TMA 1970 - 4 Value added tax Return under regulation 50 of the Value Added Tax Regulations 1995 (S.I. 1995/2518) for a current accounting year Return under regulation 25(1)(c) of those regulations for a period which is more than 20 weeks, and is the period for which returns are (or are to be) usually made by the person in question Return under regulation 25(1) of the Value Added Tax Regulations 1995 (S.I. 1995/2518), other than a return under regulation 25(1)(a), (b) or (c) Return under regulation 25(1)(c) of those regulations for a period which is more than 8 weeks but not more than 20 weeks, and is the period for which returns are (or are to be) usually made by the person in question Return under regulation 25(1)(a) of the Value Added Tax Regulations 1995 (S.I. 1995/2518) Return under regulation 25(1)(c) of those regulations for a period which is not more than 8 weeks, and is the period for which returns are (or are to be) usually made, or a period for which returns are (or are to be) regularly made, by the person in question Where an entry in column A, B or C of the Table which refers to legislation uses terms used in the legislation, the terms have the same meaning in the entry as in the legislation. Before the coming into force of paragraph 3 of Schedule 14 to F(No.2)A 2017, the references in the Table to section 8(1AB)(b) of TMA 1970 are to be read as references to section 8(1)(b) of TMA 1970. Before the coming into force of paragraph 4 of Schedule 14 to F(No.2)A 2017, the references in the Table to section 8A(1AB)(b) of TMA 1970 are to be read as references to section 8A(1)(b) of TMA 1970.
A penalty point for a group of returns expires at the end of the relevant period, unless immediately before the end of that period the person has the maximum number of penalty points for that group of returns. The relevant period is— Where the penalty point was awarded in respect of more than one failure by virtue of paragraph 5(5), the references in sub-paragraph (2)(a) to a month are to be read as references to a calendar quarter. In this paragraph—
For the purposes of this Schedule— The deemed single person referred to in paragraph (a) is to be treated as continuing in existence even if there is a change in the partnership. Where the deemed single person referred to in paragraph (a) is assessed to a penalty, every relevant partner is jointly and severally liable for the penalty. For the purposes of sub-paragraph (3)—
This paragraph applies for the interpretation of this Schedule. “Return” means any return, statement, account or other document specified in the third column of the Table in paragraph 1. Any reference to making a return includes a reference to filing, delivering or submitting a return. “Due date”, in relation to a return, means the date by which it is required to be made. “HMRC” means Her Majesty’s Revenue and Customs.
After section 244 insert— In section 248 (publication by HMRC), in subsection (2)(c), for “mentioned in section 242(1)(a)” substitute “as a promoter which the monitored promoter is carrying on”. The amendments made by this paragraph have effect in relation to relevant transfers made on or after the day on which this Act is passed.
“additional VAT liability” has the meaning given by section 547(1) of CAA 2001.
Sub-paragraph (2) applies where— The Commissioners—
Subsection (2) applies where a person incurs super-deduction expenditure in a chargeable period (“the relevant period”) that ends on or after 1 April 2023.
Where this subsection applies, section 9(1)(b) applies as if for “130%” there were substituted the relevant percentage.
Subsection (4) applies where a person becomes entitled in a chargeable period (“the relevant period”) that ends on or after 1 April 2023 to a super-deduction as a result of section 236(2) in respect of an additional VAT liability that is regarded (as a result of that section) as super-deduction expenditure.
Where this subsection applies, section 9(1)(b) applies as if for “130%” there were substituted—
where the person becomes entitled to the super-deduction before 1 April 2023, the relevant percentage, or
otherwise, “100%”.
For the purposes of subsections (2) and (4)(a), the relevant percentage is X% where X is determined by—
dividing the number of days in the relevant period before 1 April 2023 by the total number of days in that period,
multiplying that amount by 30, and
adding 100 to the result.
This section applies to plant or machinery in respect of which a person incurred super-deduction expenditure if a super-deduction was made in respect of some or all of that expenditure.
Where a disposal event occurs in relation to plant or machinery to which this section applies, the person who incurred relevant super-deduction expenditure in respect of it is liable to a balancing charge for the chargeable period in which the event occurs (whether or not the person is also liable to any other balancing charge for that period).
The amount of the balancing charge is, subject to subsection (6), the relevant proportion of the disposal value of the plant or machinery (see sections 61 to 63 of CAA 2001 which, among other provisions of Part 2 of that Act, contain provision about disposal values).
The relevant proportion is determined by dividing the amount of relevant super-deduction expenditure incurred in respect of the plant or machinery by the amount of total relevant expenditure in relation to it.
For the purposes of this section— super-deduction expenditure is “relevant” if a super-deduction was made in respect of it; “total relevant expenditure” in relation to plant or machinery means the sum of the following expenditure incurred in respect of it— relevant super-deduction expenditure; any expenditure in respect of which any other first-year allowance was made; any expenditure that was allocated to a pool for any chargeable period (including for the period in which the disposal event occurs).
“HMRC” means Her Majesty's Revenue and Customs;
“tax credit”, unless the context requires otherwise, means a tax credit in accordance with regulations under section 53.
each of the following is a “financial year”—
In Schedule 18 to FA 1998 (company tax returns, assessments and related matters), in paragraph 8(1) (calculation of tax payable), in the second step, for “Chapter 3A of Part 8 of the Corporation Tax Act 2010 (marginal relief for companies with small ring fence profits etc)” substitute “ Part 3A or Chapter 3A of Part 8 of the Corporation Tax Act 2010 (marginal relief for companies with small profits) ”.
Chapter 7 of Part 14 of CTA 2010 (meaning of “change in the ownership of a company”) is amended as follows.
A secondary liability and assessment notice given to a person (“R”) makes that person liable to pay an amount which is equal to or less than an amount of plastic packaging tax which another person (“P”) is liable to pay in relation to an accounting period of P (the “relevant time”) but which P has failed to pay on or before the date on which the amount became due and payable.
When the Commissioners give a secondary liability and assessment notice to R, they must, as soon as practicable, give a copy of that notice to P.
Where the amount which P is liable to pay in relation to the relevant time is reduced for any reason the Commissioners must consider whether to reduce the amount which R is liable to pay. If the Commissioners decide to reduce or cancel the amount which R is liable to pay, they must, within the period of 30 days beginning with the day on which they make their decision— The new amount must be such amount as the Commissioners consider just and reasonable, having regard in particular to their reasons for considering that paragraph 2(2) or (3) applies to R. Where P’s liability to pay in relation to the relevant time is cancelled, the Commissioners must, within the period of 30 days beginning with the day on which that happens—
The Commissioners may give a joint and several liability notice to R if the Commissioners consider that— This sub-paragraph applies to R if— This sub-paragraph applies to R if— The Commissioners may—
After being given a joint and several liability notice R must notify the Commissioners if paragraph 10(2)(a) or, as the case may be, (3)(a) (or both), does not apply or ceases to apply to R, including as a result of R ceasing to have dealings with P, at any time within the period of two years mentioned in paragraph 9. If— the Commissioners must notify R that the joint and several liability notice is revoked with the result that R is not liable to pay any plastic packaging tax as mentioned in paragraph 9. If R does not notify the Commissioners under sub-paragraph (1), or notifies them only after the end of the cancellation period, R must be treated in relation to the period of liability as— The period of liability is— The Commissioners must inform R and P of the result of a notification under sub-paragraph (1) within the period of 30 days beginning with the day on which they are given the notification.
R may not be notified of any assessment under paragraph 16(2) or of any increase in an assessment under paragraph 4(2) of Schedule 10 in respect of an amount after the end of the period of 2 years beginning with—
the day after the last day of the accounting period by reference to which P was liable to pay the amount, or, if later,
the day on which a court or tribunal finally determines that P is liable to pay the amount.
The Commissioners may by regulations make provision for reimbursement arrangements to be disregarded for the purposes of paragraph 8(2) except where the arrangements— In this paragraph “reimbursement arrangements” means arrangements for the purposes of a claim to a repayment of plastic packaging tax which— Regulations under this paragraph may (among other things) make provision requiring reimbursement arrangements to contain provision— Regulations under this paragraph may—
Where an amount has been assessed and notified to a person under paragraph 11 or 12, it is recoverable on the basis that it is an amount of plastic packaging tax due from that person. But sub-paragraph (1) does not have effect if, or to the extent that, the assessment has been withdrawn or reduced.
In Schedule 4 to FA 2017 (pensions: offshore transfers), omit paragraph 20.
Paragraph 21A (taxpayer notices following land transaction return) is amended as follows. In sub-paragraph (2), for “A to C” substitute “A to D”. Condition D is that relief from stamp duty land tax has been given in respect of the transaction and the notice is given for the purpose of checking whether— Where condition D is met (and not any of conditions A to C), a taxpayer notice may not be given by virtue of this paragraph after the end of the period of 4 years beginning with the effective date of the transaction (but see sub-paragraph (9) in relation to PAIF seeding relief and COACS seeding relief). Where condition D is met because the notice is given for the purpose of checking whether the relief is withdrawn to any extent under a paragraph of Schedule 7A to FA 2003 (PAIF seeding relief and COACS seeding relief), the reference in sub-paragraph (8) to the effective date of the transaction is to be read as a reference to the first day of the control period within the meaning of that Schedule (see paragraph 21 of that Schedule). “Effective date” has the same meaning for the purposes of sub-paragraph (8) as for the purposes of Part 4 of FA 2003 (see section 119 of that Act).
In section 719(4A) (certain acquisitions giving rise to a change in the ownership of a company) for “2D” substitute “2E”.
P may apply to the Commissioners to revoke a joint and several liability notice given to R, on the ground that the Commissioners were wrong to consider that paragraph 10(2) or (3) applies to R so far as relating to anything done or not done by, or any intention of, P. An application under sub-paragraph (1) must be made within the period of 30 days beginning with the day on which the Commissioners give a copy of the notice to P. The Commissioners must notify R and P of their decision in response to an application under sub-paragraph (1) within the period of 30 days beginning with the day on which they receive the application.
In section 721(4) (things other than ordinary share capital that may be taken into account in determining change in ownership), after “2D,” insert “2E,”.
The Commissioners may by regulations make further provision about— The regulations may (among other things) make provision about information that must be supplied as part of the notification or application.
In section 102 of FA 2012 (policyholders' rate of tax on policyholders' share of I - E profit), at the end insert—
A person who has made a loss in a trade in the tax year 2020-21 may make a claim for relief under this paragraph if— Condition A is that the person makes a claim under section 64 of ITA 2007 for relief in respect of the section 64 amount for either or both of the tax years 2019-20 and 2020-21. Condition B is that the person's total income for the tax years 2019-20 and 2020-21— The amount of the loss that may be relieved under this paragraph (“the deductible amount”) is— But see sub-paragraph (9) (limit on total deductions under this paragraph). A claim for relief under this paragraph is for the deductible amount to be deducted (in accordance with whichever is applicable of sub-paragraphs (7) and (8)) in calculating the person's net income for one or more of the tax years 2017-18, 2018-19 and 2019-20 at Step 2 of the calculation in section 23 of ITA 2007 (which applies as if this paragraph were a provision listed in section 24 of that Act). A deduction is to be made only from the profits of the trade (and accordingly subsection (2) of section 25 of ITA 2007 has effect as if this sub-paragraph were included in subsection (3) of that section). This sub-paragraph explains how the deductions are to be made in a case where the person makes a claim under section 64 of ITA 2007 for relief in respect of the section 64 amount for the tax year 2019-20. Step 1 Deduct the deductible amount from the profits of the trade for the tax year 2018-19. Step 2 Deduct from the profits of the trade for the tax year 2017-18 so much of the deductible amount as has not been deducted under Step 1. This sub-paragraph explains how the deductions are to be made in any other case. Step 1 Deduct the deductible amount from the profits of the trade for the tax year 2019-20. Step 2 Deduct from the profits of the trade for the tax year 2018-19 so much of the deductible amount as has not been deducted under Step 1. Step 3 Deduct from the profits of the trade for the tax year 2017-18 so much of the deductible amount as has not been deducted under Step 1 or 2. The total amount that may be deducted in accordance with sub-paragraph (7), or in accordance with Steps 2 and 3 in sub-paragraph (8), is limited to £2,000,000. A claim for relief under this paragraph must be made on or before the first anniversary of the normal self-assessment filing date for the tax year 2020-21.
A non-de minimis 2020 claim may not be made by a company (whether or not it is a member of a 2020 group) at any time before 31 March 2021. A non-de minimis 2021 claim may not be made by a company (whether or not it is a member of a 2021 group) at any time before 31 March 2022.
A non-de minimis 2020 claim may be made by a company that is a member of a 2020 group only if the total amount of relief given as a result of each of the following claims is, in aggregate, less than £2,000,000— A non-de minimis 2021 claim may be made by a company that is a member of a 2021 group only if the total amount of relief given as a result of each of the following claims is, in aggregate, less than £2,000,000—
A company may not make a 2020 claim if— A company may not make a 2021 claim if— In this paragraph “group” has the meaning given by section 269ZZB of CTA 2010 (meaning “group” in Part 7ZA of CTA 2010).
HMRC must review a decision if— But P may not notify acceptance of the offer if P has already appealed to the appeal tribunal under paragraph 1. HMRC must also review a decision if a person other than P notifies them under paragraph 4. HMRC may not review a decision if P, or another person, has appealed to the appeal tribunal under paragraph 1 in respect of the decision.
This paragraph applies if HMRC are required to undertake a review under paragraph 5 or 7. The nature and extent of the review are to be such as appear appropriate to HMRC in the circumstances. For the purposes of sub-paragraph (2), HMRC must, in particular, have regard to steps taken before the beginning of the review— The review must take account of any representations made by P, or the other person, at a stage which gives HMRC a reasonable opportunity to consider them. The review may conclude that the decision is to be— HMRC must give P, or the other person, notice of the conclusions of the review and their reasoning within— In sub-paragraph (6), “the relevant date” means— Where HMRC are required to undertake a review but do not give notice of the conclusions within the period specified in sub-paragraph (6), the review is to be treated as having concluded that the decision is upheld. If sub-paragraph (8) applies, HMRC must notify P, or the other person, of the conclusion which the review is treated as having reached.
Where two or more bodies are treated as members of the same group and one of those bodies ceases to be an eligible body, that body must so notify the Commissioners. A body corporate designated as a representative member of a group must not cease to have an established place of business in the United Kingdom without first notifying the Commissioners.
Where a person is liable to a penalty, the Commissioners—
may assess the amount of that penalty, and
where such an assessment is made, must notify the person of that amount.
Schedule 55 to FA 2009 (penalty for failure to make returns etc) is amended as follows. In paragraph 1(4), in the definition of “penalty date” for “13A” substitute “13B”. 13B Plastic packaging tax Return under regulations under section 61 of FA 2021
plastic packaging tax
In section 1(1) of the Isle of Man Act 1979 (common duties), at the end insert ;
plastic packaging tax
No liability to a surcharge on a relevant VAT sum arises under section 59 of VATA 1994 (the default surcharge).
Where a person is liable to a penalty under this Schedule, HMRC may assess the amount due by way of penalty and notify it to the person (subject to sub-paragraph (4)). If it appears to HMRC that the amount that ought to have been assessed in an assessment under sub-paragraph (1) exceeds the amount that was assessed, HMRC may make a supplementary assessment of the amount of the excess and notify it to the person (subject to sub-paragraph (4)). If it appears to HMRC that the amount that was assessed in an assessment under sub-paragraph (1) exceeds the amount that ought to have been assessed, HMRC may, by notice to the person, amend the assessment so as to reduce the amount due. An assessment under sub-paragraph (1) or (2) may not be made after the end of the period of 2 years beginning with the time when facts sufficient in the opinion of HMRC to indicate that the person had failed as described in paragraph 4(1)(a) and (b) came to HMRC’s knowledge. An amendment under sub-paragraph (3) may be made after the last day on which the assessment in question could have been made.
Part 5 of VATA 1994 (reviews and appeals) has effect in relation to— as if those matters were listed in section 83(1) of that Act. Section 84(3), (3B) and (3C) of that Act (requirement to deposit sum payable with HMRC) have effect in relation to appeals against decisions with respect to those matters.
A person who fails to make a return on or before the due date is liable to a penalty under this paragraph if (and only if) the condition in sub-paragraph (2) is met. The condition is that at any time (including any time after the due date), by failing to make the return, the person deliberately withholds information which would enable or assist HMRC to assess the person’s liability to tax. If the withholding of the information is deliberate and concealed, the penalty is— For the purposes of sub-paragraph (3)(a) the relevant percentage is— If the withholding of the information is deliberate but not concealed, the penalty is— For the purposes of sub-paragraph (5)(a) the relevant percentage is— Paragraph 4 explains the categories of information. The withholding of information by a person is— See paragraphs 15 and 16 for further rules about liability to a penalty.
This paragraph makes provision in relation to offshore transfers. Where the liability to tax which would have been shown in the return is a liability to income tax, the applicable condition is satisfied if the income on or by reference to which the tax is charged, or any part of the income— Where the liability to tax which would have been shown in the return is a liability to capital gains tax, the applicable condition is satisfied if the proceeds of the disposal on or by reference to which the tax is charged, or any part of the proceeds— In the case of a transfer falling within sub-paragraph (2)(b) or (3)(b), references to the income or proceeds transferred are to be read as including references to any assets derived from or representing the income or proceeds. In relation to an offshore transfer, the territory in question for the purposes of paragraph 4 is the highest category of territory by virtue of which the information involves an offshore transfer. “Relevant date” means the date on which the person becomes liable to a penalty under this Schedule.
This paragraph applies where— The amount of that penalty is to be reduced by the amount of any other penalty incurred by the person, the amount of which is determined by reference to the same liability to tax. In sub-paragraph (2), the reference to “any other penalty” does not include—
A supplementary assessment may be made in respect of a penalty under this Schedule if an earlier assessment— Sub-paragraph (3) applies if an assessment in respect of a penalty— HMRC may by notice to the person amend the assessment so that it is based upon the correct amount. An amendment under sub-paragraph (3)—
This paragraph applies where— This paragraph also applies where— The notice under section 8B or 12AAA of TMA 1970 may include provision under this paragraph cancelling liability to the penalty from the date specified in the notice.
Regulations under this Schedule are to be made by statutory instrument. Regulations under this Schedule may include transitional, transitory and saving provision. A statutory instrument containing regulations under this Schedule is subject to annulment in pursuance of a resolution of the House of Commons.
Liability to a penalty under this Schedule does not arise in respect of a failure to make a payment if the person satisfies HMRC (or on appeal, the tribunal) that the person had a reasonable excuse for the failure. For this purpose— In this paragraph “tribunal” means the First-tier Tribunal or Upper Tribunal (as appropriate by virtue of paragraph 20(1)).
In the application of the following provisions, no account is to be taken of a penalty under this Schedule—
section 97A of TMA 1970 (multiple penalties),
paragraph 12(2) of Schedule 24 to FA 2007 (interaction with other penalties), and
paragraph 15(1) of Schedule 41 to FA 2008 (interaction with other penalties).
A person may appeal against a decision of HMRC that the person is liable to a penalty under this Schedule. A person liable to a penalty under this Schedule may appeal against a decision of HMRC as to the amount of the penalty.
In section 824 of the Income and Corporation Taxes Act 1988 (repayment supplements: individuals and others), in subsection (1)—
omit paragraph (c);
in paragraph (d), for “that Act” substitute “the Finance Act 2009 or Schedules 24 to 26 to the Finance Act 2021.”
VATA 1994 is amended as follows.
FA 2009 is amended as follows.
In section 212 of FA 2014 (aggregate penalties)—
in subsection (2)(b), after “Schedule 55 to FA 2009” insert “or paragraph 3(3)(b) or (5)(b) or 20(4) of Schedule 25 to FA 2021”;
in subsection (4)—
omit the “or” at the end of paragraph (d);
at the end of paragraph (e) insert , or;
in subsection (5)—
omit the “or” at the end of paragraph (a)(ii);
at the end of paragraph (a)(iii) insert or;
omit the “or” at the end of paragraph (b)(ii);
at the end of paragraph (b)(iii) insert or;
at the end of paragraph (c)(iii) insert or;
in paragraph (d)(iii), for “and” substitute or.
FA 2014 is amended as follows.
In this Schedule—
“related business” means a business that is—
involved in the production or importation of chargeable plastic packaging components by P, including in the transportation or storage of the components, or in the manufacture or supply of raw or processed materials used in, or in the production of, the components,
supplied, whether directly or indirectly, with chargeable plastic packaging components produced or imported by P, or
involved in the marketing or sale of chargeable plastic packaging components by P as an operator of an online marketplace or fulfilment business, and
references to acting in the course of a related business include—
in relation to a business that is carried on by a body corporate, being a director, manager, secretary, chief executive or member of the committee of management, or a person purporting to act in such a capacity, and
in relation to a business that is carried on by an unincorporated association, being an officer of the association or a member of its governing body, or a person purporting to act in such a capacity.
Sub-paragraph (2) applies where it appears to the Commissioners— The Commissioners— The following are “relevant defaults”— Where it appears to the Commissioners that a default falling within sub-paragraph (3) is a default by a person (A) on whom the requirement to make a return is imposed in A’s capacity as the representative of another person (B), sub-paragraph (1)(b) applies as if the reference to the amount of plastic packaging tax due included a reference to any plastic packaging tax due from B.
An assessment under paragraph 2 or 4 may not be made after the relevant time. Except in a case within sub-paragraph (3) the relevant time is the earlier of— Where an assessment of an amount due from a person is made in a case involving loss of plastic packaging tax— the relevant time is the end of the period of 20 years from the end of the accounting period to which the assessment relates. In sub-paragraph (3) the reference to a loss brought about by a person includes a reference to a loss brought about by another person acting on behalf of that person.
The amendments made by this Schedule have effect in relation to any land transaction of which the effective date is, or is after, the commencement date. But those amendments do not have effect in relation to— A transaction is excluded for the purposes of paragraph (b) of sub-paragraph (2) if— In this paragraph “the commencement date” means 1 April 2021.
After section 208 (penalty if corrective action not taken in response to follower notice) insert—
Section 212 (aggregate penalties) is amended as follows. In subsection (2), after “(1)(b) and (c)” insert “and any penalty under section 208A that is additional to the penalty mentioned in subsection (1)(b)”. In subsection (3), after “208” insert “or 208A”.
After section 214 insert—
After section 239 insert— The amendment made by this paragraph has effect in relation to relevant transfers made on or after the day on which this Act is passed.
In section 238 (content of conduct notices), in subsection (3), at the end insert—
In section 241A (defeat notices), in subsection (4), for “come to the attention of HMRC” substitute “first come to the attention of an authorised officer”.
Sub-paragraph (2) applies where— The Commissioners may, if they consider it appropriate in light of the absence of a proper return for the earlier period, specify in the later assessment an amount of plastic packaging tax due that is greater than the amount that they would have considered to be appropriate had they had regard only to the later period.
Sub-paragraph (2) applies where— The Commissioners—
In Schedule 10 to F(No.3)A 2010 (which prospectively amends Schedule 55 to FA 2009 (penalties for failure to make returns etc)) in paragraph 7, in the inserted paragraph 13A(1), after “13A” insert “, 13B”. The amendments to Schedule 55 to FA 2009 made by Schedule 10 to F(No.3)A 2010 (including the amendment made by sub-paragraph (1)) are taken to have come into force for the purposes of plastic packaging tax on the day on which this paragraph comes into force.
An appeal under paragraph 19 is to be treated in the same way as an appeal against an assessment to the tax concerned (including by the application of any provision about bringing the appeal by notice to HMRC, about HMRC’s review of the decision or about determination of the appeal by the First-tier Tribunal or Upper Tribunal). Sub-paragraph (1) does not apply—
In the italic heading before section 59, omit “Default surcharge and other”.
In section 108 (suspension of penalties during currency of agreement for deferred payment), in subsection (5), in the Table, omit the entry for value added tax.
In the heading of Schedule 30 (section 208 penalty: value of the denied advantage), after “208” insert “or 208A”.
each successive period of 12 months.
Chapter 2 of Part 13 of CTA 2009 (relief for cost of research and development incurred by small and medium-sized enterprises) is amended as follows.
Section 59 of FA 2004 (contractors) is amended as follows. In subsection (1), for paragraph (l) substitute— For subsections (2) and (3) substitute—
Section 62 of FA 2004 (treatment of sums deducted) is amended as follows. After subsection (3) insert— In subsection (4), for “subsection (3)” substitute “this section”.
In this Schedule— In this Schedule— The Commissioners may by regulations—
A person may appeal against a decision of the Commissioners or an officer of HMRC in respect of any of the following matters— A person may also appeal against the following determinations and directions of the Commissioners or an officer of HMRC—
After regulation 7 insert— In regulation 8 (determination of section 30A charge), after “7” insert “, 7A”. In regulation 9 (relief from section 30A duty), in sub-paragraph (c)— The amendments made by this paragraph—
Before regulation 14 insert— In regulation 14 (determination of section 40A charge), before “15” insert “13B, 13C,”. The amendments made by this paragraph—
This paragraph applies where— The condition in section 59(1)(l) or (2) of FA 2004 (as the case may be) is treated as continuing to be met in relation to the body or person until the body or person is not expected to make any further expenditure on construction operations (within the meaning given by section 74 of FA 2004).
In Parts 2 and 3 of this Schedule, references to a decision include references to a determination and a direction.
“category”, in relation to an authorisation or authorised activity, has the meaning given by paragraph 1;
The amendments made by paragraphs 13, 16, 17, 20 and 21 have effect in relation to accounting periods beginning on or after 1 April 2023.
A person who has made a loss in a trade in the tax year 2021-22 may make a claim for relief under this paragraph if— Condition A is that the person makes a claim under section 64 of ITA 2007 for relief in respect of the section 64 amount for either or both of the tax years 2020-21 and 2021-22. Condition B is that the person's total income for the tax years 2020-21 and 2021-22— The amount of the loss that may be relieved under this paragraph (“the deductible amount”) is— But see sub-paragraph (9) (limit on total deductions under this paragraph). A claim for relief under this paragraph is for the deductible amount to be deducted (in accordance with whichever is applicable of sub-paragraphs (7) and (8)) in calculating the person's net income for one or more of the tax years 2018-19, 2019-20 and 2020-21 at Step 2 of the calculation in section 23 of ITA 2007 (which applies as if this paragraph were a provision listed in section 24 of that Act). A deduction is to be made only from the profits of the trade (and accordingly subsection (2) of section 25 of ITA 2007 has effect as if this sub-paragraph were included in subsection (3) of that section). This sub-paragraph explains how the deductions are to be made in a case where the person makes a claim under section 64 of ITA 2007 for relief in respect of the section 64 amount for the tax year 2020-21. Step 1 Deduct the deductible amount from the profits of the trade for the tax year 2019-20. Step 2 Deduct from the profits of the trade for the tax year 2018-19 so much of the deductible amount as has not been deducted under Step 1. This sub-paragraph explains how the deductions are to be made in any other case. Step 1 Deduct the deductible amount from the profits of the trade for the tax year 2020-21. Step 2 Deduct from the profits of the trade for the tax year 2019-20 so much of the deductible amount as has not been deducted under Step 1. Step 3 Deduct from the profits of the trade for the tax year 2018-19 so much of the deductible amount as has not been deducted under Step 1 or 2. The total amount that may be deducted in accordance with sub-paragraph (7), or in accordance with Steps 2 and 3 in sub-paragraph (8), is limited to £2,000,000. A claim for relief under this paragraph must be made on or before the first anniversary of the normal self-assessment filing date for the tax year 2021-22.
A 2020 claim may be made by a company that is not a member of a 2020 group only if the total amount of relief given as a result of the claim, when added to the total amount of relief given as a result of any other 2020 claims already made by the company, is under £2,000,000. A 2021 claim may be made by a company that is not a member of a 2021 group only if the total amount of relief given as a result of the claim, when added to the total amount of relief given as a result of any other 2021 claims already made by the company, is under £2,000,000.
For the purposes of this Part of this Schedule, a 2020 claim is a “de minimis 2020 claim” if— For the purposes of this Part of this Schedule, a 2021 claim is a “de minimis 2021 claim” if— The assumptions are— In this Part of this Schedule—
The Commissioners must by regulations make provision— The regulations may, in particular, include provision about— The reference in sub-paragraph (2)(g) to overpaid relief is to an amount paid to a company by HMRC where— In this paragraph—
The Commissioners may by regulations amend or otherwise modify the following provisions of this Part of this Schedule— Regulations under this paragraph may include supplementary, incidental, consequential or transitional provision (including provision amending or otherwise modifying a provision of this Part of this Schedule not mentioned in sub-paragraph (1)). Regulations under this paragraph are of no effect in relation to a 2020 claim or 2021 claim made before the regulations come into force. No regulations under this paragraph may be made after 31 March 2023.
The amendments made by this Schedule have effect in relation to accounting periods beginning on or after 1 April 2021.
The other amendments made by this Schedule have effect for the financial year 2023 and subsequent financial years. In the case of an accounting period (a “straddling period”) beginning before 1 April 2023 and ending on or after date, those other amendments have effect as if the different parts of the straddling period falling in the different financial years were separate accounting periods. For this purpose all necessary apportionments are to be made between the two separate accounting periods.
“arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable);
CAA 2001 is amended as follows.
In section 137 of CTA 2010 (deductions from total profits for claims for group relief), in subsection (5)—
omit paragraph (d);
at the end insert—
Where P is liable to pay an amount of plastic packaging tax, the Commissioners may assess that R is liable to pay an amount equal to or less than the amount due from P. Where such an assessment is made, the Commissioners must notify R of— The amount assessed as due from R must be an amount which the Commissioners consider just and reasonable, having regard in particular to— The Commissioners must publish guidance on the matters which they will take into account when determining whether an amount is just and reasonable. The date by which payment must be made may not be before the end of the period of 30 days beginning with the day on which R is notified in accordance with sub-paragraph (2). An amount may be assessed and notified to R even if R has made a notification under paragraph 13(1) (and the Commissioners must repay any amount that is subsequently found to have been overpaid).
R may not be required to pay plastic packaging tax if or to the extent that P has paid it (and vice versa).
Two or more bodies are eligible to be treated as members of the same group for the purposes of this Part (“eligible bodies”) if— A body is eligible to be the representative member of a group if the body— A body is not an eligible body in relation to a group if it is a member of another group.
Section 99 (long-life assets: the monetary limit) is amended as follows. In subsection (4)— After that subsection insert—
For the purposes of paragraph 1—
two or more bodies are under the same control if—
one of them controls each of the others,
one person (whether a body corporate or an individual) controls all of them, or
two or more individuals carrying on a business in partnership control all of them;
a body corporate controls another body corporate only if—
it is empowered by statute to control that body’s activities, or
it is that body’s holding company within the meaning of section 1159 of and Schedule 6 to the Companies Act 2006;
an individual controls, or individuals control, a body corporate only if they would be that body’s holding company within the meaning of those provisions, if they were a company.
In Part 2 of Schedule 1 (defined expressions), omit the entry for “related 51% group company”.
On an appeal under paragraph 19(1) that is notified to the tribunal, the tribunal may affirm or cancel HMRC’s decision. On an appeal under paragraph 19(2) that is notified to the tribunal, the tribunal may— If the tribunal substitutes its decision for HMRC’s decision in relation to a penalty under this Schedule, the tribunal may rely on paragraph 13— In sub-paragraph (3)(b)“flawed” means flawed when considered in the light of the principles applicable in proceedings for judicial review. In this paragraph “tribunal” means the First-tier Tribunal or Upper Tribunal (as appropriate by virtue of paragraph 20(1)).
Omit sections 59 to 59B (default surcharge).
Schedule 55 (penalty for failure to make returns etc) is amended as follows. In paragraph 1— In paragraph 2 (as substituted by paragraph 3 of Schedule 10 to F(No.3)A 2010), in sub-paragraph (1)(a), for “1 to 5” substitute “2A, 4, 4A, 5”. Omit paragraphs 17A and 17B (cancellation of penalty) and the italic heading before those paragraphs. Omit paragraph 25 (partnerships) and the italic heading before that paragraph. Until the coming into force of paragraph 3 of Schedule 10 to F(No.3)A 2010, paragraph 2 of Schedule 55 to FA 2009 has effect as if for “1 to 3” there were substituted “2A”.
In Schedule 31 (follower notices and partnerships), after paragraph 4 insert—
Section 69 (breaches of regulatory provisions) is amended as follows. In subsection (4)(a), for “for a surcharge under section 59 or 59A” substitute “to a penalty point or a penalty under Schedule 24 to the Finance Act 2021”. In subsection (9)—
Schedule 56 (penalty for failure to make payments on time) is amended as follows. In paragraph 1, in the Table— In paragraph 2(c), for “1” substitute “2 and 3B”. In paragraph 3— In paragraph 8A (inserted by paragraph 7 of Schedule 11 to F(No.3)A 2010)— In paragraph 8F (inserted by paragraph 7 of Schedule 11 to F(No.3)A 2010)— Omit paragraph 8K and the italic heading before that paragraph and omit paragraph 8 of Schedule 11 to F(No.3)A 2010 that inserted them. Until the coming into force of paragraph 2(13)(a) of Schedule 11 to F(No.3)A 2010, item 23 in the Table in paragraph 1 of Schedule 56 to FA 2009 has effect as if, in columns 2 and 3, for “1” there were substituted “2, 3B”. Until the coming into force of paragraph 2(14)(a) of Schedule 11 to F(No.3)A 2010, item 24 in the Table in paragraph 1 of Schedule 56 to FA 2009 has effect as if, in column 2, for “1” there were substituted “2, 3B”.
In Schedule 31, paragraph 5 is amended as follows. In sub-paragraph (2)— In sub-paragraph (5), after “penalties” insert “under section 208(2) (as modified by this paragraph)”. In sub-paragraph (6), after “paragraph 4(2)” insert “or 4A”. In sub-paragraph (7)(a), after “penalties” insert “under section 208(2)”. The right of appeal under section 214A extends to— but not to a decision as to the appropriate share of, or the amount of a penalty payable by, a relevant partner. Section 214A(3) applies to an appeal by virtue of sub-paragraph (9A)(a) as it applies to an appeal under section 214A(1). Section 214A(5) applies to an appeal by virtue of sub-paragraph (9A)(a), and section 214A(6) to an appeal by virtue of sub-paragraph (9A)(b). In sub-paragraph (11), after “(2)(a)” insert “and (aa)”.
In section 71 (construction of sections 59 to 70), in the heading and in subsections (1) and (2), for “59” substitute “60”.
Section 76 (assessment of amounts due by way of penalty, interest or surcharge) is amended as follows. In the heading, for “penalty, interest or surcharge” substitute “penalty or interest”. In subsection (1)— In subsection (3)— In subsection (4), for “penalty, interest or surcharge”, in both places, substitute “penalty or interest”. In subsection (5), for “penalty, interest or surcharge”, in both places, substitute “penalty or interest”.
In section 77 (assessments: time limits and supplementary assessments), in subsections (2), (3) and (5), for “penalty, interest or surcharge” substitute “penalty or interest”.
In section 81 (interest given by way of credit and set-off of credits), in subsections (3)(b) and (3A)(c), for “penalty, interest or surcharge” substitute “penalty or interest”.
In section 83 (appeals), in subsection (1)—
in paragraph (n)—
omit “or surcharge”;
for “59” substitute “60”;
in paragraph (q), for “penalty, interest or surcharge” substitute “penalty or interest”.
In section 83F (nature of review etc), after subsection (5) insert—
After section 83F insert—
After section 83FA (inserted by paragraph 25) insert—
In section 84 (further provisions relating to appeals), in subsection (6)—
for “penalty, interest or surcharge” substitute “penalty or interest”;
for “59” substitute “60”.
In Schedule 13 (transitional provisions and savings), omit paragraph 14.
If the disposal event occurs in a chargeable period that commenced before 1 April 2023 the amount of the balancing charge is the amount determined under subsection (3) multiplied by the relevant factor.
The relevant factor is 1.3 if the chargeable period ends before 1 April 2023.
If the chargeable period ends on or after 1 April 2023, the relevant factor is determined by—
dividing the number of days in the period before 1 April 2023 by the total number of days in that period,
multiplying that amount by 0.3, and
adding 1 to the result.
The balance of an amount of super-deduction expenditure in respect of which a super-deduction is made after deducting that super-deduction is to be treated as nil for the purposes of section 58(5)(b) and (6) of CAA 2001 (allocation of balance of first-year qualifying expenditure to a pool).
In relation to the chargeable period in which the disposal event occurred, TDR (see section 55(1)(b) of CAA 2001) for the pool to which the relevant super-deduction expenditure was allocated is to be reduced by the relevant proportion of the disposal value of the plant or machinery.
Section 135(1) of CAA 2001 (claim for deferment of balancing charges) does not apply in relation to a disposal event in respect of a ship to which this section applies.
This section has effect in relation to disposals occurring on or after 1 April 2021.
This section applies to plant or machinery in respect of which a person incurred SR allowance expenditure in a chargeable period (“the allowance period”) if an SR allowance was made in respect of some or all of that expenditure.
Where a disposal event occurs in relation to plant or machinery to which this section applies, the person who incurred relevant SR expenditure in respect of it is liable to a balancing charge for the chargeable period in which the event occurs (whether or not the person is also liable to any other balancing charge for that period).
The amount of the balancing charge is the relevant proportion of the disposal value of the plant or machinery (see sections 61 to 63 of CAA 2001 which, among other provisions of Part 2 of that Act, contain provision about disposal values).
The relevant proportion is determined by—
dividing the amount of relevant SR allowance expenditure incurred in respect of the plant or machinery by 2, and
dividing that amount by the amount of total relevant expenditure in relation to the plant or machinery.
For the purposes of this section— SR allowance expenditure is “relevant” if an SR allowance was made in respect of it; “total relevant expenditure” in relation to plant or machinery means the sum of the following expenditure incurred in respect of it— relevant SR allowance expenditure, any expenditure in respect of which any other first-year allowance was made, and any expenditure that is not relevant SR allowance expenditure that was allocated to a pool for any chargeable period (including for the period in which the disposal event occurs).
“data protection legislation” has the meaning given by section 3(9) of the Data Protection Act 2018;
Sections 37(3)(b) and 38(1) and (3) of CTA 2010 (relief for trade losses against profits of same or earlier accounting period) have effect in relation to any loss to which this paragraph applies as if references to 12 months were references to 3 years (but subject as follows). This paragraph applies to any loss incurred by a company in a trade in a relevant accounting period. In this paragraph “relevant accounting period” means an accounting period that ends in the period beginning with 1 April 2020 and ending with 31 March 2022. Sub-paragraph (5) applies where— A claim for relief under section 37 of CTA 2010 by virtue of this paragraph in respect of the relevant loss is treated, so far as possible, as being made in respect of the part of the loss that is not relievable as mentioned in sub-paragraph (4)(b). Section 42 of CTA 2010 (ring fence trades: further extension of period of relief) has effect as if—
A non-de minimis claim must be made in the company tax return (whether as originally made or by amendment) for the accounting period in which the loss in respect of which the claim is made is incurred. The company tax return for any earlier accounting period affected by the claim is treated as amended accordingly.
A non-de minimis 2020 claim may be made by a company that is a member of a 2020 group only if— A non-de minimis 2021 claim may be made by a company that is a member of a 2021 group only if—
In this Part of this Schedule— A reference in this Part of this Schedule to the total amount of relief given as a result of a 2020 claim or 2021 claim—
Section 5(4) to (6) of CT(NI)A 2015 (commencement) has effect as if references to Part 8B of CTA 2010 were to that Part as amended by this Schedule.
A joint and several liability notice given to a person (“R”) makes that person jointly and severally liable to pay plastic packaging tax that another person (“P”) will be liable to pay in respect of so much of any accounting period of P as falls within the period of two years beginning with—
the day on which the notice is given to R, or
if a joint and several liability notice is given to R at a time when another joint and several liability notice already has effect in relation to R, the day after the day on which the previous notice ceases to have effect.
When the Commissioners give a joint and several liability notice to R, they must, as soon as practicable, give a copy of that notice to P.
Where an assessment to P is withdrawn or reduced, or P’s liability in respect of plastic packaging tax is otherwise adjusted, the Commissioners may determine that R’s liability is to be cancelled or reduced, or otherwise adjusted, in whatever way they consider just and reasonable, having regard in particular to their reasons for considering that paragraph 10(2) or (3) applies to R. If the Commissioners decide to reduce or cancel the amount which R is liable to pay, or make any other adjustment to the assessment to R, they must, within the period of 30 days beginning with the day on which they make their decision—
An authorised person may at any time take such samples from a product as the person requires for the purpose of determining how the product ought to be treated, or ought to have been treated, for the purposes of plastic packaging tax. A sample may only be taken under this paragraph if the authorised person— A sample taken under this paragraph must be disposed of in such manner as the Commissioners may direct. In this paragraph “authorised person” means a person acting under the authority of the Commissioners.
This paragraph applies to— A statement made, or a document produced, by or on behalf of the person is not inadmissible in proceedings to which this paragraph applies only by reason that— The matters falling within this sub-paragraph are— The matter falling within this sub-paragraph is the fact that the Commissioners or, on appeal, an appeal tribunal have power by or under this Part to reduce a penalty.
Where two or more bodies are treated as members of the same group, the representative member may apply to the Commissioners to— from the time specified in the application (the “specified time”). The “specified time” means the beginning of the accounting period specified in the application but the period specified must not be a period before the period in which the application is made.
CAA 2001 is amended as follows.
This paragraph applies for the interpretation of the tables in paragraph 1. An assessment or determination by HMRC is made in default of a return if it is made where— An assessment or determination by HMRC is made otherwise than in default of a return if it is made otherwise than as described in sub-paragraph (2).
The Commissioners may only refuse an application under paragraph 5(1)(a) or (1)(b) if they consider it necessary to refuse the application for the protection of the revenue. The Commissioners may only refuse an application under paragraph 5(1)(c) or (1)(d) if—
Section 3 (claims for capital allowances) is amended as follows. After subsection (2) insert— In subsection (2ZA)—
Section 570B (orders and regulations) is amended as follows. In subsection (3), for “70YJ” substitute “45P, 70YJ or 270BNC”. After that subsection insert—
After section 573 insert—
freeport tax site section 573A
In relation to the chargeable period in which the disposal event occurred, TDR (see section 55(1)(b) of CAA 2001) for the pool to which the SR allowance expenditure in respect of the plant or machinery was allocated is to be reduced by the amount of the balancing charge.
Section 135(1) of CAA 2001 (claim for deferment of balancing charges) does not apply in relation to a disposal event in respect of a ship to which this section applies.
This section has effect in relation to disposals occurring on or after 1 April 2021.
Any relevant tax advantage that would (in the absence of this section) be obtained as a result of relevant arrangements is to be counteracted by the making of such adjustments as are just and reasonable.
A tax advantage is “relevant” if that advantage is connected with a super-deduction or an SR allowance (for example, the obtaining of such a first-year allowance or the avoidance of a balancing charge under section 12 or 13).
Arrangements are “relevant” if—
the purpose, or one of the main purposes, of the arrangements is to obtain a relevant tax advantage, and
it is reasonable, taking account of all the relevant circumstances—
to conclude that the arrangements are, or include steps that are, contrived, abnormal or lacking a genuine commercial purpose, or
to regard the arrangements as circumventing the intended limits of relief under CAA 2001 or otherwise exploiting shortcomings in that Act.
Any adjustments required to be made under this section (whether or not by an officer of Revenue and Customs) may be made by way of— or otherwise.
an assessment,
the modification of an assessment,
amendment or disallowance of a claim (whether a claim for a first-year allowance or otherwise),
In this section—
Section 1058 (amount of tax credit) is amended as follows. In subsection (1)— After subsection (1), insert— For subsection (2) substitute—
Schedule 41 to FA 2008 (penalties: failure to notify etc) is amended as follows. Plastic packaging tax Obligation under section 56 of FA 2021 (obligation to give notice of liability to be registered). In paragraph 7(9) (potential lost revenue), in the opening words, after “insurance premium tax,” insert “plastic packaging tax ,”.
After regulation 13 insert— In regulation 14 (determination of section 40A charge), after “13,” insert “13A,”. In regulation 16 (relief from section 40A duty), in paragraph (1)(c)— The amendments made by this paragraph—
Where provision inserted by this Schedule— that power may (amongst other things) be exercised to make similar provision relating to other goods, including provision having retrospective effect provided any such retrospective provision does not impose or increase taxation.
relates to particular goods, and
is to have effect as if made under a power conferred by TCTA 2018,
In section 98 of TMA 1970 (penalty for failure to provide information etc), in the second column of the Table, in the entry relating to CAA 2001, after “45G(4) and (5),” insert “45R(5) and (6),”.
This paragraph applies for the interpretation of this Schedule. References to the Table are to the Table in paragraph 2 (unless otherwise specified). References to “return” include any return, information, statement, account or other document specified in column A, B or C of the Table. Each entry in Column A, B or C of the Table is a “group” of returns, and references to returns in or belonging to a group of returns are to be read accordingly. References to group 1A are to the group of returns in item 1, column A, to group 1B are to the group of returns in item 1, column B, and so on. Each numbered paragraph in group 1B, 2B or 3B is a “digital reporting sub-group” of returns, and references to returns in or belonging to a digital reporting sub-group of returns are to be read accordingly. References to digital reporting sub-group (1) of group 1B are to the returns in paragraph (1) in item 1, column B, to digital reporting sub-group (2) of group 1B are to the returns in paragraph (2) in item 1, column B, and so on. Any reference to making a return includes a reference to filing, delivering or submitting a return. “Due date”, in relation to a return, means the date by which it is required to be made. A failure to make a return on or before the due date is treated as occurring on the day after the due date. “HMRC” means Her Majesty’s Revenue and Customs.
Where a person is liable to a penalty point for a group of returns, HMRC may award the person a penalty point for that group. Where HMRC award a penalty point they must notify the person, and state in the notice— HMRC may not award a penalty point after— Date A is the end of the period of x weeks beginning with— In sub-paragraph (4) “x weeks” means— Date B is the last day of the period of 12 months beginning with— In sub-paragraph (6)(a)— If more than one return is the relevant return by virtue of paragraph (b) of the definition of “relevant return” in sub-paragraph (7) and the same day is not date B in relation to all of those returns, treat date B as being the latest of those days. Date C— For the purposes of this Schedule, a person “has” a penalty point if HMRC has awarded the person the penalty point, the penalty point or liability to it has not been cancelled and the penalty point has not expired.
Paragraphs 10 to 13 apply where, in relation to any item in the Table, a person— (for example, where a person ceases to be required to make returns in group 1A and instead becomes required to make returns in group 1B). But where the returns in the old group of returns relate to a business or businesses carried on by the person, paragraphs 10 to 13 apply only if the returns in the new group of returns also relate to that business or all of those businesses.
Where a person is liable to a penalty under this Schedule HMRC may assess the penalty. Where HMRC assess a penalty they must— Where a person is liable to a penalty because condition A in paragraph 15 is met, notice of an assessment of the penalty may not be issued before (but may be issued at the same time as) notice under paragraph 6 of the award of the penalty point as a result of which the person is liable to the penalty. A penalty under this Schedule must be paid before the end of the period of 30 days beginning with the day on which notification of the penalty is issued. An assessment of a penalty under this Schedule—
This paragraph applies where— This paragraph also applies where— This paragraph also applies where— The notice under section 8B or 12AAA of TMA 1970 may include provision cancelling liability to the penalty point or the penalty.
For the purposes of this Schedule— The deemed single person referred to in paragraph (a) is to be treated as continuing in existence even if there is a change in the trustees of the settlement. Where the deemed single person referred to in paragraph (a) is assessed to a penalty, every relevant trustee is jointly and severally liable for the penalty. For the purposes of sub-paragraph (3)—
A person is not liable to a penalty under this Schedule in respect of a failure or action in respect of which the person has been convicted of an offence.
After section 1058 insert—
This paragraph applies to determine the penalty points the person has for the new group of returns, on becoming required to make returns for the new group of returns. If the person has no penalty points for the old group of returns, the person has no penalty points for the new group of returns. If the person has penalty points for the old group of returns, the number of penalty points the person has for the new group of returns is determined by taking the number of penalty points the person has for the old group of returns and adjusting it in accordance with the table below. If the adjustment gives a number of less than zero, treat the adjusted number of penalty points as zero. Column in which old group of returns falls Column in which new group of returns falls Adjustment Column A Column B Add 2 penalty points Column C Add 3 penalty points Column B Column A Deduct 2 penalty points Column C Add 1 penalty point Column C Column A Deduct 3 penalty points Column B Deduct 1 penalty point
This paragraph applies if the adjusted number of penalty points for the new group of returns is greater than zero, but less than the actual number of penalty points for the old group of returns. Treat the person as having, for the new group of returns, the penalty points which were awarded in respect of the x most recent relevant failures (but if a single penalty point was awarded in respect of more than one relevant failure, for the purposes of this sub-paragraph treat those relevant failures as a single relevant failure). “X” is the adjusted number of penalty points for the new group of returns. Treat the penalty points in respect of the other relevant failures as having expired (so that the person has no penalty points for the old group of returns). In this paragraph “relevant failure” means a failure to make a return in the old group of returns on or before its due date, in respect of which a penalty point was awarded.
This paragraph applies if the adjusted number of penalty points for the new group of returns is greater than the actual number of penalty points for the old group of returns. Treat all the penalty points for the old group of returns as penalty points for the new group of returns. Treat the additional penalty points as having been awarded in respect of relevant failures occurring on the same day as the most recent relevant failure. For this purpose the additional penalty points are the penalty points added by way of adjustment to the actual number of penalty points for the old group of returns. In this paragraph “relevant failure” means a failure to make a return in the old group of returns on or before its due date, in respect of which a penalty point was awarded.
Paragraph 8 applies in relation to the new group of returns with the following modifications. Sub-paragraph (3) applies as if for the words from “month in which” to the end there were substituted “first month for all or part of which a return in the new group of returns is required to be made”. The reference in sub-paragraph (5) to returns in the group includes returns in the old group of returns.
This section has effect in relation to any relevant arrangements entered into on or after 3 March 2021.
In section 32(1) of FA 2019 (which increases the maximum amount of the annual investment allowance to £1,000,000 for the period of two years beginning with 1 January 2019), for “two years” substitute “ three years ”.
In consequence of the amendment made by subsection (1)—
in section 32(2) of that Act, for “2021” substitute “ 2022 ”,
in paragraph 2 of Schedule 13 to that Act and the heading before that paragraph, for “2021” (in each place) substitute “ 2022 ”,
in paragraph 3(3)(b) of that Schedule, for “two years” substitute “ three years ”, and
in the heading for that Schedule, for “2021” substitute “ 2022 ”.
Chapter 13 of Part 2 of CAA 2001 (plant and machinery allowances: provisions affecting mining and oil industries) is amended as follows.
Section 163 (meaning of “general decommissioning expenditure” for purposes of sections 164 and 165) is amended as follows.
In subsection (1), at the end of paragraph (a), omit “or” and insert—.
In subsection (2), for “that is” substitute “ paragraphs (a) and (b) of subsection (1) are ”.
In subsection (3A)—
in the words before paragraph (a), omit “in complying with”;
in paragraph (a), at the beginning insert “ in complying with ”;
in paragraph (b)—
at the beginning insert “ in complying with ”;
at the end omit “or”;
in paragraph (c)—
at the beginning insert “ in complying with ”;
at the end insert, or
After subsection (3A) insert—
After subsection (3AA) (inserted by subsection (6) of this section) insert—
In each of subsections (4ZA) and (4ZB), for “subsection (1)” substitute “ subsection (1)(a) or (b) ”.
After section 163 insert—
The amendments made by this section have effect in relation to expenditure incurred on or after 3 March 2021.
In Part 2 of CAA 2001, Chapter 6A (interpretation of provisions about long funding leases) has effect subject to the following modifications.
Section 70YB (long funding operating lease: extension of term of lease) has effect as if, in subsection (1), at the beginning there were inserted “Subject to section 70YCA (extension of term of lease for reasons related to coronavirus),”.
Section 70YC (extension of term of lease that is not a long funding lease) has effect as if, in subsection (1), at the beginning there were inserted “Subject to section 70YCA (extension of term of lease for reasons related to coronavirus),”.
That Chapter has effect as if after section 70YC there were inserted—
Schedule 2 contains provision for a temporary extension of the periods to which trade losses may be carried back.
Schedule 3 makes provision about the amount of the tax credit to which a company may be entitled under Chapter 2 of Part 13 of CTA 2009 (relief for cost of research and development incurred by small and medium-sized enterprises).
Schedule 4 makes corresponding provision for Northern Ireland companies within the meaning of Part 8B of CTA 2010 (trading profits taxable at the Northern Ireland rate).
In— for “6 April 2021” substitute “ 6 April 2023 ”.
section 257K(1)(a)(iii) of ITA 2007 (date by which investment must be made to qualify for social investment tax relief), and
paragraphs 1(3)(b) and 2(2)(b) of Schedule 8B to TCGA 1992 (date by which gains re-invested in social enterprises must accrue to qualify for hold-over relief),
Chapter 10 of Part 2 of ITEPA 2003 (workers' services provided through intermediaries to public authorities or medium or large clients) is amended as follows.
In section 61N (worker treated as receiving earnings from employment)—
in subsection (3), for “and 61V” substitute “ , 61V and 61WA ”;
in subsection (5), for “section 61V” substitute “ sections 61V and 61WA ”;
in subsection (5A), in the words before paragraph (a), for “and 61V” substitute “ , 61V and 61WA ”.
In section 61O (conditions where intermediary is a company)—
in subsection (1), for paragraph (b) substitute—;
after subsection (1) insert—;
after subsection (4) insert—
In section 61S(4) (deductions from chain payments), for “services-provider” substitute “ relevant person ”.
In section 61T(3) (client-led status disagreement process), for “section 61V” substitute “ sections 61V and 61WA ”.
In section 61U (information to be provided by worker and consequences of failure)—
in the heading, after “worker” insert “ or intermediary ”;
in subsection (1), for “the worker” substitute “ the relevant person ”;
in subsection (2), for “the worker” substitute “ the relevant person ”;
“relevant person” means the worker or, in a case where the worker has not complied with subsection (1), the intermediary;
In section 61V (consequences of providing fraudulent information)—
in subsection (2), in the words before paragraph (a), for “services-provider” substitute “ relevant person (or if more than one, the first relevant person) in relation to whom the fraudulent documentation condition is met ”;
in subsection (3), for “involves the services-provider” substitute “ may involve a services-provider ”;
in subsection (5), after paragraph (c) insert—
After section 61W insert—
In section 688AA(2)(a) (workers' services provided through intermediaries: recovery of PAYE), after “to a worker” insert “ (other than by virtue of section 61WA) ”.
The amendments made by this section have effect in relation to deemed direct payments treated as made on or after 6 April 2021.
Section 27 of ITEPA 2003 (UK-based earnings for year when employee not resident in UK) is amended in accordance with subsections (2) to (5).
In subsection (1)—
omit the “or” at the end of paragraph (a), and
at the end of paragraph (b) insert, or
In subsection (2), for “(1)” substitute “ (1)(a) or (b) ”.
After subsection (2) insert—
In subsection (3), for “Subsection (2) applies” substitute “ Subsections (2) and (2A) apply ”.
In section 402B of ITEPA 2003 (termination payments, and other benefits, that cannot benefit from the section 403 threshold, to be treated as earnings), in subsection (1)—
the words from “is treated” to the end become paragraph (a), and
after that paragraph insert, but
In section 402D of ITEPA 2003 (post-employment notice pay)—
in subsection (3), for “and (6)” substitute “ , (6) and (6A) ”;
in subsection (6), after “month, ” insert “ the employee's basic pay is paid in equal monthly instalments, ”;
after subsection (6) insert—
The amendments made by this section have effect in relation to general earnings to which section 402B of ITEPA 2003 applies that are paid—
on or after 6 April 2021, and
in connection with a termination of employment that takes place on or after that date.
Section 155 of ITEPA 2003 (cash equivalent of the benefit of a van) is amended in accordance with subsections (2) and (3).
In subsection (1B)—
in paragraph (a), for “2021-22” substitute “ 2020-21 ”;
omit the “and” at the end of that paragraph;
after that paragraph insert—.
In subsection (1C) omit paragraph (g).
In section 170 of ITEPA 2003 (orders etc relating to Chapter 6 of Part 3 of ITEPA 2003), in subsection (1A)—
in paragraph (b), after “zero-emission van” insert “ in tax years 2015-16 to 2020-21 ”;
omit the “and” at the end of that paragraph;
after that paragraph insert—.
In FA 2020, for section 107 substitute—
If a cycle, or cyclist's safety equipment, was first provided for an employee before 21 December 2020, Condition B in section 244(3) of ITEPA 2003 (requirement that cycle or cyclist's safety equipment is used mainly for commuting etc) is treated as met in relation to the provision for that employee of that cycle or equipment for the period commencing with 16 March 2020 and ending with 5 April 2022.
In this section “cycle” and “cyclist” have the meanings they have in section 244 of ITEPA 2003 (see subsection (5) of that section).
No liability to income tax arises in respect of—
the provision to an employee of a coronavirus test, or
the payment or reimbursement, to or in respect of an employee, of the cost of such a test.
In this section “coronavirus test” means a test which detects the presence of a viral antigen or viral ribonucleic acid (RNA) specific to severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2).
This section has effect as if it were contained in Part 4 of ITEPA 2003 (employment income: exceptions).
This section has effect in relation to the tax years 2020-21 and 2021-22 (and to the extent the relief provided for by the Income Tax (Exemption of Minor Benefits) (Coronavirus) Regulations 2020 (S.I. 2020/1293) is provided for by this section, it supersedes those regulations).
The Treasury may by regulations provide that this section is also to have effect in relation to such subsequent tax years as may be specified in the regulations.
In Schedule 2 to FA 2017 (optional remuneration arrangements), in paragraph 62(9), for “or statutory shared parental pay” substitute “ , statutory shared parental pay or statutory parental bereavement pay ”.
That Schedule has effect, and is to be deemed always to have had effect, with the amendment made by subsection (1).
Section 218(2C) and (2D) of FA 2004 (indexation of standard lifetime allowance) do not apply in relation to the standard lifetime allowance for the tax years 2021-22, 2022-23, 2023-24, 2024-25 and 2025-26 (so that the amount of the standard lifetime allowance for each of those tax years remains at the amount for the tax year 2020-21, namely £1,073,100).
Schedule 5 contains amendments of Part 4 of FA 2004 (pension schemes etc) relating to collective money purchase benefits.
Schedule 6 contains provision amending Chapter 3 of Part 3 of FA 2004 (construction industry scheme).
In particular, the Schedule makes provision about—
contractors,
deductions on account of tax from contract payments,
the treatment of sums deducted, and
penalties.
This section applies to a payment which—
is made by Her Majesty's Revenue and Customs in the exercise of a function which they have as a result of a direction given by the Treasury under section 76 of the Coronavirus Act 2020, and
is made to a person by reason of the person's receipt of any tax credit specified in the direction on a date so specified.
No liability to income tax arises in respect of a payment to which this section applies.
But subsection (2) does not prevent the application of paragraph 8 of Schedule 16 to FA 2020 (charge to income tax where person not entitled to coronavirus support payment) in relation to a payment to which this section applies.
In section 106 of FA 2020 (taxation of coronavirus support payments), in subsection (3)—
after “provision about” insert “ (including provision modifying) ”;
for “(2)(c)” substitute “ (2)(b) ”.
In paragraph 3(3) of Schedule 16 to FA 2020 (self-employment income support scheme payments to be treated as receipts of the tax year 2020-21), for “2020-21” substitute “ in which the payment was received ”.
In paragraph 8 of that Schedule (charge if person not entitled to coronavirus support payment)—
in sub-paragraph (3)—
in the words before paragraph (a), after “scheme” insert “ or the self-employment income support scheme ”;
in paragraph (b), before “because” insert “ in the case of a payment made under the coronavirus job retention scheme, ”;
in sub-paragraph (4)(a), after “scheme” insert “ or the self-employment income support scheme ”.
The amendments made by subsections (2) and (3) have effect in relation to coronavirus support payments received on or after 6 April 2021.
In this section “coronavirus support payment” has the meaning it has in Schedule 16 to FA 2020 (see section 106(2) and (5) of that Act).
This section applies if—
a person (“A”) carrying on a business would, but for a coronavirus support arrangement, have incurred a liability to pay a charge to a public authority,
an expense incurred in discharging that liability would have been deductible in calculating the profits of the business for the purposes of income tax or corporation tax, and
an amount in respect of some or all of that liability is paid to that or any other public authority.
In calculating the profits of the business of A for those purposes—
a deduction is allowed for the amount paid, and
that amount is treated as if it had been paid in the period in which the charge would have been due and payable.
No deduction is otherwise allowed for the amount paid in calculating the profits of the business of any person for those purposes (including where the amount was paid by a person other than A).
For the purposes of this section “coronavirus support arrangement” means an arrangement where— is waived, or reduced, for purposes connected with the provision of support to businesses in connection with coronavirus.
a liability in respect of non-domestic rates, or
such other liability in respect of a charge payable to a public authority as may be specified in regulations made by the Treasury,
Regulations under subsection (4)(b) may have retrospective effect.
In this section “coronavirus” has the meaning it has in the Coronavirus Act 2020 (see section 1 of that Act).
This section has effect in relation to payments whether made before or after the passing of this Act.
The following provisions are repealed— and the remainder of this section makes amendments consequential on the repeal of those provisions.
sections 757 to 767 of ITTOIA 2005 (exemption from income tax for certain interest and royalty payments) and the italic heading before those sections, and
sections 914 to 917 of ITA 2007 (discretion to make royalty payments gross) and the italic heading before those sections;
In section 98 of TMA 1970 (special returns, etc)—
in subsection (4A)(b) omit “, (4DA)”, and
omit subsection (4DA).
In paragraph 3 of Schedule 18 to FA 1998 (company tax return), in sub- paragraph (5) for “, 912, 914 and 915” substitute “ and 912 ”.
In ITTOIA 2005—
in section 369 (charge to tax on interest), in subsection (3) omit paragraph (f) (and the “and” before it),
in section 578 (contents of chapter), in subsection (2)—
for “exemptions” substitute “ an exemption ”,
for “sections” substitute “ section ”,
omit “and 758 (certain interest and royalty payments)”, and
in section 683 (charge to tax on payments not otherwise charged), in subsection (4) omit paragraph (h).
In section 100 of FA 2015 (diverted profits tax: credits for tax on the same profits)—
in subsection (4C)(c) for “relevant provision” substitute “ double taxation arrangements (as defined by section 2(4) of TIOPA 2010) ”, and
omit subsection (4E).
In section 42(9) of FA 2016 (section 758 of ITTOIA 2005 not to apply to certain royalty payments)—
in paragraph (b), at the end insert “ under arrangements (within the meaning of section 917A of ITA 2007) entered into before that day ”,
omit paragraph (c) (but not the “and” at the end of it), and
for the words after paragraph (d) substitute “ the arrangements are to be regarded as DTA tax avoidance arrangements for the purposes of section 917A of ITA 2007 ”.
In consequence of the repeal of section 762 of ITTOIA 2005 made by subsection (1), the Exemption From Tax For Certain Interest Payments Regulations 2004 (S.I. 2004/2622) are revoked (and, accordingly, exemption notices issued in accordance with those regulations are cancelled).
The amendments made by this section have effect in relation to—
payments made on or after 1 June 2021, and
payments made in disqualifying circumstances on or after 3 March 2021 but before 1 June 2021.
A payment is made in “disqualifying circumstances” if it is made directly or indirectly in consequence of, or otherwise in connection with, any arrangements the main purpose, or one of the main purposes, of which is to secure that the provisions mentioned in subsection (1)(a) or (b) continue to have effect in relation to it.
For this purpose “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).
A payment that meets conditions A to C is to be regarded as a “qualifying payment” for the purposes of paragraph 3(1) and (2) of Schedule 15 to FA 2020 (exemption from income tax).
Condition A is that the payment is made by or on behalf of a public authority.
Condition B is that the payment is made to a person in respect of whom—
there are reasonable grounds to believe the person may be a victim of slavery or human trafficking, and
no conclusive determination has been made identifying the person as a victim for the purposes of Article 10 of the Trafficking Convention.
Condition C is that the payment is made for the purposes of providing the person assistance or support of the kind mentioned in Article 12 of the Trafficking Convention (as contemplated by Article 10).
In this section—
“the Trafficking Convention” means the Council of Europe Convention on Action against Trafficking in Human Beings (done at Warsaw on 16 May 2005);
“public authority” includes any person certain of whose functions are functions of a public nature.
This section has effect in relation to qualifying payments received on or after 1 April 2009.
Schedule 7 makes amendments to Part 6A of TIOPA 2010 (hybrid and other mismatches).
Schedule 8 makes provision about corporation tax relief for losses and other amounts.
Part 10 of TIOPA 2010 (corporate interest restriction) is amended as follows.
In section 452 (Real Estate Investment Trusts), after subsection (2) insert—
The amendment made by subsection (2) is treated as having come into force on 21 July 2020.
In Schedule 7A (interest restriction returns), after paragraph 29 insert—
That Schedule has effect, and is to be deemed always to have had effect, with the amendment made by subsection (4).
In CTA 2010, after section 987B insert—
The amendment made by this section has effect in relation to accounting periods beginning on or after 1 April 2020.
Section 1L of TCGA 1992 (which provides for an increase in the annual exempt amount to reflect increases in CPI) does not apply for the tax years 2021-22 and 2022-23 (so that the annual exempt amount for each of those tax years remains at £12,300).
In section 167 of TCGA 1992 (gifts to foreign-controlled companies), in subsection (2)(b), at the beginning insert “ is or ”.
The amendment made by subsection (1) has effect in relation to a disposal made on or after 6 April 2021.
A tax called “plastic packaging tax” is to be charged in accordance with this Part.
The Commissioners are responsible for the collection and management of plastic packaging tax.
The charge to plastic packaging tax arises when a chargeable plastic packaging component is—
produced in the United Kingdom by a person acting in the course of a business, or
imported into the United Kingdom on behalf of such a person.
The reference in subsection (1) to “a business” includes any activity of a government department or other public authority, or of a charity, that is carried out for commercial purposes.
Subsection (1) is subject to section 52 (exempt plastic packaging components).
A person who is neither registered nor liable to be registered (see sections 55 to 57) is to be treated, for the purposes of subsection (1) of this section, as not acting in the course of a business.
Where the charge to plastic packaging tax arises in respect of a chargeable plastic packaging component by virtue of section 43(1)(a), the person who produces the component is liable to pay the amount charged.
Where the charge arises in respect of a chargeable plastic packaging component by virtue of section 43(1)(b), the person on whose behalf the component is imported is liable to pay the amount charged.
Plastic packaging tax is charged at the rate of £228.82 per metric tonne of chargeable plastic packaging components of a single specification.
The amount charged on part of a tonne is the proportionately reduced amount.
Plastic packaging tax is to be paid by reference to accounting periods determined in accordance with regulations under section 61(1) (regulations about the payment, collection and recovery of plastic packaging tax).
References in this Part to “accounting periods” are to those accounting periods.
A plastic packaging component is chargeable if—
the combined proportion of recycled plastic and attributed recycled plastic in the component, when measured by weight, is less than 30% of the total amount of plastic in the component, and
it is finished.
A plastic packaging component is taken to fall within subsection (1)(a) unless it is shown that it does not.
For the purposes of this Part, a component is “finished” if it has undergone— even if waste or surplus material remains attached to it.
its last substantial modification, or
in the case of a component that undergoes a substantial modification when it is packed or filled, its last substantial modification before being packed or filled,
Accordingly, for the purposes of this Part, waste or surplus material that remains attached to a component after its last substantial modification is not to be treated as part of the component.
The Commissioners may by regulations make provision about—
the methodology to be used, or the information or evidence required, to satisfy them that a plastic packaging component does not fall within subsection (1)(a);
the meaning of “substantial modification”.
A “packaging component” is a product that is designed to be suitable for use, whether alone or in combination with other products, in the containment, protection, handling, delivery or presentation of goods at any stage in the supply chain of the goods from the producer of the goods to the user or consumer.
Subject to section 52, it does not matter why a component within this definition is produced or imported (for example, whether it is produced or imported for use in the supply chain of the goods or by a user or consumer).
A “plastic packaging component” is a packaging component that contains more plastic, when measured by weight, than any other single substance listed in regulations under subsection (7)(a).
A packaging component that contains plastic is taken to be a plastic packaging component unless it is shown that it is not such a component.
The Treasury may by regulations amend the meaning of “packaging component” by—
adding descriptions of products, or
removing descriptions of products.
Regulations under subsection (5) may amend this Part.
The Commissioners may by regulations—
list substances for the purposes of subsection (3);
make provision about the methodology to be used, or the information or evidence required, to satisfy them that a packaging component that contains plastic is not a plastic packaging component.
“Plastic” means a material consisting of a polymer, other than a cellulose-based polymer that has not been chemically modified, to which additives or other substances may have been added.
“Recycled plastic” is plastic that has been reprocessed from recovered material by means of a chemical or manufacturing process, other than organic recycling, so that it can be used either for its original purpose or for other purposes.
“Organic recycling” means the aerobic or anaerobic treatment, under controlled conditions and using micro-organisms, of biodegradable matter, which produces stabilised organic residues or methane.
“Attributed recycled plastic” is plastic to which recovered material has been attributed in accordance with a chemical recycling certification scheme.
“Recovered material” is pre-consumer plastic or post-consumer plastic that—
has been collected and recovered as a material input, in lieu of new primary material, for a recycling or a manufacturing process, and
would otherwise have been disposed of as waste or used for energy recovery.
“Pre-consumer plastic” is plastic that is— but does not include plastic that is reused in the same process in which it was generated as scrap and from which it was recovered.
recovered from waste generated in a manufacturing process, and
processed by a reprocessing facility,
“Post-consumer plastic” is plastic— This includes returns of plastic from the distribution chain.
that is generated by households or by commercial, industrial or institutional facilities in their role as end-users of the product, and
that can no longer be used for its intended purpose.
Plastic is not to be taken as recycled plastic unless it is shown that it is recycled plastic.
The Treasury may by regulations amend the meaning of “plastic” and “recycled plastic” , “recycled plastic” and “attributed recycled plastic”.
Regulations under subsection (8) may amend this Part.
Plastic is not to be taken as attributed recycled plastic unless it is shown that it is attributed recycled plastic.
The Commissioners may by regulations make provision about the methodology to be used, or the information or evidence required, to satisfy them that plastic is recycled plastic or attributed recycled plastic.
A chargeable plastic packaging component is imported into the United Kingdom—
in the case of a component that is subject to customs formalities within the meaning given by section 1(1) of CEMA 1979, as soon as all such formalities have been complied with in respect of the component, and
in any other case, at the time of importation for the purposes of the customs and excise Acts.
Subsection (1) is subject to section 76 (Isle of Man: import and export of chargeable plastic packaging components).
The Commissioners may by regulations make provision about when a chargeable plastic packaging component is imported into the United Kingdom for the purposes of plastic packaging tax.
Regulations under subsection (3) may amend this Part.
For the purposes of this Part, a scheme is a “chemical recycling certification scheme” if—
it is a scheme under which a certified person produces plastic from recovered material and other material by means of one or more mass balance processes,
that process or (as the case may be) at least one of those processes alters the chemical structure of the recovered material, and
the scheme meets such conditions as may be specified in regulations made by the Commissioners.
A “mass balance process” is a process under which—
qualifying input material is added to other material to form a mixture (“the mixture”),
the mixture is processed, and
a certified person attributes recovered material to—
material withdrawn from the mixture after the processing, and
any waste material.
The certified person may attribute recovered material under subsection (2)(c) in any way, provided that—
the quantity of recovered material so attributed does not exceed the quantity of qualifying input material added to the mixture under subsection (2)(a),
the proportion of withdrawn fuel to which recovered material is attributed is the same as the proportion of the mixture (before it is processed) that is qualifying input material, and
the attribution meets such conditions as may be specified in regulations made by the Commissioners.
In subsections (2) and (3) “qualifying input material” means—
recovered material, or
material to which recovered material has been attributed under subsection (2)(c) in connection with an earlier mass balance process.
In this section—
The Commissioners may by regulations—
make provision about cases in which the chemical structure of recovered material is to be regarded as having been altered, or not altered, for the purposes of subsection (1)(b);
make provision about materials which are, or are not, to be regarded as withdrawn fuel for the purposes of this section.
The conditions that may be specified under section 49A(1)(c) (scheme conditions) include, in particular, conditions about—
the assessment of the scheme by an accreditation body specified, or of a description specified, in the regulations;
the types of material that may be used in a mass balance process under the scheme;
when, and the circumstances in which, materials may be mixed together as part of a mass balance process under the scheme;
the methodology that may be used as part of a mass balance process under the scheme in connection with the calculation of amounts of waste material (within the meaning of section 49A);
the measurement of materials under a mass balance process under the scheme;
the operation of a mass balance process under the scheme by reference to accounting periods or other periods of time;
which persons are required to be certified under the scheme;
the accreditation of certification bodies recognised by the scheme;
the keeping and retention of records by persons under the scheme;
the auditing of scheme members by certification bodies under the scheme;
compliance with, and enforcement of, the scheme rules;
the provision of information to HMRC and others regarding compliance by scheme members with the scheme rules.
A person's liability under section 44 to pay an amount by way of plastic packaging tax in relation to a plastic packaging component is—
deferred for as long as the direct export condition is met in relation to the component;
cancelled if the direct export condition ceases to be met in relation to the component as a result of it being exported from the United Kingdom before the end of the deferral period in accordance with regulations made by the Commissioners.
The direct export condition is met in relation to a component at any time if—
the time is within the deferral period;
the person who is liable to pay the tax (“the liable person”) intends to export it (and has intended to export it at all times since it was produced or imported);
any other conditions or requirements specified in regulations made by the Commissioners are met.
If the Commissioners are not satisfied of any matter within subsection (2) in relation to a component they may—
in a case where they are satisfied that the direct export condition was met but no longer is, notify the liable person that the condition is to be taken to have ceased to be met in relation to that component from a date specified in the notification, or
in any other case, notify the liable person that the direct export condition is to be taken never to have been met in relation to that component.
The consequence of notification is that liability to pay an amount by way of plastic packaging tax—
in a case within subsection (3)(a), ceases to be deferred in accordance with subsection (1)(a) with effect from such date as the Commissioners may specify in the notification, or
in a case within subsection (3)(b), is taken never to have been deferred in accordance with subsection (1)(a).
The deferral period in relation to a component is the period of 12 months beginning with the day on which the component is produced or imported.
This section does not apply to plastic packaging components that are used in the removal of goods from the United Kingdom and that are—
transport packaging or tertiary packaging within the meaning of regulation 3(2)(c) of the Packaging (Essential Requirements) Regulations 2015 (S.I. 2015/1640), or
road, rail, ship and air containers.
This section is subject to section 76 (Isle of Man: import and export of chargeable plastic packaging components).
No charge to plastic packaging tax arises by virtue of section 43(1)(b) in relation to plastic packaging components that are used in the delivery of goods into the United Kingdom and that are—
transport packaging or tertiary packaging within the meaning of regulation 3(2)(c) of the Packaging (Essential Requirements) Regulations 2015 (S.I. 2015/1640), or
road, rail, ship and air containers.
No charge to plastic packaging tax arises in relation to plastic packaging components if subsection (3), (4) or (6) applies to them.
This subsection applies to plastic packaging components if they are stores within the meaning of CEMA 1979 (see section 1 of that Act).
This subsection applies to plastic packaging components if they are produced or imported for use in the immediate packaging of a medicinal product.
In subsection (4)—
might reasonably be expected to be reprocessed (otherwise than as part of a mass balance process) into fuel.
This paragraph applies where— If two or more of the former group companies still exist— If only one of the former group companies still exists—
Plastic packaging tax is recoverable as a debt due to the Crown.
An amount assessed and notified to a person under paragraph 2 or 4 is recoverable on the basis that it is an amount of plastic packaging tax due from that person. But sub-paragraph (1) does not apply if, or to the extent that, the assessment has been withdrawn or reduced.
The Commissioners are not liable, on any claim for a repayment of plastic packaging tax, to repay any amount— It is a defence to any claim for repayment of an amount of plastic packaging tax that the repayment of that amount would unjustly enrich the claimant.
Sub-paragraph (2) applies where— The Commissioners may—
Any person (other than P) who has the right of appeal under paragraph 1 against a decision may require HMRC to review that decision if the person has not appealed to the appeal tribunal under that paragraph. A notification that such a person requires a review must be made within the period of 30 days beginning with the day on which that person became aware of the decision.
This paragraph applies if— HMRC must review the decision under paragraph 5 if— But HMRC shall not review a decision if P, or another person, has appealed to the appeal tribunal under paragraph 1 in respect of the decision.
An appeal under paragraph 1 is to be made to the appeal tribunal before— But that is subject to sub-paragraphs (3) to (5). In a case where HMRC are required to undertake a review under paragraph 5— In a case where HMRC are requested to undertake a review under paragraph 7— In a case where paragraph 8(8) applies, an appeal may be made at any time from the end of the period specified in paragraph 8(6) to the date 30 days after the conclusion date. An appeal may be made after the end of any period specified in this paragraph if the appeal tribunal gives permission to do so. In this paragraph, “conclusion date” means the date of the document notifying the conclusions of the review.
In Schedule 56 to FA 2009, in the Table in paragraph 1 (penalty for failure to make payments on time)—
11AA Plastic packaging tax Amount payable under regulations under section 61 of FA 2021 The date determined by or under regulations under section 61 of FA 2021 as the date by which the amount must be paid 11AB Plastic packaging tax Amount payable by virtue of secondary liability and assessment notice or joint and several liability notice under Schedule 9 to FA 2021 The date determined in accordance with Schedule 9 to FA 2021 as the date by which the amount must be paid
16AA Plastic packaging tax Amount assessed under Schedule 10 to FA 2021 The date by which the amount would have been required to be paid if it had been shown in the return
Paragraph 16(1) of Schedule 41 to FA 2008 (penalties: failure to notify etc) has effect in its application to plastic packaging tax as if for “shall” there were substituted “may”. The following provisions have effect in their application to plastic packaging tax as if in each case for “must” there were substituted “may”—
In this Schedule— Here is the table— Authorisation Authorised activity Licensing authority Category A licence under section 46 of TPCA 1847 Driving a hackney carriage The Commissioners (within the meaning of TPCA 1847) 1 A licence under section 8 of MPCA 1869 Driving a hackney carriage (London) Transport for London 1 A licence under section 9 of PCCA 1975 Driving a private hire vehicle (Plymouth) Plymouth City Council 1 A licence under section 51 of LG(MP)A 1976 Driving a private hire vehicle A district council (within the meaning of Part 2 of LG(MP)A 1976) 1 A licence under section 13 of PHV(L)A 1998 Driving a private hire vehicle (London) The licensing authority (within the meaning of PHV(L)A 1998) 1 A licence under section 13 of PCCA 1975 Operating a private hire vehicle (Plymouth) Plymouth City Council 2 A licence under section 55 of LG(MP)A 1976 Operating a private hire vehicle A district council (within the meaning of Part 2 of LG(MP)A 1976) 2 A licence under section 3 of PHV(L)A 1998 Operating a private hire vehicle (London) The licensing authority (within the meaning of PHV(L)A 1998) 2 A site licence under SMDA 2013 (see section 2 of that Act) Carrying on business as a scrap metal dealer at a site A local authority (within the meaning of SMDA 2013) 3 A collector’s licence under SMDA 2013 (see section 2 of that Act) Carrying on business as a scrap metal dealer as a mobile collector A local authority (within the meaning of SMDA 2013) 4 In the table—
HMRC must make arrangements (whether by means of a website or otherwise) for— HMRC must make arrangements (whether by means of a website or otherwise) for enabling licensing authorities to confirm the availability during any period of arrangements made pursuant to sub-paragraph (1)(a).
HMRC (or anyone acting on their behalf) may, for the purpose mentioned in sub-paragraph (2), disclose to a licensing authority (or anyone acting on their behalf) any confirmation or other information given to HMRC in the course of a tax check. The purpose is to enable or assist the licensing authority or HMRC to comply with this Schedule. A person who receives information as a result of this paragraph— If— section 19 of CRCA 2005 (offence of wrongful disclosure) applies in relation to that disclosure as it applies in relation to a disclosure in contravention of section 20(9) of that Act. Nothing in this paragraph authorises a disclosure of information if the disclosure would contravene the data protection legislation or is prohibited by the investigatory powers legislation (but in determining whether a disclosure would do either of those things, the power conferred by sub-paragraph (1) is to be taken into account). In sub-paragraph (5)— Nothing in this section limits the circumstances in which information may be disclosed under section 18(2) of CRCA 2005 or under any other enactment or rule of law.
A reference in this Schedule to an individual or company applying for an authorisation includes a reference to that individual or company applying, in their capacity as a partner in a partnership, for an authorisation of the partnership. In relation to an application for an authorisation of the kind mentioned in sub-paragraph (1)— In this paragraph—
But sub-paragraph (1)(b) does not give a right of appeal against the amount of an increased daily penalty payable as a result of paragraph 49A.
This paragraph applies where, in a case to which section 269ZVA of CTA 2010 (inserted by paragraph 3 of this Schedule) applies— For the purposes of Part 7ZA of CTA 2010, section 269ZT(4) of that Act is satisfied if the statement is received by HMRC on or before 31 March 2022.
This paragraph applies where— Where loss or damage has been, or may be, incurred by P as a result of mistaken assumptions made in P’s case about the operation of any provisions relating to plastic packaging tax, that loss or damage is to be disregarded, except to the extent of the quantified amount, in the making of a relevant determination. In sub-paragraph (2)— The reference in sub-paragraph (2) to provisions relating to plastic packaging tax is a reference to—
In Schedule 11 to F(No.3)A 2010 (which prospectively amends Schedule 56 to FA 2009 (penalties for failure to make payments)), in paragraph 2— The amendments to Schedule 56 to FA 2009 made by Schedule 11 to F(No.3)A 2010 (including the amendments made by this paragraph) are taken to have come into force for the purposes of plastic packaging tax on the day on which paragraph 4 of this Schedule comes into force.
In paragraph 48 (procedure on appeal against penalty)—
in sub-paragraph (3), for “paragraph 47(a)” substitute “paragraph 47(1)(a)”, and
in sub-paragraph (4), for “paragraph 47(b)” substitute “paragraph 47(1)(b)”.
Paragraph 49A (increased daily penalty) is amended as follows. In sub-paragraph (1)(c), for “imposed” substitute “assessable”. In sub-paragraph (2), for “imposed” substitute “assessable”. If the tribunal decides that an increased daily penalty should be assessable— The new maximum amount may not be more than £1,000. In sub-paragraph (5), in the opening words, for “the amount” substitute “the new maximum amount”. In sub-paragraph (6), at the end insert “but as if the reference in paragraph 41(2)(a) to this Act were to FA 2021”.
Paragraph 49B is amended as follows. In sub-paragraph (1), for “a person becomes liable to a penalty” substitute “the tribunal makes a determination”. In sub-paragraph (2), for the words from “the day” to the end substitute “the new maximum amount and the day from which it applies”. Omit sub-paragraph (3).
Omit paragraph 49C.
This subsection applies to plastic packaging components if—
before or as soon as they have been produced or imported they are permanently designated or set aside for use other than in the containment, protection, handling, delivery or presentation of goods, and
the producer or person on whose behalf they were imported keeps a record of that designation or setting aside.
The Treasury may by regulations make provision creating further exemptions from plastic packaging tax.
The Commissioners may by regulations make provision in relation to cases where after a person has become liable to pay plastic packaging tax in respect of a prescribed plastic packaging component (the “charged component”), that component is—
exported from the United Kingdom;
converted into a different packaging component.
The provision that may be made is provision—
for the person to be entitled to a tax credit in respect of any plastic packaging tax charged on the charged component;
for the tax credit to be brought into account when the person is accounting for plastic packaging tax due from the person for the prescribed accounting period or periods;
for the person to be entitled to a repayment of plastic packaging tax (instead of a tax credit) in prescribed cases.
Regulations under this section may (among other things) make provision—
for any entitlement to a tax credit to be conditional on the making of a claim by the person, and specifying the period within which and the manner in which a claim may be made;
for any entitlement to a tax credit or to bring a tax credit into account to be—
conditional on compliance with prescribed requirements;
subject to prescribed minimum or maximum amounts;
specifying circumstances in which, and criteria for determining the period for which, the person is or is not entitled to a tax credit;
requiring a claim for a tax credit to be evidenced and quantified by reference to prescribed records and other documents;
requiring a person claiming any entitlement to a tax credit to keep, for the prescribed period and in the prescribed form and manner, those records and documents and a record of prescribed information relating to the claim;
for the withdrawal of a tax credit where any requirement of the regulations is not complied with;
about adjustments of liability for plastic packaging tax in connection with entitlement or withdrawal of an entitlement to a tax credit in prescribed circumstances;
about the treatment of a tax credit where the person ceases to carry on a business or otherwise is no longer liable to plastic packaging tax;
for anything falling to be determined in accordance with the regulations to be determined by reference to a direction given in accordance with the regulations by the Commissioners;
about the meaning of “converted” for the purposes of subsection (1)(b).
In this section, “prescribed” means specified in or under, or determined in accordance with provision made in or under, regulations under this section.
The Commissioners must establish and maintain a register for the purposes of collecting and managing plastic packaging tax.
The register may contain such information as the Commissioners think is required for those purposes.
The Commissioners may publish, by such means as they think fit, any information which— apart from information relating to a registration which is subject to an outstanding appeal.
is derived from the register, and
is within any of the descriptions in subsection (4),
The descriptions are—
the names of registered persons;
particulars of sites at which registered persons carry on business;
registration numbers assigned to registered persons;
where the registered person is a body corporate that is a member of a group—
the fact that it is a member of a group,
the names of the other bodies corporate that are members of the group, and
particulars of any sites at which those other bodies carry on business.
Subject to subsection (6), information may be published in accordance with this section despite any obligation not to disclose the information that would otherwise apply.
Nothing in this section authorises a disclosure of information which contravenes the data protection legislation (but in determining whether a disclosure would do so, take into account the powers conferred by this section).
In this Part—
“tax advantage” is to be construed in accordance with section 577(4) of CAA 2001.
each successive period of 12 months.
An assessment under paragraph 2 or 3 may not be made after the end of the relevant period. Except in a case within sub-paragraph (3) the relevant period is the period of 4 years from the act or omission to which the penalty relates. Where an assessment under paragraph 2 or 3 is made in a case involving loss of plastic packaging tax— the relevant period is the period of 20 years from the act or omission to which the penalty relates. In sub-paragraph (3) the reference to a loss brought about by a person includes a reference to a loss brought about by another person acting on behalf of that person.
The Commissioners (having agreed that payment of relevant VAT sums may be deferred until 31 March 2021) may— The period for which payment is further deferred under sub-paragraph (1) may be different for different cases. Arrangements made under sub-paragraph (1) may, among other things— Nothing in sub-paragraphs (1) to (3) affects the powers otherwise available to the Commissioners in connection with the collection and management of relevant VAT sums or other sums.
The amount of the penalty under this Schedule is 5% of so much of the relevant VAT sum as has not been paid immediately before the day on which the amount due by way of penalty is assessed under paragraph 6(1).
If an amount is assessed and notified to a person under this Schedule then unless, or except to the extent that, the assessment is withdrawn or reduced, the amount is recoverable as if it were VAT due from the person. In sub-paragraph (1), “VAT” has the same meaning as in VATA 1994 (see section 96 of that Act).
Section 98 of VATA 1994 (service of notices) applies to notices and notifications to be given under this Schedule as it applies to notices and notifications to be given under that Act. For the purposes of this Schedule, a notice or notification given to a personal representative, trustee in bankruptcy, trustee in sequestration, receiver, liquidator or other representative of a person is to be treated as having been given to that person. In sub-paragraph (2), “trustee in sequestration” has the same meaning as in VATA 1994 (see section 96 of that Act).
An assessment of a penalty under this Schedule in respect of any amount must be made on or before the later of date A and (where it applies) date B. Date A is the last day of the period of 2 years beginning with the date specified in or for the purposes of column 3 of the relevant table in paragraph 1 (that is to say, the last date on which payment may be made without incurring a penalty). Date B is the last day of the period of 12 months beginning with— In sub-paragraph (3)(a) “appeal period” means the period during which—
Section 209 (amount of a section 208 penalty) is amended as follows. In the heading, after “208” insert “or 208A”. In subsection (1), for “50%” substitute “30%”. After subsection (1) insert— In subsection (3)— After subsection (3) insert—
Section 213 (alteration of assessment of a section 208 penalty) is amended as follows. In the heading, after “208” insert “or 208A”. In subsection (1), after “211(2)” insert “or 211A(1)”.
A person (P) who— becomes liable to be registered on a given day if subsection (2) applies in relation to P on that day (subject to subsection (5)).
produces finished plastic packaging components, or
on whose behalf finished plastic packaging components are imported,
This subsection applies—
on any day, where there are reasonable grounds for believing that the amount of finished plastic packaging components that will be produced by, or imported on behalf of, P within the period of 30 days beginning with that day will equal or exceed 10 metric tonnes, or
on the first day of any calendar month, where the amount of finished plastic packaging components produced by, or imported on behalf of, P over the 12 months ending with the day before that day equals or exceeds 10 metric tonnes.
Finished plastic packaging components to which section 52(1) or (3) applies are not to be taken into account for the purposes of subsection (2).
In the application of subsection (2)(b) to the first day of a month falling within the year beginning with 1 April 2022, that paragraph has effect as if for “over the 12 months” there were substituted “ during the period beginning with 1 April 2022 and ”.
Subsection (1) does not apply to any person for the time being listed in section 13B(1) of the Customs and Excise Duties (General Reliefs) Act 1979 (members of visiting forces etc).
The Commissioners may by regulations make provision about the administration of the disapplication of subsection (1) by subsection (5), including provision making it subject to conditions or requirements set out in the regulations.
A person who becomes liable to be registered under section 55 must notify the Commissioners of the liability before the end of the notification period.
The “notification period” is the period of 30 days beginning with the day on which the liability arises.
Where the Commissioners are satisfied that a person is liable to be registered (whether or not the person has notified liability under subsection (1)), the Commissioners must register the person with effect from the day on which the liability arises.
Where an unincorporated body (other than a partnership) is registered in the name of the body concerned, no account is to be taken of any change in its members in determining how any provision of or under this Part applies in relation to the body.
The Commissioners may by regulations make provision—
about the form and manner in which a notification under this section is to be given;
about the information to be contained in or provided with a notification under this section;
for the Commissioners to require further information from a person in connection with that person's registration;
requiring notifications and other communications with the Commissioners in connection with registration to be made electronically.
A registration under section 56 may be cancelled only in accordance with this section.
The Commissioners may cancel a person's registration if—
the person requests the cancellation, and
the person satisfies the Commissioners that the person does not, on the day of the request, meet the liability condition.
The Commissioners may cancel a person's registration if they are satisfied that the person does not meet the liability condition and has not met the liability condition for a period of at least 12 months.
The Commissioners may cancel a person's registration if they are satisfied that the person did not meet the liability condition on the day on which the person was registered, and has not at any subsequent time met the liability condition.
A cancellation under subsection (2) is to be made with effect from—
the day on which the request is made, or
such later day as may be agreed between the Commissioners and that person.
A cancellation under subsection (3) is to be made with effect from—
the day on which the person ceased to meet the liability condition, or
such later day as may be agreed between the Commissioners and that person.
A cancellation under subsection (4) is to be made with effect from the day on which the person was registered.
But the Commissioners must not cancel a person's registration under subsection (2) or (3) if—
there are outstanding amounts of plastic packaging tax, or amounts recoverable as plastic packaging tax, due from that person, or
there are one or more outstanding returns for the purposes of plastic packaging tax due from that person.
The Commissioners may decline to cancel a person's registration on any day if they reasonably believe that the person will become liable to be registered under section 55 during the period of 12 months beginning with that day.
For the purposes of this section, a person meets the liability condition on a particular day if—
the condition in section 55(2)(a) is met in relation to that person on that day,
the day is the first day of a month and the condition in section 55(2)(b) is met in relation to that person on that day, or
the day is in the same month as a day on which the condition in section 55(2)(b) was met in relation to that person.
The Commissioners may by regulations make provision about the correction of entries in the register.
Regulations under subsection (1) may make provision for requiring persons who are, or are liable to be, registered to notify the Commissioners of changes in circumstances which are relevant to the register.
Schedule 9 makes provision about notices that may in certain circumstances—
impose secondary liability on a person in respect of an amount of plastic packaging tax which another person has failed to pay, or
make one person jointly and severally liable with another person in respect of some or all of the other person's liability to pay plastic packaging tax in respect of a period of time in the future.
The Commissioners may by regulations make provision for and about the measurement of weight for the purposes of plastic packaging tax.
The regulations may (among other things) include provision about—
how weight is to be measured;
the time in relation to which weight is to be measured;
how weight is to be evidenced;
agreements between the Commissioners and particular persons about how weight is to be measured or evidenced, including provision for the Commissioners to disregard the terms of an agreement in circumstances set out in the regulations;
the Commissioners making their own assessment or best judgement of weight in relation to plastic packaging components and substituting that assessment or judgement for the assessment or judgement of any other person;
the Commissioners inspecting or weighing plastic packaging components or samples;
the assessment of weight by the Commissioners being based on estimates or assumptions.
The Commissioners may by regulations make provision about the payment, collection and recovery of amounts for the purposes of plastic packaging tax.
Regulations under subsection (1) may (among other things)—
make provision for determining the accounting periods by reference to which payments are to be made;
require persons who are registered or who are liable to be registered under section 55 (“relevant persons”) to keep accounts for the purposes of plastic packaging tax in a specified form and manner;
require relevant persons to make returns for the purposes of plastic packaging tax;
make provision about the times at which payments of plastic packaging tax are to be made and methods of payment;
require the amounts payable by reference to accounting periods to be calculated by or under the regulations;
make provision about the payment, collection and recovery of amounts payable by a person as a result of a secondary liability and assessment notice or a joint and several liability notice;
make provision for the correction of errors made in accounting for plastic packaging tax.
Provision may be made by or under regulations under subsection (2)(c) about—
the form and manner of making returns;
the information to be included in returns;
declarations about the truth of information in returns;
the periods by reference to which returns are to be made;
timing.
Schedule 10 makes provision about recovery and overpayments.
Schedule 11 makes provision about reviews and appeals.
The Commissioners may by regulations require persons—
to keep, for purposes connected with plastic packaging tax, records of specified matters, and
to preserve records for a specified period.
A duty under regulations under subsection (1) to preserve records may be discharged by preserving them, or the information contained in them, in any form and by any means, subject to any conditions or exceptions specified in the regulations.
The period specified in regulations under subsection (1) may not exceed —
in a case where the records relate to an accounting period, 6 years beginning with the day after the end of the accounting period to which the records relate, or
in any other case, 6 years beginning with the day on which the records are created.
The Commissioners may direct a person who is, or is liable to be, registered under this Part or to whom a secondary liability and assessment notice or a joint and several liability notice has been given—
to keep such records as are specified in the direction;
to preserve those records for a specified period.
The Commissioners may not give a direction under subsection (4) unless they have reasonable grounds for believing that the records specified in the direction might assist in identifying chargeable plastic packaging components in respect of which plastic packaging tax might not be paid.
A direction under subsection (4)—
must be in writing,
must specify the consequences under section 80 of a failure to comply with a requirement imposed under that section, and
may be revoked or replaced by a further direction.
The period specified in a direction under subsection (4)(b) may not exceed 6 years.
Schedule 12 makes provision about the collection and sharing of information and about evidence.
The Commissioners may by regulations prescribe circumstances in which a person who is liable to be registered under section 55 may be required to give security (or further security) of such amount and in such manner as the Commissioners may determine for the payment of any plastic packaging tax due, or which may become due, from the person.
The Commissioners may only exercise the power in subsection (1) if they consider it is necessary for the protection of the revenue.
The Commissioners may by regulations make provision in relation to a business which is carried on by a partnership or by another unincorporated body specifying by what person anything required by or under this Part to be done by a person is to be done.
Anything required to be given to a person (“P”) by or under a provision of this Part may be given by sending it to P or to P's representative by post, addressed to that person's last known address.
Anything given to P's representative is to be treated as having been given to P.
In this section, “representative”, in relation to P, means—
any of P's personal representatives;
any person holding office as receiver in relation to P or any of P's property;
P's trustee in bankruptcy or liquidator;
a trustee (or interim trustee) in a sequestration of P's estate under the Bankruptcy (Scotland) Act 2016;
any other person acting in a representative capacity in relation to P (including under section 69).
A person who— must, when invoicing that customer in respect of that component, include with that invoice a statement of the amount of plastic packaging tax arising in relation to that component (a “PPT statement”).
supplies to a business customer a plastic packaging component in respect of which a charge to plastic packaging tax has arisen, and
is liable to pay plastic packaging tax on that component,
The reference in subsection (1)(a) to supplying a plastic packaging component to a business customer includes supplying that component by virtue of supplying other goods, such as goods that are contained within the component.
A PPT statement must contain such particulars as the Commissioners may prescribe in regulations.
In this section, “business customer” means a person who is supplied with a plastic packaging component in the course of their carrying out a business (within the meaning of section 43(2)).
The Commissioners may by regulations make provision requiring that every non-resident taxpayer appoint a person resident in the United Kingdom to act as the taxpayer's tax representative for the purposes of plastic packaging tax.
Regulations under subsection (1) may, in particular, make provision—
requiring notification to be given to the Commissioners where a person becomes a non-resident taxpayer;
requiring notification to be given to the Commissioners where a person appoints a person as a tax representative;
for the appointment of a person as a tax representative to take effect only where the person appointed is approved by the Commissioners;
authorising the Commissioners to give a direction requiring the replacement of a tax representative;
about the circumstances in which a person ceases to be a tax representative and about the withdrawal by the Commissioners of their approval of a tax representative;
enabling a tax representative to act on behalf of the person for whom they are the tax representative through an agent of the representative;
for the purposes of any provision made by virtue of paragraphs (a) to (f) regulating the procedure to be followed in any case and imposing requirements as to the information and other particulars to be provided to the Commissioners;
as to the time at which things done under or for the purposes of the regulations are to take effect.
The tax representative of a non-resident taxpayer—
may act on the non-resident taxpayer's behalf for the purposes of any provision relating to plastic packaging tax, and
is under a duty, except to such extent as the Commissioners may by regulations otherwise provide, to secure the non-resident taxpayer's compliance with, and discharge of, the obligations and liabilities to which the non-resident taxpayer is subject by virtue of any provision relating to plastic packaging tax (including obligations and liabilities arising or incurred before the representative was appointed).
A person who is or has been the tax representative of a non-resident taxpayer is personally liable— as if the obligations and liabilities to which subsection (3)(b) applies were imposed jointly and severally on the tax representative and the non-resident taxpayer.
in respect of any failure to secure compliance with, or the discharge of, any obligation or liability to which subsection (3)(b) applies while they are or were the non-resident taxpayer's tax representative, and
in respect of anything done in the course of, or for purposes connected with, acting on the non-resident taxpayer's behalf,
A tax representative is not liable by virtue of this section to be registered for the purposes of plastic packaging tax; but the Commissioners may by regulations—
require the registration of the names of tax representatives against the names of the non-resident taxpayers of whom they are the representatives;
make provision for the deletion of the names of persons who cease to be tax representatives.
A tax representative is not, by virtue of this section, guilty of an offence except in so far as—
they consented to, or connived in, the commission of the offence by the non-resident taxpayer;
the commission of the offence by the non-resident taxpayer is attributable to any neglect on the part of the tax representative;
the offence consists in a contravention by the tax representative of an obligation which, by virtue of this section, is imposed both on the tax representative and on the non-resident taxpayer.
In this section “non-resident taxpayer” means a person who—
is, or is liable to be, registered under this Part, and
is not resident in the United Kingdom.
For the purposes of subsection (7), a person is resident in the United Kingdom at any time if, at that time—
that person has an established place of business in the United Kingdom;
that person has a usual place of residence in the United Kingdom;
that person is a firm or unincorporated body which (without being resident in the United Kingdom by virtue of paragraph (a)) has amongst its partners or members at least one individual with a usual place of residence in the United Kingdom.
Subsection (2) applies where—
a person (S) supplies a chargeable plastic packaging component that S has produced, or that was imported on behalf of S, to another person (P) under a contract,
a payment falls to be made under the contract for the supply of the component, and
after the making of the contract—
plastic packaging tax becomes chargeable on the component, or
there is a change in the plastic packaging tax chargeable on the component.
Unless the contract otherwise provides, S may adjust the amount of the payment mentioned in subsection (1)(b) so as to reflect the tax chargeable on the component.
Subsection (4) applies where a person (S) supplies another person (P) with a chargeable plastic packaging component under a contract.
Unless the contract provides otherwise, S may adjust the contract so that if P subsequently converts the component into a different chargeable plastic packaging component, P must provide S with information about the conversion.
For the purposes of subsections (1) and (3), it is immaterial—
when the contract was made;
whether the contract also provides for other matters.
Subsection (2) applies where a body corporate (P) is liable to pay an amount of plastic packaging tax (or an amount recoverable on the basis that it is an amount of plastic packaging tax)— at the time P is treated as a member of a group.
in respect of plastic packaging components produced by, or imported on behalf of, P, or
by virtue of a secondary liability and assessment notice or a joint and several liability notice,
For the purposes of this Part , and save as otherwise provided by or under this Part,, the representative member of the group is to be treated as if —
it were liable to pay the amount instead of P,
it had assumed all other obligations in relation to plastic packaging tax that, apart from this subsection, would have been obligations of P, and
it had assumed all entitlements in relation to plastic packaging tax that—
apart from this subsection, would have been entitlements of P, and
arose after P and the representative member began to be treated as members of the same group.
All the bodies corporate who are treated as members of a group when any amount becomes due from the representative member, together with any bodies corporate who become treated as members of the group while any such amount remains unpaid, are jointly and severally liable for the amount due from the representative member.
For the purposes of this Part—
a body corporate is to be treated as a member of a group at any time in relation to which it falls to be treated as such in accordance with provision made by Schedule 13, and
the representative member of a group at any time is the body corporate which falls to treated as such in accordance with that Schedule.
The Commissioners may by regulations make such further provision as they consider appropriate about—
a body corporate that is treated as a member of a group being treated as if it had or had not assumed an entitlement given by or under this Part (ignoring the regulations) to another body corporate that is treated as a member of the group;
the performance or discharge by a body corporate that is treated as a member of a group of an obligation or liability imposed by or under this Part (ignoring the regulations) on another body corporate that is treated as a member of the group.
Schedule 13 makes provision about applications by two or more bodies corporate to be treated as members of the same group for the purposes of this Part.
This section, and section 73, apply for the purpose of preventing the maintenance or creation of any artificial separation of business activities carried on by two or more persons from resulting in an avoidance of plastic packaging tax.
The Commissioners may make a direction under this section naming any person only if they are satisfied that—
the person is producing or importing, or has produced or imported, chargeable plastic packaging components,
the activities in the course of which the person produces or imports, or produced or imported, chargeable plastic packaging components form only part of certain activities, the other activities being carried on concurrently or previously (or both) by one or more other persons,
the activities carried on by those persons have been, or are, artificially separated, having regard to whether the persons carrying on those activities are connected within the meaning of section 1122 of CTA 2010 (“connected” persons), and
if all the activities of those persons were taken into account, a single person carrying on that business would at the time of the direction be liable to be registered by virtue of section 55.
Subsection (4) applies where, after making a direction under this section that specifies a description of business, it appears to the Commissioners that a person (P) who was not named in that direction is producing or importing, or has produced or imported, chargeable plastic packaging components in the course of activities which should be regarded as part of the activities of that business.
The Commissioners may make a supplementary direction referring to the earlier direction and the description of business specified in it and adding P's name to those of the persons named in the earlier direction with effect from—
the date on which P began to produce or import those components, or
if later, the date with effect from which the single taxable person referred to in the earlier direction became liable to be registered under this Part.
If, immediately before a direction (including a supplementary direction) is made under this section, any person named in the direction is registered under this Part, the person ceases to be liable to be so registered with effect from the later of—
the date with effect from which the single taxable person concerned became liable to be registered, and
the date of the direction.
A direction under this section must be given to each person named in it.
For the purposes of this Part, where a direction is made under section 72—
the persons named in the direction are to be treated as a single taxable person carrying on the activities of a business described in the direction;
the taxable person is liable to be registered under this Part with effect from—
the date of the direction, or
such later date as may be specified in the direction;
the taxable person is to be registrable in such name as—
the persons named in the direction may jointly nominate in writing to the Commissioners not later than 14 days after the date of the direction, or
if no such name is nominated, in such name as may be specified in the direction;
any production or import of chargeable plastic packaging components by or on behalf of one of the constituent members in the course of the activities of the taxable person is to be treated as production by or import on behalf of that person;
each of the constituent members is to be jointly and severally liable for any plastic packaging tax due from the taxable person;
any failure by the taxable person to comply with any requirement imposed by or under this Part is to be treated as a failure by each of the constituent members severally;
subject to the preceding paragraphs, for the purposes of this Part the constituent members are to be treated as a partnership carrying on the business of the taxable person and any question as to the scope of the activities of that business at any time are to be determined accordingly.
Subsection (3) applies where—
it appears to the Commissioners that any person (P) who is one of the constituent members should no longer be regarded as such for the purposes of subsection (1)(e) and (f), and
the Commissioners give notice to that effect.
P is not liable by virtue of subsection (1)(e) and (f) for anything done after the date specified in that notice (and accordingly on that date P is to be treated as having ceased to be a member of the partnership referred to in subsection (1)(g)).
In subsections (1) and (2), the “constituent members” means, in relation to a business specified in a direction under section 72, the persons named in the direction, together with any person named in a supplementary direction relating to that business (together being the persons who are to be treated as the taxable person).
The Commissioners may by regulations make provision for the purposes of plastic packaging tax in relation to cases where a person carries on the business of—
an individual who has died or become incapacitated;
a person (whether or not an individual) who is subject to an insolvency procedure (as defined in the regulations).
Provision may be made by regulations under this section—
requiring the person who is carrying on the business (P) to inform the Commissioners that P is carrying on the business and of the event that has led to P carrying it on;
allowing P to be treated for a limited time as if P and the person who has died, become incapacitated or is subject to an insolvency procedure were the same person;
about such other matters as the Commissioners think fit for securing continuity in the application of this Part in cases to which the regulations apply.
The Commissioners may by regulations make provision for the purposes of plastic packaging tax in relation to cases where any business carried on by a person (P) is transferred to another person (T) as a going concern.
Regulations under this section may (among other things) make—
provision requiring P to inform the Commissioners of the transfer;
provision for P's liabilities and duties under this Part to become, to such extent as may be provided by the regulations, liabilities and duties of T;
provision for any right of either P or T to a tax credit or repayment of plastic packaging tax to be satisfied by allowing the credit or making the repayment to the other;
provision as to the preservation of any records or accounts relating to the business which, by virtue of any regulations under section 63, are required to be preserved for any period after the transfer;
such other provision as the Commissioners think fit for securing continuity in the application of this Part in cases to which the regulations apply.
Regulations under this section may provide that no such provision as is mentioned in subsection (2)(b) or (c) has effect in relation to any transferor or transferee unless an application for the purpose has been made by them under the regulations.
Subsections (2) and (3) apply if—
a chargeable plastic packaging component is imported into the United Kingdom from the Isle of Man, and
a charge corresponding to plastic packaging tax (the “corresponding charge”) has arisen in relation to the component under the law of the Isle of Man.
If the corresponding charge has arisen at a rate equal to, or greater than, the United Kingdom rate, the component is to be treated as not being imported into the United Kingdom for the purposes of plastic packaging tax.
If the corresponding charge has arisen at a rate lower than the United Kingdom rate, the amount of plastic packaging tax charged under this Part in relation to the component is to be reduced by an amount equal to the corresponding charge.
“The United Kingdom rate” in relation to a chargeable plastic packaging component is the rate of plastic packaging tax that would (apart from this section) be chargeable in relation to the component under this Part.
For the purposes of provision made by or under sections 51 and 53, a chargeable plastic packaging component is to be treated as not being exported from the United Kingdom if it is exported from the United Kingdom to the Isle of Man.
For the purposes of determining, in accordance with section 50, when a chargeable plastic packaging component is imported into the United Kingdom from the Isle of Man, section 8 of the Isle of Man Act 1979 (removal of goods from the Isle of Man) is to have effect as if, in subsection (2), at the end of paragraph (c), there were inserted; or
A person commits an offence if the person is knowingly concerned in, or in the taking of steps with a view to, the fraudulent evasion (by that person or another person) of plastic packaging tax.
The reference in subsection (1) to the evasion of plastic packaging tax includes reference to obtaining, in circumstances where there is no entitlement to it—
a tax credit;
a repayment of plastic packaging tax.
A person guilty of an offence under this section is liable—
on summary conviction in England and Wales—
to imprisonment for a term not exceeding the general limit in a magistrates’ court,
to a fine not exceeding £20,000 or (if greater) three times the total of the amounts of plastic packaging tax that were, or were intended to be, evaded, or
to both;
on summary conviction in Scotland—
to imprisonment for a term not exceeding 12 months,
to a fine not exceeding the statutory maximum or (if greater) three times the total of the amounts of plastic packaging tax that were, or were intended to be, evaded, or
to both;
on summary conviction in Northern Ireland—
to imprisonment for a term not exceeding 6 months,
to a fine not exceeding the statutory maximum or (if greater) three times the total of the amounts of plastic packaging tax that were, or were intended to be, evaded, or
to both;
on conviction on indictment—
to imprisonment for a term not exceeding 14 years,
to a fine, or
to both.
For the purposes of subsection (3), the amounts of plastic packing tax that were, or were intended to be, evaded are to be taken as including— which was, or was intended to be, obtained in circumstances when there was no entitlement to it.
the amount of any tax credit, and
the amount of any repayment of plastic packaging tax,
In determining for the purposes of subsection (3) the amounts of plastic packaging tax that were, or were intended to be, evaded, no account is to be taken of the extent to which any liability to tax of a person would be, or would have been, reduced by the amount of any tax credit or repayment of plastic packaging tax to which the person was, or would have been, entitled.
In relation to an offence committed before 2 May 2022, the reference in subsection (3)(a)(i) to the general limit in a magistrates’ court is to be read as a reference to 6 months.
A person commits an offence if, for purposes connected with plastic packaging tax, the person—
produces or provides, causes to be produced or provided, or otherwise makes use of any document which is false in a material particular, and
does so intending to deceive any person or to secure that a machine will respond to the document as if it were a true document.
A person commits an offence if, in providing any information under any provision made by or under this Part the person—
makes a statement which the person knows to be false in a material particular, or
recklessly makes a statement which is false in a material particular.
A person guilty of an offence under this section is liable (subject to subsection (4))—
on summary conviction in England and Wales—
to imprisonment for a term not exceeding 6 months,
to a fine not exceeding £20,000, or
to both;
on summary conviction in Scotland—
to imprisonment for a term not exceeding 6 months,
to a fine not exceeding the statutory maximum, or
to both;
on summary conviction in Northern Ireland—
to imprisonment for a term not exceeding 6 months,
to a fine not exceeding the statutory maximum, or
to both;
on conviction on indictment—
to imprisonment for a term not exceeding 14 years,
to a fine, or
to both.
In the case of an offence under this section where— the maximum amount of the fine on summary conviction is the greater of £20,000 or the statutory maximum (as the case may be), and the amount equal to three times the sum of the amounts (if any) by which the return underestimates any person's liability to plastic packaging tax.
the document referred to in subsection (1) is a return required under any provision made by or under this Part of this Act, or
the information referred to in subsection (2) is contained in or otherwise relevant to such a return,
In subsection (4) the reference to the amount by which a person's liability to plastic packaging tax is understated is the sum of—
the amount (if any) by which the person's gross liability was understated, and
the amount (if any) by which any entitlements of the person to tax credits and repayments of plastic packaging tax were overstated.
In subsection (5) “gross liability” means liability to plastic packaging tax before any deduction is made in respect of—
any entitlement to any tax credits, or
any repayment of plastic packaging tax.
A person commits an offence if the person's conduct during any particular period must have involved the person committing one or more offences under section 77 or 78.
For the purposes of any proceedings for an offence under this section it is immaterial whether the particulars of the offence or offences that must have been committed are known.
A person guilty of an offence under this section is liable (subject to subsection (4))—
on summary conviction in England and Wales—
to imprisonment for a term not exceeding 6 months,
to a fine not exceeding £20,000, or
to both;
on summary conviction in Scotland—
to imprisonment for a term not exceeding 6 months,
to a fine not exceeding the statutory maximum, or
to both;
on summary conviction in Northern Ireland—
to imprisonment for a term not exceeding 6 months,
to a fine not exceeding the statutory maximum, or
to both;
on conviction on indictment—
to imprisonment for a term not exceeding 14 years,
to a fine, or
to both.
In the case of any offence under this section, the maximum amount of the fine on summary conviction is the greater of £20,000 or the statutory maximum (as the case may be), and the amount equal to three times the sum of the amounts of plastic packaging tax which are shown to be amounts that were or were intended to be evaded by the conduct in question.
For the purposes of subsection (4), the amounts of plastic packaging tax that were, or were intended to be, evaded are to be taken as including— which was, or was intended to be, obtained in circumstances when there was no entitlement to it.
the amount of any tax credit, and
the amount of any repayment of plastic packaging tax,
In determining for the purposes of subsection (4) the amounts of plastic packaging tax that were, or were intended to be, evaded, no account is to be taken of the extent to which any liability to tax of a person would be, or would have been, reduced by the amount of any tax credit or repayment of plastic packaging tax to which the person was, or would have been, entitled.
Where a person (P) fails to comply with a relevant requirement, P is liable to—
a fixed penalty of £500, and
a daily penalty of £40 for each day, after the first, on which the person continues to fail to comply.
Where P is liable to a daily penalty in respect of a continuing failure to comply with a relevant requirement P is not liable to a further fixed penalty in respect of that failure.
P is not liable to a penalty under this section in respect of an act or omission in respect of which P—
has been convicted of an offence, or
is liable to a penalty other than under this section.
P is not liable to a penalty under this section if P satisfies the Commissioners or (on appeal) the appeal tribunal within the meaning of Schedule 11 that there is a reasonable excuse for the failure.
For the purposes of subsection (4)—
an insufficiency of funds is not a reasonable excuse, unless it is attributable to events outside P's control,
where P relies on any other person to do anything, that is not a reasonable excuse unless P took reasonable care to avoid the failure, and
where P had a reasonable excuse for the failure but the excuse has ceased, P is to be treated as having continued to have the excuse if the failure is remedied without unreasonable delay after the excuse ceased.
Where P is liable to a penalty under this section—
the Commissioners or, on appeal, the appeal tribunal within the meaning of Schedule 11, may reduce the penalty to such amount (including nil) as they think proper;
on an appeal relating to any penalty reduced by the Commissioners, the appeal tribunal may cancel the whole or any part of the Commissioners' reduction.
In this section, “relevant requirement” means an obligation or a requirement imposed by or under—
section 58 (variation and correction of the register);
section 61 (payment, collection and recovery);
section 63 (records);
section 65 (security for tax);
section 68 (statements);
section 69 (tax representatives);
section 74 (death, incapacity or insolvency of person carrying on a business);
section 75 (transfer of business as a going concern);
Schedule 9 (secondary liability and assessment notices and joint and several liability notices);
Schedule 13 (groups of companies).
The Treasury may by regulations amend subsection (1) so as to substitute for the amounts for the time being specified there amounts taking account of inflation.
The Treasury may by regulations amend subsection (7) so as to add or remove a requirement relating to plastic packaging tax as a “relevant requirement”.
Schedule 14 makes provision about the assessment of penalties under this section.
Sections 145 to 155 of CEMA 1979 (proceedings for offences, mitigation of penalties and certain other matters) apply in relation to offences under this Part as they apply in relation to offences under the customs and excise Acts.
Schedule 15 makes minor and consequential amendments to other legislation.
In this Part—
“the register” means the register under subsection (1) and references to registration are to registration in it.
In FA 2003, Part 4 (stamp duty land tax) is amended as follows.
Part 9 of Schedule 9ZA to VATA 1994 (value added tax on acquisitions in Northern Ireland from Member States: registration in respect of distance sales) is amended as follows.
This Schedule provides for a person who fails to make a return to be liable to penalty points and penalties. This Part of this Schedule— Part 2 of this Schedule provides for a person to be liable to penalty points, and penalties, in respect of each group of returns. Part 3 of this Schedule makes supplementary provision.
Sub-paragraphs (2) to (4) apply for the interpretation of this Schedule where a person— If the group of returns mentioned in sub-paragraph (1)(b) is group 1A, 2A, 3A, 4A, 4B or 4C, the person makes a single return belonging to that group for all of the relevant businesses and so there is a single group of returns of that description for those businesses. If the group of returns mentioned in sub-paragraph (1)(b) is group 1B, 2B or 3B, there is a single group of returns of that description for all of the relevant businesses notwithstanding that the person makes separate returns belonging to that group for each of the relevant businesses. Where there is a single group of returns of a particular description for two or more relevant businesses (see sub-paragraphs (2) and (3))— For the purposes of this Schedule, references to a person who carries on more than one business include references to a person who is treated as carrying on more than one business by section 43(1) of VATA 1994 (groups of companies). If a body corporate carries on a business in several divisions and the registration of the body corporate under VATA 1994 is in the names of those divisions, such that the body corporate makes separate returns belonging to group 4A, 4B or 4C for each of those divisions— Accordingly, it follows from sub-paragraph (6) that where, in paragraph 5—
After section 75 insert—.
Paragraph 48 (liability to be registered) is amended as follows. In sub-paragraph (1), in the words after paragraph (b), for “on any day” to the end substitute — This sub-paragraph applies where — The person becomes liable to be registered on any day in a given year if— Omit sub-paragraphs (6) and (7). For the purposes of this paragraph, a supply of goods or services is a “European supply” if it is— For the purposes of sub-paragraph (8)(a), a person is not a taxable person if they are not liable or entitled to register for VAT in accordance with the law of the place where the person to whom the services are supplied is established, has their permanent address or usually resides. In sub-paragraph (8), “the VAT Directive” means Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax.
Schedule 9A (increased rates for non-resident transactions).
Paragraph 49 (ceasing to be liable to be registered) is amended as follows. In sub-paragraph (1)— A person who has become liable to be registered under this Part of this Schedule by virtue of paragraph 48(1)(ii) ceases to be so liable by virtue of that paragraph if at any time paragraph 48(1A) applies in relation to that person. A person who has become liable to be registered under this Part of this Schedule by virtue of paragraph 48(3) ceases to be so liable by virtue of that paragraph if at any time the Commissioners are satisfied that the person— In sub-paragraph (2) after “But” insert —. Sub-paragraphs (8) to (10) of paragraph 48 apply for the purposes of this paragraph as they apply for the purposes of that paragraph.
non-resident transaction Schedule 9A, paragraph 2
After Schedule 9 insert—
Regulations under this Part—
may make different provision for different purposes;
may include incidental, consequential, supplementary, transitional or transitory provision.
Regulations under this Part may make provision by reference to things specified in a notice that is—
published by the Commissioners in accordance with the regulations, and
not withdrawn by a further notice.
Any power of the Commissioners to make regulations under this Part may instead be exercised by the Treasury.
Regulations under this Part are to be made by statutory instrument.
A statutory instrument containing regulations under the following provisions is subject to the made affirmative procedure—
section 48(5) (meaning of “packaging component”);
section 49(8) (meaning of “plastic” and “recycled plastic” , “recycled plastic” and “attributed recycled plastic”);
section 52 (exempt plastic packaging components);
section 50(3) (timing of importation);
section 80(8) or (9) (penalties for contravening relevant requirements).
Any other statutory instrument containing regulations under this Part is subject to annulment in pursuance of a resolution of the House of Commons (“the negative procedure”).
But subsection (6) does not apply to a statutory instrument containing only regulations under section 85 (commencement of this Part).
Where a statutory instrument under this Act is subject to “the made affirmative procedure”—
it must be laid before the House of Commons after being made, and
it ceases to have effect at the end of the period of 28 sitting days beginning with the day on which the instrument is made, unless within that period the instrument is approved by a resolution of the House of Commons.
Where regulations cease to have effect as a result of subsection (8), that does not—
affect anything previously done under the regulations, or
prevent the making of new regulations.
Any provision that may be included in regulations in a statutory instrument under this Act subject to the negative procedure may be included in regulations in a statutory instrument subject to the made affirmative procedure.
In this section, “sitting day” means a day on which the House of Commons is sitting (and a day is only a day on which the House of Commons is sitting if the House begins to sit on that day).
This Part—
comes into force on such day as the Treasury may by regulations appoint, and
has effect in relation to packaging components that are produced in the United Kingdom or imported into the United Kingdom on or after 1 April 2022.
Regulations under this section may appoint different days for different purposes.
Sections 8 and 8D(7) of IHTA 1984 (indexation of rate bands, residential enhancement and taper threshold) do not have effect by virtue of any difference between—
the consumer prices index for the month of September in 2020, 2021, 2022, 2023 , 2024, 2025 , 2026, 2027 , 2028 or 2029, and
that index for the previous September.
The Stamp Duty Land Tax (Temporary Relief) Act 2020 is amended as follows.
In section 1 (reduced rates of SDLT on residential property for a temporary period)—
in subsection (1)(b) (which specifies the end of that temporary period), for “31 March 2021” substitute “ 30 June 2021 ”,
in subsections (1) and (6)(a), for “temporary” substitute “ initial temporary ”, and
in the heading, for “a temporary” substitute “ an initial temporary ”.
After that section insert—
Schedule 16 makes provision for increased rates of stamp duty land tax in respect of non-resident transactions.
In Schedule 4A to FA 2003 (higher rate of SDLT for certain transactions), after paragraph 5F insert—
In that Schedule, after paragraph 5K insert—
Schedule 17 contains minor and consequential amendments of Part 4 of FA 2003 (stamp duty land tax).
The amendments made by this section and Schedule 17 have effect in relation to any land transaction of which the effective date is 3 March 2021 or a later date.
In section 150 of FA 2013 (providers of social housing)—
after subsection (3) insert—, and
in the heading, at the end insert “ etc ”.
After that section insert—
The amendments made by this section have effect in relation to—
the chargeable period beginning with 1 April 2021 and all subsequent chargeable periods;
the chargeable period beginning with 1 April 2020 but only in relation to a person and a single-dwelling interest falling within case A or case B.
Case A is that the first day in the chargeable period on which the person is within the charge with respect to the single-dwelling interest is on or after 3 March 2021.
Case B is that the person was within the charge with respect to the single-dwelling interest on one or more days in the chargeable period before 3 March 2021 but has not delivered an annual tax on enveloped dwellings return for the period with respect to the interest by 3 March 2021.
For the purposes of subsections (3) to (5), “single-dwelling interest”, “within the charge” and “annual tax on enveloped dwellings return” have the same meanings that they have for the purposes of Part 3 of FA 2013.
A claim for repayment of annual tax on enveloped dwellings paid, before 3 March 2021, by or on behalf of a chargeable person with respect to a single-dwelling interest may be made by the person for each day (if any) in the chargeable period beginning with 1 April 2020 on which—
the person was within the charge with respect to the interest and not treated as being outside the charge by virtue of section 132(2) of FA 2013 (effect of reliefs under sections 133 to 150), and
a qualifying housing co-operative was entitled to the interest.
For the purposes of a claim under this section with respect to a single-dwelling interest—
a company is a qualifying housing co-operative on any day if on that day it would have been a qualifying housing co-operative for the purposes of section 150(3A) of FA 2013 (if sections 150(3A) and 150A of FA 2013 (inserted by section 90) had been in force on that day);
each day on which the conditions in subsection (1)(a) and (b) are met with respect to the interest is a “relievable day”;
references to “the relevant return” are to the annual tax on enveloped dwellings return for the chargeable period beginning with 1 April 2020 with respect to the interest.
Where a claim is made under this section with respect to a single-dwelling interest, HMRC must repay the total of the daily amounts for all the relievable days.
A claim under this section must be made by amending the relevant return under paragraph 3 of Schedule 33 to FA 2013 on the same basis as it would have been amended if, on each of the relievable days, the chargeable person had been entitled to claim the type of relief numbered 8 in the table in section 159A(9) of FA 2013.
Terms used in this section and in Part 3 of FA 2013 have the same meaning in this section as in that Part.
In Articles 2 and 5 of the Value Added Tax (Reduced Rate) (Hospitality and Tourism) (Coronavirus) Order 2020 (S.I. 2020/728), for “31st March 2021” substitute “ 30th September 2021 ”.
The modifications made by Articles 3 and 4 of the Value Added Tax (Reduced Rate) (Hospitality and Tourism) (Coronavirus) Order 2020 (S.I. 2020/728) (“the Reduced Rate Order”) continue to have effect (despite Article 2 of that Order) during the relevant period.
During that period, in relation to a supply that is of a description within Groups 14 to 16 in Part 2 of Schedule 7A to VATA 1994, the reference in section 29A(1) of that Act to “5 per cent” is to be read as a reference to “12.5 per cent” (and any reference elsewhere in that Act to a rate of 5% in the context of a supply of a description specified in Schedule 7A is to be read accordingly).
The modifications made by Article 6 of the Reduced Rate Order also continue to have effect (despite Article 5 of that Order) during the relevant period, but subject to the modifications in subsection (4).
The modifications to Article 6 of the Reduced Rate Order mentioned in subsection (3) are—
as if in paragraph (a), for “4.5” there were substituted “ 8.5 ”;
as if in paragraph (b), for “0” there were substituted “ 5.5 ”;
as if in paragraph (c), for “1” there were substituted “ 4 ”.
The relevant period means the period—
beginning with the day after the day on which the modifications made by Articles 3, 4 and 6 of the Reduced Rate Order would otherwise cease to apply by virtue of the ending of the periods mentioned in Articles 2 and 5 of that Order (whether in accordance with section 92 or any regulations made under section 26B or 29A(3) of VATA 1994), and
ending on 31 March 2022.
The Treasury may by regulations—
repeal subsections (1) to (5);
amend subsection (5) so as to substitute for the period for the time being mentioned there such other period as they consider appropriate.
A statutory instrument containing regulations under subsection (6) that would increase the rate of value added tax to be charged on a supply must be laid before the House of Commons after being made and, unless approved by that House before the end of the period of 28 days beginning with the date on which the instrument is made, ceases to have effect at the end of that period.
Any other statutory instrument containing regulations under subsection (6) is subject to annulment in pursuance of a resolution of the House of Commons.
The fact that a statutory instrument ceases to have effect as a result of subsection (7) does not affect—
anything previously done under the instrument, or
the making of a new instrument.
In calculating the period of 28 days mentioned in subsection (7), no account is to be taken of any time—
during which Parliament is dissolved or prorogued, or
during which the House of Commons is adjourned for more than four days.
In paragraph 6 of Schedule 11 to VATA 1994 (duty of taxable person to keep records), omit sub-paragraphs (7) to (9).
In Schedule 18, which makes provision in relation to the Protocol on Ireland/Northern Ireland in the EU withdrawal agreement about value added tax and distance selling—
Part 1 makes provision amending—
the criteria for registration under Part 9 of Schedule 9ZA to VATA 1994 (value added tax on acquisitions in Northern Ireland from member States: registration in respect of distance sales), and
the application of the place of supply rules in Part 5 of Schedule 9ZB to VATA 1994 (goods removed to or from Northern Ireland: rules relating to particular supplies);
Part 2 makes provision implementing the European Union schemes known as the One Stop Shop (“OSS”) and the Import One Stop Shop (“IOSS”);
Part 3 makes provision amending Schedule 9ZC to VATA 1994 (online sales by overseas persons and low value importations: modifications relating to the Northern Ireland Protocol) to omit Part 2 of that Schedule (modifications of the Value Added Tax (Imported Goods) Relief Order 1984);
Part 4 makes provision about supplies of goods by persons established outside the United Kingdom that are facilitated by online marketplaces.
The Treasury may by regulations made by statutory instrument make such provision as they consider appropriate in consequence of this section or Schedule 18, including provision amending, repealing or revoking any provision of an Act whenever passed or made (including this Act and any Act amended by it).
The Treasury may by regulations made by statutory instrument make such transitional, transitory, saving, supplementary or incidental provision as they consider appropriate in connection with the coming into force of this section or Schedule 18.
Regulations under subsections (2) and (3) may (among other things)—
confer on a person specified in the regulations a discretion to do anything under, or for the purposes of, the regulations;
make provision by reference to things specified in a notice published in accordance with the regulations;
make different provision for different purposes or areas.
A statutory instrument that— is subject to annulment in pursuance of a resolution of the House of Commons.
contains (whether alone or with other provision) regulations under subsection (2), and
is not subject to any requirement under section 96 that the instrument be laid before, and approved by a resolution of, the House of Commons after being made,
This subsection and the following provisions come into force on the day on which this Act is passed—
subsection (1) and Schedule 18 so far as making provision for anything to be done by regulations, directions or public notice, and
subsections (2) to (5), (7) and (8).
Subsection (1) and Schedule 18 come into force for all remaining purposes on such day as the Treasury may by regulations made by statutory instrument appoint.
Regulations under subsection (7) may appoint different days for different purposes.
The Treasury may by regulations made by statutory instrument make such provision relating to value added tax as they consider appropriate in relation to the Protocol on Ireland/Northern Ireland in the EU withdrawal agreement—
for the purposes of, or in connection with, giving effect to Council Directive (EU) 2017/2455 of 5 December 2017 amending Directive 2006/112/EC and Directive 2009/132/EC as regards certain value added tax obligations for supplies of services and distance sales of goods, or
otherwise for the purposes of dealing with matters arising out of, or related to, that Directive.
No regulations may be made under this section on or after 1 April 2024.
Regulations under this section—
may make any such provision as might be made by an Act of Parliament, including provision amending or repealing any provision of this Act, but
may not make provision taking effect from a date earlier than that of the making of the regulations.
A statutory instrument containing (whether alone or with other provision) regulations under this section that amend or repeal any Act of Parliament must be laid before the House of Commons after being made.
Regulations contained in a statutory instrument laid before the House of Commons under subsection (4) cease to have effect at the end of the period of 28 days beginning with the day on which the instrument is made unless, during that period, the instrument is approved by a resolution of the House of Commons.
In calculating the period of 28 days, no account is to be taken of any whole days that fall within a period during which—
Parliament is dissolved or prorogued, or
the House of Commons is adjourned for more than four days.
If regulations cease to have effect as a result of subsection (5), that does not—
affect the validity of anything previously done under or by virtue of the instrument, or
prevent the making of new regulations.
A statutory instrument containing (whether alone or with other provision) regulations under this section to which subsection (4) does not apply is subject to annulment in pursuance of a resolution of the House of Commons.
This section comes into force on the day on which this Act is passed.
In Schedule 6 to VATA 1994 (valuation: special cases), after paragraph 11 insert—
The amendment made by subsection (1) has effect in relation to supplies made on or after IP completion day.
In section 42 of TCTA 2018 (EU law relating to VAT), after subsection (4) insert—
That section has effect, and is to be deemed always to have had effect, with the amendment made by subsection (1).
Schedule 19 makes provision about—
powers of the Commissioners for Her Majesty's Revenue and Customs to agree that payment of sums to meet liabilities described in article 5 of the Finance Act 2008, Section 135 (Coronavirus) Order 2020 (S.I. 2020/934) (“the Coronavirus Order 2020”) may be further deferred,
surcharges arising on such sums, and
a penalty payable in connection with non-payment of such sums.
Subsection (1) and Schedule 19 are to be treated as having come into force on 9 March 2021.
The Treasury may by regulations repeal paragraphs 4 to 11 of Schedule 19 (penalty) where they consider it appropriate to do so by reason of circumstances arising as a result of the emergency specified in article 2 of the Coronavirus Order 2020.
Regulations made under subsection (3)—
must make provision for the repayment of amounts paid in respect of penalties under Schedule 19, and
may make other transitional provision.
Regulations under this section are to be made by statutory instrument.
A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.
In section 33(3) of the Value Added Tax Act 1994 (refunds of VAT in certain cases), after paragraph (i) insert—.
The amendment made by this section has effect in relation to supplies made, and acquisitions and importations taking place, on or after 1 April 2021.
Schedule 20 contains amendments of the Customs (Northern Ireland) (EU Exit) Regulations 2020 (S.I. 2020/1605) in connection with the removal of certain steel products to Northern Ireland.
Schedule 21 makes—
provision amending HODA 1979 to restrict the use of rebated diesel and biofuels to specified categories of machines, and
related provision.
Schedule 21 comes into force on 1 April 2022.
The Treasury may by regulations make such consequential, supplementary, incidental, transitional, transitory or saving provision as the Treasury consider appropriate in connection with the coming into force of Schedule 21.
Regulations under subsection (3) may—
amend, repeal or revoke provision made by or under an Act passed before this Act;
make different provision for different purposes or areas.
Regulations under subsection (3) are to be made by statutory instrument.
A statutory instrument containing regulations under subsection (3) is subject to annulment in pursuance of a resolution of the House of Commons.
In Schedule 11 to FA 2020 (amendments of HODA 1979 relating to private pleasure craft), in paragraph 21 (power to make consequential amendments), after “enactment” insert “ , including Schedule 21 to FA 2021, ”.
1 Cigarettes An amount equal to the higher of— 16.5% of the retail price plus £244.78 per thousand cigarettes, or £320.90 per thousand cigarettes. 2 Cigars £305.32 per kilogram 3 Hand-rolling tobacco £271.40 per kilogram 4 Other smoking tobacco and chewing tobacco £134.24 per kilogram 5 Tobacco for heating £251.60 per kilogram
In consequence of the provision made by subsection (1), the Tobacco Products Duty (Alteration of Rates) Order 2020 (S.I. 2020/1256) is revoked.
Schedule 1 to VERA 1994 (annual rates of vehicle excise duty) is amended as follows.
In paragraph 1 (general rate)—
in sub-paragraph (2) (vehicle not covered elsewhere in Schedule with engine cylinder capacity exceeding 1,549cc), for “£270” substitute “ £280 ”, and
in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc), for “£165” substitute “ £170 ”.
CO2 emissions figure Rate (1) (2) (3) (4) Exceeding Not exceeding Reduced rate Standard rate g/km g/km £ £ 100 110 10 20 110 120 20 30 120 130 120 130 130 140 145 155 140 150 160 170 150 165 200 210 165 175 240 250 175 185 265 275 185 200 305 315 200 225 330 340 225 255 575 585 255 590 600
In the sentence immediately following the Table in that paragraph, for paragraphs (a) and (b) substitute—
CO2 emissions figure Rate (1) (2) (3) (4) Exceeding Not exceeding Reduced rate Standard rate g/km g/km £ £ 0 50 0 10 50 75 15 25 75 90 105 115 90 100 130 140 100 110 150 160 110 130 170 180 130 150 210 220 150 170 545 555 170 190 885 895 190 225 1335 1345 225 255 1900 1910 255 2235 2245
CO2 emissions figure Rate (1) (2) (3) Exceeding Not exceeding Rate g/km g/km £ 0 50 25 50 75 115 75 90 140 90 100 160 100 110 180 110 130 220 130 150 555 150 170 895 170 190 1345 190 225 1910 225 255 2245 255 2245
In paragraph 1GD(1) (rates for any other licence for light passenger vehicles registered on or after 1 April 2017)—
in paragraph (a) (reduced rate), for “£140” substitute “ £145 ”, and
in paragraph (b) (standard rate), for “£150” substitute “ £155 ”.
In paragraph 1GE(2) (rates for light passenger vehicles registered on or after 1 April 2017 with a price exceeding £40,000)—
in paragraph (a), for “£465” substitute “ £480 ”, and
in paragraph (b), for “£475” substitute “ £490 ”.
In paragraph 1J(a) (rates for light goods vehicles that are not pre-2007 or post-2008 lower emission vans), for “£265” substitute “ £275 ”.
In paragraph 2(1) (rates for motorcycles)—
in paragraph (a) (engine cylinder capacity not exceeding 150cc), for “£20” substitute “ £21 ”,
in paragraph (b) (motorbicycles with engine cylinder capacity exceeding 150cc but not exceeding 400cc), for “£44” substitute “ £45 ”,
in paragraph (c) (motorbicycles with engine cylinder capacity exceeding 400cc but not exceeding 600cc), for “£67” substitute “ £69 ”, and
in paragraph (d) (other cases), for “£93” substitute “ £96 ”.
The amendments made by this section have effect in relation to licences taken out on or after 1 April 2021.
Section 19 of VERA 1994 (rebates of vehicle excise duty) is amended as follows.
In subsection (3A) for “subsection (3B)” substitute “ subsections (3B) and (3C) ”.
After subsection (3B) insert—
The amendments made by this section have effect in relation to cases where a rebate condition (within the meaning of section 19 of VERA 1994) is satisfied on or after 1 April 2021.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In section 30(4A) of FA 1994 (air passenger duty: long haul rates)—
in paragraph (a), for “£82” substitute “ £84 ”, and
in paragraph (b), for “£180” substitute “ £185 ”.
The amendments made by this section have effect in relation to the carriage of passengers beginning on or after 1 April 2022.
Part of gross gaming yield Rate The first £2,548,500 15% The next £1,757,000 20% The next £3,077,000 30% The next £6,494,500 40% The remainder 50%
The amendment made by this section has effect in relation to accounting periods beginning on or after 1 April 2021.
Paragraph 42 of Schedule 6 to FA 2000 (climate change levy: amount payable by way of levy) is amended as follows.
Taxable commodity supplied Rate at which levy payable if supply is not a reduced-rate supply Electricity £0.00775 per kilowatt hour Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility £0.00568 per kilowatt hour Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state £0.02175 per kilogram Any other taxable commodity £0.04449 per kilogram
In sub-paragraph (1)(c) (reduced-rate supplies in respect of any taxable commodity other than electricity or petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state), for “17” substitute “ 14 ”.
In consequence of the amendment made by subsection (3), in the definition of “r” in the Notes to paragraph 2 of Schedule 1 to the Climate Change Levy (General) Regulations 2001, for “0.83” substitute “ 0.86 ”.
The amendments made by this section have effect in relation to supplies treated as taking place on or after 1 April 2022 but before 1 April 2023.
Paragraph 42 of Schedule 6 to FA 2000 (climate change levy: amount payable by way of levy) is amended as follows.
Taxable commodity supplied Rate at which levy payable if supply is not a reduced-rate supply Electricity £0.00775 per kilowatt hour Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility £0.00672 per kilowatt hour Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state £0.02175 per kilogram Any other taxable commodity £0.05258 per kilogram
In sub-paragraph (1)(c) (reduced-rate supplies in respect of any taxable commodity other than electricity or petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state), as amended by section 109(3), for “14” substitute “ 12 ”.
In consequence of the amendment made by subsection (3), in the definition of “r” in the Notes to paragraph 2 of Schedule 1 to the Climate Change Levy (General) Regulations 2001, as amended by section 109(4), for “0.86” substitute “ 0.88 ”.
The amendments made by this section have effect in relation to supplies treated as taking place on or after 1 April 2023.
Section 42 of FA 1996 (amount of landfill tax) is amended as follows.
In subsection (1)(a) (standard rate), for “£94.15” substitute “ £96.70 ”.
In subsection (2) (reduced rate for certain disposals), in the words after paragraph (b)—
for “£94.15” substitute “ £96.70 ”, and
for “£3” substitute “ £3.10 ”.
The amendments made by this section have effect in relation to disposals made (or treated as made) on or after 1 April 2021.
In FA 2019, omit Part 3 (carbon emissions tax).
In FA 2020, omit section 95 and Schedule 12 (carbon emissions tax).
The Treasury may by regulations designate an area in Great Britain as a special area for the purposes of—
Part 2 of CAA 2001 (plant and machinery allowances),
Part 2A of CAA 2001 (structures and buildings allowances), and
where the area is in England, Part 4 of FA 2003 (stamp duty land tax).
An area may only be designated by regulations under this section if, at the time the regulations are made—
the area is situated in a freeport or an investment zone, or
the Treasury consider that the area is being used, or is likely to be used, for purposes connected with activities carried on, or likely to be carried on, in a freeport or an investment zone.
An area designated under this section is to be known as a “special tax site”.
Regulations under this section must specify the date on which the designation takes effect.
For the purposes of this section any reference to a freeport or an investment zone is to an area which is identified as such in a document published by, or with the consent of, the Treasury for the purposes of this section (and not withdrawn).
Any regulations made by the Treasury in reliance on a resolution under section 1 of the Provisional Collection of Taxes Act 1968 and in force immediately before the passing of this Act which make a designation described in subsections (1) and (2) have effect as if validly made under this section.
Schedule 22 makes provision about capital allowances for expenditure incurred in connection with freeport tax sites.
In that Schedule —
Part 1 provides for a first-year allowance under Part 2 of CAA 2001 (plant and machinery allowances),
Part 2 provides for a different rate of allowance under Part 2A of CAA 2001 (structures and buildings allowances), and
Part 3 contains related amendments.
Schedule 23 provides for relief under Part 4 of FA 2003 in the case of transactions relating to land in a freeport tax site.
Schedule 24 contains provision for imposing penalties on persons in respect of failures to make certain returns.
Schedule 25 contains provision for imposing penalties on persons who, by failing to make certain returns, deliberately withhold information which would enable or assist HMRC to assess that person's liability to tax.
Schedules 24 and 25 come into force on such day as the Treasury may by regulations appoint.
Different days may be appointed for different purposes.
The Treasury may by regulations make transitional, transitory or saving provision in connection with the coming into force of any provision in Schedules 24 and 25.
The power to make regulations under subsection (5) includes power to make different provision for different purposes.
Regulations under this section are to be made by statutory instrument.
Schedule 26 contains provision for imposing penalties on persons in respect of failures to make certain payments on time.
Schedule 26 comes into force on such day as the Treasury may by regulations appoint.
Different days may be appointed for different purposes.
The Treasury may by regulations make transitional, transitory or saving provision in connection with the coming into force of any provision in Schedule 26.
The power to make regulations under subsection (4) includes power to make different provision for different purposes.
Regulations under this section are to be made by statutory instrument.
Schedule 27 contains amendments that are consequential on Schedules 24 to 26.
Schedule 27 comes into force on such day as the Treasury may by regulations appoint.
Different days may be appointed for different purposes.
The Treasury may by regulations make transitional, transitory or saving provision in connection with the coming into force of any provision in Schedule 27.
The Treasury may by regulations make provision that is consequential on Schedules 24 to 26.
Regulations under subsection (5) may—
include provision amending, repealing or revoking any provision of an Act or subordinate legislation whenever passed or made (including this Act and any Act amended by it);
make supplementary, incidental, transitional, transitory or saving provision.
In subsection (6) “subordinate legislation” has the same meaning as in the Interpretation Act 1978.
The power to make regulations under subsection (4) or (5) includes power to make different provision for different purposes.
Regulations under this section are to be made by statutory instrument.
A statutory instrument containing (whether alone or with other provision) regulations under subsection (5) that amend or repeal provision made by an Act is subject to annulment in pursuance of a resolution of the House of Commons.
Schedule 28 makes provision in relation to penalties to which a person may be liable after a follower notice has been given under Chapter 2 of Part 4 of FA 2014.
Schedule 29 contains amendments of FA 2009 relating to late payment interest, repayment interest and VAT.
Schedule 29 comes into force on such day as the Treasury may by regulations appoint.
Different days may be appointed for different purposes.
The Treasury may by regulations make transitional, transitory or saving provision in connection with the coming into force of any provision in Schedule 29.
The Treasury may by regulations make provision that is consequential on Schedule 29.
Regulations under subsection (5) may—
include provision amending, repealing or revoking any provision of an Act or subordinate legislation whenever passed or made (including this Act and any Act amended by it);
make supplementary, incidental, transitional, transitory or saving provision.
In subsection (6) “subordinate legislation” has the same meaning as in the Interpretation Act 1978.
The power to make regulations under subsection (4) or (5) includes power to make different provision for different purposes.
Regulations under this section are to be made by statutory instrument.
A statutory instrument containing (whether alone or with other provision) regulations under subsection (5) that amend or repeal provision made by an Act is subject to annulment in pursuance of a resolution of the House of Commons.
Part 5 of FA 2014 (promoters of tax avoidance schemes) is amended in accordance with Schedule 30.
Part 1 of that Schedule contains—
amendments about “stop notices”, which prohibit the promotion of arrangements of a description specified in the notice, and
amendments about the application of Schedule 36 to FA 2008 (information and inspection powers) in connection with Part 5 of FA 2014.
Part 2 of that Schedule contains amendments in connection with providing for persons (whether or not they carry on a business) to be treated as carrying on business as a promoter as a result of their connection to other persons.
Part 3 of that Schedule contains amendments about powers to give a person a conduct notice or monitoring notice as a result of the transfer of a business, a part of a business, or property of a business to that person.
Part 4 of that Schedule contains miscellaneous amendments of Part 5 of FA 2014.
The amendments made by that Schedule, other than the amendments made by paragraphs 20, 21 and 27 of that Schedule, have effect—
from the day on which this Act is passed, and
for the purposes of determining whether a person meets a threshold condition (within the meaning of Part 5 of FA 2014), or a condition in subsections (11) to (13) of Section 237A of FA 2014, in a period of three years ending on or after that day.
Schedule 31 makes provision about the disclosure of tax avoidance schemes.
Schedule 16 to F(No.2)A 2017 (penalties for enablers of defeated tax avoidance) is amended as follows.
In paragraph 21 (special provision about assessment for multi-user schemes)—
in sub-paragraph (1)(c), for “, the required percentage of relevant defeats has not been reached” substitute “ (other than a tribunal or court defeat), neither condition 1 nor condition 2 has been met ”;
in sub-paragraph (2), for “the required percentage of relevant defeats is reached” substitute “ condition 1 or condition 2 is met ”;
after sub-paragraph (2) insert—;
in sub-paragraph (3)—
after “required” insert “ number or ”;
for the words from “defeats have” to the end of the sub-paragraph substitute—
In paragraph 22 (time limit for assessment)—
in sub-paragraph (3)—
in paragraph (a), for “the required percentage of defeats was reached” substitute “ condition 1 or condition 2 was met ”;
for paragraph (b) substitute—;
in paragraph (ii) for “that required percentage was reached” substitute “ the first of condition 1 or condition 2 was met ”;
in sub-paragraph (4), in the words after paragraph (b), for “the required percentage of relevant defeats is reached” substitute “ condition 1 or condition 2 is met ”.
In paragraph 40 (information and inspection powers: application of Schedule 36 to FA 2008)—
for sub-paragraph (1) substitute—;
in sub-paragraph (2), in the definition of “relevant person”, at the end of the definition insert “ (or will become or may become so liable if T incurs a defeat) ”;
after sub-paragraph (2) insert—
In paragraph 41 (general modifications of Schedule 36 to FA 2008 as applied)—
in the words before sub-paragraph (a), for “the purpose” substitute “ a purpose ”;
in sub-paragraph (d), for the words from “the investigation” to the end of the sub-paragraph substitute— .
In paragraph 42 (specific modifications of Schedule 36 to FA 2008 as applied)—
in sub-paragraph (1)—
for “the purpose” substitute “ a purpose ”;
for “(2)” substitute “ (1A) ”;
after sub-paragraph (1) insert—;
after sub-paragraph (2) insert—
In paragraph 43 (exclusion of paragraphs 50 and 51 of Schedule 36 to FA 2008), for “the purpose” substitute “ a purpose ”.
In paragraph 48 (restrictions on power to publish information about persons who have incurred a penalty)—
in sub-paragraph (1), omit paragraph (c);
in sub-paragraph (2), for “(1)(c) and (d)” substitute “ (1)(d) ”;
omit sub-paragraph (3).
The amendments made by subsections (2) and (3) do not have effect in relation to a person who is liable to a penalty under paragraph 1 of Schedule 16 to F(No.2)A 2017 solely by reason of actions of the person carried out before the day on which this Act is passed.
Where the amendments made by subsections (2) and (3) have effect, in determining whether condition 1 or 2 is met in relation to particular tax arrangements, account may be taken of defeats incurred in the case of other related arrangements before the day on which this Act is passed.
For the purposes of subsection (10), “condition 1”, “condition 2”, “defeat” and “related arrangements” have the same meanings as in paragraph 21 of Schedule 16 to F(No.2)A 2017 (as amended by subsection (2)).
The amendments made by subsections (4) to (7) have effect for a purpose mentioned in paragraph (a) or (b) of paragraph 40(1) of Schedule 16 to F(No.2)A 2017 (as substituted by subsection (4)(a)) in relation to tax arrangements whenever entered into (whether before or after the passing of this Act).
The amendments made by subsection (8) do not have effect in relation to a person who incurs a penalty under paragraph 1 of Schedule 16 to F(No.2)A 2017 whose liability to the penalty arose solely by reason of actions of the person carried out before the day on which this Act is passed.
Schedule 32 makes provision about the operation of the general anti-abuse rule in relation to partnerships.
The amendments made by the Schedule have effect in relation to tax arrangements (within the meaning of Part 5 of FA 2013) entered into at any time (whether before or after the passing of this Act).
Schedule 33 contains provision requiring licensing authorities, before considering an application for an authorisation to which that Schedule applies—
in the case of a first-time application, to give the applicant information relating to tax compliance, and
in the case of any other application, to obtain from HMRC confirmation that the applicant has given HMRC information relating to tax compliance.
Schedule 33 has effect in relation to applications made on or after 4 April 2022.
Schedule 36 to FA 2008 (information and inspection powers) is amended as follows.
After paragraph 4 insert—
In paragraph 6 (notices)—
in sub-paragraph (1), after “2,” insert “ 4A, ”;
in sub-paragraph (4), after “4” insert “ , 4A ”.
After paragraph 61 insert—
As soon as reasonably practicable after the end of each financial year, the Commissioners for Her Majesty's Revenue and Customs must provide the Treasury with—
information about the number of financial institution notices given during that financial year, and
such other information (if any) relating to financial institution notices as the Treasury may reasonably require.
Information received under subsection (5) must be included in a report laid before the House of Commons by the Treasury.
The report mentioned in subsection (6) must be laid not later than 31 January following the end of the financial year to which the information relates.
For the purposes of subsections (5) to (7)—
In Schedule 22 to FA 2000 (tonnage tax), in paragraph 57(6)(a) (exclusion of relief or set-off against tax liability), for “Chapter 3A of Part 8 of CTA 2010 (marginal relief for companies with small ring fence profits)” substitute “ Part 3A or Chapter 3A of Part 8 of the Corporation Tax Act 2010 (marginal relief for companies with small profits) ”.
An amount assessed and notified to a person under paragraph 2 or 3 is recoverable on the basis that it is an amount of plastic packaging tax due from that person. But sub-paragraph (1) does not apply if, or to the extent that, the assessment has been withdrawn or reduced.
If a person fails to make a return on or before the due date, the person is liable to one penalty point for the group of returns to which the return belongs (but see sub-paragraphs (2) to (8)). A person is not liable to more than one penalty point per month for each of the following groups of returns, even if in that month there is more than one failure to make a return in that group on or before the due date— A person is not liable to more than one penalty point per month in respect of a failure to make a return in a digital reporting sub-group of returns, even if in that month there is more than one failure to make a return in that digital reporting sub-group on or before the due date. For the purposes of sub-paragraph (3), digital reporting sub-groups (1) and (2) of group 1B or 2B are to be treated as a single digital reporting sub-group. If— sub-paragraph (3) is to be read in relation to that digital reporting sub-group as if references to a month were references to a calendar quarter. “Calendar quarter” means a period of 3 months beginning with 1 January, 1 April, 1 July or 1 October. If there is more than one failure in a month or calendar quarter (as the case may be) to make a return in a group of returns, or in a digital reporting sub-group of returns, on or before the due date (see sub-paragraphs (2), (3) and (5)), the one penalty point for the month or calendar quarter to which the person is liable by virtue of this paragraph is for all of those failures. A person is not liable to a penalty point for a group of returns if the person already has the maximum number of penalty points for that group of returns. The maximum number of penalty points for a group of returns is— See paragraphs 19 to 21 for further rules about liability to a penalty point.
Each of a person’s penalty points for a group of returns expires at the beginning of the first day on which both condition A and condition B are met. Condition A is that the person has made each return in the group on or before its due date for the relevant length of time (or longer). The relevant length of time is x months beginning with the first day of the month after the month in which the most recent failure to make a return in the group on or before its due date occurred. In sub-paragraph (3) “x months” means— Condition B is met on any day if the person has made all the returns in the group whose due date fell in the period of 24 months ending with the previous day (whether or not those returns were made on or before their due date). Where each of a person’s penalty points for a group of returns expires under this paragraph, HMRC must notify the person.
If a person fails to make a return on or before the due date and condition A or condition B is met, the person is liable to a penalty (but see sub-paragraphs (5) and (9)). Condition A is that— Condition B is that the failure occurs on a day on which the person has the maximum number of penalty points for the group of returns to which the return belongs. The amount of a penalty under this paragraph is £200. A person is not liable to more than one penalty per month in respect of a failure to make a return in a digital reporting sub-group of returns, even if in that month there is more than one failure to make a return in that digital reporting sub-group on or before the due date. For the purposes of sub-paragraph (5), digital reporting sub-groups (1) and (2) of group 1B or 2B are to be treated as a single digital reporting sub-group. If— sub-paragraph (5) is to be read in relation to that digital reporting sub-group as if references to a month were references to a calendar quarter. “Calendar quarter” means a period of 3 months beginning with 1 January, 1 April, 1 July or 1 October. If there is more than one failure in a month or calendar quarter (as the case may be) to make a return in a digital reporting sub-group of returns on or before the due date (see sub-paragraphs (5) and (7)), the one penalty for the month or calendar quarter to which the person is liable by virtue of this paragraph is for all of those failures. See paragraphs 19 to 21 for further rules about liability to a penalty.
The Commissioners for HMRC may by regulations— Regulations under sub-paragraph (1)(a) may also amend column 3 of the table in paragraph 10. Regulations under this paragraph— A statutory instrument containing regulations under this paragraph may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons.
In section 11A of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (application of certain provisions of the Income Tax Acts in relation to Class 2 contributions under section 11(2)), after subsection (1)(ea) insert—.
After section 211 (assessment of a section 208 penalty) insert—
In section 214 (appeal against a section 208 penalty), after subsection (8) insert—
The fact that an act or omission giving rise to a penalty has ceased before an assessment is made under paragraph 2 or 3 does not affect the power of the Commissioners to make such an assessment.
Sub-paragraph (2) applies where— The assessments under paragraph 2 or 3 and Schedule 10 may be combined and notified to the person as one assessment. A notice of a combined assessment under sub-paragraph (2) must separately identify the penalty being assessed.
The amendments made by subsections (2) to (4) have effect—
for the purpose of checking the tax position of a taxpayer as regards periods or tax liabilities whenever arising, or
for the purpose of collecting a tax debt of a taxpayer whenever arising.
Schedule 36 to FA 2008 (information and inspection powers) is amended as follows.
In paragraph 1(1) (taxpayer notices), at the end insert “ or for the purpose of collecting a tax debt of the taxpayer ”.
In paragraph 2(1) (third party notices), at the end insert “ or for the purpose of collecting a tax debt of the taxpayer ”.
In paragraph 5(2) (persons whose identities are not known), after “tax position of” insert “ or for the purpose of collecting a tax debt of ”.
In paragraph 5A (persons whose identity can be ascertained)—
in sub-paragraph (2), at the end insert “ or for the purpose of collecting a tax debt of the taxpayer ”, and
in sub-paragraph (7), after “tax position of”, in both places, insert “ , or for the purpose of collecting a tax debt of, ”.
After paragraph 63 insert—
After paragraph 63A (inserted by subsection (6)) insert—
The amendments made by this section have effect for the purpose of collecting a tax debt of a person whenever arising.
Schedule 34 makes miscellaneous amendments of Schedule 36 to FA 2008 (information and inspection powers).
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Treasury may by regulations make such provision as they consider appropriate for the purpose of giving effect to—
the OECD Model Rules for Reporting by Platform Operators with respect to Sellers in the Sharing and Gig Economy, published on 3 July 2020 (“the Model Rules”);
any other international agreement or arrangements to which the United Kingdom is a party that make provision corresponding, or similar, to that made by the Model Rules.
References in subsection (1) to the Model Rules, agreements or arrangements include those Model Rules, agreements or arrangements as modified or supplemented from time to time.
Regulations under this section may (among other things)—
make provision about penalties for failure to comply with the regulations;
provide that a reference in the regulations to, or to a provision of, the Model Rules or an agreement or arrangement to which subsection (1) refers is to be construed as a reference to the Model Rules, agreement or arrangement, or provision, as amended from time to time;
make consequential, supplementary, incidental, transitional or saving provision (including amending, repealing or revoking an enactment whenever passed or made).
Regulations under this section are to be made by statutory instrument.
A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.
In Schedule 3 to CEMA 1979 (provisions relating to forfeiture), after paragraph 17 insert—
The amendments made by this section have effect in relation to a thing seized as liable to forfeiture on or after the day on which this Act is passed.
In Chapter 2 of Part 1 of FA 1994 (customs and excise: appeals and penalties), after section 16 insert—
In section 16A(1) of FA 1994 (inserted by subsection (1) of this section), the reference to HMRC notifying P of an approval decision includes a reference to HMRC having notified P of such a decision before the coming into force of this section.
This section comes into force on such day as the Commissioners may by regulations made by statutory instrument appoint.
In section 70O of CAA 2001 (funding leases: the lease payments test)—
in subsection (4)(b), for “1% above LIBOR” substitute “ the incremental borrowing rate ”;
for subsection (5) substitute—
In section 228MB of CAA 2001 (plant or machinery leases: present value of asset)—
in subsection (3), for “1% above LIBOR” substitute “ the incremental borrowing rate ”;
for subsection (4) substitute—
In section 437C of CTA 2010 (plant or machinery lease: present value of lease)—
in subsection (6), for “1% above LIBOR” substitute “ the incremental borrowing rate ”;
for subsection (7) substitute—
Subsection (1) has effect in relation to leases the inception of which (within the meaning of section 70YI of CAA 2001) is on or after 1 January 2022.
Subsection (2) has effect in relation to leases entered into on or after 1 January 2022.
Subsection (3) has effect in cases where the relevant time for the purposes of section 437C of CTA 2010 is on or after 1 January 2022.
The Treasury may by regulations make provision about the tax consequences of things done in anticipation of or in connection with—
the reform or discontinuance of LIBOR, or
the reform or discontinuance of another reference rate.
Regulations under this section may, for example, make provision—
changing the tax treatment of transactions (including by disregarding a transaction or treating a transaction as taking place at a different time or to a different extent);
changing the tax treatment of amounts (including by disregarding an amount or treating an amount as larger or smaller than it actually is).
Regulations under this section may include retrospective provision.
Where regulations under this section do so—
they must include provision conferring power on a person to make an election for no provision of the regulations to have retrospective effect in the person's case;
they may include provision conferring power on a person to make such other election limiting the retrospective effect of the regulations in the person's case as is specified in the regulations.
Regulations that include provision for an election mentioned in subsection (4)—
must include provision about how the election is to be made, and
may include provision for a time limit within which the election is to be made.
Regulations under this section may—
apply an enactment (with or without modifications) or disapply an enactment, or
amend, repeal or revoke an enactment.
Regulations under this section may—
make different provision for different cases or purposes, and
include incidental, consequential, supplementary or transitional provision.
Regulations under this section are to be made by statutory instrument.
No regulations may be made under this section unless a draft of the statutory instrument containing them has been laid before and approved by a resolution of the House of Commons.
In this section—
“tax” includes stamp duty.
The power conferred by this section is not exercisable after 31 December 2023, except for the purpose of revoking regulations made under it on or before that date.
In section 133N of CTA 2009 (powers to amend provisions relating to banking companies), after subsection (3) insert—
Chapter 2 of Part 7A of CTA 2010 (banking companies: key definitions) is amended as follows.
For the italic heading before section 269BE (power to make consequential changes) substitute “ Powers to amend ”.
In section 269BE—
for the heading substitute “ Powers to amend ”;
after subsection (1) insert—
Part 9 of Schedule 19 to FA 2011 (the bank levy: power to make consequential changes) is amended as follows.
For the Part heading substitute “ Powers to amend ”.
In paragraph 81—
after sub-paragraph (1) insert—;
in sub-paragraph (2)—
in the words before paragraph (a), for “this paragraph” substitute “ sub-paragraph (1) ”;
omit paragraph (b);
at the end insert—;
after sub-paragraph (2) insert—;
in sub-paragraph (3), for “an order under this paragraph” substitute “ only an order under sub-paragraph (1) ”;
after sub-paragraph (3) insert—
In this Act the following abbreviations are references to the following Acts— CAA 2001 Capital Allowances Act 2001 CEMA 1979 Customs and Excise Management Act 1979 CRCA 2005 Commissioners for Revenue and Customs Act 2005 CTA 2009 Corporation Tax Act 2009 CTA 2010 Corporation Tax Act 2010 CT(NI)A 2015 Corporation Tax (Northern Ireland) Act 2015 FA followed by a year Finance Act of that year F(No.2)A or F(No.3)A followed by a year Finance (No.2) Act or Finance (No.3) Act of that year HODA 1979 Hydrocarbon Oil Duties Act 1979 IHTA 1984 Inheritance Tax Act 1984 ITA 2007 Income Tax Act 2007 ITEPA 2003 Income Tax (Earnings and Pensions) Act 2003 ITTOIA 2005 Income Tax (Trading and Other Income) Act 2005 TCGA 1992 Taxation of Chargeable Gains Act 1992 TCTA 2018 Taxation (Cross-border Trade) Act 2018 TIOPA 2010 Taxation (International and Other Provisions) Act 2010 TMA 1970 Taxes Management Act 1970 TPDA 1979 Tobacco Products Duty Act 1979 VATA 1994 Value Added Tax Act 1994 VERA 1994 Vehicle Excise and Registration Act 1994
This Act may be cited as the Finance Act 2021.
Section 7
CTA 2010 is amended as follows.
In section 3 (corporation tax rates), for subsection (2) substitute—
Before Part 4 insert the following as a new Part 3A—
Chapter 3A of Part 8 of CTA 2010 (rates at which corporation tax is charged on ring fence profits) is amended as follows.
In section 279A (corporation tax rates on ring fence profits), in subsection (3), after paragraph (a) but before the “and” at the end of that paragraph insert—.
In section 279B (company with only ring fence profits)—
in subsection (1), after paragraph (a) insert—,
in subsection (2), in the definition of “R”, for “marginal” substitute “ ring fence marginal ”, and
in subsection (3), for “marginal” substitute “ ring fence marginal ”.
Section 279C (company with ring fence profits and other profits) is amended as follows. In subsection (1), after paragraph (a) insert—. For subsection (2) substitute—
After section 279D insert—
Section 279E (the lower limit and the upper limit) is amended as follows. In subsection (2)— In subsection (3)—
After section 279E insert—
Omit sections 279F to 279H (meaning of “related 51% group company” etc).
The Corporation Tax (Instalment Payments) Regulations 1998 (interpretation) are amended as follows. In regulation 2 (interpretation)— In regulations 3 and 3A (large and very large companies), for “related 51% group” (in each place) substitute “ associated ”.
A secondary liability and assessment notice must— The amount must be an amount which the Commissioners consider just and reasonable, having regard in particular to their reasons for considering that paragraph 2(2) or (3) applies to R. The Commissioners must publish guidance on the matters which they will take into account when determining whether an amount is just and reasonable. A secondary liability and assessment notice may not require R to pay an amount before the end of the period of 30 days beginning with the day on which the notice is given to R. An amount assessed and notified to R in a secondary liability and assessment notice is recoverable on the basis that it is an amount of plastic packaging tax due from R. But sub-paragraph (5) does not apply if, or to the extent that, the assessment has been withdrawn or reduced.
The Commissioners may not give a secondary liability and assessment notice to R in respect of an amount of plastic packaging tax after the end of the period of 2 years beginning with— But in a case involving a loss of tax brought about deliberately by R or P (whether acting alone or with another person) sub-paragraph (1) has effect as if the reference to 2 years were to 20 years.
A joint and several liability notice must—
state that R is jointly and severally liable with P to pay any plastic packaging tax that P is liable to pay in respect of so much of any accounting period of P as falls within the period of two years determined in accordance with paragraph 9, and
set out why the Commissioners consider that it is appropriate to give a joint and several liability notice to R under paragraph 10(1), including whether the Commissioners consider that paragraph 10(2) or (3) (or both) applies to R.
CTA 2010 is amended as follows.
The Treasury may by regulations make such provision as they consider appropriate in consequence of the provision made by this Schedule. The regulations—
In section 61(1) of FA 2004 (deductions on account of tax from contract payments), for “any other person” substitute “the sub-contractor”.
For section 72 of FA 2004 (penalties) substitute—
If HMRC think it right because of special circumstances, they may reduce a penalty under this Schedule. In sub-paragraph (1) “special circumstances” does not include— In sub-paragraph (1) the reference to reducing a penalty includes a reference to—
Where a person is liable to a penalty under this Schedule HMRC may assess the penalty. Where HMRC assess a penalty they must— A penalty under this Schedule must be paid before the end of the period of 30 days beginning with the day on which notification of the penalty is issued. An assessment of a penalty under this Schedule—
A person may appeal against a decision of HMRC that a penalty is payable by the person. A person may appeal against a decision of HMRC as to the amount of a penalty payable by the person.
The 15 day time to pay condition is met if a time to pay agreement is made (whether before or after the end of the 15 day period) as a result of proposals for paying the tax due made by the person before the end of the 15 day period. The 30 day time to pay condition is met if a time to pay agreement is made (whether before or after the end of the 30 day period) as a result of proposals for paying the tax due made by the person after the end of the 15 day period, but before the end of the 30 day period.
This paragraph applies where— If HMRC give the person notice that a penalty is payable under paragraph 8, a penalty is payable under that paragraph as if the time to pay agreement had never had effect.
A person is not liable to a penalty under this Schedule in respect of a failure in respect of which the person has been convicted of an offence.
Regulations under this Schedule are to be made by statutory instrument. A statutory instrument containing regulations under paragraph 11 (powers to amend Part 2) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons. A statutory instrument containing regulations under paragraph 16 (assessments) is subject to annulment in pursuance of a resolution of the House of Commons. Regulations under this Schedule may include transitional, transitory and saving provision.
In section 1303 of CTA 2009 (penalties, interest and VAT surcharges)—
in the heading, for “, interest and VAT surcharges” substitute “and interest”;
omit subsection (3).
In Schedule 43C to FA 2013 (penalty under section 212A: supplementary provision), in paragraph 8—
in sub-paragraph (3)(b), after “Schedule 55 to FA 2009” insert “, or sub-paragraph (3)(b) or (5)(b) of paragraph 3 or paragraph 20(4) of Schedule 25 to FA 2021”;
in sub-paragraph (5)—
omit the “or” at the end of paragraph (c);
at the end of paragraph (d) insert , or;
in sub-paragraph (6)—
in paragraph (a)—
omit the “or” at the end of sub-paragraph (ii);
at the end of sub-paragraph (iii) insert or;
in paragraph (b)—
omit the “or” at the end of sub-paragraph (ii);
at the end of sub-paragraph (iii) insert or;
in paragraph (c)—
omit the “or” at the end of sub-paragraph (ii);
at the end of sub-paragraph (iii) insert or;
in paragraph (d)—
omit the “or” at the end of sub-paragraph (ii);
at the end of sub-paragraph (iii), for “and” substitute or.
FA 2016 is amended as follows.
In section 1(2) (overview of Act)—
for “Parts 4” substitute “ Parts 3A ”, and
before paragraph (b) insert—.
An appeal under paragraph 17 is to be treated in the same way as an appeal against an assessment to the tax concerned (including by the application of any provision about bringing the appeal by notice to HMRC, about HMRC’s review of the decision or about determination of the appeal by the First-tier Tribunal or Upper Tribunal). Sub-paragraph (1) does not apply—
In section 167 (simple assessments), omit subsections (3) and (4).
Section 357BN (profits arising from the exploitation of patents etc: small claims treatment) is amended as follows. In subsection (7)— After subsection (8) insert—
On an appeal under paragraph 17(1) that is notified to the tribunal, the tribunal may affirm or cancel HMRC’s decision that a penalty is payable by the person. On an appeal under paragraph 17(2) that is notified to the tribunal, the tribunal may— If the tribunal substitutes its decision for HMRC’s decision in relation to a penalty under this Schedule, the tribunal may rely on paragraph 9— In sub-paragraph (3)(b) “flawed” means flawed when considered in the light of the principles applicable in proceedings for judicial review. In this paragraph “tribunal” means the First-tier Tribunal or Upper Tribunal (as appropriate by virtue of paragraph 18(1)).
Schedule 20 (penalties for enablers of offshore tax evasion or non-compliance) is amended as follows. In paragraph 1(4), after paragraph (d) insert— In paragraph 3(3)— In paragraph 4(3)(b), after “Schedule 55 to FA 2009” insert “or paragraph 3 of Schedule 25 to FA 2021”. In the case of a penalty under paragraph 3 of Schedule 25 to FA 2021 involving offshore activity, the potential lost revenue is the liability to tax which would have been shown in the return in question (within the meaning of that Schedule).
Section 357BNB (profits arising from the exploitation of patents etc: small claims figure election) is amended as follows. In subsection (6), for “no company is a related 51% group company of the company” substitute “ the company has no associated company ”. In subsection (7)— After subsection (9) insert—
Schedule 22 (asset-based penalty for offshore inaccuracies and failures) is amended as follows. In paragraph 2— Where a standard offshore tax penalty is imposed under paragraph 3 of Schedule 25 to FA 2021 for a failure to make a return or deliver a document listed in the table in paragraph 1 of that Schedule, the tax year to which that penalty relates is, if the tax at stake is income tax or capital gains tax, the tax year to which the return or document relates. In paragraph 5— In paragraph 19(2), for “or Part 1 of Schedule 18 to FA 2017” substitute “, Part 1 of Schedule 18 to F(No.2)A 2017 or Schedule 25 to FA 2021”.
A penalty falls within this sub-paragraph if—
In section 534 (REITs: profits), after subsection (2) insert—
In Schedule 23 (simple assessments), omit paragraph 9.
In section 535 (REITs: gains), after subsection (5) insert—
In section 543 (REITs: financing-cost ratio), after subsection (4) insert—
In section 551 (REITs: distribution to holder of excessive rights), after subsection (5) insert—
In section 564 (REITs: breach of condition as to distribution of profits), after subsection (3) insert—
In section 614 (open-ended investment companies: applicable corporation tax rate), at the end insert “ (and sections 18A and 18B (relief for companies with small profits) do not apply) ”.
In section 618 (authorised unit trusts: applicable corporation tax rate), at the end insert “ (and sections 18A and 18B (relief for companies with small profits) do not apply) ”.
For section 627 substitute—
In section 1119 (Corporation Tax Acts definitions), omit the definition of “related 51% group company”.
In Schedule 4 (index of defined expressions)—
close investment-holding company (in Part 3A or Chapter 3A of Part 8) section 18N (including as applied by section 279EA) the standard marginal relief fraction section 18B the standard small profits rate section 18A
in the entry for “augmented profits”—
in the first column, before “Chapter 3A” insert “ Part 3A or ”, and
in the second column, for “section 279G” substitute “ sections 18L and 18M (including as applied by section 279EA) ”,
in the entry for “the lower limit”—
in the first column, before “Chapter 3A” insert “ Part 3A or ”, and
in the second column, after “section” insert “ 18D or ”,
in the entry for “the marginal relief fraction”, in the first column, for “marginal” substitute “ ring fence marginal ” (and, accordingly, move the entry to the appropriate place),
omit the entry for “related 51% group company”,
ring fence profits (in Part 3A or 8) section 276 (including as applied by section 18A)
in the entry for “the upper limit”—
in the first column, before “Chapter 3A” insert “ Part 3A or ”, and
in the second column, after “section” insert “ 18D or ”.
Section 18
Section 19
Section 19
Section 29
Part 4 of FA 2004 is amended in accordance with paragraphs 2 to 23.
Section 152 (meaning of “arrangement”) is amended as follows. In subsection (2), after “cash balance benefits” insert “, collective money purchase benefits”. After subsection (3) insert— After subsection (4) insert— In subsection (5)— After that subsection insert— In subsection (8), for the words from “two or three” to the end substitute “two, three or four of the varieties specified in subsection (10)”. In subsection (9)— After that subsection insert—
In section 165 (pension rules), subsection (1) is amended as follows. In pension rule 3, after “defined benefits arrangement” insert “or a collective money purchase arrangement”. In pension rule 4, after “money purchase arrangement” insert “that is not a collective money purchase arrangement”.
In section 167 (pension death benefit rules), subsection (1) is amended as follows. In pension death benefit rule 2, after “defined benefits arrangement” insert “or a collective money purchase arrangement”. In pension death benefit rule 3, after “money purchase arrangement” insert “that is not a collective money purchase arrangement”.
Section 172C (allocation of unallocated employer contributions) is amended as follows. In subsection (2)—
Section 182 (unauthorised borrowing: money purchase arrangements) is amended as follows. In the heading, at the end insert “other than collective money purchase arrangements”. In subsection (1), after “money purchase arrangement” insert “that is not a collective money purchase arrangement”. In subsection (8), after “defined benefits” insert “or collective money purchase benefits”.
Section 183 (effect of unauthorised borrowing: money purchase arrangements) is amended as follows. In the heading, at the end insert “other than collective money purchase arrangements”.
Section 184 (unauthorised borrowing: other arrangements) is amended as follows. In subsection (1), for “arrangement which is not a money purchase arrangement” substitute “relevant arrangement”. After subsection (1) insert— In subsection (2), in the definition of APB, for “arrangements which are not money purchase arrangements” substitute “relevant arrangements”. In subsection (3), in paragraphs (a) and (b), for “not money purchase arrangements” substitute “relevant arrangements”.
Section 212 (valuation of uncrystallised rights for purposes of section 210) is amended as follows. In subsection (3)— For subsections (7) to (10) substitute—
Section 216 (benefit crystallisation events and amounts crystallised) is amended as follows. In subsection (1), in the table, in column 1—
Section 223 (non-residence: other arrangements) is amended as follows. In subsection (5)—
Section 226 (overseas scheme transfers: other arrangements) is amended as follows. In subsection (5)—
Section 227B (the alternative chargeable amount) is amended as follows. In subsection (2), for “AA” (in both places it occurs) substitute “X”. In subsection (5), in paragraph (b)(i), after “A” insert “, AA”. In subsection (5), in paragraph (b)(ii)— In subsection (5), in the closing words—
Section 227C (meaning of “money-purchase input sub-total”) is amended as follows. In subsection (1)(b)(ii), after “A” insert “, AA”.
Section 227D (pension input amounts in respect of certain hybrid arrangements) is amended as follows. In subsection (2)(a)—
Section 227F (pension input periods in which rights are first flexibly accessed) is amended as follows. In subsection (5)(b), after “input amount” insert “AA or”.
Section 227G (when pension rights are first flexibly accessed) is amended as follows. In subsection (9)(a), for “money purchase” substitute “relevant”. After subsection (9) insert—
Section 237 (hybrid arrangements) is amended as follows. In subsection (1), after “amounts A,” insert “AA,”. After subsection (3) insert— In subsection (4), for “other money purchase benefits” substitute “money purchase benefits that are not cash balance benefits or collective money purchase benefits”.
collective money purchase arrangement section 152(3A) collective money purchase benefits section 152(5A)
Schedule 28 (authorised pensions: supplementary) is amended as follows. Where, under a collective money purchase arrangement— the income so payable is to be treated for the purposes of this Part as a continuation of the scheme pension. Where, under a collective money purchase arrangement— the income so payable is to be treated for the purposes of this Part as a scheme pension. But for the purposes of sub-paragraph (2)(b), no substantial reduction occurs in the rate of a pension if—
Schedule 29 (authorised lump sums - supplementary) is amended as follows. In paragraph 1 (pension commencement lump sum)— In paragraph 2 (pension commencement lump sum), in sub-paragraph (6B), after “money purchase arrangement” insert “that is not a collective money purchase arrangement”. In paragraph 3 (pension commencement lump sum: definition of “the applicable amount” for the purposes of paragraph 2(5))— In paragraph 4A (uncrystallised funds pension lump sum), in sub-paragraph (1)(a), after “money purchase arrangement” insert “that is not a collective money purchase arrangement”. In paragraph 7 (trivial commutation lump sum), in sub-paragraph (1)—
Schedule 32 (benefit crystallisation events - supplementary) is amended as follows. Before paragraph 3 (but after the italic cross heading preceding it) insert— Omit paragraph 5 (benefit crystallisation events 1 and 5: hybrid arrangements) together with the italic cross heading preceding it. Paragraph 10 (benefit crystallisation event 3: excepted circumstances) is amended in accordance with sub-paragraphs (5) to (7). For the purposes of benefit crystallisation event 3 “excepted circumstances” exist if condition A or B is met. In sub-paragraph (1)— Condition B is that— After paragraph 14 insert— After paragraph 14ZA insert—
Schedule 36 (transitional provision and savings) is amended as follows. In paragraph 29 (lump sum rights exceeding £375,000: primary and enhanced protection), in sub-paragraph (3)— In paragraph 34 (entitlement to lump sums exceeding 25% of uncrystallised rights), in sub-paragraph (2), in the substitute paragraph 2(7AA) of Schedule 29, after “money purchase arrangement” insert “that is not a collective money purchase arrangement”.
In the Registered Pension Schemes (Transfer of Sums and Assets) Regulations 2006 (S.I. 2006/499), regulation 12 (member’s drawdown pension fund or flexi-access pension fund) is amended as follows. Section 216(1), benefit crystallisation event 5A (benefit crystallisation event on individual reaching the age of 75, having sums or assets designated as available for the payment of a drawdown pension) To determine, for the purposes of benefit crystallisation event 5A, the aggregate of amounts crystallised by benefit crystallisation event 1 by reference to the old arrangement (so that, in an appropriate case, paragraph 14ZB of Schedule 32 applies).
The amendments made by this Schedule come into force on such day as the Treasury may by regulations appoint. The Treasury may by regulations make transitional or saving provision in connection with the coming into force of any provision of this Schedule. Regulations under this paragraph are to be made by statutory instrument.
Section 30
Chapter 3 of Part 3 of FA 2004 (construction industry scheme) is amended as follows.
In section 61 of FA 2004 (deductions on account of tax from contract payments), after subsection (3) insert—
The amendments made by this Schedule have effect for the tax year 2021-22 and subsequent tax years. But the amendment made by paragraph 7 has no effect in relation to a statement made, or document furnished, before 6 April 2021.
The amendments made by paragraphs 2 and 3 have effect in relation to accounting periods beginning on or after 1 April 2017. Where a company has an accounting period beginning before 1 April 2017 and ending on or after that date (“the straddling period”)—
The Commissioners may give a secondary liability and assessment notice to R if they consider that— This sub-paragraph applies to R if— This sub-paragraph applies to R if— The Commissioners may— The Commissioners may—
R may apply to the Commissioners to— The Commissioners may by regulations make provision about— The regulations may (among other things) make provision about information that must be supplied as part of an application. The Commissioners must notify R of their decision in response to an application under sub-paragraph (1) within the period of 30 days beginning with the day on which they receive the application. If the Commissioners decide to reduce the amount which R is required to pay, the notification of their decision must specify— R may not be required to pay the new amount before the end of the period of 30 days beginning with the day on which the notification is given to R. The Commissioners must repay any amount which R has paid in excess of the new amount.
R may not be required to pay any amount by a secondary liability and assessment notice if or to the extent that P has paid the amount mentioned in paragraph 1. P may not be required to pay the amount mentioned in paragraph 1 if or to the extent that R has paid an amount referable to that amount.
This paragraph applies where a person (P) has paid an amount to the Commissioners by way of plastic packaging tax which was not tax due. The Commissioners are liable, on the making of a claim by P, to repay the amount. The Commissioners may by regulations make provision about— Except as provided by this paragraph, the Commissioners are not liable to repay any amount paid by way of plastic packaging tax by reason of the fact that it was not tax due. This paragraph is subject to paragraph 8.
Sub-paragraph (3) applies where— Sub-paragraph (3) also applies where a person is liable to pay any amount to the Commissioners in pursuance of an obligation imposed by regulations under paragraph 10(3)(b), (c) or (e). The Commissioners may— Subject to sub-paragraph (5), where— the assessments may be combined and notified to the person as one assessment. A notice of a combined assessment under sub-paragraph (4) must separately identify the amount being assessed in respect of repayments of plastic packaging tax.
An assessment under paragraph 11 or 12 may not be made more than 2 years after evidence of facts sufficient in the opinion of the Commissioners to justify making the assessment comes to their knowledge.
In this Schedule “appeal tribunal” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal.
Where, on an appeal under paragraph 1— the assessment has effect as an assessment of the amount specified in the direction and (without prejudice to any power under this Schedule to reduce the amount of interest payable on the amount of an assessment) as if it were an assessment notified to the appellant in that amount at the same time as the original assessment. On an appeal under paragraph 1, the powers of the appeal tribunal in relation to any decision of the Commissioners includes a power, where the tribunal allow an appeal on the ground that the Commissioners could not reasonably have arrived at the decision, either— Where, on an appeal under paragraph 1, the appeal tribunal find that a liability to a penalty or to an amount of interest arises, the tribunal must not give any direction for the modification of the amount payable in respect of that liability except— Sections 85 and 85B of the Value Added Tax Act 1994 (settling of appeals by agreement and payment of tax where there is a further appeal) have effect as if—
Two or more eligible bodies may apply to the Commissioners to be treated as members of the same group from the time specified in the application (the “specified time”). An application under this paragraph must specify which body is to be the representative member. The “specified time” means the beginning of the accounting period specified in the application but the period specified must not be before the beginning of the period in which the application is made.
The Commissioners may, by notice given to the members of the group concerned, terminate the treatment of any body corporate as a member of the group from the time specified in the notice where—
it appears to the Commissioners that the body is not an eligible body in relation to the group, or
the Commissioners consider it necessary to do so for the protection of the revenue.
In Part 5 of Schedule 9ZB to VATA 1994 (goods removed to or from Northern Ireland: rules relating to particular supplies), in paragraph 29 (distance selling between EU and Northern Ireland: place of supply)—
in sub-paragraph (1)(c)—
omit the “or” at the end of paragraph (i);
for the “and” at the end of paragraph (ii) substitute “or”;
after that paragraph insert—;
in sub-paragraph (3), after “paragraph 48(2)” insert “of Schedule 9ZA”.
This Schedule makes provision for penalties to be payable by a person who, in relation to a tax dealt with by one of the following tables, fails to pay an amount specified in column 2 of the table (“the tax due”) on or before the date specified in column 3 of the table (“the specified date”). 1 Amount of income tax or capital gains tax payable under section 55 of TMA 1970 The date determined in accordance with section 55 of TMA 1970 as the date by which the amount must be paid 2 Amount of income tax or capital gains tax payable under section 59B(3) or (4) of TMA 1970 The date specified in section 59B(3) or (4) of TMA 1970 as the date by which the amount must be paid 3 Amount of income tax or capital gains tax payable under section 59B(5) or (6) of TMA 1970 The date specified in section 59B(5) or (6) of TMA 1970 as the date by which the amount must be paid 4 Amount of income tax or capital gains tax payable under section 59B(5A) of TMA 1970 The date specified in section 59B(5A) of TMA 1970 as the date by which the amount must be paid 5 Amount of income tax or capital gains tax payable under section 59BA(4) or (5) of TMA 1970 The date specified in section 59BA(4) or (5) of TMA 1970 as the date by which the amount must be paid 6 Amount of income tax payable under regulations under section 244L(2)(a) of FA 2004 The due date determined by or under the regulations 7 Amount of income tax shown in a return under section 254(1) of FA 2004 The date specified in section 254(5) of FA 2004 as the date by which the amount must be paid 8 Amount of income tax or capital gains tax (not within item 4) shown in an assessment or determination made by HMRC in default of a return (see paragraph 3) The date by which the amount would have been required to be paid if it had been shown in the return in question 9 Amount of income tax or capital gains tax (not within item 1 or 3) shown in an amendment or correction of a return The later of— the date by which the amount must be paid, and the date on which the amendment or correction is made 10 Amount of income tax or capital gains tax (not within item 1 or 3) shown in an assessment or determination made by HMRC otherwise than in default of a return (see paragraph 3) The later of— the date by which the amount must be paid, and the date on which the assessment or determination is made 1 Amount of value added tax payable under section 25(1) of VATA 1994 (except an amount within item 2, 3, 4 or 5) The date determined by or under regulations under section 25 of VATA 1994 as the date by which the amount must be paid 2 Amount of value added tax 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 by which any balancing payment, or other outstanding payment due in respect of amount A, must be paid 3 Amount of value added tax shown in an assessment made by HMRC in default of a return (see paragraph 3) The date by which the amount would have been required to be paid if it had been shown in the return in question 4 Amount of value added tax shown in an amendment or correction of a return The date falling 30 days after the date on which the amendment or correction is made 5 Amount of value added tax shown in an assessment made by HMRC otherwise than in default of a return (see paragraph 3) The date falling 30 days after the date on which the assessment is made
A penalty is payable under this paragraph if— If the tax due is paid in full after the end of the 15 day period but before the end of the 30 day period, the amount of the penalty is amount A. If the tax due is not paid in full before the end of the 30 day period, the amount of the penalty is— (but see paragraph 7). Amount A is 2% of so much of the tax due as is unpaid at the end of the 15 day period. Amount B is 2% of so much of the tax due as is unpaid at the end of the 30 day period.
A penalty is payable under this paragraph if any amount of the tax due is unpaid at the end of the 30 day period. The amount of the penalty is calculated by applying the penalty rate, during the further penalty period, to so much of the tax due as is from time to time unpaid. The penalty rate is 4% per annum. The further penalty period is the period— But if a time to pay agreement has effect during the further penalty period, the further penalty period does not include the period— (but see paragraph 9). The relevant day is the day on which the person makes the proposals to HMRC for paying the tax due, as a result of which the time to pay agreement is made.
The Commissioners for HMRC may by regulations amend this Part of this Schedule so as to—
change references to 15 days (or to another number of days resulting from the previous exercise of powers under this sub-paragraph) to references to a greater or lesser number of days;
change references to 30 days (or to another number of days resulting from the previous exercise of powers under this sub-paragraph) to references to a greater or lesser number of days;
increase or reduce the percentage specified in paragraph 5(4);
increase or reduce the percentage specified in paragraph 5(5);
increase or reduce the percentage specified in paragraph 8(3).
Sub-paragraph (2) applies where— The licensing authority may not consider the application unless it has— Sub-paragraph (2) is subject to paragraph 6 (no requirement to confirm completion of tax check where HMRC in default). For the purposes of this Schedule “the required period”, in relation to an application, means the period of 120 days ending with the day on which the request under sub-paragraph (2)(a) is made in relation to the application.
Paragraph 3(2) (requirement of licensing authority to request and receive confirmation that applicant has completed tax check before considering application) ceases to apply in relation to an application if either of the following conditions is met. The first condition is that— The second condition is that—
In this Schedule—
The amendments made by paragraphs 4, 6 and 11 have effect in relation to accounting periods beginning on or after 1 April 2021.
The Commissioners may only refuse an application under paragraph 3 if— But the Commissioners may not refuse an application on the basis of sub-paragraph (1)(b) after the end of the period of 90 days beginning with the day on which the application is received by them.
Where— the Commissioners must, by notice given to such one of the bodies mentioned in paragraph (c) as the Commissioners consider appropriate, substitute that body as the representative member from the time specified in the notice.
a body corporate ceases to be treated as a member of a group under paragraph 5(1)(c) or 8,
immediately before that time the body was the representative member of the group,
immediately after that time there are two or more bodies corporate who will continue to be treated as members of the group, and
none of those bodies becomes the representative member under paragraph 5(1)(b),
In this Schedule, “HMRC” means Her Majesty’s Revenue and Customs.
The amendments made by paragraph 7 have effect as if they had been made by Schedule 4 to FA 2020 (see Part 3 of that Schedule).
The time specified in a notice under paragraph 8(a) may be a time before the giving of the notice but must not be before the time when the body ceased to be an eligible body. The time specified in a notice under paragraph 8(b) must not be a time before the day on which the notice is given to the members. The time specified in a notice under paragraph 9 may be a time before the giving of the notice.
The amendments made by paragraphs 9 and 10 are to be treated as having always had effect.
The amendments made by paragraph 12 have effect in relation to a group allowance allocation statement submitted under section 269ZT or 269ZU of CTA 2010 in respect of an accounting period beginning on or after 1 April 2021.
The amendments made by paragraphs 14 and 15 have effect in relation to an acquisition that takes place on or after 1 April 2021.
Section 36
After section 259B(3) of TIOPA 2010 insert—
Part 6A of TIOPA is amended as follows.
In section 259CB (hybrid or otherwise impermissible deduction/non-inclusion mismatches and their extent), for subsection (3) substitute—
In section 259CC (interpretation of section 259CB), after subsection (3) insert—
After section 259NEA insert—
Chapter 3 of Part 6A of TIOPA is amended as follows.
In section 259CB (hybrid or otherwise impermissible deduction/non-inclusion mismatches and their extent)—
after subsection (3) (as substituted by paragraph 3) insert—, and
in subsection (4), in the opening words, for “that and subsection” substitute “subsections (3), (3A) and”.
In section 259CC (interpretation of section 259CB), after subsection (3A) (as inserted by paragraph 4) insert—
Part 6A of TIOPA 2010 (hybrid and other mismatches) is amended as follows.
Chapter 5 (hybrid payer deduction/non-inclusion mismatches) is amended as follows. In section 259EC (counteraction where the hybrid payer is within the charge to corporation tax for the payment period), in subsection (4) omit “arises in connection with the arrangement mentioned in section 259EA(2) and”. After subsection (5) insert— In section 259ED(9) (counteraction where a payee is within the charge to corporation tax) omit “arises in connection with the arrangement mentioned in section 259EA(2) and”.
Chapter 6 (deduction/non-inclusion mismatches relating to transfers by permanent establishments) is amended as follows. In section 259FB (counteraction of the excessive PE deduction), after subsection (4) insert— After section 259FB insert—
Chapter 9 (hybrid entity double deduction mismatches) is amended as follows. In section 259IC (counteraction where the hybrid entity is within the charge to corporation tax), in subsection (4), for the words from “unless” to the end substitute “unless it is deducted from dual inclusion income for that period.” After section 259IC insert— Omit section 259ID (section 259ID income for the purposes of section 259IC).
Chapter 10 (dual territory double deduction cases) is amended as follows. In section 259JD (counteraction where mismatch arises because of a relevant multinational and is not counteracted in the parent jurisdiction), after subsection (9) insert— After section 259JD insert—
In Chapter 13 of Part 6A of TIOPA 2010 (hybrid and other mismatches: anti-avoidance), in section 259M(4) (countering the effect of avoidance arrangements), omit the “or” after paragraph (a) and after paragraph (b) insert , or
Part 6A of TIOPA 2010 is amended as follows. In section 259A (overview of Part), after subsection (16) insert— After Chapter 12 insert—
In Schedule 18 to FA 1998 (company tax returns, assessments and related matters), after Part 8 insert—
Chapter 6 of Part 6A of TIOPA 2010 (hybrid and other mismatches: deduction/non-inclusion mismatches relating to transfers by permanent establishments) is amended in accordance with sub-paragraph (2). In section 259FA(4) (circumstances in which the Chapter applies), omit the “and” after paragraph (a) and after paragraph (b) insert , and
Part 6A of TIOPA is amended as follows. In section 259IC (counteraction where hybrid entity is within charge to corporation tax), in subsection (8), after “person” insert “other than an investor in the hybrid entity”. In section 259JB (counteraction where mismatch arises because of a dual resident company), in subsection (6), after “person” insert “other than the company”. In section 259JD (counteraction where mismatch arises because of a relevant multinational and is not counteracted in the parent jurisdiction), in subsection (6), after “person” insert “other than the company”.
Chapter 11 of Part 6A of TIOPA (imported mismatches) is amended as follows.
In section 259K (overview of chapter), after subsection (4A) insert—
Section 259KA (circumstances in which Chapter) is amended as follows. For subsection (7) substitute— Omit subsection (8). After subsection (9)(a) for “as the payer, or a payee” substitute “as a payee”.
In section 259KC(2A), at the end insert “and section 259KE (limit on reduction under section 259KC)”.
After section 259KD insert—
Section 259ND of TIOPA 2010 (meaning of “50% investment” and “25% investment”) is amended as follows. For subsection (7) substitute— In subsection (8)—
Part 6A of TIOPA 2010 is amended as follows.
In section 259BC (the basic rules), after subsection (8) insert—
Section 259EB (hybrid payer deduction/non-inclusion mismatches and their extent) is amended in accordance with sub-paragraphs (2) and (3). In subsection (3), at the beginning insert “Subject to subsections (4A) to (4C)”. After subsection (4), insert—
In section 259GB (hybrid payee deduction/non-inclusion mismatches and their extent), after subsection (2) insert—
After section 259ND insert—
TIOPA 2010 is amended as follows.
In Part 4 (transfer pricing), after section 192 insert—
In Chapter 11 of Part 6A (imported mismatches), in section 259K (overview of chapter), after subsection (4B) (as inserted by paragraph 20) insert—
After section 259KE (as inserted by paragraph 23) insert—
After section 259NE of TIOPA 2010 insert—
Part 6A of TIOPA 2010 is amended as follows. In section 259A (overview of Part), after subsection (17) insert— After Chapter 13 insert—
Part 6A of TIOPA 2010 has effect, and is deemed always to have had effect—
with the amendments contained in Parts 2 to 3, 7, 10 and 13 of this Schedule, and
with the amendment made by paragraph 26 so far as it applies in relation to a qualifying institutional investor that is an investment trust.
The amendments made by Parts 1, 4, 5, 8, 9, 11, 12 and 14 of this Schedule (except that made by paragraph 26 so far as it applies by virtue of paragraph 36(b)) have effect—
in the case of their application to Chapter 6 of Part 6A of TIOPA 2010, in relation to excessive deductions in relation to which the relevant PE period begins on or after the day on which this Act is passed,
in the case of their application to Chapter 9 or 10 of Part 6A of TIOPA 2010, in relation to accounting periods beginning on or after that date, and
in the case of their application to any other Chapter of Part 6A of TIOPA 2010, in relation to—
payments made on or after that date, or
quasi-payments in relation to which the payment period begins on or after that date.
For the purposes of paragraph 37, where there is a straddling period— A “straddling period” is an accounting period or payment period (as the case may be) beginning before the day on which this Act is passed and ending on or after that date.
Notwithstanding paragraph 37, a taxpayer may make an election (a “Part 4 retrospection election”) that the amendments made by Part 4 of this Schedule are to be deemed always to have had effect in relation to the taxpayer. A Part 4 retrospection election must be made on or before 31 December 2021. Sub-paragraphs (4) to (9) apply where a Part 4 retrospection election is made by a taxpayer. The taxpayer may, in consequence of the Part 4 retrospection election, make reasonable adjustments to claims, returns and elections made before the Part 4 retrospection election. Any such adjustments must be made on or before 31 December 2021 but, subject to that, the time limits otherwise applicable to amending or withdrawing the claim, return or election in question do not prevent an adjustment being made under sub-paragraph (4). Sub-paragraph (7) applies where— The surrendering company may make such adjustments to claims, returns and elections made before the Part 4 retrospection election as are reasonably necessary in consequence of the withdrawal, or the withdrawal and replacement, of the group relief claim. Any such adjustments must be made on or before 31 December 2021 but, subject to that, the time limits otherwise applicable to amending or withdrawing the claim, return or election in question do not prevent an adjustment being made under sub-paragraph (7). In sub-paragraphs (6) to (8)—
Part 6 of this Schedule (allocation of dual inclusion income within group) has effect in relation to accounting periods of a claimant company that begin on or after 1 January 2021. A “claimant company” is a company that makes an allocation claim for the purposes of Chapter 12A of Part 6A of TIOPA 2010 (inserted by Part 6 of this Schedule). For the purposes of sub-paragraph (1), where there is a straddling period— A “straddling period” is an accounting period beginning before 1 January 2021 and ending on or after that date.
Section 37
Part 7ZA of CTA 2010 (restrictions on deductions for carried-forward losses and other amounts) is amended as follows.
After section 269ZS (group deductions allowance and the nominated company) insert—
After section 269ZV (group allowance allocation statement: requirements and effects) insert—
Part 5A of CTA 2010 (group relief for carried-forward losses) is amended as follows.
HMRC must offer a person (P) a review of a decision that has been notified to P if an appeal in respect of the decision may be brought under paragraph 1. The offer of the review must be made by notice given to P at the same time as the decision is notified to P. This paragraph does not apply to the notification of the conclusions of a review.
If under paragraph 3 HMRC have offered P a review of a decision, HMRC may within the period for requiring a review notify P that that period is extended. If under paragraph 4 another person may require HMRC to review a matter, HMRC may within the period for requiring a review notify the other person that that period is extended. If notice is given the period for requiring a review is extended to the end of the period of 30 days beginning with— In this paragraph, “period for requiring a review” means—
An appeal relating to a decision that an amount is due from a person may not be considered by the appeal tribunal unless the amount which HMRC have determined to be due has been paid or deposited with HMRC. But sub-paragraph (1) does not apply if— Notwithstanding the provisions of sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007, the decision of the appeal tribunal as to the issue of hardship is final.
The Commissioners may disclose information obtained or held by them in, or in connection with, their functions in relation to plastic packaging tax to— Information may only be disclosed under sub-paragraph (1) for the purpose of assisting a person listed in paragraphs (a) to (g) of that sub-paragraph in the performance of their duties. A person listed in sub-paragraph (1)(a) to (g) may disclose information to the Commissioners, or to an authorised officer of the Commissioners, for the purposes of assisting the Commissioners in the performance of their duties relating to plastic packaging tax. No charge may be made for any disclosure made by virtue of this paragraph. Nothing in this paragraph permits the disclosure of information which, although disclosed in compliance with this paragraph, would contravene the data protection legislation. In this paragraph “data protection legislation” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act). References in this paragraph to an authorised officer of any person are to any person who has been designated by the principal as a person to and by whom information may be disclosed by virtue of this paragraph.
In this Schedule “penalty” means a penalty under section 80 (penalty for contravening relevant requirements).
Plastic packaging tax Return under regulations under section 61 of FA 2021.
Schedule 36 to FA 2008 (powers to obtain information etc) is amended as follows. 13 A person involved (in any capacity) in the production, or importation to or exportation from the United Kingdom, of packaging components (within the meaning of section 48 of FA 2021) or in connected activities Documents relating to matters in which the person is or has been involved Plastic packaging tax 14 A person involved (in any capacity) in the purchase or sale of plastic packaging components (within the meaning of section 48 of FA 2021) or of goods packaged in such components Documents relating to matters in which the person is or has been involved Plastic packaging tax In paragraph 63(1) (meaning of “tax”), after paragraph (i) insert—.
No penalty is payable if— (but see paragraph 7).
the tax due is paid in full before the end of the 15 day period, or
the 15 day time to pay condition is met,
This paragraph applies where— If HMRC give the person notice that a penalty is payable under paragraph 5, a penalty is payable under that paragraph as if the condition in question had never been met.
This paragraph gives the meaning of terms used in this Part of this Schedule. The “15 day period”, in relation to tax due, is the period of 15 days beginning with the day after the specified date. The “30 day period”, in relation to tax due, is the period of 30 days beginning with the day after the specified date. A “time to pay agreement” is an agreement between HMRC and a person that payment of an amount of tax due (the “deferred amount”) may be deferred for a period (the “deferral period”). A person breaks a time to pay agreement if— If a time to pay agreement is varied at any time by a further agreement between the person and HMRC, references in this Schedule to the agreement include the agreement as varied.
If HMRC think it right because of special circumstances, they may reduce a penalty under this Schedule. In sub-paragraph (1) “special circumstances” does not include— In sub-paragraph (1) the reference to reducing a penalty includes a reference to—
Where a person is liable to a penalty under this Schedule HMRC may assess the penalty. HMRC may by regulations make provision for HMRC to assess a penalty under paragraph 8 at times or intervals before the end of the further penalty period. Where HMRC assess a penalty they must notify the person and state in the notice— A penalty under this Schedule must be paid before the end of the period of 30 days beginning with the day on which notification of the penalty is issued. An assessment of a penalty under this Schedule—
ITTOIA 2005 is amended as follows.
Section 240 (amendment or withdrawal of conduct notice) is amended as follows. In the heading, for “or withdrawal” substitute “, withdrawal or reissue”. In subsection (3), omit paragraph (b) (and the “and” before it). After subsection (3) insert—
In section 242 (monitoring notices: duty to apply to tribunal), in subsection (1)— After subsection (1) insert— The amendments made by this paragraph have effect in relation to—
The surrendering company may not surrender under this Chapter any loss or other amount carried forward to the surrender period to the extent that the loss or other amount could be deducted from the total profits of the company for the period at Step 2 of section 4(2).
A supplementary assessment may be made in respect of a penalty if an earlier assessment is based on an amount of tax due and payable that is found by HMRC to be an underestimate or insufficient. If an assessment in respect of a penalty is based on an amount of tax due or payable that is found by HMRC to be excessive, HMRC may by notice amend the assessment so that it is based upon the correct amount. An amendment under sub-paragraph (2)—
In the italic heading before section 54, for “, interest and VAT surcharges” substitute “and interest”.
Section 188DD (claimant company’s relevant maximum for overlapping period) is amended as follows. In subsection (3), for “269ZD(6)” substitute “269ZDA”. In subsection (3A)—
In section 54 (penalties, interest and VAT surcharges)—
in the heading, for “, interest and VAT surcharges” substitute “and interest”;
omit subsection (3).
In section 272 (application of trading income rules: GAAP), in the table in subsection (2), in the entry for section 54, in the second column, for “, interest and VAT surcharges” substitute “and interest”.
In section 272ZA (application of trading income rules: cash basis), in the table in subsection (1), in the entry for section 54, in the second column, for “, interest and VAT surcharges” substitute “and interest”.
In the italic heading before section 869, for “, interest and VAT surcharges” substitute “and interest”.
In section 869 (penalties, interest and VAT surcharges: non trades etc)—
in the heading, for “, interest and VAT surcharges” substitute “and interest”;
omit subsection (5).
“enactment” includes an enactment contained in subordinate legislation (within the meaning of the Interpretation Act 1978);
Part 7ZA of CTA 2010 is amended as follows.
Any application under this Schedule in respect of any bodies corporate must be made by—
one of those bodies, or
the person controlling those bodies.
The Commissioners may by regulations make provision about— The Commissioners may also by regulations make provision requiring a person who has made an application under this Schedule to notify the Commissioners if any of the information contained in or provided in connection with the application is or becomes inaccurate. Sub-paragraph (1) applies in relation to notifications by the Commissioners under this Schedule as it applies in relation to applications under this Schedule.
This Schedule provides for penalties to be payable by a person who, by failing to make a return listed in the third column of the Table below on or before the due date, deliberately withholds information which would enable or assist HMRC to assess the person’s liability to tax. Paragraph 20 provides for this Schedule to apply with modifications where the return relates to a partnership. Tax to which return relates Return 1 Income tax or capital gains tax Return under section 8 of TMA 1970 Accounts, statement or document required under section 8(1AB)(b) of TMA 1970 2 Income tax or capital gains tax Return under section 8A of TMA 1970 Accounts, statement or document required under section 8A(1AB)(b) of TMA 1970 3 Income tax or corporation tax Return under section 12AA(2)(a) or (3)(a) of TMA 1970 Accounts, statement or document required under section 12AA(2)(b) or (3)(b) of TMA 1970 4 Income tax or corporation tax Return under regulations under paragraph 10 of Schedule A1 to TMA 1970 Before the coming into force of paragraph 3 of Schedule 14 to F(No.2)A 2017, the reference in the Table to section 8(1AB)(b) of TMA 1970 is to be read as a reference to section 8(1)(b) of TMA 1970. Before the coming into force of paragraph 4 of Schedule 14 to F(No.2)A 2017, the reference in the Table to section 8A(1AB)(b) of TMA 1970 is to be read as a reference to section 8A(1)(b) of TMA 1970.
Information is category 1 information if— Information is category 2 information if— Information is category 3 information if— Information “involves an offshore matter” if the liability to tax which would have been shown in the return includes a liability to tax charged on or by reference to— Information “involves an offshore transfer” if— Information “involves a domestic matter” if it does not involve an offshore matter or an offshore transfer. If the information which the person withholds falls into more than one category— For the purposes of this Schedule— In this paragraph and paragraph 6—
Paragraph 8 provides for reductions in the penalty under this Schedule where the person discloses information which has been withheld by a failure to make a return (“relevant information”). A person discloses relevant information that involves a domestic matter by— A person discloses relevant information that involves an offshore matter or an offshore transfer by— The Treasury must make regulations setting out what is meant by “additional information” for the purposes of sub-paragraph (3)(d). Disclosure of relevant information— In relation to disclosure “quality” includes timing, nature and extent. Paragraph 4(4) to (6) applies to determine whether relevant information involves an offshore matter, an offshore transfer or a domestic matter.
For the purposes of a penalty under this Schedule references to a liability to tax which would have been shown in a return are references to the amount which, if a complete and accurate return had been delivered on the due date, would have been shown to be due or payable by the taxpayer in respect of the tax concerned for the period to which the return relates. In the case of a penalty which is assessed at a time before the person makes the return to which the penalty relates, HMRC may either— If the person subsequently makes a return, the penalty must be re-assessed by reference to the amount of tax shown to be due and payable in that return (but subject to any amendments or corrections to the return).
An assessment of a penalty under this Schedule may not be made after the later of Date A and (where it applies) Date B. Date A is the end of the period of 2 years beginning with the due date. Date B is the last day of the period of 12 months beginning with— In sub-paragraph (3)(a) “appeal period” means the period during which— Sub-paragraph (1) does not apply to a re-assessment under paragraph 11(3). A re-assessment under that paragraph must be made before the end of the period of 2 years beginning with the day on which the return is made.
The Social Security Contributions and Benefits Act 1992 is amended as follows.
In section 269ZF(3) (steps for determining a company’s qualifying trading profits, qualifying non-trading income profits and qualifying chargeable gains), in paragraph (2) of step 2—
for “sum,” substitute sum—;
at the end insert , and
If a person who would otherwise be liable to a penalty of a percentage shown in column 1 of the Table in this paragraph (a “standard percentage”) has made a disclosure, HMRC must reduce the standard percentage to one that reflects the quality of the disclosure. But the standard percentage may not be reduced to a percentage that is below the minimum shown for it— But HMRC must not under this paragraph reduce a penalty below £300.
In section 11A (application of certain provisions of the Income Tax Acts in relation to Class 2 contributions under section 11(2)), after subsection (1)(ea) insert—.
But if the allowance mentioned in paragraph (b) exceeds the profits mentioned in paragraph (a), the company’s “relevant profits” for the accounting period are nil.
In section 16(1) (application of Income Tax Acts and destination of Class 4 contributions), at the end of paragraph (e) insert and.
Section 269ZT (group allowance allocation statement: submission) is amended as follows. In subsection (1), for “and (3)” substitute “to (3A)”. After subsection (3) insert— In subsection (4), for the words from “before” to the end substitute on or before whichever is the latest of the following dates—
In section 269ZV(5) (maximum amount of group deductions allowance that may be allocated to a listed company by a group allowance allocation statement)—
In the definition of “DAP”—
in paragraph (a), after “period” insert “on which the nominee was the nominated company in relation to the group”;
in paragraph (b), after “which the” insert “listed”;
in the definition of “DNAP”, after “period” insert “on which the nominee was the nominated company in relation to the group”.
Section 59
Schedule 10 applies with any necessary modifications, and subject as follows, in relation to any amount which R is liable to pay as a result of a secondary liability and assessment notice or a joint and several liability notice. Paragraphs 4 to 6 of that Schedule apply in relation to an assessment under paragraph 16(1) of this Schedule as they apply to an assessment under paragraph 2(2) of that Schedule, except that paragraph 6 applies as if, in sub-paragraph (2), “4” were “2”.
Section 61
Section 62
Section 64
Section 71
Section 80
Section 82
Section 88
Section 89
Part 4 of FA 2003 (stamp duty land tax) is amended in accordance with this Schedule.
Section 81 (further return where relief withdrawn) is amended as follows. For subsection (1A) substitute— In subsection (1B), after paragraph (e) insert—. After subsection (1B) insert— For subsection (3) substitute— Omit subsection (5). At the end insert—
Section 81ZA (alternative finance arrangements: return where relief withdrawn) is amended as follows. In subsection (1), for “or 6H” substitute “, 6H or 6I”. For subsection (2) substitute— In subsection (3), for the words from “the first day” to the end substitute — In subsections (4) and (5), for “subsection (3)” substitute “subsection (3)(a)”. After subsection (5) insert— In subsection (6), for the definition of “the relevant person” substitute— After subsection (6) insert—
Section 85 (liability for tax) is amended as follows. After subsection (2) insert— In subsection (3), for “and 6H” substitute “, 6H and 6I”. In subsection (4), for the words from “means” to the end substitute “has the same meaning as in section 81ZA (see subsections (6) and (7) of that section)”.
Section 86 (payment of tax) is amended as follows. In subsection (2)(za), for “5K” substitute “5L”. In subsection (2A), for “and 6H” substitute “, 6H and 6I”.
In section 87(3) (interest on unpaid tax)—
in paragraph (za), for “5K” substitute “5L”;
after paragraph (za) insert—.
Schedule 4A (stamp duty land tax: higher rate for certain transactions) is amended as follows. In paragraph 2(6)(a)— In paragraph 6A— In paragraph 6C(2)(b), for “and 5F(1)” substitute “, 5F(1) and 5FA”. After paragraph 6H insert— In paragraph 9, in the definition of “financial institution”, for “6H” substitute “6I”.
In Schedule 10 (returns, assessments and other matters), in paragraph 12(2A) (notice of enquiry)—
in paragraph (b), omit “in respect of the same land transaction”;
in the words after paragraph (b), for “land transaction” substitute “return”.
Section 95
In section 40A of VATA 1994 (Northern Ireland Protocol) after subsection (3) insert—
After Schedule 9ZC to VATA 1994 insert—
In Schedule 9ZC to VATA 1994 (online sales by overseas persons and low value importations: modifications relating to the Northern Ireland Protocol) omit Part 2 (modifications of the Value Added Tax (Imported Goods) Relief Order 1984).
Schedule 9ZC to VATA 1994 is amended as follows. Before paragraph 2 insert— After paragraph 2 insert— Sub-paragraph (1) has effect as if at the start there were inserted “Subject to paragraph 6ZA, After paragraph 3 insert— Before Part 3 insert—
Section 99
Section 101
The Customs (Northern Ireland) (EU Exit) Regulations 2020 (S.I. 2020/1605) are amended in accordance with this Schedule.
Section 102
HODA 1979 is amended as follows.
In section 6AA (excise duty on biodiesels), in subsection (2)—
after paragraph (a) insert—;
in paragraph (b), for “so used” substitute “used as mentioned in paragraph (a) or (aa)”.
In section 6AB (excise duty on blends of biodiesel and heavy oils), in subsection (4A), for “other than as fuel for road vehicles” substitute “as fuel for excepted machines”. If paragraph 2 of Schedule 11 to FA 2020 has come into force in relation to any part of the United Kingdom before this Schedule comes into force then, in relation to that part, in sub-paragraph (1) of this paragraph, after “vehicles” insert “etc”.
In section 6A (fuel substitutes), in subsection (2)—
at the end of paragraph (a) (but before the “or”) insert—;
in paragraph (b), for “so used” substitute “used as mentioned in paragraph (a) or (aa)”.
In section 12 (rebate not allowed on fuel for road vehicles)— If paragraph 3 of Schedule 11 to FA 2020 has come into force in relation to any part of the United Kingdom before this Schedule comes into force then, in relation to that part—
Section 13 (penalties for contravention of section 12) is amended as follows. In subsection (1)— In subsection (1A)— In subsection (2)— In subsection (3)— In subsection (4), after “section 12 above” insert “or into any other vehicle, vessel, machine or appliance in contravention of subsection (2ZA) of that section”. In subsection (6)—
In section 13ZB (restrictions on supply of certain heavy oil for heating etc), in subsection (5), in the definition of “prohibited use”, for “for a road vehicle” substitute “other than for an excepted machine”. If paragraph 4 of Schedule 11 to FA 2020 has come into force in relation to any part of the United Kingdom before this Schedule comes into force then, in relation to that part, in sub-paragraph (1) of this paragraph, after “vehicle” insert “or as fuel for a private pleasure craft”.
Section 13AA (restrictions on use of rebated kerosene) is amended as follows. In subsection (1), for paragraphs (a) and (b) substitute “an excepted machine other than an excepted machine used for heating”. In subsection (2), for paragraphs (a), (b) and (c) substitute—
In section 13AB (penalty for contravention of section 13AA), in subsection (2), in the words before paragraph (a), omit “of an engine”.
Section 14A (rebate on biodiesel used other than as fuel for road vehicles etc) is amended as follows. In the heading, for “other than as fuel for road vehicles etc” substitute “as fuel for excepted machines”. In subsection (1)— Omit subsection (4).
Section 14B (rebate on bioblend used other than as fuel for road vehicles) is amended as follows. In the heading, for “other than as fuel for road vehicles” substitute “as fuel for excepted machines”. In subsection (1)(a)— In subsection (1)(b)(i), for the words from “fuel” to “of” substitute “mentioned in”. If paragraph 6 of Schedule 11 to FA 2020 has come into force in relation to any part of the United Kingdom before this Schedule comes into force then, in relation to that part—
Section 14C (restrictions on use of rebated diesel and bioblend) is amended as follows. In subsection (1)— In subsection (2)— Omit subsection (4A). If paragraph 7 of Schedule 11 to FA 2020 has come into force in relation to any part of the United Kingdom before this Schedule comes into force then, in relation to that part, in sub-paragraph (2)(c) of this paragraph—
Section 14D (penalties for misuse of rebated biodiesel or bioblend) is amended as follows. In subsection (1)— In subsection (2)(b), for “vehicle or the fuel supply of an engine” substitute “fuel supply”. In subsection (3)(b), for “vehicle or the fuel supply of an engine” substitute “fuel supply”.
Omit section 14E (rebated heavy oil and bioblend: private pleasure craft).
Omit section 14F (penalties for contravention of section 14E).
Section 19 (fuel used in fishing boats etc) is amended as follows. In the heading, for “fishing boats” substitute “lifeboats”. In subsection (3), omit “less any rebate allowed in respect of the duty”.
In section 20AAA (mixing of rebated oil), in subsection (4)(a), for “for a road vehicle” substitute “other than for an excepted machine”. If paragraph 10 of Schedule 11 to FA 2020 has come into force in relation to any part of the United Kingdom before this Schedule comes into force then, in relation to that part, in sub-paragraph (1) of this paragraph, after “vehicle” insert “or as fuel for propelling a private pleasure craft”.
In section 24 (control of use of duty-free and rebated oil), after subsection (3) insert— If paragraph 11 of Schedule 11 to FA 2020 has come into force in relation to any part of the United Kingdom before this Schedule comes into force then, in relation to that part, in sub-paragraph (1) of this paragraph, for “after subsection (3) insert” substitute “for subsection (3A) substitute”.
Section 24A (penalties for misuse of marked oil) is amended as follows. In subsection (1), for “a road vehicle” substitute “other than for an excepted machine”. In subsection (3), for “for road vehicles or for road vehicles of a particular description” substitute “other than for excepted machines”. In subsection (7) for the words from “road vehicle” to “the vehicle” substitute “vehicle, vessel, machine or appliance other than an excepted machine”.
Section 27 (interpretation) is amended as follows. In subsection (1)— In subsection (1ZA)— In subsection (1ZB)— In subsection (1ZC)— In subsection (1ZD)—
Omit Schedule 1 (excepted vehicles).
Before Schedule 2 insert—
Schedule 4 (subjects for regulations under section 24) is amended as follows. In paragraph 19, for “road vehicle” substitute “vehicle, vessel, machine or appliance”. In paragraph 20, at the end insert “, vessel, machine or appliance”. In paragraph 21— If paragraph 13 of Schedule 11 to FA 2020 has come into force in relation to any part of the United Kingdom before this Schedule comes into force then, in relation to that part—
In Schedule 5 (sampling), in paragraph 7, after “vehicle” insert “, vessel, machine or appliance”. If paragraph 14 of Schedule 11 to FA 2020 has come into force in relation to any part of the United Kingdom before this Schedule comes into force then, in relation to that part, in sub-paragraph (1) of this paragraph, for the words from “after” to the end substitute “for “or a vessel” substitute “, vessel, machine or appliance””.
Section 114
Part 2 of CAA 2001 (plant and machinery allowances) is amended as follows.
section 45O expenditure on plant and machinery for use in freeport tax sites.
After section 45N insert—
section 45O (expenditure on plant and machinery for use in freeport tax sites).
Expenditure qualifying under section 45O (expenditure on plant and machinery for use in freeport tax sites) 100%
Part 2A of CAA 2001 (structures and buildings allowances) is amended as follows.
Section 270AA (structures and buildings allowances) is amended as follows. In subsection (2)(b)(ii), for “the period of 33 1/3 years” substitute “the period of the length specified in subsection (2A),”. After that subsection insert— In subsection (5), for “3% of the qualifying expenditure” substitute — In subsection (6), after “section—” insert—.
In section 270BJ (expenditure on renovation, conversion or incidental repairs), after subsection (2) insert—
In section 270BK(3) (preparation of sites), for “and 270AB” substitute “, 270AB and 270BNA(2) and (7)”.
After section 270BN insert—
Section 270EB (multiple uses) is amended as follows. In subsection (2), for “3%” substitute “the relevant percentage”. After subsection (3) insert—
In section 270IA(4) (evidence of qualifying expenditure etc), after subsection (4) insert—
Section 115
Part 4 of FA 2003 (stamp duty land tax) is amended as follows.
After section 61 insert—
In section 81 (further return where relief withdrawn)—
in subsection (1A) (as substituted by Schedule 17 to this Act), after paragraph (a) insert—,
in subsection (1B), after paragraph (ea) (inserted by Schedule 17 to this Act) insert—, and
after subsection (4) insert—
In section 81ZA (alternative finance arrangements: return where relief withdrawn)—
in subsection (1), after “arrangements)” insert “or under Part 3 of Schedule 6C (relief for freeport tax sites) in a case to which paragraph 11 of that Schedule (alternative finance arrangements) applies”,
in subsection (3) (as substituted by Schedule 17 to this Act), at the end insert—, and
after subsection (6) insert—
In section 85(3) (liability for tax), after “arrangements)” insert “or under Part 3 of Schedule 6C (relief for freeport tax sites) in a case to which paragraph 11 of that Schedule (alternative finance arrangements) applies”.”
In section 86 (payment of tax)—
in subsection (2), after paragraph (za) insert—, and
in subsection (2A), after “arrangements)” insert “or under Part 3 of Schedule 6C (relief for freeport tax sites) in a case to which paragraph 11 of that Schedule (alternative finance arrangements) applies”.
In section 87(3) (interest on unpaid tax), after paragraph (aza) insert—.
After Schedule 6B insert—
Section 116
Section 116
Section 117
Section 118
Section 119
Chapter 2 of Part 4 of FA 2014 (follower notices) is amended as follows.
“HMRC Commissioners” means the Commissioners for Her Majesty’s Revenue and Customs;
In Schedule 2 to the National Insurance Contributions Act 2015, paragraph 20 (recovery of penalties under Part 4 of FA 2014) is amended as follows. In sub-paragraph (1), after “208” insert “, 208A”. In sub-paragraph (3), after “208” insert “or 208A”.
In section 237 (duty to give conduct notices)— In section 237A (duty to give conduct notices: defeat of promoted arrangements)—
In section 241 (duration of conduct notice)—
in subsection (2)—
in paragraph (a), for “the period of two years” substitute “the relevant period”;
omit the “or” at the end of paragraph (a);
omit paragraph (b);
after subsection (2) insert—;
after subsection (4) insert—
Schedule 34 (threshold conditions) is amended as follows.
Paragraph 5 (non-compliance with Part 7 of FA 2004) is amended in accordance with sub-paragraphs (2) to (7). In the heading, for “Part 7 of FA 2004” substitute “avoidance disclosure requirements”. A person meets this condition if the person fails to comply with any of the following provisions of— In sub-paragraph (1)— The provisions of Schedule 17 to F(No.2)A 2017 are— In sub-paragraph (2)— In sub-paragraph (4), after “TMA 1970” insert “or paragraph 48 of Schedule 17 to F(No.2)A 2017”.
In paragraph 7—
A person meets this condition if one or more of sub-paragraphs (2) to (4) apply in respect of the person.
the existing text becomes sub-paragraph (2);
in that sub-paragraph (2), for “A person meets this condition if” substitute “This sub-paragraph applies in respect of a person if”;
This sub-paragraph applies in respect of a person (“P”) if— This sub-paragraph applies in respect of a person if—
In paragraph 10 (exercise of information powers)—
in sub-paragraph (1), for the words from “an information notice” to the end substitute a requirement imposed by a notice or order given under any of the following provisions—
in sub-paragraph (2), after “notice” insert “or order”.
In Schedule 20 to FA 2015 (penalties in connection with offshore matters and offshore transfers), after paragraph 20 insert—
The amendments made by Parts 1 and 2 of this Schedule have effect where a penalty under section 208 of FA 2014 is assessed, under section 211 of that Act, on or after the day on which this Schedule comes into force.
The reference in section 120(2) of FA 2015 (commencement) to Schedule 20 to that Act is to be read as a reference to Schedule 20 as amended by Part 3 of this Schedule.
Section 120
FA 2009 is amended as follows.
In section 102(4) (repayment interest on sums to be paid by HMRC)—
omit the “and” at the end of paragraph (a);
after paragraph (a) insert—.
Schedule 54 (repayment interest) is amended as follows. In Part 2, after paragraph 12B insert— After Part 2 insert—
Schedule 54A (further provision as to late payment interest and repayment interest) is amended as follows. After the Schedule heading insert—PART 1 (so that the existing text of the Schedule becomes Part 1 of the Schedule). At the end of the Schedule insert—
Section 121
After section 236 (of FA 2014) insert—
Section 245 (withdrawal of monitoring notice) is amended as follows. In subsection (5)(c), after “Part” insert “(including any obligations connected with any stop notice the person is subject to)”. After subsection (8) insert—
Omit section 262 (information required for monitoring compliance with conduct notice).
After section 272 insert—
Section 273 (confidentiality) is amended as follows. In subsection (1) before paragraph (a) insert—. In subsection (2)— In subsection (3)— In subsection (4), for “relevant”, in each place it occurs, substitute “applicable”. After that subsection insert—
In section 283 (interpretation of Part 5), in subsection (1), at the appropriate place insert—.
In Schedule 34 (threshold conditions)—
for the italic heading before paragraph 12 substitute “Stop notices”;
for that paragraph substitute—
Schedule 35 (penalties) is amended as follows. In paragraph 1— In paragraph 2— In paragraph 3, in sub-paragraph (1), after “information duty” insert “, other than a duty arising under section 236C(1),”. In paragraph 4— In paragraph 6(1) in sub-paragraph (1) for “, 257 or 262” substitute “or 257 or under Schedule 36 of FA 2008 as it has effect as a result of section 272A”. In paragraph 7— In paragraph 10, in paragraph (b)—
In section 235 (carrying on a business “as a promoter”), after subsection (1) insert—
After Schedule 33 insert—
In section 237 (duty to give conduct notice), after subsection (8) insert—
In section 237A (duty to give conduct notice: defeat of promoted arrangement) after subsection (3B) (as inserted by paragraph 22(2) of this Schedule) insert—
In section 250 (allocation of promoter reference number), in subsection (2)—
omit the “and” at the end of paragraph (a);
after that paragraph insert—.
Section 251 (duty of monitored promoter to notify clients and intermediaries of number) is amended as follows. In the heading for “and intermediaries” substitute “etc”. In subsection (2)—
Section 252 (duty of those notified to notify others of promoter‘s number) is amended as follows. After subsection (4) insert— In subsection (5), for “Subsection (2) or (4) does not” substitute “None of subsections (2), (4) or (4A)”.
In section 258 (duty of person dealing with non-resident monitored promoter), in subsection (3)—
omit the “and” at the end of paragraph (a);
after that paragraph insert—.
Section 260 (intermediaries: duty to provide information about clients) is amended as follows. In the heading, after “Intermediaries” insert “etc”. In subsection (1)— In subsection (3)(a) for “the intermediary” substitute “the person to whom the notice is given”. In subsection (5)— In subsection (6) for “the intermediary”, in each place it occurs, substitute “R”.
In section 283 (interpretation)—
in subsection (1), at the appropriate place insert—;
after subsection (3) insert—
In Schedule 34 (threshold conditions) in paragraph 13B, in sub-paragraph (5), after “individual” insert “who does not fall within the case described in paragraph 4 or 5 of Schedule 33A”.
Section 122
Part 7 of FA 2004 (disclosure of tax avoidance schemes) is amended as follows.
Before section 306 insert—
In section 307(4A) (meaning of “makes a firm approach”), omit “notifiable” in both places.
After section 310C insert—
For section 311 substitute—
Section 312 (duty of promoter to notify client of reference number) is amended as follows. In the heading, at the end insert “: section 311(2) case”. In subsection (2)—
After section 312 insert—
Section 312A (duty of client to notify parties of reference number) is amended as follows. In subsection (1)— After subsection (1) insert— In subsection (4), for “notifiable arrangements or a notifiable proposal” substitute “arrangements or a proposal”.
Section 312B (duty of client to provide information to promoter) is amended as follows. In the heading, omit “to promoter”. For subsection (1) substitute— In subsection (2), for “promoter” substitute “person who provided the information”.
Section 313 (duty of parties to notifiable arrangements to notify Board of number etc) is amended as follows. For the heading substitute “Duty of parties to notify HMRC of reference number etc”. In subsection (1), omit “notifiable”. In subsection (2), for “any notifiable arrangements” substitute “arrangements of any description”. In subsection (5), omit “notifiable”.
Section 313ZA (duty to provide details of clients) is amended as follows. In subsection (1), for paragraphs (a) and (b) substitute—. After subsection (1) insert— Omit subsection (2). In subsection (3), after “promoter” insert “or (as the case may be) provider”. For subsection (4) substitute— After subsection (5) insert—
Section 313ZB (enquiry following disclosure of client details) is amended as follows. In subsection (1), for paragraph (a) substitute—. In subsection (2), for “promoter”, in both places, substitute “service provider”. In subsection (3), for “promoter” substitute “service provider”.
Section 313ZC (duty of employer to notify HMRC of details of employees etc) is amended as follows. For subsection (2) substitute— In subsection (3), after “312(2)” insert “or 312ZA(2)”. In subsection (4), omit “notifiable”, in both places. In subsection (6)—
In section 316 (information to be provided in form and manner specified by HMRC), in subsection (2)—
after “310C,” insert “311C,”;
after “312(2),” insert “312ZA(2),”.
In section 316A (duty to provide additional information), in subsections (1) and (2), after “312(2)” insert “, 312ZA(2)”.
Section 316C (publication by HMRC) is amended as follows. For subsection (1) substitute— In subsection (2)— In subsection (4), omit “notifiable”. After subsection (4) insert— In subsection (5)— In subsection (6), for “a promoter within subsection (1)(b)” substitute “a person within subsection (1)(b) or (c)”. After subsection (6) insert—
In section 316D (section 316C: subsequent judicial rulings), in subsection (1)(a), omit “notifiable”, in both places.
In section 318(1) (interpretation of Part 7), for the definition of “reference number” substitute—.
Schedule 17 to F(No.2)A 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes) is amended as follows.
Before Part 1 insert—
In paragraph 10(1) (meaning of “makes a firm approach”), omit “notifiable”.
After paragraph 21 insert—
For paragraph 22 (and the italic heading before it) substitute—
In the italic heading before paragraph 23, at the end insert “: paragraph 22(2) case”.
Paragraph 23 (duty of promoter to notify client of reference number) is amended as follows. In sub-paragraph (2)—
After paragraph 23 insert—
Paragraph 24 (duty of client to notify parties of reference number) is amended as follows. In sub-paragraph (1)— Sub-paragraph (3) applies where— In sub-paragraph (4)(a), for “notifiable arrangements or proposed notifiable arrangements” substitute “the arrangements or proposed arrangements”. In sub-paragraph (4)(b), for “by the promoter under paragraph 23” substitute “under paragraph 23 or (as the case may be) paragraph 23A”. In sub-paragraph (5), for “notifiable arrangements or a notifiable proposal” substitute “arrangements or a proposal”.
In the italic heading before paragraph 25, omit “to promoter”.
Paragraph 25 (duty of client to provide information to promoter) is amended as follows. This paragraph applies where a person (“the client”) has been provided with information under paragraph 23(2) or 23A(2) (prescribed information about reference number). In sub-paragraph (2), for “promoter” substitute “person who provided the information”.
For the italic heading before paragraph 26 substitute “Duty of parties to notify HMRC of reference number etc”.
Paragraph 26 (duty of parties to notifiable arrangements to notify HMRC of number etc) is amended as follows. In sub-paragraph (1), omit “notifiable”. In sub-paragraph (1)(a), after “23” insert “, 23A”. In sub-paragraph (2), for “any notifiable arrangements” substitute “arrangements of any description”. In sub-paragraph (5), omit “notifiable”.
In the italic heading before paragraph 27 omit “of promoter”.
Paragraph 27 (duty of promoter to provide details of clients) is amended as follows. In sub-paragraph (1), for paragraphs (a) and (b) substitute— This paragraph also applies where— Omit sub-paragraph (2). In sub-paragraph (3), after “promoter” insert “or (as the case may be) provider”. In sub-paragraph (3) “the relevant period” means— The provider need not comply with sub-paragraph (3) in relation to any arrangements at any time after HMRC have given notice under paragraph 23A(4) in relation to the arrangements.
Paragraph 28 (enquiry following disclosure of client details) is amended as follows. In sub-paragraph (1), for paragraph (a) substitute—. In sub-paragraph (2), for “promoter”, in both places, substitute “service provider”. In sub-paragraph (3), for “promoter” substitute “service provider”. In sub-paragraph (4) for “promoter” substitute “service provider”.
In paragraph 33 (duty to provide additional information), in sub-paragraphs (1) and (2), after “23(2)” insert “, 23A(2)”.
In paragraph 34 (information to be provided in form and manner specified by HMRC), in sub-paragraph (2)—
after “21(3),” insert “22C,”;
after “23(2),” insert “23A(2),”.
Paragraph 36 (publication by HMRC) is amended as follows. HMRC may publish information about— In sub-paragraph (2)— In sub-paragraph (4), omit “notifiable”. No information may be published under this paragraph in respect of a person involved in the supply of arrangements or proposed arrangements where there are reasonable grounds for believing that the person’s involvement is limited to activities subject to legal professional privilege. In sub-paragraph (5)— In sub-paragraph (6), for “a promoter within sub-paragraph (1)(b)” substitute “a person within sub-paragraph (1)(b) or (c)”. Where the reference number is allocated in a case within paragraph 22(3)— In determining a period of one year for the purposes of sub-paragraph (7)(a) or (b), no account is to be taken of any period during which HMRC are prohibited from publishing the information because of proceedings before a court or tribunal.
In paragraph 37 (paragraph 36: subsequent judicial rulings), in sub-paragraph (1)(a), omit “notifiable”, in both places.
Paragraph 39 (penalty for failure to comply with duties under Part 1 of Schedule) is amended as follows. In sub-paragraph (1)(a)(i), for “or 19” substitute “, 19 or 22C”. In sub-paragraph (2)— A failure to comply with paragraph 22C The first day after the end of the period before the end of which the person must comply with paragraph 22C
In paragraph 40 (penalties: supplementary), in sub-paragraph (2), after paragraph (a) (but before the “and” immediately after it) insert—.
In paragraph 57(1) (interpretation of Schedule), for the definition of “reference number” substitute—.
Section 98C of TMA 1970 (notification under Part 7 of FA 2004: penalties) is amended as follows. In subsection (1)(a)(i), for “or (ca)” substitute “, (ca) or (cc)”. In subsection (2)— In subsection (2ZA)(b), at the beginning insert “(subject to subsection (2ZAB))”. A failure to comply with section 311C The first day after the end of the period before the end of which the person must comply with section 311C After subsection (2ZA) insert— In subsection (2ZB), after paragraph (a) (but before the “and” immediately after it) insert—.
Chapter 3 of Part 4 of FA 2014 (accelerated payment) is amended as follows. In section 219 (circumstances in which an accelerated payment notice may be given)— In section 227 (withdrawal, modification or suspension of accelerated payment notice), for subsection (5) substitute—
This Schedule comes into force on the day on which this Act is passed (“the commencement date”), subject to paragraphs 45 and 46.
Section 310D of FA 2004 (inserted by paragraph 4) applies only in relation to transactions entered into, firm approaches made, and proposals that are made available for implementation, on or after the commencement date. So far as applicable to a person who is not a promoter in relation to the arrangements or proposed arrangements, section 312ZA of FA 2004 (inserted by paragraph 7) applies only where a person is providing, or has provided, services to the client (within the meaning of that section) on or after the commencement date. Section 316C(1)(c) of FA 2004 (inserted by paragraph 16(2)) applies— Expressions used in this paragraph and Part 7 of FA 2004 have the same meaning in this paragraph as they have in that Part.
Paragraph 21A of Schedule 17 to F(No.2)A 2017 (inserted by paragraph 22) applies only in relation to transactions entered into, firm approaches made, and proposals that are made available for implementation, on or after the commencement date. So far as applicable to a person who is not a promoter in relation to the arrangements or proposed arrangements, paragraph 23A of Schedule 17 to F(No.2)A 2017 (inserted by paragraph 26) applies only where a person is providing, or has provided, services to the client (within the meaning of that paragraph) on or after the commencement date. Paragraph 36(1)(c) of Schedule 17 to F(No.2)A 2017 (inserted by paragraph 37(2)) applies— Expressions used in this paragraph and Schedule 17 to F(No.2)A 2017 have the same meaning in this paragraph as they have in that Schedule.
Section 124
After Schedule 43C of FA 2013 insert—
Part 5 of FA 2013 is amended as follows.
Section 209 (counteracting tax advantages) is amended as follows. In subsection (5), for “the person to whom the tax advantage would arise” substitute “anyone else”. After subsection (6) insert— For subsections (8) and (9) substitute— In subsection (10)(a), after “43” insert “or paragraph 5 of Schedule 43D.”
After section 209AB insert—
Section 209AC (sections 209AA and 209AB: definitions) is amended as follows. In the heading for “and 209AB” substitute “to 209ABA”. In subsection (1)— In subsection (2) for “and 209AB” substitute “to 209ABA”.
In section 210 (consequential relieving adjustments)—
in subsection (1)(b) omit “by the taxpayer”, and
for subsection (10) substitute—
In section 212A (penalty), in subsection (1)(c)(ii) for “paragraph (c)” substitute “paragraph (b)”.
After section 212A insert—
In section 214(1)—
in the entry for “notice of binding” after “43A” insert “or paragraph 10 of Schedule 43D (as the case may be)”,
in the entry for “pooling notice” for “paragraph 1(4) of Schedule 43A” insert “paragraph 1(3) of Schedule 43A or paragraph 10 of Schedule 43D (as the case may be);”, and
omit the entry for “tax appeal”.
Schedule 43 (general anti-abuse rule: procedural requirements) is amended as follows. Omit paragraph 1A. In paragraph 4A(3)(b) omit the words from the beginning to “that notice,”. In paragraph 4A(7)— In paragraph 13(1) omit “to the taxpayer”. After paragraph 13 insert—
Schedule 43A (procedural requirements: pooling notices and notices of binding) is amended as follows. In paragraph 1(1), after “43” insert “, or paragraph 5 of Schedule 43D,”. In paragraph 4(7), at the beginning insert “Where a tax enquiry is in progress,”. In paragraph 12(1), omit “to the person concerned”.
Schedule 43B (procedural requirements: generic referral of tax arrangements) is amended as follows. In paragraph 2(1)(a), after “43” insert “or paragraph 5 of Schedule 43D (as the case may be)”. In paragraph 3— In paragraph 9(1), omit “to the person concerned”.
Schedule 43C (penalty under section 212A: supplementary provision) is amended as follows. In the heading after “212A” insert “or 212B”. In paragraph 1, for “section 212A” substitute “sections 212A and 212B” In paragraph 2— In paragraph 3(1) omit “mentioned in section 212A(1)(b) (“the tax advantage”)”. In paragraph 4(1), after “212A” insert “or 212B (as the case may be)”. In paragraph 5— In paragraph 8— In paragraph 9— In paragraph 10(1), after section 212A insert “or 212B”.
Section 125
Section 128
Schedule 36 to FA 2008 (information and inspection powers) is amended as follows.