Finance (No. 2) Act 2017
Part 3 of ITEPA 2003 (employment income: earnings and benefits etc treated as earnings) is amended as follows.
In section 87 (cash equivalent of benefit of non-cash voucher)—
in subsection (2)(b), for “to the person incurring it” substitute “ , to the person incurring it, on or before 6 July following the relevant tax year ”, and
after subsection (2) insert—
In section 88(3) (time at which cheque voucher treated as handed over), at the beginning insert “ For the purposes of subsection (2) and sections 87(2B) and 87A(6), ”.
In section 94(2) (cash equivalent of benefit of credit-token), in paragraph (b), for the words from “employee” to the end substituteemployee—
In section 105(2) (cash equivalent of benefit of living accommodation costing £75,000 or less), in paragraph (b), after “made good” insert “ , on or before 6 July following the tax year which contains the taxable period, ”.
exceeds
In section 144 (deduction for payments for private use of car)—
in subsection (1)(b), for “in” substitute “ on or before 6 July following ”,
in subsection (2), after “paid” insert “ as mentioned in subsection (1)(b) ”, and
in subsection (3), after “paid” insert “ as mentioned in subsection (1)(b) ”.
In section 151(2) (when cash equivalent of benefit of car fuel is nil)—
in the words before paragraph (a) omit “in the tax year in question”,
in paragraph (a), at the beginning insert “ in the tax year in question, ”, and
in paragraph (b), at the end insert “ on or before 6 July following that tax year ”.
In section 152(2) (car fuel: proportionate reduction of cash equivalent)—
in the words before paragraph (a) omit “for any part of the tax year in question”,
in paragraph (a), at the beginning insert “ for any part of the tax year in question, ”,
in paragraph (b), at the beginning insert “ for any part of the tax year in question, ”, and
in paragraph (c)—
after “employee”, in the first place it occurs, insert— , and
for “and the employee does make good that expense” substitute, and .
In section 158 (reduction for payments for private use of van)—
in subsection (1)(b), for “in” substitute “ on or before 6 July following ”,
in subsection (2), after “paid” insert “ as mentioned in subsection (1)(b) ”, and
in subsection (3), after “paid” insert “ as mentioned in subsection (1)(b) ”.
In section 162(2) (when cash equivalent of benefit of van fuel is nil)—
in the words before paragraph (a) omit “in the tax year in question”,
in paragraph (a), at the beginning insert “ in the tax year in question, ”, and
in paragraph (b), at the end insert “ on or before 6 July following that tax year ”.
In section 163(3) (van fuel: proportionate reduction of cash equivalent)—
in the words before paragraph (a) omit “for any part of the tax year in question”,
in paragraph (a), at the beginning insert “ for any part of the tax year in question, ”,
in paragraph (b), at the beginning insert “ for any part of the tax year in question, ”, and
in paragraph (c)—
after “employee”, in the first place it occurs, insert— , and
for “and the employee does make good that expense” substitute, and .
In section 203(2) (cash equivalent of benefit treated as earnings), for “to the persons providing the benefit” substitute “ , to the persons providing the benefit, on or before 6 July following the tax year in which it is provided ”.
The amendments made by this section have effect for the purpose of calculating income tax charged for the tax year 2017-18 or any subsequent tax year.
ITEPA 2003 is amended as follows.
In section 139 (car with a CO2 emissions figure: the appropriate percentage), for subsections (1) to (6) substitute—
In section 140 (car without a CO2 emissions figure: the appropriate percentage)—
in subsection (2), in the table —
for “23%” substitute “ 24% ”, and
for “34%” substitute “ 35% ”;
in subsection (3)(a), for “16%” substitute “ 2% ”.
In section 142(2) (car first registered before 1 January 1998: the appropriate percentage), in the table—
for “23%” substitute “ 24% ”, and
for “34%” substitute “ 35% ”.
Omit subsection 170(3).
The amendments made by this section have effect for the tax year 2020-21 and subsequent tax years.
In Chapter 9 of Part 4 of ITEPA 2003, after section 308B insert—
In section 228 of ITEPA 2003 (effect of exemptions on liability under provisions outside Part 2 of ITEPA 2003), in subsection (2), after paragraph (da) insert—.
Regulation 5 of the Income Tax (Exemption of Minor Benefits) Regulations 2002 (S.I. 2002/205) (exemption in respect of the provision of pensions advice) is revoked.
In regulation 2 of the Income Tax (Exemption of Minor Benefits) (Amendment) Regulations 2004 (S.I. 2004/3087) omit the inserted regulation 5.
The amendments made by this section have effect for the tax year 2017-18 and subsequent tax years.
ITEPA 2003 is amended as follows.
In section 346 (deduction for employee liabilities)—
in the heading, at the end insert “ and expenses ”,
after paragraph B (in subsection (1)) insert—,
in paragraph C(b) (in subsection (1)), after “B” insert “ , BA or BB ”,
in subsection (2) for “or B” substitute “ B, BA or BB ”,
in subsection (2A), for “paragraph A, B or C” substitute “ any of paragraphs A to C ”, and
after subsection (3) insert—
In section 349 (section 346: meaning of “qualifying insurance contract”), in subsection (2)—
after paragraph (c) insert—, and
in subsection (2)(d), after “(c)” insert “ , (ca) or (cb) ”.
In section 409 (payments and benefits on termination of employment etc: exception for payments and benefits in respect of employee liabilities and indemnity insurance)—
in the heading, for “employee liabilities” substitute “ certain legal expenses etc ”, and
in subsection (3), at the end insert “ or by the employer or former employer on behalf of the individual ”.
In section 410 (payments and benefits on termination of employment etc: exception for certain payments and benefits received by personal representatives of deceased individual)—
in the heading for “employee liabilities” substitute “ certain legal expenses etc ”, and
in subsection (3), at the end insert “ or by the former employer on behalf of the individual's personal representatives ”.
In section 558 (deductions for liabilities of former employees: meaning of “deductible payment”)—
after paragraph B (in subsection (1)) insert—, and
in paragraph C(b) (in subsection (1)), after “B” insert “ , BA or BB ”,
in subsection (2), for “or B” substitute “ B, BA or BB ”,
after subsection (3) insert—
In section 560 (section 558: meaning of “qualifying insurance contract”), in subsection (2)—
after paragraph (c) insert—, and
in paragraph (d), after “(c)” insert “ , (ca) or (cb) ”.
The amendments made by this section have effect in relation to the tax year 2017-18 and subsequent tax years.
ITEPA 2003 is amended in accordance with subsections (2) to (9).
In section 7(5) (list of provisions under which amounts are treated as earnings), before the “or” at the end of paragraph (c) insert—.
Before section 403 (charge on payments and benefits in excess of £30,000 threshold) insert—
In section 403 (charges on payments and benefits which can benefit from threshold)—
in subsection (1), for “Chapter” substitute “ section ”,
in subsection (3), after “Chapter” insert “ (but see section 402B(3)) ”,
it exceeds
in subsection (5)(a), for “Chapter” substitute “ section ”,
in subsection (6), after “employment income” insert “ or, as the case may be, in relation to whom section 402B(1) provides for an amount to be treated as an amount of earnings ”, and
in the heading, at the end insert “ where threshold applies ”.
In section 404 (how the threshold applies)—
in subsection (3)(b) (meaning of “termination or change date”), for “this Chapter” substitute “ section 403 ”, and
after subsection (5) insert—
After section 404A insert—
In section 406 (exception in cases of death, injury or disability)—
the existing text becomes subsection (1), and
after that subsection insert—
In section 414(2) (proportionate reduction for foreign service in certain cases), for “otherwise count as employment income under this Chapter” substituteotherwise— .
In section 717(4) (regulations etc not subject to negative procedure), before “or section 681F(3)” insert “ , section 402D(10) (meaning of basic pay for purpose of calculating charge on termination award), section 404B(4) (reduction of tax-free threshold for employment-termination etc payments) ”.
The amendments made by this section have effect for the tax year 2018-19 and subsequent tax years.
In Chapter 5 of Part 11 of ITEPA 2003 (PAYE settlement agreements), in sections 703(a) and 704(1)(a), for “an officer of Revenue and Customs” substitute “ Her Majesty's Revenue and Customs ”.
The amendment made by this section has effect in relation to the tax year 2018-19 and subsequent tax years.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part 4 of FA 2004 is amended as follows.
In section 227ZA (chargeable amount), in subsection (1)(b), for “£10,000” substitute “£4,000”.
In section 227B (alternative chargeable amount), in subsections (1)(b) and (2), for “£10,000” substitute “£4,000”.
In section 227D (pension input amounts in respect of certain hybrid arrangements), in Steps 4 and 5 of subsection (4), for “£10,000” substitute “£4,000”.
The amendments made by this section have effect for the tax year 2017-18 and subsequent tax years.
In section 13A of ITA 2007 (income charged at the dividend nil rate), for “£5000”, in each place, substitute “ £2000 ”.
The amendments made by this section have effect for the tax year 2018-19 and subsequent tax years.
ITTOIA 2005 is amended as follows.
After section 507 (method for making periodic calculations in part surrender or assignment cases) insert—
After section 512 (available premium left for relevant transaction in certain part surrender or assignment cases) insert—
In section 538 (recovery of tax from trustees), after subsection (6) insert—
The amendments made by subsection (4) have effect in relation to amounts recovered before, as well as after, the day on which this Act is passed.
In section 520 of ITTOIA 2005 (property categories), after subsection (4) insert—
ITA 2007 is amended as follows.
In section 177 (EIS: the no pre-arranged exits requirement), for subsection (2) substitute—
In section 257CD (SEIS: the no pre-arranged exits requirement), for subsection (2) substitute—
The amendments made by this section have effect in relation to shares issued on or after 5 December 2016.
ITA 2007 is amended as follows.
In section 326 (restructuring to which sections 326A and 327 apply)—
in the heading to section 326, for “section 327 applies” substitute “ sections 326A, 327 and 327A apply ”;
in subsection (1), for “Sections 326A and 327 apply” substitute “ Sections 326A, 327 and 327A apply ”.
After section 327 insert—
The amendments made by this section have effect—
for the purposes of section 280C of ITA 2007, in relation to investments made on or after 6 April 2017;
for the purposes of section 294A of ITA 2007, in relation to relevant holdings issued on or after 6 April 2017.
Section 330 of ITA 2007 (power to facilitate company reorganisations etc involving exchange of shares) is amended as follows.
After subsection (1) insert—
In subsection (2), for “subsection (1)” substitute “ subsections (1) and (1A) ”.
In subsection (3), for “The regulations” substitute “ Regulations under subsection (1) ”.
After subsection (3) insert—
In subsection (4), for “The regulations” substitute “ Regulations under this section ”.
In subsection (6). in paragraph (c), at the beginning insert “ in the case of regulations under subsection (1) ”.
Schedule 1 makes provision about income tax relief for social investments.
Chapter A1 of Part 14 of ITA 2007 (remittance basis) is amended as follows.
In section 809VC (qualifying investments), in subsection (1)(a), after “issued to” insert “ or acquired by ”.
In section 809VD (condition relating to qualifying investments)—
in subsection (1), omit the “or” at the end of paragraph (b) and after that paragraph insert—;
in subsection (2)(b), for “2” substitute “ 5 ”;
in subsection (3)(c), for “2” substitute “ 5 ”;
after subsection (3) insert—;
in subsection (4), for “reference in subsection (3)” substitute “ references in subsections (3) and (3A) ”;
in subsection (5)(a), for “2” substitute “ 5 ”.
In section 809VE (commercial trades), after subsection (5) insert—
In section 809VH (meaning of “potentially chargeable event”)—
in subsection (1)(a), after “eligible stakeholder company” insert “ nor an eligible hybrid company ”;
in subsection (1)(d), for “2-year” substitute “ 5-year ”;
in subsection (2), for paragraph (b) substitute—;
omit subsection (4);
in subsection (5)—
for “2-year” substitute “ 5-year ”;
in paragraph (a), for “2” substitute “ 5 ”;
in subsection (6), omit the “or” at the end of paragraph (b) and after that paragraph insert—;
in subsection (10)(b), after “eligible stakeholder company” insert “ or an eligible hybrid company ”.
In section 809VJ (grace period), after subsection (2) insert—
In section 809VN (order of disposals etc), in subsections (1)(c) and (5)(a) and (b), after “eligible stakeholder company” insert “ or eligible hybrid company ”.
The amendments made by this section have effect where the relevant event as defined in section 809VA of ITA 2007 occurs on or after 6 April 2017.
Schedule 2 contains provision about the calculation of the profits of a trade, profession or vocation or a property business, in particular the calculation of profits on the cash basis.
Schedule 3 contains provision about a trading allowance and a property allowance giving relief from income tax.
Schedule 4 makes provision about corporation tax relief for losses and other amounts that are carried forward.
The Commissioners for Her Majesty's Revenue and Customs may by regulations made by statutory instrument make provision consequential on any provision made by Schedule 4.
Regulations under subsection (2)—
may make provision amending or modifying any provision of the Taxes Acts (including any provision inserted by Schedule 4),
may make incidental, supplemental, transitional, transitory or saving provision, and
may make different provision for different purposes.
A statutory instrument containing regulations under subsection (2) is subject to annulment in pursuance of a resolution of the House of Commons.
In this section “the Taxes Acts” has the same meaning as in the Taxes Management Act 1970 (see section 118(1) of that Act).
Any loss-related tax advantage that would (in the absence of this section) arise from relevant tax arrangements is to be counteracted by the making of such adjustments as are just and reasonable.
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,
For the purposes of this section arrangements are “relevant tax arrangements” if conditions A and B are met.
Condition A is that the purpose, or one of the main purposes, of the arrangements is to obtain a loss-related tax advantage.
Condition B is that it is reasonable to regard the arrangements as circumventing the intended limits of relief under the relevant provisions or otherwise exploiting shortcomings in the relevant provisions.
In determining whether or not condition B is met all the relevant circumstances are to be taken into account, including whether the arrangements include any steps that—
are contrived or abnormal, or
lack a genuine commercial purpose.
In this section “loss-related tax advantage” means a tax advantage as a result of a deduction (or increased deduction) under a provision mentioned in subsection (8).
The provisions are—
sections 457, 459, 461, 462, 463B, 463G and 463H of CTA 2009 (non-trading deficits from loan relationships);
section 2A(1) of TCGA 1992 (allowable capital losses);
section 753 of CTA 2009 (non-trading losses on intangible fixed assets);
section 1219 of CTA 2009 (management expenses etc);
sections 37, 45, 45A, 45B and 45F of CTA 2010 (deductions in respect of trade losses);
section 62(3) of CTA 2010 (losses of a UK property business);
Part 5 of CTA 2010 (group relief);
Part 5A of CTA 2010 (group relief for carried-forward losses);
sections 303B, 303C and 303D of CTA 2010 (non-decommissioning losses of ring-fence trades);
sections 124A, 124B and 124C of FA 2012 (carried-forward BLAGAB trade losses).
In this section—
“GAAP accounts” means accounts drawn up in accordance with generally accepted accounting practice,
Section 14
“participant”, in relation to such a scheme, is to be read in accordance with section 235 of that Act.
ITA 2007 is amended as follows.
After section 257LE insert—
After section 257MI insert—
TCGA 1992 is amended as follows.
“Museums and galleries exhibition tax relief Part 15E of CTA 2009
The liable person in relation to a qualifying loan may make an application to the Commissioners for Her Majesty’s Revenue and Customs for approval of the loan. An officer of Revenue and Customs may grant such an application if satisfied that, in relation to the loan— Subject to sub-paragraph (4), an application may be made in 2018. An application may be made after 2018 if an officer of Revenue and Customs considers it is reasonable in all the circumstances for the liable person to make a late application. An application for an approval must be made in such form and manner, and contain such information, as may be specified by, or on behalf of, the Commissioners for Her Majesty’s Revenue and Customs. An officer of Revenue and Customs must notify the applicant of the decision on an application. Where on an application under this paragraph a loan is approved, the approval may be revoked by an officer of Revenue and Customs if the officer considers that— Where approval is revoked under sub-paragraph (7), approval is to be treated as having been refused at the outset. In this paragraph “liable person”, in relation to a loan, means the person who is liable for any tax on the value of the relevant step in relation to the loan under paragraph 1.
Paragraph 24(1) applies where— In sub-paragraph (1)(b), “relevant charge” means a charge to tax arising by reason of a step taken pursuant to the relevant arrangement concerned. The reference in sub-paragraph (2) to the relevant arrangement concerned is a reference to the relevant arrangement in pursuance of which, or in connection with which, the loan or quasi-loan mentioned in sub-paragraph (1)(a) is made. In sub-paragraph (1)(d) and (e), “the relevant date” means— In sub-paragraphs (1)(c) and (2)— and for those purposes “relevant contributions” has the same meaning as in Schedule 2 to the National Insurance Contributions Act 2015 (application of Part 4 of FA 2014 to national insurance contributions). If more than one notice relating to a particular relevant charge has been given—
In this Schedule “loan” includes— For the purposes of paragraph 1, a person (“P”) makes a “quasi-loan” to T if (and when) P acquires a right (the “acquired debt”)— The condition is met in relation to a right if there is a connection (direct or indirect) between the acquisition of the right and— Where a loan or a quasi-loan made to T is replaced, directly or indirectly, by another loan (the “replacement loan”), references in paragraph 1 to the loan are references to the replacement loan. Where a loan or a quasi-loan made to T is replaced, directly or indirectly, by another quasi-loan (the “replacement quasi-loan”), references in paragraph 1 to the quasi-loan are references to the replacement quasi-loan. In this Schedule, “approved repayment date”, in relation to an approved fixed term loan, means the date by which, under the terms of the loan at the time of making the application for approval under paragraph 16, the whole of the loan must be repaid. In this paragraph and in paragraphs 3, 9, 10, 19 and 20—
This paragraph applies in relation to the quasi-loan if— But this paragraph does not apply if paragraph 14 applies in relation to the quasi-loan. For the purposes of calculating the repayment amount in relation to the quasi-loan, the amount of each of the payments referred to in sub-paragraph (1)(b) is an amount equal to its value in the quasi-loan currency on the date it is made.
A person may make an application to the Commissioners for Her Majesty’s Revenue and Customs for approval of a qualifying loan made to T. An officer of Revenue and Customs may grant such an application if satisfied that, in relation to the loan— Subject to sub-paragraph (4), an application may be made in 2018. An application may be made after 2018 if an officer of Revenue and Customs considers it reasonable in all the circumstances for a late application to be made. An application for an approval must be made in such form and manner, and contain such information, as may be specified by, or on behalf of, the Commissioners for Her Majesty’s Revenue and Customs. An officer of Revenue and Customs must notify the applicant of the decision on an application.
Paragraph 20(1) applies where— In sub-paragraph (1)(c), “relevant charge” means a charge to tax under section 23E of ITTOIA 2005 arising by reason of a relevant benefit which arises to T in pursuance of the relevant arrangement in pursuance of which the relevant benefit mentioned in sub-paragraph (1)(a) and (b) arises. In sub-paragraph (1)(e) and (f), “the relevant date” means—
Any power of the Treasury or the Commissioners to make regulations under this Schedule is exercisable by statutory instrument. Regulations made under any such power may make different provision for different cases and may contain transitional provisions and savings. A statutory instrument containing regulations made by the Treasury under paragraph 2(2) or 42(1) may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons. Any other statutory instrument containing regulations made under this Schedule, if made without a draft having been approved by a resolution of the House of Commons, is subject to annulment in pursuance of a resolution of the House of Commons.
Paragraphs 3 to 13 have effect for the purposes of this Schedule.
“Tax non-compliance” means any of the following— In sub-paragraph (1)— The documents relevant for the purposes of both of paragraphs (b) and (c) of sub-paragraph (1) are (so far as they relate to the tax or taxes shown in the first column)— Tax to which document relates Document Income tax or capital gains tax Return, accounts, statement or document required under section 8(1) of TMA 1970 (personal return) Income tax or capital gains tax Return, accounts, statement or document required under section 8A(1) of TMA 1970 (trustee’s return) Income tax Return, accounts, statement or document required under section 12AA(2) or (3) of TMA 1970 (partnership return) Income tax Return under section 254 of FA 2004 (pension schemes) Income tax Particulars or documents required under regulation 12 of the Retirement Benefits Schemes (Information Powers) Regulations 1995 (SI 1995/3101) (information relating to pension schemes) Capital gains tax NRCGT return under section 12ZB of TMA 1970 Inheritance tax Account under section 216 or 217 of IHTA 1984. The documents relevant for the purposes only of paragraph (c) of sub-paragraph (1) are (so far as they relate to the tax or taxes shown in the first column)— Tax to which document relates Document Income tax or capital gains tax Return, statement or declaration in connection with a claim for an allowance, deduction or relief Income tax or capital gains tax Accounts in connection with ascertaining liability to tax Income tax or capital gains tax Statement or declaration in connection with a partnership return Income tax or capital gains tax Accounts in connection with a partnership return Inheritance tax Information or document under regulations under section 256 of IHTA 1984 Inheritance tax Statement or declaration in connection with a deduction, exemption or relief. Income tax, capital gains tax or inheritance tax Any other document given to HMRC by a person (“P”) which is likely to be relied on by HMRC to determine, without further inquiry, a question about— P’s liability to tax; payments by P by way of or in connection with tax; any other payment by P (including penalties); repayments, or any other kind of payment or credit, to P.
This paragraph sets out how offshore tax non-compliance may be corrected. References to the correction of offshore tax non-compliance of any description are to the taking of any action specified in this paragraph as a means of correcting offshore tax non-compliance of that description. Offshore tax non-compliance consisting of a failure to notify chargeability may be corrected by— In sub-paragraph (3) “relevant information” means information relating to offshore tax that— Offshore tax non-compliance consisting of a failure to make or deliver a return or other document may be corrected by giving HMRC the relevant information by— In subsection (5) “relevant information” means information relating to offshore tax that— Offshore tax non-compliance consisting of making and delivering a return or other document containing an inaccuracy may be corrected by giving HMRC the relevant information by— In sub-paragraph (7) “relevant information” means information relating to offshore tax that— In this paragraph “offshore tax”, in relation to any offshore tax non-compliance, means tax corresponding to the offshore PLR in respect of the non-compliance.
Section 257SH (power to require information where reason to believe SI relief may not be due because of certain kinds of arrangements, etc) is amended as follows. In subsection (1) after “257LE,” insert “ 257LEA, ”. Section 257LEA The investor, the social enterprise, any person controlling the social enterprise and any person whom an officer of Revenue and Customs has reason to believe may be a party to the arrangements in question
In section 37 (consideration chargeable to tax on income), after subsection (1) insert—
The relevant person may make an application to the Commissioners for Her Majesty’s Revenue and Customs for P to be treated— The condition is that, on the withdrawal of the accelerated payment notice or on the determination of an appeal, any part of the accelerated payment is repaid. Subject to sub-paragraph (4), an application under sub-paragraph (1) may be made in 2018. An application may be made after 2018 if an officer of Revenue and Customs considers it is reasonable in all the circumstances for the relevant person to make a late application. An application must be made in such form and manner, and contain such information, as may be specified by, or on behalf of, the Commissioners for Her Majesty’s Revenue and Customs. An officer of Revenue and Customs must notify the applicant of the decision on an application under this paragraph. A favourable decision on an application under this paragraph may be revoked by an officer of Revenue and Customs if the officer considers that— Where the decision on an application is revoked under sub-paragraph (7), the application is to be treated as having been refused at the outset.
T may make an application to the Commissioners for Her Majesty’s Revenue and Customs to be treated— The condition is that, on the withdrawal of the accelerated payment notice or on the determination of an appeal, any part of the accelerated payment is repaid. Subject to sub-paragraph (4), an application under sub-paragraph (1) may be made in 2018. An application may be made after 2018 if an officer of Revenue and Customs considers it reasonable in all the circumstances for a late application to be made. An application must be made in such form and manner, and contain such information, as may be specified by, or on behalf of, the Commissioners for Her Majesty’s Revenue and Customs. An officer of Revenue and Customs must notify the applicant of the decision on an application under this paragraph.
Section 41 (restriction of losses by reference to capital allowances etc) is amended as follows. In subsection (4), after paragraph (a) insert—. After subsection (6) insert— In subsection (7), after “Capital Allowances Act,” insert “ and subsection (6A) does not apply, ”. After subsection (8) insert—
Section 47A (exemption for disposals by persons using cash basis) is amended as follows. For the heading substitute “ Exemption for certain disposals under, or after leaving, cash basis ”. In subsection (1), for “A to D” substitute “ A, B and D ”. For subsection (2) substitute— In subsection (3), for “or vocation” substitute “ , vocation or property business ”. Omit subsection (4). For subsection (5) substitute— For subsection (6) substitute— In subsection (7)— After subsection (7) insert—
Section 47B (disposals made by persons after leaving cash basis) is omitted.
ITA 2007 is amended as follows. In section 178A (EIS: the no disqualifying arrangements requirement), in subsection (6), in the definition of “relevant tax relief” after paragraph (b) insert—. In section 257CF (SEIS: the no disqualifying arrangements requirement), in subsection (6), in the definition of “relevant tax relief” after paragraph (b) insert—. In section 299A (VCTs: the no disqualifying arrangements requirement), in subsection (6), in the definition of “relevant tax relief” after paragraph (c) insert—.
In Schedule 6 to FA 2015 (investment reliefs: excluded activities) omit paragraph 13 (which is superseded by paragraph 10 of this Schedule).
Relief granted to investors in a social enterprise Part 5B of ITA 2007 The social enterprise
The amendments made by paragraphs 3 and 6 to 9 have effect in relation to investments made on or after 6 April 2017. Nothing in sub-paragraph (1) prevents investments made before 6 April 2017 from constituting “relevant investments” for any purpose of section 257MNA, 257MNB, 257MNC or 257MND of ITA 2007. Subject to sub-paragraph (4), the amendments made by paragraphs 4 and 5 have effect in relation to investments made on or after 6 April 2017. Arrangements which include any transaction entered into before 6 April 2017 are not “disqualifying arrangements” for the purposes of section 257LEA of ITA 2007.
The amendments made by paragraph 10—
so far as they apply for the purposes of section 257JD of ITA 2007, come into force on 6 April 2017;
so far as they apply for the purposes of sections 257MJ and 257MP of ITA 2007, have effect in relation to investments made on or after 6 April 2017.
Subject to sub-paragraph (3), the amendments made by paragraph 11(2) and (3) have effect in relation to shares issued on or after 6 April 2017. Subject to sub-paragraph (3), the amendment made by paragraph 11(4) has effect for the purpose of determining whether shares or securities issued on or after 6 April 2017 are to be regarded as comprised in a company's qualifying holdings. The amendments made by paragraph 11 do not have effect for the purposes of determining any question whether particular arrangements which include any transaction entered into before 6 April 2017 are “disqualifying arrangements” for the purposes of section 178A, 257CF or 299A of ITA 2007.
Section 16
ITTOIA 2005 is amended as follows.
For section 33A (cash basis: capital expenditure) substitute—
In section 95A (application of Chapter 6 of Part 2 (trade profits: receipts) to the cash basis)—
the existing text becomes subsection (1),
in that subsection, omit the entry relating to section 96A, and
after that subsection insert—
Section 96A (cash basis: capital receipts) is amended as follows. For the heading substitute “ Capital receipts under, or after leaving, cash basis ”. For subsections (1) to (3) substitute— Omit subsection (7).
After section 96A insert—
In section 106D (capital receipts), for “(cash basis: capital receipts)” substitute “ (capital receipts under, or after leaving, cash basis) ”.
Section 240C (unrelieved qualifying expenditure) is amended as follows. For the heading substitute “ Unrelieved qualifying expenditure: Parts 2, 7 and 8 of CAA 2001 ”. In subsection (1)(b), after “unrelieved qualifying expenditure” insert “ relating to the trade ”. In subsection (3), for “the relevant portion of the expenditure” substitute “ any cash basis deductible amount of the expenditure ”. For subsection (4) substitute— In subsection (5), for “The relevant portion” substitute “ Any cash basis deductible amount ”. After subsection (5) insert— For subsection (6) substitute—
After section 240C insert—
Section 240D (assets not fully paid for) is amended as follows. In subsection (1)(b), for “obtained” to the end substitute “ incurred relevant expenditure, and ”. After subsection (1) insert— In subsection (4), for “The amount of any capital allowance obtained in respect of expenditure on the provision of any plant or machinery” substitute “ Any question as to whether or to what extent expenditure is relevant expenditure, or as to whether or to what extent any capital allowance obtained is in respect of relevant expenditure, ”. In subsection (5), after “given” insert “ under Part 2 of CAA 2001 ”. Omit subsection (6).
In section 786(6) (meaning of “rent-a-room receipts”), for “(capital receipts)” substitute “ (capital receipts under, or after leaving, cash basis) ”.
In section 805(5) (meaning of “qualifying care receipts”), for “(capital receipts)” substitute “ (capital receipts under, or after leaving, cash basis) ”.
ITTOIA 2005 is amended as follows.
In Chapter 3 of Part 3 (profits of property businesses: basic rules), after section 271 insert—
In the italic heading before section 272, at the end insert “ : application of trading income rules ”.
After that italic heading insert—
Section 272 (profits of a property business: application of trading income rules) is amended as follows. For the heading substitute “ Application of trading income rules: GAAP ”. Omit subsection (1). In subsection (2), for the words before the table substitute “ In relation to a property business whose profits are calculated in accordance with GAAP, the provisions of Part 2 (trading income) which apply as a result of section 271E(1) are limited to the following— ”. In the table in subsection (2), omit the entry relating to section 25 (generally accepted accounting practice).
After section 272 insert—
After section 272ZA insert— “ Calculation of profits: other general rules ”.
In section 272A (restricting deductions for finance costs related to residential property), after subsection (6) insert—
Section 274 (relationship between rules prohibiting and allowing deductions) is amended as follows. For subsection (1)(b) substitute— In subsection (3)— In subsection (4), after “section 272” insert “ or 272ZA ”.
In section 276(5) (introduction: profits of property businesses: lease premiums etc), after “292” insert “ ; but see also section 276A ”.
After section 276 insert—
In Chapter 5 of Part 3 (profits of property businesses: other rules about receipts and deductions), after the Chapter heading insert—
In section 311A (replacement domestic items relief), in subsection (15)—
“the capital expenditure rule” means—
in the definition of “the wholly and exclusively rule”—
omit “the rule in”, and
after “section 272” insert “ or 272ZA ”.
In section 315 (deduction for expenditure on sea walls), after subsection (6) insert—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
After section 329 insert—
In section 331 (income charged)—
the existing text becomes subsection (1), and
after that subsection insert—
After section 334 insert—
In section 351 (income charged), after subsection (2) insert—
In section 353 (basic meaning of “post-cessation receipt”), after subsection (1) insert—
In section 356 (application to businesses within the charge to corporation tax), in subsection (1), for “section 355” substitute “ sections 353(1A) and 355, and in the modification of section 254 in section 351(3) ”.
In section 786 (meaning of “rent-a-room receipts”), after subsection (6) insert—
In section 860 (adjustment income), in subsection (5), after “Chapter 17 of Part 2” insert “ , or under section 239B as applied to property businesses by section 334A, ”.
In section 866 (employee benefit contributions: non-trades and non-property businesses), in subsection (7)(b), for “section 272” substitute “ sections 272 and 272ZA ”.
In section 867 (business entertainment and gifts: non-trades and non-property businesses), in subsection (7)(b), for “section 272” substitute “ sections 272 and 272ZA ”.
In section 868 (social security contributions: non-trades etc), in subsection (6)(b), for “section 272” insert “ sections 272 and 272ZA ”.
In section 869 (penalties, interest and VAT surcharges: non-trades etc), in subsection (6)(b), for “section 272” substitute “ sections 272 and 272ZA ”.
In section 870 (crime-related payments: non-trades and non-property businesses), in subsection (4)(b), for “section 272” substitute “ sections 272 and 272ZA ”.
In section 872 (losses calculated on same basis as miscellaneous income), in subsection (4)(b), for “section 272” substitute “ sections 272 and 272ZA ”.
the cash basis (in Part 3) section 271D in accordance with GAAP (in Part 3) section 271B
In section 42 of TMA 1970 (procedure for making claims etc), in subsection (7)(e), after “194” insert “ , 271A(10) ”.
The amendments made by Parts 1 to 9 and 11 of this Schedule have effect in relation to accounting periods beginning on or after 1 April 2017. For the purposes of those amendments, where a company has an accounting period beginning before 1 April 2017 and ending on or after that date (“the straddling period”)— But sub-paragraph (2)(b) is to be ignored if paragraph 191 or 192 applies.
An amount of a quasi-loan is outstanding for the purposes of paragraph 1 if the initial debt amount exceeds the repayment amount. In sub-paragraph (1) “initial debt amount”, in relation to a quasi-loan, means the total of— For the purposes of sub-paragraph (2)— In sub-paragraph (1) “repayment amount”, in relation to a quasi-loan, means the total of—
Paragraph 18 applies in relation to the quasi-loan if— The “quasi-loan period”, in relation to a quasi-loan, is the period—
Chapter 2 of Part 7A of ITEPA 2003 does not apply by reason of a relevant step within paragraph 1 which is treated as being taken by a person (“P”) if— Subsections (2) to (5) of section 554OA of ITEPA 2003 (section 180 threshold) apply for the purposes of this paragraph as they apply for the purposes of that section. In this paragraph, “employment-related loan” has the same meaning as it has for the purposes of Chapter 7 of Part 3.
FA 2014 is amended as follows.
This paragraph applies if— The amount concerned is to be apportioned as follows— Step 1 Determine what the amount concerned would have been but for Part 10 of TIOPA 2010 (“the notional amount”). Step 2 Determine what amount of the notional amount would have been apportioned to the first separate accounting period had paragraph 190(2)(b) applied (“the notional apportioned amount”). If the notional apportioned amount is less than the amount concerned, proceed with steps 3 and 4. If the notional apportioned amount is equal to or greater than the amount concerned, the whole of the amount concerned is to be apportioned to the first separate accounting period. Step 3 Take so much of the amount concerned as is equal to the notional apportioned amount and apportion it to the first accounting period. Step 4 Take the remainder of the amount concerned and apportion it to the second separate accounting period.
A payment or transfer is to be disregarded for the purposes of paragraph 11(4)(b) or (c) if— But a payment or transfer is not to be disregarded under sub-paragraph (1)(b) if, by the end of 5 April 2019, each relevant tax liability has been paid in full. For the purposes of this paragraph, each of the following is a “relevant tax liability”— Sub-paragraph (5) applies if a payment is disregarded under sub-paragraph (1)(b). The value of the relevant step treated as taken by paragraph 1 is not reduced under section 554Z5(3) of ITEPA 2003 (overlap with money or asset subject to earlier tax liability) by the amount of the sum, or the value of the asset, which is the subject of the relevant step mentioned in sub-paragraph (1)(b) unless the payment condition is met by reason of section 554Z5(4)(a) and (b)(ii) being met.
Where this paragraph applies in relation to the quasi-loan— The initial debt amount, in relation to the quasi-loan, is an amount equal to the total of— The “reference date”— The repayment amount, in relation to the quasi-loan, is an amount equal to the total of— The “sterling value” of a payment is its value in sterling on the date it is made.
In section 554OA of ITEPA 2003 (exclusions: transfer of employment-related loans), at the end insert—
In section 253(6)(c) (definition of “tax return”) after “section 12AA of” insert “, or regulations under paragraph 10 of Schedule A1 to,”.
This paragraph applies if— The whole of the amount concerned is apportioned to the second separate accounting period.
This paragraph applies where— The amount equal to the value of the right acquired by A or B is to be treated— For the purposes of sub-paragraph (2)— Where a loan or a quasi-loan made by P to a relevant person is replaced, directly or indirectly, by a quasi-loan or another quasi-loan (the “replacement quasi-loan”), references in sub-paragraphs (1) and (2) to the quasi-loan are references to the replacement quasi-loan.
Schedule 31 (follower notices and partnerships) is amended as follows. In paragraph 2 (interpretation)— In paragraph 3 (giving of follower notices in relation to partnership returns)— In paragraph 5 (calculation of penalty etc) in sub-paragraph (10)—
Schedule 32 (accelerated payments and partnerships) is amended as follows. In paragraph 1 (interpretation)— In paragraph 2(2) (restriction on circumstances when accelerated payment notices can be given) after “a successor of that partner” insert “(in relation to a section 12AA partnership return), or to the nominated partner of the partnership (in relation to a Schedule A1 partnership return)”. In paragraph 3(5)(a) (circumstances in which partner payment notices can be given) after “or a successor of that partner” insert “(in relation to a section 12AA partnership return), or the nominated partner (in relation to a Schedule A1 partnership return)”.
CAA 2001 is amended as follows.
TCGA 1992 is amended as follows.
The amendments made by paragraphs 19 to 38 have effect for the tax year 2017-18 and subsequent tax years.
In this Part of this Schedule “loan” includes— For the purposes of paragraph 1, P makes a “quasi-loan” to a relevant person if (and when) P acquires a right (the “acquired debt”)— The condition is met in relation to a right if there is a connection (direct or indirect) between the acquisition of the right and— Where a quasi-loan or a loan made by P to a relevant person is replaced, directly or indirectly, by a loan or another loan (the “replacement loan”), references in paragraph 1 to the loan are references to the replacement loan. Where a loan or a quasi-loan made by P to a relevant person is replaced, directly or indirectly, by a quasi-loan or another quasi-loan (the “replacement quasi-loan”), references in paragraph 1 to the quasi-loan are references to the replacement quasi-loan. In this Part of this Schedule, “approved repayment date”, in relation to an approved fixed term loan, means the date by which, under the terms of the loan at the time of making the application for approval under paragraph 20, the whole of the loan must be repaid.
This paragraph applies if— Chapter 2 does not apply by reason of a relevant step within paragraph 1 which is treated as being taken by a person if— In this paragraph— The definition of “authorised lender” must be read with—
Sub-paragraph (2) applies where— The effect of section 554Z2(2)(a) of ITEPA 2003 (value of relevant step to count as employment income: application of Part 7A instead of the benefits code) is that the loan is not be treated as a taxable cheap loan for the purposes of Chapter 7 of Part 3 of that Act for—
For the purposes of paragraph 7 a person is a “designer” of the arrangements if that person was, in the course of a business carried on by that person, to any extent responsible for the design of— but this is subject to sub-paragraph (2). Where a person would (in the absence of this sub-paragraph) fall within sub-paragraph (1) because of having provided advice which was used in the design of the arrangements or of a proposal, that person does not because of that advice fall within that sub-paragraph unless— Advice is “relevant advice” if— The knowledge condition is that, when the advice was provided, the person providing it knew or could reasonably be expected to know— For the purposes of sub-paragraph (3), advice is not to be taken to “suggest” anything— In sub-paragraph (3)— For the purposes of this paragraph—
For the purposes of paragraph 7 a person is “an enabling participant” in the arrangements if—
that person is a person (other than T) who enters into the arrangements or a transaction forming part of the arrangements,
without that person’s participation in the arrangements or transaction (or the participation of another person in the arrangements or transaction in the same capacity as that person), the arrangements could not be expected to result in a tax advantage for T, and
when that person entered into the arrangements or transaction, that person knew or could reasonably be expected to know that what was being entered into was abusive tax arrangements or a transaction forming part of such arrangements.
The Treasury may by regulations add to the categories of persons who, in relation to arrangements mentioned in paragraph 1, are for the purposes of this Schedule persons who enabled the arrangements. The Treasury may by regulations provide that a person who would otherwise be regarded for the purposes of this Schedule as having enabled arrangements is not to be so regarded where conditions prescribed by the regulations are met. Regulations under this paragraph may—
In its application for the purpose mentioned in paragraph 40(1) above, the Schedule has effect as if—
any provisions which can have no application for that purpose were omitted,
references to “the taxpayer” were references to the relevant person whose position as regards liability for a penalty under paragraph 1 is to be checked, and references to “a taxpayer” were references to a relevant person,
references to a person’s “tax position” were to the relevant person’s position as regards liability for a penalty under paragraph 1,
references to prejudice to the assessment or collection of tax included prejudice to the investigation of the relevant person’s position as regards liability for a penalty under paragraph 1, and
references to a pending appeal relating to tax were to a pending appeal relating to an assessment of liability for a penalty under paragraph 1.
In section 1 (capital allowances), omit subsections (4) and (5).
Section 16ZA (losses: non-UK domiciled individuals) is amended as follows. For subsections (1) to (3) substitute— After subsection (6) insert— The amendments made by this paragraph have effect in relation to the tax year 2017-18 and subsequent tax years. Where— sections 16ZB and 16ZC of that Act do not have effect in relation to the individual by virtue of that election for that tax year or any subsequent tax year. Section 835BA of ITA 2007 (deemed domicile) applies for the purposes of sub-paragraph (5).
In section 554O of ITEPA 2003 (exclusions: employee car ownership schemes), at the end insert—
In section 554Z2 of ITEPA 2003, at the end insert—
After section 1 insert—
In section 16ZB (election under section 16ZA: foreign chargeable gains remitted in the tax year after that in which they accrue), in subsection (1), for paragraphs (a) and (b) substitute—. The amendment made by this paragraph has effect in relation to the tax year 2017-18 and subsequent tax years.
Section 4 (capital expenditure) is amended as follows. In subsection (2)— After subsection (2) insert—
In section 16ZC (election under section 16ZA by individual to whom remittance basis applies), in subsection (1), for paragraphs (a) to (c) substitute— The amendment made by this paragraph has effect in relation to the tax year 2017-18 and subsequent tax years.
Section 59 (unrelieved qualifying expenditure) is amended as follows. In subsection (4), for “no amount may be carried forward as unrelieved qualifying expenditure” substitute “ any cash basis deductible amount may not be carried forward as unrelieved qualifying expenditure in a pool for the trade, profession or vocation ”. After subsection (4) insert— Omit subsection (5). After subsection (5) insert— In subsection (6), for “the amount of unrelieved qualifying expenditure incurred on the provision of a car” substitute “ any cash basis deductible amount ”. For subsection (7) substitute—
In section 69 (trustees of settlements), after subsection (2E) insert— The amendment made by this paragraph has effect in relation to a settlement—
Section 66A (persons leaving cash basis) is amended as follows. For subsection (1) substitute— In subsection (2)(a)— After subsection (6) insert—
In section 86 (attribution of gains to settlors with interest in non-resident or dual resident settlements), after subsection (3) insert— The amendment made by this paragraph has effect in relation to the tax year 2017-18 and subsequent tax years.
After section 419 insert—
In section 275 (location of assets), after subsection (3) insert— The amendment made by this paragraph has effect for the purposes of determining for the purposes of TCGA 1992 the situation of any asset, or whether the situation of any asset is in the United Kingdom, at any time on or after 6 April 2017 (irrespective of when the asset was acquired by the person holding it).
After section 431C insert—
Section 835BA of ITA 2007 (deemed domicile) applies for the purposes of sub-paragraph (3). The amendment made by this paragraph has effect in relation to settlements created on or after 6 April 2017.
After section 461 insert—
After section 462 insert—
After section 475 insert—
After section 477 insert—
ITA 2007 is amended as follows.
In section 266A of ICTA (life assurance premiums paid by employer), after subsection (8) insert— The amendment made by this paragraph has effect in relation to the tax year 2017-18 and subsequent tax years.
ITA 2007 is amended as follows.
The amendments made by this Schedule have effect in relation to times on or after 6 April 2017. But for the purposes of paragraph 5(1) of Schedule A1 to IHTA 1984 as inserted by this Schedule—
The commercial terms condition is met in relation to a qualifying loan if— For the purposes of sub-paragraph (1), a loan is made in the ordinary course of a lending business if it is made by a person in the ordinary course of a business carried on by the person which includes—
Chapter 2 of Part 7A of ITEPA 2003 does not apply by reason of a relevant step within paragraph 1 which is treated as being taken by a person (“P”) if the conditions in sub-paragraph (2) are met. The conditions are that— In this paragraph “employer shares” means shares that form part of the ordinary share capital of— Sub-paragraph (6) applies if— In this paragraph “the relevant period” means the period of 12 months beginning with the day on which A ceases to hold the shares. Part 7A of ITEPA 2003 has effect as if—
TMA 1970 is amended as follows.
The amount of a penalty for which a person is liable under paragraph 1 is to be reduced by the amount of any other penalty incurred by the person in respect of conduct for which the person is liable to the penalty under paragraph 1. In this paragraph “any other penalty” means a penalty—
The Commissioners may publish information about a person where— The condition in this sub-paragraph is that, at the time when the penalty mentioned in sub-paragraph (1) becomes final, 50 or more other penalties which are reckonable penalties have been incurred by the person. The condition in this sub-paragraph is that— is more than £25,000. The information that may be published under this paragraph is— The information may be published in any way that the Commissioners consider appropriate. For the purposes of this Part of this Schedule a penalty becomes “final”— and “contract settlement” here means a contract between the Commissioners and the person under which the Commissioners undertake not to assess the penalty or (if it has been assessed) not to take proceedings to recover it. “Reckonable penalty” has the meaning given by paragraph 47. This paragraph is subject to paragraphs 48 to 50.
In this Schedule— For the purposes of this Schedule two companies are members of the same group if— and in this paragraph “75% subsidiary” has, subject to sub-paragraph (3), the meaning given by section 1154 of CTA 2010. So far as relating to 75% subsidiaries, section 151(4) of CTA 2010 (requirements relating to beneficial ownership) applies for the purposes of this Schedule as it applies for the purposes of Part 5 of that Act. In this Schedule references to an assessment to tax, however expressed—
“Indirect tax” means any of the following— VAT insurance premium tax general betting duty pool betting duty remote gaming duty machine games duty gaming duty lottery duty bingo duty air passenger duty hydrocarbon oils duty tobacco products duty duties on spirits, beer, wine, made-wine and cider soft drinks industry levy aggregates levy landfill tax climate change levy customs duties. The Treasury may by regulations amend the list in sub-paragraph (1) by adding, varying or omitting an entry for a tax.
“Tax advantage”, in relation to an indirect tax other than VAT, means—
relief or increased relief from tax,
repayment or increased repayment of tax,
avoidance or reduction of a charge to tax, an assessment of tax or a liability to pay tax,
avoidance of a possible assessment to tax or liability to pay tax,
deferral of a payment of tax or advancement of a repayment of tax, or
avoidance of an obligation to deduct or account for tax.
A person makes a firm approach to another person in relation to a notifiable proposal if the person makes a marketing contact with the other person in relation to the proposal at a time when the proposed arrangements have been substantially designed. A person makes a marketing contact with another person in relation to a notifiable proposal if— For the purposes of sub-paragraph (1) proposed arrangements have been substantially designed at any time if by that time the nature of the transactions to form part of them has been sufficiently developed for it to be reasonable to believe that a person who wished to obtain the tax advantage mentioned in sub-paragraph (2)(c) might enter into—
This paragraph applies where a person enters into any transaction forming part of any notifiable arrangements in relation to which— The person must, within the relevant period, provide HMRC with prescribed information relating to the arrangements. In sub-paragraph (2) “the relevant period” is the period of 6 days beginning with the day on which the person enters into the first transaction forming part of the arrangements. Compliance with paragraph 11(1) or 12(1) by any promoter in relation to the arrangements discharges the person’s duty under sub-paragraph (1).
The Commissioners may by regulations amend this Part of this Schedule with a view to altering the definition of “the relevant period” for the purposes of— paragraph 5(6) paragraph 11(1) paragraph 12(1) paragraph 16(5) paragraph 17(2) paragraph 24(3) paragraph 25(2) paragraph 27(3) paragraph 28(3) paragraph 29(4) paragraph 30(2)) paragraph 31(4).
The penalty payable under paragraph 1 is 200% of the offshore PLR attributable to the uncorrected offshore tax non-compliance (subject to any reduction under a provision of this Part of this Schedule). In this Part of this Schedule “the uncorrected offshore tax non-compliance” means—
In Part 4 (loss relief), in section 59 (overview of Part), in subsection (3)(b)—
for “section 272” substitute “ sections 272 and 272ZA ”, and
for “applies” substitute “ apply ”.
In section 476 (how to work out whether settlor meets condition C in section 475), after subsection (3) insert— The amendment made by this paragraph has effect—
In section 9A (notice of enquiry), in subsection (5)—
in paragraph (a), omit the final “or”;
for paragraph (b) substitute—.
A penalty is a “reckonable penalty” for the purposes of paragraph 46 if— For the purposes of this paragraph the “entry date” of a penalty under paragraph 1 is the date (or, if more than one, the latest date) on which the arrangements concerned or any agreement or transaction forming part of those arrangements was entered into by the taxpayer. In sub-paragraph (2)— For the purposes of this paragraph, the entry date of a penalty is not more than 12 months apart from the entry date of another penalty if—
Chapter 4 of Part 4 (losses from property businesses) is amended as follows. In section 120 (deduction of property losses from general income), in subsection (7), at the end insert “ and section 127BA (restriction of relief: cash basis) ”. After section 127B insert—
In section 718 (meaning of “person abroad” etc), after subsection (2) insert— The amendment made by this paragraph has effect in relation to the tax year 2017-18 and subsequent tax years.
Section 9B (amendment of return by taxpayer during enquiry) is amended as follows. In subsection (1), for “is in progress into the return” substitute “into the return is in progress in relation to any matter to which the amendment relates or which is affected by the amendment”. In subsection (3)— In subsection (4)—
In Chapter 1 of Part 8 (relief for interest payments), in section 384B(1) (restriction on relief for interest payments where cash basis applies), after “for the tax year” insert “or if the profits of a UK property business or overseas property business carried on by the partnership are calculated on the cash basis for the tax year (see section 271D of ITTOIA 2005).
Chapter A1 of Part 14 (remittance basis) is amended as follows. In section 809B (claim for remittance basis to apply), after subsection (1) insert— In section 809C (claim for remittance basis by long-term UK resident: nomination) omit the following— In section 809E (application of remittance basis without claim: other cases), after subsection (1) insert— In section 809H (claim for remittance basis by long-term UK resident: charge) omit the following— The amendments made by this paragraph have effect in relation to the tax year 2017-18 and subsequent tax years. This is subject to paragraphs 15 and 16.
Section 9C (amendment of self-assessment during enquiry to prevent loss of tax) is amended as follows. In subsection (1), for “is in progress into a return” substitute “into a return is in progress in relation to any matter”. In subsection (2), after “deficiency” insert “so far as it relates to the matter”. In subsection (4)—
This paragraph applies in a case where— For the purposes of capital gains tax in respect of foreign chargeable gains accruing to the individual during an intervening year, the amendment made by paragraph 14(2) does not have effect in relation to the year of return. Where by virtue of sub-paragraph (2) an individual makes a claim under section 809B of ITA 2007 for the tax year 2017-18, sections 809C, 809G and 809H of ITA 2007 do not apply to the individual for that tax year. In this paragraph—
In section 12ZM (NRCGT returns: notice of enquiry), in subsection (4)—
in paragraph (a), omit the final “or”;
for paragraph (b) substitute—.
This paragraph applies in a case where section 10A of TCGA 1992 as substituted by paragraph 119 of Schedule 45 to FA 2013 applies in relation to an individual. For the purposes of capital gains tax in respect of foreign chargeable gains accruing to the individual during a temporary period of non-residence beginning before 8 July 2015, the amendment made by paragraph 14(2) does not have effect in relation to the tax year which consists of or includes the period of return. Where by virtue of sub-paragraph (2) an individual makes a claim under section 809B of ITA 2007 for any of the tax years 2017-18 to 2020-21 inclusive, sections 809C, 809G and 809H of ITA 2007 do not apply to the individual for that tax year. In this paragraph, “foreign chargeable gain” has the meaning given by section 12(4) of TCGA 1992. Part 4 of Schedule 45 to FA 2013 explains what “temporary period of non-residence” and “period of return” mean.
Section 12ZN (NRCGT returns: amendment of return by taxpayer during enquiry) is amended as follows. In subsection (1), for “is in progress into the return” substitute “into the return is in progress in relation to any matter to which the amendment relates or which is affected by the amendment”. In subsection (3)— In subsection (4)—
In section 834 (residence of personal representatives), at the end insert— The amendment made by this paragraph has effect in relation to the tax year 2017-18 and subsequent tax years.
In section 12AC (partnership return: notice of enquiry), in subsection (5)—
in paragraph (a), omit the final “or”;
for paragraph (b) substitute—.
Section 12AD (amendment of partnership return by taxpayer during enquiry) is amended as follows. In subsection (1), for “is in progress into the return” substitute “into the return is in progress in relation to any matter to which the amendment relates or which is affected by the amendment”. In subsection (3)— In subsection (4)(a), after “in progress” insert “in relation to any matter to which the amendment relates or which is affected by the amendment”. In subsection (5)—
In section 12B (records), in subsection (1)(b)(i), for “28A(1) or 28B(1)” substitute “28A(1B) or 28B(1B)”.
Section 28ZA (referral of questions during enquiry) is amended as follows. In subsection (1), after “of this Act” insert “in relation to any matter”. In subsection (5)—
In section 28ZD (effect of referral on enquiry), in subsection (1)—
for paragraph (a) substitute—;
in paragraph (b), for “such a notice” substitute “a notice referred to in paragraph (a) or (aa)”.
Section 28A (completion of enquiry into personal, trustee or NRCGT return) is amended as follows. For subsection (1) substitute— In subsection (2)— In subsections (3) and (4), for “closure notice” substitute “partial or final closure notice”. In subsection (6), for “a closure notice” substitute “the partial or final closure notice”. After subsection (6) insert—
Section 28B (completion of enquiry into partnership return) is amended as follows. For subsection (1) substitute— In subsection (2)— In subsections (3) and (5), for “closure notice” substitute “partial or final closure notice”. In subsection (7), for “a closure notice” substitute “the partial or final closure notice”. After subsection (7) insert—
In section 29 (assessment where loss of tax discovered), in subsection (5), for paragraph (b) substitute—.
In section 29A (NRCGT disposals: determination of amount which should have been assessed), in subsection (5), for paragraph (b) substitute—.
In section 30 (recovery of overpayment of tax etc), in subsection (5)(b), for “28A(1)” substitute “28A(1B)”.
In section 30B (amendment of partnership statement where loss of tax discovered), in subsection (6), for paragraph (b) substitute—.
In section 31 (appeals: right of appeal), in subsection (2)—
after “in progress” insert “in relation to any matter to which the amendment relates or which is affected by the amendment”;
for “the enquiry is completed” substitute “a partial closure notice is issued in relation to the matter or, if no such notice is issued, a final closure notice is issued”.
In section 59AA (NRCGT disposals: payments on account of CGT), in subsection (8)(a), for “28A(1)” substitute “28A(1B)”.
In section 59B (payment of income tax and capital gains tax), in subsection (4A)(a), for “28A(1)” substitute “28A(1B)”.
In Schedule 3ZA (date by which payment to be made after amendment etc of self-assessment), paragraph 2 is amended as follows. In sub-paragraph (3)(b)— In sub-paragraph (3)(b), “the relevant day” means—
The amendments made by this Schedule have effect for the tax year 2017-18 and subsequent tax years. If— that deduction is to be allowed in calculating the profits of that trade, profession or vocation on that basis for that tax year. Sub-paragraph (2) is to be disregarded in determining any question as to whether or to what extent an amount of expenditure would, on the assumption that it was paid in the tax year 2017-18, be brought into account in calculating the profits of a trade, profession or vocation for the tax year 2017-18 for the purposes of— But sub-paragraph (2) is not to be disregarded in determining any question as to whether or to what extent an amount of expenditure is actually brought into account in calculating the profits of a trade, profession or vocation for the tax year 2017-18 for the purposes of the provisions mentioned in paragraphs (a) and (b) of sub-paragraph (3).
Section 17
In ITTOIA 2005, after section 783 insert—
In TIOPA 2010—
in section 22(8) (credit for foreign tax on overlap profit if credit for that tax already allowed), in the definition of “overlap profit”, for “section 204” substitute “ sections 204 and 204A ”, and
in section 24(8) (claw-back of relief under section 22(2)), in the definition of “overlap profit”, for “section 204” substitute “ sections 204 and 204A ”.
Chapter 2 of Part 4 of CTA 2010 (trade losses) is amended as follows.
Chapter 4 of Part 15 of CTA 2009 (losses of separate film trade) is amended as follows.
Section 826 of ICTA (interest on tax overpaid) is amended as follows. After subsection (7A) insert— In subsection (7D) (meaning of references to the date on which corporation tax became payable) after “(7A),” insert “ (7AA), ”. In subsection (7E) (power conferred by section 59E of TMA 1970 not to include power to change the meaning of references to the date on which corporation tax became payable) after “(7A),” insert “ (7AA) ”.
Chapter 2 of Part 7A of ITEPA 2003 does not apply by reason of a relevant step within paragraph 1 which is treated as being taken by a person (“P”) if—
P is treated as taking a relevant step by that paragraph by reason of the payment of a sum of money by way of a loan (the “relevant loan”),
the relevant loan is made and used solely for the purpose of enabling A to exercise an employment-related securities option (within the meaning of Chapter 5 of Part 7 of ITEPA 2003),
the exercise of the option by A gives rise to employment income of A in respect of A’s employment with B—
which is chargeable to income tax or would be chargeable apart from Chapter 5B of Part 2 of ITEPA 2003, or
which is exempt income, and
there is no connection (direct or indirect) between the relevant step and a tax avoidance arrangement.
In determining at any time whether or what information may be published in relation to a person under paragraph 46, the following penalties incurred by the person are to be disregarded— For the purposes of sub-paragraph (1)(c) and (d) arrangements are “related to” each other if they— The condition referred to in sub-paragraph (1)(c) is that HMRC reasonably believe that— For the purposes of sub-paragraph (1)(d) arrangements have “already been dealt with” if information about the person has already been published under paragraph 46 by reference to a penalty that relates to those arrangements.
Subject to the provisions of this Schedule, the following provisions of TMA 1970 apply for the purposes of this Schedule as they apply for the purposes of the Taxes Acts—
section 108 (responsibility of company officers),
section 114 (want of form), and
section 115 (delivery and service of documents).
In this Schedule (apart from the amendments made by Part 3)— A reference to making a return or doing anything in relation to a return includes a reference to amending a return or doing anything in relation to an amended return. References to delivery (of a document) include giving, sending and any other similar expressions. A reference to delivering a document to HMRC includes— References to an assessment to tax, in relation to inheritance tax, are to a determination. An expression used in relation to income tax has the same meaning as in the Income Tax Acts. An expression used in relation to capital gains tax has the same meaning as in the enactments relating to that tax. An expression used in relation to inheritance tax has the same meaning as in IHTA 1984.
In section 36 (introduction to Chapter) for subsection (1) substitute—.
Section 1209 (restriction on use of losses while film in production) is amended as follows. In subsection (2)— After subsection (2) insert—
In section 554N of ITEPA 2003 (exclusions: other cases involving employment-related securities etc.), at the end insert—
Publication of information under paragraph 46 on the basis of a penalty or penalties incurred by a person may not take place after the relevant time. In this paragraph “the relevant time” means the end of 12 months beginning with the date on which the penalty became final or, where more than one penalty is involved, the latest date on which any of them became final. Sub-paragraph (1) is not to be taken to prevent the re-publishing, or continued publishing, after the relevant time of a set of information published under paragraph 46 before that time. Information published under paragraph 46 may not be re-published, or continue to be published, after the end of 12 months beginning with the date on which it was first published. Nothing in paragraph 48 applies in relation to determining whether to re-publish (or continue to publish) a set of information already published under paragraph 46.
For the italic heading before section 37 substitute— “ Relief in loss-making period and carry back relief ”.
Section 1210 (use of losses in later periods) is amended as follows. In subsection (2) after “45” insert “ or 45B ”. In subsection (3) for “loss relief” substitute “ section 37 and Part 5 of CTA 2010 ”. In subsection (4) for “Subsection (5) applies” substitute “ Subsections (5) and (5A) apply ”. In subsection (5) after paragraph (a) insert— After subsection (5) insert—
Before publishing information under paragraph 46 the Commissioners must—
inform the person that they are considering doing so, and
afford the person the opportunity to make representations about whether it should be published.
Section 45 (carry forward of trade loss against subsequent trade profits) is amended as follows. In the heading, after “of” insert “ pre-1 April 2017 ”. In subsection (1) after “accounting period” insert “ beginning before 1 April 2017 ”. In subsection (4)(b) for “cannot be” substitute “ is not ”. After subsection (4) insert— In subsection (5) for “section” (in the second place it occurs) substitute “ , sections 45B, 45F and ”.
Section 1211 (terminal losses) is amended as follows. In subsection (1)(c)— In subsection (3) for the words after “treated” to the end substitute— In subsection (6) for the words after “treated” to the end substitute— After subsection (7) insert—
After section 45 insert—
The amendments made by this Schedule have effect for the tax year 2017-18 and subsequent tax years.
Section 18
“indirect tax” has the meaning given by paragraph 2(1);
Part 5 of CTA 2009 (loan relationships) is amended as follows.
Schedule 18 to FA 1998 (company tax returns, assessments and related matters) is amended in accordance with paragraphs 108 to 122.
CTA 2009 is amended as follows.
In consequence of the insertion of a new Part 10 of TIOPA 2010 by Part 1 of this Schedule, the existing Part 10 of that Act becomes a new Part 11. The following provisions of TIOPA 2010 are repealed— but the repeals made by this sub-paragraph do not affect any orders made under section 375 or 376 before the passing of this Act. As a result of the provision made by sub-paragraphs (1) and (2), the following provisions of TIOPA 2010 are renumbered as follows— Consequently— In section 379(1) and (2) of TIOPA 2010 (index of defined expressions), for “8” substitute “ 10 ”.
ITEPA 2003 is amended as follows. In section 355 (deductions for corresponding payments by non-domiciled employees with foreign employers), in subsection (2), at the end insert “(and section 835BA of ITA 2007 (deemed domicile) applies for the purposes of this subsection)”. In section 373 (non-domiciled employee’s travel costs and expenses where duties performed in UK), at the end insert— In section 374 (non-domiciled employee’s spouse’s etc travel costs and expenses where duties performed in UK), at the end insert — In section 376 (foreign accommodation and subsistence costs and expenses (overseas employment)), at the end insert — The amendments made by this paragraph have effect in relation to the tax year 2017-18 and subsequent tax years.
For the purpose of deciding whether the condition in sub-paragraph (1)(a) is met, ignore section 628A of ITTOIA 2005 (which provides for section 624 of that Act not to apply to certain foreign income arising under a settlement).
Paragraph 10 applies in relation to a loan where— The “loan period”, in relation to a loan, is the period—
In the heading of Chapter 16 (non-trading deficits) at the end insert “ : pre-1 April 2017 deficits and charities ”.
In paragraph 61(1)(c) (consequential claims etc arising out of certain Revenue amendments or assessments), in the words in brackets, after “relief” insert “ or group relief for carried-forward losses ”.
In section 39(3) (losses of mines, quarries and other concerns)—
omit “and”, and
after “(group relief)” insert “ and Part 5A of that Act (group relief for carried forward losses) ”.
Where this paragraph applies in relation to a loan— The relevant principal amount, in relation to the loan, is an amount equal to the total of— The “reference date”— The repayment amount, in relation to the loan, is an amount equal to the total of— The “sterling value” of a payment is its value in sterling on the date it is made.
In section 456 (introduction to Chapter 16) in subsection (1)—
after “if” insert— , and
at the end insert, and .
In the heading of Part 8 (claims for group relief) at the end insert “ and group relief for carried-forward losses ”.
Section 364 (group relief claims involving impaired or released consortium debts) is amended as follows. “group relief” means— In subsection (5) for “or 144” substitute “ , 144 or 188DH ”.
After section 463 insert—
For paragraph 66 (introduction to Part 8) substitute—
“group relief” has the meaning given by section 364(4),
In paragraph 67 (claim to be included in company tax return) omit “for group relief”.
In section 387 (treatment of deficit on basic life assurance and general annuity business: introduction) in subsection (1) for “Chapter 16” substitute “ Chapters 16 and 16A ”.
Paragraph 68 (content of claims) is amended as follows. In sub-paragraph (1), in the words before paragraph (a), omit “for group relief”. After sub-paragraph (4) insert—
Section 1048 (treatment of deemed trading loss under section 1045) is amended as follows. In subsection (1) at the end insert “ (“the deemed loss-making period”) ”. In subsection (3)— After subsection (4) insert— In subsection (5) for “Subsection (4) is” substitute “ Subsections (4) and (4B) are ”.
Paragraph 69 (claims for more or less than the amount available for surrender) is amended as follows. In subsection (1) omit “for group relief”. In subsection (3), in the first step, after “Part 5” insert “ or (as the case may be) Part 5A ”.
In section 1056 (amount of trading loss which is “unrelieved”)—
in subsection (2)(c) after “Part 5” insert “ or Part 5A ”, and
in subsection (3)(a) after “45” insert “ , 45A or 45B ”.
Paragraph 70 (consent to surrender) is amended as follows. For sub-paragraph (1) substitute— In sub-paragraph (4) omit “for group relief”. In sub-paragraph (6)—
In section 1062(2) (restriction on losses carried forward where R&D tax credit claimed)—
for “section 45” substitute “ sections 45, 45A and 45B ”, and
omit “trading” in the second place that word occurs.
In Paragraph 71 (notice of consent) after sub-paragraph (1) insert—
In section 1116 (meaning of “the actual reduction in tax liability”) in subsection (4) after “Part 5” insert “ or Part 5A ”.
After paragraph 71 insert—
In section 1153 (amount of loss which is “unrelieved”)—
in subsection (1)(c) after “Part 5” insert “ or Part 5A ”, and
in subsection (2)(a) after “45” insert “ , 45A, 45B ”.
Paragraph 72 (notice of consent requiring amendment of return) is amended as follows. For sub-paragraph (1) substitute— Omit sub-paragraph (2). In sub-paragraph (3) omit “or (2)”. In sub-paragraph (4) omit “or (2)”.
In section 1158(2) (restriction on losses carried forward where land remediation tax credit claimed)—
for “section 45” substitute “ sections 45, 45A and 45B ”, and
omit “trading” in the second place that word occurs.
Paragraph 73 (withdrawal or amendment of claim) is amended as follows. In sub-paragraph (1) omit “for group relief”. In sub-paragraph (2) omit “for group relief”.
In section 1201 (film tax credit claimable if company has surrenderable loss) in subsection (2B)(b) after “45” insert “ or 45B ”.
Paragraph 74 (time limit for claims) is amended as follows. In sub-paragraph (1), in the words before paragraph (a), omit “for group relief”. In sub-paragraph (2) omit “for group relief”. In sub-paragraph (3) omit “for group relief”. In sub-paragraph (4) omit “for group relief” in both places those words occur.
In section 1216CH (television tax credit claimable if company has surrenderable loss) in subsection (4)(b) after “45” insert “ or 45B ”.
Paragraph 75A (assessment on other claimant companies) is amended as follows. In sub-paragraph (2) omit “group”. In sub-paragraph (6) omit “for group relief”.
In section 1217CH (video game tax credit claimable if company has surrenderable loss) in subsection (4)(b) after “45” insert “ or 45B ”.
Paragraph 76 (assessment to recover excessive relief) is amended as follows. In the italic heading omit “group”. In sub-paragraph (1) omit “group”.
In section 1217KA (theatre tax credits: amount of surrenderable loss) in subsection (3)(b) after “45” insert “ or 45B ”.
Paragraph 77 (joint amended returns) is amended as follows. In sub-paragraph (1)— In sub-paragraph (3), in paragraph (a), omit “for group relief”.
In section 1217RH (orchestra tax credits: amount of surrenderable loss) in subsection (3)(b) after “45” insert “ or 45B ”.
In section 1223 (carry forward expenses of management and other amounts), in subsection (1)(b), after sub-paragraph (i) (as inserted by paragraph 6(2)(b)) insert—.
Section 753 of CTA 2009 (treatment of non-trading loss) is amended as follows. In subsection (3) (carry forward of non-trading loss)— After subsection (3) insert—
An amount of a non-trading deficit from a company's loan relationships which is carried forward under section 463H of CTA 2009 is to be disregarded for the purposes of section 730F of CTA 2010 (as amended by paragraph 69(4)), unless it is a post-13 July 2017 amount. An amount of a non-trading deficit from a company's loan relationships which is deducted under section 463H(5) of CTA 2009 is to be disregarded for the purposes sections 188DD and 188ED of CTA 2010, unless it is a post-13 July 2017 amount. For the purposes of this paragraph an amount of a non-trading deficit from a company's loan relationships (“the deficit amount”) is a post-13 July 2017 amount— For the purposes of sub-paragraph (3)(b)— The apportionment is to be made— In this paragraph “deficit period” is to be interpreted in accordance with section 463A(2) of CTA 2009.
The corporate interest restriction amendments have effect in relation to periods of account of worldwide groups that begin on or after 1 April 2017. In this paragraph “the corporate interest restriction amendments” means the amendments made by Parts 1 to 3 of this Schedule, apart from those made by paragraph 11 (repeal of Part 7 of TIOPA 2010). Any regulations made by the Treasury or Commissioners under Part 10 of TIOPA 2010 before 1 April 2018 may have effect in relation to periods of account of worldwide groups that begin on or after 1 April 2017. Sub-paragraphs (6) to (11) apply if— In sub-paragraphs (6) to (11)— For the purposes of Part 10 of TIOPA 2010, the group's actual financial statements are treated as not having been drawn up. Instead, financial statements of the worldwide group are treated for those purposes as having been drawn up in respect of each of the following periods— Where condition C or D in section 481 of TIOPA 2010 is met in relation to the group's actual financial statements, the financial statements treated as drawn up by sub-paragraph (7) are treated as drawn up in accordance with the generally accepted accounting principles and practice with which the group's actual financial statements were drawn up. Where neither of those conditions is met in relation to the group's actual financial statements, the financial statements treated as drawn up by sub-paragraph (7) are IAS financial statements. Where, for the purpose of determining amounts recognised in the financial statements treated as drawn up by sub-paragraph (7), it is expedient to apportion any amount that is recognised in the group's actual financial statements, the apportionment is to be made in accordance with section 1172 of CTA 2010 (apportionment on a time basis). But if it appears that apportionment in accordance with that section would work unjustly or unreasonably, the apportionment is to be made on a just and reasonable basis. Expressions used in this paragraph and in Part 10 of TIOPA 2010 have the same meaning in this paragraph as they have in that Part.
Paragraph 1(4)(a) of Schedule 7A to TIOPA 2010 (notice of the appointment of reporting company ineffective if given outside the period specified in that provision) does not apply to a notice that— Paragraph 2(4)(a) of that Schedule (notice of the revocation of the appointment of reporting company ineffective if given outside the period specified in that provision) does not apply to a notice that— Where the date determined under paragraph 7(5) of that Schedule as the filing date in relation to a period of account of a worldwide group would (apart from this sub-paragraph) be a date before 30 June 2018, that provision has effect as if it provided for the filing date in relation to the period to be 30 June 2018.
A company which is a UK group company of a worldwide group on 1 April 2017 may elect for the Disregard Regulations to have effect as if— The election has effect for the calculation under Part 10 of TIOPA 2010 of— A company is a “relevant transferee company” if regulation 6B or 6C of the Disregard Regulations applies in relation to the company as the transferee mentioned in the regulation (on the assumption that an election has been made before the transfer under this paragraph). An election under this paragraph has effect only if every company which was a UK group company of the worldwide group on 1 April 2017 (other than one which was dormant on that date or at the time the election is made) also makes an election under this paragraph. An election under this paragraph— Section 457 of TIOPA 2010 is to apply in relation to debits resulting from an election under this paragraph. In this paragraph “the Disregard Regulations” means the Loan Relationships and Derivative Contracts (Disregard and Bringing into Account of Profits and Losses) Regulations 2004 (S.I. 2004/3256). Expressions used in this paragraph and in Part 10 of TIOPA 2010 have the same meaning in this paragraph as they have in that Part.
This paragraph applies in relation to any order or regulations made before 1 April 2018 by the Treasury or Commissioners containing provision that is consequential on provision made by this Schedule. Any order or regulations to which this paragraph applies may contain provision (however expressed) for securing that the consequential provision made by the order or regulations has effect in accordance with paragraph 25 (commencement) as if the consequential provision were included in the corporate interest restriction amendments mentioned in that paragraph.
Chapter 5 of Part 5 of ITTOIA 2005 (settlements) is amended as follows.
In Part 2 of Schedule 7 to FA 2008 (remittance basis: trusts etc), after paragraph 171 insert—
A loan or quasi-loan in relation to which sub-paragraph (2) applies is to be treated as a “relevant benefit” for the purposes of sections 23A to 23H of ITTOIA 2005. This sub-paragraph applies in relation to a loan or a quasi-loan if— Where section 23E of ITTOIA 2005 applies in relation to a relevant benefit which is a loan or quasi-loan in relation to which sub-paragraph (2) applies, section 23E has effect— This paragraph is subject to paragraphs 19 and 20 (accelerated payments). For the purposes of this paragraph, whether an amount of a loan or quasi-loan is outstanding at a particular time—
In paragraphs 5 to 8 “the loan currency”, in relation to a loan, means the currency in which the initial principal amount of the loan is denominated (whether or not that amount is paid in that currency). For the purposes of paragraphs 5 to 8, the value of an amount in a particular currency is to be determined by reference to an appropriate spot rate of exchange.
A loan is an “approved fixed term loan” on 5 April 2019 if, at any time on that day, it is a qualifying loan which has been approved by an officer of Revenue and Customs in accordance with paragraph 16. A loan is a “qualifying loan” if— A loan is an excluded loan if, at any time after the loan was made—
The commercial terms condition is met in relation to a qualifying loan if— For the purposes of sub-paragraph (1), a loan is made in the ordinary course of a lending business if it is made by a person in the ordinary course of a business carried on by the person which includes—
If the contravention is deliberate and concealed, the amount of the penalty is the maximum amount (see paragraph 10). If the contravention is deliberate but not concealed, the amount of the penalty is 70% of the maximum amount. In any other case, the amount of the penalty is 30% of the maximum amount. The contravention is—
Where P becomes liable for a penalty under this Schedule, the Commissioners 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. A penalty under this Schedule is recoverable as a debt due to the Crown. An assessment of a penalty under this Schedule may not be made later than one year after evidence of facts sufficient in the opinion of the Commissioners to indicate the contravention comes to their knowledge. Two or more contraventions may be treated by the Commissioners as a single contravention for the purposes of assessing a penalty under this Schedule.
P is not liable to a penalty under this Schedule in respect of a contravention in respect of which P has been convicted of an offence.
Condition A is that— For the purposes of this paragraph the relevant tax advantage has been “counteracted” if adjustments have been made in respect of T’s tax position on the basis that the whole or part of the relevant tax advantage does not arise. For the purposes of this paragraph a counteraction is “final” when the adjustments in question, and any amounts arising from the adjustments, can no longer be varied, on appeal or otherwise. In this paragraph “adjustments” means any adjustments, whether by way of an assessment, the modification of an assessment or return, the amendment or disallowance of a claim, a payment, the entering into of a contract settlement or otherwise. Accordingly, references to “making” adjustments include securing that adjustments are made by entering into a contract settlement. Any reference in this paragraph to giving HMRC a document includes— Any reference in this paragraph to a document of a kind listed in the Table in paragraph 1 of Schedule 24 to FA 2007 includes—
Subject to sub-paragraph (5), a declaration under this paragraph is to be treated by— as conclusive evidence of the things stated in the declaration. A declaration under this paragraph is a declaration which— A communication falls within this sub-paragraph if— The Treasury may by regulations impose requirements as to the form and contents of declarations under this paragraph. Sub-paragraph (1) does not apply where HMRC or (as the case may be) the court or tribunal is satisfied that the declaration contains information which is incorrect. In this paragraph “a relevant lawyer” means a barrister, advocate, solicitor or other legal representative communications with whom may be the subject of a claim to legal professional privilege or, in Scotland, protected from disclosure in legal proceedings on the grounds of confidentiality of communication. For the purpose of this paragraph, a communication is “legally privileged” if it is a communication in respect of which a claim to legal professional privilege, or (in Scotland) to confidentiality of communications as between client and professional legal adviser, could be maintained in legal proceedings.
The definitions in paragraphs 2, 3, and 7 to 10 apply for the purposes of this Schedule.
In section 624 (income under a settlement where settlor retains an interest), in subsection (3) (which lists provisions containing exceptions)—
omit the “and” at the end of the entry for section 627, and
section 628A (exception for protected foreign-source income).
This paragraph applies in relation to a loan where the loan currency is a currency other than sterling. But this paragraph does not apply if paragraph 8 applies in relation to the loan. The amount of the loan that is outstanding, at the relevant time, is to be calculated in sterling as follows— Step 1 Calculate, in the loan currency, the amount that is outstanding at that time. Step 2 Take the value in sterling, at that time, of that amount. For the purposes of this paragraph and paragraph 8, the “relevant time” in relation to a loan is the time immediately before— See paragraph 6 for provision about repayments made in a currency other than the loan currency.
Where a person carelessly or deliberately gives any incorrect information in a declaration under paragraph 44, the person is liable to a penalty not exceeding £5,000. For the purposes of this paragraph, incorrect information is carelessly given by a person if the information is incorrect because of a failure by the person to take reasonable care. Paragraphs 19(1), 20, 22(1), 37, 38 and 39(1), (2) and (5) apply in relation to a penalty under this paragraph as they apply in relation to a penalty under paragraph 1, subject to the modifications in sub-paragraphs (4) and (5). In its application to a penalty under this paragraph, paragraph 22(1) has effect as if for “the relevant time” there were substituted “the end of 12 months beginning with the date on which facts sufficient to indicate that the person is liable to the penalty came to the Commissioners’ knowledge”. In its application to a penalty under this paragraph, paragraph 38(3) has effect as if the reference to the arrangements to which the penalty relates were to the arrangements to which the declaration under paragraph 44 relates. In paragraph 44 any reference to a penalty under paragraph 1 includes a reference to a penalty under this paragraph.
After section 628 insert—
In section 629(5) (list of exceptions), at the end insert “or section 630A (exception for protected foreign-source income). After section 630 insert—
Section 635 (capital sums treated under section 633 as income: meaning of “available income”) is amended as follows. In subsection (2), before “income” insert “unprotected”. After subsection (4) insert—
In section 636(1) (meaning in section 635 of “undistributed”), before “income”, in both places it occurs, insert “unprotected”.
In section 645(1) (meaning of property originating from the settlor), for “section” substitute “sections 628A and”.
Section 1223 of CTA 2009 (carrying forward expenses of management and other amounts) is amended as follows. In subsection (1)(b)— After subsection (3) insert—
In section 27 of the Energy Act 2004 (tax exemption for NDA activities) in subsection (1)(b) for the words from “relieved” to the end substitute—
Chapter 4 of Part 4 of CTA 2010 (property losses) is amended as follows.
An amount of a loan is “outstanding” for the purposes of paragraph 1 if the relevant principal amount exceeds the repayment amount. In sub-paragraph (1) “relevant principal amount”, in relation to a loan, means the total of— In sub-paragraph (1) “repayment amount”, in relation to a loan, means the total of—
Paragraph 4 provides for reductions in penalties under this Schedule where P discloses a contravention. P discloses a contravention by— Disclosure of a contravention— In relation to disclosure, “quality” includes timing, nature and extent.
Liability to a penalty does not arise under this Schedule in respect of a contravention which is not deliberate if P satisfies the Commissioners or (on an appeal made to the appeal tribunal) the tribunal that there is a reasonable excuse for the contravention. For the purposes of sub-paragraph (1), where P relies on any other person to do anything, that is not a reasonable excuse unless P took reasonable care to avoid the contravention.
In this Schedule “the maximum amount” means £10,000. If it appears to the Treasury that there has been a change in the value of money since the last relevant date, they may by regulations substitute for the sum for the time being specified in sub-paragraph (1) such other sum as appears to them to be justified by the change. In sub-paragraph (2), “relevant date” means— Regulations under this paragraph do not apply to any contravention which occurs wholly before the date on which they come into force.
In section 201(6) of CAA 2001 (elections) after “section 12AA of” insert “or regulations under paragraph 10 of Schedule A1 to”.
In section 964(4)(b) (collection through self-assessment return) for “section 9 of that Act” substitute “that section”.
TIOPA 2010 is amended as follows.
Section 62 (relief for losses made in UK property business) is amended as follows. In subsection (4)— In subsection (5), for the words before paragraph (a) substitute “ The amount ”. After subsection (5) insert—
A payment is to be disregarded for the purposes of paragraph 3(3)(b) if— But a payment is not to be disregarded under sub-paragraph (1)(b) if, by the end of the relevant date, each relevant tax liability has been paid in full. For the purposes of this paragraph, each of the following is a “relevant tax liability”— In this paragraph, “relevant date” means— Sub-paragraph (6) applies if a payment is disregarded under sub-paragraph (1)(b). The value of the relevant step treated as taken by paragraph 1 is not reduced under section 554Z5(3) of ITEPA 2003 (overlap with money or asset subject to earlier tax liability) by the amount of the sum, or the value of the asset, which is the subject of the relevant step mentioned in sub-paragraph (1)(b) unless the payment condition is met by reason of section 554Z5(4)(a) and (b)(ii) being met.
Where P discloses a contravention, the Commissioners must reduce the penalty to one that reflects the quality of the disclosure. If the disclosure is prompted, the penalty may not be reduced below— If the disclosure is unprompted, the penalty may not be reduced below—
In section 94(3) (information made available) in each of paragraphs (a) and (b) after “section 12AA of” insert “, or regulations under paragraph 10 of Schedule A1 to,”.
Section 63 (company with investment business ceasing to carry on UK property business) is amended as follows. For subsection (2) substitute— In subsection (3)(b) for “that” substitute “ the next accounting ”. After subsection (3) insert—
This paragraph applies where— The amount of the loan in respect of which A or B acquires a right to payment is to be treated— Where a quasi-loan or a loan made by P to a relevant person is replaced, directly or indirectly, by a loan or another loan (the “replacement loan”), references in sub-paragraphs (1) and (2) to the loan are references to the replacement loan.
In section 95(8)(a) (interpretation of “tax return”) after “12AA of” insert “, or regulations under paragraph 10 of Schedule A1 to,”.
In section 171(5) (tax returns where transfer pricing notice given), in paragraph (a) of the definition of “tax return”, after “12AA of” insert “, or regulations under paragraph 10 of Schedule A1 to,”.
CTA 2010 is amended as follows.
After section 269 insert—.
Section 269C (overview of Chapter 3 of Part 7A: restriction on banking company obtaining certain deductions) is amended as follows. After subsection (1) insert— In subsection (2) for “269CD” substitute “ 269CC ”
Section 269CA (restriction on deductions for pre-1 April 2015 trading losses) is amended as follows. In subsection (2), in the second sentence— In subsection (3), for the words from “where” to the end substitute “ in relation to a banking company for an accounting period where, in determining the company's relevant trading profits for the period, the amount given by step 1 in section 269ZF(3) is not greater than nil ”.
Section 269CB (restriction on deductions for pre-1 April 2015 non-trading deficits from loan relationships) is amended as follows. In subsection (2), in the second sentence— In subsection (3), for the words from “where” to the end substitute “ in relation to a banking company for an accounting period where, in determining the company's relevant non-trading profits for the period, the amount given by step 1 in section 269ZF(3) is not greater than nil ”
Section 269CC (restriction on deductions for pre-1 April 2015 management expenses etc) is amended as follows. In subsection (3) for the words from “does not apply” to the end substitute “ is subject to subsection (8) ”. In subsection (7)— After subsection (7) insert—
Section 269CD (relevant profits) is omitted.
Section 269CN (definitions for the purposes of Part 7A) is amended as follows. In the definition of “relevant non-trading profits” for the words from “means” to the end substitute “ has the meaning given by section 269ZF(2) ”. In the definition of “relevant profits” for the words from “means” to the end substitute “ has the meaning given by section 269ZD(5) ”. In the definition of “relevant trading profits” for the words from “means” to the end substitute “ has the meaning given by section 269ZF(1) ”.
After section 188 of CTA 2010 insert—
Chapter 9 of Part 2 of FA 2012 (relief for BLAGAB trade losses) is amended as follows.
Section 124 (carry forward of BLAGAB trade losses against subsequent profits) is amended as follows. In the heading, after “of” insert “ pre-1 April 2017 ”. In subsection (1), after “accounting period” insert “ beginning before 1 April 2017 ”. In subsection (5), at the end insert “ (but see also section 124D) ”.
After section 124 insert—
“arrangements” includes any agreement, understanding, scheme transaction or series of transactions (whether or not legally enforceable);
Chapter 4 of Part 15A of CTA 2009 (losses of separate television programme trade) is amended as follows.
CAA 2001 is amended as follows.
FA 2012 is amended as follows.
In section A1 of CTA 2009 (overview of the Corporation Tax Acts), in subsection (2)—
omit paragraph (i), and
after paragraph (ja) insert—.
Part 7 of TIOPA 2010 (tax treatment of financing costs and income) is repealed; and accordingly the following provisions of that Act are also repealed— In consequence of sub-paragraph (1), the following enactments (which amend provisions repealed by that sub-paragraph) are repealed— The following regulations were made under powers contained in Part 7 of TIOPA 2010 and are therefore revoked by virtue of sub-paragraph (1)—
The repeals and revocations made by paragraph 11 of this Schedule have effect in relation to periods of account of the worldwide group that begin on or after 1 April 2017. Sub-paragraphs (4) to (10) apply if financial statements of the worldwide group are drawn up in respect of a period that begins before, and ends on or after, 1 April 2017. In sub-paragraphs (4) to (10)— For the purposes of Part 7 of TIOPA 2010, the group's actual financial statements are treated as not having been drawn up. Instead, financial statements of the worldwide group are treated for those purposes as having been drawn up in respect of each of the following periods— Where condition B, C or D in regulation 2 of the Acceptable Financial Statements Regulations is met in relation to the group's actual financial statements, the financial statements treated as drawn up by sub-paragraph (5) are treated as drawn up in accordance with the generally accepted accounting principles and practice with which the group's actual financial statements were drawn up. Where none of those conditions is met in relation to the group's actual financial statements, the financial statements treated as drawn up by sub-paragraph (5) are IAS financial statements. Where, for the purpose of determining amounts recognised in the financial statements treated as drawn up by sub-paragraph (5), it is expedient to apportion any amount that is recognised in the group's actual financial statements, the apportionment is to be made in accordance with section 1172 of CTA 2010 (apportionment on a time basis). But if it appears that apportionment in accordance with that section would work unjustly or unreasonably, the apportionment is to be made on a just and reasonable basis. In sub-paragraph (6), “the Acceptable Financial Statements Regulations” means the Corporation Tax (Tax Treatment of Financing Costs and Income) (Acceptable Financial Statements) Regulations 2009 (S.I. 2009/3217). Expressions used in this paragraph and in Part 7 of TIOPA 2010 have the same meaning in this paragraph as they have in that Part.
For the purposes of Part 10 of TIOPA 2010 a debit or credit to which this paragraph applies is to be ignored. This paragraph applies to a debit or credit if— In sub-paragraph (2) “the later period” has the same meaning as in the regulations mentioned in that sub-paragraph.
In the case of an accounting period of a company beginning before 1 April 2018, the company may make an election under section 433 or 444 of TIOPA 2010 before that date. Companies making an election under section 435 of TIOPA 2010 before 1 April 2018 may specify a date in the election from which it has effect which is before the date on which the election is made.
References in this Part of this Schedule to Part 10 of TIOPA 2010 are to Part 10 of that Act as inserted by Parts 1 and 2 of this Schedule.
Section 826 of ICTA (interest on tax overpaid) is amended as follows. In subsection (1), after paragraph (fd) insert—. In subsection (3C), for “or orchestra tax credit” substitute “, orchestra tax credit or museums and galleries exhibition tax credit”. In subsection (8A)— In subsection (8BA), after “orchestra tax credit” (in both places) insert “or museums and galleries exhibition tax credit”.
In Schedule 24 to FA 2007 (penalties for errors), in paragraph 28(fa) (meaning of “corporation tax credit”), omit the “or” at the end of paragraph (ivd) and after that paragraph insert—.
In Part 8B of CTA 2010 (trading profits taxable at Northern Ireland rate), in section 357H(7) (introduction), after “Chapter 14A for provision about orchestra tax relief;” insert “Chapter 14B for provision about museums and galleries exhibition tax relief;”.
FA 2016 is amended as follows.
Where a person is liable for a penalty under paragraph 1 HMRC must— If— HMRC may assess the penalty on the basis of a reasonable estimate by HMRC of that consideration. This paragraph is subject to—
A referral must not be made under paragraph 26 unless— In this paragraph a “relevant person” means any person who at the time of the referral is considered by the officer making the referral to be liable to a penalty under paragraph 1 in relation to the arrangements in question (within the meaning given by paragraph 26(1)). A notice under this paragraph is a notice in writing which— Each person to whom a notice under this paragraph is given has 45 days, beginning with the day on which the notice is given to that person, to send written representations to the designated HMRC officer in response to the notice. A designated HMRC officer may, on a written request by a person to whom a notice is given, extend the period during which representations may be made by that person.
Where a referral is made under paragraph 26, a designated HMRC officer must at the same time give to each relevant person a notice in writing which— In this paragraph “relevant person” has the same meaning as in paragraph 28 (see sub-paragraph (2) of that paragraph).
Section 1216DA (restriction on use of losses while programme in production) is amended as follows. In subsection (2)— After subsection (2) insert—
Section 212Q (restrictions on capital allowance buying when there are postponed allowances) is amended as follows. In subsection (4) after “37,” insert “ 45A, ”. In subsection (6)—
In section 78 (meaning of expressions used in section 76), in subsection (5), for the words from “means” to the end substitutemeans any of the following—
This paragraph applies in the case of an accounting period of a company beginning before 1 April 2018 (“the transitional accounting period”) if— For the purposes of section 433 of TIOPA 2010 the company is treated as meeting the test (or tests) for the transitional accounting period. For the purposes of sections 438 and 440 to 442 of TIOPA 2010 such adjustments to the relevant amounts are to be made as are just and reasonable, having regard to the extent to which, but for this paragraph, the company would not have met the public infrastructure assets test, or the public infrastructure income test, for the transitional accounting period. For this purpose “the relevant amounts” means— Expressions used in this paragraph and in section 433 of TIOPA 2010 have the same meaning in this paragraph as they have in that section.
In Part 8B of CTA 2010, after section 357UQ insert—
Schedule 18 (serial tax avoidance) is amended as follows. In paragraph 51(8)(b) (partnerships: information) after “TMA 1970” insert “, or under equivalent provision made by regulations under paragraph 10 of Schedule A1 to that Act,”. In paragraph 52 (partnerships: special provision about taxpayer emendations)— In paragraph 53(1) (supplementary provision relating to partnerships)— In paragraph 58(1) (general interpretation), for the definition of “partnership return” substitute—.
A penalty under paragraph 1 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 paragraph 1—
Section 1216DB (use of losses in later periods) is amended as follows. In subsection (2) after “45” insert “ or 45B ”. In subsection (3) for “loss relief” substitute “ section 37 and Part 5 of CTA 2010 ”. In subsection (4) for “Subsection (5) applies” substitute “ Subsections (5) and (5A) apply ”. In subsection (5) after paragraph (a) insert— After subsection (5) insert—
In section 138 (deferment of balancing charge arising when there is a disposal event in respect of a ship: limit on amount of deferral) in subsection (2)(b) after “45” insert “ , 45A or 45B ”.
In section 93 (minimum profits test), in subsection (2), in the words after paragraph (b), for “and 124” substitute “ , 124, 124A and 124C ”.
Schedule 4 to CTA 2010 (index of defined expressions) is amended as follows. In the entry for “Northern Ireland expenditure”— qualifying expenditure (in Chapter 14B of Part 8B) section 357UR(2) the separate exhibition trade (in Chapter 14B of Part 8B) section 357UR(2)
Schedule 19 (large businesses: tax strategies and sanctions) is amended as follows. In paragraph 12(5) (definition of “representative partner”)— In paragraph 13 (definition of “financial year”) in paragraph (c) for “under a return issued under section 12AB” substitute “within the meaning of”.
Section 1216DC (terminal losses) is amended as follows. In subsection (1)(c)— In subsection (3) for the words after “treated” to the end substitute— In subsection (6) for the words after “treated” to the end substitute— After subsection (7) insert—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In section 104 (meaning of “the adjusted amount”)—
in subsection (3), after “124” insert “ , 124A or 124C ”;
in subsection (4), for “that section” substitute “ any of those sections ”;
in subsection (5)(a), for “or no relief is available under that section,” substitute “ , 124A or 124C or no relief is available under those sections, ”.
In section 125 (group relief), at the end insert—
Section 126 (restrictions in respect of non-trading deficit) is amended as follows. After subsection (1) insert— In subsection (2)—
In section 127 (no relief against policyholders' share of I-E profit), in subsection (3)—
before paragraph (a) insert—;
after paragraph (c) insert—.
Part 15C of CTA 2009 (theatrical productions) is amended as follows.
Part 14 of CTA 2010 (change in company ownership) is amended as follows.
In section 484 of TIOPA 2010, subsection (5) (which requires the date specified in an election under subsection (3) of that section to be on or after the day on which the election is made) does not apply in relation to an election made on or before 31 March 2018. In section 486 of that Act, subsection (5)(a) (which requires an election under that section to be made before the end-day of the new period of account) does not apply in relation to an election made on or before 31 March 2018.
For the purposes of Part 10 of TIOPA 2010 a debit or credit to which this paragraph applies is to be ignored. This paragraph applies to a debit or credit if—
In Schedule A1 to CAA 2001 (first-year tax credits), in paragraph 11(4), omit the “and” at the end of paragraph (f) and after paragraph (g) insert , and
Paragraphs 15 to 18 apply where P makes a quasi-loan to a relevant person by reason of acquiring a right to a payment in a particular currency (the “quasi-loan currency”). For the purposes of paragraphs 15 to 18, the value of an amount in a particular currency is to be determined by reference to an appropriate spot rate of exchange.
Chapter 2 of Part 7A of ITEPA 2003 does not apply by reason of a relevant step within paragraph 1 which is treated as being taken by a person (“P”) if— For the purposes of sub-paragraph (1)(d)(i)— This sub-paragraph applies if any feature of the package of benefits mentioned in sub-paragraph (1)(d)(ii) had or would have been likely to have had the effect that, of the employees of B to whom the package was available, it is employees within sub-paragraph (4) on whom benefits under the package will be wholly or mainly conferred. The employees within this sub-paragraph are— For the purposes of sub-paragraph (1)(d) and (e) a transaction is “similar” if it is of the same or a similar type to the transaction which P has or had with A. In this paragraph references to A include references to any person linked with A. In this paragraph “pension scheme” has the same meaning as in Part 4 of FA 2004 (see section 150(1) of that Act).
In this Schedule, “tax avoidance arrangement” has the same meaning as it has for the purposes of Part 7A of ITEPA 2003 (see section 554Z(13) to (15) of that Act). Section 554Z(16) (determining whether a step is connected with a tax avoidance arrangement) applies for the purposes of this Schedule as it applies for the purposes of Part 7A of ITEPA 2003.
A penalty is payable by a person (“P”) who— In this Schedule references to a “contravention” are to acting as mentioned in sub-paragraph (1).
A person who fails to comply with— is liable to a penalty not exceeding the relevant sum. The relevant sum is £5,000 in respect of each scheme to which the failure relates unless the person falls within sub-paragraph (3) or (4). If the person has previously failed to comply with paragraph 26(1) or regulations under paragraph 26(3) on one (and only one) occasion during the period of 36 months ending with the date on which the current failure began, the relevant sum is £7,500 in respect of each scheme to which the current failure relates (whether or not the same as any scheme to which the previous failure relates). If the person has previously failed to comply with paragraph 26(1) or regulations under paragraph 26(3) on two or more occasions during the period of 36 months ending with the date on which the current failure began, the relevant sum is £10,000 in respect of each scheme to which the current failure relates (whether or not the same as any scheme to which any of the previous failures relates). In this paragraph “scheme” means any notifiable arrangements.
Where a person is found liable for a penalty under paragraph 1 HMRC must— A penalty 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— A supplementary assessment may be made in respect of a penalty if an earlier assessment operated by reference to an underestimate of the liability to tax that would have been shown in a return. Sub-paragraph (6) applies if— HMRC may amend the assessment so that it is based upon the correct amount. But an amendment under sub-paragraph (6)—
Where by reason of any conduct a person— that conduct does not give rise to liability to a penalty under paragraph 1. In sub-paragraph (1) the reference to a penalty otherwise than under paragraph 1— But the aggregate of— must not exceed 200% of that liability to tax. In sub-paragraph (1) “conduct” includes a failure to act.
Schedule 21 to FA 2015 (penalties in connection with offshore asset moves) is amended as follows. In paragraph 2 (original penalties triggering penalties under Schedule 21) omit “and” after paragraph (b) and after paragraph (c) insert , and and terms used in paragraph (d) have the same meaning as in Schedule 18 to FA 2017. Where the original penalty is under paragraph 1 of Schedule 18 to FA 2017, the relevant time is the time when that Schedule comes into force.
Section 1217MA (restriction on use of losses before completion period) is amended as follows. In subsection (1) for “Subsection (2)” substitute “ This section ”. In subsection (2)— After subsection (2) insert—
In section 672 (overview of Part) after subsection (1) insert—
This paragraph applies in relation to the quasi-loan if the quasi-loan currency is a currency other than sterling. But this paragraph does not apply if paragraph 18 applies in relation to the quasi-loan. The amount of the quasi-loan that is outstanding, at the time P is treated as taking the relevant step, is to be calculated in sterling as follows— Step 1 Calculate, in the quasi-loan currency, the amount that is outstanding at that time. Step 2 Take the value in sterling, at that time, of that amount. See paragraph 16 for provision about repayments made in a currency other than the quasi-loan currency.
In section 554G of ITEPA 2003 (exclusions: transactions under employee benefit packages), at the end insert—
See section 554A(1)(a) of ITEPA 2003 for the meaning of “A” and “B”.
An assessment of a penalty under paragraph 1 in respect of uncorrected relevant offshore tax non-compliance must be made before the end of the relevant period for that non-compliance. If the non-compliance consists of a failure to notify chargeability, the relevant period is the period of 12 months beginning with— If the non-compliance consists of a failure to submit a return or other document, the relevant period is the period of 12 months beginning with— If the non-compliance consists of making and delivering a tax document containing an inaccuracy, the relevant period is the period of 12 months beginning with— In this paragraph references to the appeal period are to the period during which—
Section 1217MB (use of losses in the completion period) is amended as follows. In subsection (1) after “45” insert “ or 45B ”. In subsection (2) for “loss relief” substitute “ section 37 and Part 5 of CTA 2010 ”.
Section 673 (introduction to Chapter 2: disallowance of trading losses) is amended as follows. In subsection (2), for “of 3 years in which the change in ownership” substitute “ beginning no more than 3 years before the change in ownership occurs which is a period of 5 years in which that change ”. In subsection (4), in the words after paragraph (b), for “3” substitute “ 5 ”. The amendments made by this paragraph do not have effect unless both the change in ownership referred to in section 673(1) and the major change in the nature or conduct of a trade referred to in section 673(2) occur on or after 1 April 2017.
Section 1217MC (terminal losses) is amended as follows. In subsection (1)(b) after “45” insert “ or 45B ”. In subsection (3) for the words after “treated” to the end substitute— In subsection (6) for the words after “treated” to the end substitute— After subsection (8) insert—
Section 674 (disallowance of trading losses) is amended as follows. In subsection (2), after “45” insert “ , 45B, 303B or 303D ”. After subsection (2) insert—
After section 674 insert—
After Chapter 2 insert—
After Chapter 2A insert—
After Chapter 2B insert—
After Chapter 2C insert—
After Chapter 2D insert—
Section 677 (introduction to Chapter 3) is amended as follows. In subsection (3), for “6” substitute “ 8 ”. In subsection (5), for “6” substitute “ 8 ”. The amendments made by this paragraph do not have effect unless both the change in ownership referred in section 677(1) and the major change in the nature or conduct of a business referred to in section 677(3) occur on or after 1 April 2017.
Section 681 (restriction on relief for non-trading loss on intangible fixed assets) is amended as follows. In subsection (3)(b), for “debit of” substitute “ loss on intangible fixed assets for ”.
Section 685 (apportionment of amounts) is amended as follows. In subsection (2), in column 1 of row 4 in the table, for the words from “of CTA 2009” to the end substitute “, 463G(6) or 463H(4) of CTA 2009. In subsection (2), in column 1 of row 6 of the table, for “debit of” substitute “ loss on intangible fixed assets for ”. Where the change in ownership referred to in section 677(1) occurs before 13 July 2017 this paragraph has effect as if sub-paragraph (2) provided as follows—
In section 690 (meaning of “significant increase in the amount of a company's capital: amount B), in subsection (3) for “3” substitute “ 5 ”. The amendment made by this paragraph does not have effect unless the change in ownership referred in section 677(1) occurs on or after 1 April 2017.
Section 692 (introduction to Chapter 4) is amended as follows. In subsection (1), for paragraph (b) substitute— In subsection (4)(a), for “3” substitute “ 5 ”. After subsection (4) insert— In subsection (7), in the definition of “the relevant gain”, for “within subsection (4)(a) or (b)” substitute “ (or amount of a gain) within subsection (4)(a) or (b) or (4A) ”. The amendments made by this paragraph do not have effect unless the change in ownership referred to in section 692(1) occurs on or after 1 April 2017.
In section 696 (restriction of debits to be brought into account), in subsection (4)(b), after “461” insert “ or 463B(1)(a) ”.
Section 702 (apportionment of amounts) is amended as follows. In subsection (2), in column 1 of row 5 of the table, for the words from “of CTA 2009” to the end substitute “, 463G(6) or 463H(4) of CTA 2009. In subsection (2), in column 1 of row 7 of the table, for “debit of” substitute “ loss on intangible fixed assets for ”. Where the change in ownership referred to in section 692(1) occurs before 13 July 2017 this paragraph has effect as if sub-paragraph (2) provided as follows—
Section 704 (company carrying on UK property business) is amended as follows. In subsection (2), for “3” substitute “ 5 ”. In subsection (10), in the words after paragraph (b), for “3” substitute “ 5 ”. The amendments made this paragraph do not have effect unless both the change in ownership referred in section 704(1) and the major change in the nature or conduct of a trade or business referred to in section 704(2) occur on or after 1 April 2017.
Section 705 (company carrying on overseas property business) is amended as follows. In subsection (2), for “3” substitute “ 5 ”. In subsection (9), in the words after paragraph (b), for “3” substitute “ 5 ”. The amendments made by this paragraph do not have effect unless both the change in ownership referred in section 705(1) and the major change in the nature or conduct of a trade or business referred to in section 705(2) occur on or after 1 April 2017.
In section 719 (meaning of “change of ownership of a company”), after subsection (4) insert—
In section 721 (when things other than ordinary share capital may be taken into account), in subsection (4), in the words before paragraph (a), after “2,” insert “ 2A, 2B, 2C, 2D, ”.
In section 727 (extended time limit for assessment) for “3” substitute “ 5 ”.
Part 8 of CTA 2010 (oil activities) is amended as follows.
After section 303 insert—
Section 304 (losses) is amended as follows. After subsection (1) insert— In subsection (5), after “45” insert “ 45B, 303B(4) or 303D(5) ”. After subsection (6) insert—
Section 305 (group relief) is amended as follows. In the heading, at the end insert “ and group relief for carried-forward losses ”. After subsection (1) insert— For subsection (4) substitute—
In section 307 (overview of Chapter 5 of Part 8: ring fence expenditure supplement) in subsection (6) for paragraph (c) substitute—.
Section 321 (supplement in respect of a post-commencement period) is amended as follows. In subsection (2) (treatment of supplement as loss etc)— After subsection (2) insert—
Section 323 (meaning of “ring fence losses”) is amended as follows. In subsection (1)— In subsection (2) for “used” substitute “ carried forward ”.
For section 327 substitute—
In section 328A (adjustment of pool to remove pre-2013 losses after the initial 6 periods) in subsection (11)—
in paragraph (a) for the words from the beginning to “a loss” substitute “ no account is to be taken of a loss in determining under section 327(4) the relevant amount for a post-commencement period ”, and
in paragraph (b) for the words from “ring fence losses” to the end substitute “ any such profits are reduced by the use under section 45, 45B, 303B, 303C and 303D of ring fence losses that are not represented by the reduction ”.
Part 8ZA of CTA 2010 (oil contractors) is amended as follows.
Section 356NE (losses) is amended as follows. The existing text becomes subsection (1) of that section. In subsection (1)— After subsection (1) insert—
Section 356NF (group relief) is amended as follows. In the heading, at the end insert “ and group relief for carried-forward losses ”. After subsection (3) insert— For subsection (4) substitute—
After section 356NG insert—
Chapter 1 of Part 22 of CTA 2010 (transfers of trade without a change of ownership) is amended as follows.
In section 940A (overview of Chapter) in subsection (4) for “944” substitute “ 943A ”.
Before section 944 (but after the italic heading preceding that section) insert—
Section 944 (modified application of Chapter 2 of Part 4) is amended as follows. In the heading for “Chapter 2 of Part 4” substitute “ section 45 ”. Omit subsections (1) and (2). In subsection (3)— In subsection (4) after paragraph (a) insert—.
After section 944 insert—
In section 945 (cases in which predecessor retains more liabilities than assets) in subsection (4), for “section 944(3)” (in both places where those words occur) substitute “ sections 944 to 944E ”.
Section 951 (part of trade treated as separate trade) is amended as follows. After subsection (6) insert—
In section 952 (apportionment if part of trade treated as separate trade) in subsection (1) for “or (4)” substitute “ , (4) or (8) ”.
Part 8B of CTA 2010 (trading profits taxable at the Northern Ireland rate) is amended as follows.
In the italic heading before section 357JB for “section 37” substitute “ Chapter 2 of Part 4 ”.
For sections 357JB to 357JE substitute—
After section 357JH insert—
In section 357JJ (restricted deduction: Northern Ireland rate lower than main rate)—
in subsection (1) for “357JC(2), 357JE(2) or 357JG(2)” substitute “ 357JC(2) or (4), 357JG(2) or 357JHB(2) ”, and
in subsection (6) for “section 357JC(1), 357JE(1) or 357JG(1)” substitute “ 357JC(1) or (3), 357JG(1) or 357JHB(1) ”.
In section 357RF (losses of film trade: restriction on use of losses while film is in production) in subsection (2) for “subsection (2)” substitute “ subsections (2) and (3) ”.
In section 357RG (losses of film trade: use of losses in later periods) in subsection (3) after “subsections (5)” insert “ , (5A) ”.
In section 357SF (losses of television programme trade: restriction on use of losses while programme in production) in subsection (2) for “subsection (2)” substitute “ subsections (2) and (3) ”.
In section 357SG (losses of television programme trade: use of losses in later periods) in subsection (3) after “subsections (5)” insert “ , (5A) ”.
In section 357TF (losses of video game trade: restriction on use of losses while video game in development) in subsection (2) for “subsection (2)” substitute “ subsections (2) and (3) ”.
In section 357TG (losses of video game trade: use of losses in later periods) in subsection (3) after “subsections (5)” insert “ , (5A) ”.
In section 357UF (losses of theatrical trade: restriction on use of losses before completion period) in subsection (2) for “subsection (2)” substitute “ subsections (2) and (3) ”.
In section 357UO (losses of orchestral trade: restriction on use of losses before completion period) in subsection (2) for “subsection (2)” substitute “ subsections (2) and (3) ”.
In paragraph 10 of Schedule 9 to F(No.3)A 2010 (interest), the new Part A1 to be inserted into Schedule 54 to FA 2009 is amended as follows. In paragraph A1 (interest on tax repaid as a result of carrying back a non-trading deficit on company's loan relationships)— After paragraph A2 insert— In paragraph A3 (interest on tax repaid as a result of a claim under section 77 of TIOPA 2010) in sub-paragraph (4) after “A4” insert “ or A5 ”. After paragraph A4 insert—
Nothing in this paragraph affects the operation of any provision of Part 10 of TIOPA 2010 (corporate interest restriction).
This paragraph applies in relation to section 461 of TIOPA 2010. Section 461 applies in relation to arrangements whenever entered into. Arrangements are not “relevant avoidance arrangements” for the purposes of section 461 so far as— If an accounting period begins before 1 April 2017 and ends on or after that date, sub-paragraph (3) is to have effect as if so much of the accounting period as falls before that date, and so much of that period as falls on or after that date, were treated as separate accounting periods. Arrangements are not “relevant avoidance arrangements” for the purposes of section 461 if the obtaining of any tax advantages that would otherwise arise from them can reasonably be regarded as arising wholly from commercial restructuring arrangements entered into in connection with the commencement of Part 10 of TIOPA 2010. For this purpose “commercial restructuring arrangements” means— This paragraph is to be read as if it formed part of section 461.
ITEPA 2003 is amended in accordance with this paragraph. In section 554A(2) (meaning of “relevant step”), after “or 554D” insert “, or paragraph 1 of Schedule 11 to F(No. 2)A 2017”. In section 554A(4) (relevant step taken on or after A’s death), in paragraph (a) after “section 554B taken” insert “, or a relevant step within paragraph 1 of Schedule 11 to F(No.2)A 2017 which is treated as being taken,”. In section 554Z(9) (interpretation: reference to definition of “relevant step”), at the end insert “, but see also Schedule 11 to F(No. 2)A 2017”. In section 554Z(10) (interpretation: relevant step which involves a sum of money) omit “or” at the end of paragraph (b) and after paragraph (c) insert , or In section 554Z5 of ITEPA 2003 (overlap with money or asset subject to earlier tax liability), at the end insert—
In paragraph 12(2) of Schedule 18 to FA 1998 (information about business carried on in partnership) for “statement under section 12AB of” substitute “partnership statement within the meaning of”.
In section 217(2) of ITTOIA 2005 (conditions for basis period to end with new accounting date)—
in paragraph (a)—
after “TMA 1970” insert “, or of regulations under that Act,” and
after “or 12AA of” insert “, or regulations under paragraph 10 of Schedule A1 to,”;
in paragraph (b) for “provision” substitute “section or paragraph”.
Schedule 36 to FA 2008 (information and inspection powers) is amended as follows. In paragraph 21(1) (taxpayer notices) after “12AA of” insert “, or regulations under paragraph 10 of Schedule A1 to,”. In paragraph 37(2)(a) (partnerships) after “section 12AA of” insert “, or regulations under paragraph 10 of Schedule A1 to,”.
For the purposes of paragraph 7 a person is a “manager” of the arrangements if that person— Where— that person is not because of anything done in the course of facilitating that withdrawal to be regarded as to any extent responsible for the organisation or management of the arrangements.
For the purposes of paragraph 7 a person is a “financial enabler” in relation to the arrangements if— In this paragraph “a relevant party” means T or an enabling participant in the arrangements within the meaning given by paragraph 11. Any reference in this paragraph to a person’s providing a financial product to a relevant party includes (but is not limited to) the person’s doing any of the following— and references to obtaining a financial product are to be read accordingly. The Treasury may by regulations amend sub-paragraph (3).
HMRC may in their discretion reduce a penalty under paragraph 1. In this paragraph the reference to reducing a penalty includes a reference to—
Schedule 36 to FA 2008 (information and inspection powers) applies for the purpose of checking a relevant person’s position as regards liability for a penalty under paragraph 1 as it applies for checking a person’s tax position, subject to the modifications in paragraphs 41 to 43. In this paragraph and paragraphs 41 to 43—
The Treasury may by regulations amend this Part of this Schedule so as to alter any of the following—
the figure for the time being specified in paragraph 46(2);
the sum for the time being specified in paragraph 46(3);
any period for the time being specified in paragraph 47(1)(b) or (4).
Section 20
In TIOPA 2010, after Part 9A insert—
In TIOPA 2010, after Schedule 7 insert—
Section 21
After Part 15D of CTA 2009 insert—
Any power to make regulations conferred on the Treasury by virtue of this Schedule comes into force on the day on which this Act is passed.
The amendments made by the following provisions of this Schedule have effect in relation to accounting periods beginning on or after 1 April 2017— Sub-paragraph (3) applies where a company has an accounting period beginning before 1 April 2017 and ending on or after that date (“the straddling period”). For the purposes of Part 15E of CTA 2009—
Section 4 of CT(NI)A 2015 (power to make consequential amendments) has effect as if paragraphs 16 to 18 of this Schedule were contained in that Act. Section 5(4) to (6) of CT(NI)A 2015 (commencement) has effect as if—
Section 25
In section 357IA of CTA 2010 (power of Northern Ireland Assembly to set Northern Ireland rate), for “Minister of Finance and Personnel” substitute “Minister of Finance”.
In section 357QB(5)(b) of that Act (tax credit: entitlement), for “Chapter 2” substitute “land remediation”.
Paragraph 2 of Schedule A1 to CAA 2001 (amount of first-year tax credit) is amended as follows. The Treasury may by regulations amend sub-paragraph (1)— In sub-paragraph (5), for “An order” substitute “Regulations”.
In consequence of paragraph 28, in the Corporation Tax (Northern Ireland) Act 2015, in Schedule 1, omit paragraph 10.
Any power to make regulations under Part 8B of CTA 2010 by virtue of Part 1 or 2 of this Schedule may be exercised on or after the day on which this Act is passed. Section 4 of CT(NI)A 2015 (power to make consequential amendments) has effect as if Parts 1 and 2 of this Schedule were contained in that Act. Section 5(4) to (6) of CT(NI)A 2015 (commencement) has effect as if—
Section 29
This paragraph applies to the disposal of an asset by an individual (“P”) where— The relevant period is the period which— P is a qualifying individual if— The relevant tax years are— In computing, for the purpose of TCGA 1992, the gain or loss accruing on the disposal, it is to be assumed that P acquired the asset on 5 April 2017 for a consideration equal to its market value on that date. Sub-paragraph (5) applies notwithstanding section 58(1) of TCGA 1992 (disposals between spouses). Where under section 127 of TCGA 1992 (including that section as applied by sections 132, 135 and 136 of that Act) an original and a new holding of shares or other securities are treated as the same asset, the condition in sub-paragraph (1)(c) applies to both the original and the new holding. This Part of this Schedule has effect as if it were included in TCGA 1992.
This paragraph applies for the purposes of paragraph 41(1)(c) in the case of an asset which, having been situated outside the United Kingdom, becomes situated in the United Kingdom before the end of the relevant period. The asset is to be regarded as not situated in the United Kingdom at a time in the relevant period when— The asset is to be regarded as not situated in the United Kingdom at any time in the relevant period if it is brought to, or received or used in, the United Kingdom in circumstances in which section 809L(2)(a) of ITA 2007 applies but— Section 809M(3)(a) and (b) of ITA 2007 (persons living together) apply for the purposes of sub-paragraph (2)(d)(i).
An individual may make an election for paragraph 41 not to apply to a disposal made by the individual. Sections 42 and 43 of TMA 1970 (procedure and time limit for claims), except section 42(1A) of that Act, apply in relation to an election under this paragraph as they apply in relation to a claim for relief. An election under this paragraph is irrevocable. All such adjustments are to be made, whether by way of discharge or repayment of tax, the making of assessments or otherwise, as are required to give effect to an election under this paragraph.
This paragraph applies for the purposes of the application of section 809Q(3) of ITA 2007 in relation to an individual (“P”). Section 809R(4) of ITA 2007 does not apply to an offshore transfer from a mixed fund where— P is a qualifying individual if— An offshore transfer to which sub-paragraph (2) applies is to be treated as containing such amount of such kind or kinds of income and capital in the mixed fund immediately before the transfer as may be specified in the nomination under sub-paragraph (2)(d). An amount of a kind of income or capital specified under sub-paragraph (4) may not exceed the amount of that kind which is in the mixed fund immediately before the transfer. In this paragraph “mixed fund” and “offshore transfer” have the same meanings as in section 809R(4) of ITA 2007.
This paragraph applies to a transfer made by a person (“P”) from a mixed fund where— P is a qualifying individual if— A transfer to which this paragraph applies is to be treated as containing such amount of such kind or kinds of income or capital in the mixed fund immediately before the transfer (for example, income or chargeable gains for a particular tax year) as may be specified in the nomination under sub-paragraph (1)(e). An amount of a kind of income or capital specified under sub-paragraph (3) may not exceed the amount of that kind which is in the mixed fund immediately before the transfer. In this paragraph and paragraph 46—
This paragraph applies to determine, for the purposes of paragraph 45, the composition of the mixed fund referred to in paragraph 45(1). Sub-paragraphs (3) to (5) apply where a transfer of money is made before 6 April 2008 from the mixed fund to another overseas account. Take the following Steps— Step 1. Calculate the total amount of income and chargeable gains in the mixed fund immediately before the transfer (“the total income and gains”). Step 2. Calculate what proportion of the total income and gains is income and what proportion is chargeable gains. If the amount transferred does not exceed the total income and gains, the transfer is to be treated as if it consisted of income and chargeable gains in the proportions found under Step 2 in sub-paragraph (3). If the amount transferred exceeds the total income and gains, the transfer is to be treated as if it consisted of— Sub-paragraphs (7) and (8) apply where— Take the following Steps— Step 1. Calculate the total amount of income and chargeable gains in the other overseas account immediately before the transfer (“the total income and gains”). Step 2. Calculate what proportion of the total income and gains is income and what proportion is chargeable gains. The transfer is to be presumed to consist of income and chargeable gains in the proportions found under Step 2 in sub-paragraph (7). For the purposes of Steps 1 and 2 in sub-paragraph (7), if there is insufficient evidence to say that an amount is income or that it is chargeable gains, treat it as income.
Section 31
Section 33
Section 34
In paragraphs 7 to 10 “the loan currency”, in relation to a loan, means the currency in which the initial principal amount of the loan is denominated (whether or not that amount is paid in that currency). For the purposes of paragraphs 7 to 10, the value of an amount in a particular currency is to be determined by reference to an appropriate spot rate of exchange.
A designated HMRC officer may make a referral under this paragraph if— But a referral may not be made under this paragraph if a GAAR final decision notice (within the meaning of paragraph 24(1)) has already been given in relation to— A referral under this paragraph is a referral to the GAAR Advisory Panel of the question whether the entering into and carrying out of tax arrangements such as are described in the referral statement (see paragraph 27) is a reasonable course of action in relation to the relevant tax provisions.
A referral under paragraph 26 must (as well as being accompanied by the referral statement under paragraph 27) be accompanied by—
a declaration that, as far as HMRC are aware, nothing which is material to the GAAR Advisory Panel’s consideration of the matter has been omitted from that statement,
a copy of each notice given under paragraph 28 by HMRC in relation to the referral,
a copy of any representations received under paragraph 28 and any comments that HMRC wish to make in respect of those representations, and
a copy of each notice given under paragraph 31 by HMRC.
Where a referral is made to the GAAR Advisory Panel under paragraph 26, the Chair must arrange for a sub-panel consisting of 3 members of the GAAR Advisory Panel (one of whom may be the Chair) to consider it. The sub-panel may invite— (or both) to supply the sub-panel with further information within a period specified in the invitation. Invitations must explain the effect of sub-paragraph (4) or (5) (as appropriate). If a person invited under sub-paragraph (2)(a) supplies information to the sub-panel under this paragraph, that person must at the same time send a copy of the information to the designated HMRC officer. If a designated HMRC officer supplies information to the sub-panel under this paragraph, the officer must at the same time send a copy of the information to each person to whom notice under paragraph 28 was given.
This paragraph applies in relation to a loan where the loan currency is a currency other than sterling. But this paragraph does not apply if paragraph 10 applies in relation to the loan. The amount of the loan that is outstanding, at the time P is treated as taking the relevant step, is to be calculated in sterling as follows— Step 1 Calculate, in the loan currency, the amount that is outstanding at that time. Step 2 Take the value in sterling, at that time, of that amount. See paragraph 8 for provision about repayments made in a currency other than the loan currency.
In this Part of this Schedule “the referral statement”, in relation to a referral under paragraph 26, means a statement made by a designated HMRC officer which— A statement under this paragraph must—
The sub-panel must produce— The sub-panel must give a copy of the opinion notice or notices to the designated HMRC officer. An opinion notice is a notice which states that in the opinion of the members of the sub-panel, or one or more of those members— and the reasons for that opinion. In forming their opinions for the purposes of sub-paragraph (3) members of the sub-panel must— For the purposes of the giving of an opinion under this paragraph, the arrangements are to be assumed to be tax arrangements. For the purposes of this Schedule—
Section 35
Section 55
Section 61
TMA 1970 is amended as follows.
Section 7 (notice of liability) is amended as follows. In subsection (1A) for the words from “under section 8” to the end substitute “to file under section 8 for the year of assessment”. In subsection (1B)(a) for the words from “under section 8” to “gains” substitute “to file under section 8 for the year of assessment”. In subsection (7) for “section 9” substitute “section 8 or 8A”.
Section 8 (personal return) is amended as follows. For the heading substitute “Notices to file: persons other than trustees”. For subsection (1) substitute— In subsection (1AA)(a) for “return” substitute “information filed in response to the notice to file or in any end of period statement for the year of assessment provided to HMRC by the person”. After subsection (1AA) insert— In subsection (1B)— In subsection (1C)— For subsection (1D) substitute— In subsection (1F) for “a return” substitute “the return”. In subsection (1G) for “a return” substitute “the return”. After subsection (1H) insert— For subsection (2) substitute— In subsections (3), (4) and (4A) for “under this section” substitute “to file”. In subsection (4B) for the words from “may” to “income” substitute “to file may require the information filed in response”. After subsection (5) insert—
Section 8A (trustee’s return) is amended as follows. For the heading substitute “Notices to file: trustees”. For subsection (1) substitute— In subsection (1AA)(a) for “return” substitute “information filed in response to the notice to file or in any end of period statement for the year of assessment provided to HMRC by the relevant trustees”. After subsection (1AA) insert— For subsection (1B) substitute— In subsection (1D) for “a return” substitute “the return”. In subsection (1E) for “a return” substitute “the return”. After subsection (1F) insert— For subsection (2) substitute— In subsections (3) and (4) for “under this section” substitute “to file”. After subsection (5) insert—
In section 8B (withdrawal of notice under section 8 or 8A)—
in the heading after “notice” insert “to file”;
in subsection (1) after “notice” insert “to file”.
Section 9 (returns to include self-assessment) is amended as follows. For the heading substitute “Self-assessment required by a notice to file”. In subsection (1) for the words from the beginning to “say—” substitute “Subject to subsection (1A), the self-assessment required by virtue of subsection (1AB)(a) of section 8 or 8A from a person given a notice to file for a year of assessment is—”. In subsection (2) for “to comply with subsection (1) above” substitute “by virtue of section 8 or 8A to make and file a self-assessment”. In subsection (3) for the words from “, a person” to “above” substitute “required by virtue of section 8 or 8A, a person does not include a self-assessment”. In subsection (3A) after “self-assessment” insert “under section 8 or 8A”.
Section 12ZH (NRCGT returns and self-assessment: section 8) is amended as follows. In subsection (3) for the words from “required” to “return” substitute “given a notice to file”. In subsection (4) after “(1G)” insert “and (1HA)”. In subsections (5) and (6) omit “, for the purposes set out in section 9(1),”. In subsection (8)(b) for “section 9” substitute “section 8”. In subsection (10) for “section 9” substitute “section 8”. In subsection (11) for “section 9” substitute “section 8”.
Section 12ZI (NRCGT returns and self-assessment: section 8A) is amended as follows. In subsection (3) for the words from “required” to “return” substitute “given a notice to file”. In subsection (4)(b) after “(1E)” insert “and (1FA)”. In subsections (5) and (6) omit “, for the purposes set out in section 9(1),”. In subsection (8)(b) for “section 9” substitute “section 8A”. In subsection (10) for “section 9” substitute “section 8A”. In subsection (11) for “section 9” substitute “section 8A”.
In section 12AA(10A) (definitions) for ““partnership return”” substitute ““section 12AA partnership return””.
In section 12AB(1) (partnership return to include partnership statement) in the words before paragraph (a) after “Every” insert “section 12AA”.
Section 12ABA (amendment of partnership return by taxpayer) is amended as follows. In subsection (1)— In subsection (4) after “date”” insert “, in relation to a section 12AA partnership return,”. After subsection (4) insert—
Section 12ABB (HMRC power to correct partnership return) is amended as follows. In subsection (2), for the words from “by notice” to the end substitute— In subsection (4) for the words from “the person” to the end substitute notice rejecting the correction is given—
Section 12AC (notice of enquiry into partnership return) is amended as follows. In subsection (1)— In subsection (7)—
Section 12B (records to be kept for purposes of returns) is amended as follows. For subsection (1) substitute— In subsection (2) for “day referred to in subsection (1) above is” substitute “relevant day is (subject to subsection (2ZB))”. After subsection (2) insert— In subsection (2A)— In subsection (3)(a) for “(1)” substitute “(1A)”. In subsection (4)— In subsection (5) for “(1)” substitute “(1A)”.
In section 28ZA(6) (referral of questions during enquiry)—
in paragraph (b) after “of this Act” insert “into a section 12AA partnership return”;
after paragraph (b) insert—
In section 28B(8) (completion of enquiry into partnership return) for the words from “the person” to the end substitute—
In section 28C(3) (determination of tax where no return delivered) for “section 9” substitute “section 8 or 8A”.
In section 28H(2)(b) (simple assessments)—
for the words “to make and deliver such a return” substitute “imposed”;
after “notice” insert “to file”.
In section 28I(2)(b) (simple assessments for trustees)—
for the words “to make and deliver such a return” substitute “imposed”;
after “notice” insert “to file”.
Section 29 (assessment where loss of tax discovered) is amended as follows. In subsection (2) at the end insert “(or, where the error or mistake is in an end of period statement forming part of the return, if that statement was provided on the basis of or in accordance with the practice generally prevailing at the time when it was provided). In subsection (6) after paragraph (a) insert—.
In section 30B(10) (amendment of partnership statement where loss of tax discovered) at the end insert “or (in relation to a Schedule A1 partnership return) the nominated partner”.
Section 42 (procedure for making claims) is amended as follows. In subsection (2)— In subsection (9) after “of this Act” insert “or a Schedule A1 partnership return”. In subsection (11)(a) after “of this Act” insert “or a Schedule A1 partnership return”.
Section 59A (payments on account of income tax) is amended as follows. In subsection (1)(a) for “section 9” substitute “section 8 or 8A”. In subsection (4A)(a) for “section 9” substitute “section 8 or 8A”.
Section 59B (payment of income tax and capital gains tax: assessments other than simple assessments) is amended as follows. In subsection (1)(a) for “section 9” substitute “section 8 or 8A”. In subsection (4A) for “section 9” substitute “section 8 or 8A”. In subsection (5A) for “section 9” substitute “section 8 or 8A”. In subsection (6) for “section 9” substitute “section 8 or 8A”.
Section 106C (offence of failing to deliver a return) is amended as follows. In subsection (1)— In subsection (2) for “the return” substitute “a return under section 8”.
In section 106D(1) (offence of making inaccurate return)—
for “required by a notice under section 8 to make and deliver a return” substitute “given a notice to file under section 8”;
in paragraph (a) after “return” insert “under that section”.
In section 106E (exclusions from offences under sections 106B to 106D) for “or make and deliver the return” substitute “under section 7, or is given the notice to file under section 8,”.
In section 107A(2)(a) (trustee liability for penalties) after “section 12B of this Act” insert “or paragraph 12 of Schedule A1 to this Act”.
In section 118(1) (interpretation)—
after the definition of “CTA 2010” insert—;
after the definition of “ITA 2007” insert—
a section 12AA partnership return, or a Schedule A1 partnership return;
after the definition of “partnership return” insert—
after the definition of “return” insert—;
in the definition of “successor” after “delivered, a” insert “section 12AA”.
Paragraph 3 of Schedule 1AB (recovery of overpaid tax) is amended as follows. In sub-paragraph (2)(a) after “of this Act” insert “or a Schedule A1 partnership return”. In sub-paragraph (3)(a) after “12AA” insert “or a Schedule A1 partnership return”. In sub-paragraph (4) at the end insert “or a Schedule A1 partnership return”.
Section 63
Section 65
Where— a penalty is payable by each person who enabled the arrangements.
a person (“T”) has entered into abusive tax arrangements, and
T incurs a defeat in respect of the arrangements,
Parts 2 to 4 of this Schedule define— “abusive tax arrangements”; a “defeat in respect of the arrangements”; a “person who enabled the arrangements”. The other Parts of this Schedule make provision supplementing paragraph 1 as follows—
Arrangements are “tax arrangements” for the purposes of this Schedule if, having regard to all the circumstances, it would be reasonable to conclude that the obtaining of a tax advantage was the main purpose, or one of the main purposes, of the arrangements. Tax arrangements are “abusive” for the purposes of this Schedule if they are arrangements the entering into or carrying out of which cannot reasonably be regarded as a reasonable course of action in relation to the relevant tax provisions, having regard to all the circumstances. The circumstances to which regard must be had under sub-paragraph (2) include— Where the tax arrangements form part of any other arrangements regard must also be had to those other arrangements. Each of the following is an example of something which might indicate that tax arrangements are abusive— but a result mentioned in paragraph (a), (b) or (c) is to be taken to be such an example only if it is reasonable to assume that such a result was not the anticipated result when the relevant tax provisions were enacted. The fact that tax arrangements accord with established practice, and HMRC had, at the time the arrangements were entered into, indicated their acceptance of that practice, is an example of something which might indicate that the arrangements are not abusive. The examples given in sub-paragraphs (5) and (6) are not exhaustive. In sub-paragraph (5) the reference to income includes earnings, within the meaning of Part 1 of the Social Security Contributions and Benefits Act 1992 or Part 1 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992.
Condition B is that (in a case not falling within Condition A)— For the purposes of this paragraph an assessment “counteracts” the expected tax advantage if the assessment is on a basis which prevents T from obtaining (or obtaining the whole of) the expected tax advantage. For the purposes of this paragraph a counteraction is “final”— In sub-paragraph (3) a “relevant contract settlement” means a contract settlement on a basis which prevents T from obtaining (or obtaining the whole of) the expected tax advantage.
For each person who enabled the arrangements mentioned in paragraph 1, the penalty payable under paragraph 1 is the total amount or value of all the relevant consideration received or receivable by that person (“the person in question”). Particular consideration is “relevant” for the purposes of this paragraph if— For the purposes of this paragraph a thing done by a person “enabled” the arrangements mentioned in paragraph 1 if, by doing that thing (alone or with anything else), the person fell within the definition in Part 4 of this Schedule of a person who enabled those arrangements.
An assessment of a person as liable to a penalty under paragraph 1 may not take place after the relevant time. In this paragraph “the relevant time” means, subject to sub-paragraphs (3) to (6)— Where under paragraph 21(4) a person requests assessment of a penalty, the relevant time in relation to that penalty is whichever is the later of— and sub-paragraph (3) does not apply to the penalty even if the required percentage of relevant defeats is reached. Sub-paragraph (6) applies where— The relevant time in respect of any penalty under paragraph 1 payable by that person in relation to the arrangements concerned is whichever is the later of—
A person is not liable to a penalty under paragraph 1 in respect of conduct for which the person has been convicted of an offence.
In this Schedule “tax advantage” includes—
relief or increased relief from tax,
repayment or increased repayment of tax,
receipt, or advancement of a receipt, of a tax credit,
avoidance or reduction of a charge to tax, an assessment of tax or a liability to pay tax,
avoidance of a possible assessment to tax or liability to pay tax,
deferral of a payment of tax or advancement of a repayment of tax, and
avoidance of an obligation to deduct or account for tax.
In section 103ZA of TMA 1970 (disapplication of sections 100 to 103 of that Act in the case of certain penalties)—
omit “or” at the end of paragraph (i), and
after paragraph (j) insert or
In section 77(4A) of VATA 1994 (cases in which the time allowed for assessment is 20 years), in paragraph (d) after “11A” insert “or an obligation under paragraph 17(2) or 18(2) of Schedule 17 to FA 2017”.
At the end of the 2016-17 tax year a person has “relevant offshore tax non-compliance” to correct if— Where the original offshore tax non-compliance committed by a person has been corrected in part by the end of the tax year 2016-17, the person’s “relevant offshore tax non-compliance” is the uncorrected part of the original offshore tax non-compliance.
This paragraph applies to any tax non-compliance consisting of a failure to comply with an obligation under section 7 of TMA 1970 to notify chargeability to income tax or capital gains tax. The tax non-compliance “involves an offshore matter” if the potential loss of revenue is charged on or by reference to— The tax non-compliance “involves an offshore transfer” if— Where the tax at stake is income tax the applicable condition is satisfied if the income on or by reference to which tax is charged, or any part of the income— Where the tax at stake is 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 (4)(b) or (5)(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 this paragraph and paragraphs 10 and 11 “assets” has the meaning given in section 21(1) of TCGA 1992, but also includes sterling.
This paragraph provides for a reduction in a penalty under paragraph 1 for any uncorrected relevant offshore tax non-compliance if the person (“P”) who is liable to the penalty discloses any matter mentioned in sub-paragraph (2) that is relevant to the non-compliance or its correction or to the assessment or enforcement of the offshore tax attributable to it. The matters are— A person discloses a matter for the purposes of this paragraph only by— Where a person liable to a penalty under paragraph 1 discloses a matter HMRC must reduce the penalty to one that reflects the quality of the disclosure. But the penalty may not be reduced below 100% of the offshore PLR. In relation to disclosure or assistance, “quality” includes timing, nature and extent. For the purposes of sub-paragraph (3) a person “acted as an enabler” of relevant offshore tax non-compliance by another if the person encouraged, assisted or otherwise facilitated the conduct by the other person that constituted the offshore tax non-compliance.
This paragraph applies for the purposes of paragraph 15. Where consideration for anything done by a person (“A”) is, under any arrangements with A, paid or payable to a person other than A, it is to be taken to be received or receivable by A. The “consideration” for anything done by a person does not include any amount charged by that person in respect of value added tax. Consideration attributable to two or more transactions is to be apportioned on a just and reasonable basis. Any consideration given for what is in substance one bargain is to be treated as attributable to all elements of the bargain, even though—
Penalty under Schedule 16 to F(No. 2)A 2017 Various taxes
Condition A is that the original offshore tax non-compliance has not been fully corrected before the end of the tax year 2016-17 (see paragraph 13).
This paragraph applies where— The tax non-compliance “involves an offshore matter” if the liability to tax that would have been shown in the return or other document is or includes a liability to tax charged on or by reference to— Where the tax at stake is inheritance tax, assets are treated for the purposes of sub-paragraph (2) as situated or held in a territory outside the UK if they are so situated or held immediately after the transfer of value by reason of which inheritance tax becomes chargeable. The tax non-compliance “involves an offshore transfer” if— Where the tax at stake is income tax the applicable condition is satisfied if the income on or by reference to which tax is charged, or any part of the income— Where the tax at stake is 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— Where the liability to tax which would have been shown in the document is a liability to inheritance tax, the applicable condition is satisfied if— In the case of a transfer falling within sub-paragraph (5)(b), (6)(b) or (7)(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.
If they think it right because of special circumstances, HMRC may reduce a penalty under paragraph 1. In sub-paragraph (1) “special circumstances” does not include— In sub-paragraph (1) the reference to reducing a penalty includes a reference to—
Penalty under Schedule 16 to F(No. 2)A 2017 Various taxes
Condition B is that—
the original offshore tax non-compliance involved a potential loss of revenue when it was committed, and
if the original offshore tax non-compliance has been corrected in part by the end of the tax year 2016-17, the uncorrected part at that time involved a potential loss of revenue.
This paragraph applies to any tax non-compliance by a person if— The tax non-compliance to which this paragraph applies “involves an offshore matter” if the information that should have been given in the tax document relates to— Where the tax at stake is inheritance tax, assets are treated for the purposes of sub-paragraph (2) as situated or held in a territory outside the UK if they are so situated or held immediately after the transfer of value by reason of which inheritance tax becomes chargeable. Tax non-compliance to which this paragraph applies “involves an offshore transfer” if— Where the tax at stake is 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 tax at stake is capital gains tax, the applicable condition is satisfied if— Where the tax at stake is inheritance tax, the applicable condition is satisfied if— In the case of a transfer falling within sub-paragraph (5)(b), (6)(b) or (7)(b), references to the income, proceeds or assets transferred are to be read as including references to any assets derived from or representing the income, proceeds or assets.
In Schedule 34 to FA 2014 (promoters of tax avoidance schemes: threshold conditions), in paragraph 7—
in paragraph (a), for the words after “promoter” substitute —;
(opinion of sub-panel of GAAR Advisory Panel that arrangements are not reasonable), and
Condition C is that on the relevant date it is lawful, on the assumptions set out in sub-paragraph (2), for HMRC to assess the person concerned to any tax the liability to which would have been disclosed to or discovered by HMRC if on that date— The assumptions are— In this paragraph “the relevant date” is—
“approved person” has the meaning given by section 49(5);
This paragraph applies where a designated HMRC officer is of the view that— A designated HMRC officer must give the person mentioned in sub-paragraph (1) a notice in writing— A person to whom a notice under this paragraph is given has 30 days, beginning with the day on which the notice is given, to send to the designated HMRC officer (in writing) any representations that that person wishes to make as to why the arrangements concerned are not equivalent to the GAAR decision arrangements. A designated HMRC officer may, on a written request by that person, extend the period during which representations may be made by that person. Paragraph 24 contains definitions of the following terms used in this paragraph— “GAAR final decision notice”; “equivalent”, in relation to arrangements.
Where a designated HMRC officer decides whether to make a referral under paragraph 26, the officer must, as soon as reasonably practicable, give written notice of that decision to each person to whom notice under paragraph 28 was given.
A person who has received a notice under paragraph 31 has 21 days, beginning with the day on which that notice is given, to send to the GAAR Advisory Panel written representations about— The GAAR Advisory Panel may, on a written request made by the person, extend the period during which representations may be made. If a person sends representations to the GAAR Advisory Panel under this paragraph, the person must at the same time send a copy of the representations to the designated HMRC officer. If a person sends representations to the GAAR Advisory Panel under this paragraph and that person made no representations under paragraph 28, a designated HMRC officer—
In this paragraph “enabler penalty proceedings” means proceedings before a court or tribunal in connection with a penalty under paragraph 1. In determining in enabler penalty proceedings any question whether tax arrangements to which the penalty relates were abusive, the court or tribunal— In sub-paragraph (2)(a) “the relevant Panel opinion” means the opinion of the GAAR Advisory Panel which under this Part of this Schedule was required to be considered by a designated HMRC officer in deciding whether the penalty should be assessed. The matters mentioned in sub-paragraph (2)(b) are—
The Schedule as it applies for the purpose mentioned in paragraph 40(1) above has effect with the modifications in sub-paragraphs (2) to (6). Paragraph 10A (power to inspect business premises of involved third parties) has effect as if the reference in sub-paragraph (1) to the position of any person or class of persons as regards a relevant tax were to the position of a relevant person as regards liability for a penalty under paragraph 1. Paragraph 47 (right to appeal against penalties under the Schedule) has effect as if after paragraph (b) (but not as part of that paragraph) there were inserted the words “but paragraph (b) does not give a right of appeal against the amount of an increased daily penalty payable by virtue of paragraph 49A. Paragraph 49A (increased daily default penalty) has effect as if— Paragraph 49B (notification of increased daily default penalty) has effect as if— Paragraph 49C is treated as omitted.
This paragraph applies where— HMRC may apply to the tribunal for an order requiring P to provide specified information about, or documents relating to, the notifiable proposal or arrangements. The tribunal may make an order under sub-paragraph (2) in respect of information or documents only if satisfied that HMRC have reasonable grounds for suspecting that the information or documents— A requirement by virtue of sub-paragraph (2) is to be treated as part of P’s duty under paragraph 11(1) or 12(1). In so far as P’s duty under sub-paragraph (1) of paragraph 11 or 12 arises out of an order made by virtue of sub-paragraph (2) above the relevant period for the purposes of that sub-paragraph (1) is—
This paragraph applies where— HMRC may require the person to provide— Where HMRC impose a requirement on a person under this paragraph, the person must comply with the requirement within—
This paragraph applies where a person who is a promoter in relation to notifiable arrangements is providing (or has provided) services to any person (“the client”) in connection with the arrangements. The promoter must, within 30 days after the relevant date, provide the client with prescribed information relating to any reference number (or, if more than one, any one reference number) that has been notified to the promoter (whether by HMRC or any other person) in relation to— In sub-paragraph (2) “the relevant date” means the later of— But where the conditions in sub-paragraph (5) are met the duty imposed on the promoter under sub-paragraph (2) to provide the client with information in relation to notifiable arrangements is discharged Those conditions are— HMRC may give notice that, in relation to notifiable arrangements specified in the notice, promoters are not under the duty under sub-paragraph (2) after the date specified in the notice.
Any person (P) who is a party to any notifiable arrangements must provide HMRC with prescribed information relating to— For the purposes of sub-paragraph (1) a tax is a “relevant tax” in relation to any notifiable arrangements if it is prescribed in relation to arrangements of that description by regulations under paragraph 3(1). Regulations made by the Commissioners may— In sub-paragraph (3) “prescribed” includes being prescribed in a document made under a power conferred by regulations made by the Commissioners. HMRC may give notice that, in relation to notifiable arrangements specified in the notice, persons are not under the duty under sub-paragraph (1) after the date specified in the notice. The duty under sub-paragraph (1) does not apply in prescribed circumstances.
Where HMRC suspect that a person (P) is the promoter or introducer of a proposal, or the promoter of arrangements, which may be notifiable, they may by written notice require P to state— The notice must specify the proposal or arrangements to which it relates. For the purposes of sub-paragraph (1)(b)— P must comply with a requirement under or by virtue of sub-paragraph (1) within— In sub-paragraph (4) “the relevant period” is the period of 11 days beginning with the day on which the notice under sub-paragraph (1) is issued.
Nothing in this Part of this Schedule requires any person to disclose to HMRC any privileged information. In this Part of this Schedule “privileged information” means information with respect to which a claim to legal professional privilege, or, in Scotland, to confidentiality of communications, could be maintained in legal proceedings.
An authorised officer may commence proceedings before the First-tier Tribunal for any penalty under paragraph 39(1)(a). In sub-paragraph (1) “authorised officer” means an officer of Revenue and Customs authorised by HMRC for the purposes of this paragraph. Proceedings for a penalty may not be commenced more than 12 months after evidence of facts sufficient to justify the bringing of proceedings comes to the knowledge of HMRC. If the First-tier Tribunal decide that the penalty is payable by the person— On an appeal under sub-paragraph (4)(b) the Upper Tribunal may, if it appears that no penalty has been incurred, cancel the decision of the First-tier Tribunal. On an appeal under sub-paragraph (4)(c) the Upper Tribunal may—
Schedule 18 to FA 2016 (serial tax avoidance) is amended as follows. In paragraph 4 (meaning of “tax”)— Before paragraph 9 (meaning of “disclosable VAT arrangements”) insert— In the heading before paragraph 9 after ““Disclosable” insert “Schedule 11A”. In paragraph 9— After paragraph 9 insert— In the heading before paragraph 10 (meaning of “failure to comply”) for “and 9” substitute “to 9A”. In paragraph 10(1) for “or 9(a)” substitute “, 8A(2)(c), 9(a) or 9A(1)(c)”. In paragraph 11(1) (meaning of “relevant defeat”) for “E” substitute “F”. After paragraph 16 (condition E) insert— In paragraph 17 (annual information notices)— In the heading before paragraph 28 (exclusion of VAT from Part 4 of Schedule) after “VAT” insert “and indirect taxes”. In paragraph 28 after “VAT” insert “or any other indirect tax”. In paragraph 32 (value of counteracted advantage: basic rule for taxes other than VAT)— In paragraph 35 (meaning of “the counteracted advantage” in paragraphs 33 and 34) in sub-paragraph (1) after paragraph (c) insert ; In relation to a relevant defeat incurred by virtue of Condition F, “the relevant failure” means the failures or inaccuracies as a result of which the adjustments, assessments, or other actions mentioned in paragraph 16A(5) are required. If the person incurs the relevant defeat by virtue of Condition F, the person is treated as having “used” the arrangements on the following dates— In paragraph 58(1) (interpretation)—
Paragraphs 50 and 51 are excluded from the application of the Schedule for the purpose mentioned in paragraph 40(1) above.
This paragraph applies where HMRC— HMRC may apply to the tribunal for an order requiring the person to provide the information or documents required. The tribunal may make an order imposing such a requirement only if satisfied that HMRC have reasonable grounds for suspecting that the information or documents will assist HMRC in considering the notifiable proposals or arrangements. Where the tribunal makes an order imposing such a requirement, the person must comply with the requirement within—
A person may appeal against—
a decision of HMRC that a penalty under paragraph 1 is payable by that person, or
a decision of HMRC as to the amount of a penalty under paragraph 1 payable by the person.
An appeal under paragraph 37 is to be treated in the same way as an appeal against an assessment to the tax to which the arrangements concerned relate (including by the application of any provision about bringing the appeal by notice to HMRC, about HMRC 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 this paragraph “the arrangements concerned” means the arrangements to which the penalty relates.
On an appeal under paragraph 37(a) that is notified to the tribunal, the tribunal may affirm or cancel HMRC’s decision. On an appeal under paragraph 37(b) that is notified to the tribunal, the tribunal may— If the tribunal substitutes its decision for HMRC’s, the tribunal may rely on paragraph 18— 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 38(1)).
Subject to sub-paragraphs (2) and (3), paragraphs 1 to 61 of this Schedule have effect in relation to arrangements entered into on or after the day on which this Act is passed. In determining in relation to any particular arrangements whether a person is a person who enabled the arrangements, any action of the person carried out before the day on which this Act is passed is to be disregarded. The amendments made by paragraph 61 do not apply in relation to a person who is a promoter in relation to arrangements if by virtue of sub-paragraph (2) above that person is not a person who enabled the arrangements.
A person who fails to comply with any of the provisions of Part 1 of this Schedule mentioned in sub-paragraph (2) is liable— Those provisions are— In this paragraph “the initial period” means the period— For the purposes of sub-paragraph (3)(a) “the relevant day” is the day specified in relation to the failure in the following table— Failure Relevant day A failure to comply with paragraph 11(1) or 12(1) in so far as it applies by virtue of an order under paragraph 5 The first day after the end of the relevant period described in paragraph 5(6) A failure to comply with paragraph 11(1) or 12(1) in so far as it applies by virtue of an order under paragraph 16(2) The first day after the end of the relevant period (whether that is the period described in sub-paragraph 16(5)(a) or that period as extended by a direction under paragraph 16(5)(b)) Any other failure to comply with sub-paragraph (1) of paragraph 11 The first day after the end of the relevant period described in paragraph 11(2) Any other failure to comply with sub-paragraph (1) of paragraph 12 The first day after the end of the relevant period described in paragraph 12(2) A failure to comply with paragraph 17(2) The first day after the end of the relevant period described in paragraph 17(3) A failure to comply with paragraph 18(2) The first day after the latest time by which paragraph 18(2) should have been complied with in the case concerned A failure to comply with paragraph 19 The first day after the end of the period within which the person must comply with paragraph 19
Where a person is liable to a penalty under paragraph 39(1)(b) or 44 an authorised officer may assess the amount due by way of a penalty. An assessment may not be made more than 12 months after evidence of facts sufficient to justify the making of the assessment first comes to the knowledge of HMRC. A notice of an assessment under sub-paragraph (1) stating— must be served on the person liable to the penalty. After the notice has been served the assessment may not be altered except in accordance with this paragraph or on appeal. If it is discovered by an authorised officer that the amount of a penalty assessed under this paragraph is or has become insufficient the officer may make an assessment in a further amount so that the penalty is set at the amount which, in the officer’s opinion, is correct or appropriate. A penalty imposed by a decision under this paragraph— In this paragraph “authorised officer” means an officer of Revenue and Customs authorised by HMRC for the purposes of this paragraph.
Part 5 of FA 2014 (promoters of tax avoidance schemes) is amended as follows.
In this Schedule—
This paragraph applies where— The period in which it is lawful for HMRC to assess the person to the offshore tax is extended by virtue of this paragraph to end with 5 April 2021. In this paragraph “offshore tax”, in relation to any relevant offshore tax non-compliance, means tax corresponding to the offshore PLR in respect of the non-compliance.
In the case of a failure to comply with paragraph 11(1), 12(1), 17(2), 18(2) or 19, the amount of the penalty under paragraph 39(1)(a)(i) is to be arrived at after taking account of all relevant considerations. Those considerations include the desirability of the penalty being set at a level which appears appropriate for deterring the person, or other persons, from similar failures to comply on future occasions having regard (in particular)— In sub-paragraph (2)(b) “relevant person” means a person who enters into any transaction forming part of notifiable arrangements. If the maximum penalty under paragraph 39(1)(a)(i) appears inappropriately low after taking account of all relevant considerations, the penalty is to be of such amount not exceeding £1 million as appears appropriate having regard to those considerations.
Where a person (P) is served with notice of an assessment under paragraph 46— An appeal under sub-paragraph (1) is to be treated for procedural purposes in the same way as an appeal against an assessment to the relevant tax (including by the application of any provision about the bringing of an appeal by notice to HMRC, about HMRC review of the decision or about determination of the appeal by the First-tier Tribunal or Upper Tribunal) Sub-paragraph (2) does not apply— On an appeal under sub-paragraph (1)(a) the tribunal may affirm or cancel the decision that a penalty is payable by P. On an appeal under sub-paragraph (1)(b) the tribunal may— In this paragraph “tribunal” means the First-tier Tribunal or Upper Tribunal (as appropriate by virtue of sub-paragraph (2)).
Section 281A (VAT: meaning of “tax advantage”) is amended as follows. In the heading after “VAT” insert “and other indirect taxes”. In subsection (1)— In subsection (3) after “value added tax” (in both places) insert “or other indirect taxes”. After subsection (3) insert—
This paragraph applies where a failure to comply with a provision mentioned in paragraph 39(2) concerns a proposal or arrangements in respect of which an order has been made under paragraph 4 or 5. The amounts specified in paragraph 39(1)(a)(i) and (b) are increased to £5,000 in relation to days falling after the end of the period of 11 days beginning with the day on which the order is made.
Schedule 34A (defeated arrangements) is amended as follows. In paragraph 2(4) after “”schemes)” insert “or paragraph 22 of Schedule 17 to FA 2017 (disclosure of avoidance schemes: VAT and other indirect taxes). In paragraph 14— After paragraph 26 insert— In the heading before paragraph 27, after ““disclosable” insert “Schedule 11A”. In paragraph 27— In the heading before paragraph 28 for “and 27” substitute “to 27”. In paragraph 28(1) after “26(1)(a)” insert “26A(2)(a)
The Treasury may by regulations vary— Regulations under this paragraph may include incidental or transitional provision.
Where it appears to an officer of Revenue and Customs that— an officer of Revenue and Customs may commence proceedings for a re-determination of the penalty.
a penalty under paragraph 39(1)(a) has been imposed in a case where the maximum penalty is set by paragraph 39(1)(a)(i), and
the maximum penalty was calculated on the basis that the initial period began with a day later than that which the officer considers to be the relevant day,
Section 66
Section 67
Term Paragraph assets (in paragraphs 8 to 10) paragraph 9(7) capital gains tax paragraph 12(2) HMRC paragraph 32(1) involves an offshore matter (in relation to failure to notify chargeability) paragraph 9(2) involves an offshore matter (in relation to failure to deliver a return or other document) paragraph 10(2) and (3) involves an offshore matter (in relation to delivery of a return or other document containing an inaccuracy) paragraph 11(2) and (3) involves an offshore transfer (in relation to failure to notify chargeability) paragraph 9(3) to (6) involves an offshore transfer (in relation to failure to deliver a return or other document) paragraph 10(4) to (8) involves an offshore transfer (in relation to delivery of a return or other document containing an inaccuracy) paragraph 11(4) to (8) involves an onshore matter (in relation to any tax non-compliance) paragraph 7(2) offshore tax non-compliance paragraph 7(1) offshore PLR paragraph 15(1) potential lost revenue paragraph 15(2) RTC period paragraph 1(b) relevant offshore tax non-compliance paragraph 3 tax non-compliance paragraph 8(1) tax period paragraph 32(1) tax year (in relation to inheritance tax) paragraph 32(1) tax paragraph 12(1) UK paragraph 32(1) uncorrected offshore tax non-compliance (in Part 2) paragraph 14(2)
“tax advantage” has the meaning given by section 1139 of CTA 2010.
This section has effect in relation to a tax advantage that relates (or would apart from this section relate) to an accounting period beginning on or after 1 April 2017 (regardless of when the arrangements in question were made).
Where a tax advantage would (apart from this subsection) relate to an accounting period beginning before 1 April 2017 and ending on or after that date (“the straddling period”)—
so much of the straddling period as falls before 1 April 2017, and so much of that period as falls on or after that date, are treated as separate accounting periods, and
the extent (if any) to which the tax advantage relates to the second of those accounting periods is to be determined by apportioning amounts—
in accordance with section 1172 of CTA 2010 (time basis), or
if that method would produce a result that is unjust or unreasonable, on a just and reasonable basis.
In the case of a tax advantage as a result of a deduction (or increased deduction) under— subsections (10) and (11) have effect as if the references to 1 April 2017 were to 13 July 2017.
section 463H of CTA 2009,
section 62(3) of CTA 2010,
section 303B, 303C or 303D of CTA 2010, or
section 124A or 124C of FA 2012,
In the case of a tax advantage as a result of a deduction (or increased deduction) under section 2A(1) of TCGA 1992, subsections (10) and (11) have effect as if the references to 1 April 2017 were to 1 April 2020.
Schedule 5 makes provision about the amounts that may be brought into account for the purposes of corporation tax in respect of interest and other financing costs.
Schedule 6 makes provision about relief in respect of the production of museum and gallery exhibitions.
CTA 2010 is amended as follows.
In section 1(2) (overview of Act)—
omit the “and” at the end of paragraph (g), and
after that paragraph insert—.
In section 99(1) (group relief: losses and other amounts which may be surrendered), after paragraph (d) insert—.
In section 105(4) (group relief: order in which amounts are treated as surrendered)—
after paragraph (a) insert—,
in paragraph (b), for “second” substitute “ third ”,
in paragraph (c), for “third” substitute “ fourth ”, and
in paragraph (d), for “fourth” substitute “ fifth ”.
After Part 6 insert—
The amendments made by this section have effect for the purpose of allowing deductions for payments made 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 accounting period for the purposes of the new section 217A(9) is so much of the accounting period as falls on or after 1 April 2017.
Part 8A of CTA 2010 (profits from the exploitation of patents) is amended as follows.
After section 357BLE insert—
For section 357GC substitute—
In section 357BP (meaning of “new qualifying IP right”) after subsection (12) insert—
The amendments made by this section have effect in relation to accounting periods beginning on or after 1 April 2017.
Part 6A of TIOPA 2010 (hybrid and other mismatches) is amended as follows.
In section 259B(3) (local taxes), for “is not outside the scope of subsection (2) by reason only that” substitute “ is outside the scope of subsection (2) if ”.
In section 259CC(2) (hybrid and other mismatches from financial instruments: meaning of “permitted” taxable period of a payee), for paragraph (b) substitute—
In section 259DD(2) (hybrid transfer deduction/non-inclusion mismatches: meaning of “permitted” taxable period of a payee), for paragraph (b) substitute—
In section 259EB (hybrid payer deduction/non-inclusion mismatches and their extent), after subsection (1) insert—
In section 259FA (deduction/non-inclusion mismatches relating to transfers by permanent establishments), after subsection (4) insert—
In section 259GB (hybrid payee deduction/non-inclusion mismatches and their extent), after subsection (1) insert—
In section 259HB (multinational payee deduction/non-inclusion mismatches and their extent), after subsection (1) insert—
In section 259KB (imported mismatches: meaning of “excessive PE deduction” etc), after subsection (3) insert—
The amendment made by subsection (2)—
has effect, in the case of its application to Chapter 6 of Part 6A of TIOPA 2010, in relation to excessive PE deductions in relation to which the relevant PE period begins on or after 13 July 2017,
has effect, in the case of its application to Chapter 9 or 10 of that Part, in relation to accounting periods beginning on or after that date, and
has effect, in the case of its application to any other Chapter of that Part, in relation to—
payments made on or after date, or
quasi-payments in relation to which the payment period begins on or after that date.
For the purposes of subsection (10)(a), (b) and (c)(ii), where there is a straddling period—
so much of the straddling period as falls before 13 July 2017, and so much of it as falls on or after that date, are to be treated as separate accounting periods or separate taxable periods (as the case may be), and
if it is necessary to apportion an amount for the straddling period to the two separate periods, it is to be apportioned—
on a time basis according to the respective length of the separate periods, or
if that would produce a result that is unjust or unreasonable, on a just and reasonable basis.
A “straddling period” means an accounting period or payment period (as the case may be) beginning before 13 July 2017 and ending on or after that date.
Part 6A of TIOPA 2010 has effect, and is to be deemed always to have had effect, with the amendments set out in subsections (3) to (9).
Schedule 7 contains—
amendments of Part 8B of CTA 2010 (trading profits taxable at the Northern Ireland rate), and
amendments consequential on or related to those amendments.
Section 161 of TCGA 1992 (appropriations to and from trading stock) is amended as follows.
In subsection (3)—
for “a person's appropriation of an asset for the purposes of a trade” substitute “ a case where a chargeable gain would have accrued to a person on the appropriation of an asset for the purposes of a trade as mentioned in that subsection ”, and
for “the chargeable gain or increased by the amount of the allowable loss referred to in subsection (1), and where that subsection” substitute “ that chargeable gain, and where subsection (1) ”.
In subsection (3ZB)—
in paragraph (a)—
omit “or loss”, and
omit “or an allowable loss”,
in paragraph (b)—
omit “, or increased by the amount of any loss,” and
omit “or allowable loss”, and
in paragraph (c), at the end insert “ and a loss which accrues on that disposal which is not ATED-related is also unaffected by the election ”.
The amendments made by this section have effect in relation to appropriations of assets made on or after 8 March 2017.
Schedule 7AC to TCGA 1992 (exemptions for disposals by companies with substantial shareholding) is amended as follows.
Omit the following (which relate to requirements to be met by investing company)—
in paragraph 1(2), “the investing company and”;
in paragraph 3—
in sub-paragraph (2)(b), “(but see sub-paragraph (3) below)”;
sub-paragraph (3);
in sub-paragraph (4), “of paragraph 18(1)(b) and”;
in the heading to Part 3, “investing company and”;
paragraph 18 and the preceding italic heading;
in paragraph 23(3), “a member of a trading group or”.
In paragraph 7 (substantial shareholding requirement), for “two” substitute “ six ”.
In paragraph 10 (effect of earlier no-gain/no-loss transfer), in sub-paragraph (2)(b), after “but for” insert “ subsection (1A) or ”.
In paragraph 19 (requirements relating to company invested in)—
in sub-paragraph (1)(b), at the beginning insert “ in a case where sub-paragraph 1A) applies, ”;
after sub-paragraph (1) insert—;
at the end insert—
The amendments made by this section have effect in relation to disposals made on or after 1 April 2017.
Schedule 7AC to TCGA 1992 (exemptions for disposals by companies with substantial shareholding) is amended as follows.
After paragraph 3 insert—
After paragraph 8 insert—
In paragraph 9 (aggregation), in sub-paragraph (1), for “paragraph 7” substitute “ paragraphs 7 and 8A(2) ”.
After paragraph 30 insert—
Exempt unauthorised unit trust paragraph 3B(7) Qualifying institutional investor paragraph 30A
The amendments made by this section have effect in relation to disposals made on or after 1 April 2017.
In Chapter 2A of Part 14 of ITA 2007 (income tax liability: domicile), after section 835B insert—
Schedule 8 contains—
provision applying section 835BA of ITA 2007, and
further provision relating to this section.
In section 267 of IHTA 1984 (persons treated as domiciled in the United Kingdom), in subsection (1)—
in paragraph (a), omit the final “or”;
after that paragraph insert—;
for paragraph (b) substitute—
In that section, omit subsection (3).
In that section, in subsection (4), for “in any year of assessment” substitute “ for any tax year ”.
In section 48 of that Act (settlements: excluded property)—
in subsection (3)(b), for “and (3D)” substitute “ to (3E) ”;
in subsection (3A)(b), for “subsection (3B)” substitute “ subsections (3B) and (3E) ”;
after subsection (3D) insert—
In section 64 of that Act (charge at ten-year anniversary), in subsection (1B), after “was made” insert “ and is not a formerly domiciled resident for the tax year in which the ten-year anniversary falls ”.
In section 65 of that Act (charge at other times), after subsection (7A) insert—
In section 82 of that Act (excluded property)—
for subsection (1) substitute—;
in subsection (2), for “the condition in subsection (3) below” substitute “ Condition A ”;
in subsection (3), for “The condition” substitute “ Condition A ”;
after subsection (3) insert—
In section 272 of that Act (interpretation)—
“foreign-owned”, in relation to property at any time, means property—
“formerly domiciled resident”, in relation to a tax year, means a person—
The amendments made by this section have effect in relation to times after 5 April 2017, subject to subsections (10) to (12).
The amendment to section 267(1) of IHTA 1984 made by subsection (1)(c) does not have effect in relation to a person if— In this subsection “relevant tax year” is to be construed in accordance with section 267(1) of IHTA 1984 as amended by subsection (1).
the person is not resident in the United Kingdom for the relevant tax year, and
there is no tax year beginning after 5 April 2017 and preceding the relevant tax year in which the person was resident in the United Kingdom.
The amendment to section 267(1) of IHTA 1984 made by subsection (1)(c) also does not have effect in determining—
whether settled property which became comprised in the settlement on or before that date is excluded property for the purposes of IHTA 1984;
the settlor's domicile for the purposes of section 65(8) of that Act in relation to settled property which became comprised in the settlement on or before that date;
whether, for the purpose of section 65(8) of that Act, the condition in section 82(3) of that Act is satisfied in relation to such settled property.
Despite subsection (2), section 267(1) of IHTA 1984, as originally enacted, shall continue to be disregarded in determining—
whether settled property which became comprised in the settlement on or before 9 December 1974 is excluded property for the purposes of IHTA 1984;
the settlor's domicile for the purposes of section 65(8) of that Act in relation to settled property which became comprised in the settlement on or before that date;
whether, for the purpose of section 65(8) of that Act, the condition in section 82(3) of that Act is satisfied in relation to such settled property.
Subsections (14) and (15) apply if an amount of inheritance tax—
would not be charged but for the amendments made by this section, or
is, because of those amendments, greater than it would otherwise have been.
Section 233 of IHTA 1984 (interest on unpaid inheritance tax) applies in relation to the amount of inheritance tax as if the reference, in the closing words of subsection (1) of that section, to the end of the period mentioned in paragraph (a), (aa), (b) or (c) of that subsection were a reference to—
the end of that period, or
if later, the end of the month immediately following the month in which this Act is passed.
Subsection (1) of section 234 of IHTA 1984 (cases where inheritance tax payable by instalments carries interest only from instalment dates) applies in relation to the amount of inheritance tax as if the reference, in the closing words of that subsection, to the date at which an instalment is payable were a reference to—
the date at which the instalment is payable, or
if later, the end of the month immediately following the month in which this Act is passed.
Subsection (17) applies if—
a person is liable as mentioned in section 216(1)(c) of IHTA 1984 (trustee liable on 10-year anniversary, and other trust cases) for an amount of inheritance tax charged on an occasion, and
but for the amendments made by this section—
no inheritance tax would be charged on that occasion, or
a lesser amount of inheritance tax would be charged on that occasion.
Section 216(6)(ad) of IHTA 1984 (delivery date for accounts required by section 216(1)(c)) applies in relation to the account to be delivered in connection with the occasion as if the reference to the expiration of the period of 6 months from the end of the month in which the occasion occurs were a reference to—
the expiration of that period, or
if later, the end of the month immediately following the month in which this Act is passed.
Schedule 9 makes provision about the value of benefits received in relation to settlements and the transfer of assets abroad.
TCGA 1992 is amended as follows.
In section 13(1A) (attribution of gains to members of non-resident companies)—
omit the “or” at the end of paragraph (a), and
at the end of paragraph (b), insert, or
In section 86 (attribution of gains to settlors with interest in non-resident or dual resident settlements), after subsection (4ZA) insert—
In section 87 (non-UK resident settlements: attribution of gains to beneficiaries), after subsection (5A) insert—
The amendments made by this section have effect in relation to chargeable gains treated as accruing under section 103KA(2) or (3) of TCGA 1992 at any time before, as well as after, the passing of this Act.
Schedule 10 makes provision about the extent to which overseas property is excluded property for the purposes of inheritance tax, in cases where the value of the overseas property is attributable to residential property in the United Kingdom.
In section 554XA of ITEPA 2003 (employment income provided through third parties: exclusion for payments in respect of a tax liability), in subsection (2), omit paragraphs (a) and (b).
The amendment made by subsection (1) has effect in relation to relevant steps taken on or after 21 July 2017.
Schedule 11 makes provision about the application of Part 7A of ITEPA 2003 in relation to loans and quasi-loans that are outstanding on 5 April 2019.
ITTOIA 2005 is amended as follows.
After section 23 insert—
In section 7(2) (income charged: profits of a tax year) at the end insert “(including amounts treated as profits of the tax year under section 23E(1)).
The amendments made by this section have effect in relation to relevant benefits arising on or after 6 April 2017.
Schedule 12 contains provision about the application of new sections 23A to 23H of ITTOIA 2005 in relation to loans and quasi-loans that are outstanding on 5 April 2019.
Section 38 of ITTOIA 2005 (restriction of deductions: employee benefit contributions) is amended in accordance with subsections (2) to (5).
After subsection (1) insert—
After subsection (2) insert—
After subsection (3) insert—
After subsection (3F) (inserted by subsection (4)) insert—
Section 866 of ITTOIA 2005 (employee benefit contributions: non-trades and non-property businesses) is amended in accordance with subsections (7) to (10).
After subsection (2) insert—
After subsection (3) insert—
After subsection (4) insert—
After subsection (4F) (inserted by subsection (9)) insert—
The amendments made by subsections (2) to (4) and (7) to (9) have effect in relation to employee benefit contributions made, or to be made, on or after 6 April 2017.
The amendments made by subsections (5) and (10) have effect in relation to remuneration paid on or after 6 April 2017.
Section 1290 of CTA 2009 (restriction of deductions: employee benefit contributions) is amended in accordance with subsections (2) to (5).
After subsection (1) insert—
After subsection (2) insert—
After subsection (3) insert—
After subsection (3F) (inserted by subsection (4)) insert—
The amendments made by subsections (2) to (4) have effect in relation to employee benefit contributions made, or to be made, on or after 1 April 2017.
The amendment made by subsection (5) has effect in relation to remuneration paid on or after 1 April 2017.
CAA 2001 is amended as follows.
section 45EA expenditure on plant or machinery for electric vehicle charging point
After section 45E insert—
In section 46 (general exclusions), in subsection (1) after the entry for section 45E insert— “ section 45EA (expenditure on plant or machinery for electric vehicle charging point) ”.
In section 52 (amount of first-year allowances)—
Expenditure qualifying under section 45EA (expenditure on plant or machinery for electric vehicle charging point) 100%
after subsection (3) insert—
The FA 2016 amendments have effect (so far as they would not otherwise have effect) in relation to—
amounts that are recognised in GAAP accounts drawn up for any period of account beginning on or after 8 March 2017, or
in the case of a straddling period, amounts that would be recognised in GAAP accounts drawn up for a period of account beginning on 8 March 2017 and ending when the straddling period ends.
In subsection (1)—
“the FA 2016 amendments” means—
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 Part 10 of this Schedule.
In Schedule 54A to FA 2009 (which is prospectively inserted by F(No. 3)A 2010 and contains provision about the recovery of certain amounts of interest paid by HMRC), in paragraph 2—
in sub-paragraph (2), omit the “or” at the end of paragraph (h) and after paragraph (i) insert , or;
in sub-paragraph (4), for “(i)” substitute “(j)”.
This paragraph applies in relation to a loan where— But this paragraph does not apply if paragraph 10 applies in relation to the loan. For the purposes of calculating the repayment amount in relation to the loan, the amount of each of the payments referred to in sub-paragraph (1)(b) is an amount equal to its value in the loan currency on the date it is made.
A loan is an “approved fixed term loan” on 5 April 2019 if, at any time on that day, it is a qualifying loan which has been approved by an officer of Revenue and Customs in accordance with paragraph 20. A loan is a “qualifying loan” if— A loan is an excluded loan if, at any time after the loan was made—
Chapter 2 of Part 7A of ITEPA 2003 does not apply by reason of a relevant step within paragraph 1 which is treated as being taken by a person (“P”) if—
P is treated as taking a relevant step by that paragraph by reason of the payment of a sum of money by way of a loan,
the loan is (at the time it is made) a loan on ordinary commercial terms within the meaning of section 176 of ITEPA 2003, ignoring conditions B and C in that section, and
there is no connection (direct or indirect) between the relevant step and a tax avoidance arrangement.
Section 20 of the Tax Credits Act 2002 (decisions on discovery) is amended as follows. In subsection (2)(f), for “a closure notice” substitute “a partial or final closure notice”. In subsection (3)(b), at the end insert “as specified in subsection (1)”.
The amendments made by this Schedule have effect in relation to an enquiry under section 9A, 12ZM or 12AC of TMA 1970 or Schedule 18 to FA 1998 where—
notice of the enquiry is given on or after the day on which this Act is passed, or
the enquiry is in progress immediately before that day.
ITTOIA 2005 is amended in accordance with paragraphs 3 to 11.
In section 98 of TMA 1970 (special returns, etc), in the table in subsection (5), in the first column, the entry relating to regulations under section 283, 284, 285, 295 or 297 of TIOPA 2010 is repealed. In consequence of sub-paragraph (1), paragraph 157(3) of Schedule 8 to TIOPA 2010 is repealed.
CTA 2010 is amended as follows.
TIOPA 2010 is amended as follows.
In Schedule 5 to TCGA 1992 (provisions supplementing section 86 of TCGA 1992), after paragraph 5 insert—
Chapter 2 of Part 13 of ITA 2007 (transfer of assets abroad) is amended as follows.
A person (“P”) is treated as taking a relevant step for the purposes of Part 7A of ITEPA 2003 if— P is treated as taking the step immediately before— Where P is treated by this paragraph as taking a relevant step, references to “the relevant step” in section 554A(1)(e)(i) and (ii) of ITEPA 2003 have effect as if they were references to the step of making the loan or, as the case may be, quasi-loan. For the purposes of section 554Z3(1) of ITEPA 2003 (value of relevant step), the step is to be treated as involving a sum of money equal to the amount of the loan or quasi-loan that is outstanding at the time P is treated as taking the step. Subsections (2) and (3) of section 554C of ITEPA 2003 (“relevant person”) apply for the purposes of this Schedule as they apply for the purposes of that section. Sub-paragraph (1) is subject to paragraphs 23 and 24 (accelerated payments). For the purposes of this paragraph, whether an amount of a loan or quasi-loan is outstanding at a particular time— References in this Schedule and in Part 7A of ITEPA 2003 to a relevant step within paragraph 1 of this Schedule are to be read as references to a relevant step which a person is treated by this paragraph as taking.
The qualifying payments condition is met in relation to a qualifying loan if, during the relevant period— The “relevant period” in relation to a loan is the period beginning with the making of the loan and ending with the making of the application.
In section 188J(2) of TCGA 1992 (the representative company of an NRCGT group) for “section 9(2)” substitute “section 8(1AB)(a)(iii)”.
In section 19(4)(a) of the Tax Credits Act 2002 (power to enquire) for “by section 8 of the Taxes Management Act 1970 (c. 9) to make a return” substitute “to make a return under section 8 of the Taxes Management Act 1970”.
In paragraph 44(1)(a) of Schedule 13 to the Crossrail Act 2008 (modification of transfer schemes: other persons and partnerships) after “12AA of” insert “, or regulations under paragraph 10 of Schedule A1 to,”.
References to “tax” are (unless in the context the reference is more specific) to income tax, capital gains tax or inheritance tax. References to “capital gains tax” do not include capital gains tax payable by companies in respect of chargeable gains accruing to them to the extent that those gains are NRCGT gains in respect of which the companies are chargeable to capital gains tax under section 14D or 188D of TCGA 1992 (see section 1(2A)(b) of that Act). In sub-paragraph (2) “company” has the same meaning as in TCGA 1992.
In this Schedule “offshore PLR”, in relation to any offshore tax non-compliance means the potential loss of revenue attributable to that non-compliance, to be determined as follows. The potential lost revenue attributable to any offshore tax non-compliance is (subject to sub-paragraphs (5) and (6)) — In its application for the purposes of sub-paragraph (2)(c) above, paragraph 6 of Schedule 24 to FA 2007 has effect as if— In sub-paragraphs (5) and (6) “combined tax non-compliance” is tax non-compliance that— Any combined tax non-compliance is to be treated for the purposes of this Schedule as if it were two separate acts of tax non-compliance, namely— The potential lost revenue attributable to the offshore tax non-compliance referred to in sub-paragraph (5)(a) is to be taken to be such share of the potential lost revenue attributable to the combined tax non-compliance as is just and reasonable.
In section 1 (overview of Act), before paragraph (a) of subsection (5) insert—.
After section 937N (risk transfer schemes) insert—
In section 1 (overview of Act), in subsection (1)—
omit the “and” at the end of paragraph (d), and
after paragraph (e) insert—
In section 721 (income of a person abroad that is treated as arising to a UK resident individual), for subsection (3B) (amount treated as arising) substitute—
In Chapter 2 of Part 2 (trading income: income taxed as trade profits), after section 22 insert—
In section 938N (group mismatch schemes: priority), for paragraph (e) substitute—
In section 155 (transfer pricing: “potential advantage” in relation to United Kingdom taxation), in subsection (6), for paragraph (a) substitute—.
After section 721 insert—
In Chapter 15 of Part 2 (basis periods), after section 204 insert—
In section 938V (tax mismatch schemes: priority), for paragraph (d) substitute—
In section 157 (direct participation), in subsection (1)—
omit the “and” at the end of paragraph (c), and
after paragraph (d) insert, and
In section 726 (individuals to whom remittance basis applies), after subsection (5) insert—
In section 227A (application of Chapter where cash basis used), after subsection (2) insert—
In section 159 (indirect participation: potential direct participant), in subsection (1)—
omit the “and” at the end of paragraph (c), and
after paragraph (d) insert, and
In section 728 (income of a person abroad that is treated as arising to a UK resident individual), for subsection (1A) (amount treated as arising) substitute—
After section 227A insert—
In section 160 (indirect participation: one of several major participants), in subsection (1)—
omit the “and” at the end of paragraph (c), and
after paragraph (d) insert, and
After section 729 insert—
After section 307F (inserted by Schedule 2 to this Act) insert—
In section 259CB (financial instruments: hybrid or otherwise impermissible deduction/non-inclusion mismatches and their extent), in subsection (6), for paragraph (e) substitute—
In section 730 (individuals to whom remittance basis applies), after subsection (5) insert—
In section 688 (income charged under Chapter 8 of Part 5), before paragraph (a) of subsection (2) insert—.
In section 259DC (hybrid transfer deduction/non-inclusion mismatches and their extent), in subsection (5), for paragraph (d) substitute—
Section 731 (charge to tax on income treated as arising under section 732) is amended as follows. In subsection (1), for “non-transferors” substitute “individuals”. After subsection (1) insert— In subsection (3) (person liable for tax is person to whom income is treated as arising), at the end insert “, but this is subject to section 733A.
In section 828 (overlap profit), in subsection (3), for “section 204” substitute “ sections 204 and 204A ”.
After section 259NE (treatment of a person who is a member of a partnership) insert—
Section 732 (when income is treated as arising for the purposes of the charge under section 731) is amended in accordance with sub-paragraphs (2) to (4). In subsection (1) (cases in which tax can be charged under section 731)— After subsection (3) insert— In the heading, for “Non-transferors” substitute “Individuals”. In section 733(1) (income charged under section 731), in the first sentence of Step 2, at the end insert “except that, where any of that income is matched deemed income for the purposes of section 731(1A), that matched deemed income is to be deducted only so far as it is matched deemed income on which tax has been charged under section 731 for an earlier tax year.
In Part 2 of Schedule 4 (defined expressions)—
individual's property allowance (in Chapter 2 of Part 6A) section 783BD individual's trading allowance (in Chapter 1 of Part 6A) section 783AD miscellaneous income (in Chapter 1 of Part 6A) section 783AB relevant income (in Chapter 1 of Part 6A) section 783AC relevant property business (in Chapter 2 of Part 6A) section 783BA relevant property income (in Chapter 2 of Part 6A) section 783BC relevant trade (in Chapter 1 of Part 6A) section 783AA relievable receipts (in Chapter 2 of Part 6A) section 783BB
in the entry for “overlap profit”, for “section 204” substitute “ sections 204 and 204A ”.
Chapter 3 of Part 9A (CFCs: the CFC charge gateway) is amended as follows. In section 371CE (which makes provision for determining whether Chapter 6 of Part 9A applies)— After section 371CE insert— In consequence of the amendments made by this paragraph, in Schedule 47 to FA 2013, omit paragraph 17.
After section 733 insert—
Chapter 9 of Part 9A (CFCs: exemption for profits from qualifying loan relationships) is amended as follows. For section 371IE substitute— In section 371IJ (claims), in subsection (6), for “the tested income amount or the tested expense amount mentioned in section 371IE(2)” substitute “ the aggregate net tax-interest expense that is mentioned in section 371IE ”.
In section 735A(6) (matching of income on which individual charged under section 731), after “individual” insert “, or as a result of section 733A another person,”.
Chapter 19 of Part 9A (CFCs: assumed taxable total profits, assumed total profits and the corporation tax assumptions) is amended as follows. In section 371SL (group relief etc), at the end insert— After section 371SL insert—
After section 735A insert—
In Schedule 11, at the end insert—
In section 554F of ITEPA 2003 (exclusions: commercial transactions), at the end insert—
“co-ownership authorised contractual scheme” means a co-ownership scheme which is authorised for the purposes of the Financial Services and Markets Act 2000 by an authorisation order in force under section 261D(1) of that Act;
Schedule 18 to FA 1998 (company tax returns, assessments and related matters) is amended in accordance with paragraphs 4 to 6.
CTA 2009 is amended in accordance with paragraphs 10 to 14.
CAA 2001 is amended in accordance with paragraphs 23 and 24.
An amount of a loan is “outstanding” for the purposes of paragraph 1 if the relevant principal amount exceeds the repayment amount. In sub-paragraph (1) “relevant principal amount”, in relation to a loan, means the total of— In sub-paragraph (1) “repayment amount”, in relation to a loan, means the total of— A payment is to be disregarded for the purposes of sub-paragraph (3)(b) if there is any connection (direct or indirect) between the payment and a tax avoidance arrangement (other than the arrangement in pursuance of which the loan was made). In this paragraph and in paragraph 9, “tax avoidance arrangement” means an arrangement which has a tax avoidance purpose. For the purposes of sub-paragraph (5), an arrangement has a tax avoidance purpose if sub-paragraph (7) applies to a person who is a party to the arrangement. This sub-paragraph applies to a person if the main purpose, or one of the main purposes, of the person entering into the arrangement is the avoidance of tax. The following paragraphs apply for the purpose of determining whether any payment is connected with a tax avoidance arrangement—
Paragraph 8 applies in relation to a loan where— The “loan period”, in relation to a loan, is the period—
If the Commissioners think it right because of special circumstances, they may reduce a penalty under this Schedule. In sub-paragraph (1) “special circumstances” does not include ability to pay. In sub-paragraph (1) the reference to reducing a penalty includes a reference to—
Where a penalty under this Schedule is payable by a company in respect of a contravention which was attributable to an officer of the company, the officer is liable to pay such portion of the penalty (which may be 100%) as the Commissioners may specify by written notice to the officer. Sub-paragraph (1) does not allow the Commissioners to recover more than 100% of a penalty. In the application of sub-paragraph (1) to a body corporate other than a limited liability partnership, “officer” means— In the application of sub-paragraph (1) to a limited liability partnership, “officer” means a member. In the application of sub-paragraph (1) in any other case, “officer” means— Where the Commissioners have specified a portion of a penalty in a notice given to an officer under sub-paragraph (1)— In this paragraph “company” means any body corporate or unincorporated association, but does not include a partnership.
In this Schedule “appeal tribunal” has the same meaning as in Chapter 2 of Part 1 of the Finance Act 1994.
A penalty is payable by a person who—
has any relevant offshore tax non-compliance to correct at the end of the tax year 2016-17, and
fails to correct the relevant offshore tax non-compliance within the period beginning with 6 April 2017 and ending with 30 September 2018 (referred to in this Schedule as “the RTC period”).
The Commissioners for Her Majesty’s Revenue and Customs (“the Commissioners”) may publish information about a person (P) if in consequence of an investigation they consider that sub-paragraph (2) or (3) applies in relation to P. This sub-paragraph applies if— This sub-paragraph applies if P has been found to have incurred 5 or more relevant penalties under paragraph 1. A penalty incurred by P under paragraph 1 is “relevant” if — The information that may be published is— In sub-paragraph (5)(f) the reference to the uncorrected relevant offshore tax non-compliance is to so much of P’s relevant offshore tax non-compliance at the end of the 2016-17 tax year as P failed to correct within the RTC period. The information may be published in any manner that the Commissioners consider appropriate. Before publishing any information the Commissioners must— No information may be published before the day on which the penalty becomes final or, where more than one penalty is involved, the latest day on which any of the penalties becomes final. No information may be published for the first time after the end of the period of one year beginning with that day. No information may be published (or continue to be published) after the end of the period of one year beginning with the day on which it is first published. No information may be published if the amount of the penalty— For the purposes of this paragraph a penalty becomes final— In this paragraph “contract settlement”, in relation to a penalty, means a contract between the Commissioners and the person under which the Commissioners undertake not to assess the penalty or (if it has been assessed) not to take proceedings to recover it.
In paragraph 10 (other claims and elections to be included in return), in sub-paragraph (4), for “or 15D” substitute “, 15D or 15E”.
In section 104BA (restriction on claiming other tax reliefs), after subsection (4) insert—
Section 6A (“NIRE company” and “Northern Ireland SME company”) is amended as follows. In the heading, for “Northern Ireland SME company” substitute “SME (Northern Ireland employer) company”. In the definition of “NIRE company”, after “by virtue of” insert “the SME (election) condition or”. For “Northern Ireland SME company” substitute “SME (Northern Ireland employer) company”. For “SME condition” substitute “SME (Northern Ireland employer) condition”.
Where this paragraph applies in relation to a loan— The relevant principal amount, in relation to the loan, is an amount equal to the total of— The “reference date”— The repayment amount, in relation to the loan, is an amount equal to the total of— The “sterling value” of a payment is its value in sterling on the date it is made.
The Treasury may by regulations amend paragraph 30(2) to vary the amount for the time being specified in paragraph (b). Regulations under this paragraph are to be made by statutory instrument. A statutory instrument under this paragraph is subject to annulment in pursuance of a resolution of the House of Commons.
Paragraph 52 (recovery of excessive repayments etc) is amended as follows. In sub-paragraph (2), after paragraph (bh) insert—. In sub-paragraph (5)—
In Part 8 (intangible fixed assets), in Chapter 10 (excluded assets), after section 808D insert—
In the following provisions, for “a Northern Ireland SME company” substitute “an SME (Northern Ireland employer) company”—
section 6C(1)(a) and (c);
section 6D(1);
section 6E(1);
section 61(4B)(a);
section 66B(1)(a), (b) and (c);
section 66C(b);
section 66D(1)(a) and (b);
section 66E(b);
section 212ZE(b);
Schedule 1.
In Part 9D (certain claims for tax relief)—
in the heading, for “or 15D” substitute “, 15D or 15E”, and
in paragraph 83S (introduction), after sub-paragraph (f) insert—
In section 1040ZA (restriction on claiming other tax reliefs), after subsection (4) insert—
In CT(NI)A 2015, in Schedule 1, in Part 6 (capital allowances: transitional provision), in paragraphs 20(1)(a) and 21(1)(a), for “a Northern Ireland SME company” substitute “an SME (Northern Ireland employer) company”.
In section 1310 (orders and regulations), in subsection (4), after paragraph (eo) insert—.
company tax return (in Part 15E) section 1218ZFA core expenditure (in Part 15E) section 1218ZCD costs, in relation to an exhibition (in Part 15E) section 1218ZBC EEA expenditure (in Part 15E) section 1218ZCC(2) EEA expenditure condition (in Part 15E) section 1218ZCC exhibition (in Part 15E) section 1218ZAA income, in relation to an exhibition (in Part 15E) section 1218ZBB museums and galleries exhibition tax relief (in Part 15E) section 1218ZC(1) primary production company (in Part 15E) section 1218ZAC qualifying expenditure (in Part 15E) section 1218ZCG secondary production company (in Part 15E) section 1218ZAD separate exhibition trade (in Part 15E) section 1218ZB touring exhibition (in Part 15E) section 1218ZAB
In section 161 of TCGA 1992 (appropriations to and from stock), in subsection (5)(a), for “CTA 2010” substitute “ ITA 2007 ”.
Section 79(10) of FA 2016 (which substitutes paragraph (a) of section 161(5) of TCGA 1992) is to be regarded as always having had effect with the amendment made by subsection (3).
In Part 2 of CAA 2001 (plant and machinery), in Chapter 20 (supplementary provisions), after the Chapter heading insert—
The Treasury may by regulations impose requirements on the operator of a co-ownership authorised contractual scheme in relation to—
the provision of information to participants in the scheme;
the provision of information to Her Majesty's Revenue and Customs.
Regulations under subsection (1)(a) may be made only for the purpose of enabling participants in a co-ownership authorised contractual scheme to meet their tax obligations in the United Kingdom with respect to their interests in the scheme.
Regulations under subsection (1)(b) may in particular require the provision of information about—
who the participants in the scheme were in any accounting period of the scheme;
the number and classes of units in the scheme in any such period;
the amount of income per unit of any class in any such period;
what information has been provided to participants.
Regulations under this section may specify—
the time when information is to be provided;
the form and manner in which information is to be provided.
Regulations under this section may make provision for the imposition of penalties in respect of contravention of, or non-compliance with, the regulations, including provision—
for Her Majesty's Revenue and Customs to exercise a discretion as to the amount of a penalty, and
about appeals in relation to the imposition of a penalty.
Regulations under this section may in particular be framed by reference to an accounting period of a co-ownership authorised contractual scheme beginning on or after 1 April 2017.
Regulations under this section may contain consequential, supplementary and transitional provision.
Regulations under this section must 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 this section—
the amendments made by sections 76, 77 and 80 of FA 2016 (corporation tax treatment of certain profits and gains realised from disposals concerned with land in the United Kingdom), or
Chapter 4 of Part 15B of CTA 2009 (losses of separate video game trade) is amended as follows.
Section 730F of CTA 2010 (meaning of “relevant carried-forward loss”) is amended as follows. In subsection (1)— In subsection (2)— In subsection (3), after “457” insert “ , 463G or 463H ”. After subsection (2) insert— After subsection (3) insert— At the end insert—
TIOPA 2010 is amended as follows.
In IHTA 1984, before Schedule 1 insert—
Sub-paragraphs (2) and (3) apply if an amount of inheritance tax— Section 233 of IHTA 1984 (interest on unpaid inheritance tax) applies in relation to the amount of inheritance tax as if the reference, in the closing words of subsection (1) of that section, to the end of the period mentioned in paragraph (a), (aa), (b) or (c) of that subsection were a reference to— Subsection (1) of section 234 of IHTA 1984 (cases where inheritance tax payable by instalments carries interest only from instalment dates) applies in relation to the amount of inheritance tax as if the reference, in the closing words of that subsection, to the date at which an instalment is payable were a reference to—
Schedule 18 to FA 1998 (company tax returns, assessments and related matters) is amended as follows.
TIOPA 2010 is amended as follows.
A penalty under paragraph 1 may not be assessed unless— The condition in this sub-paragraph is that, when the assessment is made— The condition in this sub-paragraph is that, when the assessment is made— Where a notification of a penalty under paragraph 1 is given, the notification must be accompanied by a report prepared by HMRC of— Paragraph 24 contains definitions of terms used in this paragraph.
In this Schedule “tax” includes any of the following taxes— and also includes national insurance contributions. The Treasury may by regulations amend sub-paragraph (1) so as to— Regulations under this paragraph may—
Any regulations under this Schedule must be made by statutory instrument. A statutory instrument which contains (alone or with other provision) any regulations within sub-paragraph (3) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons. Regulations within this sub-paragraph are— A statutory instrument containing only— is subject to annulment in pursuance of a resolution of the House of Commons.
A person (P) obtains a tax advantage in relation to VAT if— In sub-paragraph (1)(d) “non-deductible tax”, in relation to a taxable person, means— For the purposes of sub-paragraph (2)(b), the VAT “incurred” by a taxable person is— A person who is not a taxable person obtains a tax advantage in relation to VAT if that person’s non-refundable tax is less that it otherwise would be. In sub-paragraph (4) “non-refundable tax” means— but excluding (in each case) any VAT in respect of which the person is entitled to a refund from the Commissioners by virtue of any provision of VATA 1994. Terms used in this paragraph which are defined in section 96 of VATA 1994 have the meanings given by that section.
A person is an introducer in relation to a notifiable proposal if the person makes a marketing contact with another person in relation to the proposal. A person is not to be treated as an introducer by reason of anything done in prescribed circumstances. In the application of this Schedule to a proposal or arrangements which are not notifiable, a reference to an introducer is a reference to a person who would be an introducer under this paragraph if the proposal or arrangements were notifiable.
This paragraph applies where— The changes referred to in sub-paragraph (1)(b) are— A person who is a promoter in relation to the notifiable arrangements or, in the case of proposed notifiable arrangements, the notifiable proposal must inform HMRC of the change mentioned in sub-paragraph (1)(b) within 30 days after it is made. Sub-paragraphs (5) and (6) apply for the purposes of sub-paragraph (3) where there is more than one person who is a promoter in relation to the notifiable arrangements or proposal. If the change in question is a change in the name or address of a person who is a promoter in relation to the notifiable arrangements or proposal, it is the duty of that person to comply with sub-paragraph (3). If a person provides information in compliance with sub-paragraph (3), the duty imposed by that sub-paragraph on any other person, so far as relating to the provision of that information, is discharged.
In this paragraph “client” means a person to whom a person who is a promoter in relation to notifiable arrangements or a notifiable proposal is providing (or has provided) services in connection with the arrangements or proposal. Sub-paragraph (3) applies where the client receives prescribed information relating to the reference number allocated to the arrangements or proposed arrangements, The client must, within the relevant period, provide prescribed information relating to the reference number to any other person— In sub-paragraph (3) “the relevant period” is the period of 30 days beginning with the later of— HMRC may give notice that, in relation to notifiable arrangements or a notifiable proposal specified in the notice, persons are not under the duty under sub-paragraph (3) after the date specified in the notice. The duty under sub-paragraph (3) does not apply in prescribed circumstances. For the purposes of this paragraph a tax is a “relevant tax”, in relation to arrangements or arrangements proposed in a proposal of any description, if it is prescribed in relation to arrangements or proposals of that description by regulations under paragraph 3(1).
This paragraph applies where a person who is a promoter in relation to notifiable arrangements is providing (or has provided) services to any person (“the client”) in connection with the arrangements and either— For the purposes of this paragraph “the reference number information requirement” is the requirement under paragraph 23(2) to provide to the client prescribed information relating to the reference number allocated to the notifiable arrangements. The promoter must, within the prescribed period after the end of the relevant period, provide HMRC with prescribed information in relation to the client. In sub-paragraph (3) “the relevant period” means such period (during which the promoter is or would be subject to the reference number information requirement) as is prescribed. The promoter need not comply with sub-paragraph (3) in relation to any notifiable arrangements at any time after HMRC have given notice under paragraph 23(6) in relation to the arrangements.
Where HMRC receive from a person (P) a statement of reasons why a proposal or arrangements are not notifiable by P, HMRC may apply to the tribunal for an order requiring P to provide specified information or documents in support of the reasons. P must comply with a requirement under or by virtue of sub-paragraph (1) within— In sub-paragraph (2) “the relevant period” is the period of 15 days beginning with the day on which the order concerned is made. The power under sub-paragraph (1)—
This paragraph applies where a person is required to provide information under paragraph 23(2) or 24(3). HMRC may specify additional information which must be provided by that person to the recipients under paragraph 23(2) or 24(3) at the same time as the information referred to in sub-paragraph (1). HMRC may specify the form and manner in which the additional information is to be provided. For the purposes of this paragraph “additional information” means information supplied by HMRC which relates to notifiable proposals or notifiable arrangements in general.
A person may appeal against—
a decision of HMRC that a penalty under paragraph 1 is payable by that person, or
a decision of HMRC as to the amount of a penalty under paragraph 1 payable by the person.
Subject to the provisions of this Part of this Schedule, the following provisions of TMA 1970 apply for the purposes of this Part of this Schedule as they apply for the purposes of the Taxes Acts—
section 108 (responsibility of company officers),
section 114 (want of form), and
section 115 (delivery and service of documents).
Section 1217DA (restriction on use of losses while video game in development) is amended as follows. In subsection (2)— After subsection (2) insert—
In section 54 (double taxation relief by way of credit: non-trading debits on loan relationships) in subsection (7)—
in paragraph (b) of the definition of “carry-back claim”, after “459(1)(b)” insert “ or 463B(1)(b) ”,
in paragraph (b) of the definition of “carry-forward provision”, after “457(1)” insert “ , 463G(5) or 463H(4) ”, and
in paragraph (b) of the definition of “current-year provision or claim”, after “459(1)(a)” insert “ or 463B(1)(a) ”.
Sub-paragraph (2) applies if— Section 216(6)(ad) of IHTA 1984 (delivery date for accounts required by section 216(1)(c)) applies in relation to the account to be delivered in connection with the occasion as if the reference to the expiration of the period of 6 months from the end of the month in which the occasion occurs were a reference to—
Paragraph 30 (amendment of self-assessment during enquiry to prevent loss of tax) is amended as follows. In sub-paragraph (1)— For the purposes of this paragraph, the period during which an enquiry is in progress in relation to any matter is the whole of the period—
Section 92 (counteraction notices given after tax return made) is amended as follows. In subsection (3)— In subsection (4), after “enquiries” insert “referred to in subsection (3)”. In subsection (5)(a), after “return” insert “(so far as relating to the matters in question)”.
In this Schedule a “GAAR final decision notice” means a notice under— For the purposes of this Part of this Schedule, where the GAAR Advisory Panel gives an opinion on a referral under paragraph 26 the arrangements to which the opinion “applies” are— For the purposes of this Part of this Schedule, arrangements are “equivalent” to one another if they are substantially the same as one another having regard to—
HMRC may specify the form and manner in which information required to be provided by or under any of the information provisions must be provided if the provision is to be complied with. The “information provisions” are paragraphs 11(1), 12(1), 17(2), 18(2), 19(2), 21(3), 23(2), 24(3), 26(1) and (3), 27(3), 28(2), 29(1), 31(2) and 33(2).
An appeal under paragraph 20 is to be treated in the same way as an appeal against an assessment to the tax at stake (including by the application of any provision about bringing the appeal by notice to HMRC, about HMRC review of the decision or about determination of the appeal by the First-tier Tribunal or Upper Tribunal). Sub-paragraph (1) does not apply—
Section 1217DB (use of losses in later periods) is amended as follows. In subsection (2) after “45” insert “ or 45B ”. In subsection (3) for “loss relief” substitute “ section 37 and Part 5 of CTA 2010 ”. In subsection (4) for “Subsection (5) applies” substitute “ Subsections (5) and (5A) apply ”. In subsection (5) after paragraph (a) insert— After subsection (5) insert—
In section 55 (double taxation relief by way of credit: current year's non-trading deficits on loan relationships)—
in subsection (4)(b), after “459(1)(a)” insert “ or 463B(1)(a) ”, and
in subsection (5), for “or 459(1)(a)” substitute “ , 459(1)(a) or 463B(1)(a) ”.
Paragraph 31 (amendment of return by company during enquiry) is amended as follows. In sub-paragraph (1), for “is in progress into the return” substitute “into the return is in progress in relation to any matter to which the amendment relates or which is affected by the amendment”. In sub-paragraph (3) for “until after the enquiry is completed” substitute “while the enquiry is in progress in relation to any matter to which the amendment relates or which is affected by the amendment”. In sub-paragraph (4)(a)— In sub-paragraph (5)—
Section 93 (amendment, closure notices and discovery assessments in section 92 cases) is amended as follows. After subsection (3) insert— In subsection (4), after “completed,” insert “so far as relating to the matters to which the counteraction notice relates,”.
No duty of confidentiality or other restriction on disclosure (however imposed) prevents the voluntary disclosure by any person to HMRC of information or documents which the person has reasonable grounds for suspecting will assist HMRC in determining whether there has been a breach of any requirement imposed by or under this Part of this Schedule.
On an appeal under paragraph 20(a) that is notified to the tribunal, the tribunal may affirm or cancel HMRC’s decision. On an appeal under paragraph 20(b) that is notified to the tribunal, the tribunal may— If the tribunal substitutes its own decision for HMRC’s, the tribunal may rely on paragraph 16 or 17 (or both)— 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 21(1)).
Section 1217DC (terminal losses) is amended as follows. In subsection (1)(c)— In subsection (3) for the words after “treated” to the end substitute— In subsection (6) for the words after “treated” to the end substitute— After subsection (7) insert—
In section 156(1) (meaning of “losses” in Part 4)—
in paragraph (e) after “Chapter 16” insert “ or Chapter 16A ”,
omit “or” at the end of paragraph (f), and
after paragraph (g) insert, or
Paragraph 31A (referral of questions to the tribunal during enquiry) is amended as follows. In sub-paragraph (1), for “into” substitute “in relation to any matter relating to”. In sub-paragraph (5)—
In section 171 (tax returns where transfer pricing notice given), after subsection (2) insert—
HMRC may publish information about— The information that may be published is (subject to sub-paragraph (4))— The information may be published in any manner that HMRC considers appropriate. No information may be published under this paragraph that identifies a person who enters into a transaction forming part of notifiable arrangements within sub-paragraph (1)(a). But where a person who is a promoter within sub-paragraph (1)(b) is also a person mentioned in sub-paragraph (4), nothing in sub-paragraph (4) is to be taken as preventing the publication under this paragraph of information so far as relating to the person‘s activities as a promoter. Before publishing any information under this paragraph that identifies a person as a promoter within sub-paragraph (1)(b), HMRC must—
In section 371IF (determining the profits of a CFC's qualifying loan relationship), in paragraph (b) of step 5, after “16” insert “ or Chapter 16A ”.
In paragraph 31C (effect of referral on enquiry), in sub-paragraph (1)—
for paragraph (a) substitute—;
in paragraph (b), for “such a notice” substitute “a notice referred to in paragraph (a) or (aa)”.
Section 256 (notices given after tax return made), so far as continuing to have effect, is amended as follows. In subsection (2)— In subsection (6)(a), after “return” insert “(so far as relating to the matters in question)”.
This paragraph applies if— A ruling is “relevant” to the arrangements if— HMRC must publish information about the ruling. The information must be published in the same manner as HMRC published the information mentioned in sub-paragraph (1)(a) (and may also be published in any other manner that HMRC considers appropriate). A ruling is “final” if it is— Where a ruling is final by virtue of sub-paragraph (ii), (iii) or (iv) of sub-paragraph (5)(b), the ruling is to be treated as made at the time when the sub-paragraph in question is first satisfied. In this paragraph “tax arrangements” means arrangements in respect of which it would be reasonable to conclude (having regard to all the circumstances) that the main purpose, or one of the main purposes, was the obtaining of a tax advantage.
After section 371SK insert—
Paragraph 32 (completion of enquiry) is amended as follows. Any matter to which an enquiry relates is completed when an officer of Revenue and Customs informs the company by notice (a “partial closure notice”) that they have completed their enquiries into that matter. An enquiry is completed when an officer of Revenue and Customs informs the company by notice (a “final closure notice”)— A partial or final closure notice takes effect when it is issued. In subsection (2), after “concludes” insert “in a partial or final closure notice”. In the Taxes Acts, references to a closure notice under this paragraph are to a partial or final closure notice under this paragraph.
Section 257 (amendments, closure notices etc), so far as continuing to have effect, is amended as follows. After subsection (4) insert— In subsection (5), after “completed,” insert “so far as relating to the matters to which the Part 6 notice relates,”.
In subsection (2)(a) of section 371SL (group relief etc)—
after “(group relief)” insert “ or Part 5A of that Act (group relief for carried-forward losses) ”, and
after “by way of group relief” insert “ or group relief for carried-forward losses ”.
In paragraph 33 (direction to complete enquiry), in sub-paragraphs (1) and (3), for “closure notice” substitute “partial or final closure notice”.
In section 371IJ (claims), in subsection (4)(b), after “completed” insert “so far as relating to the matters to which the claim relates”.
Paragraph 34 (amendment of return after enquiry) is amended as follows. In sub-paragraph (1), for “closure notice” substitute “partial or final closure notice”. In sub-paragraph (2)— In sub-paragraphs (2A), (4)(c) and (5), for “closure notice” substitute “partial or final closure notice”.
In paragraph 42 (restriction on power to make discovery assessment or determination), in sub-paragraph (2A), for the words from “after any” to the end substitute “a notice within sub-paragraph (4) after any enquiries have been completed into the return (so far as relating to the matters to which the notice relates)”.
In paragraph 44 (situation not disclosed by return or related document etc), in sub-paragraph (1), for paragraph (b) substitute—.
In paragraph 61 (consequential claims etc), in sub-paragraphs (1)(a) and (3)(a), for “closure notice” substitute “partial or final closure notice”.
Paragraph 88 (conclusiveness) is amended as follows. In sub-paragraph (3)(b), at the end insert “(or is completed so far as relating to the matters to which the amount relates by the issue of a partial closure notice)”. In sub-paragraph (4)(b), at the end insert “(or the completion of the enquiry so far as relating to the matters to which the amount relates by the issue of a partial closure notice)”.
“the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs.
The amendments made by this Schedule have effect in relation to capital payments or benefits received in the tax year 2017-18 and subsequent tax years.
“operator” and “units”, in relation to a co-ownership authorised contractual scheme, have the meanings given by section 237(2) of that Act;
“offshore fund” has the meaning given by section 355 of TIOPA 2010;
After section 257LD insert—
In section 257MH (the number of employees requirement), in each of subsections (1) and (2) for “500” substitute “ 250 ”.
Section 257MQ (meaning of “excluded activity”) is amended as set out in sub-paragraphs (2) to (4). In subsection (1)— Omit subsection (2). After subsection (2) insert— After section 257MQ insert— Omit section 257MS (subsidised generation or export of electricity).
CTA 2010 is amended as follows.
After section 742A of ITA 2007 insert—
IHTA 1984 is amended as follows.
This paragraph applies in relation to the quasi-loan if— But this paragraph does not apply if paragraph 18 applies in relation to the quasi-loan. For the purposes of calculating the repayment amount in relation to the quasi-loan, the amount of each of the payments referred to in sub-paragraph (1)(b) is an amount equal to its value in the quasi-loan currency on the date it is made.
A person is a person who “enabled” the arrangements mentioned in paragraph 1 if that person is— This paragraph is subject to paragraph 13 (excluded persons).
For the purposes of paragraph 7 a person “marketed” the arrangements to T if, in the course of a business carried on by that person—
that person made available for implementation by T a proposal which has since been implemented, in relation to T, by the arrangements, or
that person—
communicated information to T or another person about a proposal which has since been implemented, in relation to T, by the arrangements, and
did so with a view to T entering into the arrangements or transactions forming part of the arrangements.
A person who— is not to be regarded as having enabled those arrangements. The persons within this sub-paragraph are—
This paragraph applies where— A designated HMRC officer must give the person mentioned in sub-paragraph (1)(b) a notice in writing— A person to whom a notice under this paragraph is given has 30 days, beginning with the day on which the notice is given, to send the designated HMRC officer (in writing) any representations as to why the opinion does not apply to the arrangements concerned. A designated HMRC officer may, on a written request by that person, extend the period during which representations may be made by that person. Paragraph 24(2) defines the arrangements that an opinion given on a referral under paragraph 26 “applies to”.
“Notifiable arrangements” means any arrangements not excluded by sub-paragraph (2) which— Arrangements that meet the requirements in paragraphs (a) to (c) of sub-paragraph (1) are not notifiable arrangements if they implement a proposal which is excluded from being a notifiable proposal by sub-paragraph (4). “Notifiable proposal” means a proposal for arrangements which, if entered into, would be notifiable arrangements (whether the proposal relates to a particular person or to any person who may seek to take advantage of it). A proposal is not a notifiable proposal if any of the following occur before 1 January 2018—
This paragraph describes when a person (P) is a promoter in relation to a notifiable proposal or notifiable arrangements. P is a promoter in relation to a notifiable proposal if, in the course of a relevant business, P— P is a promoter in relation to notifiable arrangements if— In this paragraph “relevant business” means any trade, profession or business which— In sub-paragraph (4)(b)— For the purposes of this paragraph anything done by a company is to be taken to be done in the course of a relevant business if it is done for the purposes of a relevant business falling within sub-paragraph (4)(b) carried on by another company which is a member of the same group. Section 170 of the TCGA 1992 has effect for determining for the purposes of sub-paragraph (6) whether two companies are members of the same group, but as if in that section— A person is not to be treated as a promoter by reason of anything done in prescribed circumstances. In the application of this Schedule to a proposal or arrangements which are not notifiable, a reference to a promoter is a reference to a person who would be a promoter under this paragraph if the proposal or arrangements were notifiable.
A person who is a promoter in relation to a notifiable proposal must, within the relevant period, provide HMRC with prescribed information relating to the proposal. In sub-paragraph (1) “the relevant period” is the period of 31 days beginning with the relevant date. In sub-paragraph (2) “the relevant date” is the earliest of the following—
This paragraph applies to any person who enters into any transaction forming part of notifiable arrangements as respects which neither that person nor any other person in the United Kingdom is liable to comply with paragraph 11(1), 12(1) or 17(2). The person must at the prescribed time provide HMRC with prescribed information relating to the arrangements.
Where a person (P) complies or purports to comply with paragraph 11(1), 12(1), 17(2) or 18(2) in relation to any notifiable proposal or notifiable arrangements, HMRC may within 90 days allocate a reference number to the notifiable arrangements or, in the case of a notifiable proposal, to the proposed notifiable arrangements. If HMRC do so it must notify the number to P and (where the person is one who has complied or purported to comply with paragraph 11(1) or 12(1)), to any other person— The allocation of a reference number to any notifiable arrangements (or proposed notifiable arrangements) is not to be regarded as constituting any indication by HMRC that the arrangements would or could as a matter of law result in the obtaining by any person of a tax advantage. In this Part of this Schedule “reference number”, in relation to any notifiable arrangements, means the reference number allocated under this paragraph.
This paragraph applies where a person who is a promoter in relation to notifiable arrangements has provided a person (“the client”) with the information prescribed under paragraph 23(2). The client must, within the relevant period, provide the promoter with prescribed information relating to the client. In sub-paragraph (2) “the relevant period” is the period of 11 days beginning with the later of— The duty under sub-paragraph (2) is subject to any exceptions that may be prescribed.
This paragraph applies where— HMRC may by written notice require the promoter to provide prescribed information in relation to any person other than the client who the promoter might reasonably be expected to know is or is likely to be a party to the arrangements. The promoter must comply with a requirement under or by virtue of sub-paragraph (2) within— In sub-paragraph (3) “the relevant period” is the period of 11 days beginning with the day on which the promoter receives the notice under sub-paragraph (2).
This paragraph applies where HMRC suspect— HMRC may by written notice require P to provide HMRC with one or both of the following— A notice must specify the proposal to which it relates. P must comply with a requirement under or sub-paragraph(2) within— In sub-paragraph (4) “the relevant period” is the period of 11 days beginning with the day on which the notice under sub-paragraph (2) is given.
Section 1 (overview of Act) is amended as follows. In subsection (2) (list of reliefs provided by Parts 4 to 7) after paragraph (f) insert— After subsection (2) insert—
In section 6 (excluded property), at the end insert—
HMRC may apply to the tribunal for an order that— An application must specify— On an application the tribunal may make the order only if satisfied that paragraph 3(1)(a) to (c) applies to the relevant arrangements and that they are not excluded from being notifiable by paragraph 3(2).
A person who is a promoter in relation to notifiable arrangements must, within the relevant period after the date on which the person first becomes aware of any transaction forming part of the arrangements, provide HMRC with prescribed information relating to the arrangements. In sub-paragraph (1) “the relevant period” is the period of 31 days beginning with that date. The duty under sub-paragraph (1) does not apply if the notifiable arrangements implement a proposal in respect of which notice has been given to HMRC under paragraph 11(1).
Section 17 (interpretation of Chapter 4 of Part 2) is amended as follows. In subsection (2) (meaning of “carried-back amount”)— In subsection (3) (meaning of “carried-forward amount”)—
In section 48 (excluded property)—
in subsections (3) and (3A), at the end insert “and to Schedule A1”;
in subsection (4), at the end (but on a new line) insert “This subsection is subject to Schedule A1.
HMRC may apply to the tribunal for an order that— An application must specify— On an application the tribunal may make the order only if satisfied that HMRC— Reasonable steps under sub-paragraph (3)(a) may (but need not) include taking action under paragraph 29 or 30. Grounds for suspicion under sub-paragraph (3)(b) may include— Where an order is made under this paragraph in respect of a proposal or arrangements, the relevant period for the purposes of sub-paragraph (1) of paragraph 11 or 12 in so far as it applies by virtue of the order is the period of 11 days beginning with the day on which the order is made. An order under this paragraph in relation to a proposal or arrangements is without prejudice to the possible application of any of paragraphs 11 to 15, other than by virtue of this paragraph, to the proposal or arrangements.
This paragraph applies where a person complies with paragraph 11(1) in relation to a notifiable proposal for arrangements and another person is— Any duty of the other person under paragraph 11(1) or 12(1) in relation to the notifiable proposal or notifiable arrangements is discharged if—
Section 46 (use of trade-related interest and dividends if insufficient trade profits) is amended as follows. For subsection (1) substitute— In subsection (2) at the beginning insert “ For the purposes of section 45 and 45B, ”.
In section 65 (charge at other times), after subsection (7B) (as inserted by section 30) insert—
This paragraph applies where a person complies with paragraph 12(1) in relation to notifiable arrangements and another person is— Any duty of the other person under paragraph 11(1) or 12(1) in relation to the notifiable proposal or notifiable arrangements is discharged if—
In section 47 (registered societies), in subsection (1), for “section 45” substitute “ sections 45 and 45B ”.
In section 157 (non-residents’ bank accounts), after subsection (3) insert—
Where a person is a promoter in relation to two or more notifiable proposals or sets of notifiable arrangements which are substantially the same (whether they relate to the same parties or different parties) the person need not provide information under paragraph 11(1) or 12(1) if the person has already provided information under either of those paragraphs in relation to any of the other proposals or arrangements.
In section 53 (leasing contracts and company reconstructions), in subsection (1)(e), for “or 45” substitute “ , 45, 45A or 45B ”.
In section 237 (imposition of charge), after subsection (2) insert—
In section 54 (non-UK resident company: receipts of interest, dividends or royalties), in subsection (2), for “or 45” substitute “ , 45, 45A or 45B ”.
In section 272 (general interpretation), in the definition of “excluded property”, after “above” insert “and Schedule A1”.
Section 56 (restriction on reliefs for limited partners) is amended as follows. In subsection (2)— In subsection (4)—
Section 59 (restriction on relief for members of LLPs) is amended as follows. In subsection (2)— In subsection (4)—
Section 61 (unrelieved losses of member of LLP brought forward) is amended as follows. In subsection (1), in the words before paragraph (a), for “This section” substitute “ Subsection (2) ”. After subsection (2) insert— In subsection (3)—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 95 (write-off of government investment: meaning of “carry forward losses”) is amended as follows. In subsection (1), in Type 1, after “45,” insert “ 45A, 45B, ”. In subsection (2) after “(group relief)” insert “ or Part 5A (group relief for carried forward losses) ”.
In section 99 (surrendering of losses and other amounts) in subsection (1)(c) after “16” insert “ or 16A ”.
In section 104 (meaning of “non-trading loss on intangible fixed assets” for purposes of section 99(1)(g)), for subsection (2) substitute—
In section 137 (giving of group relief: deduction from total profits) in subsection (5) (list of deductions to be made after group relief is given)—
omit “and” at the end of paragraph (b),
in paragraph (c) for “or 459” substitute “ , 459 or 463B ”, and
after paragraph (c) insert, and .
In section 189(2) (relief for qualifying charitable donations) at the end insert “ and group relief for carried-forward losses ”.
In section 269DA (surcharge on banking companies) in subsection (2) (calculation of “surcharge profits”)—
in the formula, after “NBGR+” insert “ NBGRCF+ ”, and
“NBGRCF” is the amount (if any) of non-banking group relief for carried-forward losses that is given in determining those taxable total profits (see section 269DBA);
After section 269DB insert—
Section 269DC (surcharge on banking companies: meaning of “non-banking or pre-2016 loss relief) is amended as follows. In subsection (3)(b)— In subsection (4)(b)— Omit subsection (5).
In section 385 (sales of lessors: no carry back of loss against the income) in subsection (2) after “periods)” insert “ or section 45F (relief for terminal trade losses) ”.
In section 398D (sales of lessors: restrictions on use of losses etc) after subsection (2) insert—
In section 427 (sales of lessors: no carry back of loss against the income) in subsection (2) after “periods)” insert “ or section 45F (relief for terminal trade losses) ”.
Chapter 5 of Part 9 (sales of lessors: anti-avoidance provisions) is amended as follows. In section 432 (introduction to section 433)— In section 433 (restrictions on relief for expenses treated as incurred under Chapter 3 or 4)— After section 433 insert—
In section 599 (real estate investment trusts: calculation of profits) after subsection (8) insert—
In section 601 (availability of group reliefs to a group UK REIT) in subsection (2)—
omit “and” at the end of paragraph (f), and
after paragraph (g) insert, and .
In section 705E (shell companies: restriction on relief for non-trading loss on intangible fixed assets), in subsection (3)(b), for “debit of” substitute “ loss on intangible fixed assets for ”.
In section 705F(2) (shell companies: apportionment of amounts), in column 1 of the table—
in row 4, after “457(1)” insert “ , 463G or 463H ”,
in row 4, omit “basic rule for deficits:”,
in row 5, omit from “, but excluding” to the end, and
in row 6, omit from “and treated” to the end.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
omit “or” at the end of paragraph (a),
after paragraph (a) insert— and
after paragraph (b) insert , or.
Section 888 (restrictions on leasing partnership losses) is amended as follows. In subsection (3) after “37” insert “ or 45A ”. In subsection (4)— In subsection (6) in the definition of “relevant loss relief provision”—
Schedule 4 (index of defined expressions) is amended as follows. the claimant company (in Part 5A) section 188FD the claim period (in Part 5A) section 188FD company (in Part 5A) section 188FD “group relief for carried-forward losses” section 188AA(4) holding company (in Part 5A) section 188FC(2) member of a consortium (in Part 5A) section 153(2) (applied by section 188FB) member of the same group of companies (in Part 5A) section 152 (applied by section 188FB) owned by a consortium (in Part 5A) section 153(1) and (3) (applied by section 188FB) profits (in Part 5A) section 188FD “the specified loss-making period” (in Part 5A) section 188FD 75% subsidiary (in Part 5A) section 151 (applied by section 188FB) the surrenderable amounts (in Part 5A) section 188FD the surrendering company (in Part 5A) section 188FD the surrender period (in Part 5A) section 188FD trade (in Part 5A) section 188FD trading company (in Part 5A) section 188FC(1) In the entry for “75% subsidiary (except in Part 5)” after “Part 5” insert “ and Part 5A ”.
The Treasury may by regulations make provision about how participants in a co-ownership authorised contractual scheme are to be treated for income tax purposes or corporation tax purposes in relation to investments made for the purposes of the scheme in an offshore fund.
Regulations under subsection (1) may, among other things, make provision—
for the operator of a co-ownership authorised contractual scheme to allocate to participants in the scheme amounts relating to investments made for the purposes of the scheme in an offshore fund;
for those amounts to be regarded as income of the participants to whom they are allocated;
as to when that income is to be brought into account for income tax purposes or corporation tax purposes.
Regulations under this section may—
modify an enactment (whenever passed or made);
contain consequential, supplementary and transitional provision.
Regulations under this section must 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.
References in this section to investments made for the purposes of a co-ownership authorised contractual scheme in an offshore fund include investments so made through one or more other co-ownership authorised contractual schemes.
In this section—
“co-ownership authorised contractual scheme” means a co-ownership scheme which is authorised for the purposes of the Financial Services and Markets Act 2000 by an authorisation order in force under section 261D(1) of that Act;
In section 257K(1)(a)(iii) (date by which investment must be made to qualify for SI relief) for “6 April 2019” substitute “ 6 April 2021 ”.
CTA 2010 is amended as follows.
This paragraph applies where— Each of A and P must ensure that the loan balance information in relation to the loan or quasi-loan is provided to B before the end of the period of 10 days beginning with the day after the loan charge date. The “loan balance information” is— In this paragraph “loan charge date” means— If, despite taking reasonable steps, A and P have failed to contact B to provide the loan balance information, each of them is responsible for ensuring that the Commissioners for Her Majesty’s Revenue and Customs are notified of that fact. A notification under sub-paragraph (5) must be made in such form and manner, and contain such information, as may be specified by, or on behalf of, the Commissioners for Her Majesty’s Revenue and Customs. “Loan”, “quasi-loan” and “outstanding” have the same meaning for the purposes of this paragraph as they have for the purposes of paragraph 1.
An amount of a quasi-loan is outstanding for the purposes of paragraph 1 if the initial debt amount exceeds the repayment amount. In sub-paragraph (1), “initial debt amount” means the total of— For the purposes of sub-paragraph (2)— In sub-paragraph (1), “repayment amount”, in relation to a quasi-loan, means the total of— A payment or transfer is to be disregarded for the purposes of sub-paragraph (4)(b) or (c) if there is any connection (direct or indirect) between the payment or transfer and a tax avoidance arrangement (other than the arrangement under which the quasi-loan was made). In this paragraph, “market value” has the same meaning as it has for the purposes of TCGA 1992 by virtue of Part 8 of that Act.
Paragraph 14 applies in relation to the quasi-loan if— The “quasi-loan period”, in relation to a quasi-loan, is the period—
The qualifying payments condition is met in relation to a qualifying loan if, during the relevant period— The “relevant period” in relation to a loan is the period beginning with the making of the loan and ending with the making of the application.
Section 184I of TCGA 1992 (notices under sections 184G and 184H) is amended as follows. In subsection (4)— In subsection (5), for “into the return” substitute “referred to in subsection (4)”. In subsection (7)(a), after “period” insert “(so far as relating to the matters in question)”. After subsection (9) insert— In subsection (10), after “completed,” insert “so far as relating to the matters to which the relevant notice relates,”.
In Schedule 36 to FA 2008 (information and inspection powers), in paragraphs 21(4) and 21ZA(3), at the end insert “so far as relating to the matters to which the taxpayer notice relates”.
T (within the meaning of paragraph 1) incurs a “defeat” in respect of abusive tax arrangements entered into by T (“the arrangements concerned”) if—
Condition A (in paragraph 5) is met, or
Condition B (in paragraph 6) is met.
Liability to a penalty under this Part of this Schedule does not arise in relation to a particular failure to comply if the person concerned (P) satisfies HMRC or the relevant tribunal (as the case may be) that there is a reasonable excuse for the failure. For this purpose—
Section 357H (introduction) is amended as follows. In subsection (5)—
Where this paragraph applies in relation to the quasi-loan— The initial debt amount, in relation to the quasi-loan, is an amount equal to the total of— The “reference date”, in relation to a right within sub-paragraph (2)(a) or (2)(b), means the date on which P acquires it. The repayment amount, in relation to the quasi-loan, is an amount equal to the total of— The “sterling value” of a payment is its value in sterling on the date it is made.
The making of an order under paragraph 4 or 5 against P does not of itself mean that P either did or did not have a reasonable excuse for non- compliance before the order was made. Where an order is made under paragraph 4 or 5 then for the purposes of paragraph 48—
Section 357KA (meaning of “Northern Ireland company”) is amended as follows. In subsection (1)(b), for “the SME condition” substitute “the SME (Northern Ireland employer) condition, the SME (election) condition”. In subsection (2), for “SME condition” substitute “SME (Northern Ireland employer) condition”. After subsection (2) insert— In subsection (4), after the definition of “Northern Ireland employer” insert—. After subsection (3) insert—
Where a person fails to comply with— then for the purposes of paragraph 48 legal advice which the person took into account is to be disregarded in determining whether the person had a reasonable excuse, if the advice was given or procured by that monitored promoter. In determining for the purpose of paragraph 48 whether or not a person who is a monitored promoter had a reasonable excuse for a failure to do something, reliance on legal advice is to be taken automatically not to constitute a reasonable excuse if either— In this paragraph “monitored promoter” means a person who is a monitored promoter for the purposes of Part 5 of FA 2014
Section 357KE (Northern Ireland workforce conditions) is amended as follows. In subsection (2)— After subsection (7) insert—
After section 357KE insert—
In the heading of Chapter 6 of Part 8B, at the end insert “that are Northern Ireland employers”.
In section 357M (Chapter 6: introductory), in subsection (1), for “SME condition” substitute “SME (Northern Ireland employer) condition”.
In the heading of Chapter 7 of Part 8B, after “losses etc:” insert “SMEs that are not Northern Ireland employers and”.
In section 357N (Chapter 7: introductory), in subsection (1), after “by virtue of” insert “the SME (election) condition or”.
Section 357OB (Northern Ireland intangibles credits and debits: SMEs) is amended as follows. In the heading, at the end, insert “that are Northern Ireland employers”. In subsection (1)(a), for “SME condition” substitute “SME (Northern Ireland employer) condition”.
Section 357OC (Northern Ireland intangibles credits and debits: large companies) is amended as follows. In the heading, after “debits:” insert “SMEs that are not Northern Ireland employers and”. In subsection (1), after “by virtue of” insert “the SME (election) condition or”.
Section 357VB (relevant Northern Ireland IP profits: SMEs) is amended as follows. In the heading, at the end, insert “that are Northern Ireland employers”. In subsection (1)(a), for “SME condition” substitute “SME (Northern Ireland employer) condition”.
Section 357VC (relevant Northern Ireland IP profits: large companies) is amended as follows. In the heading, after “profits:” insert “SMEs that are not Northern Ireland employers and”. In subsection (1)(a), after “by virtue of” insert “the SME (election) condition or”.
Section 357WA (meaning of “Northern Ireland firm”) is amended as follows. In subsection (1)(b), for “SME partnership condition” substitute “SME (Northern Ireland employer) partnership condition, the SME (election) partnership condition”. In subsection (2), for “SME partnership condition” substitute “SME (Northern Ireland employer) partnership condition”. After subsection (2) insert— After subsection (3) insert— In subsection (4)— In subsection (5) omit paragraph (c).
After section 357WB, insert—
In section 357WC (Northern Ireland profits etc of firm determined under Chapter 6), in subsection (2), for “SME partnership condition” substitute “SME (Northern Ireland employer) partnership condition”.
Section 357WD (Northern Ireland profits etc of firm determined under Chapter 7) is amended as follows. For subsections (1) to (3) substitute— In subsection (4), after “losses etc:” insert “SMEs that are not Northern Ireland employers and”.
In section 357WE (sections 357WC and 357WD: interpretation), omit subsection (2).
Section 357WF (application of section 747 of CTA 2009 to Northern Ireland firm) is amended as follows. In paragraph (e)— After paragraph (e) insert—.
Section 357WG (application of Part 8A to Northern Ireland firm) is amended as follows. In paragraph (g)— For paragraph (h) substitute—
In Schedule 4 (index of defined expressions)—
omit the entry for “SME condition (in Part 8B)”;
disqualified close company (in Part 8B) section 357KEA SME (Northern Ireland employer) condition (in Part 8B) section 357KA SME (election) condition (in Part 8B) section 357KA
In section 30 of FA 1994 (air passenger duty: rates of duty), in subsection (4A) (long haul rates of duty)—
in paragraph (a), for “£75” substitute “ £78 ”;
in paragraph (b), for “£150” substitute “ £156 ”.
The amendments made by this section have effect in relation to the carriage of passengers beginning on or after 1 April 2018.
In Schedule 20B to FA 1993, for paragraphs 2 to 12 substitute—
In OTA 1975, in section 6(1A), for “paragraph 5” substitute “ paragraph 6 ”.
In FA 1980, in paragraph 15(9A) of Schedule 17, for “paragraph 5” substitute “ paragraph 6 ”.
The amendment made by this section is to be treated as having come into force on 23 November 2016.
Part of gross gaming yield Rate The first £2,423,500 15% The next £1,670,500 20% The next £2,925,500 30% The next £6,175,500 40% The remainder 50%
The amendment made by this section has effect in relation to accounting periods beginning on or after 1 April 2017.
Part 3 of FA 2014 (general betting duty, pool betting duty and remote gaming duty) is amended in accordance with subsections (2) to (8).
In section 159 (remote gaming duty: gaming payments), for subsection (4) substitute—
After section 159 insert—
In section 160 (remote gaming duty: prizes)—
in subsection (1), in the opening words, after “account” insert “ only ”,
omit subsection (2),
in subsection (3), at the end insert “ (but where a gaming payment is returned by being credited to an account this subsection has effect subject to subsection (1)) ”, and
at the end insert—
After section 160 insert—
In section 188 (gaming), after subsection (2) insert—
In section 190 (index), in the Table, in the entry for “game of chance”, for “188(1)(b)” substitute “ 188(1)(b) and (3) ”.
In section 194(4) (regulations under Part 3 to which the procedure in section 194(5) is to apply), before paragraph (a), insert—.
The amendments made by this section have effect with respect to accounting periods beginning on or after 1 August 2017.
After section 8U of TPDA 1979 insert—
In section 9 of TPDA 1979 (regulations), in subsection (1A), for “or 8U” substitute “ , 8U or 8V ”.
For the purposes of this Part a person carries on an imported goods fulfilment business if the person, by way of business— at a time when the conditions in subsection (2) are met in relation to the goods.
stores imported goods which are owned by a person who is not UK-established, or
stores imported goods on behalf of a person who is not UK-established,
The conditions are that—
there has been no supply of the goods in the United Kingdom for the purposes of VATA 1994, and
the goods are being offered for sale in the United Kingdom or elsewhere.
But a person does not carry on an imported goods fulfilment business if the person's activities within subsection (1) are incidental to the carriage of the goods.
Goods are “imported goods” if they have been imported into the United Kingdom for the purposes of VATA 1994 (as to which, see section 15 and paragraph 1 of Schedule 9ZB).
A person is “UK-established” if the person's business establishment is in the United Kingdom as determined for the purposes of section 9 of VATA 1994.
But goods that are treated as imported for the purposes of VATA 1994 as a result of paragraph 3 of Schedule 9ZB are not imported goods for the purposes of this Part.
A person may not carry on an imported goods fulfilment business otherwise than in accordance with an approval given by the Commissioners under this section.
The Commissioners may approve a person to carry on an imported goods fulfilment business only if they are satisfied that the person is a fit and proper person to carry on the business.
The Commissioners may approve a person to carry on an imported goods fulfilment business for such periods and subject to such conditions or restrictions as they may think fit or as they may by regulations made by them prescribe.
The Commissioners may at any time for reasonable cause vary the terms of, or revoke, an approval under this section.
In this Part “approved person” means a person approved under this section to carry on an imported goods fulfilment business.
The Commissioners must maintain a register of approved persons.
The register is to contain such information relating to approved persons as the Commissioners consider appropriate.
The Commissioners may make publicly available such information contained in the register as they consider necessary to enable those who deal with a person who carries on an imported goods fulfilment business to determine whether the person in question is an approved person in relation to that activity.
The information may be made available by such means (including the internet) as the Commissioners consider appropriate.
The Commissioners may by regulations make provision—
regulating the approval and registration of persons under this Part,
regulating the variation or revocation of any such approval or registration, or of any condition or restriction to which such an approval or registration is subject,
about the register maintained under section 50,
regulating the carrying on of an imported goods fulfilment business, and
imposing obligations on approved persons.
The regulations may, in particular, make provision—
requiring applications, and other communications with the Commissioners, to be made electronically;
as to the procedure for the approval and registration of bodies corporate which are members of the same group;
requiring approved persons to keep and make available for inspection such records as may be prescribed by or under the regulations.
The Commissioners may disclose to an approved person information held by Her Majesty's Revenue and Customs in connection with a function of Her Majesty's Revenue and Customs, but only for the purpose mentioned in subsection (2).
The purpose is to assist the approved person in complying with obligations imposed on that person by virtue of section 51.
An approved person to whom information is disclosed under subsection (1)—
may use the information only for the purpose of complying with obligations imposed on that person by virtue of section 51, and
may not further disclose the information except with the consent of the Commissioners.
Section 19 of the Commissioners for Revenue and Customs Act 2005 (offence) applies to a disclosure in contravention of subsection (3)(b) as it applies to a disclosure, in contravention of section 20(9) of that Act, of revenue and customs information relating to a person whose identity is specified in the disclosure or can be deduced from it.
A person who— commits an offence.
carries on an imported goods fulfilment business, and
is not an approved person,
In proceedings for an offence under subsection (1) it is a defence to show that the person did not know, and had no reasonable grounds to suspect, that the person—
was carrying on an imported goods fulfilment business, or
was not an approved person.
A person is taken to have shown the fact mentioned in subsection (2) if—
sufficient evidence of that fact is adduced to raise an issue with respect to it, and
the contrary is not proved beyond reasonable doubt.
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, or a fine, or both;
in Scotland, to imprisonment for a term not exceeding 12 months, or a fine not exceeding the statutory maximum, or both;
in Northern Ireland, to imprisonment for a term not exceeding 6 months, or a fine not exceeding the statutory maximum, or both.
A person guilty of an offence under this section is liable on conviction on indictment to—
imprisonment for a period not exceeding 7 years,
a fine, or
both.
In relation to an offence committed before 2 May 2022 the reference in subsection (4)(a) to the general limit in a magistrates’ court is to be read as a reference to 6 months.
If a person— any goods within subsection (2) are liable to forfeiture under CEMA 1979.
carries on an imported goods fulfilment business, and
is not an approved person,
Goods are within this subsection if—
they are stored by the person, and
their storage by the person constitutes, or has constituted, the carrying on of an imported goods fulfilment business by the person.
Schedule 13 provides for a penalty to be payable by a person who carries on an imported goods fulfilment business and is not an approved person.
The Commissioners may make regulations (“penalty regulations”) imposing a penalty for the contravention of—
any condition or restriction imposed under this Part;
regulations under this Part.
The amount of a penalty imposed by the penalty regulations is to be specified in the regulations, but must not exceed £3,000.
The penalty regulations may make provision for the assessment and recovery of a penalty imposed by the regulations.
The Commissioners may by regulations make provision for corporate bodies which are members of the same group to be jointly and severally liable for any penalties imposed under—
Schedule 13;
penalty regulations.
FA 1994 is amended as follows.
In section 13A(2) (customs and excise reviews and appeals: relevant decisions) after paragraph (gb) insert—.
In Schedule 5 to that Act (decisions subject to review and appeal) after paragraph 9A insert—
Regulations under this Part may—
make provision which applies generally or only for specified cases or purposes;
make different provision for different cases or purposes;
include incidental, consequential, transitional or transitory provision;
confer a discretion on the Commissioners;
make provision by reference to a notice to be published by the Commissioners.
Regulations under this Part are to be made by statutory instrument.
A statutory instrument containing regulations under this Part is subject to annulment in pursuance of a resolution of the House of Commons.
This section does not apply to regulations under section 59 (commencement).
In this Part—
“GAAP accounts” means accounts drawn up in accordance with generally accepted accounting practice,
In the italic heading before section 257M, after “enterprise” insert “ : general ”. Omit sections 257MA and 257MB (which are superseded by the provision inserted by sub-paragraph (3) below). After section 257MN insert— In section 1014 (orders and regulations), in subsection (5)(b) (orders and regulations excluded from subsection (4)) for sub-paragraph (iiia) substitute—.
Section 257MM (requirement to use money raised and to trade for minimum period) is amended as follows. After subsection (3) insert— In subsection (7)(c) after “(3),” insert “ (3A), ”.
Chapter 4 of Part 15D of CTA 2009 (losses of separate orchestral trade) is amended as follows.
Section 730C of CTA 2010 is amended as follows. In subsection (2)— In subsection (3), for “A deductible amount that meets conditions A and B” substitute “ In the case of a relevant claim within subsection (2)(a) or (b), a deductible amount that meets conditions A and B (a “restricted deductible amount”) ”. After subsection (3) insert— In subsection (4)— After subsection (7) insert— The amendments made by this paragraph do not have effect if the relevant day (as defined in section 730B(1) of CTA 2010) is before 1 April 2017.
In section 97(4) of TCGA 1992 (supplementary provisions in relation to settlements), at the end insert “(see sections 97A to 97C for the value of benefits conferred by a capital payment made by way of loan or by way of making movable property or land available)”. After section 97 of TCGA 1992 insert—
Part 7A of ITEPA 2003 is amended as follows.
In paragraph 59 of Schedule 2 to FA 2011 (transitional provision relating to Part 7A of ITEPA 2003), in sub-paragraph (1)(a), after “ITEPA 2003” insert “or paragraph 1 of Schedule 11 to F(No. 2)A 2017”.
This paragraph applies in relation to a loan where— But this paragraph does not apply if paragraph 8 applies in relation to the loan. For the purposes of calculating the repayment amount in relation to the loan, the amount of each of the payments referred to in sub-paragraph (1)(b) is an amount equal to its value in the loan currency on the date it is made.
Paragraphs 11 to 14 apply where P makes a quasi-loan to T by reason of acquiring a right to a payment in a particular currency (the “quasi-loan currency”). For the purposes of paragraphs 11 to 14, the value of an amount in a particular currency is to be determined by reference to an appropriate spot rate of exchange.
This paragraph applies where— HMRC may not assess any penalty payable under paragraph 1 in respect of the arrangements concerned until the required percentage of relevant defeats is reached. For the purposes of this paragraph the “required percentage of relevant defeats” is reached when HMRC reasonably believe that defeats have been incurred in the case of more than 50% of the related arrangements implementing the proposal. Sub-paragraph (2) does not apply in relation to a penalty if the person liable to the penalty requests assessment of the penalty sooner than the time allowed by sub-paragraph (2).
“Offshore tax non-compliance” means tax non-compliance which involves an offshore matter or an offshore transfer, whether or not it also involves an onshore matter. Tax non-compliance “involves an onshore matter” if and to the extent that it does not involve an offshore matter or an offshore transfer. For the meaning of “involves an offshore matter or an offshore transfer” (in relation to the different descriptions of tax non-compliance) see paragraphs 9 to 11.
Liability to a penalty under paragraph 1 does not arise in relation to a particular failure to correct any relevant offshore tax non-compliance within the RTC period if the person concerned (P) satisfies HMRC or the relevant tribunal (as the case may be) that there is a reasonable excuse for the failure. For this purpose— Advice is disqualified (subject to sub-paragraph (4)) if— Where advice would otherwise be disqualified under any of paragraphs (a) to (d) of sub-paragraph (3) the advice is not disqualified if at the end of the RTC period P— In sub-paragraph (3) “an interested person” means, in relation to any relevant offshore tax non-compliance— In this paragraph “avoidance arrangements” means arrangements as respects which, in all the circumstances, it would be reasonable to conclude that their main purpose, or one of their main purposes, is the obtaining of a tax advantage. But arrangements are not avoidance arrangements for the purposes of this paragraph if (although they fall within sub-paragraph (6))— Where any relevant offshore tax non-compliance arose originally because information was submitted to HMRC on the basis that particular avoidance arrangements had an effect which they did not have, those avoidance arrangements are “relevant avoidance arrangements” in relation to that tax non-compliance. In sub-paragraph (6)—
Schedule 22 to FA 2016 (asset-based penalty for offshore inaccuracies and failures) is amended as follows. In paragraph 2 (meaning of standard offshore penalty)— Where a standard offshore penalty is imposed under paragraph 1 of Schedule 18 to FA 2017, the tax year to which that penalty relates is— In sub-paragraph (4) references to uncorrected relevant offshore tax non-compliance are to the relevant offshore tax non-compliance in respect of which the standard offshore penalty is imposed. In paragraph 5 (meaning of offshore PLR), in sub-paragraph (1)(a) after “FA 2008” insert “or Schedule 18 to FA 2017”. In paragraph 6 (restriction on imposition of multiple asset-based penalties for same asset), in sub-paragraph (1)(a) after “penalty” insert “(other than one imposed under paragraph 1 of Schedule 18 to FA 2017)”. After paragraph 6 insert— In relation to cases where the standard offshore penalty is a penalty falling within paragraph 2(4A), each reference to provisions of ITTOIA 2005 in column 1 of the Table in sub-paragraph (2) includes a reference— In paragraph 19(2) (interpretation: incorporation of definitions from other legislation for “or Schedule 55 to FA 2009” substitute “Schedule 55 to FA 2009 or Part 1 of Schedule 18 to FA 2017”.
Section 1217SA (restriction on use of losses before completion period) is amended as follows. In subsection (1) for “Subsection (2)” substitute “ This section ”. In subsection (2)— After subsection (2) insert—
Section 554Z9 (remittance basis: A does not meet section 26A requirement) is amended in accordance with this paragraph. In subsection (1), for “Subsection (2) applies” substitute “Subsections (2) and (2A) apply”. In subsection (1A), for “subsection (2) does not apply” substitute “subsections (2) and (2A) do not apply”. At the beginning of subsection (2) insert “Except in a case within subsection (2A),”. After subsection (2) insert— In subsection (3) for “this purpose” substitute “the purposes of subsections (2) and (2A)”. In subsection (5)—
This paragraph applies in relation to the quasi-loan if the quasi-loan currency is a currency other than sterling. But this paragraph does not apply if paragraph 14 applies in relation to the quasi-loan. The amount of the quasi-loan that is outstanding, at the relevant time, is to be calculated in sterling as follows— Step 1 Calculate, in the quasi-loan currency, the amount that is outstanding at that time. Step 2 Take the value in sterling, at that time, of that amount. For the purposes of this paragraph and paragraph 14, the “relevant time” in relation to a quasi-loan is the time immediately before the end of 5 April 2019. See paragraph 12 for provision about repayments made in a currency other than the quasi-loan currency.
TMA 1970 is amended as follows. In section 103ZA (disapplication of sections 100 to 103 in the case of certain penalties) omit the “or” after paragraph (j) and after paragraph (k) insert , or In section 107A (relevant trustees)—
Section 1217SB (use of losses in the completion period) is amended as follows. In subsection (1) after “45” insert “ or 45B ”. In subsection (2) for “loss relief” substitute “ section 37 and Part 5 of CTA 2010 ”.
Section 554Z10 (remittance basis: A meets section 26A requirement) is amended in accordance with this paragraph. In subsection (1) for “Subsection (2) applies” substitute “Subsections (2) and (2A) apply”. At the beginning of subsection (2) insert “Except in a case within subsection (2AA),”. After subsection (2) insert—
Section 1217SC (terminal losses) is amended as follows. In subsection (1)(b) after “45” insert “ or 45B ”. In subsection (3) for the words after “treated” to the end substitute— In subsection (6) for the words after “treated” to the end substitute— After subsection (8) insert—
Section 554Z11 (remittance basis: supplementary) is amended in accordance with this paragraph. In subsection (4), for “554Z9(2) or 554Z10(2)” substitute “554Z9(2) or (2A) or 554Z10(2) or (2AA)”. In subsection (5), for “554Z9(2) or 554Z10(2)” substitute “554Z9(2) or (2A) or 554Z10(2) or (2AA)”. In subsection (6), for “554Z9(2) or 554Z10(2)” substitute “554Z9(2) or (2A) or 554Z10(2) or (2AA)”.
Section 554Z11A (temporary non-residents) is amended in accordance with this paragraph. In subsection (2)— In subsection (3)(d)(i), for “554Z9(2) or 554Z10(2)” substitute “554Z9(2) or (2A) or 554Z10(2) or (2AA)”.
For the purposes of this Part two or more bodies corporate are members of a group 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 is to be taken to control another body corporate if—
it is empowered by or under legislation 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 or individuals are to be taken to control a body corporate if the individual or individuals (were the individual or individuals a company) would be that body's holding company within the meaning of section 1159 of, and Schedule 6 to, the Companies Act 2006.
This Part comes into force—
so far as it confers powers to make regulations, on the day on which this Act is passed, and
for all other purposes, on such day as the Commissioners may by regulations made by statutory instrument appoint.
Regulations under subsection (1)(b) may appoint different days for different purposes.
TMA 1970 is amended as set out in subsections (2) and (3).
After section 12B insert—
Before Schedule 1AA insert—
Subsections (1) to (3) come into force on such day as the Treasury may by regulations made by statutory instrument appoint.
Regulations under subsection (4) may appoint different days for different purposes.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Commissioners for Her Majesty's Revenue and Customs may by regulations amend or modify any provision of the Taxes Acts in consequence of the provision made by section 60 ....
Regulations under subsection (2) may make transitional, transitory or saving provision.
Regulations under subsection (2) must be made by statutory instrument.
A statutory instrument containing regulations under subsection (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.
Subsections (2) to (5) ... come into force on such day as the Treasury may by regulations made by statutory instrument appoint.
Regulations under subsection (6) may appoint different days for different purposes.
Schedule 11 to VATA 1994 (administration, collection and enforcement) is amended as set out in subsections (2) to (4).
In paragraph 2 (accounting and payment)—
in sub-paragraph (1) for “and the making of returns” substitute “ , the making of returns and the submission of information ”;
after sub-paragraph (11) insert—
In paragraph 6 (duty of taxable person to keep records)—
omit sub-paragraph (4);
at the end insert—
In paragraph 6A (power to direct keeping of records), for sub-paragraph (7) substitute—
In section 83(1) of VATA 1994 (appealable decisions), for paragraph (zc) substitute—
Subsections (3)(a) and (4) of this section come into force when the first regulations under paragraph 6(5) of Schedule 11 to VATA 1994 come into force.
Regulations under paragraph 6(5) of Schedule 11 to VATA 1994 may not make provision requiring records to be kept or preserved in electronic form which has effect before 1 April 2019.
Schedule 15 makes provision for partial closure notices in respect of enquiries under sections 9A, 12ZM and 12AC of TMA 1970 and Schedule 18 to FA 1998.
Schedule 24 to FA 2007 (penalties for errors) is amended as set out in subsections (2) and (3).
After paragraph 3 insert—
In paragraph 18, after sub-paragraph (5) insert—
In FA 2014, omit section 276 (which is superseded by the provision inserted by subsections (2) and (3)).
The amendments made by this section have effect in relation to any document of a kind listed in the Table in paragraph 1 of Schedule 24 to FA 2007 which—
is given to HMRC on or after the day on which this Act is passed, and
relates to a tax period that—
begins on or after 6 April 2017, and
ends on or after the day on which this Act is passed.
In subsection (5) “tax period”, and the reference to giving a document to HMRC, have the same meaning as in Schedule 24 to FA 2007 (see paragraph 28 of that Schedule).
Schedule 16 makes provision for penalties for persons who enable tax avoidance which is defeated.
Schedule 17 contains provision about the disclosure of tax avoidance schemes involving VAT or other indirect taxes.
In consequence of the provision made by Schedule 17, section 58A of, and Schedule 11A to, VATA 1994 (disclosure of VAT avoidance schemes) cease to have effect to require a person to disclose any scheme which—
is first entered into by that person on or after 1 January 2018,
constitutes notifiable arrangements under Schedule 17,
implements proposals which are notifiable proposals under Schedule 17.
No scheme or proposed scheme may be notified to the Commissioners under paragraph 9 of Schedule 11A to VATA 1994 (voluntary notification of schemes) on or after 1 January 2018.
This section and Schedule 17 come into force—
so far as is necessary for enabling the making of regulations under that Schedule, on the passing of this Act, and
for all other purposes, on 1 January 2018.
Schedule 18 makes provision for and in connection with requiring persons to correct any offshore tax non-compliance subsisting on 6 April 2017.
VATA 1994 is amended as follows.
After section 69B (penalty for breach of record-keeping requirements imposed by directions) insert—
In section 70 (mitigation of penalties)—
in the heading, for “and 67” substitute “ , 67, 69A and 69C ”,
in subsection (1) for “or 69A” substitute “ , 69A or 69C ”, and
after subsection (4) insert—
In section 76 (assessment of amounts due by way of penalty etc), in subsection (1)(b) for “to 69B” (in both places) substitute “ to 69C ”.
In section 83(1) (appeals), after paragraph (n) insert—.
After paragraph 21 of Schedule 24 to FA 2007 (penalties for errors: double jeopardy) insert—
Section 69C does not apply in relation to transactions entered into before this section comes into force.
In Part 2 of Schedule 23 to FA 2011 (data-gathering powers: relevant data-holders), after paragraph 13C insert—
This section applies in relation to relevant data with a bearing on any period (whether before, on or after the day on which this Act is passed).
In section 44(2) of FA 2016 (tax treatment of supplementary welfare payments: Northern Ireland) for “the Housing Benefit (Amendment) Regulations (Northern Ireland) 2016 (S.R. (N.I.) 2016 No. 258)” substitute “ the Housing Benefit (Amendment No. 2) Regulations (Northern Ireland) 2016 (S.R. (N.I.) 2016 No. 326) ”.
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 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, followed by a year Finance (No.2) Act of that year F(No.3)A, followed by a year Finance (No.3) Act of that year ICTA Income and Corporation Taxes Act 1988 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 OTA 1975 Oil Taxation Act 1975 TCGA 1992 Taxation of Chargeable Gains Act 1992 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
This Act may be cited as the Finance (No. 2) Act 2017.