Statement by the Maltese EU Presidency on the destruction of cultural heritage in the Georgian region of Abkhazia
Income tax is charged for the tax year 2014-15.
For that tax year—
the basic rate is 20%,
the higher rate is 40%, and
the additional rate is 45%.
For that tax year—
the amount specified in section 10(5) of ITA 2007 (basic rate limit) is replaced with “ £31,865 ”, and
the amount specified in section 35(1) of that Act (personal allowance for those born after 5 April 1948) is replaced with “ £10,000 ”.
Accordingly for that tax year—
section 21 of that Act (indexation of limits), so far as relating to the basic rate limit, does not apply, and
section 57 of that Act (indexation of allowances), so far as relating to the amount specified in section 35(1) of that Act, does not apply.
For the tax year 2015-16—
the amount specified in section 10(5) of ITA 2007 (basic rate limit) is replaced with “ £31,785 ”, and
the amount specified in section 35(1) (personal allowance) is replaced with “£10,600”.
Accordingly, for that tax year—
section 21 of that Act (indexation of limits), so far as relating to the basic rate limit, does not apply, and
section 57 (indexation of allowances), so far as relating to the amount specified in section 35(1), does not apply.
In section 34(1)(a) of that Act (introduction), omit “, 36”.
In section 35 of that Act (personal allowance for those born after 5 April 1948)—
in subsection (1)(a), for “1948” substitute “ 1938 ”, and
in the heading, for “1948” substitute “ 1938 ”.
Omit section 36 of that Act (personal allowance for those born after 5 April 1938 but before 6 April 1948).
In section 45(4)(b) of that Act (marriages before 5 December 2005), omit “36(2) or”.
In section 46(4)(b) of that Act (marriages and civil partnerships on or after 5 December 2005), omit “36(2) or”.
In section 57 of that Act (indexation of allowances)—
in subsection (1)(a), for “1948” substitute “ 1938 ”, ...
in subsection (4) omit “36(2),”.
in subsection (1)(h), omit “36(2),”, and
The amendments made by subsections (3) to (8) have effect for the tax year 2015-16 and subsequent tax years.
In section 7 of ITA 2007 (the starting rate for savings) for “10%” substitute “ 0% ”.
For the tax year 2015-16 the amount specified in section 12(3) of that Act (starting rate limit for savings) is replaced with “ £5,000 ”.
Accordingly section 21 of that Act (indexation of limits), so far as relating to the starting rate limit for savings, does not apply for that tax year.
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The amendments made by subsections (1) and (4) have effect for the tax year 2015-16 and subsequent tax years.
ITA 2007 is amended as follows.
In section 21 (indexation of the basic rate limit and starting rate limit for savings)—
in each of subsections (1), (3) and (3A), for “retail prices index” substitute “ consumer prices index ”, and
after subsection (5) insert—
In section 57 (indexation of allowances)—
in each of subsections (2), (3) and (4), for “retail prices index” substitute “ consumer prices index ”, and
after subsection (6) insert—
The amendments made by subsections (2) and (3) have effect for the tax year 2015-16 and subsequent tax years.
Corporation tax is charged for the financial year 2015.
For the financial year 2014 the small profits rate is—
20% on profits of companies other than ring fence profits, and
19% on ring fence profits of companies.
For the purposes of Part 3 of CTA 2010, for that year—
the standard fraction is 1/400th, and
the ring fence fraction is 11/400ths.
In subsection (1) “ring fence profits” has the same meaning as in Part 8 of that Act (see section 276 of that Act).
Schedule 1—
sets the corporation tax rates for ring fence profits for the financial year 2015 and future years, and
contains provision about the abolition of the small profits rate for profits other than ring fence profits.
For the tax year 2014-15 the amount specified in section 3(2) of TCGA 1992 (annual exempt amount) is replaced with “ £11,000 ”.
Accordingly section 3(3) of that Act (indexation of annual exempt amount) does not apply for that tax year.
For the tax year 2015-16 and subsequent tax years the amount specified in section 3(2) of TCGA 1992 (annual exempt amount) is replaced with “ £11,100 ”.
Section 3(3) of that Act (indexation of annual exempt amount) does not apply in relation to the tax year 2015-16 (but subsection (1) does not override section 3(3) of that Act for subsequent tax years).
In relation to expenditure incurred during the period beginning with the start date and ending with 31 December 2015, section 51A of CAA 2001 (entitlement to annual investment allowance) has effect as if in subsection (5) the amount specified as the maximum allowance (which in the absence of this section would be £250,000 in relation to expenditure incurred before 1 January 2015 and £25,000 in relation to expenditure incurred on or after that date) were £500,000.
Schedule 2 contains—
provision about chargeable periods which straddle the start date or 1 January 2016, and
amendments of FA 2013.
In this section and that Schedule “the start date” means—
for corporation tax purposes, 1 April 2014, and
for income tax purposes, 6 April 2014.
ITA 2007 is amended as set out in subsections (2) to (8).
After section 55 insert—
In section 26 (tax reductions), in subsection (1)(a), after the entry relating to Chapter 3 of Part 3 insert— “ Chapter 3A of Part 3 of this Act (transferable tax allowance for married couples and civil partners), ”.
In section 31 (total income: supplementary), in subsection (2), after “basic” insert “ rate ”.
In section 33 (overview of Part)—
in subsection (3), after “partners” insert “ where a party to the marriage or civil partnership is born before 6 April 1935 ”,
after that subsection insert—,
in subsection (4), in the opening words, for “and 3” substitute “ , 3 and 3A ”,
in subsection (4)(a), after “Chapter 3” insert “ or 3A ”, and
in subsection (4)(b), for “those allowances and tax reductions” substitute “ the allowances under Chapter 2 and tax reductions under Chapter 3 ”.
In the heading for Chapter 3 of Part 3 after “partners” insert “ : persons born before 6 April 1935 ”.
In section 56 (residence), in subsection (1)(b), after “Chapter 3” insert “ or 3A ”.
In section 809G (claim for remittance basis: effect on allowances), in subsection (2)—
omit the “or” following paragraph (b), and
after paragraph (b) insert—.
TMA 1970 is amended as set out in subsections (10) and (11).
In section 42 (procedure for making claims)—
in subsection (10), after “above” insert “ and subject to subsection (10A) below ”, and
after subsection (10) insert—
In section 43A (further assessments: claims etc), in subsection (2A) after paragraph (a) insert—.
The amendments made by this section have effect for the tax year 2015-16 and subsequent tax years.
Part 4 of ITEPA 2003 (exemptions) is amended as follows.
In Chapter 11 (miscellaneous exemptions), after section 320B insert—
In section 266 (exemption of non-cash vouchers for exempt benefits), in subsection (1), omit the “or” at the end of paragraph (d) and after paragraph (e) insert, or .
The amendments made by this section have effect in accordance with provision contained in an order made by the Treasury.
Section 1014(4) of ITA 2007 (orders etc subject to annulment) does not apply in relation to an order under subsection (4).
Chapter 1 of Part 8 of ITA 2007 (relief for interest payments) is amended as follows.
In section 392 (loan to buy interest in close company), in subsection (4)—
“close company” includes a company which—
in the definition of “close investment-holding company”, for “section 34 of CTA 2010” substitute “ section 393A ”.
After section 393 insert—
Accordingly—
in section 383(2)(c), after “close company” insert “ etc ”,
in the italic heading before section 392, after “close company” insert “ etc ”;
in the heading of section 392, after “close company” insert “ etc ”.
The amendments made by this section have effect in relation to interest paid in the tax year 2014-15 or any subsequent tax year.
In section 397 of ITA 2007 (eligibility requirements for interest on loans within section 396), for subsection (2)(a) substitute—.
The amendment made by this section has effect in relation to interest paid in the tax year 2014-15 or any subsequent tax year.
Schedule 3 makes provision in relation to the remittance basis.
Chapter 7 of Part 2 of ITEPA 2003 (income tax treatment of agency workers) is amended as follows.
For section 44 (treatment of workers supplied by agencies) substitute—
In section 45 (arrangements with agencies)—
in paragraph (a), omit “(“the agency”)”, and
in paragraph (b), omit “with the agency”.
In section 46 (cases involving unincorporated bodies etc)—
in subsection (1)(a), omit “, or is under an obligation to personally provide,”, and
in subsection (2), for the words from “under” to “contract” substitute “ in consequence of the worker providing the services ”.
After section 46 insert—
In section 47 (interpretation of Chapter 7), omit subsection (1).
In Chapter 3 of Part 11 of that Act (PAYE: special types of payer or payee), section 688 (agency workers) is amended as follows.
For subsection (1) substitute—
In subsection (2)—
for paragraph (a) (and the “and” at the end of that paragraph) substitute—, and
for “agency” substitute “ deemed employer ”.
the client” means the person who is the client for the purposes of section 44; “the deemed employer” means the person with whom the individual is treated under section 44 as having an employment, the duties of which consist of the services;
The amendments made by this section are treated as having come into force on 6 April 2014.
In Part 4 of the Income Tax (Pay As You Earn) Regulations 2003 (S.I. 2003/2682) (payments, returns and information), after Chapter 3 (PAYE records) insert—
In Chapter 3 of Part 11 of ITEPA 2003 (PAYE: special types of payer or payee), section 688 (agency workers) (as amended by section 16) is amended as follows.
After subsection (2) insert—
In subsection (3)—
“company” includes a limited liability partnership;
“director” has the meaning given by section 67; “officer”, in relation to a company, means any manager, secretary or other similar officer of the company, or any person acting or purporting to act as such;
The amendment made by subsection (1) is to be treated as having been made by the Commissioners for Her Majesty's Revenue and Customs in exercise of the power conferred by subsection (2A) of section 688 of ITEPA 2003 (inserted by subsection (3)).
Chapter 3A of Part 4 of the Income Tax (Pay As You Earn) Regulations 2003 (inserted by subsection (1)) has effect in relation to relevant PAYE debts that are to be deducted, accounted for or paid on or after 6 April 2014.
After section 716A of ITEPA 2003 insert—
Section 98 of TMA 1970 (penalties: special returns etc) is amended as follows.
After subsection (4E) insert—
In the second column of the Table, at the appropriate place insert “ Regulations under section 716B of ITEPA 2003. ”.
The amendments made subsections (2) to (4) have effect from such day as the Treasury may appoint by order made by statutory instrument.
In section 222 of ITEPA 2003 (payments by employer on account of tax where deduction not possible), in subsection (1)(c), for “beginning with the relevant date” substitute “ after the end of the tax year in which the relevant date falls ”.
The amendment made by this section has effect in relation to payments of income treated as made on or after 6 April 2014.
Section 689 of ITEPA 2003 (PAYE: employee of non-UK employer) is amended as follows.
After subsection (1A) insert—
In subsection (2), for “The” substitute “ If subsection (1C) does not apply, the ”.
The amendments made by this section are treated as having come into force on 6 April 2014.
ITEPA 2003 is amended as follows.
In section 222 (payments by employer on account of tax where deduction not possible)—
in subsection (1)(a), after “689” insert “ , 689A ”, and
in subsection (3), after “employer)” insert “ or section 689A(3) (deemed payments of PAYE income of continental shelf workers by person other than employer) ”.
In section 421L (persons to whom certain duties to provide information and returns apply)—
in subsection (3), after paragraph (b) insert—, and
after subsection (5) insert—
In section 689 (provision about PAYE for employees of non-UK employers), after subsection (1) insert—
After that section insert—
In section 690 (employee non-resident etc), in subsection (10)—
after “689”, in the first place it appears, insert “ or 689A ”, and
after “689”, in the second place it appears, insert “ or (as the case may be) 689A ”.
In section 710 (notional payments: accounting for tax), in subsection (2)—
in paragraph (a)—
after “689” insert “ , 689A ”, and
for “or 689(3)(a)” substitute “ , 689(3)(a) or 689A(4)(a) ”, and
in paragraph (b), after “689(2)” insert “ or 689A(3) ”.
In section 689A (inserted by subsection (5)), at the end insert—
The amendment made by subsection (5) is treated as having come into force—
on 26 March 2014 for the purposes of making regulations under section 689A(7) of ITEPA 2003, and
on 6 April 2014 for remaining purposes.
The amendments made by subsections (2), (4), (6) and (7) are treated as having come into force on 6 April 2014.
In section 180 of ITEPA 2003 (threshold for benefit of a loan to be treated as earnings), in subsections (1)(a) and (b), (2) and (3), for “£5,000” (wherever occurring) substitute “ £10,000 ”.
The amendments made by this section have effect for the tax year 2014-15 and subsequent tax years (and apply to loans made at any time).
In section 114 of ITEPA 2003 (cars, vans and related benefits), omit subsection (3) (which prevents a charge by virtue of Chapter 6 of Part 3 of that Act where an amount constitutes earnings by virtue of any other provision).
The amendment made by this section has effect for the tax year 2014-15 and subsequent tax years.
Chapter 6 of Part 3 of ITEPA 2003 (taxable benefits: cars, vans and related benefits) is amended as follows.
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at the end of paragraph (a) insert “or”,
omit paragraph (c) and the “or” before it, and
for “to 141” substitute “and 140”.
Section 139 (cars with a CO2 figure: the appropriate percentage) is amended in accordance with subsections (4) to (6).
In subsection (2) —
in paragraph (a) for “5%” substitute “ 7% ”,
in paragraph (aa) for “9%” substitute “ 11% ”, and
in paragraph (b) for “13%” substitute “ 15% ”.
In subsection (3), for “14%” substitute “ 16% ”.
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Section 140 (cars without a CO2 figure: the appropriate percentage) is amended in accordance with subsections (8) to (10).
In subsection (2), in the Table —
for “15%” substitute “ 16% ”, and
for “25%” substitute “ 27% ”.
In subsection (3)(a), for “5%” substitute “ 7% ”.
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Section 142 (car first registered before 1st January 1998: the appropriate percentage) is amended in accordance with subsections (13) and (14).
In subsection (2), in the Table —
for “15%” substitute “ 16% ”,
for “22%” substitute “ 27% ”, and
for “32%” substitute “ 37% ”.
In subsection (3), for “32%” substitute “ 37% ”.
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In consequence, section 23(4) and (5)(b) of FA 2013 is omitted.
The amendments made by this section have effect for the tax year 2016-17 and subsequent tax years.
In section 144 of ITEPA 2003 (deduction for payments for private use: cars), for subsection (1)(b) substitute—
In section 158 of that Act (reduction for payments for private use: vans), for subsection (1)(b) substitute—
The amendments made by this section have effect for the tax year 2014-15 and subsequent tax years.
Section 322 of CTA 2009 (release of debts: cases where credits not required to be brought into account) is amended as follows.
In subsection (2), for “condition A, B or C” substitute “ any of conditions A to D ”.
After subsection (5) insert—
The amendments made by this section have effect in relation to releases of liabilities on or after 26 November 2013.
CTA 2009 is amended as follows.
In section 465(3) (list of provisions under which certain distributions are not excluded from Part 5) before paragraph (a) insert—.
In section 490 (holding in an OEIC, unit trust or offshore fund treated as rights under a creditor relationship) for subsection (2) substitute—
Omit section 490(4) and (5) (which are superseded by the new section 490(2)(b)).
For section 492 (rules about tax calculations in avoidance cases where holding comes within section 490) substitute—
In section 495 (meaning of “qualifying holdings”)—
in subsection (1)—
for “would itself fail” substitute “ itself fails ”, and
omit “, even on the assumption in subsection (2)”, and
omit subsection (2).
The amendments made by this section have effect in relation to accounting periods beginning on or after 1 April 2014.
For the purposes of subsection (7), an accounting period beginning before, and ending on or after, 1 April 2014 is to be treated as if so much of the period as falls before that date, and so much of the period as falls on or after that date, were separate accounting periods.
An apportionment for the purposes of subsection (8) must be made in accordance with section 1172 of CTA 2010 (time basis) or, if that method produces a result that is unjust or unreasonable, on a just and reasonable basis.
CTA 2009 is amended as follows.
In each of sections 345 and 346 (loan relationships: transferee leaving group)—
in subsection (2), omit “If condition A or B is met,”, and
omit subsections (3) to (5).
In each of sections 631 and 632 (derivative contracts: transferee leaving group)—
in subsection (2), omit “If condition A or B is met,”, and
omit subsections (3) and (4).
An amendment made by this section has effect where the cessation of membership of the relevant group occurs on or after 1 April 2014.
In Chapter 11 of Part 7 of CTA 2009 (derivative contracts: tax avoidance), after section 695 (but before the following italic heading) insert—
The amendment made by this section has effect in relation to accounting periods beginning on or after 5 December 2013. This is subject to subsections (3) to (6).
In the case of a company which has an accounting period beginning before 5 December 2013 and ending on or after that date (“the straddling period”), for the purposes of subsections (2) and (4) so much of the straddling period as falls before that date, and so much of that period as falls on or after that date, are treated as separate accounting periods.
The amendment does not have effect in relation to debits, arising from a specified contract, which relate to the profit transfer and are or would be brought into account for an accounting period beginning on or after 5 December 2013 to the extent that the total of those debits does not exceed the amount (if any) by which—
the total amount of credits arising from that contract which—
relate to the profit transfer, and
are or would be brought into account for the purposes of Part 7 of CTA 2009 for any accounting period ending before 5 December 2013, exceeds
the total amount of debits arising from that contract which relate to the profit transfer and are or would be brought into account as mentioned in paragraph (a)(ii).
In the case of credits to which subsection (6) applies, section 695A of CTA 2009 has effect as if—
subsection (2) of that section applied to credits in respect of a specified contract as it applies to debits in respect of a specified contract,
subsection (3) of that section were omitted, and
in subsection (4) the reference to subsection (3) were to subsection (2).
This subsection applies to credits which, had A or B had an accounting period beginning with 5 December 2013 and ending with 22 January 2014, would have been brought into account for that period by A or (as the case may be) B for the purposes of Part 7 of that Act (ignoring section 695A of CTA 2009).
In Chapter 1 of Part 20 of CTA 2009 (general calculation rules: restriction on deductions), after section 1305 insert—
The amendment made by this section has effect in relation to payments made on or after 19 March 2014.
In section 1058 of CTA 2009 (amount of tax credit), in subsection (1)(a), for “11%” substitute “ 14.5% ”.
The amendment made by this section has effect in relation to expenditure incurred on or after 1 April 2014.
Chapter 3 of Part 15 of CTA 2009 (film tax relief) is amended as follows.
In section 1198 (UK expenditure), in subsection (1), for “25%” substitute “ 10% ”.
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The amendment made by subsection (2) has effect in relation to films the principal photography of which is not completed before such day as the Treasury may specify by order.
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A specified day may be before the day on which the order is made, but may not be before 1 April 2014.
The Treasury may by order amend section 1198(1) of CTA 2009 (as amended and inserted by this section) in connection with an application for State aid approval.
In this section “State aid approval” means approval that the provision made by this section, to the extent that it constitutes the granting of aid to which any of the provisions of Article 107 or 108 of the Treaty on the Functioning of the European Union applies, is, or would be, compatible with the internal market, within the meaning of Article 107 of that Treaty.
An order under subsection (7) may—
make incidental, supplemental, consequential, transitional or saving provision;
contain provision having effect in relation to films mentioned in subsection (4).
Part 15A of CTA 2009 (television production) is amended as follows.
In section 1216A (overview), in subsection (3)(a), for “its” substitute “ each qualifying ”.
In section 1216B (activities of television production company treated as a separate trade)—
in subsection (1), after the second “a” insert “ qualifying ”;
in subsection (2), for “television” substitute “ qualifying relevant ”;
at the end insert—
Part 15B of CTA 2009 (video games development) is amended as follows.
In section 1217A (overview), in subsection (3)(a), for “its” substitute “ each qualifying ”.
In section 1217AE—
in the heading, for “UK” substitute “ EEA ”;
for subsection (1) substitute—;
in subsection (2), for “UK expenditure and non-UK expenditure” substitute “ EEA expenditure and non-EEA expenditure ”.
In section 1217B (activities of video games development company treated as a separate trade)—
in subsection (1), after the second “a” insert “ qualifying ”;
in subsection (2), after the second “other” insert “ qualifying ”;
at the end insert—
In section 1217CF (additional deduction for qualifying expenditure)—
after subsection (3) insert—;
in subsection (4)(a), for “subsection (3)” substitute “ subsections (3) and (3A) ”;
at the end insert—
In the following provisions, for “UK expenditure” substitute “ EEA expenditure ”
section 1217C(2)(c);
the heading above section 1217CE;
the heading of section 1217CE;
section 1217CE(1);
section 1217CG(1)(a) and (2)(a);
the heading of section 1217EB;
section 1217EB(1)(a) and (b) and (3).
In Schedule 4 to CTA 2009 (index of defined expressions)—
omit the entry for “UK expenditure (in Part 15B)”;
EEA expenditure (in Part 15B) section 1217AE
The amendments made by this section have effect in relation to accounting periods beginning on or after the day specified in an order made by the Treasury under paragraph 3 of Schedule 17 to FA 2013 (and sub-paragraphs (3) and (4) of that paragraph apply accordingly).
Part 6 of CTA 2010 (charitable donations relief: payments to charity) is amended in accordance with subsections (2) to (7).
In section 189 (relief for charitable donations), in subsection (5), after “subject to” insert “ Chapter 2A of this Part, ”.
In section 192 (condition as to repayment), in subsection (6), omit the “and” at the end of paragraph (a) and after that paragraph insert—.
In section 200 (company wholly owned by a charity), after subsection (4) insert—
In section 202 (meaning of “charity”), before paragraph (b) insert—.
After that section insert—
After Chapter 2 insert—
Chapter 9 of Part 13 of that Act (other special types of company: community amateur sports clubs) is amended in accordance with subsections (9) to (12).
After section 661D (but before the italic heading) insert—
In section 664 (exemption for interest and gift aid income)—
in subsection (1), omit the “and” after paragraph (a) and after paragraph (b) insert, and ,
in that subsection, for “and gift aid income” substitute “ , gift aid income and company gift income ”, and
“company gift income”, in relation to a club, means gifts of money made to the club by companies which are not charities,
In section 665A (claims in relation to interest and gift aid income), in subsection (1)(b) for “and gift aid” substitute “ , gift aid and company gift ”.
Accordingly—
in the italic heading before section 661D, omit “qualifying for gift aid relief”,
in the heading for section 664, for “and gift aid” substitute “ , gift aid and company gift ”
in the heading for section 665A, for “and gift aid” substitute “ , gift aid and company gift ”.
The amendments made by this section have effect in relation to payments made on or after 1 April 2014.
But the amendments made by subsections (1) to (7) are to be ignored for the purposes of section 199 of CTA 2010 (payment attributed to earlier accounting period) if the claim mentioned in subsection (1)(c) of that section is in respect of an accounting period ending before 1 April 2014.
The earlier accounting periods mentioned in section 202B(3) of CTA 2010 (see subsection (7) of this section) do not include any accounting period ending before 1 April 2014.
Schedule 4 contains provision about relief in respect of theatrical productions.
Part 14 of CTA 2010 (change in company ownership) is amended as follows.
In section 688 (meaning of “significant increase in the amount of a company's capital”), in subsection (2), for paragraph (b) and the “or” before it substitute, and
In section 723 (changes in indirect ownership), in subsection (1), after “section 724” insert “ or 724A ”.
After section 724 insert—
In section 726 (interpretation of Chapter), after “acquisition” insert “ and shareholder ”.
The amendments made by this section have effect in relation to any change of ownership which occurs on or after 1 April 2014.
In section 730B(1) of CTA 2010 (interpretation of transfer of deductions provisions), in paragraph (a) of the definition of “deductible amount” after “trade,” insert “ other than an amount treated as such an expense by section 450(a) of CAA 2001 (research and development allowances treated as expenses in calculating profits of a trade), ”.
The amendment made by this section has effect in relation to a qualifying change if the relevant day is on or after 1 April 2014.
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Chapter 10 of Part 7 of TIOPA 2010 (tax treatment of financing costs and income: interpretation) is amended as follows.
In section 345 (meaning of “UK group company” and “relevant group company”), for subsection (7) substitute—
In section 353A (effect of Part 7 on parties to capital market arrangements), in subsection (4), before paragraph (a) insert—.
The amendment made by subsection (2) has effect in relation to periods of account of the worldwide group starting on or after 5 December 2013.
CTA 2010 is amended as follows.
In section 169 (interpretation of provisions to determine proportion of beneficial entitlement)—
“arrangements”—
after that subsection insert—
In section 188 (other definitions for Part 5), in subsection (1), in the definition of “company” for “section 156(2A)” substitute “ sections 156(2A) and 169(3) ”.
The amendments made by this section have effect in relation to accounting periods ending on or after 1 January 2015.
In section 165(1) of FA 2004 (rules about payment of pension by registered scheme to member) in pension rule 5 (payments of drawdown pension in a year not to exceed 120% of basis amount for year) for “120%” substitute “ 150% ”.
In section 167(1) of FA 2004 (rules about payment of pension death benefits by registered scheme in respect of member) in pension death benefit rule 4 (payments of dependants' drawdown pension not to exceed 120% of basis amount for year) for “120%” substitute “ 150% ”.
In paragraph 14A(2) of Schedule 28 to FA 2004 (amount of minimum income requirement for flexible drawdown by member) for “£20,000” substitute “ £12,000 ”.
In paragraph 24C(2) of Schedule 28 to FA 2004 (amount of minimum income requirement for flexible drawdown by dependant) for “£20,000” substitute “ £12,000 ”.
In consequence of subsections (1) and (2), in FA 2013 omit section 50(1) and (2).
The amendments made by subsections (1), (2) and (5) have effect in relation to pension drawdown years beginning on or after 27 March 2014.
The amendment made by subsection (3) has effect in relation to declarations made under section 165(3A) of FA 2004 on or after 27 March 2014.
The amendment made by subsection (4) has effect in relation to declarations made under section 167(2A) of FA 2004 on or after 27 March 2014.
In paragraph 7(4) of Schedule 29 to FA 2004 (amount of commutation limit for purposes of trivial commutation lump sum) for “£18,000” substitute “ £30,000 ”.
In paragraph 8 of Schedule 29 to FA 2004 (value of crystallised pension rights for trivial commutation purposes)—
in sub-paragraph (1)(a) omit “, as adjusted under sub-paragraph (2)”,
in sub-paragraph (1)(b) omit “, as adjusted under sub-paragraph (3)”, and
omit sub-paragraphs (2) and (3), as originally enacted and as substituted by FA 2013.
In consequence of subsection (1), in FA 2011 omit paragraph 4(2) of Schedule 18.
In consequence of subsection (2)(c), in FA 2013 omit paragraph 8(4) of Schedule 22.
In article 23C(4) of the Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572) (modifications of Schedule 29 to FA 2004) in the inserted paragraph 7A(1)(a) (limit at or below which additional sums can be trivial commutation lump sums) for “£2,000” substitute “ £10,000 ”.
In the Registered Pension Schemes (Authorised Payments) Regulations 2009 (S.I. 2009/1171)—
in each of regulations 6(1)(b), 8(1)(a), 11(1)(c), 11A(1)(b) and 12(1)(e) (limit at or below which certain payments by registered pension scheme can be authorised payments) for “£2,000” substitute “ £10,000 ”,
in regulation 10(3)(b) (certain payments by registered pension scheme which can be authorised payments if value of member's pension rights is not more than £18,000) for “£18,000” substitute “ £30,000 ”,
in regulation 11(1)(d) (upper limit on total value of member's benefits under the scheme which would make the payment and all related schemes) for “£2,000” substitute “ £10,000 ”,
in regulation 11A(2) (may not be more than one previous payment under regulation 11A) for “one payment” substitute “ two payments ”, and
in regulation 12(4) (certain payments by registered pension scheme can be authorised payments only if property held in respect of at least 20 members exceeds £2,000) for “£2,000” substitute “ £10,000 ”.
In consequence of subsection (6)(b), in the Registered Pension Schemes (Miscellaneous Amendments) Regulations 2011 (S.I. 2011/1751) omit regulation 8(4).
The amendments made by subsections (1) to (4) have effect for commutation periods beginning on or after 27 March 2014 and do so irrespective of whether the nominated date is before, on or after 27 March 2014.
The amendment made by subsection (5)—
has effect for lump sums paid on or after 27 March 2014, and
is to be treated as having been made by the Treasury under the powers to make orders conferred by section 283(2) of FA 2004.
The amendments made by subsections (6) and (7) have effect for payments made on or after 27 March 2014.
The amendments made by subsection (6) are to be treated as having been made by the Commissioners for Her Majesty's Revenue and Customs under the powers to make regulations conferred by section 164(1)(f) and (2) of FA 2004.
Schedule 5 makes further provision in connection with pension flexibility.
Schedule 6 contains transitional provision in relation to the new standard lifetime allowance for the tax year 2014-15 etc.
Schedule 34 to FA 2004 (application of certain charges to non-UK pension schemes) is amended as follows.
In paragraph 10 (pension input amount for cash balance and defined benefits arrangements), for sub-paragraph (2) substitute—
In paragraph 11 (pension input amount for other money purchase arrangements), for sub-paragraph (2) substitute—
The amendments made by this section have effect for the tax year 2014-15 and subsequent tax years.
Schedule 7 makes provision in relation to pension schemes.
An accredited competitor who performs a Grand Prix activity is not liable to income tax in respect of any income arising from the activity if the non-residence condition is met.
The following are Grand Prix activities—
competing at the Glasgow Grand Prix, and
any activity that is performed during the games period the main purpose of which is to support or promote the Glasgow Grand Prix.
The non-residence condition is that—
the accredited competitor is non-UK resident for the tax year 2014-15, or
the accredited competitor is UK resident for the tax year 2014-15 but the year is a split year as respects the competitor and the activity is performed in the overseas part of the year.
Section 966 of ITA 2007 (deduction of sums representing income tax) does not apply to any payment or transfer which gives rise to income benefiting from the exemption under subsection (1).
In this section—
“Taxes Acts” has the same meaning as in TMA 1970 (see section 118(1) of that Act);
ITEPA 2003 is amended as follows.
The amendments made by paragraphs 3 and 5(1), (2)(a), (3) and (4) have effect in relation to capital expenditure incurred on or after 5 December 2013. The amendments made by paragraph 4 have effect in relation to any accounting period of a company in which a post-commencement authorisation day falls. In sub-paragraph (2) “post-commencement authorisation day” means an authorisation day (as defined for Chapter 7 of Part 8 of CTA 2010) that is 5 December 2013 or a later day. Section 5 of CAA 2001 (when capital expenditure is incurred) applies for the purposes of this paragraph as for the purposes of that Act.
Part 16 of CTA 2010 (factoring of income etc) is amended as follows.
This Part of this Schedule makes provision for the coming into force of the amendments made by Part 1.
In section 9B of TMA 1970 (amendment of return by relevant person during enquiry), in subsection (1), after “taxpayer)” insert “, or in accordance with Chapter 2 of Part 4 of the Finance Act 2014 (amendment of return after follower notice),”.
In paragraph 17 of Schedule 55 to FA 2009 (penalty for failure to make returns etc: interaction with other penalties), after sub-paragraph (2)(b) insert , or
In section 102 of FA 1986 (gifts with reservation), in subsection (5) omit the “and” after paragraph (h) and after paragraph (i) insert ; and The amendment made by this paragraph has effect in relation to disposals made on or after 6 April 2014.
In section 103ZA of that Act (disapplication of sections 100 to 103 (penalty provisions) in the case of certain penalties)—
omit “or” at the end of paragraph (f), and
at the end of paragraph (g) insert , or
In section 227 (scope of Part 4) in subsection (4)(e) omit “approved”.
In Chapter 1 (transfers of income streams) section 756 (partnership shares) is amended as follows. In subsection (1) omit “if condition A or B is met”. Omit subsections (2) and (3). The amendments made by this paragraph have effect for cases where the transfer of a right to relevant receipts occurs on or after 1 April 2014.
In section 417 (scope of Part 7) in subsection (2), in the entry for Chapter 7, omit “approved”.
After Chapter 1 insert— The amendment made by this paragraph has effect for cases where the arrangements mentioned in section 757A(1) of CTA 2010 are made on or after 1 April 2014.
In section 431A (provision relating to restricted securities) in subsection (2)(b) for “an approved” substitute “a Schedule 3”.
After Chapter 3 insert— The amendment made by this paragraph has effect for cases where the arrangements mentioned in section 779A(2) of CTA 2010 are made on or after 1 April 2014.
In section 473 (introduction to taxation of securities options) in subsection (4)(a) for “approved” substitute “Schedule 3”.
In section 476 (charge on occurrence of chargeable event) in subsection (6), in the entry for section 519, omit “approved”.
In section 549 (application of Chapter 11 of Part 7) in subsection (2)(b) omit “approved”.
Section 554E (exclusions under Part 7A) is amended as follows. In subsection (1)(b) for “an approved” substitute “a Schedule 3”. In subsection (3)(a)(ii) and (b)(ii) for the first “an approved” substitute “a Schedule 3”. In subsection (4)(a) and (b) for the second “approved” substitute “Schedule 3”.
In section 697 (PAYE: enhancing the value of an asset) in subsection (4)—
in paragraph (a) omit the words from “Schedule 3” to the second “or”,
after paragraph (a) insert—, and
in paragraph (b) for “such a scheme” substitute “a scheme mentioned in any of the preceding paragraphs”.
In section 701 (PAYE: meaning of “asset”) in subsection (2)(c)—
in sub-paragraph (i) omit “Schedule 3 (approved SAYE option schemes) or”, and
after sub-paragraph (i) insert—.
In section 195 of FA 2004 (pensions: transfer of certain shares to be treated as payment of contribution) in subsection (5), in the definition of “SAYE option scheme”, omit “approved”.
Section 94A of ITTOIA 2005 (costs of setting up SAYE option scheme or CSOP scheme) is amended as follows. In subsection (1)— In subsection (2)— In subsection (4) for “approval is given” (in both places) substitute “relevant date falls”. After subsection (4) insert—
Section 703 of ITTOIA 2005 (SAYE interest: meaning of “certified SAYE savings arrangement”) is amended as follows. In subsection (2)(b) for “an approved” substitute “a Schedule 3”. In subsection (3) for the definition of “SAYE option scheme” substitute—
Section 999 of CTA 2009 (deduction for costs of setting up SAYE option scheme etc) is amended as follows. In subsection (1)— In subsection (2)— In subsection (6) for “approval is given” (in all places) substitute “relevant date falls”. After subsection (6) insert—
“index of defined expressions” means a provision contained in an Act relating to taxation which lists where expressions used in the Act, or in a particular part of the Act, are defined or otherwise explained.
any other tax adviser of such a person,
In Schedule 29 to FA 2004 (authorised lump sums under registered pension schemes) after paragraph 1 (conditions for a lump sum to be a pension commencement lump sum) insert—
Sub-paragraphs (1) to (8) have effect subject to the following— For the purposes of sub-paragraph (8A)(a)(ii), the member is treated as not having become entitled to a pension as a result of the cancelled contract having been entered into.
A transfer is also a block transfer if— In paragraph 23(6) of Schedule 36 to FA 2004 (meaning of “block transfer”) after “22(6)” insert “and (6A), but for this purpose paragraph 22(6A)(c) is to be read as if its reference to paragraph 22(7)(a) were a reference to sub-paragraph (7) of this paragraph”.
Sub-paragraph (2) applies on and after 6 April 2014 in the case of an individual— if notice of intention to rely on it is given to an officer of Revenue and Customs before 6 April 2017. Part 4 of FA 2004 has effect in relation to the individual as if the standard lifetime allowance were— But sub-paragraph (2) does not apply at any time when any of the following provisions applies in the case of the individual— “Relevant arrangement”, in relation to an individual, means an arrangement relating to the individual under— An individual’s “relevant amount” is the sum of amounts A, B, C and D (see paragraphs 2 to 5). Sub-paragraphs (7) and (8) apply if rights of an individual under a relevant arrangement become subject to a pension debit where the transfer day falls on or after 6 April 2014. For the purpose of applying sub-paragraph (2) in the case of the individual on and after the transfer day, the individual’s relevant amount is reduced (or further reduced) by the following amount— where— X is the appropriate amount, Y is 5% of X, and Z is the number of tax years beginning after 5 April 2014 but ending on or before the transfer day. (If the formula gives a negative amount, it is to be taken to be nil.) But if the individual’s relevant amount would be reduced (or further reduced) to £1,250,000 or less, sub-paragraph (2) is not to apply at all in the case of the individual on and after the transfer day. In sub-paragraphs (6) to (8) “appropriate amount” and “transfer day”, in relation to a pension debit, have the same meaning as in section 29 of WRPA 1999 or Article 26 of WRP(NI)O 1999 (as the case may be).
ITEPA 2003 is amended as follows.
Part 13 of ITA 2007 (tax avoidance) is amended as follows.
A person meets this condition if the Commissioners publish information about the person in reliance on section 94 of FA 2009 (publishing details of deliberate tax defaulters).
A person meets this condition if the person fails to comply with any of the following provisions of Part 7 of FA 2004 (disclosure of tax avoidance schemes)— For the purposes of sub-paragraph (1), failure to comply includes cases (despite section 118(2) of TMA 1970) where a person had a reasonable excuse for not doing the thing required to be done.
A person meets this condition if a professional body— Misconduct may only be prescribed for the purposes of sub-paragraph (1)(a) if it is misconduct other than misconduct in matters (such as the payment of fees) that relate solely or mainly to the person’s relationship with the professional body. A “professional body” means—
A person (“P”) meets this condition if P enters into an agreement with another person (“C”) which relates to a relevant proposal or relevant arrangements in relation to which P is a promoter, on terms which— A contractual obligation falls within this sub-paragraph if it prevents or restricts the disclosure by C to HMRC of information relating to the proposals or arrangements, whether or not by referring to a wider class of persons. A contractual obligation falls within this sub-paragraph if it requires C to impose on any tax adviser to whom C discloses information relating to the proposals or arrangements a contractual obligation which prevents or restricts the disclosure of that information to HMRC by the adviser. A contractual obligation falls within this sub-paragraph if it requires C to— A contractual obligation falls within this paragraph if it requires C to obtain the consent of P before— In sub-paragraph (5)(b), the reference to withdrawing or discontinuing an appeal includes any action or inaction which results in an appeal being discontinued. In this paragraph—
“the tribunal” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal.
In Schedule 18 to FA 1998 (company tax returns, assessments and related matters), in paragraph 8 (calculation of tax payable), in subsection (1), for “section 19, 20 or 21 of the Corporation Tax Act 2010 (marginal relief for companies with small profits)” substitute “ Chapter 3A of Part 8 of the Corporation Tax Act 2010 (marginal relief for companies with small ring fence profits etc) ”.
After section 264 of ITA 2007 insert— The amendment made by this paragraph has effect in relation to claims for relief by reference to shares issued on or after 6 April 2014.
A person meets this condition if the person is named in a report under section 285 as a result of the Commissioners determining that the person breached the Code of Practice on Taxation for Banks by reason of promoting arrangements which the person cannot have reasonably believed achieved a tax result which was intended by Parliament.
A person meets this condition if the person is charged with a relevant offence. The fact that a person has been charged with an offence is disregarded for the purposes of this paragraph if— An acquittal is not taken into account for the purposes of sub-paragraph (2) if an appeal has been brought against the acquittal and has not yet been disposed of. “Relevant offence” means any of the following—
A person meets this condition if a regulatory authority imposes a relevant sanction on the person. A “relevant sanction” is a sanction which is— The following are regulatory authorities for the purposes of this paragraph— Only authorities that have functions relating to the regulation of financial institutions may be prescribed under sub-paragraph (3)(c).
A person (“P”) meets this condition if P has been given a stop notice and after the end of the notice period P— “Affected proposal” means a relevant proposal that is in substance the same as the relevant proposal specified in the stop notice in accordance with sub-paragraph (4)(c). An authorised officer may give a person (“P”) a notice (a “stop notice”) if each of these conditions is met— A stop notice must— An authorised officer may determine that a stop notice given to a person is to cease to have effect. If an authorised officer makes a determination under sub-paragraph (5) the officer must give the person written notice of the determination. The notice must specify the date from which it takes effect, which may be earlier than the date on which the notice is given. In this paragraph—
In section 227 (scope of Part 4) in subsection (4)(g) omit “approved”.
In Chapter 5A (transfers of income streams) section 809AZF (partnership shares) is amended as follows. In subsection (1) omit “if condition A or B is met”. Omit subsections (2) and (3). The amendments made by this paragraph have effect for cases where the transfer of a right to relevant receipts occurs on or after 6 April 2014.
In section 417 (scope of Part 7) in subsection (2), in the entry for Chapter 8, omit “approved”.
After Chapter 5A insert— The amendment made by this paragraph has effect for cases where the arrangements mentioned in section 809AAZA(1) of ITA 2007 are made on or after 6 April 2014.
In section 431A (which makes provision relating to restricted securities etc) in subsection (2)(c) for “an approved” substitute “a Schedule 4”.
After Chapter 5C insert— The amendment made by this paragraph has effect for cases where the arrangements mentioned in section 809DZA(2) of ITA 2007 are made on or after 6 April 2014.
In section 473 (introduction to taxation of securities options) in subsection (4)(b) for “approved” substitute “Schedule 4”.
In section 475 (no charge in respect of acquisition of option) in subsection (2) omit “approved”.
In section 476 (charge on occurrence of chargeable event) in subsection (6), in the entry for section 524, omit “approved”.
In section 480 (deductible amounts) in subsection (4) omit “approved”.
In section 539 (CSOP and other options relevant for purposes of section 536) in subsection (4) for “approved under Schedule 4 (CSOP schemes)” substitute “which is a Schedule 4 CSOP scheme (see Schedule 4)”.
In section 549 (application of Chapter 11 of Part 7) in subsection (2)(c) omit “approved”.
Section 554E (exclusions under Part 7A) is amended as follows. In subsection (1)(c) for “an approved” substitute “a Schedule 4”. In subsection (3)(a)(ii) and (b)(ii) for the second “an approved” substitute “a Schedule 4”. In subsection (4)(a) and (b) for the third “approved” substitute “Schedule 4”.
In section 697 (PAYE: enhancing the value of an asset) in subsection (4) before paragraph (b) insert—.
In section 701 (PAYE: meaning of “asset”) in subsection (2)(c)(ia) for “approved under Schedule 4 (approved CSOP schemes)” substitute “which is a Schedule 4 CSOP scheme (see Schedule 4)”.
In paragraph 5 of Schedule 5 (enterprise management incentives: maximum entitlement of employee) in sub-paragraph (5) for “approved under Schedule 4 (CSOP schemes)” substitute “which is a Schedule 4 CSOP scheme (see Schedule 4)”.
“income” means employment income or profits of a trade, profession or vocation (including profits treated as arising as a result of section 13 of ITTOIA 2005).
This section is treated as having come into force on 6 April 2014.
Where a major sporting event is to be held in the United Kingdom, the Treasury may make regulations providing for exemption from income tax and corporation tax in relation to the event.
The regulations may, in particular—
exempt specified classes of person, income or activity from income tax;
exempt specified classes of person, profit, income or activity from corporation tax;
provide for specified classes of activity to be disregarded in determining for fiscal purposes whether a person has a permanent establishment in the United Kingdom;
disapply a duty on a person to deduct a sum representing income tax before making a payment.
The regulations may specify classes of person wholly or partly by reference to—
residence outside the United Kingdom, determined in accordance with the regulations;
documents issued or authority given by persons exercising functions in connection with the sporting event.
Regulations under this section—
may apply (with or without modifications) or disapply any enactment,
may modify, amend, repeal or revoke any enactment,
may make different provision for different purposes, and
may include incidental, consequential, supplementary or transitional provision.
Regulations under this section may not be made unless a draft of the instrument containing them has been laid before, and approved by a resolution of, the House of Commons.
In this section, “enactment” includes an enactment contained in subordinate legislation (within the meaning of the Interpretation Act 1978), and includes an enactment whenever passed or made.
Schedule 2 to ITEPA 2003 (share incentive plans) is amended as follows.
In paragraph 35(1) (free shares: maximum annual award) for “£3,000” substitute “ £3,600 ”.
In paragraph 46(1) (partnership shares: maximum amount of deductions from employee's salary) for “£1,500” substitute “ £1,800 ”.
The amendments made by this section are treated as having come into force on 6 April 2014.
Schedule 2 to ITEPA 2003 (share incentive plans) is amended as follows.
In paragraph 35 (free shares: maximum annual award) after sub-paragraph (2) insert—
In paragraph 46 (partnership shares: maximum amount of deductions from employee's salary) after sub-paragraph (5) insert—
In paragraph 60 (matching shares: maximum ratio of matching shares to partnership shares) after sub-paragraph (3) insert—
Schedule 8 makes provision in relation to employee share schemes.
Schedule 9 contains provision relating to employment-related securities.
Schedule 10 contains provision about venture capital trusts.
Section 257A of ITA 2007 (meaning of “SEIS relief” and commencement) is amended as follows.
For subsection (3) (which limits SEIS relief to shares issued on or after 6 April 2012 but before 6 April 2017) substitute—
Omit subsection (4) (which allows the Treasury to extend SEIS relief by order).
In Schedule 5BB to TCGA 1992 (seed enterprise investment scheme: re-investment), in paragraph 1 (SEIS re-investment relief)—
in sub-paragraph (2)(a), for “or the tax year 2013-14” substitute “ or any subsequent tax year ”, and
in sub-paragraph (5A), in the definition of “the relevant percentage”, in paragraph (b), for “the tax year 2013-14” substitute “ any subsequent tax year ”.
Accordingly, in section 150G of TCGA 1992 (which introduces Schedule 5BB), omit “in the tax years 2012-13 and 2013-14”.
ITA 2007 is amended as follows.
In section 192 (EIS: meaning of “excluded activities”)—
in subsection (1), omit the “and” at the end of paragraph (ka) and after that paragraph insert—, and
in subsection (2), omit the “and” at the end of paragraph (f) and after paragraph (g) insert, and
In section 198A (excluded activities: subsidised generation or export of electricity)—
for subsection (3) substitute—,
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“renewables obligation certificate” means a certificate issued under section 32B of the Electricity Act 1989 or Article 54 of the Energy (Northern Ireland) Order 2003.
After that section insert—
In section 303 (VCTs: meaning of “excluded activities”)—
in subsection (1), omit the “and” at the end of paragraph (ka) and after that paragraph insert—, and
in subsection (2), omit the “and” at the end of paragraph (f) and after paragraph (g) insert, and
In section 309A (excluded activities: subsidised generation or export of electricity)—
for subsection (3) substitute—,
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“renewables obligation certificate” means a certificate issued under section 32B of the Electricity Act 1989 or Article 54 of the Energy (Northern Ireland) Order 2003.
After that section insert—
The amendments made by subsections (2) to (4) have effect in relation to shares issued on or after the day on which this Act is passed.
The amendments made by subsections (5) to (7) have effect in relation to a relevant holding issued on or after the day on which this Act is passed.
Schedule 11 makes provision for and in connection with social investment tax relief.
Schedule 12 makes provision for relief under TCGA 1992 in connection with investments in social enterprises.
TCGA 1992 is amended as follows.
In section 223 (relief on disposal of private residence: amount of relief)—
in subsections (1) and (2)(a), for “36 months” substitute “ 18 months ”;
omit subsections (5) and (6);
in subsection (8), omit the “and” after paragraph (aa) and after that paragraph insert—.
After section 225D insert—
The amendments made by this section have effect in relation to disposals made on or after 6 April 2014.
Section 12 of TCGA 1992 (non-UK domiciled individuals to whom remittance basis applies) is amended as follows.
After subsection (1) insert—
The amendment made by this section has effect in relation to gains accruing on or after 6 April 2013.
TCGA 1992 is amended as follows.
In section 72 (termination of life interest on death of person entitled)—
in subsection (1B)(a)(iii), for “within section 89B(1)(c) or (d)” substitute “ , within the meaning given by section 89B ”, and
at the end insert—
In section 73(3) (death of life tenant: exclusion of chargeable gain), for “to (5)” substitute “ to (6) ”.
The amendments made by this section have effect in relation to deaths occurring on or after 5 December 2013.
Section 155 of TCGA 1992 (relevant classes of assets) is amended as follows.
Assets within heads A and B below. Head A
Head B Payment entitlements under the basic payment scheme (that is, the scheme of income support for farmers in pursuance of Regulation (EU) No 1307/2013 of the European Parliament and of the Council).
The amendments made by this section have effect where the disposal of the old assets (or an interest in them) or the acquisition of the new assets (or an interest in them) is on or after 20 December 2013.
In section 156ZB of TCGA 1992 (intangible fixed assets: interaction with relief under Chapter 7 of Part 8 of CTA 2009), in subsection (1), for “This section” substitute “ Subsection (2) ”.
In Chapter 14 of Part 8 of CTA 2009 (intangible fixed assets: miscellaneous provisions), after section 870 insert—
The amendment made by subsection (1) has effect in relation to claims for relief under section 152 or 153 of TCGA 1992 made on or after 19 March 2014.
The amendment made by subsection (2) has effect in relation to accounting periods beginning on or after 19 March 2014.
For the purposes of subsection (4), an accounting period beginning before, and ending on or after, 19 March 2014 is to be treated as if so much of the period as falls before that date, and so much of the period as falls on or after that date, were separate accounting periods.
In section 184G of TCGA 1992 (avoidance involving losses: schemes converting income to capital)—
for subsections (2) and (3) substitute—, and
in subsection (4), for “the receipt” substitute “ the amount mentioned in subsection (2) ”.
In section 184H of that Act (avoidance involving losses: schemes securing deductions)—
in subsection (2)(b), omit “on any disposal of any asset”,
for subsection (3) substitute—,
in subsection (4), for paragraph (a) substitute—, and
“income deduction” means—
The amendments made by this section have effect—
in relation to arrangements entered into on or after 30 January 2014, and
in relation to arrangements entered into before that date but only to the extent that any chargeable gain accrues on a disposal which occurs on or after that date.
Part 2 of CAA 2001 (plant and machinery allowances) is amended as follows.
In section 45D (expenditure on cars with low carbon dioxide emissions), after subsection (1) insert—
In section 45DA (expenditure on zero-emission goods vehicles), after subsection (1) insert—
In section 45E (expenditure on plant or machinery for gas refuelling station), after subsection (1) insert—
In section 45K (expenditure on plant and machinery for used in designated assisted areas)—
in subsection (1), in paragraph (b) for “5 years” substitute “ 8 years ”, and
after that subsection insert—
Schedule 13 makes provision in relation to Commission Regulation (EU) No 651/2014 (General block exemption Regulation).
Section 360B of CAA 2001 (business premises renovation allowances: meaning of “qualifying expenditure”) is amended in accordance with subsections (2) to (6).
For subsection (1) substitute—
After subsection (2) insert—
In subsection (3)—
for “not qualifying expenditure” substitute “ excluded ”, and
in paragraph (d), for “as defined by section 173(1)” substitute “ (as defined by section 173(1)) and falls within subsection (3A) ”.
After that subsection insert—
In subsection (5), after “regulations” insert—
After that section insert—
For section 360L of that Act (grants affecting entitlement to allowances) substitute—
In section 360M of that Act (when balancing adjustments are made), in subsection (4) for “7” substitute “ 5 ”.
Subject to subsection (11), the amendments made by this section have effect for expenditure incurred on or after the specified day.
Section 360L of CAA 2001 (inserted by subsection (8)) has effect—
in relation to a relevant grant or relevant payment made at any time (whether before or on or after the specified day) towards expenditure incurred on or after that day, and
in relation to a relevant grant or relevant payment made on or after the specified day towards expenditure incurred before that day.
“The specified day” means—
for income tax purposes, 6 April 2014, and
for corporation tax purposes, 1 April 2014.
In the application of section 360L of CAA 2001 in relation to expenditure incurred before the day on which this Act is passed, the definition of “General Block Exemption Regulation” in subsection (6) of that section is to be treated as referring to Commission Regulation (EC) No 800/2008.
CAA 2001 is amended as follows.
In section 394(2) (meaning of mineral extraction trade), after “deposits” insert “ but to the extent only that the profits or gains from that trade are, or (if there were any) would be, chargeable to tax ”.
In section 399 (expenditure excluded from being qualifying expenditure), after subsection (1) insert—
In section 160 (expenditure treated as incurred for purposes of mineral extraction trade)—
the existing text becomes subsection (1), and
after that subsection insert—
For section 161(4)(a) (pre-trading expenditure on plant or machinery for mineral exploration and access), substitute—.
After section 161(4) insert—
After section 431 (discontinuance of trade) insert—
The amendments made by subsections (1) to (6) of this section have effect— and in relation to those claims the amendments are treated as always having had effect.
for the purposes of corporation tax, in relation to claims made on or after 1 April 2014, and
for the purposes of income tax, in relation to claims made on or after 6 April 2014,
The amendment made by subsection (7) has effect in relation to elections under section 18A of CTA 2009 which start to have effect on or after 1 April 2014.
Part 5 of CAA 2001 (mineral extraction allowances) is amended as follows.
In section 396 (meaning of “mineral exploration and access”), in subsection (2) for “if planning permission is not granted” substitute “ and not as expenditure on acquiring a mineral asset ”.
In section 398 (relationship between main types of qualifying expenditure), after “Subject to” insert “ section 396(2) and ”.
The amendments made by this section have effect in relation to expenditure incurred on or after the day on which this Act is passed.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Schedule 15 contains provision about the reduction of adjusted ring fence profits by means of an onshore allowance.
In Chapter 2 of Part 6 of TCGA 1992 (oil and mineral industries), after section 198I insert—
The amendment made by this section has effect in relation to disposals made on or after 1 April 2014.
For the purposes of sub-paragraph (2)(b) and (d), “trade” includes oil and gas exploration and appraisal.
The amendment made by this section has effect in relation to disposals made on or after 1 April 2014.
Schedule 16 contains provision about the corporation tax treatment of oil contractor activities.
Schedule 17 makes provision in relation to partnerships.
Chapter 4 of Part 4 of TIOPA 2010 (transfer pricing: position of disadvantaged person) is amended as follows.
In section 174 (claim by the affected person who is potentially advantaged), in subsection (3), before the entry for section 175 insert— “ section 174A (claim not allowed in some cases where the disadvantaged person is within the charge to income tax), ”.
After that section insert—
After section 187 insert—
The amendments made by this section have effect in relation to any amount arising on or after 25 October 2013, except pre-commencement interest.
“Pre-commencement interest” means an amount of interest to the extent that it is, in accordance with generally accepted accounting practice, referable to a period before 25 October 2013.
ALDA 1979 is amended as follows.
In section 36(1AA) (rates of general beer duty)—
in paragraph (za) (rate of duty on lower strength beer), for “£9.17” substitute “ £8.62 ”, and
in paragraph (a), (standard rate of duty on beer), for “£19.12” substitute “ £18.74 ”.
In section 37(4) (rate of high strength beer duty), for “£5.09” substitute “ £5.29 ”.
In section 62(1A) (rates of duty on cider), in paragraph (a) (rate of duty per hectolitre on sparkling cider of a strength exceeding 5.5%), for “£258.23” substitute “ £264.61 ”.
For Part 1 of the table in Schedule 1 substitute—.
The amendments made by this section are treated as having come into force on 24 March 2014.
1. Cigarettes An amount equal to 16.5% of the retail price plus £184.10 per thousand cigarettes 2. Cigars £229.65 per kilogram 3. Hand-rolling tobacco £180.46 per kilogram 4. Other smoking tobacco and chewing tobacco £100.96 per kilogram
The amendment made by this section is treated as having come into force at 6 pm on 19 March 2014.
Section 30 of FA 1994 (air passenger duty: rates of duty) is amended as follows.
In subsection (3)—
in paragraph (a), for “£67” substitute “ £69 ”, and
in paragraph (b), for “£134” substitute “ £138 ”.
In subsection (4)—
in paragraph (a), for “£83” substitute “ £85 ”, and
in paragraph (b), for “£166” substitute “ £170 ”.
In subsection (4A)—
in paragraph (a), for “£94” substitute “ £97 ”, and
in paragraph (b), for “£188” substitute “ £194 ”.
The amendments made by this section have effect in relation to the carriage of passengers beginning on or after 1 April 2014.
Chapter 4 of Part 1 of FA 1994 (air passenger duty) is amended in accordance with subsections (2) to (10).
Section 30 (rates of duty), as amended by section 78 of this Act, is amended as follows.
Omit subsections (3) and (4).
In subsection (4A)—
in paragraph (a) for “£97” substitute “ £71 ”, and
in paragraph (b) for “£194” substitute “ £142 ”.
In subsection (4E)—
in paragraph (a) for “twice the rate in subsection (2)(b)” substitute “ six times the rate in subsection (2)(a) ”,
after paragraph (a) insert “ and ”,
omit paragraph (b),
omit paragraph (c) and the “and” after it, and
in paragraph (d) for “twice the rate in subsection (4A)(b)” substitute “ six times the rate in subsection (4A)(a) ”.
Section 30A (Northern Ireland long haul rates of duty) is amended as follows.
Omit subsections (2) to (4).
In subsection (5) for “If the passenger's journey ends at any other place” substitute “ Air passenger duty is chargeable on the carriage of the chargeable passenger at the rate determined as follows ”.
In subsection (5A)—
omit paragraph (a),
omit paragraph (b) and the “and” after it, and
in paragraph (c)—
omit the words from the beginning to “(5)(a) or (b),”,
after “instead” insert “ of the rate set for the purposes of subsection (5)(a) or (b) ”, and
in sub-paragraph (ii) for “twice the rate set for the purposes of subsection (5)(b)” substitute “ six times the rate set for the purposes of subsection (5)(a) ”.
In Schedule 5A (territories) omit Parts 2 and 3.
Accordingly, in section 1 of the Air Passenger Duty (Setting of Rate) Act (Northern Ireland) 2012 (setting of rate of air passenger duty)—
in subsection (1)—
omit “(3)(a) and (b), (4)(a) and (b),”, and
for “(5A)(a), (b) and (c)” substitute “ (5A)(c) ”, and
omit subsections (2) to (5), (8) and (9).
The amendments made by this section have effect in relation to the carriage of passengers beginning on or after 1 April 2015.
In Part 3 of Schedule 5A to FA 1994 (air passenger duty: territories)—
omit “Ascension Island”, “Netherlands Antilles” and “Saint Helena”, and
at the appropriate places insert— “ Bonaire ”, “ Curaçao ”, “ Saba ”, “ Saint Helena, Ascension and Tristan da Cunha ”, “ Sint Eustatius ”, and “ Sint Maarten ”.
The amendments made by this section have effect in relation to the carriage of passengers beginning on or after the day on which this Act is passed.
Schedule 1 to VERA 1994 (annual rates of duty) is amended as follows.
In paragraph 1 (general)—
in sub-paragraph (2) (vehicle not covered elsewhere in Schedule otherwise than with engine cylinder capacity not exceeding 1,549cc), for “£225” substitute “ £230 ”, and
in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc), for “£140” substitute “ £145 ”.
In paragraph 1B (graduated rates of duty for light passenger vehicles)—
CO2 emissions figure Rate (1) (2) (3) (4) Exceeding Not exceeding Reduced rate Standard rate g/km g/km £ £ 130 140 120 130 140 150 135 145 150 165 170 180 165 175 280 290 175 185 335 345 185 200 475 485 200 225 625 635 225 255 850 860 255 1080 1090 CO2 emissions figure Rate (1) (2) (3) (4) Exceeding Not exceeding Reduced rate Standard rate g/km g/km £ £ 100 110 10 20 110 120 20 30 120 130 100 110 130 140 120 130 140 150 135 145 150 165 170 180 165 175 195 205 175 185 215 225 185 200 255 265 200 225 275 285 225 255 475 485 255 490 500
in the sentence immediately following the tables, for paragraphs (a) and (b) substitute—
In paragraph 1J (VED rates for light goods vehicles), in paragraph (a), for “£220” substitute “ £225 ”.
In paragraph 2(1) (VED rates for motorcycles)—
in paragraph (b), for “£37” substitute “ £38 ”,
in paragraph (c), for “£57” substitute “ £58 ”, and
in paragraph (d), for “£78” substitute “ £80 ”.
The amendments made by this section have effect in relation to licences taken out on or after 1 April 2014.
For paragraph 10 of Schedule 1 to VERA 1994 (supplement to annual rate of duty for rigid goods vehicle with trailer), substitute—
In paragraph 2(2) of Schedule 1 to the HGV Road User Levy Act 2013, for “within paragraph 10” substitute “ which is a relevant rigid goods vehicle within the meaning of paragraph 10 ”.
The amendment made by subsection (1) has effect in relation to licences taken out on or after 1 April 2014.
The amendment made by subsection (2) is treated as having come into force on 1 April 2014.
Schedule 1 to VERA 1994 (annual rates of duty) is amended as follows.
In paragraph 6(2A)(a) (vehicles used for exceptional loads which do not satisfy reduced pollution requirements), for “£2,585” substitute “ £1,585 ”.
Revenue weight of vehicle Rate (1) (2) (3) (4) (5) Exceeding Not exceeding Two axle vehicle Three axle vehicle Four or more axle vehicle kgs kgs £ £ £ 3,500 7,500 165 165 165 7,500 11,999 200 200 200 11,999 14,000 95 95 95 14,000 15,000 105 95 95 15,000 19,000 300 95 95 19,000 21,000 300 125 95 21,000 23,000 300 210 95 23,000 25,000 300 300 210 25,000 27,000 300 300 300 27,000 44,000 300 300 560
In paragraph 9(3) (rigid goods vehicles over 44,000 kgs which do not satisfy the reduced pollution requirements), for “£2,585” substitute “ £1,585 ”.
For the italic heading immediately before paragraph 9 substitute “ Rigid goods vehicles exceeding 3,500 kgs revenue weight ”.
In paragraph 11(1) (tractive units which do not satisfy reduced pollution requirements)—
for “table” substitute “ tables ”, and
Revenue weight of vehicle Rate (1) (2) (3) (4) (5) Exceeding Not exceeding Any no of semi-trailer axles 2 or more semi-trailer axles 3 or more semi-trailer axles kgs kgs £ £ £ 3,500 11,999 165 165 165 11,999 22,000 80 80 80 22,000 23,000 84 80 80 23,000 25,000 151 80 80 25,000 26,000 265 100 80 26,000 28,000 265 146 80 28,000 31,000 300 300 80 31,000 33,000 560 560 210 33,000 34,000 560 609 210 34,000 38,000 690 690 560 38,000 44,000 850 850 850 Revenue weight of vehicle Rate (1) (2) (3) (4) (5) Exceeding Not exceeding Any no of semi-trailer axles 2 or more semi-trailer axles 3 or more semi-trailer axles kgs kgs £ £ £ 3,500 11,999 165 165 165 11,999 25,000 80 80 80 25,000 26,000 100 80 80 26,000 28,000 146 80 80 28,000 29,000 210 80 80 29,000 31,000 289 80 80 31,000 33,000 560 210 80 33,000 34,000 609 300 80 34,000 36,000 609 300 210 36,000 38,000 690 560 300 38,000 44,000 850 850 560
In paragraph 11(3) (tractive units above 44,000 kgs which do not satisfy reduced pollution requirements), for “£2,585” substitute “ £1,585 ”.
In paragraph 11C(2) (tractive units: special cases)—
omit “Subject to paragraph 11D,”, and
in paragraph (a), for “£650” substitute “ £10 ”.
Omit paragraph 11D (vehicles without road friendly suspension) and the italic heading before it.
The amendments made by this section have effect in relation to licences taken out on or after 1 April 2014.
In Schedule 2 to VERA 1994 (exempt vehicles) in paragraph 1A(1) (exemption for old vehicles) for “1973” substitute “ 1974 ”.
The amendment made by subsection (1) is treated as having come into force on 1 April 2014.
While a vehicle licence is in force in respect of a vehicle which is an exempt vehicle by virtue of subsection (1)—
nothing in that subsection has the effect that a nil licence is required to be in force in respect of the vehicle, but
for the purposes of section 33 of VERA 1994 the vehicle is to be treated as one in respect of which vehicle excise duty is chargeable.
In Schedule 2 to VERA 1994 (exempt vehicles) in paragraph 1A(1) (exemption for old vehicles) for “1974” (as substituted by section 84) substitute “ 1975 ”.
The amendment made by subsection (1) comes into force on 1 April 2015; but nothing in that subsection has the effect that a nil licence is required to be in force in respect of a vehicle while a vehicle licence is in force in respect of it.
Schedule 18 contains provision abolishing the reduced rates of vehicle excise duty for vehicles satisfying reduced pollution requirements.
In section 3 of VERA 1994 (duration of licences), for subsection (2) substitute—
The amendment made by this section has effect in relation to licences taken out on or after 1 April 2014.
Section 4 of VERA 1994 (amount of duty) is amended as follows.
In subsection (2), for “Where” substitute “ Subject to subsection (2A), where ”.
After subsection (2) insert—
The amendments made by this section have effect in relation to licences taken out on or after 1 April 2014.
VERA 1994 is amended as follows.
In section 4 (amount of duty) for subsections (1) to (2A) substitute—
In section 13 (trade licences: duration and amount of duty)—
in subsection (3), after “calendar year” insert “ (“the applicable annual rate”) ”,
after subsection (3) insert—,
for subsection (4) substitute—,
in subsection (5)(a), for “rate applicable to the” substitute “ applicable annual rate for a ”, and
in subsection (6), for “subsection (4)” substitute “ subsection (3A), (4) ”.
In section 13 (trade licences: duration and amount of duty) as set out in paragraph 8(1) of Schedule 4 to VERA 1994 to have effect on and after a day appointed by order—
in subsection (4), after “twelve months” insert “ (“the applicable annual rate”) ”,
after subsection (4) insert—,
for subsection (5) substitute—, and
in subsection (6), for “subsection (5)” substitute “ subsection (4A) or (5) ”.
In section 19A (payment by cheque)—
in subsection (2)(b) omit “by post”, and
in subsection (3)(b) and (d) omit “by post”.
In section 19B (issue of licences before payment of duty)—
after subsection (1) insert—,
in subsection (2)(c) omit “by post”,
in subsection (3)(b) and (d) omit “by post”, and
after subsection (3) insert—
In section 35A (dishonoured cheques)—
in subsection (1)(a), for “or 19B(3)(d)” substitute “ , 19B(3)(d) or 19B(5)(f) ”,
after subsection (7) insert—, and
in the heading, for “Dishonoured cheques” substitute “ Failed payments ”.
In section 36 (dishonoured cheques: additional liability)—
after subsection (6) insert—, and
in the heading, for “Dishonoured cheques” substitute “ Failed payments ”.
In cases in which the provisions set out in sub-paragraph (1) have effect, sections 35A(8) and 36(7) are to be read as referring to section 13(4A) instead of section 13(3A).
The amendments made by this section come into force on 1 October 2014.
VERA 1994 is amended as follows.
In section 60A (revenue weight), in subsection (9)(b)—
for “at which” substitute “ which must not be equalled or exceeded in order for ”, and
for “may lawfully” substitute “ to lawfully ”.
In section 61 (vehicle weights)—
in subsection (1)(b), after “not be” insert “ equalled or ”, and
in subsection (2), after “not be” insert “ equalled or ”.
The amendments made by this section have effect in relation to licences taken out on or after 1 April 2014.
Schedule 19 contains other provisions relating to vehicle excise and registration.
Schedule 1 to the HGV Road User Levy Act 2013 (rates of HGV road user levy) is amended as follows.
In paragraph 4, for “is Band G” substituteis—
Revenue weight of vehicle 2 axle vehicle 3 axle vehicle 4 or more axle vehicle More than Not more than kgs kgs Band Band Band 11,999 15,000 B B B 15,000 21,000 D B B 21,000 23,000 D C B 23,000 25,000 D D C 25,000 27,000 D D D 27,000 44,000 D D E Revenue weight of vehicle 2 axle vehicle 3 axle vehicle 4 or more axle vehicle More than Not more than kgs kgs Band Band Band 11,999 15,000 B(T) B(T) B(T) 15,000 21,000 D(T) B(T) B(T) 21,000 23,000 E(T) C(T) B(T) 23,000 25,000 E(T) D(T) C(T) 25,000 27,000 E(T) D(T) D(T) 27,000 44,000 E(T) E(T) E(T) Revenue weight of tractive vehicle Any no of semi-trailer axles 2 or more semi-trailer axles 3 or more semi-trailer axles More than Not more than kgs kgs Band Band Band 11,999 25,000 A A A 25,000 28,000 C A A 28,000 31,000 D D A 31,000 34,000 E E C 34,000 38,000 F F E 38,000 44,000 G G G Revenue weight of tractive vehicle Any no of semi-trailer axles 2 or more semi-trailer axles 3 or more semi-trailer axles More than Not more than kgs kgs Band Band Band 11,999 28,000 A A A 28,000 31,000 C A A 31,000 33,000 E C A 33,000 34,000 E D A 34,000 36,000 E D C 36,000 38,000 F E D 38,000 44,000 G G E
The amendments made by this section are treated as having come into force on 1 April 2014.
After section 14 of the HGV Road User Levy Act 2013 insert—
In regulation 2 of the HGV Road User Levy (HMRC Information Gateway) Regulations 2013 (S.I. 2013/3186), omit paragraphs (1) and (2).
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FA 2001 is amended as follows.
Section 17 (meaning of “aggregate” and “taxable aggregate”) is amended as follows.
In subsection (3)—
after paragraph (da) insert—, and
omit paragraphs (e) and (f).
In subsection (4), omit—
paragraphs (a) and (c), and
in paragraph (f), “clay”.
Section 18 (exempt processes) is amended as follows.
In subsection (1)—
in paragraph (a), for the words from “references” to “but” substitute “references to—
the spoil, waste, off-cuts and other by-products resulting from the application of any exempt process to any aggregate, and
any relevant substance extracted or otherwise separated as a result of the application of any exempt process within subsection (2)(b) to any aggregate; but”, and
in paragraph (b), for “such” substitute “exempt”.
In subsection (2), after paragraph (c) insert—
Section 19 (commercial exploitation) is amended as follows.
In subsection (1), after “aggregate” insert “not falling within subsection (1B)”.
After that subsection insert—
In section 22 (responsibility for exploitation of aggregate), in subsection (1) for paragraphs (c) and (d) substitute—.
The amendments made by subsections (1) to (11) are treated as having come into force on 1 April 2014.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Treasury may by order provide that Part 2 of FA 2001 (the aggregates levy) is to have effect subject to such amendments as the Treasury consider necessary to secure that any of the exemptions that are removed as a result of the amendments made by section 94 is to any extent restored.
An order under this section—
may provide for the restoration of an exemption to have effect in relation to commercial exploitation to which a quantity of aggregate is subjected on or after a day which is earlier than the day on which the order is made;
may make such supplementary, incidental, consequential or transitional provision as the Treasury think fit.
An order under this section is to be made by statutory instrument.
A statutory instrument containing an order under this section is subject to annulment in pursuance of a resolution of the House of Commons.
Taxable commodity supplied Rate at which levy payable if supply is not a reduced-rate supply Electricity £0.00554 per kilowatt hour Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility £0.00193 per kilowatt hour Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state £0.01240 per kilogram Any other taxable commodity £0.01512 per kilogram
The amendment made by this section has effect in relation to supplies treated as taking place on or after 1 April 2015.
Paragraph 42A of Schedule 6 to FA 2000 (climate change levy: carbon price support rates) is amended as follows.
In the table in sub-paragraph (3), as substituted by paragraph 23 of Schedule 42 to FA 2013, for “ £0.85489 per gigajoule ” substitute “£0.81906 per gigajoule”.
The amendment made by subsection (2) has effect in relation to supplies treated as taking place on or after 1 April 2014.
In the table in sub-paragraph (3), as substituted by paragraph 24 of Schedule 42 to FA 2013, for “ £1.62534 per gigajoule ” substitute “£1.56860 per gigajoule”.
The amendment made by subsection (4) has effect in relation to supplies treated as taking place on or after 1 April 2015.
The carbon price support rates are as follows. Carbon price support rate commodity Carbon price support rate Any gas in a gaseous state that is of a kind supplied by a gas utility £0.00331 per kilowatt hour Any petroleum gas, or other gaseous hydrocarbon, in a liquid state £0.05280 per kilogram Any commodity falling within paragraph 3(1)(d) to (f) £1.54790 per gigajoule
The amendment made by this section has effect in relation to supplies treated as taking place on or after 1 April 2016.
Schedule 20 makes provision in relation to climate change levy.
Section 42 of FA 1996 (amount of landfill tax) is amended as follows.
In subsection (1)(a) (standard rate), for “£80” substitute “ £82.60 ”.
In subsection (2) (reduced rate for disposal of qualifying material)—
for “£80” substitute “ £82.60 ”, and
for “£2.50” substitute “ £2.60 ”.
The amendments made by this section have effect in relation to disposals made (or treated as made) on or after 1 April 2015.
Schedule 21 contains provision about goods shipped or carried as stores on ships or aircraft.
In this section—
In Schedule 29 to FA 2004 after paragraph 1A insert— In section 166(2) of FA 2004 (time at which a person becomes entitled to a lump sum)—
In section 166(1) of FA 2004, in the lump sum rule, omit the “or” after paragraph (f), and after paragraph (g) insert , or In Schedule 29 to FA 2004, after paragraph 11 insert— In section 636A of ITEPA 2003 (income tax exemption for certain lump sums)— transitional 2013/14 lump sum paragraph 11A of Schedule 29
Paragraph 3 applies as if in sub-paragraph (8A)(a) for “is one third of” there were substituted “is— where VULSR, VUR and LS have the same meaning as in sub-paragraph (1), and CAPP is”. Paragraph 3 applies as if in sub-paragraph (8A)(b) for “is one third of the sums, plus one third of” there were substituted “is— where VULSR, VUR and LS have the same meaning as in sub-paragraph (1), and EP is the total of the sums, and”.
In section 239(3) of FA 2004 (cases where person other than scheme administrator is liable for a scheme sanction charge)— In section 239 of FA 2004 (scheme sanction charges) after subsection (3) insert— In section 268 of FA 2004 (discharge of liability to scheme sanction charges etc) after subsection (7) insert— In the Taxation of Pension Schemes (Transitional Provisions) Order 2006 (S.I. 2006/572) in article 18 (which provides for paragraph 1(1)(b) of Schedule 29 to FA 2004 to be omitted in certain cases) at the end insert “, and section 239 has effect in the case of a lump sum paid to that individual as if its subsection (3)(b) did not include a reference to paragraph 1(1)(b) of Schedule 29”. The amendment made by sub-paragraph (4) is to be treated as made by the Treasury under the powers to make orders conferred by section 283(2) of FA 2004.
In section 219 of FA 2004 (availability of individual’s lifetime allowance) in subsection (5A) after “effect” insert “where the previous benefit crystallisation event occurred before 6 April 2014”. The amendment made by this paragraph is treated as having come into force on 6 April 2014.
Section 158 (grounds for de-registration) is amended as follows. In subsection (1)— In subsection (1) (as amended by sub-paragraph (2) above)— After subsection (5) insert—
In the following provisions (which relate to the giving of information etc) for “incorrect” (in all places) substitute “inaccurate”—
section 169(5)(a)(ii);
section 257(4)(a) and (b);
section 261(1)(a);
section 264(2)(a).
In Chapter 8 of Part 2 of ITEPA 2003 (application of provisions to workers under arrangements made by intermediaries) in section 54 (deemed employment payment) after subsection (1) insert—
This Schedule applies for the purposes of calculating penalties under section 209.
To the extent that the denied advantage is a deferral of tax, the value of that advantage is— or, if less, 100% of the amount of the deferred tax. This paragraph does not apply to a case to the extent that paragraph 3 applies.
If the failure to comply with an information duty continues after a penalty is imposed under paragraph 2(1), the person is liable to a further penalty or penalties not exceeding the relevant sum for each day on which the failure continues after the day on which the penalty under paragraph 2(1) was imposed. In sub-paragraph (1) “the relevant sum” means—
A person must not conceal, destroy or otherwise dispose of, or arrange for the concealment, destruction or disposal of, a document which is subject to a duty under section 255, 257 or 262. Sub-paragraph (1) does not apply if the person acts after the document has been produced to an officer of Revenue and Customs in accordance with the duty, unless the officer has notified the person in writing that the document must continue to be available for inspection (and has not withdrawn the notification). Sub-paragraph (1) does not apply, in a case to which section 268(1) applies, if the person acts after the expiry of the period of 6 months beginning with the day on which a copy of the document was produced in accordance with that section unless, before the expiry of that period, an officer of Revenue and Customs makes a request for the original document under section 268(2)(b). A person who conceals, destroys or otherwise disposes of, or arranges for the concealment, destruction or disposal of, a document in breach of sub-paragraph (1), is taken to have failed to comply with the duty to produce the document under the provision concerned (but see sub-paragraph (5)). If a person conceals, destroys or otherwise disposes of, or arranges for the concealment, destruction or disposal of, a document which is subject to a duty under more than one of the provisions mentioned in sub-paragraph (1) then—
Liability to a penalty under this Schedule does not arise if there is a reasonable excuse for the failure. For the purposes of this paragraph—
A person is not liable to a penalty under this Schedule in respect of anything in respect of which the person has been convicted of an offence.
A conduct notice that is given to a partnership must state that it is a partnership conduct notice. In accordance with paragraphs 1 and 2, where the person to whom a conduct notice is given is a partnership, section 238 authorises the imposition of conditions relating to—
Sub-paragraphs (2) and (3) apply where— An authorised officer may give P a conduct notice. If P is carrying on a business as a promoter in partnership with one or more other persons and is a controlling member of that partnership (“the new partnership”), an authorised officer may give a conduct notice to the new partnership. A conduct notice given under sub-paragraph (3) ceases to have effect if P ceases to be a member of the new partnership. A notice under sub-paragraph (2) or (3) may not be given after the termination date of the original notice (under section 241(2)(a) or (b)).
In this Part of this Act— In this Part of this Act, “the original monitoring notice” means— and that original monitoring notice is also the “original monitoring notice” in relation to any monitoring notice that (under paragraph 9(2) or (3) or 10(3)(b) or (4)(b)) replaces a replacement monitoring notice.
Where the responsible partners are liable to a penalty under this Part of this Act, or to interest on such a penalty, their liability is joint and several. No amount may be recovered under sub-paragraph (1) from a person who did not become a responsible partner until after the relevant time. “The relevant time” means—
The Treasury may by regulations amend paragraph 19 or 20. Regulations under sub-paragraph (1) may include any amendment of this Schedule that is necessary in consequence of any amendment made by virtue of sub-paragraph (1).
A notice under paragraph 8(2) or (3) or 10(3)(a) or (4)(a)—
has no effect after the termination date of the original notice;
must state that that date is its termination date.
In Chapter 2, after section 159 insert—
The amendments made by paragraphs 6 and 7 have effect in relation to pension schemes whenever registered (including schemes registered by virtue of paragraph 1 of Schedule 36 to FA 2004 (deemed registration of existing schemes)). The amendments made by paragraph 6(2) and (4) are treated as having come into force on 20 March 2014. The amendments made by paragraphs 6(3) and 7 come into force on 1 September 2014 or, if later, the day after the day on which this Act is passed.
An authorised officer may not give a replacement conduct notice or replacement monitoring notice to a person if a conduct notice or monitoring notice previously given to the person still has effect in relation to the person.
“tax advantage” has the meaning given by section 201(2);
“the responsible trustees” has the meaning given by paragraph 5(3) of Schedule 16 to that Act;
Section 7
CTA 2010 is amended as follows.
In section 1 (overview of Act), in subsection (2)—
for “Parts 3” substitute “ Parts 4 ”, and
omit paragraph (a).
For section 3 (corporation tax rates) substitute—
Omit Part 3 (companies with small profits).
Part 8 (oil activities) is amended as follows. In section 270 (overview of Part 8), after subsection (3) insert— After Chapter 3 insert—
In section 99 of CAA 2001 (long-life assets: the monetary limit)—
in subsection (4)—
for “If, in a chargeable period, a company has one or more associated companies” substitute “ In the case of a company (“C”), if, in a chargeable period, one or more companies are related 51% group companies of C ”, and
for “number of associated” substitute “ number of related 51% group ”, and
omit subsection (5).
Chapter 3 of Part 4 of ITTOIA 2005 (savings and investment income: dividends etc from UK resident companies) is amended as follows.
related 51% group company section 279F of CTA 2010 (as applied by 1119 of that Act).
In section 382 (contents of Chapter 3) in subsection (1)(c) for “an approved” substitute “a Schedule 2”.
In the cross-heading before section 392 for “approved” substitute “Schedule 2”.
In section 392 (SIP shares: introduction) in subsection (1) for “an approved” substitute “a Schedule 2”.
Section 394 (distribution when dividend shares cease to be subject to SIP) is amended as follows. In subsection (1) for “an approved” substitute “a Schedule 2”. After subsection (3) insert— In subsection (7) for “approved” substitute “Schedule 2”.
In section 395 (reduction in tax due in cases within section 394) in subsections (1)(b) and (4) for “approved” substitute “Schedule 2”.
In section 396 (interpretation) in subsections (1) and (2) omit “approved”.
Chapter 4 of Part 4 of ITTOIA 2005 (savings and investment income: dividends etc from non-UK resident companies) is amended as follows.
In the cross-heading before section 405 for “approved” substitute “Schedule 2”.
Section 405 (SIP shares: introduction) is amended as follows. In subsection (1) for “an approved” substitute “a Schedule 2”. In subsections (3) and (4) omit “approved”.
Section 407 (dividend payment when dividend shares cease to be subject to SIP) is amended as follows. In subsection (1) for “an approved” substitute “a Schedule 2”. After subsection (3) insert— In subsection (5) for “approved” substitute “Schedule 2”.
In section 408 (reduction in tax due in cases within section 407) in subsections (1)(b) and (3) for “approved” substitute “Schedule 2”.
Chapter 9 of Part 6 of ITTOIA 2005 (exempt income) is amended as follows.
In the cross-heading before section 770 for “Approved” substitute “Schedule 2”.
Section 770 (amounts applied by SIP trustees) is amended as follows. In subsection (1)(a) for “an approved” substitute “a Schedule 2”. In subsections (5) and (6) omit “approved”.
The amendments made by paragraphs 8, 9 and 13 have effect in relation to accounting periods beginning on or after 1 April 2015. Accordingly—
The other amendments made by this Schedule have effect for the financial year 2015 and subsequent financial years. In the case of an accounting period (a “straddling period”)— the repealed small profit provisions and the new ring fence small profit provisions apply as if the different parts of the straddling period falling in the different financial years were separate accounting periods. For this purpose— For the purposes of sub-paragraph (2) all necessary apportionments are to be made between the two separate accounting periods.
Section 10
Section 7 of FA 2013 (temporary increase in annual investment allowance) is amended as follows. In subsection (1), for “of two years beginning with 1 January 2013” substitute “ beginning with 1 January 2013 and ending with the specified date ”. After subsection (1) insert— In subsection (2), omit “or 1 January 2015”.
Schedule 1 to FA 2013 (annual investment allowance) is amended as follows. In paragraph 1 (chargeable periods which straddle 1 January 2013)— Omit paragraph 4 (chargeable periods which straddle 1 January 2015). In paragraph 5 (operation of annual investment allowance where restrictions apply)—
Section 15
ITEPA 2003 is amended as follows.
In section 23 (taxable earnings: calculation of “chargeable overseas earnings”) after subsection (1) insert—
After section 24 insert—
Section 41C (taxable specific income from employment-related securities etc: foreign securities income) is amended as follows. After subsection (4) insert— After subsection (8) insert—
In section 554Z9 (employment income provided through third parties: remittance basis) after subsection (1) insert—
In section 717 (orders and regulations) in subsection (4) after “under” insert “ section 24A(11) (assumptions about related employments), ”.
Section 23(1A) of ITEPA 2003 (as inserted by paragraph 2) has effect in relation to general earnings which are general earnings from an employment for the tax year 2014-15 or any subsequent tax year. Section 41C(4A) of ITEPA 2003 (as inserted by paragraph 4(2)) has effect for cases where the tax year in question is the tax year 2014-15 or any subsequent tax year. Section 41H(5) of ITEPA 2003 (as inserted by Part 1 of Schedule 9 to this Act) has effect for cases where the tax year in question is the tax year 2014-15 or any subsequent tax year. Section 554Z9(1A) of ITEPA 2003 (as inserted by paragraph 5) has effect for cases where the relevant tax year (see section 554Z9(1)(a) of that Act) is the tax year 2014-15 or any subsequent tax year.
Section 36
Before Part 16 of CTA 2009 insert—
“applicable proposal” means—
The amendment made by paragraph 2 has effect in relation to any agreement to transfer securities— Subject to sub-paragraph (3), the amendment made by paragraph 3 is treated as having come into force on 28 April 2014. The following provisions of section 99A of FA 1986 (inserted by paragraph 3) come into force on the day on which this Act is passed— Where, having been satisfied as mentioned in subsection (4) of section 99A of FA 1986, the Commissioners for Her Majesty’s Revenue and Customs have recognised a market as a growth market in anticipation of the coming into force of that section, that recognition has effect on and after 28 April 2014 as if it were a recognition under that section.
Schedule 19 to FA 2011 (the bank levy) is amended in accordance with this Schedule.
Paragraph 30 (“excluded” equity and liabilities: tier one capital equity and liabilities) is amended as follows. Tier one capital equity and liabilities” means, in relation to an entity or group of entities, so much of the entity or group’s equity and liabilities as is tier one capital within the meaning of Article 25 of the Capital Requirements Regulation (taking account of the transitional provisions in Part Ten of that Regulation). For the purposes of sub-paragraph (2), the Capital Requirements Regulation is to be treated as applying, in relation to all entities and groups of entities, as if— “The Capital Requirements Regulation” means Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms. The amendment made by this paragraph has effect in relation to chargeable periods ending on or after 1 January 2014.
In paragraph 81 (power to make consequential amendments), in sub-paragraph (1), omit the “or” at the end of paragraph (b), and after paragraph (c) insert , or
If it appears to the Commissioners that the breach has not been remedied in full within the period specified in the breach notice, they may give the holder of the remote operating licence a final notice. The final notice must— The decision to give the final notice is to be treated as a relevant decision for the purposes of sections 15A and 15C to 16 of FA 1994 (customs and excise reviews and appeals) and, accordingly, the final notice must include an offer of a review of the decision under section 15A of that Act. Only the holder of the remote operating licence may bring an appeal under section 16 of FA 1994 as applied by sub-paragraph (3).
The Table in paragraph 1 of Schedule 41 to FA 2008 (penalties: failure to notify and certain VAT and excise wrongdoing) is amended as follows. General betting duty Obligation to register under section 164(2) of FA 2014 (registration of persons liable etc for general betting duty). Pool betting duty Obligation to register under section 164(2) of FA 2014 (registration of persons liable etc for pool betting duty). Remote gaming duty Obligation to register under section 164(2) of FA 2014 (registration of persons liable etc for remote gaming duty).
Section 826 of the Income and Corporation Taxes Act 1988 (interest on tax overpaid) is amended as follows. In subsection (1), after paragraph (fb) insert—. In subsection (3C), for “or video game tax credit” substitute “ , video game tax credit or theatre tax credit ”. In subsection (8A)— In subsection (8BA), after “video game tax credit” (in both places) insert “ or theatre 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 sub-paragraph (ivb) and after that sub-paragraph insert—.
Section 357CG of CTA 2010 (profits arising from the exploitation of patents etc: adjustments in calculating profits of trade) is amended as follows. In subsection (3), omit the “and” at the end of paragraph (c) and after paragraph (d) insert, and In subsection (6)—
To determine amount D— Amount D is the sum of the untested portions determined under sub-paragraph (1)(b)(ii).
Chapter 1 of Part 7 of ITEPA 2003 (employment income: income and exemptions relating to securities: general) is amended as follows.
CTA 2010 is amended as follows.
Part 9 of ITTOIA 2005 (partnerships) is amended as follows. In section 850 (allocation of firm’s profits and losses between partners) in subsection (1) for “and 850B” substitute “to 850D”. After section 850B insert—
TMA 1970 is amended as follows. In Part 2 (returns of income and gains) after section 12AD insert— In column 2 of the Table in section 98 (special returns etc), at the appropriate place, insert “section 12ADA of this Act”.
Section 421J (duty to provide information) is amended as follows. Omit subsections (3), (7), (8), (11) and (12). In subsection (10) for “by, or by a notice under,” substitute “by a notice under”.
In section 1 (overview of Act), in subsection (3), after paragraph (a) insert—.
Chapter 3 of Part 4 of ITA 2007 (trade loss relief: restrictions for certain partners) is amended as follows. In section 102 (overview of Chapter) after subsection (2) insert— At the end insert—
In Part 3 of TCGA 1992 (which makes special provision about partnerships etc) after section 59A insert—
After section 421J insert—
In Chapter 4 of Part 8 (oil activities: calculation of profits), after section 285 insert—
Chapter 4 of Part 4 of ITA 2007 (losses from property businesses) is amended as follows. In section 117 (overview of Chapter) in subsection (3) for “and 127B” substitute “to 127C”. After section 127B insert—
In Part 4 of FA 2004 (pensions) in section 189 (relevant UK individual) after subsection (2A) insert—
In section 421K (reportable events) in subsection (1) for “section 421J (duty to provide information)” substitute “sections 421J and 421JA (duties to provide information and annual returns)”.
After Part 8 (oil activities) insert—
Part 17 of CTA 2009 (partnerships) is amended as follows. In section 1262 (allocation of firm’s profits and losses between partners) in subsection (1) for “and 1264” substitute “to 1264A”. After section 1264 insert—
See also section 863I of ITTOIA 2005 which provides for certain partnership profits to be charged at the additional rate.
In section 421L (responsible persons) in subsection (1) for “section 421J (duty to provide information)” substitute “sections 421J and 421JA (duties to provide information and annual returns)”.
associated person (in Part 8ZA) section 356LB contractor (in Part 8ZA) section 356L(2) contractor’s ring fence profits (in Part 8ZA) section 356LD exploration or exploitation activities (in Part 8ZA) section 356L(4) lease (in Part 8ZA) section 356LC oil contractor activities (in Part 8ZA) section 356L(2) relevant asset (in Part 8ZA) section 356LA relevant offshore area (in Part 8ZA) section 356L(5) relevant offshore service (in Part 8ZA) section 356L(3)
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. So far as not already brought into force by sub-paragraph (1), the amendments made by this Schedule come into force in accordance with provision contained in an order made by the Treasury. An order under sub-paragraph (2) may make different provision for different purposes.
The amendments made by this Schedule have effect in relation to accounting periods beginning on or after 1 September 2014. Sub-paragraph (3) applies where a company has an accounting period beginning before 1 September 2014 and ending on or after that date (“the straddling period”). For the purposes of Part 15C of CTA 2009—
Section 43
Section 44
“VERA 1994” means the Vehicle Excise and Registration Act 1994.
To determine amount B— Amount B is the sum of the crystallised amounts determined under sub-paragraph (1)(b) as adjusted under sub-paragraph (1)(c).
Expressions used in this Part of this Schedule and Part 4 of FA 2004 have the same meaning in this Part as in that Part. In particular, references to a relieved non-UK pension scheme or a relieved member of such a scheme are to be read in accordance with paragraphs 13(3) and (4) and 18 of Schedule 34 to FA 2004.
ITEPA 2003 is amended as follows.
ITTOIA 2005 is amended as follows. At the end of Chapter 5 of Part 2 (trade profits: rules allowing deductions) insert— section 94AA deductions in relation to salaried members of limited liability partnerships
In the case of an exceptional load vehicle— the amendments made by paragraphs 5 and 10 have effect in relation to licences taken out on or after 1 April 2014.
which is charged to HGV road user levy, and
which satisfies the reduced pollution requirements for the purposes of VERA 1994,
In section 3A of VATA 1994 (supply of electronic services in member States: special accounting scheme)—
in subsection (2), after “3B” insert “or 3BA”;
in subsection (3), for “Schedule 3B” substitute “Schedules 3B and 3BA”.
Part 4 of FA 1986 (stamp duty reserve tax) is amended as follows.
Stamp duty is not chargeable by virtue of section 66(2) of FA 1986 (return relating to company’s purchase of own shares treated as instrument of transfer on sale) on returns relating to shares admitted to trading on a recognised growth market but not listed on any market.
In section 67 of FA 1986 (depositary receipts), after subsection (8) insert—
Paragraph 6 has effect in relation to any purchase of shares by a company on or after 28 April 2014. Paragraph 7 has effect in relation to— Paragraph 8 is treated as having come into force on 28 April 2014. Subject to that, this Part of this Schedule has effect in relation to—
The final reconciliation period for the purposes of a person’s entitlement to a credit under section 5E, 8ZA or 26IA of BGDA 1981 (double taxation relief) ends with 30 November 2014 (whether or not it would otherwise have ended with that day). The Commissioners are not required to entertain a claim for a repayment made under section 5E, 8ZA or 26IA of BGDA 1981 after 30 November 2015.
This paragraph applies where— In this paragraph— Amounts due to the provider in a new accounting period in respect of entitlement to use the facilities to play the game are to be included among the amounts aggregated under section 157(1)(a) of this Act in calculating the provider’s profits in respect of ordinary gaming. Amounts in respect of the game that— are also to be included among the amounts aggregated under section 157(1)(a) of this Act in calculating the provider’s profits in respect of ordinary gaming. In the case of each prize in the game that is a prize— the value of the prize is to be included among the amounts aggregated under section 157(2) of this Act in calculating the provider’s profits for the period in respect of ordinary gaming. Section 26F(2) to (7) of BGDA 1981 (provision and value of prizes) apply for the purposes of sub-paragraph (5).
In this paragraph “transitional accounting period” means an accounting period— Sub-paragraph (3) applies where— The value of any prize— may be included among the values aggregated under section 157(2) in calculating the provider’s expenditure for the period on prizes in respect of ordinary gaming. Section 160 (provision and value of prizes) applies for the purposes of sub-paragraph (3).
The value of the denied advantage is the additional amount due or payable in respect of tax as a result of counteracting the denied advantage. The reference in sub-paragraph (1) to the additional amount due or payable includes a reference to— The following are ignored in calculating the value of the denied advantage— This paragraph is subject to paragraphs 3 and 4.
If the representative partner in relation to a partnership return is no longer available, then, for the purposes of section 204 the return, or an appeal in respect of the return, is to be regarded as made by the person who is for the time being the successor of that partner (if that would not otherwise be the case). Where, at any time after a partnership follower notice is given to P, P is no longer available, any reference in this Chapter (other than section 204 and this sub-paragraph) to P is to be read as a reference to the person who is, for the time being, the successor of the representative partner. For the purposes of Condition B in section 204 a partnership return, or appeal in respect of a partnership return, is made on the basis that a particular tax advantage results from particular tax arrangements if— For the purposes of Condition D in section 204— In this paragraph references to a person being “no longer available” have the same meaning as in section 12AA(11) of TMA 1970.
Where a partnership return has been made in respect of a partnership, HMRC may give a notice (a “partner payment notice”) to each relevant partner of the partnership if Conditions A to C are met. Condition A is that— Condition B is that the return or, as the case may be, appeal is made on the basis that a particular tax advantage (“the asserted advantage”) results from particular arrangements (“the chosen arrangements”). Paragraph 3(3) of Schedule 31 applies for the purposes of sub-paragraph (3) as it applies for the purposes of Condition B in section 204(3). Condition C is that one or more of the following requirements are met— “GAAR counteraction notice” has the meaning given by section 219(7).
This paragraph applies where a partner payment notice has been given to a relevant partner (and not withdrawn). The relevant partner must make a payment (“the accelerated partner payment”) to HMRC of the amount specified in the notice in accordance with paragraph 4(1)(b). The accelerated partner payment is to be treated as a payment on account of the understated partner tax (see paragraph 4). The accelerated partner payment must be made before the end of the payment period. “The payment period” means— If the relevant partner pays any part of the understated partner tax before the accelerated partner payment in respect of it, the accelerated partner payment is treated to that extent as having been paid at the same time. Subsections (8) and (9) of section 223 apply in relation to a payment under this paragraph as they apply to a payment under that section.
In sub-paragraph (1) “any other penalty” does not include a penalty under Part 4 of FA 2014 (penalty where corrective action not taken after follower notice etc).
In section 99 (interpretation), after subsection (4A) insert—
In section 227 (scope of Part 4) in subsection (4)(c) omit “approved”.
CTA 2009 is amended as follows. At the end of Chapter 5 of Part 3 (trade profits: rules allowing deductions) insert— section 92A deductions in relation to salaried members of limited liability partnerships In Chapter 2 of Part 16 (companies with investment business: management expenses)—
In the case of a rigid goods vehicle or tractive unit— the amendments made by paragraphs 7 to 10 have effect in relation to licences taken out on or after 1 April 2014.
which has a revenue weight of not less than 12,000 kgs, and
which satisfies the reduced pollution requirements for the purposes of VERA 1994,
In section 417 (scope of Part 7) in subsection (2), in the entry for Chapter 6, omit “approved”.
After that section insert—
Section 431A (provision relating to restricted securities) is amended as follows. In the heading for “approved” substitute “tax advantaged”. In subsection (2)(a) for “an approved” substitute “a Schedule 2”.
In section 549 (application of Chapter 11 of Part 7) in subsection (2)(a) omit “approved”.
Section 554E (exclusions under Part 7A) is amended as follows. In subsections (1)(a) and (3)(a)(i) and (b)(i) for “an approved” substitute “a Schedule 2”. In subsection (4)(a) and (b) for the first “approved” substitute “Schedule 2”.
In paragraph 11 of Schedule 4 (CSOP schemes: material interest) in sub-paragraph (5)(a) for “approved” substitute “Schedule 2”.
In paragraph 30 of Schedule 5 (enterprise management incentives: material interest) in sub-paragraph (7)(a) for “share incentive plan approved under Schedule 2 (SIPs)” substitute “Schedule 2 SIP (see Schedule 2)”.
In section 195 of FA 2004 (pensions: transfer of certain shares to be treated as payment of contribution) in subsection (5), in the definition of “share incentive plan”, omit “approved”.
The Commissioners for Her Majesty’s Revenue and Customs may by regulations amend Part 1 of this Schedule. Regulations under this paragraph may (for example) add to the cases in which paragraph 1(2) is to apply. Regulations under this paragraph must not increase any person’s liability to tax. Regulations under this paragraph may include provision having effect in relation to a time before the regulations are made; but the time must be no earlier than 6 April 2014.
The Commissioners for Her Majesty’s Revenue and Customs may by regulations make provision specifying how any notice required to be given to an officer of Revenue and Customs under Part 1 of this Schedule is to be given. In sub-paragraph (1) the reference to Part 1 of this Schedule is to that Part as amended from time to time by regulations under paragraph 7.
Regulations under paragraph 7 or 8 may include supplementary or incidental provision. The powers to make regulations under paragraphs 7 and 8 are exercisable by statutory instrument. A statutory instrument containing regulations under paragraph 7 or 8 is subject to annulment in pursuance of a resolution of the House of Commons.
Section 46
Section 51
Section 52
ITEPA 2003 is amended as follows.
In Chapter 1 of Part 7 (income and exemptions relating to securities: general), section 421D (replacement and additional securities and changes in interests) is amended as follows. In subsection (3), insert at the end “and for the purposes of Chapter 3C as a payment made for their acquisition at or before the time of the acquisition”. In subsection (4), insert at the end “or a payment was made for their acquisition at or before the time of the acquisition”.
In Chapter 2 of Part 7 (restricted securities), before section 431 (election for full or partial disapplication of Chapter 2) but after the heading before that section (supplementary) insert—
In Chapter 3C of Part 7 (securities acquired for less than market value), section 446U (discharge of notional loan) is amended as follows. In subsection (1), omit the “or” at the end of paragraph (a) and for paragraph (b) substitute—. After that subsection insert— In subsection (4), omit the “or” at the end of paragraph (a) and after that paragraph insert—.
In section 554N (exclusions from Chapter 2 of Part 7A: other cases involving employment related securities etc), in subsection (6), after “429,” insert “430A(5)(b),”.
Part 12 of CTA 2009 (other relief for employee share acquisitions) is amended as follows.
In Chapter 1 (introduction), in section 1002 (“employment”), after subsection (4) insert—
In section 1005 (other definitions)—
at the end of the definition of “the employee” insert “(see also sections 1025A(7) and 1030A(8))”, and
in the definition of “the qualifying business”, for “or 1015(1)(b)” substitute “, 1015(1)(b), 1025A(1)(d)(i) or 1030A(1)(d)(ii)”.
In Chapter 2 (corporation tax relief if shares are acquired by employee or other person), after section 1007 insert—
In Chapter 3 (corporation tax relief if employee or other person obtains option to acquire shares), after section 1015 insert—
Section 1016 (conditions relating to shares acquired) is amended as follows. In subsection (1), omit the “or” at the end of paragraph (b) of Condition 2 and after paragraph (c) of that Condition insert , or . After subsection (1) insert—
In Chapter 4 (additional corporation tax relief in cases involving restricted shares), after section 1025 insert—
In Chapter 5 (additional corporation tax relief in cases involving convertible securities), after section 1030 insert—
Part 1 and paragraphs 40 to 43, 45 and 46 of Part 3 of this Schedule come into force on 6 April 2015.
The amendments made by Part 1 have effect on and after that date in relation to employment-related securities and employment-related securities options irrespective of the date of the acquisition.
The Treasury may by regulations—
make transitional provision or savings in connection with the coming into force of any of the provisions mentioned in paragraph 47;
make consequential, incidental or supplementary provision in connection with any of those provisions.
Regulations made under paragraph 49 may— In sub-paragraph (1)(a) “modify” includes amend, repeal or revoke.
Section 53
Section 57
In ITA 2007, after Part 5A (seed enterprise investment scheme) insert—
Section 98 of TMA 1970 (penalties) is amended as follows. sections 257SG and 257SH(1) and (2) of ITA 2007; sections 257SE and 257SF of ITA 2007;
ITA 2007 is amended as follows.
In section 2 (overview of Act) after subsection (5A) insert—
In section 24A(7)(d) (share loss relief on the disposal of certain investments not subject to the limit on deductions imposed by section 24A) after sub-paragraph (ii) insert , or
Chapter 1 of Part 5B (relief for social investments),
Chapter 1 of Part 5B (relief for social investments),
Chapter 1 of Part 5B (relief for social investments),
under section 257S (withdrawal or reduction of relief for social investments),
In section 392 (loan to buy interest in close company) after subsection (3) insert—
In section 416 (gift aid: meaning of “qualifying donation”) after subsection (6) insert—
In section 1014(5)(b) (orders and regulations not subject to negative procedure) after sub-paragraph (iii) insert—.
In section 1022 (meaning of “debenture”) after subsection (1) insert—
Section 57
TCGA 1992 is amended as follows.
After section 255 insert—
Before Schedule 9 insert—
Section 65
CAA 2001 is amended as follows.
Section 45DB (exclusions from allowances under section 45DA) is amended as follows. In subsection (3)(a), for “a firm in difficulty for the purposes of the Community Guidelines on State Aid for Rescuing and Restructuring Firms in Difficulty (2004/C 244/02)” substitute “an undertaking in difficulty for the purposes of the General Block Exemption Regulation”. In subsection (4)(a), for “Council Regulation (EC) No 104/2000” substitute “Regulation (EU) No 1379/2013 of the European Parliament and of the Council”. In subsection (11), in the definition of “General Block Exemption Regulation”, for “(EC) No 800/2008” substitute “(EU) No 651/2014”. In subsection (12), for paragraph (c) substitute—.
In section 45K (expenditure on plant and machinery for use in designated assisted areas), after subsection (8) insert—
Section 45M (exemptions from allowances under section 45K) is amended as follows. In subsection (1), for “(6) or (7)” substitute “(7) or (7A)”. In subsection (3)(a), for “a firm in difficulty for the purposes of the Community Guidelines on State Aid for Rescuing and Restructuring Firms in Difficulty (2004/C 244/02)” substitute “an undertaking in difficulty for the purposes of the General Block Exemption Regulation”. In subsection (4)— After that subsection insert— Omit subsection (6). After subsection (7) insert— In subsection (12)— In subsection (15), for paragraph (c) substitute—.
Section 45N (effect of plant or machinery subsequently being primarily for use outside designated assisted areas) is amended as follows. In subsection (1)— After subsection (3) insert—
In section 212T(6) (cap on first-year allowances: zero-emission goods vehicles), in the definition of “undertaking”, for “(EC) No 800/2008” substitute “(EU) No 651/2014”.
In section 212U(5) (cap on first-year allowances: expenditure on plant and machinery for use in designated assisted areas), in the definition of “single investment project”, for “(EC) No 800/2008” substitute “(EU) No 651/2014”.”
The amendments made by this Schedule have effect in relation to expenditure incurred on or after the day on which this Act is passed.
Section 69
In Part 8 of CTA 2010 (oil activities), after Chapter 5 insert—
In section 270 of CTA 2010 (overview of Part 8), after subsection (5) insert—
the commencement period (in Chapter 5A of Part 8) section 329D(1)”; offshore oil-related activities (in Chapter 5A of Part 8) section 329C(3) onshore oil-related activities (in Chapter 5A of Part 8) section 329C(2) onshore ring fence loss (in Chapter 5A of Part 8) section 329P the onshore ring fence pool (in Chapter 5A of Part 8) section 329Q the period of the loss (in Chapter 5A of Part 8) section 329P post-commencement additional supplement (in Chapter 5A of Part 8) section 329N(1) the post-commencement additional supplement provisions (in Chapter 5A of Part 8) section 329N(4) post-commencement period (in Chapter 5A of Part 8) section 329D(1) pre-commencement additional supplement (in Chapter 5A of Part 8) section 329I(1) pre-commencement period (in Chapter 5A of Part 8) section 329D(1) qualifying company (in Chapter 5A of Part 8) section 329B qualifying pre-commencement onshore expenditure (in Chapter 5A of Part 8) section 329G the relevant percentage (in Chapter 5A of Part 8) section 329E straddling period (in Chapter 5A of Part 8) section 329D(3) unrelieved group ring fence profits (in Chapter 5A of Part 8) section 329H
The amendments made by this Schedule have effect in relation to accounting periods ending on or after 5 December 2013.
Section 70
Part 8 of CTA 2010 (oil activities) is amended as follows.
CTA 2010 is amended as follows. In section 270 (overview of Part)— In section 333 (reduction of adjusted ring fence profits)— In section 356AA (as renumbered by paragraph 2)(definitions for Chapter 7), in the definition of “adjusted ring fence profits”, at the end insert “; but see also section 356DB (companies with allowances under Chapter 8 as well as this Chapter)”. In Schedule 4 (index of defined expressions)—
Section 73
Section 74
Section 86
VERA 1994 is amended as follows.
Omit section 61B (certificates as to reduced pollution).
In consequence of the amendment made by paragraph 2—
in section 45 (false declarations etc), in subsections (3A) and (3B) omit “or 61B”,
in Schedule 1 (annual rates of duty)—
in paragraph 3(6) omit paragraph (a) and the “and” following it,
in paragraph 4(7) omit paragraph (a) and the “and” following it,
in paragraph 5(6) omit paragraph (a) and the “and” following it, and
in paragraph 7(3) omit paragraph (a) and the “and” following it, and
in paragraph 22 of Schedule 2 (exempt vehicles: vehicle testing etc)—
in sub-paragraph (1)(a) for “, a vehicle weight test or a reduced pollution test” substitute “or a vehicle weight test”,
in sub-paragraph (2) omit “a reduced pollution test or”,
in sub-paragraph (2A), in both places it occurs, omit “or a reduced pollution test”,
in sub-paragraph (3) omit “, or a reduced pollution test,”,
omit sub-paragraph (6AA),
in sub-paragraph (6B) for “, a vehicle weight test or a reduced pollution test” substitute “or a vehicle weight test”, and
in sub-paragraphs (8) and (9) omit paragraph (d) and the “or” following paragraph (c).
In paragraph 3 of Schedule 1 (annual rates of duty: buses)—
in sub-paragraph (1) omit “with respect to which the reduced pollution requirements are not satisfied”, and
omit sub-paragraph (1A).
In paragraph 6 of Schedule 1 (annual rates of duty: vehicles used for exceptional loads), in sub-paragraph (2A)—
in paragraph (a) omit “in the case of a vehicle with respect to which the reduced pollution requirements are not satisfied,”,
omit the “and” following paragraph (a), and
omit paragraph (b).
The rate referred to in sub-paragraph (1)(b) is £350.
Omit paragraphs 9A and 9B of Schedule 1.
Omit paragraphs 11A and 11B of Schedule 1.
In paragraph 11C of Schedule 1 (annual rates of duty: tractive units), in sub-paragraph (2)—
in paragraph (a) omit “in the case of a vehicle with respect to which the reduced pollution requirements are not satisfied,”, and
omit paragraph (b).
In consequence of the amendments made by paragraphs 4 to 9—
in section 13 (trade licences: duration and amount of duty) omit subsection (7)(a) and the “and” following it,
in section 13 (trade licences: duration and amount of duty) as set out in paragraph 8(1) of Schedule 4 to VERA 1994 which is to have effect on and after a day appointed by order, omit subsection (7)(a) and the “and” following it,
in section 15 (vehicles becoming chargeable to duty at a higher rate), omit subsection (2A),
in paragraph 9 of Schedule 1 (annual rates of duty: rigid goods vehicles)—
in sub-paragraph (1), omit “is not a vehicle with respect to which the reduced pollution requirements are satisfied and which”,
omit sub-paragraph (3)(a), and
in sub-paragraph (4), omit paragraph (a) and the “and” following it, and
in paragraph 11 of Schedule 1 (annual rates of duty: tractive units)—
in sub-paragraph (1), omit “is not a vehicle with respect to which the reduced pollution requirements are satisfied and which”,
omit sub-paragraph (3)(a), and
in sub-paragraph (4), omit paragraph (a) and the “and” following it.
Section 91
VERA 1994 is amended as follows.
In section 7 (issue of vehicle licences), omit subsections (6) and (7).
Section 7A (supplement payable on vehicle ceasing to be appropriately covered) is amended as follows. In subsection (1B)— Omit subsection (1C).
Omit section 10 (transfer of vehicle licences).
In section 14 (trade licences: supplementary)—
in subsection (2), for the words from “surrender” to the end substitute “request that the Secretary of State cancel the licence”, and
omit subsection (4).
Section 19 (rebates) is amended as follows. In subsection (1), for the words from the beginning to “receive” substitute “If any of the rebate conditions is satisfied in relation to a vehicle in respect of which a vehicle licence is in force, the relevant person is entitled to receive (by way of rebate of duty paid on the licence)”. For subsection (3) substitute— In subsection (3ZA), for “(3)(ca)” substitute “(3)(d)”. In subsection (3A), for “when the application is made” substitute “when the rebate condition is satisfied”. In subsection (3B), for paragraph (b) (and the “and” following it) substitute—. For subsection (4) substitute— For subsections (5) and (6) substitute— For subsection (7) substitute— In subsection (8)—
In section 22 (registration regulations)—
omit subsection (2A)(c), and
omit subsection (4).
In section 29 (penalty for keeping unlicensed vehicle)—
in subsection (4) omit the words from “unless” to the end, and
omit subsection (5).
In section 31 (relevant period for purposes of section 30), in subsection (7)(a), omit “surrender or”.
In section 31A (offence by registered keeper where vehicle unlicensed)—
in subsection (4) omit the words from “unless” to the end, and
omit subsection (5).
In section 31B (exceptions to section 31A), in subsection (9)(a)(i), omit “surrender or”.
In section 31C (penalties for offences under section 31A), in subsection (7)(a) omit “surrender or”.
Omit section 33 (offence of not exhibiting licence).
Omit section 33A (not exhibiting licence: period of grace).
Omit section 35 (failure to return licence).
Section 35A (dishonoured cheques) is amended as follows. In subsection (1)— Omit subsection (3). In subsection (4), for “subsection (3)(b)” substitute “subsection (1)(a)”. For subsection (7) substitute—
Section 36 (dishonoured cheques: additional liability) is amended as follows. For subsection (4A) substitute— In subsection (6)(b), for “section 35A(3)(b)” substitute “section 35A(1)(a)”.
In section 44 (forgery and fraud), in subsection (2), omit paragraphs (a) to (c).
In section 58 (fees prescribed by regulations) omit “7(6)(b),”.
In section 62 (definitions), in the definition of “nil licence”, for the words from “document” to “and is” substitute “licence”.
In Schedule 3 to the Road Traffic Offenders Act 1988 (fixed penalty offences) omit the entry relating to section 33 of VERA 1994.
The amendments made by this Schedule come into force on 1 October 2014.
Section 99
Schedule 6 to FA 2000 (climate change levy) is amended as follows.
After paragraph 12 insert—
Paragraph 42 (amount payable by way of levy) is amended as follows. In sub-paragraph (1)— Omit sub-paragraph (1ZA).
Omit paragraph 43A (supplies for use in scrap metal recycling) and the cross-heading before it.
In paragraph 43B (supplies for use in scrap metal recycling etc: deemed supply) in sub-paragraph (1)(b) omit sub-paragraph (i).
In paragraph 62 (tax credits) in sub-paragraph (1) omit paragraphs (ca) and (cb).
In paragraph 101 (civil penalties: incorrect certificates) in sub-paragraph (2)(a)—
in sub-paragraph (ii) after “12,” insert “12A,”,
after sub-paragraph (ii) insert “or”, and
omit sub-paragraph (iiia) and the “or” after it.
The Climate Change Levy (General) Regulations 2001 (S.I. 2001/838) are amended as follows. In regulation 2 (general interpretation) in paragraph (1) omit “, recycling lower-rate part”, “a recycling lower-rate supply or” and the definition of “recycling lower-rate supply”. In regulation 8 (records which a registrable person is obliged to keep) in paragraph (c)(ii) omit “recycling lower-rate supply or a”. In regulation 11 (other tax credits: entitlement) in paragraph (1)— In regulation 12 (tax credits: general) in paragraph (1) omit “, recycling lower-rate supplies”. In regulation 33 (special rules for certain supplies)— In the title of Part 3 omit “, recycling lower-rate”. In regulation 34 (supplier certificates) in paragraph (1)(a) after “12 (transport),” insert “12A (mineralogical and metallurgical processes),”. In regulation 35 (supplier certificates)— Schedule 1 (certification etc) is amended as follows. In the title omit “, recycling lower-rate”. In paragraph 2— In paragraph 3(1) omit “recycling lower-rate and”. In paragraph 5(7) omit “Supplies for use in scrap metal recycling and”. In paragraph 6(1)— The amendments made by sub-paragraphs (8) and (12)(b) are to be treated as having been made by the Commissioners for Her Majesty’s Revenue and Customs in exercise of the power conferred by paragraph 22 of Schedule 6 to FA 2000 (regulations giving effect to exemptions).
Schedule 1 to the Climate Change Levy (Fuel Use and Recycling Processes) Regulations 2005 (S.I. 2005/1715) is amended as follows. In paragraph 1 omit “Aluminium” and “Copper”. In paragraph 2 for the words from “Gold” to “platinum group metal alloys and” substitute “The electrolytic dissolution of”. Omit paragraphs 18 to 24, 26, 27, 28, 32, 34, 36 and 37. The amendments made by this paragraph are to be treated as having been made by the Treasury in exercise of the power conferred by paragraph 18(2) of Schedule 6 to FA 2000 (exemption for supply not used as fuel).
The amendments made by this Part are treated as having come into force on 1 April 2014 and have effect as follows. In relation to supplies of gas or electricity, they have effect in relation to gas or electricity actually supplied on or after 1 April 2014. In relation to any other supplies, they have effect in relation to supplies treated as taking place on or after 1 April 2014.
Schedule 6 to FA 2000 (climate change levy) is amended as follows.
The Treasury may by regulations amend this paragraph so as to amend the definition of “mineralogical process”. The Treasury may by regulations amend sub-paragraph (4) so as to add, remove or modify a description.
In paragraph 13A (power to make provision amending paragraph 13) in sub-paragraph (3) omit “Parliament”.
Paragraph 146 (regulations and orders) is amended as follows. In sub-paragraphs (2)(b) and (3) omit “Parliament”. A statutory instrument that contains (whether alone or with other provision) regulations under paragraph 12A(5) that remove a process (in whole or in part) from the scope of the definition of “mineralogical process” shall not be made unless a draft of the statutory instrument containing the regulations has been laid before and approved by a resolution of the House of Commons. A statutory instrument that contains (whether alone or with other provision) regulations under paragraph 12A(6) that— shall not be made unless a draft of the statutory instrument containing the regulations has been laid before and approved by a resolution of the House of Commons.
Section 101
Section 103
VATA 1994 is amended in accordance with paragraphs 12 to 16.
Section 3A (supply of electronic services in member States: special accounting scheme) is amended as follows. In subsection (1), after “services” insert “, telecommunication services or broadcasting services”. After subsection (1) insert— For the heading substitute “Supplies of electronic, telecommunication and broadcasting services: special accounting schemes.”
In section 76 (assessment of amounts due by way of penalty, interest or surcharge)—
in subsection (1)(a), for “or 59A,” substitute “, section 59A, paragraph 16F of Schedule 3B or paragraph 26 of Schedule 3BA,”;
after subsection (3) insert—;
in subsection (5), after each “(3)” insert “or (3A)”.
After section 76 insert—
In section 77 (assessment: time limits and supplementary assessments)—
in subsection (2), after “subsection (3)” insert “or (3A)”;
in subsection (3) after “subsection (3)” insert “or (3A)”.
In section 80 (repayment of overpaid VAT etc), in subsection (7), after “this section” insert “(and paragraph 16I of Schedule 3B and paragraph 29 of Schedule 3BA)”.
In section 84(6) (appeals: variation of amounts assessed by way of surcharge etc), after “70,” insert “or (as the case requires) paragraph 26 of Schedule 3BA or paragraph 16F of Schedule 3B”.
In paragraph 12 of Schedule 1A to VATA 1994 (cancellation of registration under that Schedule)—
after “Schedule 3B” insert “and paragraph 16 of Schedule 3BA”;
for “that Schedule etc” substitute “the Schedule concerned”.
Paragraph 1 of Schedule 24 to FA 2007 (penalties for errors) is amended as follows. VAT Return under a special scheme. In this paragraph “return under a special scheme” means any of the following, so far as relating to supplies of services treated as made in the United Kingdom— A value added tax return mentioned in paragraph (b) or (c) of sub-paragraph (4A) is regarded for the purposes of sub-paragraph (1) as given to HMRC when it is submitted to the authority to whom it is required to be submitted. In sub-paragraph (4A)—
FA 2009 is amended as follows. The reference in subsection (1) to amounts payable to HMRC includes— and references in Schedule 53 to amounts due or payable to HMRC are to be read accordingly. In subsection (10)— In section 108 (suspension of penalties during currency of agreement for deferred payment), in the Table in subsection (5), in the entry relating to value added tax, in the second column, after “1994” insert, “or under paragraph 16F of Schedule 3B, or paragraph 26 of Schedule 3BA, to that Act”.
Schedule 10 to F(No.3)A 2010 (which prospectively amends Schedule 55 to FA 2009, which provides for penalties for failure to make returns) is amended as follows. In paragraph 2— In paragraph 7, in the inserted paragraph 13A(1), for “7A, 7B” substitute “7A to 7B”.
Schedule 11 to F(No.3)A 2010 (which prospectively amends Schedule 56 to FA 2009, which provides for penalties for failure to make payments) is amended as follows. 6BA Value added tax Amount payable under relevant special scheme return (as defined in paragraph 16(3) of Schedule 3B to VATA 1994) (except an amount falling within item 13A, 13AA, 13AB, 23 or 24) The date by which the amount must be paid under the law of the member State which has established the special scheme 6BB Value added tax Amount payable under relevant non-UK return (as defined in paragraph 20(3) of Schedule 3BA to VATA 1994) (except an amount falling within item 13A, 13AA, 13AB, 23 or 24) The date by which the amount must be paid under the law of the member State which has established the non-UK special scheme 13AA Value added tax Amount assessed under section 73(1) of VATA 1994, by virtue of paragraph 16 of Schedule 3B to that Act, in the absence of a value added tax return (as defined in paragraph 23(1) of that Schedule) The date by which the amount would have been required to be paid under the law of the member State under whose law the return was required 13AB Value added tax Amount assessed under section 73(1) of VATA 1994, by virtue of paragraph 20 of Schedule 3BA to that Act, in the absence of a relevant non-UK return (as defined in paragraph 38(1) of that Schedule) The date by which the amount would have been required to be paid under the law of the member State under whose law the return was required In paragraph 2(13)(a), in the substituted words, after “6A,” insert “6BA, 6BB,”. In paragraph 2(14)(a), in the substituted words, after “6A,” insert “6BA, 6BB,”. In paragraph 7, in the inserted paragraph 8A(1), after “6A,” insert “6BA, 6BB,”.
The amendments made by this Schedule (except the amendments made by paragraphs 20(2), 21 and 22) have effect in relation to supplies made on or after 1 January 2015 (but see also paragraphs 24 and 25). Sub-paragraph (1) does not apply in relation to—
No registration under Schedule 3BA (inserted by paragraph 1) may take effect before 1 January 2015. A request for registration under Schedule 3BA that is made before 1 October 2014 is to be treated for the purposes of Article 57d of Implementing Regulation (EU) No 282/2011 (as amended by Council Regulation (EU) No 967/2012) (registration to have effect from first day of subsequent quarter) as if it were made on that date.
No registration under Schedule 3B that is to be made in reliance on the amendments made by paragraph 4 may take effect before 1 January 2015. A request for registration under Schedule 3B that is made before 1 October 2014 in reliance on the amendments made by paragraph 4 is to be treated for the purposes of Article 57d of Implementing Regulation (EU) No 282/2011 (as amended by Council Regulation (EU) No 967/2012) as if it were made on that date.
Section 113
Schedule 8 to FA 2003 (stamp duty land tax: charities relief) is amended as follows.
In paragraph 1 (conditions for charities relief)—
in sub-paragraph (2), omit the words from “that is” to the end;
in sub-paragraph (3), for “not been” substitute “been”;
For the purposes of this Schedule, a charity (“C”) holds a chargeable interest for qualifying charitable purposes if it holds it—
After paragraph 3 insert—
In paragraph 4(3) (charitable trusts)—
in paragraph (a), for the words from “references” to “are to” substitute “references in paragraph 1(3A) to the charitable purposes of C are to those of”;
in paragraph (b), for “reference” substitute “references” and for “is” substitute “, and to C in paragraph 3B(4)(a), are”;
in paragraph (c), for the words from “reference” to “is” substitute “references in paragraphs 3(2)(b) and 3C(3) to the charitable purposes of C are”.
The amendments made by this section have effect in relation to any transaction of which the effective date (within the meaning of Part 4 of FA 2003) is on or after the day on which this Act is passed.
Section 115
Section 117
Section 120
Section 177
Section 196
BGDA 1981 is amended as follows.
Omit sections 1 to 12 (general betting duty and pool betting duty).
In section 17 (bingo duty) for subsection (2A) substitute—
Omit sections 26A to 26M (remote gaming duty).
In section 27 (offences by bodies corporate), omit “paragraph 13(1) or (3) or 14(1) of Schedule 1 or”.
In section 31 (protection of officers), for “general betting duty, bingo duty or remote gaming duty” substitute “bingo duty”.
Omit Schedule A1 (general betting duty and pool betting duty: double taxation relief).
Omit Schedule 1 (administration of general betting duty and pool betting duty).
Omit Schedule 4B (remote gaming duty: double taxation relief).
Section 197
Section 209
Section 215
Section 228
Section 233
Section 237
Sub-paragraph (2) applies where— The body corporate is regarded as having met the threshold condition at the earlier time. “Relevant threshold condition” means a threshold condition specified in any of the following paragraphs of this Schedule— For the purposes of this paragraph a person (“P”) has control of a body corporate (“B”) if P has power to secure— that the affairs of B are conducted in accordance with P’s wishes.
The Treasury may by regulations amend this Schedule. An amendment made by virtue of sub-paragraph (1) may, in particular— Regulations under sub-paragraph (1) may include any amendment of this Part of this Act that is appropriate in consequence of an amendment made by virtue of sub-paragraph (1).
Section 274
Section 281
Section 290
In Part 4 of ITEPA 2003 (employment income: exemptions), after Chapter 10 insert—
In section 717 (orders and regulations made by Treasury etc), in subsection (4) (instruments not subject to negative resolution procedure), after “to which” insert “section 312A(10) (reduction of tax-exempt amount in respect of certain bonus payments) or”.
company (in Chapter 10A of Part 4) section 312I trade (in Chapter 10A of Part 4) section 312I
The amendment made by paragraph 5 has effect in relation to payments received on or after 1 October 2014.
IHTA 1984 is amended as follows.
After section 13 insert— The amendment made by this paragraph has effect in relation to dispositions of property made on or after 6 April 2014.
After section 28 insert— The amendment made by this paragraph has effect in relation to transfers of value made on or after 6 April 2014.
In section 29A (abatement of exemption where claim settled out of beneficiary’s own resources), in subsection (6)— The amendment made by this paragraph has effect in relation to transfers of value made on or after 6 April 2014.
Section 72 (property leaving employee trusts and newspaper trusts) is amended as follows. In subsection (2), after “Subject to subsections” insert “(3A),”. After subsection (3) insert— The amendments made by this paragraph are treated as having come into force on 6 April 2014.
After section 75 insert— The amendment made by this paragraph is treated as having come into force on 6 April 2014.
Section 86 (trusts for benefit of employees) is amended as follows. In subsection (3), after paragraph (c) insert , or After that subsection insert— The amendments made by this paragraph are treated as having come into force on 6 April 2014.
In section 144 (distribution etc from property settled by will), in subsection (1)(b), after “section 75” insert “, 75A”. The amendment made by this section is treated as having come into force on 6 April 2014.
Section 296
ITA 2007 is amended as follows.
In section 6 (the basic rate, higher rate and additional rate)—
omit subsections (2A) to (2C), and
in subsection (3), after “see—” insert—.
After section 6 insert—
In section 10 (income charged at the basic, higher and additional rates: individuals)—
omit subsections (3B) and (3C), and
section 11A (income charged at the Scottish basic, higher and additional rates),
After section 11 insert—
In section 13 (income charged at the dividend ordinary, upper and additional rates)—
in subsection (1)(b), after “the basic rate,” insert “or the Scottish basic rate,”,
in subsection (2)(b), after “the higher rate,” insert “or the Scottish higher rate,”,
in subsection (2A)(b), after “the additional rate,” insert “or the Scottish additional rate,”,
in subsection (3), after “section 10” insert “or 11A”, and
in subsection (4), after “the basic, higher or additional rate” insert “or the Scottish basic, higher or additional rate”.
In section 16 (savings and dividend income to be treated as highest part of total income), in subsection (1), for paragraph (za) substitute—.
In section 809H (charge on nominated income of long-term UK resident), for subsection (3A) substitute—
In section 828B (conditions to be met for exemption where individual resident but not domiciled in the UK), in subsection (5), after “the basic rate” insert “, the Scottish basic rate”.
In section 989 (definitions for the purposes of the Income Tax Acts)—
in the definitions of “additional rate”, “basic rate” and “higher rate”, omit “or (2B)”, and
at the appropriate place, insert—, , , .
Scottish additional rate section 6A (as applied by section 989)” Scottish basic rate section 6A (as applied by section 989) Scottish higher rate section 6A (as applied by section 989) Scottish taxpayer section 989
The amendments made by this Part have effect in relation to the tax year appointed by the Treasury under section 25(5) of the Scotland Act 2012 and subsequent tax years.
In section 1 of the Provisional Collection of Taxes Act 1968 (temporary statutory effect of resolutions of House of Commons), omit subsection (3A).
In section 7 of TMA 1970 (notice of liability to income tax and capital gains tax), in subsection (6), after “the basic rate,” insert “the Scottish basic rate,”. The amendment made by sub-paragraph (1) has effect in relation to the tax year appointed by the Treasury under section 25(5) of the Scotland Act 2012 and subsequent tax years.
TCGA 1992 is amended as follows. In section 4 (rates of capital gains tax), in subsections (4) and (5), after “the higher rate” insert “, the Scottish higher rate”. In section 4A (section 4: special cases), in subsection (5), after “at the higher rate” insert “, the Scottish higher rate”. The amendments made by this paragraph have effect in relation to the tax year appointed by the Treasury under section 25(5) of the Scotland Act 2012 and subsequent tax years.
The Scotland Act 1998 is amended as follows. In section 80C (power to set Scottish rate for Scottish taxpayers), for subsection (2) substitute— Section 80G (supplemental powers to modify enactments) is amended in accordance with sub-paragraphs (4) to (8). For subsection (1) substitute— In subsection (2), for the words from “with—” to the end substitute “with an order under subsection (1), (1A) or (1B)”. Omit subsection (3). After subsection (4) insert— In section 110 (Scottish taxpayers for social security purposes), in subsection (2)— Schedule 7 (procedure for subordinate legislation) is amended in accordance with sub-paragraphs (10) and (11). In paragraph 1(2)— At the end of paragraph 1, omit the Note relating to the entry for section 79. Sub-paragraph (8) comes into force on such day as the Secretary of State may by order made by statutory instrument appoint. Sub-paragraphs (10)(a) and (11) come into force on such day as the Treasury may by order appoint.
In consequence of the amendments made by this Schedule, in the Scotland Act 2012 omit—
section 26 (income tax for Scottish taxpayers),
paragraph 1(2)(a) and (b) of Schedule 2 (amendments to section 110(2) of the Scotland Act 1998), and
paragraph 1(4) of that Schedule (amendments to Schedule 7 to the Scotland Act 1998 relating to section 80G of that Act).
Section 298
Sections 26 and 27 and 29 to 41 of FA 2003 (taxes and duties on importation and exportation: penalties) apply in relation to excise duty as they apply in relation to a relevant tax or duty (as defined by section 24(2) of that Act) except that, for this purpose, “relevant rule” in sections 26 and 33 means a relevant excise rule.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 9 of VATA 1994 (place where supplier or recipient of services belongs) is amended as follows.
In subsection (3)(c), after “usual place of residence” insert “ or permanent address ”.
In subsection (5), for the words from “belonging” to the end substitutebelonging—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The amendments made by this section have effect in relation to supplies made on or after 1 January 2015.
Section 97A of VATA 1994 (place of supply orders: transitional provision) is to be ignored for the purpose of giving effect to any new order under section 7A(6) of that Act which—
is expressed as having effect in relation to supplies made on or after 1 January 2015, and
makes provision about the place of supply of electronically supplied services, telecommunication services and radio and television broadcasting services.
In subsection (1) “new order” means an order made on or after the day on which this Act is passed.
Subsection (1) applies only so far as the order makes provision about supplies to which Article 2 of Council Implementing Regulation (EU) No 1042/2013 (transitional provision for changes in the law affecting electronically supplied, telecommunication and radio and television broadcasting services) applies.
Section 47 of VATA 1994 (agents) is amended as follows.
In subsection (3), after “services” insert “ , other than electronically supplied services and telecommunication services, ”.
After subsection (3) insert—
The amendments made by this section have effect in relation to supplies made on or after 1 January 2015.
In section 41(7) of VATA 1994 (application to the Crown: list of bodies regarded as Government departments) after “Excellence” insert “ , Health Education England (established by the Care Act 2014), and the Health Research Authority (also established by that Act), ”.
In section 41(7) of VATA 1994 as amended by subsection (1)—
for “above,” substitute— ,
for the “and” after “1990,” substitute— ,
after “1978” insert, ,
for the “and” after “foundation trust” substitute, ,
for the “and” after “Care Trust” substitute, ,
for the “and” after “Health Board” substitute, ,
after “group,” insert—,
after “Centre,” insert—,
for the “and” after “Commissioning Board” substitute, ,
before “Health Education England” insert—,
before “the Health Research Authority” insert—,
the words from “shall be regarded” to the end are to follow, rather than form part of, the paragraph (k) so formed, and
in those words, for “shall” substitute “ are each to ”.
In Part 2 of Schedule 6 to VATA 1994 (valuation: special cases), for paragraph 4 (prompt payment discounts), substitute—
The amendment made by this section has effect in relation to relevant supplies made on or after 1 May 2014.
The Treasury may by order made by statutory instrument provide that the amendment has effect in relation to supplies of a description specified in the order made on or after a date so specified (being a date before 1 April 2015).
Subject to that, the amendment has effect in relation to supplies made on or after 1 April 2015.
In this section—
in a case within paragraph (a) above, the end of the period during which the appeal could have been made;
Part 3 of FA 2013 (annual tax on enveloped dwellings) is amended as follows.
In section 94(2)(a) (charge to tax), for “£2 million” substitute “ £1 million ”.
£7,000 More than £1 million but not more than £2 million.
The amendments made by subsections (1) to (3) have effect for chargeable periods beginning on or after 1 April 2015.
In a case where tax is charged for the chargeable period beginning with 1 April 2015 with respect to a single-dwelling interest the taxable value of which on the relevant day (see section 99(5) of FA 2013) is not more than £2 million, sections 159 and 163 of FA 2013 have effect with the following modifications.
Section 159 (annual tax on enveloped dwellings return) has effect as if for subsections (2) and (3) there were substituted—
Section 163 (payment of tax) has effect as if for subsection (1) there were substituted—
Part 3 of FA 2013 (annual tax on enveloped dwellings) is amended as follows.
In section 94(2)(a) (charge to tax), for “£1 million” substitute “ £500,000 ”.
£3,500 More than £500,000 but not more than £1 million.
The amendments made by this section have effect for chargeable periods beginning on or after 1 April 2016.
Schedule 4A to FA 2003 (SDLT: higher rate for certain transactions) is amended as follows.
In paragraph 1(2) (meaning of “higher threshold interest”) for “£2,000,000” substitute “ £500,000 ”.
In consequence of the amendment made by subsection (2), in the following provisions, for “£2,000,000” substitute “ £500,000 ”
paragraph 4(1)(c);
paragraph 6(2);
paragraph 6(3)(b).
The amendments made by this section have effect in relation to any chargeable transaction of which the effective date is on or after 20 March 2014.
But the amendments do not have effect in relation to a transaction—
effected in pursuance of a contract entered into and substantially performed before 20 March 2014,
effected in pursuance of a contract entered into before that date and not excluded by subsection (6), or
excepted by subsection (7).
A transaction effected in pursuance of a contract entered into before 20 March 2014 is excluded by this subsection if—
there is any variation of the contract, or assignment (or assignation) of rights under the contract, on or after 20 March 2014,
the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or
on or after that date there is an assignment (or assignation), subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.
A transaction treated as occurring under paragraph 17(2) or 17A(4) of Schedule 15 to FA 2003 (partnerships) is excepted by this subsection if the effective date of the land transfer referred to in sub-paragraph (1)(a) of the paragraph concerned is before 20 March 2014.
In section 74 of FA 2003 (exercise of collective rights by tenants of flats), in subsection (1A) for “£2,000,000”, in each place it occurs, substitute “ £500,000 ”.
The amendments made by this section have effect in relation to any chargeable transaction of which the effective date is on or after 1 July 2014.
But the amendments do not have effect in relation to a transaction—
effected in pursuance of a contract entered into and substantially performed before 20 March 2014, or
effected in pursuance of a contract entered into before that date and not excluded by subsection (4).
A transaction effected in pursuance of a contract entered into before 20 March 2014 is excluded by this subsection if—
there is any variation of the contract, or assignment (or assignation) of rights under the contract, on or after 20 March 2014,
the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or
on or after that date there is an assignment (or assignation), subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.
Schedule 23 amends Schedule 8 to FA 2003 (stamp duty land tax: charities relief).
Part 2 of Schedule 19 to FA 1999 (which provides for a charge to stamp duty reserve tax on certain dealings with units in unit trusts) is omitted.
In section 90(1B) of FA 1986 (exception to charge to stamp duty reserve tax on certain agreements to transfer property from a unit trust)—
after “unit trust scheme” insert “ if the unit holder is to receive only such part of each description of asset in the trust property as is proportionate to, or as nearly as practicable proportionate to, the unit holder's share. ”, and
and the unit is a chargeable security.
Accordingly—
in FA 1999, in section 123(3), for “Parts I to III” substitute “ Parts I and III ”,
in FA 2001, omit sections 93 and 94,
in FA 2004, in Schedule 35, omit paragraph 46 and the italic heading before that paragraph,
in FA 2005, omit section 97(3), (4) and (6), and
in FA 2010, in Schedule 6, omit paragraph 15(2).
The amendments made by this section have effect in relation to surrenders made or effected on or after 30 March 2014.
Provision made by regulations under section 98 of FA 1986, section 152 of FA 1995 or section 17 of F(No.2)A 2005 in connection with the coming into force of this section may be made so as to have effect in relation to surrenders made or effected on or after 30 March 2014 (even if the regulations are made after that date).
In subsections (4) and (5) a reference to surrenders is to be read in accordance with paragraph 2 of Schedule 19 to FA 1999.
Schedule 24 contains provision abolishing stamp duty and stamp duty reserve tax on instruments and transfers of securities traded on recognised growth markets.
Section 50 of FA 1973 (temporary statutory effect of House of Commons resolution affecting stamp duties) is amended as follows.
In subsection (2), for paragraph (c) (and the “and” after it) substitute—.
In that subsection, in paragraph (d), for “six” substitute “ seven ”.
After that subsection insert—
Schedule 25 contains provision about inheritance tax.
In Schedule 14 to FA 2012 (gifts to the nation), before paragraph 33 insert—
Subsection (3) applies where a person (“the donor”) has, before the day on which this Act is passed, made a qualifying gift of an object in circumstances where, had the donor instead sold the object to an individual at market value, a charge to estate duty would have arisen under section 40 of FA 1930 on the proceeds of sale.
No liability to estate duty under section 40 of FA 1930 arises in respect of the object on or after the day on which this Act is passed.
In subsection (2) “qualifying gift” has the same meaning as in Schedule 14 to FA 2012.
In the application of subsections (2) and (3) to Northern Ireland, the references to section 40 of FA 1930 are to be read as references to section 2 of the Finance Act (Northern Ireland) 1931.
Schedule 19 to FA 2011 (bank levy) is amended as follows.
In paragraph 6 (steps for determining the amount of the bank levy), in sub-paragraph (2)—
for “0.065%” substitute “ 0.078% ”, and
for “0.130%” substitute “ 0.156% ”.
In paragraph 7 (special provision for chargeable periods falling wholly or partly before 1 January 2013)— and in the italic heading immediately before paragraph 7, for “2013” substitute “ 2014 ”.
in sub-paragraph (1) for “2013” substitute “ 2014 ”,
in sub-paragraph (2), in the first column of the table in the substituted Step 7, for “ Any time on or after 1 January 2013 ” substitute “1 January 2013 to 31 December 2013”, and
Any time on or after 1 January 2014 0.078% 0.156%
Section 203 of FA 2013 (bank levy rates from 1 January 2014) is repealed.
The amendments made by subsections (2) to (4) are treated as having come into force on 1 January 2014 (and accordingly the section repealed by subsection (4) is treated as never having come into force).
Subsections (7) to (13) apply where—
an amount of the bank levy is treated as if it were an amount of corporation tax chargeable on an entity (“E”) for an accounting period of E,
the chargeable period in respect of which the amount of the bank levy is charged falls (or partly falls) on or after 1 January 2014, and
under the Instalment Payment Regulations, one or more instalment payments, in respect of the total liability of E for the accounting period, were treated as becoming due and payable before the commencement date (“pre-commencement instalment payments”).
Subsections (1) to (5) are to be ignored for the purpose of determining the amount of any pre-commencement instalment payment.
If there is at least one instalment payment, in respect of the total liability of E for the accounting period, which under the Instalment Payment Regulations is treated as becoming due and payable on or after the commencement date (“post-commencement instalment payments”), the amount of that instalment payment, or the first of them, is to be increased by the adjustment amount.
If there are no post-commencement instalment payments, a further instalment payment, in respect of the total liability of E for the accounting period, of an amount equal to the adjustment amount is to be treated as becoming due and payable at the end of the period of 30 days beginning with the commencement date.
“The adjustment amount” is the difference between—
the aggregate amount of the pre-commencement instalments determined in accordance with subsection (7), and
the aggregate amount of those instalment payments determined ignoring subsection (7) (and so taking account of subsections (1) to (5)).
In the Instalment Payment Regulations—
in regulations 6(1)(a), 7(2), 8(1)(a) and (2)(a), 9(5), 10(1), 11(1) and 13, references to regulation 4A, 4B, 4C, 4D, 5, 5A or 5B of those Regulations are to be read as including a reference to subsections (6) to (10) (and in regulation 7(2) “the regulation in question”, and in regulation 8(2) “that regulation”, are to be read accordingly), and
in regulation 9(3), the reference to those Regulations is to be read as including a reference to subsections (6) to (10).
In section 59D of TMA 1970 (general rule as to when corporation tax is due and payable), in subsection (5), the reference to section 59E is to be read as including a reference to subsections (6) to (11).
In this section— and references to the total liability of E for an accounting period are to be construed in accordance with regulation 2(3) of the Instalment Payment Regulations.
“follower notice” has the meaning given by section 204(1);
TCGA 1992 is amended as follows.
In the second column of the Table in section 98 of TMA 1970 (special returns etc) omit the entry for section 421J(3) of ITEPA 2003.
This Schedule is to be treated as having come into force on 1 April 2014 (“the commencement date”).
In this paragraph “new accounting period” means an accounting period beginning on or after 1 December 2014. Where a bet to which section 2(1) of BGDA 1981 (general bets with bookmaker in the United Kingdom) applies is made with a bookmaker before 1 December 2014, amounts in respect of the bet which fall due to the bookmaker in a new accounting period are to be included among the amounts aggregated at Step 1 in section 131 of this Act in calculating the bookmaker’s ordinary profits in respect of general bets for that period. Where— amounts in respect of the bet which fall due to the bookmaker in a new accounting period are to be included among the amounts aggregated at Step 1 in section 131 of this Act in calculating the bookmaker’s ordinary profits in respect of financial spread bets for that period. Where— amounts in respect of the bet which fall due to the bookmaker in a new accounting period are to be included among the amounts aggregated at Step 1 in section 131 of this Act in calculating the bookmaker’s ordinary profits in respect of non-financial spread bets for that period. Where a bet by way of pool betting to which section 4(1) of BGDA 1981 applies is made before 1 December 2014 by means of facilities provided by a person, amounts in respect of the bet which fall due to the person in a new accounting period are to be included among the amounts aggregated under section 137(a) of this Act in calculating the person’s profits for that period in respect of ordinary Chapter 1 pool bets. Where a dutiable pool bet (as defined by section 7B of BGDA 1981) is made before 1 December 2014, amounts in respect of the bet which in accordance with section 7D of BGDA 1981 fall due— in a new accounting period are to be included among the amounts aggregated under section 146(a) of this Act in calculating that person’s profits for that period in respect of ordinary Chapter 2 pool bets. Section 5(2), (4) and (5) of BGDA 1981 (amounts due: timing and calculation) apply for the purposes of sub-paragraphs (2) to (5).
In this paragraph “new accounting period” means an accounting period beginning on or after 1 December 2014. Where under section 5 or 5AA(3) of BGDA 1981 a person has a negative amount of net stake receipts for an accounting period ending on 30 November 2014 in respect of bets to which section 2(1) of BGDA 1981 applies, the amount may be carried forward in reduction of the person’s profits on general bets for one or more new accounting periods. Where under section 5 or 5AA(3) of BGDA 1981 a person has a negative amount of net stake receipts for an accounting period ending on 30 November 2014 in respect of bets— the amount may be carried forward in reduction of the person’s profits on financial spread bets for one or more new accounting periods. Where under section 5 or 5AA(3) of BGDA 1981 a person has a negative amount of net stake receipts for an accounting period ending on 30 November 2014 in respect of bets— the amount may be carried forward in reduction of the person’s profits on non-financial spread bets for one or more new accounting periods. Where under section 5 or 5AA(3) of BGDA 1981 a person has a negative amount of net stake receipts for an accounting period ending on 30 November 2014 in respect of bets by way of pool betting to which section 4(1) of BGDA 1981 applies, the amount may be carried forward in reduction of the person’s profits on Chapter 1 pool bets for one or more new accounting periods. Where under section 7ZA(3) or 7A of BGDA 1981 a person has a negative amount of net pool betting receipts for an accounting period ending on 30 November 2014, the amount may be carried forward in reduction of the person’s profits on Chapter 2 pool bets for one or more new accounting periods. Where the amount of a person’s remote gaming profits (see section 26C(2) of BGDA 1981) for an accounting period ending on or before 30 November 2014 is a negative amount then that amount, so far as it has not been carried forward under section 26G of BGDA 1981 in reduction of the profits of one or more later accounting periods ending on or before 30 November 2014, may be carried forward in reduction of the person’s profits on remote gaming (see section 155(4) of this Act) for one or more new accounting periods.
The amendments and repeals made by Schedule 28 do not affect— Sub-paragraph (1)—
A notice given to a partnership under this Part of this Act has effect, at any time, in relation to the persons who are members of the partnership at that time (“the responsible partners”). Sub-paragraph (1) does not affect any liability of a person who has ceased to be a member of a partnership in respect of things that the responsible partners did or failed to do before that person ceased to be a member of the partnership. Anything required to be done by the responsible partners under or by virtue of a provision of this Part of this Act is required to be done by all the responsible partners (but see paragraph 18). In relation to any right (such as a right of appeal) conferred by this Part of this Act references to a person have the meaning that is appropriate in consequence of sub-paragraphs (1) to (3).
Anything required to be done by the responsible partners under this Part of this Act may instead be done by any nominated partner. “Nominated partner” means a partner nominated by a majority of the partners to act as the representative of the partnership for the purposes of this Part of this Act. A nomination under sub-paragraph (2), or the revocation of such a nomination, has effect only after notice of the nomination, or revocation, has been given to an authorised officer.
Section 105A (shares acquired on same day: election for alternative treatment) is amended as follows. For “approved-scheme” (in all places) substitute “tax-advantaged-scheme”. In subsection (1)(b)(ii) omit “approved”.
Section 356L of CTA 2010 has effect in relation to activities carried out on or after the commencement date.
In section 105B (provision supplementary to section 105A) in subsections (7) and (8) for “approved-scheme” substitute “tax-advantaged-scheme”.
If, on the commencement date, a company was carrying on a trade that consisted of, or included, carrying out oil contractor activities, an accounting period ends (if it would not otherwise do so) with 31 March 2014. Sub-paragraph (3) applies if— For the purposes of Chapter 4 of Part 22 of CTA 2010 (surrender of tax refund within group)—
In section 238A (share schemes and share incentives) in subsection (2)(b) for “approved” substitute “Schedule 3”.
A company may be given relief under section 45 of CTA 2010 (carry forward of trade loss against subsequent trade profits) for a loss made in an accounting period ending before the commencement date against profits of a ring fence trade so far as (and only so far as) the loss would have been a loss of the ring fence trade had section 356L of that Act had effect in relation to activities carried out before the commencement date and Part 8ZA therefore applied. In sub-paragraph (1) “ring fence trade” means oil contractor activities that constitute a separate trade (whether by virtue of section 356M of that Act or otherwise).
Part 2 of Schedule 7D (SAYE option schemes) is amended as follows.
In the title for “Approved” substitute “Schedule 3”.
In paragraph 9 (introduction) in sub-paragraphs (1) and (2) omit “approved”.
Paragraph 10 (market value rule not to apply) is amended as follows. In sub-paragraph (1)— Sub-paragraph (3A) applies for the purposes of sub-paragraph (1)(b) if— The scheme is to be taken still to be a Schedule 3 SAYE option scheme when the option is exercised.
Schedule 26 contains miscellaneous changes to the bank levy.
Part of gross gaming yield Rate The first £2,302,000 15 per cent The next £1,587,000 20 per cent The next £2,779,000 30 per cent The next £5,865,500 40 per cent The remainder 50 per cent
The amendment made by this section has effect in relation to accounting periods beginning on or after 1 April 2014.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In section 17(1)(b) of BGDA 1981 (bingo duty chargeable at 20 per cent of bingo promotion profits), for “20” substitute “10”.
The amendment made by subsection (1) has effect in relation to accounting periods beginning on or after 30 June 2014.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In paragraph 5(1) of Schedule 3 to BGDA 1981 (exemptions from bingo duty for small-scale amusements provided commercially), for paragraph (b) substitute—.
The amendment made by this section has effect in relation to games of bingo which begin to be played on or after the day on which this Act is passed.
Schedule 24 to FA 2012 is amended as follows.
For paragraph 5 substitute—
For paragraph 6(2) substitute—
For paragraph 9 substitute—
The Machine Games Duty (Types of Machine) Order 2014 (S.I. 2014/47) is revoked.
The amendments and revocation made by this section have effect in relation to the playing of machine games on or after 1 March 2015.
A duty of excise, to be known as general betting duty, is charged in accordance with this Chapter.
A bet is a general bet for the purposes of this Part if—
it is not an on-course bet,
it is not a spread bet,
it is not a remote bet,
it is not made by way of pool betting, and
one or more of conditions A to C is met in relation to it.
Condition A is that the person who makes the bet (whether as principal or agent) does so while present at a place in the United Kingdom where betting facilities are provided in the course of a business and the bet is made using those facilities.
Condition B is that—
the person who makes the bet as principal is a UK person, and
the bet is not an excluded bet.
Condition C is that—
the person who makes the bet as principal is a body corporate not legally constituted in the United Kingdom,
the bookmaker with whom the bet is made knows or has reasonable cause to believe that at least one potential beneficiary of any winnings from the bet is a UK person, and
the bet is not an excluded bet.
General betting duty is charged on a general bet made with a bookmaker.
It is charged at the rate of 15% of the bookmaker's profits on general bets for an accounting period.
The bookmaker's profits on general bets for an accounting period are the aggregate of—
the amount of the bookmaker's ordinary profits for the period in respect of general bets (calculated in accordance with section 131), and
the amount of the bookmaker's retained winnings profits for the period in respect of general bets (calculated in accordance with section 132).
Where the calculation for an accounting period under subsection (3) produces a negative amount—
the bookmaker's profits on general bets for the accounting period are treated as nil, and
the amount produced by the calculation may be carried forward in reduction of the bookmaker's profits on general bets for one or more later accounting periods.
A bet is a spread bet for the purposes of this Part if it constitutes a contract the making or accepting of which is a regulated activity within the meaning of section 22 of the Financial Services and Markets Act 2000.
In this Part—
“tax advantage” has the meaning given by section 234(3) (but see also section 281A);
In section 102 of FA 2012 (policy holders' rate of tax on policyholders' share of I-E profit), omit subsection (5).
Section 153 (applications for registration) is amended as follows. In subsection (4) for “On” substitute “Following”. In subsection (5) for paragraphs (a) and (b) substitute— After subsection (5) insert—
Section 172A (payments by registered pension schemes: surrender) is amended as follows. In subsection (5) omit paragraph (d). After subsection (5) insert—
Chapter 6 of Part 7 of ITEPA 2003 (employment income: income and exemptions relating to securities: share incentive plans) is amended as follows.
This Part is treated as having come into force on 6 April 2014.
Section 281 of ITA 2007 (withdrawal of VCT approval of a company) is amended as follows. In subsection (1), omit the “or” at the end of paragraph (d) and after paragraph (e) insert— After that subsection insert— The amendments made by this paragraph have effect in relation to shares issued on or after 6 April 2014. In section 281(1)(f)(i) or (iii) of ITA 2007 references to a company’s share capital do not include so much (if any) of its share capital as consists of shares issued before 6 April 2014.
In sub-paragraph (2) “any other penalty” does not include a penalty under Part 4 of FA 2014 (penalty where corrective action not taken after follower notice etc).
A person who fails to comply with a duty imposed by or under this Part mentioned in column 1 of the Table is liable to a penalty not exceeding the amount shown in relation to that provision in column 2 of the Table. Column 1 Column 2 Provision Maximum penalty (£) Section 249(1) (duty to notify clients of monitoring notice) 5,000 Section 249(3) (duty to publicise monitoring notice) 1,000,000 Section 249(10) (duty to include information on correspondence etc) 1,000,000 Section 251 (duty of promoter to notify clients and intermediaries of reference number) 5,000 Section 252 (duty of those notified to notify others of promoter’s number) 5,000 Section 253 (duty to notify HMRC of reference number) the relevant amount (see sub-paragraph (3)) Section 255 (duty to provide information or produce document) 1,000,000 Section 257 (ongoing duty to provide information or produce document) 1,000,000 Section 258 (duty of person dealing with non-resident promoter) 1,000,000 Section 259 (monitored promoter: duty to provide information about clients) 5,000 Section 260 (intermediaries: duty to provide information about clients) 5,000 Section 261 (duty to provide information about clients following an enquiry) 10,000 Section 262 (duty to provide information required to monitor compliance with conduct notice) 5,000 Section 263 (duty to provide information about address) 5,000 Section 265 (duty to provide information to promoter) 5,000 In relation to a failure to comply with section 249(1), 251, 252, 259 or 260 the maximum penalty specified in column 2 of the Table is a maximum penalty which may be imposed in respect of each person to whom the failure relates. In relation to a failure to comply with section 253, the “relevant amount” is— The amount of a penalty imposed under sub-paragraph (1) is to be arrived at after taking account of all relevant considerations, including the desirability of setting it 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)—
If it appears to the Treasury that there has been a change in the value of money since the last relevant date, they may by regulations substitute for the sums for the time being specified in paragraph 2, 3 or 4 such other sums as appear to them to be justified by the change. Regulations under sub-paragraph (1) may include any amendment of paragraph 10(b) that is appropriate in consequence of an amendment made by virtue of sub-paragraph (1). The “relevant date”, in relation to a specified sum, means—
A failure to do anything required to be done within a limited period of time does not give rise to liability to a penalty under this Schedule if the person did it within such further time, if any, as an officer of Revenue and Customs or the tribunal may have allowed.
A penalty under this Schedule is to carry interest at the rate applicable under section 178 of FA 1989 from the date it is determined until payment. In section 178 of FA 1989 (setting of rates of interest), in subsection (2) at the end of paragraph (t) insert , and
For the purposes of this Schedule a person (“P”) is a “controlling member” of a partnership at any time when the person has a right to a share of more than half the assets, or of more than half the income, of the partnership. For that purpose there are to be attributed to P any interests or rights of— An individual is “connected” with P if the individual is— In sub-paragraph (3) “relative” means brother, sister, ancestor or lineal descendant. P controls a body corporate (“B”) if P has power to secure— that the affairs of B are conducted in accordance with P’s wishes.
After section 153 insert—
In section 207 (authorised surplus payments charge) after subsection (6) insert—
In the title omit “Approved”.
The amendments made by paragraph 217 above have no effect in relation to options granted before 6 April 2014.
In section 322 of ITA 2007 (power to facilitate mergers of VCTs: provision that may be made by regulations), after subsection (5) insert—
After section 156 insert—
The amendments made by paragraphs 10 and 11 have effect in relation to surrenders (or agreements to surrender) made on or after 20 March 2014.
Section 488 (introduction to share incentive plans) is amended as follows. In the heading omit “Approved”. In subsection (1)— Omit subsection (2). In subsection (4)—
The amendment made by paragraph 218 above has effect so as to require returns for the tax year 2014-15 and subsequent tax years. It has effect in relation to companies whose qualifying option periods begin before 6 April 2014 (as well as those whose qualifying option periods begin on or after that date). It does not affect the duty of a company to deliver a return for a tax year earlier than the tax year 2014-15 in accordance with paragraph 52 of Schedule 5 to ITEPA 2003 as that paragraph stood before its substitution; and the effect of the amendment made by paragraph 221 above is limited accordingly. In paragraphs 57B(1) and 57C(1) of Schedule 5 to ITEPA 2003 (as inserted by paragraph 220 above) the reference to a return is to a return under paragraph 52 of that Schedule as substituted.
The amendments made by paragraphs 2 to 4 are treated as having come into force on 20 March 2014 and have effect in relation to applications made on or after that date. In relation to an application made before 1 September 2014, section 153(5) of FA 2004 (as amended by paragraph 2(3)) has effect with the omission of paragraph (g).
Section 489 (operation of tax advantages) is amended as follows. In the heading for “approved” substitute “Schedule 2”. In subsection (1) for “an approved” substitute “a Schedule 2”.
The amendment made by paragraph 219(3) above does not affect a reasonable excuse which began before 6 April 2014.
In section 498 (no charge on shares ceasing to be subject to plan in certain circumstances) in subsection (9)(b) for “an approved” substitute “a Schedule 2”.
Section 500 (operation of tax charges) is amended as follows. In the heading for “approved” substitute “Schedule 2”. In subsection (1) for “an approved” substitute “a Schedule 2”.
In section 503 (charge on partnership share money) in subsection (2), in the entry for paragraph 56, for “withdrawal of plan approval” substitute “plan ceasing to be a Schedule 2 SIP”.
Section 506 (charge on partnership shares ceasing to be subject to plan) is amended as follows. In subsection (2) for “market value of the shares at the exit date” substitute “relevant amount”. After subsection (2) insert— After subsection (3) insert—
In section 509 (modification of section 696) in subsection (1)(a) for “an approved” substitute “a Schedule 2”.
In section 510 (payments by trustees) in subsection (1) for “an approved” substitute “a Schedule 2”.
In section 511 (deductions to be made by trustees) in subsection (1) for “an approved” substitute “a Schedule 2”.
In section 515 (tax advantages and charges under other Acts) in subsection (2)(a) and (d) for “an approved” substitute “a Schedule 2”.
Schedule 2 is amended as follows.
In the title omit “Approved”.
In the cross-heading before paragraph 1 for “Approval of” substitute “Introduction to Schedule 2”.
Paragraph 1 (introduction) is amended as follows. For the purposes of the SIP code a share incentive plan (a “SIP”) is a Schedule 2 SIP if the requirements of Parts 2 to 9 of this Schedule are met in relation to the SIP. Sub-paragraph (A1) is subject to Part 10 of this Schedule which—
In the cross-heading before paragraph 6 omit “for approval”.
Paragraph 6 (general requirements for SIPs) is amended as follows. Make the existing text sub-paragraph (1). The requirements of this Part are also to be taken to include the requirements of paragraphs 89 and 90 (plan termination notices etc).
Paragraph 7 (the purpose of the plan) is amended as follows. In sub-paragraph (1)— The plan must not provide benefits to employees otherwise than in accordance with this Schedule. For example, the plan must not provide cash to employees as an alternative to shares. Sub-paragraph (1A) does not prohibit an employee receiving a benefit from a company as a result of any shares in that company being held on the employee’s behalf under the plan where the employee would have received the same benefit from the company had the shares been acquired by the employee otherwise than by virtue of the plan. Omit sub-paragraph (2).
In paragraph 18 (requirement not to participate in other SIPs) in sub-paragraph (1) for “approved” substitute “Schedule 2”.
In paragraph 18A (participation in more than one connected SIP) in sub-paragraph (1) for “approved” substitute “Schedule 2”.
In paragraph 37 (holding period: power of participant to direct trustees) in sub-paragraph (3)(b) for “an approved” substitute “a Schedule 2”.
Partnership shares may (notwithstanding sub-paragraph (2A) if relevant) be subject to provision requiring partnership shares acquired on behalf of an employee to be offered for sale but only if the requirement of sub-paragraph (2C) is met. The consideration at which the shares are required to be offered for sale must be at least equal to—
In the cross-heading before paragraph 56 for “withdrawal of approval” substitute “plan ceasing to be a Schedule 2 SIP”.
Paragraph 56 (repayment of partnership share money) is amended as follows. In sub-paragraph (1) for “approval of the plan is withdrawn (see paragraph 83)” substitute “plan is not to be a Schedule 2 SIP by virtue of paragraph 81H or 81I”. In sub-paragraph (2) for the words from “notice” to the end substitute “the relevant day”. If the plan is not to be a Schedule 2 SIP by virtue of paragraph 81H, in sub-paragraph (2) “the relevant day” means— If the plan is not to be a Schedule 2 SIP by virtue of paragraph 81I, in sub-paragraph (2) “the relevant day” means—
Paragraph 65 (general requirements as to dividend shares) is amended as follows. Make the existing text sub-paragraph (1). Dividend shares may (notwithstanding sub-paragraph (1)(b) if relevant) be subject to provision requiring dividend shares acquired on behalf of an employee to be offered for sale but only if the requirement of sub-paragraph (3) is met. The consideration at which the shares are required to be offered for sale must be at least equal to—
In paragraph 71A (duty to monitor participants) for “approved” substitute “Schedule 2”.
For Part 10 substitute—
In paragraph 89 (termination of plan) in sub-paragraph (2) omit paragraph (a).
In paragraph 90 (effect of plan termination notice) in sub-paragraph (2) for “awarded to” substitute “appropriated to, or acquired on behalf of,”.
Paragraph 93 (power to require information) is amended as follows. An officer of Revenue and Customs may by notice require a person to provide the officer with any information— In sub-paragraph (2)(a)—
In paragraph 100 (index of defined expressions)—
omit the entries for “approval” and “approved”, and
Schedule 2 SIP paragraph 1 and Part 10 of this Schedule
The Commissioners may by regulations provide that a specified matter—
is to be treated as a financial matter for the purposes of subsection (2), or
is not to be treated as a financial matter for those purposes.
General betting duty is charged on a remote bet made with a bookmaker.
It is charged at the rate of 25% of the bookmaker’s profits on remote bets for an accounting period.
The bookmaker’s profits on remote bets for an accounting period are the aggregate of—
the amount of the bookmaker’s ordinary profits for the period in respect of remote bets (calculated in accordance with section 131), and
the amount of the bookmaker’s retained winnings profits for the period in respect of remote bets (calculated in accordance with section 132).
Where the calculation for an accounting period under subsection (3) produces a negative amount—
the bookmaker’s profits on remote bets for the accounting period are treated as nil, and
the amount produced by the calculation may be carried forward in reduction of the bookmaker’s profits on remote bets for one or more later accounting periods.
A bet is a remote bet for the purposes of this Part if—
it is made using remote communication,
it is not an on-course bet, a spread bet or made by way of pool betting,
it is not made using a self-service betting terminal, and
condition B or C in section 126 is met in relation to it.
The reference here to “remote communication” is to communication using—
the internet,
telephone,
television,
radio, or
any other kind of electronic or other technology for facilitating communication.
A bet is to be treated as not being a remote bet for the purposes of this Part if it is made wholly in relation to horse racing taking place in the United Kingdom.
In this section, “self-service betting terminal” means a machine which—
is designed or adapted for use to bet on future real events,
is not a gaming machine (within the meaning of section 235 of the Gambling Act 2005), and
is located on premises in respect of which there is a betting premises licence (within the meaning of section 150(1)(e) of the Gambling Act 2005) or a bookmaking office licence (within the meaning of Article 2(2) of the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985 (S.I. 1985/1204)).
The Treasury may by regulations amend subsection (6).
General betting duty is charged on a financial spread bet made with a bookmaker who is in the United Kingdom.
It is charged at the rate of 3% of the bookmaker's profits on financial spread bets for an accounting period.
The bookmaker's profits on financial spread bets for an accounting period are the aggregate of—
the amount of the bookmaker's ordinary profits for the period in respect of financial spread bets (calculated in accordance with section 131), and
the amount of the bookmaker's retained winnings profits for the period in respect of financial spread bets (calculated in accordance with section 132).
Where the calculation for an accounting period under subsection (3) produces a negative amount—
the bookmaker's profits on financial spread bets for the accounting period are treated as nil, and
the amount produced by the calculation may be carried forward in reduction of the bookmaker's profits on financial spread bets for one or more later accounting periods.
General betting duty is charged on a non-financial spread bet made with a bookmaker who is in the United Kingdom.
It is charged at the rate of 10% of the bookmaker's profits on non-financial spread bets for an accounting period.
The bookmaker's profits on non-financial spread bets for an accounting period are the aggregate of—
the amount of the bookmaker's ordinary profits for the period in respect of non-financial spread bets (calculated in accordance with section 131), and
the amount of the bookmaker's retained winnings profits for the period in respect of non-financial spread bets (calculated in accordance with section 132).
Where the calculation for an accounting period under subsection (3) produces a negative amount—
the bookmaker's profits on non-financial spread bets for the accounting period are treated as nil, and
the amount produced by the calculation may be carried forward in reduction of the bookmaker's profits on non-financial spread bets for one or more later accounting periods.
Take the following steps to calculate the amount of a bookmaker's ordinary profits in respect of a class of bets for an accounting period. Step 1 Calculate the aggregate of the stake money falling due to the bookmaker in the accounting period in respect of bets of that class made with the bookmaker. Step 2 Calculate the aggregate of the amounts paid by the bookmaker in that period by way of winnings to persons who made bets of that class with the bookmaker (irrespective of when the bets were made or determined). Step 3 Subtract the amount calculated under Step 2 from the amount calculated under Step 1.
The amount of a bookmaker's retained winnings profits in respect of a class of bets for an accounting period is the aggregate of amounts which cease to be qualifying amounts in the accounting period.
An amount is a qualifying amount for the purposes of this section if, as a result of a person (“P”) being notified as mentioned in section 140(2)(b), it has been taken into account in calculating the bookmaker's ordinary profits for bets of that class in any accounting period.
An amount ceases to be a qualifying amount for the purposes of this section if, otherwise than by virtue of being withdrawn by P as mentioned in section 140(2)(b), P ceases to be entitled to withdraw it.
The Commissioners may by notice published by them direct that subsection (3) is not to apply in a specified case or class of cases.
This section applies where—
one person (the “bettor”) makes a bet with another person (the “bet-taker”) using facilities provided in the course of a business, other than a betting exchange business, by a third person (the “bet-broker”), or
one person (the “bet-broker”) in the course of a business makes a bet with another person (the “bet-taker”) as the agent of a third person (the “bettor”) (whether the bettor is a disclosed principal or an undisclosed principal).
For the purposes of sections 126 to 132—
the bet is to be treated as if it were made separately by the bettor with the bet-broker and by the bet-broker with the bet-taker,
the bet-broker is to be treated as a bookmaker in respect of the bet,
the aggregate of amounts due to be paid by the bettor in respect of the bet is to be treated as being due separately to the bet-broker and to the bet-taker (and any amount due to be paid by the bet-broker to the bet-taker is to be disregarded), and
a sum paid by the bet-taker by way of winnings in respect of the bet is to be treated as having been paid separately by the bet-taker and by the bet-broker at that time and for that purpose (and any sum paid by the bet-broker is to be disregarded).
Where there is any doubt as to which of two persons is the bettor and which the bet-taker for the purposes of subsection (1)(a), whichever of the two was the first to use the facilities of the bet-broker to offer the bet is to be treated as the bet-taker.
In this section “betting exchange business” means a business such as is mentioned in section 141(1).
A bet is a “Chapter 1 pool bet” for the purposes of this Part if—
it relates only to horse racing or dog racing,
it is not an on-course bet,
it is made by way of pool betting, and
one or more of conditions A to C is met in relation to it.
Condition A is that the person who makes the bet (whether as principal or agent) does so while present at a place in the United Kingdom where betting facilities are provided in the course of a business and the bet is made using those facilities.
Condition B is that—
the person who makes the bet as principal is a UK person, and
the bet is not an excluded bet.
Condition C is that—
the person who makes the bet as principal is a body corporate not legally constituted in the United Kingdom,
the bookmaker with whom the bet is made knows or has reasonable cause to believe that at least one potential beneficiary of any winnings from the bet is a UK person, and
the bet is not an excluded bet.
A Chapter 1 pool bet is a “pooled stake Chapter 1 pool bet” for the purposes of this Part if all or any part of the stake money on the bet is assigned by or on behalf of the bookmaker with whom it is made to a fund (referred to in this Part as a “Chapter 1 stake fund”) from which winnings are to be paid in respect of pool betting.
A Chapter 1 pool bet is an “ordinary Chapter 1 pool bet” for the purposes of this Part if it is not a pooled stake Chapter 1 pool bet.
General betting duty is charged on a Chapter 1 pool bet made with a bookmaker.
It is charged at the rate of 15% of the bookmaker's profits on Chapter 1 pool bets for an accounting period.
The bookmaker's profits on Chapter 1 pool bets for an accounting period are the aggregate of—
the amount of the bookmaker's profits for the period in respect of pooled stake Chapter 1 pool bets (calculated in accordance with section 136), and
the amount of the bookmaker's profits for the period in respect of ordinary Chapter 1 pool bets (calculated in accordance with section 137), and
the amount of the bookmaker's profits for the period in respect of retained winnings on Chapter 1 pool bets (calculated in accordance with section 138).
Where the calculation for an accounting period under subsection (3) produces a negative amount—
the bookmaker's profits on Chapter 1 pool bets for the accounting period are treated as nil, and
the amount produced by the calculation may be carried forward in reduction of the bookmaker's profits on Chapter 1 pool bets for one or more later accounting periods.
Take the following steps to calculate the amount of a bookmaker's profits for an accounting period in respect of pooled stake Chapter 1 pool bets. Step 1 Take the aggregate of the relevant stake money falling due to the bookmaker in the accounting period and deduct the aggregate of any of that stake money that is assigned by or on behalf of the bookmaker to Chapter 1 stake funds during the period. Step 2 If in the accounting period any amount contained in a Chapter 1 stake fund to which relevant stake money has been assigned by or on behalf of the bookmaker is used otherwise than to provide winnings to persons who made bets by way of pool betting, multiply each amount so used in the accounting period by the relevant proportion that applies in relation to it. Step 3 Add the aggregate of the amounts calculated under Step 2 to the amount calculated under Step 1. Step 4 If in the accounting period any top-up payment is assigned to a Chapter 1 stake fund by the bookmaker, multiply the amount of each top-up payment so assigned in the accounting period by the appropriate proportion that applies in relation to it. Step 5 Subtract the aggregate of the amounts calculated under Step 4 from the amount calculated under Step 3.
For the purposes of Step 2 the relevant proportion, in relation to any amount which is used otherwise than to provide winnings, is—
if the amount relates to bets on a specific event, the proportion of that amount that consists of relevant stake money that fell due to the bookmaker in respect of the bets,
if the amount does not relate to bets on a specific event but relates to amounts assigned to the fund during a specific period, the proportion of that amount that consists of relevant stake money assigned to the fund by or on behalf of the bookmaker during that period, and
in any other case, the proportion of the total amount contained in the fund immediately before the amount is so used which consists of relevant stake money assigned to the fund by or on behalf of the bookmaker.
For the purposes of Step 4—
a top-up payment is assigned to a Chapter 1 stake fund if the bookmaker assigns an amount (other than stake money on a bet) to the fund to satisfy a guarantee given by the bookmaker that a specified minimum amount of winnings will be available in respect of bets made with the bookmaker, and
the appropriate proportion, in relation to such a payment, is the proportion determined in accordance with a notice published by the Commissioners.
A notice under subsection (3)(b) may provide for top-up payments to be ignored for the purposes of Step 4 in a specified case or class of cases.
In this section “relevant stake money” means stake money in respect of a pooled stake Chapter 1 pool bet.
To calculate the amount of a bookmaker's profits for an accounting period in respect of ordinary Chapter 1 pool bets—
take the aggregate of the stake money falling due to the bookmaker in the accounting period in respect of such bets, and
subtract the aggregate of the expenditure by or on behalf of the bookmaker for the period on winnings in respect of such bets.
The amount of a bookmaker's profits for an accounting period in respect of retained winnings on Chapter 1 pool bets is the aggregate of the amounts which cease to be qualifying amounts in the accounting period.
An amount is a qualifying amount for the purposes of this section if, as a result of a person (“P”) being notified as mentioned in section 140(2)(b), it has been taken into account in calculating the bookmaker's profits for any accounting period under section 136 or 137.
An amount ceases to be a qualifying amount for the purposes of this section if, otherwise than by virtue of being withdrawn from the account by P as mentioned in section 140(2)(b), P ceases to be entitled to withdraw it.
The Commissioners may by notice published by them direct that subsection (3) is not to apply in a specified case or class of cases.
For the purposes of this Chapter the stake money on a bet is the aggregate of the amounts which fall due in respect of the bet.
If the stake money falls due to a person other than the bookmaker with whom the bet is made, it is to be treated as falling due to the bookmaker.
Where the bet is not a spread bet and the sum which the person who makes the bet will lose if unsuccessful is known when the bet is made, that sum is to be treated as falling due when the bet is made (irrespective of when it is actually paid or required to be paid).
Where the person who makes the bet does so in pursuance of an offer which permits the person to pay nothing or less than the amount which the person would have been required to pay without the offer, the person is to be treated as being due to pay that amount—
to the bookmaker with whom the bet is made, and
at the time when the bet is made.
All payments made— are to be treated as amounts due in respect of the bet except so far as the contrary is proved by the bookmaker whose profits on the bet are being calculated.
for or on account of or in connection with the bet,
in addition to amounts falling due in respect of the bet, and
by the person making the bet,
In calculating any amount falling due in respect of the bet, no deduction is to be made in respect of—
any other benefit secured by the person who makes the bet as a result of paying the money,
a person's expenses, whether in paying duty or otherwise, or
any other matter.
Only winnings in the form of money are to be taken into account when determining for the purposes of this Chapter what are winnings on a bet.
For those purposes, winnings on a bet include—
the return of a stake on the bet, and
any winnings on the bet held in an account for a person (“P”) if P is notified that the amount is being held in the account and may be withdrawn by P on demand.
The Commissioners may by regulations make provision as to when, for the purposes of any calculation under this Chapter—
winnings are to be treated as paid or provided, and
expenditure on winnings is to be treated as incurred.
This section applies where—
one person makes a bet with another person using facilities provided by a third person in the course of a business, and
that business is one that does not involve the provision of premises for use by persons making or taking bets.
General betting duty is charged on the amounts (“commission charges”) that any party to the bet who is a UK person is charged, whether by deduction from winnings or otherwise, for using those facilities.
No deductions are allowed from commission charges.
The amount of duty charged under this section in respect of bets determined in an accounting period is 15% of the commission charges relating to those bets.
Where a person arranges for facilities relating to a bet to be provided by another person, the facilities are to be treated for the purposes of this section and section 142(4) as provided by the person who makes the arrangements instead of by the person who provides the facilities.
For the purposes of this section it does not matter—
whether the bet is made in the United Kingdom or elsewhere;
whether the facilities are in the United Kingdom or elsewhere.
All general betting duty chargeable in respect of— becomes due at the end of that period.
bets made in an accounting period, or
in the case of duty chargeable under section 141, bets determined in an accounting period,
In the case of bets made with a bookmaker in an accounting period the general betting duty is to be paid—
when it becomes due, and
by the bookmaker.
But general betting duty which is due to be paid by a bookmaker in respect of bets may be recovered from the following persons as if they and the bookmaker were jointly and severally liable to pay the duty—
the holder of any licence which authorises—
the provision of facilities for betting by the business in the course of which the bets were made, or
betting at the place where the bets were made;
a person responsible for the management of the business mentioned in paragraph (a)(i);
where the bookmaker is a company, a director.
In the case of bets made in an accounting period by means of facilities provided by a person as described in section 141 the general betting duty is to be paid—
when it becomes due, and
by the person who provides the facilities.
A bet is a Chapter 2 pool bet for the purposes of this Part if—
it is not made wholly in relation to horse racing or dog racing,
it is not made for community benefit,
it does not constitute the taking of a ticket or chance in a lottery,
it is made by way of pool betting, and
one or more of conditions A to C is met in relation to it.
Condition A is that the person who makes the bet (whether as principal or agent) does so while present at a place in the United Kingdom where betting facilities are provided in the course of a business and the bet is made using those facilities.
Condition B is that—
the person who makes the bet as principal is a UK person, and
the bet is not an excluded bet.
Condition C is that—
the person who makes the bet as principal is a body corporate not legally constituted in the United Kingdom,
the bookmaker with whom the bet is made knows or has reasonable cause to believe that at least one potential beneficiary of any winnings from the bet is a UK person, and
the bet is not an excluded bet.
A Chapter 2 pool bet is a “pooled stake Chapter 2 pool bet” for the purposes of this Part if all or any part of the stake money on the bet is assigned by or on behalf of the bookmaker with whom the bet is made to a fund (referred to in this Part as a “Chapter 2 stake fund”) from which winnings are to be paid in respect of pool betting.
A Chapter 2 pool bet is an “ordinary Chapter 2 pool bet” for the purposes of this Part if it is not a pooled stake Chapter 2 pool bet.
A duty of excise, to be known as pool betting duty, is charged on a Chapter 2 pool bet made with a bookmaker.
It is charged at the rate of 15% of the bookmaker's profits on Chapter 2 pool bets for an accounting period.
The bookmaker's profits on Chapter 2 pool bets for an accounting period are the aggregate of—
the amount of the bookmaker's profits for the period in respect of pooled stake Chapter 2 pool bets (calculated in accordance with section 145),
the amount of the bookmaker's profits for the period in respect of ordinary Chapter 2 pool bets (calculated in accordance with section 146), and
the amount of the bookmaker's profits for the period in respect of retained winnings on Chapter 2 pool bets (calculated in accordance with section 147).
Where the calculation for an accounting period under subsection (3) produces a negative amount—
the bookmaker's profits on Chapter 2 pool bets for the accounting period are treated as nil, and
the amount produced by the calculation may be carried forward in reduction of the bookmaker's profits on Chapter 2 pool bets for one or more later accounting periods.
Take the following steps to calculate the amount of a bookmaker's profits for an accounting period in respect of pooled stake Chapter 2 pool bets. Step 1 Take the aggregate of the relevant stake money falling due to the bookmaker in the accounting period and deduct the aggregate of any of that stake money that is assigned by or on behalf of the bookmaker to Chapter 2 stake funds during the period. Step 2 If in the accounting period any amount contained in a Chapter 2 stake fund to which relevant stake money has been assigned by or on behalf of the bookmaker is used otherwise than to provide winnings to persons who made bets by way of pool betting, multiply each amount so used in the accounting period by the relevant proportion that applies in relation to it. Step 3 Add the aggregate of the amounts calculated under Step 2 to the amount calculated under Step 1. Step 4 If in the accounting period any top-up payment is assigned to a Chapter 2 stake fund by the bookmaker, multiply the amount of each top-up payment so assigned in the accounting period by the appropriate proportion that applies in relation to it. Step 5 Subtract the aggregate of the amounts calculated under Step 4 from the amount calculated under Step 3.
For the purposes of Step 2 the relevant proportion, in relation to any amount which is used otherwise than to provide winnings, is—
if the amount relates to bets on a specific event, the proportion of that amount that consists of relevant stake money that fell due to the bookmaker in respect of the bets,
if the amount does not relate to bets on a specific event but relates to amounts assigned to the fund during a specific period, the proportion of that amount that consists of relevant stake money assigned to the fund by or on behalf of the bookmaker during that period, and
in any other case, the proportion of the total amount contained in the fund immediately before the amount is so used which consists of relevant stake money assigned to the fund by or on behalf of the bookmaker.
For the purposes of Step 4—
a top-up payment is assigned to a Chapter 2 stake fund if the bookmaker assigns an amount (other than stake money on a bet) to the fund to satisfy a guarantee given by the bookmaker that a specified minimum amount of winnings will be available in respect of bets made with the bookmaker, and
the appropriate proportion, in relation to such a payment, is the proportion determined in accordance with a notice published by the Commissioners.
A notice under subsection (3)(b) may provide for top-up payments to be ignored for the purposes of Step 4 in a specified case or class of cases.
In this section “relevant stake money” means stake money in respect of a pooled stake Chapter 2 pool bet.
To calculate the amount of a bookmaker's profits for an accounting period in respect of ordinary Chapter 2 pool bets—
take the aggregate of the stake money falling due to the bookmaker in the accounting period in respect of such bets, and
subtract the aggregate of the expenditure by or on behalf of the bookmaker for the period on winnings in respect of such bets.
The amount of a bookmaker's profits for an accounting period in respect of retained winnings on Chapter 2 pool bets is the aggregate of the amounts which cease to be qualifying amounts during the accounting period.
An amount is a qualifying amount for the purposes of this section if, as a result of a person (“P”) being notified as mentioned in section 149(2)(b), it has been taken into account in calculating the bookmaker's profits for any accounting period under section 145 or 146.
An amount ceases to be a qualifying amount for the purposes of this section if, otherwise than by virtue of being withdrawn by P as mentioned in section 149(2)(b), P ceases to be entitled to withdraw it.
The Commissioners may by notice published by them direct that subsection (3) is not to apply in a specified case or class of cases.
For the purposes of this Chapter the stake money on a bet is the aggregate of the amounts which fall due in respect of the bet.
If the stake money falls due to a person other than the bookmaker with whom the bet is made, it is to be treated as falling due to the bookmaker.
Any payment that entitles a person to make the bet is, if the person makes the bet, to be treated as an amount falling due in respect of the bet.
All payments made— are to be treated as amounts due in respect of the bet except so far as the contrary is proved by the bookmaker whose profits on the bet are being calculated.
for or on account of or in connection with the bet,
in addition to amounts falling due in respect of the bet, and
by the person making the bet,
Subsections (6) and (7) apply for the purposes of subsection (1) but have effect subject to any regulations under subsection (8).
Where— any sum due to the bookmaker in respect of the bet is treated as falling due on the day on which the event or events take place.
a person makes a bet, and
the bet relates to a single event, or to two or more events taking place on the same day,
Where— any sum due to the bookmaker in respect of the bet is treated as falling due when the bet is made.
a person makes a bet, and
subsection (6) does not apply,
The Commissioners may by regulations make provision as to when any sum due to the bookmaker in respect of a bet is to be treated as falling due.
Provision made by regulations under subsection (8) may not provide for a sum due to the bookmaker in respect of a bet to be treated as falling due—
earlier than when the bet is made, or
later than when the bet is determined.
Only winnings in the form of money are to be taken into account when determining for the purposes of this Chapter what are winnings on a bet.
For those purposes, winnings on a bet include—
the return of a stake on the bet, and
any winnings on the bet held in an account for a person (“P”) if P is notified that the amount is being held in the account and may be withdrawn by P on demand.
Winnings on a bet for which no stake money fell due are to be ignored for the purposes of any calculation under this Chapter.
The Commissioners may by regulations make provision as to when, for the purposes of any calculation under this Chapter—
winnings are to be treated as paid or provided, and
expenditure on winnings is to be treated as incurred.
Where payments are made for the chance of winning any money or money's worth on terms under which the persons making the payments have a power of selection that may (directly or indirectly) determine the winner, those payments are (subject to section 183) to be treated as bets for the purposes of this Chapter even if the power is not exercised.
Where any payment entitles a person to take part in a transaction that is, on the person's part only, not a bet made by way of pool betting by reason of the person not in fact making any stake as if the transaction were such a bet, the transaction is to be treated as such a bet for the purposes of this Chapter (and section 148(4) applies to any such payment).
Pool betting duty charged on a bookmaker's profits on Chapter 2 pool bets for an accounting period—
becomes due at the end of the period,
is to be paid by the bookmaker, and
is to be paid when it becomes due.
Pool betting duty that is due to be paid may be recovered from the following persons as if they were jointly and severally liable to pay the duty—
the bookmaker;
a person responsible for the management of any business in the course of which any bets have been made that are Chapter 2 pool bets for the purposes of the calculation of the amount of the bookmaker's profits on Chapter 2 pool bets for any accounting period;
a person responsible for the management of any totalisator used for the purposes of any such business;
where a person within any of paragraphs (a) to (c) is a company, a director.
Where a bookmaker relies for the purposes of pool betting duty on the fact that a bet is not a Chapter 2 pool bet by virtue of being made for community benefit, the bookmaker must inform the Commissioners of that fact.
The Commissioners may by notice published by them—
specify the manner in which, and the time at which, the Commissioners are to be informed as mentioned in subsection (1), and
direct that subsection (1) is not to apply in a specified case or class of cases.
For the purposes of this Part (but subject to any direction under subsection (3)), a bet is made “for community benefit” if—
the promoter of the betting concerned is a community society or is bound to pay all benefits accruing from the betting to such a society, and
the person making the bet knows, when making it, that the purpose of the betting is to benefit such a society.
In the case of a bet made by means of a totalisator, the reference in subsection (1) to the promoter of the betting concerned is a reference to the operator.
The Commissioners may direct that any bet specified by the direction, or of a description so specified, is not a bet made for community benefit.
The power conferred by subsection (3) may not be exercised unless the Commissioners consider that an unreasonably large part of the amounts paid in respect of the bets concerned will, or may, be applied otherwise than—
in the payment of winnings, or
for the benefit of a community society.
In this section “community society” means—
a society established and conducted for charitable purposes only, or
a society established and conducted wholly or mainly for the support of athletic sports or athletic games and not established or conducted for purposes of private or commercial gain.
In this section “society” includes any club, institution, organisation or association of persons, by whatever name called.
For the purposes of this Part “remote gaming” is gaming in which persons participate by the use of—
the internet,
telephone,
television,
radio, or
any other kind of electronic or other technology for facilitating communication.
Remote gaming is “pooled prize gaming” for the purposes of this Part if all or any part of the gaming payment is assigned by or on behalf of the gaming provider to a fund (referred to in this Part as a “gaming prize fund”) from which prizes are to be provided to participants in the gaming.
Remote gaming is “ordinary gaming” for the purposes of this Part if it is not pooled prize gaming.
The Treasury may by regulations—
amend the definition of “remote gaming” in subsection (1), ...
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nothing in subsection (4)(b) affects the generality of section 194(1).
A duty of excise, to be known as remote gaming duty, is charged on a chargeable person's participation in remote gaming under arrangements (whether or not enforceable) between the chargeable person and another person (referred to in this Part as a “gaming provider”).
In this Part “chargeable person” means—
any UK person, and
any body corporate not legally constituted in the United Kingdom if the person with whom the arrangements mentioned in subsection (1) are made knows, or has reasonable cause to believe, that at least one potential beneficiary of any prizes from remote gaming under the arrangements is a UK person.
Remote gaming duty is chargeable at the rate of 40% of the gaming provider's profits on remote gaming for an accounting period.
The gaming provider's profits on remote gaming for an accounting period are the aggregate of—
the amount of the provider's profits for the period in respect of pooled prize gaming (calculated in accordance with section 156),
the amount of the provider's profits for the period in respect of ordinary gaming (calculated in accordance with section 157), and
the amount of the provider's profits for the period in respect of retained prizes (calculated in accordance with section 158).
Where the calculation for an accounting period under subsection (4) produces a negative amount—
the gaming provider's profits on remote gaming for the accounting period are treated as nil, and
the amount produced by the calculation may be carried forward in reduction of the gaming provider's profits on remote gaming for one or more later accounting periods.
Take the following steps to calculate the amount of a gaming provider's profits for an accounting period in respect of pooled prize gaming. Step 1 Take the aggregate of the relevant gaming payments made to the provider in the accounting period and deduct the aggregate of any of those payments that are assigned by or on behalf of the provider to gaming prize funds during the period. Step 2 If in the accounting period any amount contained in a gaming prize fund to which relevant gaming payments have been assigned by or on behalf of the provider is used otherwise than to provide prizes to participators in pooled prize gaming, multiply each amount so used in the accounting period by the relevant proportion that applies in relation to it. Step 3 Add the aggregate of the amounts calculated under Step 2 to the amount calculated under Step 1. Step 4 If in the accounting period any top-up payment is assigned to a gaming prize fund by the gaming provider, multiply the amount of each top-up payment so assigned in the accounting period by the appropriate proportion that applies in relation to it. Step 5 Subtract the aggregate of the amounts calculated under Step 4 from the amount calculated under Step 3.
For the purposes of Step 2 the relevant proportion, in relation to any amount which is used otherwise than to provide prizes, is—
if the amount relates to a specific game of chance, the proportion of that amount that consists of relevant gaming payments made to the provider in respect of that game,
if the amount does not relate to a specific game of chance but relates to amounts assigned to the fund during a specific period, the proportion of that amount that consists of relevant gaming payments assigned to the fund by or on behalf of the provider during that period, and
in any other case, the proportion of the total amount contained in the fund immediately before the amount is so used which consists of relevant gaming payments assigned to the fund by or on behalf of the provider.
For the purposes of Step 4—
a top-up payment is assigned to a gaming prize fund if the gaming provider assigns an amount (other than a gaming payment) to the fund to satisfy a guarantee given by the gaming provider that prizes of a specified minimum amount will be available in respect of gaming under arrangements made with the provider, and
the appropriate proportion, in relation to such a top-up payment, is the proportion determined in accordance with a notice published by the Commissioners.
A notice under subsection (3)(b) may provide for top-up payments to be ignored for the purposes of Step 4 in a specified case or class of cases.
In this section “relevant gaming payment” means a gaming payment in respect of pooled prize gaming.
To calculate the amount of a gaming provider's profits for an accounting period in respect of ordinary gaming—
take the aggregate of the gaming payments made to the provider in the accounting period in respect of ordinary gaming, and
subtract the amount of the provider's expenditure for the period on prizes in respect of such gaming.
The amount of the gaming provider's expenditure on prizes for an accounting period in respect of ordinary gaming is the aggregate of the value of prizes provided by or on behalf of the provider in that period which have been won (at any time) by chargeable persons participating in ordinary gaming.
The amount of a gaming provider's profits for an accounting period in respect of retained prizes is the aggregate of the amounts which cease to be qualifying amounts during the accounting period.
An amount is a qualifying amount for the purposes of this section if, as a result of a person (“P”) being notified as mentioned in section 160(1), it has been taken into account in calculating the provider's profits for any accounting period under section 156 or 157.
An amount ceases to be a qualifying amount for the purposes of this section if, otherwise than by virtue of being withdrawn by P as mentioned in section 160(1), P ceases to be entitled to withdraw it.
The Commissioners may by notice published by them direct that subsection (3) is not to apply in a specified case or class of cases.
Where a chargeable person participates in remote gaming, the “gaming payment” for the purposes of this Chapter is the aggregate of—
any amount that entitles the person to participate in the gaming, and
any other amount payable for or on account of or in connection with the person's participation in the gaming.
If the gaming payment is made to a person other than the gaming provider, it is to be treated for the purposes of this Chapter as made to the gaming provider.
If the gaming payment has not been made at the time when the chargeable person begins to participate in the remote gaming to which it relates, it is to be treated for the purposes of this Chapter as being made at that time.
For the purposes of this Chapter—
where the chargeable person participates in the remote gaming in reliance on an offer which waives all of a gaming payment, the person is to be treated as having made a gaming payment of the amount which would have been required to be paid without the offer (“the full amount”), and
where the chargeable person participates in the remote gaming in reliance on an offer which waives part of a gaming payment, the person is to be treated as having made an additional gaming payment of the difference between the gaming payment actually made and the full amount.
Where a person is treated by subsection (4) as having made a gaming payment, the payment is to be treated for the purposes of this Chapter—
as having been made to the gaming provider at the time when the chargeable person begins to participate in the remote gaming to which it relates, and
as not having been—
returned, or
assigned to a gaming prize fund.
The Commissioners may by regulations make further provision about how a gaming payment which a person is treated as having made under subsection (4) is to be treated for the purposes of this Chapter.
This section has effect subject to section 159A.
A reference in section 156 or 157 to providing a prize to a person includes a reference to crediting money to an account only if the person is notified that—
the money is being held in the account, and
the person is entitled to withdraw it on demand.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The return of all or part of a gaming payment is to be treated for the purposes of sections 156 and 157 as the provision of a prize (but where a gaming payment is returned by being credited to an account this subsection has effect subject to subsection (1)).
Where a prize is obtained by or on behalf of a gaming provider from a person not connected with the person who obtains the prize, the cost to the person who obtains the prize is to be treated as the expenditure on the prize for the purposes of sections 156 and 157.
Where a prize is a voucher which— the specified amount is the value of the voucher for the purposes of sections 156 and 157.
may be used in place of money as whole or partial payment for benefits of a specified kind obtained from a specified person,
specifies an amount as the sum or maximum sum in place of which the voucher may be used, and
does not fall within subsection (4),
Where a prize is a voucher (whether or not it falls within subsection (4)) no expenditure is to be treated as having been incurred on the prize for the purposes of sections 156 and 157 if—
it does not satisfy subsection (5)(a) and (b), or
its use as described in subsection (5)(a) is subject to a specified restriction, condition or limitation which may make the value of the voucher to the recipient significantly less than the amount mentioned in subsection (5)(b).
In the case of a prize which is neither money nor a voucher and which does not fall within subsection (4), the expenditure on the prize for the purposes of sections 156 and 157 is—
the amount which the prize would cost if obtained from a person not connected with the person who provides it, or
where no amount can reasonably be determined in accordance with paragraph (a), nil.
For the purposes of this section—
a reference to connection between two persons is to be construed in accordance with section 1122 of CTA 2010 (connected persons), and
an amount paid by way of value added tax on the acquisition of a thing is to be treated as part of its cost (irrespective of whether or not the amount is taken into account for the purpose of a credit or refund).
This section has effect subject to section 160A.
Where a chargeable person participates in remote gaming, an amount is not to be taken into account in determining the “gaming payment” (if any) under section 159 so far as the amount is paid out of money in relation to which the first and second conditions are met (“excluded winnings”).
The first condition is that the money has been won by participation in the gaming either—
in reliance on an offer which waives all or part of a gaming payment, or
in a case where the gaming payment was paid out of money in relation to which this condition and the second condition were met.
The second condition is that the chargeable person is not entitled to use the money otherwise than for the purpose of participation in the gaming.
Subsection (5) applies where—
a chargeable person participates in remote gaming in reliance on an offer which waives all or part of a gaming payment, and
that offer has been won in the course of the person's participation in the gaming (and the person was not given the choice of receiving a different benefit instead of the offer).
The amount which would, apart from this subsection, be treated by section 159(4)(a) or (b) as a gaming payment (or additional gaming payment) is not to be so treated.
For the purposes of this section, where a payment is made out of moneys which include both excluded winnings and money which is not excluded winnings (the “other funds”), the payment is not taken to be made out of excluded winnings except so far as the amount of the payment exceeds the amount of those other funds.
In this section “money” includes any amount credited and any other money's worth.
Remote gaming duty is not charged on participation by a chargeable person in remote gaming if—
the arrangements between the chargeable person and the gaming provider are not entered into in or from the United Kingdom, and
the facilities used to participate in the gaming are not capable of being used in or from the United Kingdom.
Remote gaming duty is not charged on participation by a chargeable person in remote gaming so far as the remote gaming—
is charged with another gambling tax, or
would be charged with another gambling tax but for an express exception.
Subsection (2)(b)—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
does not apply in cases where the other gambling tax is machine games duty.
In this section “gambling tax” means—
machine games duty,
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
gaming duty,
general betting duty,
lottery duty, and
pool betting duty.
The Treasury may by regulations—
confer an exemption from remote gaming duty, or
remove or vary (whether or not by textual amendment) an exemption under this section.
Remote gaming duty is not charged on a chargeable person’s participation in remote gaming where the remote gaming in question is the playing in the United Kingdom of a game of—
licensed bingo, or
unlicensed bingo, if at least one other person’s participation in the game does not constitute remote gaming.
In subsection (4A)—
In calculating a gaming provider's profits on remote gaming for an accounting period, no account is to be taken of gaming payments, assignments of amounts to a pool or expenditure on prizes so far as they relate to remote gaming to which an exemption applies as a result of this section or regulations under it.
A gaming provider is liable for any remote gaming duty charged on the provider's profits on remote gaming for an accounting period.
If the gaming provider is a body corporate, the provider and the provider's directors are jointly and severally liable for any remote gaming duty charged on the provider's profits on remote gaming for an accounting period.
Remote gaming duty which is charged on the gaming provider's profits on remote gaming for an accounting period may be recovered from the holder of a remote operating licence for the business in the course of which the gaming took place as if the holder of the licence and the provider were jointly and severally liable to pay the duty.
Where a prize is a freeplay offer (whether or not in the form of a voucher) which does not fall within section 160(4)—
for the purposes of sections 156 and 157, the expenditure on the prize is nil, and
subsections (5) to (7) of section 160 do not apply in relation to the prize.
Where a prize is a voucher which gives the recipient a choice of using it in place of money for freeplay or as whole or partial payment for another benefit, section 160(5)(b) has effect as if after “used” there were inserted “ if it is used as payment for a benefit other than freeplay ”.
In this section—
The Commissioners are responsible for the collection and management of general betting duty, pool betting duty and remote gaming duty.
General betting duty, pool betting duty and remote gaming duty are to be accounted for by such persons, and accounted for and paid at such times and in such manner, as may be required by or under regulations made by the Commissioners.
The Commissioners may make regulations providing for any matter for which provision appears to them to be necessary for the administration or enforcement of, or for the protection of the revenue from, general betting duty, pool betting duty and remote gaming duty.
Nothing in sections 164 to 169 affects the generality of the powers conferred by this section.
The Commissioners must maintain the following registers—
a register of persons who, by virtue of being bookmakers, being treated by section 133 as bookmakers or providing facilities for making bets, are (or may become) liable to pay general betting duty,
a register of persons who, by virtue of being bookmakers, are (or may become) liable to pay pool betting duty, and
a register of persons who, by virtue of entering into arrangements for chargeable persons to participate in remote gaming, are (or may become) liable to pay remote gaming duty.
A person falling within any paragraph of subsection (1) may not carry on an activity by virtue of which the person falls within that paragraph without being registered in the register maintained under that paragraph.
The Commissioners may make regulations about registration; in particular, the regulations may include provision about—
the procedure for applying for registration (including provision requiring applications to be made electronically);
the timing of applications (including provision for applications to be made and determined before 1 December 2014);
the information to be provided;
notification of changes;
de-registration;
re-registration after a person ceases to be registered.
The regulations may require a person registered under this section to give notice to the Commissioners before applying for a remote operating licence.
The regulations may permit the Commissioners to impose conditions or requirements on persons registered under this section.
The regulations may include provision for the registration of groups of persons; and may provide for the modification of provisions of this Part in their application to groups.
The modifications may, for example, include a modification ensuring that each member of a group will be jointly and severally liable for the duty payable by any member of the group.
For the purposes of this Part—
a period of 3 consecutive months is an accounting period, but
the Commissioners may by regulations provide for some other period specified in, or determined in accordance with, the regulations to be an accounting period.
The first day of an accounting period is such day as the Commissioners may direct.
The Commissioners may agree with a person to make either or both of the following changes for the purposes of that person's liability to general betting duty, pool betting duty or remote gaming duty—
to treat specified periods (whether longer or shorter than 3 months) as accounting periods;
to begin accounting periods on days other than those applying by virtue of subsection (2).
The Commissioners may by direction make transitional arrangements for periods (whether of 3 months or otherwise) to be treated as accounting periods where—
a person becomes or ceases to be registered, or
an agreement under subsection (3) begins or ends.
A direction under this section—
may apply generally or only to a particular case or class of case, and
must be published unless it applies only to a particular case.
The Commissioners may make regulations requiring returns to be made to the Commissioners in respect of general betting duty, pool betting duty and remote gaming duty.
The regulations may, in particular, make provision about—
liability to make a return,
timing,
form,
content,
method of making (including provision requiring returns to be made electronically),
declarations,
authentication, and
when a return is to be treated as made.
The Commissioners may by regulations make provision about payment of general betting duty, pool betting duty and remote gaming duty.
The regulations may, in particular, make provision about—
timing (including provision requiring payments to be made on account),
instalments,
methods of payment (including provision requiring payments to be made electronically),
when payment is to be treated as made, and
the process and effect of assessments by the Commissioners of amounts due.
Subject to regulations under section 163 and this section, section 12 of FA 1994 (assessment) applies in relation to liability to pay general betting duty, pool betting duty and remote gaming duty.
The Commissioners may by regulations require the provision to such persons, or display in such manner, of such information or records as the regulations may specify—
by persons engaging or proposing to engage in any activity by reason of which they are, or may be or become, liable for general betting duty, pool betting duty or remote gaming duty (or would be or might be or become liable to general betting duty if on-course bets were not excluded), and
by persons providing facilities for another to engage in such an activity or entering into any transaction in the course of any such activity.
The Treasury may by regulations make provision as to the circumstances in which—
the stake money on a bet is, or is not, to be treated for the purposes of this Part as assigned to a Chapter 1 stake fund or a Chapter 2 stake fund,
gaming payments are, or are not, to be treated for the purposes of this Part as assigned to a gaming prize fund,
an amount contained in a Chapter 1 stake fund or a Chapter 2 stake fund is, or is not, to be treated for the purposes of this Part as being used otherwise than to provide winnings, and
an amount contained in a gaming prize fund is, or is not, to be treated for the purposes of this Part as being used otherwise than to provide prizes.
The Commissioners may by notice published by them make provision about Chapter 1 stake funds, Chapter 2 stake funds and gaming prize funds, and such a notice may (in particular) make provision as to how such funds are to be held.
The Commissioners may by notice given to a registrable person require the person to give security, or further security, for the payment of any general betting duty, pool betting duty or remote gaming duty for which the person is or may become liable.
The Commissioners may give such a notice only if they consider—
that there is a serious risk that the duty will not be paid, or
that the person usually lives in or, if a body corporate, is legally constituted in a country or territory with which the United Kingdom does not have satisfactory arrangements for the enforcement of liabilities.
The notice must specify—
the amount of security or further security to be given, and
the manner in which, and the date by which, the security or further security is to be given.
That date must not be less than 30 days after the date when the notice is given (and must not be before 1 December 2014).
Any requirement imposed by the notice has no effect at any time when—
the registrable person is entitled under Chapter 2 of Part 1 of FA 1994 to require a review of, or to bring an appeal against, the decision to give the notice,
an appeal may ordinarily be brought against a decision on such a review or appeal, or
proceedings on such a review, appeal or further appeal are in progress.
A person is a “registrable person” for the purposes of this Part if the person—
is, or is required to be, registered under section 164, or
has applied for registration under that section.
The Commissioners may by notice given to a registrable person require the person to appoint a United Kingdom representative.
The representative must be a person approved by the Commissioners for the purposes of this section.
The Commissioners may give such a notice only if they consider that the registrable person usually lives in or, if a body corporate, is legally constituted in a country or territory with which the United Kingdom does not have satisfactory arrangements for the enforcement of liabilities.
The notice must specify the date by which the representative must be appointed.
That date must not be less than 30 days after the date when the notice was given (and must not be before 1 December 2014).
It is for the registrable person to decide whether the representative is to have responsibility—
for making returns in respect of general betting duty, pool betting duty or remote gaming duty on behalf of the registrable person, or
for making such returns and for discharging the registrable person's liability to general betting duty, pool betting duty or remote gaming duty.
The notice may be combined with a notice under section 170, and in such a case any requirement contained in the notice under that section ceases to have effect if the registrable person appoints a representative with the responsibilities mentioned in subsection (6)(b).
Any requirement imposed by the notice has no effect at any time when—
the registrable person is entitled under Chapter 2 of Part 1 of FA 1994 to require a review of, or to bring an appeal against, the decision to give the notice,
an appeal may ordinarily be brought against a decision on such a review or appeal, or
proceedings on such a review, appeal or further appeal are in progress.
A decision to give a notice under section 170(1) or 171(1) is to be treated as a relevant decision for the purposes of sections 15A and 15C to 16 of FA 1994 (customs and excise reviews and appeals) and, accordingly, the notice must include an offer of a review of the decision under section 15A of FA 1994.
Only the registrable person may bring an appeal under section 16 of FA 1994 as applied by subsection (1).
The decision appealed against is to be treated for the purposes of that section as a decision as to an ancillary matter.
Such amendments to the notice as are necessary to give effect to any decision on a review, appeal or further appeal must be made by whichever of the following is appropriate in the case in question—
the Commissioners,
the appeal tribunal, and
the court which has determined an appeal from the appeal tribunal.
An appeal under section 16 of FA 1994 as applied by subsection (1) may not be entertained unless any amount of general betting duty, pool betting duty or remote gaming duty (whether or not it is an amount to which the appeal relates) due from the registrable person at the date when the appeal is brought has been paid.
But an appeal may be entertained despite subsection (5) if, on the application of the registrable person, the Commissioners are satisfied or (the Commissioners not being so satisfied) the appeal tribunal decides that the requirement to pay the duty for which the person is liable would cause the person to suffer hardship.
Despite sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007 (rights of appeal), the decision of the appeal tribunal as to the issue of hardship is final.
In this section “appeal tribunal” has the same meaning as in Chapter 2 of Part 1 of FA 1994.
A person who is, or is required to be, registered under section 164 is guilty of an offence if the person—
is required to give security or further security by a notice under section 170 and does not comply with that requirement, or
is required to appoint a representative by a notice under section 171 and does not comply with that requirement.
A person guilty of an offence under this section is liable, on summary conviction, to—
in England and Wales, a fine, or
in Scotland or Northern Ireland, a fine not exceeding level 5 on the standard scale.
The reference in subsection (2)(a) to a fine is to be read as a reference to a fine not exceeding level 5 on the standard scale in relation to an offence committed before section 85(1) of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 comes into force.
A person commits an offence if the person is knowingly concerned in, or in taking steps with a view to, the fraudulent evasion of general betting duty, pool betting duty or remote gaming duty.
A person guilty of an offence under subsection (1) is liable on summary conviction to—
imprisonment for a term not exceeding 12 months,
a fine not exceeding—
in England and Wales, £20,000 or, if greater, three times the duty which is unpaid or the payment of which is sought to be avoided, or
in Scotland or Northern Ireland, the statutory maximum or, if greater, three times the duty which is unpaid or the payment of which is sought to be avoided, or
both.
A person guilty of an offence under subsection (1) is liable on conviction on indictment to—
imprisonment for a term not exceeding 14 years,
a fine, or
both.
The reference in subsection (2)(a) to 12 months is to be read as a reference to 6 months in relation to an offence committed—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
in Northern Ireland.
In the application of this section in England and Wales, the reference in subsection (2)(a) to 12 months is to be read as a reference to the general limit in a magistrates’ court (or to 6 months in relation to an offence committed before 2 May 2022).
Section 85(1) of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 does not apply in relation to the offence under subsection (1), but where such an offence is committed before section 85(1) comes into force the reference in subsection (2)(b)(i) to £20,000 is to be read as a reference to the statutory maximum.
Where general betting duty, pool betting duty or remote gaming duty is payable by a person, the person's failure to pay attracts a penalty under section 9 of FA 1994, which is to be calculated by reference to the amount of duty payable.
Any such failure to pay as is mentioned in subsection (1) also attracts daily penalties under that section.
Subsection (4) applies to a contravention of—
section 152 or a notice under that section,
section 164 or regulations under that section,
regulations under section 166,
regulations under section 167,
regulations under section 168,
a notice under section 169, or
a notice under section 186.
Such a contravention—
is conduct to which section 9 of FA 1994 applies (penalties), and
attracts daily penalties under that section.
This section applies if an order is made under section 104(3) of FA 2009 appointing a day on which sections 101 to 103 of that Act are to come into force for the purposes of general betting duty, pool betting duty or remote gaming duty.
Interest charged under section 101 of that Act on an amount of such a duty (or an amount enforceable as if it were such a duty) may be enforced as if it were an amount of such a duty payable by the person liable for the amount on which the interest is charged.
Schedule 27 makes provision about the suspension and revocation of remote operating licences.
Where an offence under this Part is committed by a body corporate, every person who at the date of the commission of the offence is a director, general manager, secretary or other similar officer of the body corporate (or purporting to act in such a capacity) is also guilty of the offence unless—
the offence is committed without the person's consent or connivance, and
the person has exercised all such diligence to prevent its commission as the person ought to have exercised, having regard to the nature of the person's functions in that capacity and to all the circumstances.
Where an officer of Revenue and Customs takes any action in pursuance of instructions of the Commissioners given in connection with the enforcement of the enactments relating to general betting duty, pool betting duty or remote gaming duty and, apart from the provisions of this section, the officer would in taking that action be committing an offence under the enactments relating to betting or gaming, the officer is not guilty of that offence.
A certificate of the Commissioners— is sufficient evidence of that fact until the contrary is proved.
that any notice required by or under this Part to be given to them had or had not been given at any date,
that any registration required by or under this Part had or had not been effected at any date,
that any return required by or under this Part had not been made at any date, or
that any duty shown as due in any return made in pursuance of this Part or in any assessment made under section 12 of FA 1994 had not been paid at any date,
A photograph of any document furnished to the Commissioners for the purposes of this Part and certified by them to be such a photograph is admissible in any proceedings, whether civil or criminal, to the same extent as the document itself.
Any document purporting to be a certificate under subsection (1) or (2) is to be treated as being such a certificate until the contrary is proved.
This section applies where, in civil proceedings in any court or tribunal, it is necessary to determine whether the facilities used to make a bet or to participate in remote gaming were capable of being used in or from the United Kingdom.
The burden of proof lies on any person claiming that the facilities were not capable of being so used.
The decisions mentioned in subsection (2) are to be treated as if they were listed in subsection (2) of section 13A of FA 1994 (customs and excise decisions: meaning of “relevant decision”) and, accordingly, as if they were relevant decisions for the purposes mentioned in subsection (1) of that section.
The decisions are—
a decision consisting in the giving of a direction under section 153(3),
a decision to direct that section 160(2) is not to apply in a specified case,
a decision under regulations by virtue of section 164(3), and
a decision to refuse an agreement relating to a person's liability to general betting duty, pool betting duty or remote gaming duty under section 165(3).
A decision mentioned in subsection (2) is to be treated as an ancillary matter for the purposes of sections 14 to 16 of FA 1994.
In this Part “bet” does not include any bet made or stake hazarded in the course of, or incidentally to, any gaming.
For the purposes of this Part, a bet is to be treated as being made by way of pool betting unless it is a bet at fixed odds.
In particular, bets are to be treated as being made by way of pool betting wherever a number of persons make bets—
on terms that the winnings of such of those persons as are winners are to be, or to be a share of, or to be determined by reference to, the stake money paid or agreed to be paid by those persons, whether the bets are made by means of a totalisator, or by filling up and returning coupons or other printed or written forms, or in any other way,
on terms that the winnings of such of those persons as are winners are to be, or are to include, an amount (not determined by reference to the stake money paid or agreed to be paid by those persons) which is divisible in any proportions among such of those persons as are winners, or
on the basis that the winners or their winnings are, to any extent, to be at the discretion of the promoter or some other person.
Where there is or has been issued any advertisement or other publication calculated to encourage in persons making bets of any description with or through a bookmaker a belief that such bets are made on the basis mentioned in subsection (2)(c), then any bets of that description subsequently made with or through the bookmaker are to be treated for the purposes of this section as being made on that basis.
A bet is at fixed odds for the purposes of this Part only if, when making the bet, each of the persons making it knows or can know the amount the person will win, except in so far as that amount is to depend on—
the result of the event or events betted on,
any such event taking place or producing a result,
the numbers taking part in any such event,
the starting prices or totalisator odds for any such event, or
the time when the person's bet is received by any person with or through whom it is made.
A bet made with or through a person carrying on a business of receiving or negotiating bets and made in the course of that business is not a bet at fixed odds for the purposes of this Part if the winnings of the person by whom it is made consist or may consist wholly or in part of something other than money.
In this section—
This paragraph applies in relation to a chargeable period which begins before the start date and ends on or after that date (“the first straddling period”).
In the Registered Pension Schemes (Provision of Information) Regulations 2006 (S.I. 2006/567) after regulation 18 insert— The amendment made by sub-paragraph (1) is to be treated as having been made by the Commissioners for Her Majesty’s Revenue and Customs under such of the powers cited in the instrument containing the Regulations as are applicable.
To determine amount A— If this sub-paragraph is to be applied, amount A is— where— ARP is (subject to sub-paragraph (3)) an amount equal to— the annual rate at which any relevant existing pension was payable to the individual at the time immediately before the benefit crystallisation event occurred, or if more than one relevant existing pension was payable to the individual at that time, the sum of the annual rates at which each of the relevant existing pensions was so payable, and SLT is an amount equal to what the standard lifetime allowance was at the time the benefit crystallisation event occurred. Paragraph 20(4) of Schedule 36 to FA 2004 applies for the purposes of the definition of “ARP” in sub-paragraph (2) (and, for this purpose, in paragraph 20(4) any reference to “the time” is to be read as a reference to the time immediately before the benefit crystallisation event occurred). If the time immediately before the benefit crystallisation event occurred falls before 6 April 2011, in sub-paragraph (3) references to paragraph 20(4) are to be read as references to that provision as it stood at the time immediately before the benefit crystallisation event occurred. If more than one benefit crystallisation event has occurred, in sub-paragraphs (2) to (4) references to the benefit crystallisation event are to be read as references to the first benefit crystallisation event. If this sub-paragraph is to be applied, amount A is— where ARP is (subject to sub-paragraph (7)) an amount equal to— the annual rate at which any relevant existing pension is payable to the individual at the end of 5 April 2014, or if more than one relevant existing pension is payable to the individual at the end of 5 April 2014, the sum of the annual rates at which each of the relevant existing pensions is so payable. Paragraph 20(4) of Schedule 36 to FA 2004 applies for the purposes of the definition of “ARP” in sub-paragraph (6) (and, for this purpose, in paragraph 20(4) any reference to “the time” is to be read as a reference to 5 April 2014). In this paragraph “relevant existing pension” means (subject to sub-paragraph (9)) a pension, annuity or right— If— the new scheme pension is also to be a “relevant existing pension” (including for the purposes of this sub-paragraph).
In section 270 of ITA 2007 (assessment on withdrawal or reduction of relief), in subsection (1), after “obtained” insert “, and may be made at any time not more than 6 years after the end of that tax year”. The amendment made by this paragraph has effect in relation to assessments made on or after 6 April 2014 (including those made for tax years ending before that date).
Section 352 (meaning of “qualifying oil field”) is amended as follows. Renumber section 352 as subsection (1) of section 352. In section 352(1) (as renumbered), after “an oil field” insert “, other than an onshore field,”. After subsection (1) insert—
Paragraphs 9 and 10 apply where a company has an accounting period (the “straddling accounting period”) that begins before and ends on or after commencement day. In paragraphs 9 and 10 “commencement day” means— Expressions used in paragraph 9 or 10 and in Chapter 8 of Part 8 of CTA 2010 (as inserted by paragraph 3) have the same meaning in the paragraph concerned as in that Chapter.
Subject to sub-paragraph (2), the amendments made by paragraphs 7 and 10 are treated as having come into force on 5 December 2013 and have effect in accordance with paragraphs 12 and 13. Section 850C(8)(b), (18)(b) and (19) of ITTOIA 2005 is treated as having come into force on 6 April 2014.
Section 1 of CEMA 1979 (interpretation) is amended as follows. In subsection (4)(a)(i), for “relevant journey” substitute “journey made by the ship or aircraft”. Omit subsection (4A).
Section 23A (meaning of “relevant machine game”) of VATA 1994 is amended as follows. In subsection (2)(f), for “section 26A of the Betting and Gaming Duties Act 1981 (remote gaming duty: interpretation)” substitute “section 154(1) of the Finance Act 2014 (meaning of remote gaming)”. In subsection (3), in the definition of “real game of chance”, for “the Betting and Gaming Duties Act 1981” substitute “Part 3 of the Finance Act 2014 (see section 188(1)(b))”.
The Gambling Act 2005 is amended as follows.
In section 67 (remote operating licence), at the end insert—
The amount (if any) by which the company’s adjusted ring fence profits for the straddling accounting period are reduced under section 356D of CTA 2010 (as inserted by paragraph 3) cannot exceed the appropriate proportion of those profits. Section 356DA of CTA 2010 (carrying forward of activated allowance) applies in relation to the company and the accounting period as if the reference in subsection (1)(b) of that section to the adjusted ring fence profits were to the appropriate proportion of those profits. The “appropriate proportion” of the company’s adjusted ring fence profits for the straddling accounting period is— where— D is the number of days in the straddling accounting period that fall on or after commencement day; Y is the number of days in the straddling accounting period; N is the amount of the company’s adjusted ring fence profits for the accounting period. If the basis of apportionment in sub-paragraph (3) would work unjustly or unreasonably in the company’s case, the company may elect for its adjusted ring fence profits to be apportioned on another basis that is just and reasonable and specified in the election.
Section 850C of ITTOIA 2005 has effect for periods of account beginning on or after 6 April 2014 (and section 850E of ITTOIA 2005 and section 1264A of CTA 2009 have effect accordingly). Sub-paragraphs (3) and (4) apply in relation to a firm where a period of account (“the straddling period”) begins before 6 April 2014 but ends on or after that date. Assume that the part of the straddling period falling on or after 6 April 2014 is a separate period of account. If section 850C(4) of ITTOIA 2005 would apply in relation to one or more partners in the firm for the assumed separate period of account, Part 9 of that Act has effect as if that part of the straddling period were a separate period of account.
For the purpose of determining the amount of activated allowance the company has with respect to any site— the company’s relevant income from the site in the straddling accounting period is taken to be the appropriate proportion of the actual amount of that relevant income. Accordingly, in relation to the company, the straddling accounting period and the site in question, section 356EB of CTA 2010 (carrying forward of unactivated allowance) has effect as if Y in subsection (1) of that section were defined as the appropriate proportion of the company’s relevant income for the straddling accounting period from that site. The “appropriate proportion” of the company’s relevant income from a site in the straddling accounting period is— D is the number of days in the straddling accounting period that fall on or after commencement day; Y is the number of days in the straddling accounting period; I is the amount of the company’s relevant income from the site in the straddling accounting period. If the basis of apportionment in sub-paragraph (3) would work unjustly or unreasonably in the company’s case, the company may elect for its adjusted ring fence profits to be apportioned on another basis that is just and reasonable and specified in the election.
Section 850D of ITTOIA 2005 has effect for periods of account beginning on or after 6 April 2014 (and section 850E of ITTOIA 2005 and section 1264A of CTA 2009 have effect accordingly). Sub-paragraphs (3) and (4) apply in relation to a firm where a period of account (“the straddling period”) begins before 6 April 2014 but ends on or after that date. Assume that the part of the straddling period falling on or after 6 April 2014 is a separate period of account. If section 850D(4) of ITTOIA 2005 would apply in relation to one or more individuals for the assumed separate period of account, Part 9 of that Act has effect as if that part of the straddling period were a separate period of account.
In section 118 (suspension of operating licence), after subsection (3) insert—
After that section insert—
The amendments made by paragraphs 8 and 9 have effect in relation to losses made in the tax year 2014-15 and subsequent tax years. Sub-paragraphs (3) and (4) apply for the purposes of section 116A or 127C of ITA 2007 if a loss made by an individual as a partner in a firm arises in a period of account (“the straddling period”) which begins before 6 April 2014 but ends on or after that date. The loss is to be apportioned between the part of the straddling period falling before 6 April 2014 and the part falling on or after that date— Section 116A or 127C of ITA 2007 does not apply in relation to the loss so far as it is apportioned to the part of the straddling period falling before 6 April 2014.
In section 119 (revocation of operating licence), after subsection (3) insert—
dutiable excise goods a person has obtained outside the United Kingdom, or
Paragraph 29 (“excluded” equity and liabilities: protected deposits) is amended as follows. Omit sub-paragraphs (4) to (6). In sub-paragraph (8) omit “, and sub-paragraphs (4), (5) and (6) so far as relating to a scheme within sub-paragraph (2),”. In sub-paragraph (9) omit “, and sub-paragraphs (4), (5) and (6) so far as relating to a scheme within sub-paragraph (3),”. The amendments made by this paragraph have effect for chargeable periods ending on or after 1 January 2015.
After paragraph 76 insert— This paragraph is subject to paragraph 76A. In paragraph 77 (which relates to the calculation of “UK allocated equity and liabilities”), for “76” substitute “76A”. The amendments made by this paragraph have effect for chargeable periods ending on or after 1 January 2015.
After the review request period has ended, the Commissioners may direct the Gambling Commission to suspend the remote operating licence if the breach specified in the final notice has not been remedied in full to the satisfaction of the Commissioners. But if the Commissioners have been required to review the decision, or an appeal has been brought against the decision, a direction may be given under sub-paragraph (1) only if— A direction under this paragraph may include provision directing the Gambling Commission as to how it is to exercise its powers under section 118(4) of the Gambling Act 2005 (time and duration of suspension and saving and transitional provision). In this paragraph “the review request period” means the period of 30 days beginning with the date of the final notice, subject to any extension given under section 15D of FA 1994.
The Gambling Commission requires the consent of the Commissioners to issue a remote operating licence to the holder of a licence— The Commissioners must notify the holder of the suspended or revoked licence of any decision— That decision is to be treated as a relevant decision for the purposes of sections 15A and 15C to 16 of FA 1994 (customs and excise reviews and appeals) and, accordingly, the notice under sub-paragraph (2) must include an offer of a review of the decision under section 15A of that Act. Only the holder of the suspended or revoked licence may bring an appeal under section 16 of FA 1994 as applied by sub-paragraph (3).
Schedule 4 to the Co-operative and Community Benefit Societies Act 2014 (consequential amendments) is amended as follows.
in relation to Chapter 2, has the meaning given by section 204(1);
In section 39 of CEMA 1979 (entry of surplus stores), for subsection (1) substitute—
Stamp duty is not chargeable under Schedule 13 to FA 1999 (transfers on sale) on instruments relating to stock or marketable securities admitted to trading on a recognised growth market but not listed on any market.
In paragraphs 5 to 7 “listed” and “recognised growth market” are to be construed in accordance with section 99A of FA 1986 (inserted by paragraph 3 of this Schedule).
Schedule 15 to FA 2003 (SDLT: partnerships) is amended as follows. In paragraph 31(1) (stamp duty on transfers of partnership interests: continued application), after “that section)” insert “or in Schedule 24 to the Finance Act 2014 (abolition of stamp duty in relation to certain securities)”. In paragraph 33—
FA 1994 is amended as follows.
Omit paragraph 27 of Schedule 1 to the Criminal Justice and Police Act 2001 (application of section 50 to power of seizure under paragraph 16(2) of Schedule 1 to BGDA 1981).
FA 2009 is amended as follows.
For “the start date”, see section 10(3). The maximum allowance under section 51A of CAA 2001 for the first straddling period is the sum of each maximum allowance that would be found if— were each treated as separate chargeable periods. But this is subject to paragraphs 2 and 3.
The amendments made by this Schedule come into force on 1 August 2014.
In Schedule 22 to FA 2000 (tonnage tax), in paragraph 57 (exclusion of relief or set-off against tax liability), in sub-paragraph (6), for paragraph (a) substitute—.
Part 4 of FA 2004 (pension schemes etc) is amended as follows.
TCGA 1992 is amended as follows.
The Individual Savings Account Regulations 1998 are amended as follows.
In section 236A (relief for transfers to share incentive plans) for “an approved” substitute “a Schedule 2”.
In regulation 2 (interpretation) in paragraph (1)(a)—
omit the definition of “approved SIP”,
in the definitions of “ceasing to be subject to the plan”, “participant” and “plan shares” for “an approved” substitute “a Schedule 2”, and
at the appropriate place insert—.
Section 238A (share schemes and share incentives) is amended as follows. In the heading omit “Approved”. In subsection (1) omit “approved”. In subsection (2)(a) for “approved” substitute “Schedule 2”.
In regulation 7 (qualifying investments) in paragraph (2)(h)(iii) for “an approved” substitute “a Schedule 2”.
Schedule 7C (relief for transfers to share plans) is amended as follows.
In regulation 34 (capital gains tax: adaptation of enactments) in paragraph (2)(a)—
in the inserted subsections (12)(b)(iii) and (13)(d) for “an approved” substitute “a Schedule 2”, and
in the inserted subsection (13)(c) for “approved” substitute “Schedule 2”.
In the title for “approved” substitute “Schedule 2”.
In paragraph 2 (conditions relating to disposal) in sub-paragraph (1) for “approved” substitute “a Schedule 2 SIP”.
Schedule 7D (share schemes and share incentives) is amended as follows.
In the title omit “Approved”.
In the title of Part 1 for “Approved” substitute “Schedule 2”.
Paragraph 1 (introduction to Part 1) is amended as follows. In sub-paragraph (1) for “an approved” substitute “a Schedule 2”. In sub-paragraphs (2) and (3) omit “approved”.
In paragraph 2 (gains accruing to trustees) in sub-paragraph (1)(a) omit “approved”.
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 (f) and after paragraph (g) insert, or ;
in sub-paragraph (4), for “(e)” substitute “ (h) ”.
TCGA 1992 is amended as follows.
This Part is treated as having come into force on 6 April 2014.
The amendments made by paragraphs 2 and 3 come into force on 1 January 2017.
In section 238A (share schemes and share incentives) in subsection (2)(c) for “approved” substitute “Schedule 4”.
The amendments made by paragraphs 227 and 231 above have no effect in relation to reportable events occurring before 6 April 2014.
In section 12 (assessments to excise duty), in subsection (2)(c)—
omit “1 or”, and
after “2012” insert “or Part 3 of the Finance Act 2014”.
The Table in paragraph 1 of Schedule 55 (penalty for failure to make returns etc) is amended as follows—
in item 23 (general betting duty), for “paragraph 2 of Schedule 1 to BGDA 1981” substitute “section 166 of FA 2014”,
in item 24 (pool betting duty), for “paragraph 2A of Schedule 1 to BGDA 1981” substitute “section 166 of FA 2014”, and
in item 28 (remote gaming duty), for “26K of BGDA 1981” substitute “166 of FA 2014”.
Omit section 13A(2)(ga) (relevant decision: double taxation relief repayment).
The Table in paragraph 1 of Schedule 56 (penalty for failure to make payments on time) is amended as follows. 11H General betting duty Amount payable under section 142 of FA 2014 The date determined— under section 142 of FA 2014, or by or under regulations under section 163 or 167 of that Act, as the date by which the amount must be paid 11I Pool betting duty Amount payable under section 151 of FA 2014 The date determined— under section 151 of FA 2014, or by or under regulations under section 163 or 167 of that Act, as the date by which the amount must be paid 11M Remote gaming duty Amount payable under section 162 of FA 2014 The date determined by or under regulations under section 163 or 167 of FA 2014 as the date by which the amount must be paid
Part 3 of Schedule 7D (CSOP schemes) is amended as follows.
Section 421JA of ITEPA 2003 (as inserted by paragraph 228 above) has effect so as to require returns for the tax year 2014-15 and subsequent tax years. That section has effect in relation to persons whose reportable event periods begin before 6 April 2014 (as well as those whose reportable event periods begin on or after that date).
In the title for “Approved” substitute “Schedule 4”.
Paragraph 6 of Schedule 5 (decisions subject to review and appeal) is amended as follows. Omit sub-paragraph (1)(a). In sub-paragraph (2)— Omit sub-paragraph (3).
Paragraph 11 (introduction) is amended as follows. In sub-paragraphs (1) and (2) omit “approved”. In sub-paragraph (3)(a)(i) for “an approved” substitute “a Schedule 4”.
In paragraph 12 (relief where income tax charged in respect of grant of option) in sub-paragraph (4)(b) for “approved” substitute “a Schedule 4 CSOP scheme”.
In paragraph 13 (market value rule not to apply) in sub-paragraphs (1)(a) and (3) for “approved” substitute “a Schedule 4 CSOP scheme”.
Chapter 3 of Part 8A of CTA 2010 (profits arising from the exploitation of patents etc: relevant IP profits) is amended as follows. In section 357CL (companies eligible to elect for small claims treatment)— In section 357CM (small claims amount)—
The Employee Share Schemes (Electronic Communication of Returns and Information) Regulations 2007 are revoked.
This Part is treated as having come into force on 6 April 2014.
Part 12 of CTA 2010 (real estate investment trusts) is amended as follows. In section 534 (tax treatment of profits), omit subsection (3). In section 535 (tax treatment of gains), omit subsection (6). In section 543 (profit: financing-cost ratio), omit subsection (5). In section 551 (tax consequences of distribution to holder of excessive rights), omit subsection (6). In section 552 (“the section 552 amount”), in subsection (2), for “rate of corporation tax mentioned in section 534(3) (rate determined without reference to sections 18 to 23)” substitute “ main rate of corporation tax ”. In section 564 (breach of condition as to distribution of profits), omit subsection (4).
Paragraphs 148 to 157 below apply in relation to an SAYE option scheme established before 6 April 2014.
In paragraph 47 (which amends section 140E of TCGA 1992)—
in sub-paragraph (2), after “Co-operative and Community Benefit Societies Act 2014” insert “or a society registered or treated as registered under the Industrial and Provident Societies Act (Northern Ireland) 1969”, and
in sub-paragraph (3), after “Co-operative and Community Benefit Societies Act 2014” insert “, a society registered or treated as registered under the Industrial and Provident Societies Act (Northern Ireland) 1969”.
In paragraph 48 (which amends section 140F of TCGA 1992) after “Co-operative and Community Benefit Societies Act 2014” insert “or a society registered or treated as registered under the Industrial and Provident Societies Act (Northern Ireland) 1969”.
Part 13 of CTA 2010 (other special types of company etc) is amended as follows. In section 614 (open-ended investment companies: applicable corporation tax rate), omit “(and sections 18 and 19 (relief for companies with small profits) do not apply)”. In section 618 (authorised unit trusts: applicable corporation tax rate), omit “(and sections 18 and 19 (relief for companies with small profits) do not apply)”. In section 627 (companies in liquidation etc: meaning of “rate of corporation tax” in case of companies with small profits)— In section 628 (company in liquidation: corporation tax rates), for “the rate of corporation tax” (in each place it occurs) substitute “ the main rate of corporation tax ”. In section 630 (company in administration: corporation tax rates), for “the rate of corporation tax” (in each place it occurs) substitute “ the main rate of corporation tax ”.
If the scheme was an approved SAYE option scheme immediately before 6 April 2014, this paragraph applies to any provision which the scheme contains immediately before that date and which requires the approval or agreement of Her Majesty’s Revenue and Customs or an officer of Revenue and Customs to be obtained in relation to any matter. On and after 6 April 2014, the provision is to have effect without the requirement for the approval or agreement, unless the requirement reflects a requirement for approval or agreement set out in Schedule 3 to ITEPA 2003 (as amended by this Part).
“main ring fence profits rate” has the meaning given by section 279A(4), “ “related 51% group company” is to be read in accordance with section 279F,
If the scheme was an approved SAYE option scheme immediately before 6 April 2014, the amendment made by paragraph 108 above has effect in relation to the scheme only if, and when, there is an alteration in a key feature of the scheme on or after that date. In sub-paragraph (1) “key feature” has the meaning given in paragraph 40B(8) of Schedule 3 to ITEPA 2003 (as inserted by paragraph 117 above).
In paragraph 49 (which amends section 140G of TCGA 1992) after “Co-operative and Community Benefit Societies Act 2014” insert “or a society registered or treated as registered under the Industrial and Provident Societies Act (Northern Ireland) 1969”.
In paragraph 50 (which amends section 170 of TCGA 1992)—
in sub-paragraph (2), for “within the meaning of the Co-operative and Community Benefits Societies Act 2014” substitute “(see section 1119 of that Act)”, and
in sub-paragraph (3), for “within the meaning of the Co-operative and Community Benefits Societies Act 2014” substitute “(see section 1119 of CTA 2010)”.
Schedule 4 to CTA 2010 (index of defined expressions) is amended as follows. the main ring fence profits rate section 279A(4) (as applied by section 1119) the marginal relief fraction (in Chapter 3A of Part 8) section 279B(3) related 51% group company section 279F (as applied by section 1119) the small ring fence profits rate section 279A(4) Omit the entries for— “associated company (in Part 3)”; “close investment holding company (in Part 3)”; “the ring fence fraction (in Part 3)”; “the small profits rate”; “the standard fraction (in Part 3)”. In the entry for “augmented profits (in Part 3)”— In the entry for “the lower limit (in Part 3)”— In the entry for “the upper limit (in Part 3)”—
If the scheme was an approved SAYE option scheme immediately before 6 April 2014, on and after that date the scheme has effect with any modifications needed to reflect the amendment made by paragraph 110 above.
This paragraph applies if, immediately before 6 April 2014, the scheme was an approved SAYE option scheme which contains provision authorised by paragraph 28(3) of Schedule 3 to ITEPA 2003. On and after 6 April 2014, the scheme has effect with any modifications needed to reflect the amendments made by paragraph 111 above.
In paragraph 53 (which amends Schedule 7AC of TCGA 1992) for “within the meaning of the Co-operative and Community Benefits Societies Act 2014” substitute “(see section 1119 of that Act)”.
In paragraph 82 (which amends paragraph 28 of Schedule 2 to ITEPA 2003), in the sub-paragraph (5) substituted by sub-paragraph (3)—
omit the “or” following paragraph (b), and
at the end of paragraph (c) insert , or
The amendment made by paragraph 112 above has no effect in relation to share options granted before 6 April 2014 under the scheme. If the scheme was an approved SAYE option scheme immediately before 6 April 2014, on and after that date the scheme has effect with any modifications needed to reflect the amendment made by paragraph 112 above (subject to sub-paragraph (1) of this paragraph).
The amendments made by paragraph 113 above have no effect in a case where P ceases to hold the scheme-related employment before 6 April 2014. If immediately before 6 April 2014 the scheme was an approved SAYE option scheme which contains provision authorised by paragraph 34(5) of Schedule 3 to ITEPA 2003, on and after that date the scheme has effect with any modifications needed to reflect the amendments made by paragraph 113 above (subject to sub-paragraph (1) of this paragraph).
In paragraph 94 (which amends section 379 of ITTOIA 2005), in the definition of “registered society” inserted by sub-paragraph (4)—
omit the “or” following paragraph (a), and
after paragraph (b) insert—.
In paragraph 105 (which amends section 151 of ITA 2007), in the definition of “registered society” inserted by sub-paragraph (3)—
omit the “or” following paragraph (a), and
at the end of paragraph (b) insert or.
This paragraph applies if, immediately before 6 April 2014, the scheme was an approved SAYE option scheme which contains provision authorised by paragraph 37(1) of Schedule 3 to ITEPA 2003. On and after 6 April 2014, the scheme has effect with any modifications needed to reflect the amendment made by paragraph 114(3) above.
Paragraph 40A of Schedule 3 to ITEPA 2003 (as inserted by paragraph 117 above) has effect in relation to the scheme— But the scheme cannot be a Schedule 3 SAYE option scheme if, before 6 April 2014, an application for its approval was refused or an officer of Revenue and Customs decided to withdraw its approval. Sub-paragraph (2) is without prejudice to the outcome of any appeal under paragraph 41 or 44 of Schedule 3 to ITEPA 2003 against the refusal or decision to withdraw approval. The amendments made by this Part do not affect any right of appeal under paragraph 41 or 44 of Schedule 3 to ITEPA 2003 against a refusal or decision made before 6 April 2014 in relation to the scheme. Sub-paragraphs (6) and (7) apply if a share option was granted before 6 April 2014 under the scheme at a time when the scheme was an approved SAYE option scheme. On and after 6 April 2014, the SAYE code has effect in relation to the option as if it were granted under the scheme at a time when the scheme was a Schedule 3 SAYE option scheme (even if no notice is given under paragraph 40A of Schedule 3 to ITEPA 2003 in relation to the scheme or the scheme cannot be a Schedule 3 SAYE option scheme because of sub-paragraph (2) of this paragraph). If no notice is given under paragraph 40A of Schedule 3 to ITEPA 2003 in relation to the scheme, paragraph 40B of that Schedule (as inserted by paragraph 117 above) is to apply in relation to the scheme despite no notice being given; and, for this purpose, the relevant date is to be taken to be 6 April 2014. Sub-paragraph (9) applies in relation to a share option granted before 6 April 2014 under the scheme at a time when the scheme was an approved SAYE option scheme if— The scheme is to be taken to be a Schedule 3 SAYE option scheme at the time of the exercise of the option for the purposes of the following provisions in their application to the option— In relation to the scheme—
In paragraph 110 (which amends section 887 of ITA 2007), in the subsection (5) substituted by sub-paragraph (5)—
omit the “or” following paragraph (a), and
after paragraph (b) insert—
In paragraph 158 (which amends section 90 of CTA 2010), in the definition of “registered society” inserted by sub-paragraph (3)—
omit the “or” following paragraph (a), and
at the end of paragraph (b) insert or.
If the scheme was an approved SAYE option scheme before 6 April 2014, the amendments made by this Part do not affect the deductions which may be made in relation to the scheme under section 94A of ITTOIA 2005 or section 999 of CTA 2009 (deduction for costs of setting up scheme) if they would otherwise do so.
The amendments made by paragraph 118 above do not affect a notice given in relation to the scheme under paragraph 45 of Schedule 3 to ITEPA 2003 before 6 April 2014.
In paragraph 168 (which amends section 1119 of CTA 2010), in the definition of “registered society” inserted by sub-paragraph (3), for paragraph (c) and the “or” before it substitute—.
In paragraph 171 (which amends section 118 of TIOPA 2010)—
in sub-paragraph (2), after “Co-operative and Community Benefit Societies Act 2014” insert “or a society registered or treated as registered under the Industrial and Provident Societies Act (Northern Ireland) 1969”, and
in sub-paragraph (3), after “Co-operative and Community Benefit Societies Act 2014” insert “, a society registered or treated as registered under the Industrial and Provident Societies Act (Northern Ireland) 1969”.
In this Part “UK person” means—
an individual who usually lives in the United Kingdom, or
a body corporate which is legally constituted in the United Kingdom.
The Treasury may by regulations—
amend the definition of “UK person” in subsection (1),
make provision as to the cases in which a person is, or is not, a UK person for the purposes of this Part, and
make provision about bets made, and arrangements to participate in remote gaming entered into, by bodies of persons unincorporate.
The Commissioners may by notice published by them—
specify steps that must be taken in order to determine whether a person making a bet or entering into arrangements to participate in remote gaming is a UK person,
specify who must take those steps,
specify circumstances in which a person making a bet or entering into arrangements to participate in remote gaming is to be treated as a UK person because of a failure to produce sufficient evidence to the contrary, and
specify circumstances in which a person making a bet or entering into arrangements to participate in remote gaming is to be treated as not being a UK person on the basis of evidence of a description specified in the notice.
A bet is an on-course bet for the purposes of this Part if it—
is made by a person present at a horse or dog race meeting or by a bookmaker,
is not made through an agent of an individual making the bet or through an intermediary, and
is made—
with a bookmaker present at the meeting, or
by means of a totalisator situated in the United Kingdom, using facilities provided at the meeting by or by arrangement with the person operating the totalisator.
A bet is an excluded bet for the purposes of this Part if—
it is not made in or from the United Kingdom, and
the facilities used to receive or negotiate the bet or (in the case of pool betting) to conduct the pool betting operations are not capable of being used in or from the United Kingdom.
The Treasury may by regulations amend subsection (2).
In this Part—
“gaming” means playing a game of chance for a prize, and
“game of chance” has the meaning given by section 6(2) of the Gambling Act 2005.
For the purposes of subsection (1)—
“playing a game of chance” is to be read in accordance with section 6(3) of the Gambling Act 2005, and
“prize” does not include the opportunity to play the game again.
But a game is not a “game of chance” for the purposes of this Part if—
it can only be played with the participation of two or more persons, and
no amounts are paid or required to be paid—
in respect of entitlement to participate in the game, or
otherwise for, on account of or in connection with participation in the game.
In this Part—
“TMA 1970” means the Taxes Management Act 1970,
Column 2 of the Table at the end of section 98 of TMA 1970 (special returns: penalties) is amended as follows. Regulations under paragraph 16 of Schedule 18 to the Finance Act 2011. Regulations under paragraph 3 of Schedule 22 to the Finance Act 2013. Regulations under paragraph 8 of Schedule 6 to the Finance Act 2014.
In section 270 (meaning of “scheme administrator”) in subsection (2)— The amendments made by this paragraph have effect in relation to appointments on or after 1 September 2014.
Chapter 1 of Part 11 of CTA 2009 (relief for employee share acquisition schemes: share incentive plans) is amended as follows.
This Part is treated as having come into force on 6 April 2014.
ITEPA 2003 is amended as follows.
In CEMA 1979, after section 60 insert—
Any power to make regulations conferred by virtue of this Schedule comes into force on the day on which this Act is passed. So far as not already brought into force by virtue of sub-paragraph (1), the amendments made by this Schedule come into force in accordance with provision contained in an order made by statutory instrument by the Commissioners for Her Majesty’s Revenue and Customs.
IHTA 1984 is amended as follows.
In section 64 (charge at ten-year anniversary), after subsection (1) insert— In section 66 (rate of ten-yearly charge), after subsection (2) insert— The amendments made by this paragraph have effect in relation to occasions on which tax falls to be charged under section 64 of IHTA 1984 on or after 6 April 2014.
In paragraph 15 (chargeable equity and liabilities of a UK banking group or a building society group)—
in sub-paragraph (2)(c), for “finally,” substitute “finally (subject to sub-paragraph (6))”, and
Where any amount (“A”) within sub-paragraph (2)(c) is used to reduce short term liabilities, the amount of the reduction is determined as if A were an amount equal to half of A.
After paragraph 38 insert— The amendment made by this paragraph has effect in relation to chargeable periods ending on or after 1 January 2014.
This paragraph applies where— Paragraphs 9 and 10 of this Schedule are to be ignored for the purpose of determining the amount of any pre-commencement instalment payment. If there is at least one instalment payment, in respect of the total liability of E for the accounting period, which under the Instalment Payment Regulations is treated as becoming due and payable on or after the commencement date (“post-commencement instalment payments”), the amount of that instalment payment, or the first of them, is to be increased by the adjustment amount. If there are no post-commencement instalment payments, a further instalment payment, in respect of the total liability of E for the accounting period, of an amount equal to the adjustment amount is to be treated as becoming due and payable at the end of the period of 30 days beginning with the commencement date. “The adjustment amount” is the difference between— In the Instalment Payment Regulations— In section 59D of TMA 1970 (general rule as to when corporation tax is due and payable), in subsection (5), the reference to section 59E is to be read as including a reference to sub-paragraphs (1) to (6) above. In this paragraph— and references to the total liability of E for an accounting period are to be construed in accordance with regulation 2(3) of the Instalment Payment Regulations.
This Schedule makes special provision about the application of Chapter 2 to partners and partnerships.
Section 208 applies, in relation to a partnership follower notice, in accordance with this paragraph. Subsection (2) applies as if the reference to P were to each relevant partner. References to the denied advantage are to be read as references to the increase or reduction in an amount in the partnership statement mentioned in paragraph 3(3) which is denied by the application of the principles laid down or the reasoning given in the judicial ruling identified in the partnership follower notice under section 206(a) or, if only part of any increase or reduction is so denied, that part. In subsection (6)(b) the words from “and (where different)” to the end are to be ignored, and accordingly subsection (7) does not apply.
This paragraph applies where— No accelerated payment notice may be given to the representative partner of the partnership, or a successor of that partner, by reason of that enquiry or appeal. But this Schedule makes provision for partner payment notices and accelerated partner payments in such cases.
This paragraph applies where a partner payment notice has been given to a relevant partner under paragraph 3 (and not withdrawn). The relevant partner has 90 days beginning with the day that notice is given to send written representations to HMRC— HMRC must consider any representations made in accordance with sub-paragraph (2). Having considered the representations, HMRC must— and notify P accordingly.
Section 227 (withdrawal, modification or suspension of accelerated payment notice) applies in relation to a relevant partner, a partner payment notice, Condition C in paragraph 3 and an accelerated partner payment as it applies in relation to P, an accelerated payment notice, Condition C in section 219 and an accelerated payment. Accordingly, for this purpose—
In section 104 of TCGA 1992 (share pooling: general interpretative provisions), after subsection (4) insert— The amendment made by this paragraph has effect in relation to any disposal on or after 6 April 2014 of any securities (whenever acquired).
Section 61 of CEMA 1979 (provisions as to stores) is amended as follows. Omit subsections (1) to (4). In subsection (5), for the words from “for use on a voyage” to “duty” substitute “without payment of duty”. After subsection (5) insert— In subsection (6), omit “for use”. The heading of section 61 becomes “Supplementary provision relating to stores”.
Schedule 55 to FA 2009 (including the amendments of that Schedule made by Schedule 10 to F(No.3)A 2010) is taken to have come into force for the purposes of section 60A of CEMA 1979 on the date on which paragraph 7 of this Schedule comes into force. Schedule 56 to FA 2009 (including the amendments of that Schedule made by Schedule 11 to F(No.3)A 2010) is taken to have come into force for the purposes of section 60A of CEMA 1979 on the date on which paragraph 8 of this Schedule comes into force.
In paragraph 17 (chargeable equity and liabilities of foreign banking groups)—
in sub-paragraph (6)(c), for “finally,” substitute “finally (subject to sub-paragraph (16))”,
in sub-paragraph (12)(c), for “finally,” substitute “finally (subject to sub-paragraph (16))”, and
Where any amount (“A”) within sub-paragraph (6)(c) or (12)(c) is used to reduce short term liabilities, the amount of the reduction is determined as if A were an amount equal to half of A.
Section 983 (overview of Chapter) is amended as follows. In subsection (1) for “approved” substitute “Schedule 2”. In subsection (7) for “approval for a plan is withdrawn” substitute “a plan ceases to be a Schedule 2 share incentive plan”.
Paragraphs 91 to 96 below apply in relation to a SIP established before 6 April 2014.
Part 2 (employment income: charge to tax) is amended as follows.
Section 987 (deduction for cost of setting up plan) is amended as follows. In the heading for “an approved” substitute “a Schedule 2”. In subsection (1) for “approved by an officer of Revenue and Customs” substitute “a Schedule 2 share incentive plan”. Omit subsection (3). In subsection (4) for “approval is given” (in both places) substitute “relevant date falls”. After subsection (4) insert—
If the SIP was an approved SIP immediately before 6 April 2014, this paragraph applies to any provision which the SIP contains immediately before that date and which requires the approval or agreement of Her Majesty’s Revenue and Customs or an officer of Revenue and Customs to be obtained in relation to any matter. On and after 6 April 2014, the provision is to have effect without the requirement for the approval or agreement, unless the requirement reflects a requirement for approval or agreement set out in Schedule 2 to ITEPA 2003 (as amended by this Part).
In section 6 (nature of charge to tax on employment income), in subsection (3A), for “Chapter 5A” substitute “Chapter 5B”.
In consequence of the provision made by paragraph 4, in section 103 of F(No.2)A 1987 (consumption in port of goods transhipped for use as stores etc), omit subsections (1), (2) and (4) to (7).
In paragraph 19 (chargeable equity and liabilities of non-banking groups)—
in sub-paragraph (6)(c), for “finally,” substitute “finally (subject to sub-paragraph (16))”,
in sub-paragraph (12)(c), for “finally,” substitute “finally (subject to sub-paragraph (16))”, and
Where an amount (“A”) within sub-paragraph (6)(c) or (12)(c) is used to reduce short term liabilities, the amount of the reduction is determined as if A were an amount equal to half of A.
In paragraph 21 (chargeable equity and liabilities of UK resident banks and building societies which are not members of groups)—
in sub-paragraph (2)(c), for “finally,” substitute “finally (subject to sub-paragraph (6))”, and
Where an amount (“A”) within sub-paragraph (2)(c) is used to reduce short term liabilities, the amount of the reduction is determined as if A were an amount equal to half of A.
Section 988 (deductions for running expenses) is amended as follows. In the heading for “an approved” substitute “a Schedule 2”. In subsections (1) and (3) for “an approved” substitute “a Schedule 2”.
If the SIP was an approved SIP immediately before 6 April 2014, the amendments made by paragraph 19 above have effect in relation to the SIP only if, and when, there is an alteration in a key feature of the SIP or plan trust on or after that date. In sub-paragraph (1) “key feature” has the meaning given in paragraph 81B(8) of Schedule 2 to ITEPA 2003 (as inserted by paragraph 28 above).
In section 10 (meaning of “taxable earnings” and “taxable specific income”), in subsection (4), for the words from “Chapter 5A” to the end substitute “Chapter 5B (taxable specific income from employment-related securities etc: internationally mobile employees)”.
In section 989 (deduction for contribution to plan trust) in subsection (1)(a) for “an approved” substitute “a Schedule 2”.
If the SIP was an approved SIP immediately before 6 April 2014, on and after that date the SIP and the plan trust have effect with any modifications needed to reflect the amendments made by paragraphs 20 to 22, 25, 27, 29 and 30 above.
For Chapter 5A (taxable specific income: effect of remittance basis) substitute—
In paragraph 27 (determination of foreign bank’s chargeable equity and liabilities)—
in sub-paragraph (2)(c), for “finally,” substitute “finally (subject to sub-paragraph (6))”, and
Where an amount (“A”) within sub-paragraph (2)(c) is used to reduce short term liabilities, the amount of the reduction is determined as if A were an amount equal to half of A.
The amendments made by paragraphs 2 to 6 have effect in relation to chargeable periods ending on or after 1 January 2015.
In section 994 (deduction for providing free or matching shares) in subsection (1) for “an approved” substitute “a Schedule 2”.
Paragraph 81A of Schedule 2 to ITEPA 2003 (as inserted by paragraph 28 above) has effect in relation to the SIP— But the SIP cannot be a Schedule 2 SIP if, before 6 April 2014, an application for its approval was refused or an officer of Revenue and Customs decided to withdraw its approval. Sub-paragraph (2) is without prejudice to the outcome of any appeal under paragraph 82 or 85 of Schedule 2 to ITEPA 2003 against the refusal or decision to withdraw approval. The amendments made by this Part do not affect any right of appeal under paragraph 82 or 85 of Schedule 2 to ITEPA 2003 against a refusal or decision made before 6 April 2014 in relation to the SIP. Sub-paragraphs (6) and (7) apply if shares (“the relevant shares”) were appropriated to, or acquired on behalf of, an individual before 6 April 2014 under the SIP at a time when the SIP was an approved SIP. On and after 6 April 2014, the SIP code operates in relation to the relevant shares— If no notice under paragraph 81A of Schedule 2 to ITEPA 2003 is given in relation to the SIP, paragraph 81B of that Schedule (as inserted by paragraph 28 above) is to apply in relation to the SIP despite no notice being given; and, for this purpose, the relevant date is to be taken to be 6 April 2014. In relation to the SIP—
Part 7 (employment income: income and exemptions relating to securities) is amended as follows.
In section 995 (deduction for additional expense in providing partnership shares) in subsection (1)(a) for “an approved” substitute “a Schedule 2”.
If the SIP was an approved SIP before 6 April 2014, the amendments made by this Part do not affect the deductions which may be made in relation to the SIP under section 987 of CTA 2009 (deduction for costs of setting up SIP) if they would otherwise do so; and the amendment made by paragraph 83(3)(a)(i) above has no effect in relation to such deductions.
In section 418 (other related provisions), before subsection (1) insert—
In section 997 (no deduction for expenses in providing dividend shares) in subsection (1) for “an approved” substitute “a Schedule 2”.
The amendments made by paragraph 31 above do not affect a notice given in relation to the SIP under paragraph 93 of Schedule 2 to ITEPA 2003 before 6 April 2014.
Omit section 421E (employment-related securities: exclusions, residence etc).
For the cross-heading before section 998 substitute “Plan ceasing to be a Schedule 2 SIP”.
In section 425 (no charge in respect of acquisition in certain cases), after subsection (5) insert—
Section 998 (withdrawal of deductions) is amended as follows. In the heading for “approval for share incentive plan withdrawn” substitute “share incentive plan ceases to be a Schedule 2 share incentive plan”. In subsection (1)—
Section 428 (restricted securities: amount of charge) is amended as follows. In subsection (7), after paragraph (ba) insert—. After subsection (7) insert—
In section 430 (election for outstanding restrictions to be ignored), after subsection (3) insert—
In section 431 (election for full or partial disapplication of Chapter 2 of Part 7 of ITEPA 2003), after subsection (5) insert—
In section 446T (securities acquired for less than market value: amount of notional loan), after subsection (3) insert—
Omit section 474 (cases where Chapter 5 of Part 7 of ITEPA 2003 (employment-related securities options) does not apply).
In section 480 (securities options: deductible amounts), after subsection (5) insert—
Section 540 (no charge on acquisition of shares as taxable benefit) is amended as follows. In subsection (1), omit “In its application in relation to a UK resident employee,”. Omit subsection (2).
Part 7A (employment income provided through third parties) is amended as follows.
In section 554L (exclusions: earmarking for employee share schemes (3)), in subsection (10)(c)(i), for “section 474” substitute “Chapter 5B of Part 2”.
Section 554M (exclusions: earmarking for employee share schemes (4)) is amended as follows. In subsection (9)(b)(i), for “section 474” substitute “Chapter 5B of Part 2”. In subsection (10)(b)(i), for “section 474” substitute “Chapter 5B of Part 2”.
Section 554N (exclusions: other cases involving employment-related securities etc) is amended as follows. In subsection (1)(b), omit “, or would apply apart from section 421E(1),”. In subsection (2)(b), omit “, or would apply apart from section 474(1),”. In subsection (6)— In subsection (10)— In subsection (13)(c)(i), for “section 474” substitute “Chapter 5B of Part 2”.
In Chapter 4 of Part 11 (PAYE: special types of income), in section 700A (employment-related securities etc: remittance basis), in subsection (3), for “41A” substitute “41F”.
by means of a totalisator, and
In Chapter 3 of Part 4 of FA 2004 (payments by registered pension schemes) after section 185I insert—
In the Registered Pension Schemes (Authorised Payments) Regulations 2009 (S.I. 2009/1171) after regulation 3 insert— The amendment made by sub-paragraph (1) is to be treated as having been made by the Commissioners for Her Majesty’s Revenue and Customs under the powers to make regulations conferred by section 164(1)(f) and (2) of FA 2004.
In paragraph 31(8) of Schedule 36 to FA 2004 (“block transfer” has meaning given by paragraph 22(6) of Schedule 36 to FA 2004)—
after “22(6)” insert “and (6A)”, and
at the end insert “, and reading paragraph 22(6A)(c) as if its reference to paragraph 22(7)(a) were a reference to sub-paragraph (3) of this paragraph.”
In section 166 of FA 2004 (payments by registered pension schemes: the lump sum rule) after subsection (4) insert—
In section 255 (assessments under Part) in subsection (1) after paragraph (e) insert—.
Chapter 7 of Part 7 of ITEPA 2003 (employment income: income and exemptions relating to securities: SAYE option schemes) is amended as follows.
In the second column of the Table in section 98 of TMA 1970 (special returns etc) omit the entry for paragraph 52 of Schedule 5 to ITEPA 2003.
TCGA 1992 is amended as follows.
After section 330 of ITA 2007 insert— In section 284 of that Act (power to make regulations as to procedure), in subsection (1)(d), after “persons” include “(including nominees)”.
This paragraph applies in relation to any oil field whose development (in whole or in part) is authorised for the first time on or after 5 December 2013 but before 1 January 2015. At any time before 1 January 2015, the companies that are licensees in the oil field may jointly elect that the law is to have effect in relation to each of those companies as if the date specified in— were 1 January 2015. Expressions used in this paragraph and in Chapter 7 of Part 8 of CTA 2010 have the same meaning in this paragraph as in that Chapter.
At the end of Part 9 of ITTOIA 2005 (partnerships) insert—
The amendments made by this Part have effect for the tax year 2014-15 and subsequent tax years.
CEMA 1979 is amended as follows
Schedule 1 to FA 1997 (gaming duty: administration and enforcement) is amended as follows. In paragraph 12(4), for “the offences” substitute “the offence”. In paragraph 16, for “general betting duty” substitute “bingo duty”.
Where the monitored promoter referred to in section 248(2) is a partnership, paragraphs (a), (b) and (d) of that subsection are to be read as referring to details of the partnership (for instance, the name under which the business of the partnership is carried on), not to details of particular partners.
Section 1(1) (interpretation) is amended as follows. the provisions of Part 3 of the Finance Act 2014; In the definition of “revenue trader”—
In paragraph 34(2) of Schedule 36 to FA 2004 (modifications required by paragraph 31 in cases involving protected entitlements to lump sums) the sub-paragraphs treated as substituted in paragraph 2 of Schedule 29 to FA 2004 are amended as follows. In the substituted sub-paragraph (7A), in the definition of AC, for “(7AA) and (7B))” substitute “(7AA) to (7B))”. Where paragraph 1A applies to the lump sum, AC is the total of— Where paragraph 1B applies to the lump sum, AC is the total of—
In section 282(1) and (2) of FA 2004 (making of regulations and orders) for “Board of Inland Revenue” substitute “Commissioners for Her Majesty’s Revenue and Customs”.
In section 272 (trustees etc liable as scheme administrator) in subsection (4) after “applying in relation to the pension scheme” insert “or by reason of section 272C(7) applying in relation to a liability”.
In the title omit “Approved”.
In section 119A (increase in expenditure by reference to tax charged in relation to employment-related securities), in subsection (5A), for “unremitted foreign securities income” substitute “unchargeable, and unremitted chargeable, foreign securities income”.
After section 272 insert—
Section 516 (introduction to SAYE option schemes) is amended as follows. In the heading omit “Approved”. In subsection (1)— Omit subsection (2). In subsection (3)(c) for “approved” substitute “Schedule 3”. In subsection (4)—
Section 119B (section 119A: unremitted foreign securities income) is amended as follows. In the heading, for “unremitted foreign securities income” substitute “unchargeable, and unremitted chargeable, foreign securities income”. In subsection (1), for the words from “unremitted” to the end substitute — After subsection (1) insert— In subsection (2)— In subsection (3), after “unremitted” insert “chargeable”.
After section 118BC insert—
Section 118BD (inspection powers: supplementary provision) is amended as follows. In subsections (1) and (2), for “or 118BC,” substitute “, 118BC or 118BCA,”. In subsection (3), for “and 118BC” substitute “, 118BC and 118BCA”.
In section 273 (members liable as scheme administrator) after subsection (1) insert—
In section 517 (share options to which Chapter applies) in subsection (1)(a) for “an approved” substitute “a Schedule 3”.
In section 144ZB (exception to rule in section 144ZA), in subsection (2)(a), omit “or would, apart from section 474 of that Act, apply”.
Section 274 (supplementary) is amended as follows. In subsection (1)— In subsection (3)(b) after “272” insert “, 272C”.
Section 519 (no charge in respect of exercise of option) is amended as follows. In subsection (1)(a) for “approved” substitute “a Schedule 3 SAYE option scheme”. In subsection (3A)— In subsection (3H)— In subsection (5)(b)—
In section 149A (employment-related securities options), in subsection (1)(b), omit “or would, apart from section 474 of that Act, apply”.
In section 118G(1) (offence of failing comply with requirements imposed under Part 9A), for “or 118BC(4)” substitute “, 118BC(4) or 118BCA(4)”.
Sections 272A to 272C (as inserted by paragraph 19) have effect for cases where the relevant day falls on or after 1 September 2014.
Schedule 3 is amended as follows.
In section 149AA (restricted and convertible employment-related securities and employee shareholder shares), in subsection (7)—
after “include” insert —, and
at the end insert , or
In the title omit “Approved”.
In section 288 (interpretation), in subsection (1A), omit “or would, apart from section 474 of that Act, apply”.
In the cross-heading before paragraph 1 for “Approval of” substitute “Introduction to Schedule 3”.
In section 809K of ITA 2007 (remittance of income and gains: introduction), in subsection (1), for paragraph (c) substitute—.
Paragraph 1 (introduction) is amended as follows. For the purposes of the SAYE code an SAYE option scheme is a Schedule 3 SAYE option scheme if the requirements of Parts 2 to 7 of this Schedule are met in relation to the scheme. Sub-paragraph (A1) is subject to Part 8 of this Schedule which—
CTA 2009 is amended as follows.
In the title of Part 2 omit “for approval”.
In section 1017 (condition relating to employee’s income tax position for CT relief following acquisition of shares pursuant to option), omit subsections (2) to (4).
In the cross-heading before paragraph 4 omit “for approval”.
In section 1025 (additional CT relief available if shares are restricted shares), omit subsections (3) to (5).
For paragraph 5 (general restriction on contents of scheme) substitute—
In section 1032 (meaning of “chargeable event” for the purposes of additional CT relief in cases involving convertible securities), omit subsections (3) to (5).
Sub-paragraph (1) and the other paragraphs of this Part are subject to paragraph 37(6B).
In paragraph 25 (requirements as to contributions to savings arrangements) in sub-paragraph (3)(a) for “approved” substitute “Schedule 3”.
Paragraph 28 (requirements as to price for acquisition of shares) is amended as follows. If the scheme makes provision under sub-paragraph (3), the variation or variations made under that provision to take account of a variation in any share capital must (in particular) secure— Sub-paragraph (3) does not authorise any variation which would result in the requirements of the other paragraphs of this Schedule not being met in relation to the share option. Omit sub-paragraph (4).
In paragraph 32 (exercise of options: death) after “exercised” insert “at any time”.
In paragraph 34 (exercise of options: scheme-related employment ends) in sub-paragraph (5)—
omit paragraph (a) and the “or” after it, and
in paragraph (b) after “organiser” insert “where the transfer is not a relevant transfer within the meaning of the Transfer of Undertakings (Protection of Employment) Regulations 2006”.
Paragraph 37 (exercise of options: company events) is amended as follows. In sub-paragraph (1) after “(4)” insert “, (4A)”. In sub-paragraph (4)(b) for “an approved” substitute “a Schedule 3”. The relevant date for the purposes of this sub-paragraph is the date on which a non-UK company reorganisation arrangement applicable to or affecting— becomes binding on the shareholders covered by it. Sub-paragraphs (6B) to (6F) apply if the scheme makes provision under sub-paragraph (1) or (6). The scheme may provide that if, in consequence of a relevant event, shares in the company to which a share option relates no longer meet the requirements of Part 4 of this Schedule, the share option may be exercised under the provision made under sub-paragraph (1) or (6) (as the case may be) no later than 20 days after the day on which the relevant event occurs, notwithstanding that the shares no longer meet the requirements of Part 4 of this Schedule. In sub-paragraph (6B) “relevant event” means— Provision made under sub-paragraph (6B) may not authorise the exercise of a share option, as the case may be— The scheme may provide that a share option relating to shares in a company which is exercised during the period of 20 days ending with— is to be treated as if it had been exercised in accordance with the provision made under sub-paragraph (1) or (6) (as the case may be). If the scheme makes provision under sub-paragraph (6E) it must also provide that if— the exercise of the share option is to be treated as having had no effect.
Paragraph 38 (exchanges of options on company reorganisation) is amended as follows. In sub-paragraph (2) after paragraph (b) omit “or” and insert—. In sub-paragraph (3) after paragraph (b) omit “and” and insert—.
Paragraph 39 (requirements about share options granted in exchange) is amended as follows. In sub-paragraph (4)— For the purposes of this paragraph the market value of any shares is to be determined using a methodology agreed by Her Majesty’s Revenue and Customs.
For Part 8 substitute—
Paragraph 45 (power to require information) is amended as follows. An officer of Revenue and Customs may by notice require a person to provide the officer with any information— In sub-paragraph (2)(a)—
After paragraph 47 insert—
In paragraph 49 (index of defined expressions)—
omit the entry for “approved”, and
non-UK company reorganisation arrangement paragraph 47A Schedule 3 SAYE option scheme paragraph 1 and Part 8 of this Schedule
The Table lists the places where some of the expressions used in this Part are defined or otherwise explained. bet section 183 bet at fixed odds section 185 bet made for community benefit section 153 betting facilities section 189 bookmaker section 189 Chapter 1 pool bet section 134(1) to (4) Chapter 2 pool bet section 143(1) to (4) Chapter 1 stake fund section 134(5) Chapter 2 stake fund section 143(5) chargeable person section 155(2) the Commissioners section 189 excluded bet section 187(2) financial spread bet section 128(2) game of chance section 188(1)(b) and (3) gaming section 188(1)(a) gaming payment (in Chapter 3) section 159 gaming prize fund section 154(2) gaming provider section 155(1) general bet section 126 non-financial spread bet section 128(2) on-course bet section 187(1) operator section 189 ordinary Chapter 1 pool bet section 134(6) ordinary Chapter 2 pool bet section 143(6) ordinary gaming section 154(3) pool betting section 184 pooled prize gaming section 154(2) pooled stake Chapter 1 pool bet section 134(5) pooled stake Chapter 2 pool bet section 143(5) promoter section 189 provision of, and expenditure on, a prize (in sections 156 and 157) section 160 registrable person section 170(6) remote bet section 127A remote gaming section 154(1) remote operating licence section 189 spread bet section 128(1) stake money (in Chapter 1) section 139 stake money (in Chapter 2) section 148 UK person section 186 winnings (in Chapter 1) sections 140 and 189 winnings (in Chapter 2) sections 149 and 189
If any amount of stake money, gaming payment, winnings or prize is in a currency or method of payment other than sterling, it is to be treated for the purposes of this Part as being the equivalent amount in sterling.
The equivalent amount in sterling, in relation to any day, is to be determined by reference to—
the London closing exchange rate for the previous day, or
if no such rate exists, the rate specified in or determined in accordance with a notice published by the Commissioners.
This Part applies to limited liability partnerships as it applies to companies.
In its application to a limited liability partnership, references to a director of a company are references to a member of the limited liability partnership.
The imposition by this Part of general betting duty, pool betting duty, or remote gaming duty does not make lawful anything which is unlawful apart from this Part.
Regulations under this Part—
may make provision which applies generally or only for specified cases or purposes,
may make different provision for different cases or purposes,
may include incidental, consequential, transitional or transitory provision,
may confer a discretion on the Commissioners, and
may make provision by reference to things specified in a notice published by the Commissioners in accordance with the regulations (and not withdrawn by a subsequent notice).
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.
But the following provisions of this section apply instead of subsection (3) in the case of—
regulations under section 161(5) which have the effect of adding to the class of activities in respect of which remote gaming duty is chargeable;
regulations under section 127A(9) which have the effect of adding to the class of bets falling with the definition of “remote bet”;
regulations under section 159(6);
regulations under section 169(1) which have the effect of increasing the amount of duty that is chargeable in any case;
regulations under section 186(2) which have the effect of adding to the class of persons falling within the definition of “UK person”;
regulations under section 187(3).
In such a case—
the statutory instrument containing the regulations must be laid before the House of Commons, and
the regulations cease to have effect at the end of the period of 28 days beginning with the day on which the instrument was made unless, before the end of that period, the instrument is approved by a resolution of the House of Commons.
In reckoning the 28-day period, no account is to be taken of any time during which—
Parliament is dissolved or prorogued, or
the House of Commons is adjourned for more than 4 days.
If regulations cease to have effect as a result of subsection (5), that does not—
affect anything previously done under the regulations, or
prevent the making of new regulations.
A notice published by the Commissioners under this Part may be revised or replaced by them.
Schedule 28 contains consequential amendments and repeals.
Schedule 29 contains transitional and saving provisions.
This Part (except sections 164(2), 173 and 196 and Schedule 28) comes into force on the day on which this Act is passed.
The following provisions come into force on 1 December 2014—
section 164(2),
section 173, and
paragraphs 1 to 27 and 31 of Schedule 28 (and section 196 so far as relating to those paragraphs).
Paragraphs 28 to 30 of Schedule 28 (and section 196 so far as relating to those paragraphs) come into force on such day as the Treasury may by order made by statutory instrument appoint.
An order under subsection (3)—
may commence a provision generally or only for specified purposes, and
may appoint different days for different provisions or for different purposes.
Sections 125 to 182 have effect for the purposes of accounting periods beginning on or after 1 December 2014, and—
the charges under sections 127(1), 129(1), 130(1), 135(1) and 144(1) are on bets made on or after that date,
the charge under section 141(2) is in respect of bets determined on or after that date, and
the charge under section 155(1) is on games of chance that begin to be played on or after that date.
In this Part—
sections 200 to 203 set out the main defined terms used in the Part,
Chapter 2 makes provision for follower notices and for penalties if account is not taken of judicial rulings which lay down principles or give reasoning relevant to tax cases,
Chapter 3 makes—
provision for accelerated payments to be made on account of tax,
provision restricting the circumstances in which payments of tax can be postponed pending an appeal, ...
provision to enable a court to prevent repayment of tax, for the purpose of protecting the public revenue, and
provision restricting the surrender of losses and other amounts for the purposes of group relief.
Chapter 4—
makes special provision about the application of this Part in relation to stamp duty land tax and annual tax for enveloped dwellings,
confers a power to extend the provisions of this Part to other taxes, and
makes amendments consequential on this Part.
In this Part, “relevant tax” means—
income tax,
capital gains tax,
corporation tax, including any amount chargeable as if it were corporation tax or treated as if it were corporation tax,
inheritance tax,
apprenticeship levy,
stamp duty land tax, and
annual tax on enveloped dwellings.
This section applies for the purposes of this Part.
“Tax advantage” includes—
relief or increased relief from tax,
repayment or increased repayment of tax,
avoidance or reduction of a charge to tax or an assessment to tax,
avoidance of a possible assessment to 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.
Arrangements are “tax arrangements” 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.
“Arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).
This section applies for the purposes of this Part.
“Tax enquiry” means—
an enquiry under section 9A or 12AC of TMA 1970 (enquiries into self-assessment returns for income tax and capital gains tax), including an enquiry by virtue of notice being deemed to be given under section 9A of that Act by virtue of section 12AC(6) of that Act,
an enquiry under paragraph 5 of Schedule 1A to that Act (enquiry into claims made otherwise than by being included in a return),
an enquiry under paragraph 24 of Schedule 18 to FA 1998 (enquiry into company tax return for corporation tax etc), including an enquiry by virtue of notice being deemed to be given under that paragraph by virtue of section 12AC(6) of TMA 1970,
an enquiry under paragraph 12 of Schedule 10 to FA 2003 (enquiries into SDLT returns),
an enquiry under paragraph 8 of Schedule 33 to FA 2013 (enquiries into annual tax for enveloped dwellings returns), or
a deemed enquiry under subsection (6).
The period during which an enquiry is in progress—
begins with the day on which notice of enquiry is given, and
ends with the day on which the enquiry is completed.
Subsection (3) is subject to subsection (6).
In the case of inheritance tax, each of the following is to be treated as a return— and such a return is to be treated as made by the person in question.
an account delivered by a person under section 216 or 217 of IHTA 1984 (including an account delivered in accordance with regulations under section 256 of that Act);
a statement or declaration which amends or is otherwise connected with such an account produced by the person who delivered the account;
information or a document provided by a person in accordance with regulations under section 256 of that Act;
An enquiry is deemed to be in progress, in relation to a return to which subsection (5) applies, during the period which—
begins with the time the account is delivered or (as the case may be) the statement, declaration, information or document is produced, and
ends when the person is issued with a certificate of discharge under section 239 of that Act, or is discharged by virtue of section 256(1)(b) of that Act, in respect of the return (at which point the enquiry is to be treated as completed).
In this Part “tax appeal” means—
an appeal under section 31 of TMA 1970 (income tax: appeals against amendments of self-assessment, amendments made by closure notices under section 28A or 28B of that Act, etc), including an appeal under that section by virtue of regulations under Part 11 of ITEPA 2003 (PAYE),
an appeal under paragraph 9 of Schedule 1A to TMA 1970 (income tax: appeals against amendments made by closure notices under paragraph 7(2) of that Schedule, etc),
an appeal under section 705 of ITA 2007 (income tax: appeals against counteraction notices),
an appeal under paragraph 34(3) or 48 of Schedule 18 to FA 1998 (corporation tax: appeals against amendment of a company's return made by closure notice, assessments other than self-assessments, etc),
an appeal under section 750 of CTA 2010 (corporation tax: appeals against counteraction notices),
an appeal under section 222 of IHTA 1984 (appeals against HMRC determinations) other than an appeal made by a person against a determination in respect of a transfer of value at a time when a tax enquiry is in progress in respect of a return made by that person in respect of that transfer,
an appeal under section 114 of FA 2016 (apprenticeship levy: appeal against an assessment),
an appeal under paragraph 35 of Schedule 10 to FA 2003 (stamp duty land tax: appeals against amendment of self-assessment, discovery assessments, etc),
an appeal under paragraph 35 of Schedule 33 to FA 2013 (annual tax on enveloped dwellings: appeals against amendment of self-assessment, discovery assessments, etc), or
an appeal against any determination of—
an appeal within paragraphs (a) to (h), or
an appeal within this paragraph.
HMRC may give a notice (a “follower notice”) to a person (“P”) if Conditions A to D are met.
Condition A is that—
a tax enquiry is in progress into a return or claim made by P in relation to a relevant tax, or
P has made a tax appeal (by notifying HMRC or otherwise) in relation to a relevant tax, but that appeal has not yet been—
determined by the tribunal or court to which it is addressed, or
abandoned or otherwise disposed of.
Condition B is that the return or claim or, as the case may be, appeal is made on the basis that a particular tax advantage (“the asserted advantage”) results from particular tax arrangements (“the chosen arrangements”).
Condition C is that HMRC is of the opinion that there is a judicial ruling which is relevant to the chosen arrangements.
Condition D is that no previous follower notice has been given to the same person (and not withdrawn) by reference to the same tax advantage, tax arrangements, judicial ruling and tax period.
A follower notice may not be given after the end of the period of 12 months beginning with the later of—
the day on which the judicial ruling mentioned in Condition C is made, and
the day the return or claim to which subsection (2)(a) refers was received by HMRC or (as the case may be) the day the tax appeal to which subsection (2)(b) refers was made.
This section applies for the purposes of this Chapter.
“Judicial ruling” means a ruling of a court or tribunal on one or more issues.
A judicial ruling is “relevant” to the chosen arrangements if—
it relates to tax arrangements,
the principles laid down, or reasoning given, in the ruling would, if applied to the chosen arrangements, deny the asserted advantage or a part of that advantage, and
it is a final ruling.
A judicial ruling is a “final ruling” if it is—
a ruling of the Supreme Court, or
a ruling of any other court or tribunal in circumstances where—
no appeal may be made against the ruling,
if an appeal may be made against the ruling with permission, the time limit for applications has expired and either no application has been made or permission has been refused,
if such permission to appeal against the ruling has been granted or is not required, no appeal has been made within the time limit for appeals, or
if an appeal was made, it was abandoned or otherwise disposed of before it was determined by the court or tribunal to which it was addressed.
Where a judicial ruling is final by virtue of sub-paragraph (ii), (iii) or (iv) of subsection (4)(b), the ruling is treated as made at the time when the sub-paragraph in question is first satisfied.
A follower notice must—
identify the judicial ruling in respect of which Condition C in section 204 is met,
explain why HMRC considers that the ruling meets the requirements of section 205(3), and
explain the effects of sections 207 to 210.
Where a follower notice is given under section 204, P has 90 days beginning with the day that notice is given to send written representations to HMRC objecting to the notice on the grounds that—
Condition A, B or D in section 204 was not met,
the judicial ruling specified in the notice is not one which is relevant to the chosen arrangements, or
the notice was not given within the period specified in subsection (6) of that section.
HMRC must consider any representations made in accordance with subsection (1).
Having considered the representations, HMRC must determine whether to— and notify P accordingly.
confirm the follower notice (with or without amendment), or
withdraw the follower notice,
This section applies where a follower notice is given to P (and not withdrawn).
P is liable to pay a penalty if the necessary corrective action is not taken in respect of the denied advantage (if any) before the specified time.
In this Chapter “the denied advantage” means so much of the asserted advantage (see section 204(3)) as is denied by the application of the principles laid down, or reasoning given, in the judicial ruling identified in the follower notice under section 206(a).
The necessary corrective action is taken in respect of the denied advantage if (and only if) P takes the steps set out in subsections (5) and (6).
The first step is that—
in the case of a follower notice given by virtue of section 204(2)(a), P amends a return or claim to counteract the denied advantage;
in the case of a follower notice given by virtue of section 204(2)(b), P takes all necessary action to enter into an agreement with HMRC (in writing) for the purpose of relinquishing the denied advantage.
The second step is that P notifies HMRC—
that P has taken the first step, and
of the denied advantage and (where different) the additional amount which has or will become due and payable in respect of tax by reason of the first step being taken.
In determining the additional amount which has or will become due and payable in respect of tax for the purposes of subsection (6)(b), it is to be assumed that, where P takes the necessary action as mentioned in subsection (5)(b), the agreement is then entered into.
In this Chapter—
“tax adviser” means a person appointed to give advice about the tax affairs of another person (whether appointed directly by that person or by another tax adviser of that person).
In CEMA 1979, after section 60A (inserted by paragraph 3 above) insert—
Part 1 of the Schedule (registration) is amended as follows. In paragraph 2 (persons who may be registered)— In paragraph 4 (registration request)— Omit paragraph 5 (date on which registration takes effect) and the heading before it. In paragraph 7 (obligation to notify changes)— In paragraph 8 (cancellation of registration)— Omit paragraph 9 (registration after cancellation for persistent default) and the heading before it. For the title substitute—.
The Commissioners may give a breach notice to the holder of a remote operating licence if it appears to them that there has been a breach of— The breach notice must specify— The Commissioners may by regulations—
The Commissioners may direct the Gambling Commission to reinstate a remote operating licence suspended pursuant to a direction under paragraph 3 if the Commissioners are satisfied that— Where the holder of a suspended licence requests the Commissioners to give a direction under this paragraph and the Commissioners refuse to give the direction, they must notify the holder of their decision. That decision is to be treated as a relevant decision for the purposes of sections 15A and 15C to 16 of FA 1994 (customs and excise reviews and appeals) and, accordingly, the notice under sub-paragraph (2) must include an offer of a review of the decision under section 15A of that Act. Only the holder of the suspended licence may bring an appeal under section 16 of FA 1994 as applied by sub-paragraph (3).
A notice under this Schedule— The fact that a breach notice specifying one or more breaches has been given to the holder of a remote operating licence does not prevent a breach notice specifying other breaches being given to the holder of the licence.
This paragraph applies for the purposes of this Schedule. “Partnership return” means a return in pursuance of a notice under section 12AA(2) or (3) of TMA 1970. “The representative partner”, in relation to a partnership return, means the person who was required by a notice served under or for the purposes of section 12AA(2) or (3) of TMA 1970 to deliver the return. “Relevant partner”, in relation to a partnership return, means a person who was a partner in the partnership to which the return relates at any time during the period in respect of which the return was required. References to a “successor”, in relation to the representative partner, are to be construed in accordance with section 12AA(11) of TMA 1970.
The partner payment notice given to a relevant partner must— The payment required to be made under paragraph 6 is an amount equal to the amount which a designated HMRC officer determines, to the best of the officer’s information and belief, as the understated partner tax. “The understated partner tax” means the additional amount that would become due and payable by the relevant partner in respect of tax if— “The denied advantage”— If a notice is given by reason of two or all of the requirements of paragraph 3(5) being met, the payment specified under sub-paragraph (1)(b) is to be determined as if the notice were given by virtue of such one of them as is stated in the notice as being used for this purpose.
Section 226 (penalty for failure to make accelerated payment on time) applies to accelerated partner payments as if—
references in that section to the accelerated payment were to the accelerated partner payment,
references to P were to the relevant partner, and
“the payment period” had the meaning given by paragraph 6(5).
Accordingly, for the purposes of this Part of this Act a partnership is taken— but see sub-paragraph (3). In sub-paragraph (1), “the members” means those who were the members of the partnership or (in the case of a limited partnership) the general partners of the partnership at the time when the act was done or the failure to comply occurred. Where a member of a partnership (“M”) has done, or failed to do, an act at any time (“the earlier time”), the partnership is not treated at any later time as having done, or failed to do, that act unless— is a member of the partnership at the later time. In this paragraph “firm” has the same meaning as in the Partnership Act 1890.
A monitoring notice that is given to a partnership must state that it is a partnership monitoring notice.
Sub-paragraphs (2) and (3) apply where— An authorised officer may give P a monitoring notice. If P is carrying on a business as a promoter in partnership with one or more other persons, and is a controlling member of that partnership (“the new partnership”), an authorised officer may give a monitoring notice to the new partnership. A monitoring notice given under sub-paragraph (3) ceases to have effect if P ceases to be a member of the new partnership.
In section 1292 of CTA 2009 (employee benefit contributions: provision of qualifying benefits), after subsection (6A) insert— The amendment made by this paragraph has effect in relation to payments made on or after 1 October 2014.
20A Excise duties Return under regulations under section 60A of the Customs and Excise Management Act 1979
Part 2 of the Schedule (obligations following registration, etc) is amended as follows. In paragraph 10 (liability for VAT)— In paragraph 11 (obligation to submit special accounting returns)— In paragraph 12 (further obligations with respect to special accounting returns)— In paragraph 13 (payment of VAT), in sub-paragraph (1), for the words from “at” to “respect of” substitute “by the deadline for submitting the return, pay to the Commissioners the amount of VAT that the person is liable, in accordance with paragraph 10, to pay on qualifying supplies treated as made by the person in”. In paragraph 15 (Commissioners’ power to request production of records), in sub-paragraph (2)(b), for “Article 26c” substitute “Section 2 of Chapter 6 of Title XII of the VAT Directive”. After paragraph 15 insert— For the title substitute—.
An appeal tribunal may direct the Gambling Commission to reinstate a remote operating licence suspended pursuant to a direction under paragraph 3 if the tribunal gives permission to appeal against a decision to give a final notice under section 16(1F) of FA 1994 (appeal out of time). The reinstatement of a remote operating licence pursuant to a direction given under sub-paragraph (1) does not prevent the Commissioners from giving a further direction under paragraph 3(1) in reliance on the final notice if— In this paragraph “appeal tribunal” has the same meaning as in Chapter 2 of Part 1 of FA 1994.
References in this Schedule to the holder of a remote operating licence are to the person to whom the licence is or was issued.
11GA Excise duties Amount payable under regulations under section 60A of the Customs and Excise Management Act 1979 (except an amount falling within item 17A, 23 or 24). The date determined by or under regulations under section 60A of the Customs and Excise Management Act 1979 as the date by which the amount must be paid
For Part 3 of the Schedule (understatements and overstatements of UK VAT) substitute—
Part 4 of the Schedule (application of provisions relating to VAT) is amended as follows. Paragraph 17 (registration under VATA 1994) is renumbered as sub-paragraph (1) of that paragraph. Where a participant in the special scheme (“the scheme participant”) makes relevant supplies, it is to be assumed for all purposes of this Act relating to the determination of— that the scheme participant is registered under this Act. Supplies of scheme services made by the scheme participant are “relevant supplies” if— In paragraph 18 (de-registration), in paragraph (b), for “Article 26c,” substitute “Section 2 of Chapter 6 of Title XII of the VAT Directive,”. After paragraph 18 insert— In paragraph 20 (appeals)— Omit paragraph 21 (payments on account of non-UK VAT to other member States) and the heading before it (but see paragraph 7(7) of this Schedule). For the title substitute—
In Part 5 of the Schedule (supplementary), paragraph 23 (interpretation) is amended as follows. In sub-paragraph (1)— In sub-paragraph (2)(a), for the words from “virtue” to “2002 VAT Directive),” substitute “paragraph 15 of Schedule 4A (place of supply of electronic, telecommunication and broadcasting services),”. Omit sub-paragraph (3).
No enactment limiting the time during which amendments may be made to returns or claims operates to prevent P taking the first step mentioned in subsection (5)(a) before the tax enquiry is closed (whether or not before the specified time).
No appeal may be brought, by virtue of a provision mentioned in subsection (11), against an amendment made by a closure notice in respect of a tax enquiry to the extent that the amendment takes into account an amendment made by P to a return or claim in taking the first step mentioned in subsection (5)(a) (whether or not that amendment was made before the specified time).
The provisions are—
section 31(1)(b) or (c) of TMA 1970,
paragraph 9 of Schedule 1A to TMA 1970,
paragraph 34(3) of Schedule 18 to FA 1998,
paragraph 35(1)(b) of Schedule 10 to FA 2003, and
paragraph 35(1)(b) of Schedule 33 to FA 2013.
The penalty under section 208 is 30% of the value of the denied advantage.
Schedule 30 contains provision about how the denied advantage is valued for the purposes of calculating penalties under this section.
The penalty under section 208A is 20% of the value of the denied advantage.
Where P before the relevant time — in subsections (1) , (1A) and (2) the references to the denied advantage are to be read as references to the remainder of the denied advantage.
amends a return or claim to counteract part of the denied advantage only, or
takes all necessary action to enter into an agreement with HMRC (in writing) for the purposes of relinquishing part of the denied advantage only,
The “relevant time” means—
in the case of a penalty under section 208, the specified time;
in the case of a penalty under section 208A, the day after the end of the appeal period.
“The appeal period” has the same meaning for the purposes of this section as it has for the purposes of section 208A (see section 208A(10) and (11)).
In the case of a follower notice given by virtue of section 204(2)(a) in relation to a tax enquiry into a return or claim made by P, this section applies where—
P makes a tax appeal addressed to the tribunal in relation to the return or claim, and
P is assessed to a penalty under section 208.
In the case of a follower notice given by virtue of section 204(2)(b) in relation to a tax appeal made by P, this section applies where—
the tax appeal is addressed to the tribunal, and
P is assessed to a penalty under section 208.
P is liable to pay a penalty (in addition to the penalty under section 208) if P or P's representative is found to have acted unreasonably in bringing or conducting relevant proceedings.
For the purposes of subsection (3), P or P's representative is found to have acted unreasonably in bringing or conducting relevant proceedings if (and only if) subsection (5) or (6) applies.
This subsection applies if—
the proceedings are struck out—
because there is no reasonable prospect of P's case, or part of it, succeeding, or
because of something that P or P's representative has done (or not done),
the appeal period has ended, and
the proceedings have not been reinstated or (where the strike out was not automatic) the decision to strike out the proceedings has not been set aside or overturned on appeal.
This subsection applies if—
on an application by HMRC, the tribunal to which the proceedings are addressed makes a declaration that P or P's representative acted unreasonably in bringing or conducting the proceedings,
the appeal period has ended, and
the decision to make the declaration has not been set aside or overturned on appeal.
The powers of the tribunal in relation to relevant proceedings are to be taken to include the power to make a declaration for the purposes of subsection (6)(a).
For the purposes of this section, the following are “relevant proceedings” in relation to P—
where the whole of the proceedings on P's tax appeal relate to the chosen arrangements, the whole of those proceedings;
where part only of the proceedings on P's tax appeal relates to the chosen arrangements, that part of those proceedings;
proceedings before the Upper Tribunal on any further appeal by P in relation to relevant proceedings within paragraph (a) or (b) (where those proceedings were determined by the First-tier Tribunal).
For the purposes of subsection (8), P's tax appeal is the tax appeal mentioned in subsection (1)(a) or (2)(a) (as the case may be).
For the purposes of this section, “the appeal period” is—
the period during which an appeal could be brought against the striking out of the proceedings or, as the case may be, the decision to make the declaration under subsection (6)(a) (ignoring any possibility of an appeal out of time), or
where an appeal mentioned in paragraph (a) has been brought, the period during which that appeal has not been finally determined, withdrawn or otherwise disposed of.
For the purposes of subsection (10), an appeal includes an application to reinstate proceedings that have been struck out or for the tribunal to set aside its decision.
In this section, “tribunal” means the First-tier Tribunal or Upper Tribunal.
Where— HMRC may reduce the amount of that penalty to reflect the quality of that co-operation.
P is liable to pay a penalty under section 208 of the amount specified in section 209(1),
the penalty has not yet been assessed, and
P has co-operated with HMRC,
In relation to co-operation, “quality” includes timing, nature and extent.
P has co-operated with HMRC only if P has done one or more of the following—
provided reasonable assistance to HMRC in quantifying the tax advantage;
counteracted the denied advantage;
provided HMRC with information enabling corrective action to be taken by HMRC;
provided HMRC with information enabling HMRC to enter an agreement with P for the purpose of counteracting the denied advantage;
allowed HMRC to access tax records for the purpose of ensuring that the denied advantage is fully counteracted.
But nothing in this section permits HMRC to reduce a penalty to less than 10% of the value of the denied advantage.
Where a person is liable for a penalty under section 208, HMRC may assess the penalty.
Where HMRC assess the penalty, HMRC must—
notify the person who is liable for the penalty, and
state in the notice a tax period in respect of which the penalty is assessed.
A penalty under section 208 must be paid before the end of the period of 30 days beginning with the day on which the person is notified of the penalty under subsection (2).
An assessment—
is to be treated for procedural purposes in the same way as an assessment to tax (except in respect of a matter expressly provided for by this Chapter),
may be enforced as if it were an assessment to tax, and
may be combined with an assessment to tax.
No penalty under section 208 may be notified under subsection (2) later than—
in the case of a follower notice given by virtue of section 204(2)(a) (tax enquiry in progress), the end of the period of 90 days beginning with the day the tax enquiry is completed, and
in the case of a follower notice given by virtue of section 204(2)(b) (tax appeal pending), the end of the period of 90 days beginning with the earliest of—
the day on which P takes the necessary corrective action (within the meaning of section 208(4)),
the day on which a ruling is made on the tax appeal by P, or any further appeal in that case, which is a final ruling (see section 205(4)), and
the day on which that appeal, or any further appeal, is abandoned or otherwise disposed of before it is determined by the court or tribunal to which it is addressed.
In this section a reference to an assessment to tax, in relation to inheritance tax, is to a determination.
Subsection (2) applies where—
two or more penalties are incurred by the same person and fall to be determined by reference to an amount of tax to which that person is chargeable,
one of those penalties is incurred under section 208, and
one or more of the other penalties are incurred under a relevant penalty provision.
The aggregate of the amounts of the penalties mentioned in subsection (1)(b) and (c) and any penalty under section 208A that is additional to the penalty mentioned in subsection (1)(b), so far as determined by reference to that amount of tax, must not exceed—
the relevant percentage of that amount, or
in a case where at least one of the penalties is under paragraph 5(2)(b) or 6(3)(b), (4)(b) or (5)(b) of Schedule 55 to FA 2009 or paragraph 3(3)(b) or (5)(b) or 20(4) of Schedule 25 to FA 2021, £300 (if greater).
In the application of section 97A of TMA 1970 (multiple penalties), no account is to be taken of a penalty under section 208 or 208A.
“Relevant penalty provision” means—
Schedule 24 to FA 2007 (penalties for errors),
Schedule 41 to FA 2008 (penalties: failure to notify etc), ...
Schedule 55 to FA 2009 (penalties for failure to make returns etc) , ...
Part 5 of Schedule 18 to FA 2016 (serial tax avoidance) , or
section 212A of FA 2013 (general anti-abuse rule)., or
Schedule 25 to FA 2021 (penalties for deliberately withholding information).
“The relevant percentage” means—
200% in a case where at least one of the penalties is determined by reference to the percentage in—
paragraph 4(4)(c) of Schedule 24 to FA 2007,
paragraph 6(4)(a) of Schedule 41 to FA 2008, or
paragraph 6(3A)(c) of Schedule 55 to FA 2009, or
paragraph 3(4)(c) of Schedule 25 to FA 2021,
150% in a case where paragraph (a) does not apply and at least one of the penalties is determined by reference to the percentage in—
paragraph 4(3)(c) of Schedule 24 to FA 2007,
paragraph 6(3)(a) of Schedule 41 to FA 2008, or
paragraph 6(3A)(b) of Schedule 55 to FA 2009, or
paragraph 3(4)(b) of Schedule 25 to FA 2021,
140% in a case where none of paragraphs (a) to (ba) applies and at least one the penalties is determined by reference to the percentage in—
paragraph 4(4)(b) of Schedule 24 to FA 2007,
paragraph 6(4)(b) of Schedule 41 to FA 2008,
paragraph 6(4A)(c) of Schedule 55 to FA 2009, or
paragraph 3(6)(c) of Schedule 25 to FA 2021,
125% in a case where neither paragraph (a) nor paragraph (b) applies and at least one of the penalties is determined by reference to the percentage in—
paragraph 4(2)(c) of Schedule 24 to FA 2007,
paragraph 6(2)(a) of Schedule 41 to FA 2008, or
paragraph 6(3A)(a) of Schedule 55 to FA 2009,
105% in a case where none of paragraphs (a) to (c) applies and at least one of the penalties is determined by reference to the percentage in—
paragraph 4(3)(b) of Schedule 24 to FA 2007,
paragraph 6(3)(b) of Schedule 41 to FA 2008,
paragraph 6(4A)(b) of Schedule 55 to FA 2009, and or
paragraph 3(6)(b) of Schedule 25 to FA 2021, and
in any other case, 100%.
After notification of an assessment has been given to a person under section 211(2) or 211A(1), the assessment may not be altered except in accordance with this section or on appeal.
A supplementary assessment may be made in respect of a penalty if an earlier assessment operated by reference to an underestimate of the value of the denied advantage.
An assessment or supplementary assessment may be revised as necessary if it operated by reference to an overestimate of the denied advantage; and, where more than the resulting assessed penalty has already been paid by the person to HMRC, the excess must be repaid.
Where a person is liable for a penalty under section 208A, HMRC must—
assess the penalty,
notify the person who is liable for the penalty, and
state in the notice a tax period in respect of which the penalty is assessed.
A penalty under section 208A must be paid before the end of the period of 30 days beginning with the day on which the person is notified of the penalty under subsection (1).
Subsection (4) of section 211 applies to an assessment under this section as it applies to an assessment under that section.
An assessment of a penalty under section 208A must be made before the end of the period of 90 days beginning with the day after the end of the appeal period.
“The appeal period” has the same meaning for the purposes of this section as it has for the purposes of section 208A (see section 208A(10) and (11)).
P may appeal against a decision of HMRC that a penalty is payable by P under section 208.
P may appeal against a decision of HMRC as to the amount of a penalty payable by P under section 208.
The grounds on which an appeal under subsection (1) may be made include in particular—
that Condition A, B or D in section 204 was not met in relation to the follower notice,
that the judicial ruling specified in the notice is not one which is relevant to the chosen arrangements,
that the notice was not given within the period specified in subsection (6) of that section, or
that it was reasonable in all the circumstances for P not to have taken the necessary corrective action (see section 208(4)) in respect of the denied advantage.
An appeal under this section must be made within the period of 30 days beginning with the day on which notification of the penalty is given under section 211.
An appeal under this section is to be treated in the same way as an appeal against an assessment to the tax concerned (including by the application of any provision about bringing the appeal by notice to HMRC, about HMRC's review of the decision or about determination of the appeal by the First-tier Tribunal or Upper Tribunal).
Subsection (5) does not apply—
so as to require a person to pay a penalty before an appeal against the assessment of the penalty is determined, or
in respect of any other matter expressly provided for by this Part.
In this section a reference to an assessment to tax, in relation to inheritance tax, is to a determination.
On an appeal under subsection (1), the tribunal may affirm or cancel HMRC's decision.
On an appeal under subsection (2), the tribunal may—
affirm HMRC's decision, or
substitute for HMRC's decision another decision that HMRC had power to make.
If the tribunal cancels a decision of HMRC that a penalty is payable by P under section 208, any penalty additional to that penalty to which P is liable under section 208A is also cancelled.
The cancellation under subsection (8) of HMRC's decision on the ground specified in subsection (3)(d) does not affect the validity of the follower notice, or of any accelerated payment notice or partner payment notice under Chapter 3 related to the follower notice.
In this section “tribunal” means the First-tier Tribunal or Upper Tribunal (as appropriate by virtue of subsection (5)).
P may appeal against a decision of HMRC that a penalty is payable by P under section 208A.
P may appeal against a decision of HMRC as to the amount of a penalty payable by P under section 208A.
An appeal under subsection (1) may be made only on one or more of the following grounds—
that section 208A did not apply when the decision was made or no longer applies;
that the condition in section 208A(3) was not met when the decision was made or is no longer met;
that the penalty was not assessed before the end of the period mentioned in section 211A(4).
An appeal under this section must be made within the period of 30 days beginning with the day on which notification of the penalty is given under section 211A.
On an appeal under subsection (1), the tribunal may affirm or cancel HMRC's decision.
On an appeal under subsection (2), the tribunal may—
affirm HMRC's decision, or
substitute for HMRC's decision another decision that HMRC had power to make.
Subsections (5) to (7) of section 214 apply to an appeal under this section as they apply to an appeal under that section.
In this section “tribunal” has the meaning it has for the purposes of section 214 (see section 214(5) and (11)).
Schedule 31 makes provision about the application of this Chapter in relation to partners and partnerships.
This section applies where a final judicial ruling (“the original ruling”) is the subject of an appeal by reason of a court or tribunal granting leave to appeal out of time.
If a follower notice has been given identifying the original ruling under section 206(a), the notice is suspended until such time as HMRC notify P that—
the appeal has resulted in a judicial ruling which is a final ruling, or
the appeal has been abandoned or otherwise disposed of (before it was determined).
Accordingly the period during which the notice is suspended does not count towards the periods mentioned in section 208(8).
When a follower notice is suspended under subsection (2), HMRC must notify P as soon as reasonably practicable.
If the new final ruling resulting from the appeal is not a judicial ruling which is relevant to the chosen arrangements (see section 205), the follower notice ceases to have effect at the end of the period of suspension.
In any other case, the follower notice continues to have effect after the end of the period of suspension and, in a case within subsection (2)(a), is treated as if it were in respect of the new final ruling resulting from the appeal.
The notice given under subsection (2) must—
state whether subsection (5) or (6) applies, and
where subsection (6) applies in a case within subsection (2)(a), make any amendments to the follower notice required to reflect the new final ruling.
No new follower notice may be given in respect of the original ruling unless the appeal has been abandoned or otherwise disposed of before it is determined by the court or tribunal to which it is addressed.
Nothing in this section prevents a follower notice being given in respect of a new final ruling resulting from the appeal.
Where the appeal is abandoned or otherwise disposed of before it is determined by the court or tribunal to which it is addressed, for the purposes of the original ruling the period beginning when leave to appeal out of time was granted, and ending when the appeal is disposed of, does not count towards the period of 12 months mentioned in section 204(6).
In the case of judicial rulings made before the day on which this Act is passed, this Chapter has effect as if for section 204(6) there were substituted—
Accordingly, the reference in section 216(10) to the period of 12 months includes a reference to the period of 24 months mentioned in the version of section 204(6) set out in subsection (1) above.
For the purposes of this Chapter—
in relation to Chapter 3, has the meaning given by section 219.
Section 188 (relief for members’ contributions) is amended as follows. In subsection (2) after “(3)” insert “or (3A)”. After subsection (3) insert—
Schedule 5 to ITEPA 2003 (enterprise management incentives) is amended as follows.
Section 357 (other definitions) is renumbered as section 356AA.
The Commissioners for Her Majesty’s Revenue and Customs may by regulations amend any Act— “Regulated firm” means a firm carrying on a regulated activity within the meaning of the Financial Services and Markets Act 2000 (see section 22 of that Act); and “firm” has the same meaning as in ITTOIA 2005 (see section 847 of that Act) (and includes a limited liability partnership in relation to which section 863(1) of that Act applies). Regulations under this paragraph may—
Section 8 (indexation) does not have effect by virtue of any difference between the consumer prices index for the month of September in 2014, 2015 or 2016 and the previous September.
In section 216(6) (time for delivery of accounts), before paragraph (b) insert—. In section 226 (payment of tax: general rules), after subsection (3B) insert— In section 233 (interest on unpaid tax)— The amendments made by this paragraph have effect in relation to chargeable transfers made on or after 6 April 2014.
The final accounting period for the purposes of a person’s liability to general betting duty, pool betting duty or remote gaming duty under BGDA 1981 ends with 30 November 2014 (whether or not it would otherwise have ended with that day). The Commissioners may by direction make transitional arrangements for the purposes of the final accounting period, and those arrangements may (in particular)— A direction under this paragraph—
In this paragraph “transitional accounting period” means an accounting period— Where a bet to which section 2(1) of BGDA 1981 (general bets with bookmaker in the United Kingdom) applies is made with a bookmaker before 1 December 2014, amounts paid by the bookmaker in a transitional accounting period by way of winnings to the person who made the bet are to be included among the amounts aggregated at Step 2 in section 131 of this Act in calculating the bookmaker’s ordinary profits in respect of general bets for that period. Where— amounts paid by the bookmaker in a transitional accounting period by way of winnings to the person who made the bet are to be included among the amounts aggregated at Step 2 in section 131 of this Act in calculating the bookmaker’s ordinary profits in respect of financial spread bets for that period. Where— amounts paid by the bookmaker in a transitional accounting period by way of winnings to the person who made the bet are to be included among the amounts aggregated at Step 2 in section 131 of this Act in calculating the bookmaker’s ordinary profits in respect of non-financial spread bets for that period. Where a bet by way of pool betting to which section 4(1) of BGDA 1981 applies is made before 1 December 2014 by means of facilities provided by a person (“the provider”), amounts paid by the provider in a transitional accounting period by way of winnings to the person who made the bet are to be included among the amounts aggregated under section 137(b) of this Act in calculating the provider’s profits for that period in respect of ordinary Chapter 1 pool bets. Where a dutiable pool bet (as defined by section 7B of BGDA 1981) is made before 1 December 2014, amounts paid— in a transitional accounting period by way of winnings to the person who made the bet are to be included among the amounts aggregated under section 146(b) of this Act in calculating the profits of the operator, or (as the case may be) the promoter, for that period in respect of ordinary Chapter 2 pool bets. Section 5(6) of BGDA 1981 (meaning of “paid”) applies for the purposes of sub-paragraphs (2) to (5). Section 7F of BGDA 1981 (meaning of “paid”) applies for the purposes of sub-paragraph (6).
In this paragraph “transitional accounting period” means an accounting period— For the purposes of this paragraph, a bet is “non-dutiable” if— Where— amounts paid by the bookmaker in a transitional accounting period by way of winnings to the person who made the bet may be included among the amounts aggregated at Step 2 in section 131 of this Act in calculating the bookmaker’s ordinary profits in respect of general bets for that period. Where— amounts paid by the bookmaker in a transitional accounting period by way of winnings to the person who made the bet may be included among the amounts aggregated at Step 2 in section 131 of this Act in calculating the bookmaker’s ordinary profits in respect of financial spread bets for that period. Where— amounts paid by the bookmaker in a transitional accounting period by way of winnings to the person who made the bet may be included among the amounts aggregated at Step 2 in section 131 of this Act in calculating the bookmaker’s ordinary profits in respect of non-financial spread bets for that period. Where— amounts paid by the bookmaker in a transitional accounting period by way of winnings in respect of the bet may be included among the amounts aggregated under section 137(b) of this Act in calculating the bookmaker’s profits for that period in respect of ordinary Chapter 1 pool bets. Where— amounts paid by or on behalf of the bookmaker in a transitional accounting period by way of winnings in respect of the bet may be included among the amounts aggregated under section 146(b) of this Act in calculating the bookmaker’s profits for that period in respect of ordinary Chapter 2 pool bets. Section 140 of this Act (meaning of “winnings”) applies for the purposes of sub-paragraphs (3) to (6). Section 149 of this Act (meaning of “winnings”) applies for the purposes of sub-paragraph (7).
To the extent that the denied advantage has the result that a loss is wrongly recorded for purposes of direct tax and the loss has been wholly used to reduce the amount due or payable in respect of tax, the value of the denied advantage is determined in accordance with paragraph 2. To the extent that the denied advantage has the result that a loss is wrongly recorded for purposes of direct tax and the loss has not been wholly used to reduce the amount due or payable in respect of tax, the value of the denied advantage is— Sub-paragraphs (1) and (2) apply both— To the extent that a denied advantage creates or increases an aggregate loss recorded for a group of companies— To the extent that the denied advantage results in a loss, the value of it is nil where, because of the nature of the loss or P’s circumstances, there is no reasonable prospect of the loss being used to support a claim to reduce a tax liability (of any person).
This paragraph applies for the purposes of this Schedule. “Partnership follower notice” means a follower notice given by reason of— “Partnership return” means a return in pursuance of a notice under section 12AA(2) or (3) of TMA 1970. “The representative partner”, in relation to a partnership return, means the person who was required by a notice served under or for the purposes of section 12AA(2) or (3) of TMA 1970 to deliver the return. “Relevant partner”, in relation to a partnership return, means a person who was a partner in the partnership to which the return relates at any time during the period in respect of which the return was required. References to a “successor”, in relation to the representative partner are to be construed in accordance with section 12AA(11) of TMA 1970.
This paragraph applies in relation to a partnership follower notice. Section 209 applies subject to the following modifications— For the purposes of sub-paragraph (2), a relevant partner’s appropriate share is— Where— section 210(1) does not apply, but HMRC may reduce the total amount of the penalties determined in accordance with sub-paragraph (2)(a) to reflect the quality of that co-operation. Nothing in sub-paragraph (4) permits HMRC to reduce the total amount of the penalties to less than 4% of the value of the denied advantage (as determined in accordance with sub-paragraph (2)(c)). For the purposes of section 212, a penalty imposed on a relevant partner by virtue of paragraph 4(2) is to be treated as if it were determined by reference to such additional amount of tax as is due and payable by the relevant partner as a result of the counteraction of the denied advantage. The right of appeal under section 214 extends to— but not to a decision as to the appropriate share of, or the amount of a penalty payable by, a relevant partner. Section 214(3) applies to an appeal by virtue of sub-paragraph (7)(a) as it applies to an appeal under section 214(1). Section 214(8) applies to an appeal by virtue of sub-paragraph (7)(a), and section 214(9) to an appeal by virtue of sub-paragraph (7)(b). An appeal by virtue of sub-paragraph (7) may be brought only by the representative partner or, if that partner is no longer available, the person who is for the time being the successor of that partner. The Treasury may by order made by statutory instrument vary the rates for the time being specified in sub-paragraphs (2)(a) and (5). Any statutory instrument containing an order under sub-paragraph (10) is subject to annulment in pursuance of a resolution of the House of Commons.
In this Schedule a reference to an “information duty” is to a duty arising under any of the following provisions to provide information or produce a document—
section 255 (duty to provide information or produce document);
section 257 (ongoing duty to provide information);
section 258 (duty of person dealing with non-resident promoter);
section 259 (monitored promoter: duty to provide information about clients);
section 260 (intermediaries: duty to provide information about clients);
section 261 (duty to provide information about clients following enquiry);
section 262 (information required for monitoring compliance with conduct notice);
section 263 (information about monitored promoter’s address).
If— the person is liable to a penalty not exceeding the relevant sum. Condition A is that the inaccuracy is careless or deliberate. An inaccuracy is careless if it is due to a failure by the person to take reasonable care. For the purpose of determining whether or not a person who is a monitored promoter took reasonable care, reliance on legal advice is to be disregarded if either— For the purpose of determining whether or not a person who complies with a duty under section 258 took reasonable care, reliance on legal advice is to be disregarded if the advice was given or procured by the monitored promoter mentioned in subsection (1) of that section. Condition B is that the person knows of the inaccuracy at the time the information is provided or the document produced but does not inform HMRC at that time. Condition C is that the person— The “relevant sum” means— If the information or document contains more than one inaccuracy, one penalty is payable under this paragraph whatever the number of inaccuracies.
A person must not conceal, destroy or otherwise dispose of, or arrange for the concealment, destruction or disposal of, a document if an officer of Revenue and Customs has informed the person in writing that the person is, or is likely, to be given a notice under 255, 257 or 262 the effect of which will, or is likely to, require the production of the document. Sub-paragraph (1) does not apply if the person acts— A person who conceals, destroys or otherwise disposes of, or arranges for the concealment, destruction or disposal of, a document in breach of sub-paragraph (1), is taken to have failed to comply with the duty to produce the document under the provision concerned (but see sub-paragraph (4)). If a person conceals, destroys or otherwise disposes of, or arranges for the concealment, destruction or disposal of, a document which is subject to a duty under more than one of the provisions mentioned in sub-paragraph (1) then—
Part 10 of TMA 1970 (penalties, etc) has effect as if—
the reference in section 100(1) to the Taxes Acts were read as a reference to the Taxes Acts and this Schedule,
in subsection (2) of section 100, there were inserted a reference to a penalty under this Schedule, other than a penalty under paragraph 3 of this Schedule in respect of which the relevant sum is £600.
A person is not liable to a penalty under— by reason of any failure to include in any return or account a reference number required by section 253.
Schedule 24 to the FA 2007 (penalties for errors),
Part 7 of FA 2004, or
any other provision which is prescribed,
In section 217D of TCGA 1992 (disposal of assets on union, amalgamation or transfer of engagements), in subsection (3), after paragraph (a) insert—.
Section 266A (member’s liability) is amended as follows. In subsection (1)(b) for the words from “an order” to “Regulator)” substitute “a relevant order”. In subsection (5), in the definition of “ASO”— After subsection (6) insert—
Paragraph 44 (notice of option to be given to HMRC) is amended as follows. In sub-paragraph (2) omit paragraph (b) and the “and” before it. In sub-paragraph (4) for “each of sub-paragraphs (5) and (6)” substitute “sub-paragraph (5)”. In sub-paragraph (5)— The employer company must— The notice, and any information supporting it, must be given electronically. But, if an officer of Revenue and Customs considers it appropriate to do so, the officer may allow the employer company to give the notice or any supporting information in another way; and, if the officer does so, the notice or information must be given in that other way. The Commissioners for Her Majesty’s Revenue and Customs—
After Chapter 7 insert—
Section 266B (scheme’s liability) is amended as follows. In subsection (1)(b) for the words from “an order” to “Regulator)” substitute “a relevant order”. In subsection (3), in the definition of “ASO”— After subsection (4) insert—
For paragraph 52 (annual returns) substitute—
The amendments made by paragraphs 13 to 15 have effect in relation to orders made on or after 1 September 2014.
Paragraph 53 (compliance with time limits) is amended as follows. In sub-paragraph (1)— For the purposes of sub-paragraph (1)—
After paragraph 57 insert—
HMRC may give a notice (an “accelerated payment notice”) to a person (“P”) if Conditions A to C are met.
Condition A is that—
a tax enquiry is in progress into a return or claim made by P in relation to a relevant tax, or
P has made a tax appeal (by notifying HMRC or otherwise) in relation to a relevant tax but that appeal has not yet been—
determined by the tribunal or court to which it is addressed, or
abandoned or otherwise disposed of.
Condition B is that the return or claim or, as the case may be, appeal is made on the basis that a particular tax advantage (“the asserted advantage”) results from particular arrangements (“the chosen arrangements”).
Condition C is that one or more of the following requirements are met—
HMRC has given (or, at the same time as giving the accelerated payment notice, gives) P a follower notice under Chapter 2—
in relation to the same return or claim or, as the case may be, appeal, and
by reason of the same tax advantage and the chosen arrangements;
the chosen arrangements are DOTAS arrangements;
a GAAR counteraction notice has been given in relation to the asserted advantage or part of it and the chosen arrangements (or is so given at the same time as the accelerated payment notice) in a case where the stated opinion of at least two of the members of the sub-panel of the GAAR Advisory Panel which considered the matter under paragraph 10 of Schedule 43 to FA 2013 was as set out in paragraph 11(3)(b) of that Schedule (entering into tax arrangements not reasonable course of action etc).
a notice has been given under paragraph 8(2) or 9(2) of Schedule 43A to FA 2013 (notice of final decision after considering Panel's opinion about referred or counteracted arrangements) in relation to the asserted advantage or part of it and the chosen arrangements (or is so given at the same time as the accelerated payment notice) in a case where the stated opinion of at least two of the members of the sub-panel of the GAAR Advisory Panel about the other arrangements (see subsection (8)) was as set out in paragraph 11(3)(b) of Schedule 43 to FA 2013;
a notice under paragraph 8(2) of Schedule 43B to FA 2013 (GAAR: generic referral of tax arrangements) has been given in relation to the asserted advantage or part of it and the chosen arrangements (or is so given at the same time as the accelerated payment notice) in a case where the stated opinion of at least two of the members of the sub-panel of the GAAR Advisory Panel which considered the generic referral in respect of those arrangements under paragraph 6 of Schedule 43B to FA 2013 was as set out in paragraph 6(4)(b) of that Schedule.
“DOTAS arrangements” means—
... arrangements to which HMRC has allocated a reference number under section 311 of FA 2004,
... arrangements implementing a ... proposal where HMRC has allocated a reference number under that section to the proposed ... arrangements, or
arrangements in respect of which a person must provide prescribed information under section 312(2) or 312ZA(2) of that Act by reason of the arrangements being substantially the same as ... arrangements within paragraph (a) or (b).
But the ... arrangements within subsection (5) do not include arrangements in relation to which HMRC has given notice under section 312(6) or 312ZA(4) of FA 2004 (notice that persons not under duty imposed to notify client of reference number).
“GAAR counteraction notice” means a notice under paragraph 12 of Schedule 43 to FA 2013 (notice of final decision to counteract under the general anti-abuse rule).
In subsection (4)(d) “other arrangements” means—
in relation to a notice under paragraph 8(2) of Schedule 43A to FA 2013, the referred arrangements (as defined in that paragraph);
in relation to a notice under paragraph 9(2) of that Schedule, the counteracted arrangements (as defined in paragraph 2 of that Schedule).
This section applies where an accelerated payment notice is given by virtue of section 219(2)(a) (notice given while a tax enquiry is in progress).
The notice must—
specify the paragraph or paragraphs of section 219(4) by virtue of which the notice is given,
specify the payment (if any) required to be made under section 223 and the requirements of that section, ...
explain the effect of sections 222 and 226, and of the amendments made by sections 224 and 225 (so far as relating to the relevant tax in relation to which the accelerated payment notice is given), and
The payment required to be made under section 223 is an amount equal to the amount which a designated HMRC officer determines, to the best of that officer's information and belief, as the understated tax (and disregarding any dispute which has been referred to a tribunal under section 12ABZB(3) of TMA 1970 but not yet determined).
if the denied advantage consists of or includes an asserted surrenderable amount, specify that amount and any action which is required to be taken in respect of it under section 225A.
“The understated tax” means the additional amount that would be due and payable in respect of tax if—
in the case of a notice given by virtue of section 219(4)(a) (cases where a follower notice is given)—
it were assumed that the explanation given in the follower notice in question under section 206(b) is correct, and
the necessary corrective action were taken under section 208 in respect of what the designated HMRC officer determines, to the best of that officer's information and belief, as the denied advantage;
in the case of a notice given by virtue of section 219(4)(b) (cases where the DOTAS requirements are met), such adjustments were made as are required to counteract what the designated HMRC officer determines, to the best of that officer's information and belief, as the denied advantage;
in the case of a notice given by virtue of section 219(4)(c), (d) or (e) (cases involving counteraction under the general anti-abuse rule), such of the adjustments set out in the GAAR counteraction notice as have effect to counteract the denied advantage were made.
“The denied advantage”—
in the case of a notice given by virtue of section 219(4)(a), has the meaning given by section 208(3),
in the case of a notice given by virtue of section 219(4)(b), means so much of the asserted advantage as is not a tax advantage which results from the chosen arrangements or otherwise, and
in the case of a notice given by virtue of section 219(4)(c), (d) or (e) , means so much of the asserted advantage as would be counteracted by making the adjustments set out in the GAAR counteraction notice.
If a notice is given by reason of two or all of the requirements in section 219(4) being met, any payment specified under subsection (2)(b) or amount specified under subsection (2)(d) is to be determined as if the notice were given by virtue of such one of them as is stated in the notice as being used for this purpose.
Asserted surrenderable amount” means so much of a surrenderable loss as a designated HMRC officer determines, to the best of that officer's information and belief, to be an amount—
which would not be a surrenderable loss of P if the position were as stated in paragraphs (a), (b) or (c) of subsection (4), and
which is not the subject of a claim by P for relief from corporation tax reflected in the understated tax amount (and hence in the payment required to be made under section 223).
“Surrenderable loss” means a loss or other amount within section 99(1) of CTA 2010 (or part of such a loss or other amount).
“The GAAR counteraction notice” means the notice under— as the case may be.
paragraph 12 of Schedule 43 to FA 2013,
paragraph 8 or 9 of Schedule 43A to that Act, or
paragraph 8 of Schedule 43B to that Act,
This section applies where an accelerated payment notice is given by virtue of section 219(2)(b) (notice given pending an appeal).
The notice must—
specify the paragraph or paragraphs of section 219(4) by virtue of which the notice is given,
specify the disputed tax (if any), ...
explain the effect of section 222 and of the amendments made by sections 224 and 225 so far as relating to the relevant tax in relation to which the accelerated payment notice is given, and
“The disputed tax” means so much of the amount of the charge to tax arising in consequence of— as a designated HMRC officer determines, to the best of the officer's information and belief, as the amount required to ensure the counteraction of what that officer so determines as the denied advantage (and disregarding any dispute which has been referred to a tribunal under section 12ABZB(3) of TMA 1970 but not yet determined).
the amendment or assessment to tax appealed against, or
where the appeal is against a conclusion stated by a closure notice, that conclusion,
if the denied advantage consists of or includes an asserted surrenderable amount (within the meaning of section 220(4A)), specify that amount and any action which is required to be taken in respect of it under section 225A.
“The denied advantage” has the same meaning as in section 220(5).
If a notice is given by reason of two or all of the requirements in section 219(4) being met, the denied advantage is to be determined as if the notice were given by virtue of such one of them as is stated in the notice as being used for this purpose.
In this section a reference to an assessment to tax, in relation to inheritance tax, is to a determination.
This section applies where an accelerated payment notice has been given under section 219 (and not withdrawn).
P has 90 days beginning with the day that notice is given to send written representations to HMRC—
objecting to the notice on the grounds that Condition A, B or C in section 219 was not met, ...
objecting to the amount specified in the notice under section 220(2)(b) or section 221(2)(b), or
objecting to the amount specified in the notice under section 220(2)(d) or section 221(2)(d).
HMRC must consider any representations made in accordance with subsection (2).
Having considered the representations, HMRC must— and notify P accordingly.
if representations were made under subsection (2)(a), determine whether—
to confirm the accelerated payment notice (with or without amendment), or
to withdraw the accelerated payment notice, ...
if representations were made under subsection (2)(b) (and the notice is not withdrawn under paragraph (a)), determine whether a different amount (or no amount) ought to have been specified under section 220(2)(b) or section 221(2)(b), and then—
confirm the amount specified in the notice, ...
amend the notice to specify a different amount, or
remove from the notice the provision made under section 220(2)(b) or section 221(2)(b), and
if representations were made under subsection (2)(c) (and the notice is not withdrawn under paragraph (a)), determine whether a different amount (or no amount) ought to have been specified under section 220(2)(d) or 221(2)(d), and then—
confirm the amount specified in the notice,
amend the notice to specify a different amount, or
remove from the notice the provision made under section 220(2)(d) or section 221(2)(d),
This section applies where—
an accelerated payment notice is given by virtue of section 219(2)(a) (notice given while a tax enquiry is in progress) (and not withdrawn), and
an amount is stated in the notice in accordance with section 220(2)(b).
P must make a payment (“the accelerated payment”) to HMRC of that amount.
The accelerated payment is to be treated as a payment on account of the understated tax (see section 220).
The accelerated payment must be made before the end of the payment period.
“The payment period” means—
if P made no representations under section 222, the period of 90 days beginning with the day on which the accelerated payment notice is given, and
if P made such representations, whichever of the following periods ends later—
the 90 day period mentioned in paragraph (a);
the period of 30 days beginning with the day on which P is notified under section 222 of HMRC's determination.
But where the understated tax would be payable by instalments by virtue of an election made under section 227 of IHTA 1984, to the extent that the accelerated payment relates to tax payable by an instalment which falls to be paid at a time after the payment period, the accelerated payment must be made no later than that time.
If P pays any part of the understated tax before the accelerated payment in respect of it, the accelerated payment is treated to that extent as having been paid at the same time.
Any tax enactment which relates to the recovery of a relevant tax applies to an amount to be paid on account of the relevant tax under this section in the same manner as it applies to an amount of the relevant tax.
“Tax enactment” means provisions of or made under—
the Tax Acts,
any enactment relating to capital gains tax,
IHTA 1984 or any other enactment relating to inheritance tax,
Part 4 of FA 2003 or any other enactment relating to stamp duty land tax, or
Part 3 of FA 2013 or any other enactment relating to annual tax on enveloped dwellings.
In section 55 of TMA 1970 (recovery of tax not postponed), after subsection (8A) insert—
In section 242 of IHTA 1984 (recovery of tax), after subsection (3) insert—
Sub-paragraphs (10) and (11) apply where a person has been given an accelerated payment notice under Chapter 3 of Part 4 of the Finance Act 2014 and that notice has not been withdrawn. Nothing in this paragraph enables the postponement of the payment of (as the case may be)— Accordingly, if the payment of an amount of tax within sub-paragraph (10)(b) is postponed by virtue of this paragraph immediately before the accelerated payment notice is given, it ceases to be so postponed with effect from the time that notice is given, and the tax is due and payable—
Sub-paragraphs (9) to (11) of paragraph 39 apply for the purposes of this paragraph as they apply for the purposes of paragraph 39.
Sub-paragraphs (8B) and (8C) apply where a person has been given an accelerated payment notice under Chapter 3 of Part 4 of FA 2014 and that notice has not been withdrawn. Nothing in this paragraph enables the postponement of the payment of (as the case may be)— Accordingly, if the payment of an amount of tax within sub-paragraph (8B)(b) is postponed by virtue of this paragraph immediately before the accelerated payment notice is given, it ceases to be so postponed with effect from the time that notice is given, and the tax is due and payable—
Sub-paragraphs (8A) to (8C) of paragraph 48 apply for the purposes of this paragraph as they apply for the purposes of paragraph 48.
In section 56 of TMA 1970 (payment of tax where there is a further appeal), after subsection (3) insert—
Sub-paragraph (4) applies where— If, on the application of HMRC, the relevant court or tribunal considers it necessary for the protection of the revenue, it may direct that sub-paragraph (1) does not apply so far as the stamp duty land tax relates to the counteraction of the whole or part of the asserted advantage, and— “Relevant court or tribunal” means the tribunal or court from which permission or leave to appeal is sought.
Sub-paragraph (4) applies where— If, on the application of HMRC, the relevant court or tribunal considers it necessary for the protection of the revenue, it may direct that sub-paragraph (1) does not apply so far as the tax relates to the counteraction of the whole or part of the asserted advantage, and— “Relevant court or tribunal” means the tribunal or court from which permission or leave to appeal is sought.
This section applies where an accelerated payment notice is given by virtue of section 219(2)(a) (notice given while tax enquiry is in progress) (and not withdrawn).
If any amount of the accelerated payment is unpaid at the end of the payment period, P is liable to a penalty of 5% of that amount.
If any amount of the accelerated payment is unpaid after the end of the period of 5 months beginning with the penalty day, P is liable to a penalty of 5% of that amount.
If any amount of the accelerated payment is unpaid after the end of the period of 11 months beginning with the penalty day, P is liable to a penalty of 5% of that amount.
“The penalty day” means the day immediately following the end of the payment period.
Where section 223(6) (accelerated payment payable by instalments when it relates to inheritance tax payable by instalments) applies to require an amount of the accelerated payment to be paid before a later time than the end of the payment period, references in subsections (2) and (5) to the end of that period are to be read, in relation to that amount, as references to that later time.
Paragraphs 9 to 18 (other than paragraph 11(5)) of Schedule 56 to FA 2009 (provisions which apply to penalties for failures to make payments of tax on time) apply, with any necessary modifications, to a penalty under this section in relation to a failure by P to pay an amount of the accelerated payment as they apply to a penalty under that Schedule in relation to a failure by a person to pay an amount of tax.
Where an amendment to an accelerated payment notice made under section 227(7A) (amendment following tribunal determination about partnership return) increases the amount of the accelerated payment, the amount of the increase is to be ignored for the purposes of—
this section, and
any other enactment imposing a penalty or surcharge for non-payment or late payment of tax.
This section applies where—
an accelerated payment notice is given (and not withdrawn), and
an amount is specified in the notice in accordance with section 220(2)(d) or 221(2)(d).
P may not consent to any claim for group relief in respect of the amount so specified.
Subject to subsection (2), paragraph 75 (other than sub-paragraphs (7) and (8)) of Schedule 18 to FA 1998 (reduction in amount available for surrender) has effect as if the amount so specified ceased to be an amount available for surrender at the time the notice was given to P.
For the purposes of subsection (3), paragraph 75 of that Schedule has effect as if, in sub-paragraph (2) of that paragraph for “within 30 days” there were substituted “ before the end of the payment period (within the meaning of section 223(5) of the Finance Act 2014) ”.
The time limits otherwise applicable to amendment of a company tax return do not prevent an amendment being made in accordance with paragraph 75(6) of Schedule 18 to FA 1998 where, pursuant to subsection (3), a claimant company receives—
notice of the withdrawal of consent under paragraph 75(3) of that Schedule, or
a copy of a notice containing directions under paragraph 75(4) of that Schedule.
Subsection (7) applies where—
a company makes such an amendment to its company tax return at a time when an enquiry is in progress into the return, and
paragraph 31(3) of that Schedule prevents the amendment from taking effect until the enquiry is completed.
Section 219 (circumstances in which an accelerated payment notice may be given) has effect, in its application to that company in a case where section 219(2)(a) applies (tax enquiry in progress), as if—
for the purposes of section 219(3), that amendment to the return had not been made,
in section 219(4), after paragraph (c) there were inserted—,
in section 220(4), after paragraph (c) there were inserted—, and
in section 227(10), for “or (c)” there were substituted “ , (c) or (d) ”.
Subsections (2) and (3) are subject to—
section 227(14) to (16) (provision about claims for group relief, and consents to claims, following amendment or withdrawal of an accelerated payment notice), and
section 227A (provision about claims for group relief, and consents to claims, once tax position finally determined).
In this section a “Condition C requirement” means one of the requirements set out in Condition C in section 219.
Where an accelerated payment notice has been given, HMRC may, at any time, by notice given to P—
withdraw the notice,
where the notice is given by virtue of more than one Condition C requirement being met, withdraw it to the extent it is given by virtue of one of those requirements (leaving the notice effective to the extent that it was also given by virtue of any other Condition C requirement and has not been withdrawn), ...
reduce the amount specified in the accelerated payment notice under section 220(2)(b) or 221(2)(b), or
reduce the amount specified in the accelerated payment notice under section 220(2)(d) or 221(2)(d).
Where— HMRC must withdraw the accelerated payment notice to the extent it was given by virtue of that requirement.
an accelerated payment notice is given by virtue of the Condition C requirement in section 219(4)(a), and
the follower notice to which it relates is withdrawn,
Where— HMRC may by notice given to P make consequential amendments (whether under subsection (2)(c) or (d) or otherwise) to the accelerated payment notice.
an accelerated payment notice is given by virtue of the Condition C requirement in section 219(4)(a), and
the follower notice to which it relates is amended under section 216(7)(b) (cases where there is a new relevant final judicial ruling following a late appeal),
Where an accelerated payment notice is given by virtue of the Condition C requirement in section 219(4)(b), and— HMRC must withdraw the accelerated payment notice, to the extent that it was given by virtue of the Condition C requirement.
under section 311(8) or 311B(8) of FA 2004, HMRC withdraw the reference number allocated to the chosen arrangements, or to proposed arrangements implemented by the chosen arrangements, or
HMRC give notice under section 312(6) or 312ZA(4) of FA 2004, with the result that persons are no longer under the duty in section 312(2) or (as the case may be) section 312ZA(2) of that Act in relation to the chosen arrangements,
Subsection (7) applies where—
an accelerated payment notice is withdrawn to the extent that it was given by virtue of a Condition C requirement,
that requirement is the one stated in the notice for the purposes of section 220(6) or 221(5) (calculation of amount of the accelerated payment or of the denied advantage etc), and
the notice remains effective to the extent that it was also given by virtue of any other Condition C requirement.
HMRC must, by notice given to P—
modify the accelerated payment notice so as to state the remaining, or one of the remaining, Condition C requirements for the purposes of section 220(6) or 221(5), ...
if the amount of the accelerated payment or (as the case may be) the amount of the disputed tax determined on the basis of the substituted Condition C requirement is less than the amount specified in the notice, amend that notice under subsection (2)(c) to substitute the lower amount, and
if the amount of the asserted surrenderable amount is less than the amount specified in the notice, amend the notice under subsection (2)(d) to substitute the lower amount.
If a follower notice is suspended under section 216 (appeals against final rulings made out of time) for any period, an accelerated payment notice in respect of the follower notice is also suspended for that period.
Where— HMRC may by notice given to P make consequential amendments to the accelerated payment notice.
an accelerated payment notice is given, and
a section 12AA partnership return (as defined in Schedule 32) to which the notice relates is amended under section 12ABZB(7)(b) of TMA 1970 (amendment following tribunal determination),
Accordingly, the period during which the accelerated payment notice is suspended does not count towards the periods mentioned in the following provisions—
section 223;
section 55(8D) of TMA 1970;
paragraph 39(11) of Schedule 10 to FA 2003;
paragraph 48(8C) of Schedule 33 to FA 2013.
But the accelerated payment notice is not suspended under subsection (8) if it was also given by virtue of section 219(4)(b) or (c) and has not, to that extent, been withdrawn.
In a case within subsection (10), subsections (6) and (7) apply as they would apply were the notice withdrawn to the extent that it was given by virtue of section 219(4)(a), except that any change made to the notice under subsection (7) has effect during the period of suspension only.
Where an accelerated payment notice is withdrawn, it is to be treated as never having had effect (and any accelerated payment made in accordance with, or penalties paid by virtue of, the notice are to be repaid).
If, as a result of a modification made under subsection (2)(c) or an amendment made under subsection (7A), more than the resulting amount of the accelerated payment has already been paid by P, the excess must be repaid.
Where, as a result of an accelerated payment notice specifying an amount under section 220(2)(d) or 221(2)(d), a notice of consent by P to a claim for group relief in respect of the amount specified (or part of it) became ineffective by virtue of section 225A(3), nothing in subsection (12) operates to revive that notice.
If, as a result of an amendment made under subsection (7A), an amount payable to HMRC under section 223(2) is increased, the amount of that increase must be paid before—
the end of the period of 30 days beginning with the day on which notice of the amendment is given, or
if later, the end the payment period (within the meaning given by section 223(5)).
If the accelerated payment notice is amended under subsection (2)(d) or withdrawn—
section 225A(2) and (3) (which prevents consent being given to group relief claims) cease to apply in relation to the released amount, and
a claim for group relief may be made in respect of any part of the released amount within the period of 30 days after the day on which the notice is amended or withdrawn.
The time limits otherwise applicable to amendment of a company tax return do not apply to the extent that it makes a claim for group relief within the time allowed by subsection (14).
“The released amount” means—
in a case where the accelerated payment notice is amended under subsection (2)(d), the amount represented by the reduction, and
in a case where the accelerated payment notice is withdrawn, the amount specified under section 220(2)(d) or 221(2)(d).
Schedule 32 makes provision for accelerated partner payments and modifies this Chapter in relation to partnerships.
In this Chapter—
“tax” (except in provisions to which section 281A applies) means—
a conclusion stated in a closure notice under paragraph 34 of Schedule 18 to FA 1998 against which no appeal is made;
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In Part 9 of ITTOIA 2005 (partnerships) after section 863 (limited liability partnerships) insert—
Subject to what follows, the amendments made by this Part are treated as having come into force on 6 April 2014. Section 863G(4A) of ITTOIA 2005 (as inserted by paragraph 1) comes into force on the day after the day on which this Act is passed.
Schedule 24 to FA 2012 (machine games duty) is amended as follows. In paragraph 3(2), for “BGDA 1981” substitute “Part 3 of FA 2014”. In paragraph 37(5), for “the offences” substitute “the offence”. In paragraph 38, for “remote gaming duty” substitute “bingo duty”.
Persons carrying on a business in partnership— But in this Part of this Act “partnership” does not include a body of persons forming a legal person that is distinct from themselves (and paragraphs 2 to 21 may accordingly be disregarded in applying this Part of this Act to such a body of persons). In the references in this Part to carrying on a business in partnership, “partnership” has the same meaning as in the Partnership Act 1890.
Sub-paragraph (2) applies where— The partnership is regarded as having met the threshold condition at the earlier time (regardless of whether or not the partnership was bound by the act or omission as a result of which P met the threshold condition). “Relevant threshold condition” means a threshold condition specified in any of the following paragraphs of Schedule 34—
In Part 17 of CTA 2009 (partnerships) after section 1273 (limited liability partnerships) insert—
This section applies where as a result of an accelerated payment notice given to P—
P was prevented from consenting to a claim for group relief in respect of an amount under section 225A(2), or
pursuant to section 225A(3), a consent given by P to a claim for group relief in respect of an amount was ineffective.
If a final determination establishes that the amount P has available to surrender consists of or includes the amount referred to in subsection (1)(a) or (b) or a part of it (“the allowed amount”)—
section 225A(2) and (3) (which prevents consent being given to group relief claims) ceases to apply in relation to the allowed amount, and
a claim for group relief in respect of any part of the allowed amount may be made within the period of 30 days after the relevant time.
The time limits otherwise applicable to amendment of a company tax return do not apply to an amendment to the extent that it makes a claim for group relief in respect of any part of the allowed amount within the time limit allowed by subsection (2)(b).
In this section—
This section applies to modify the application of this Part in the case of—
a return or claim in respect of stamp duty land tax, or
a tax appeal within section 203(g), or any appeal within section 203(i) which derives from such an appeal.
If two or more persons acting jointly are the purchasers in respect of the land transaction—
anything required or authorised by this Part to be done in relation to P must be done in relation to all of those persons, and
any liability of P in respect of an accelerated payment, or a penalty under this Part, is a joint and several liability of all of those persons.
Subsection (2) is subject to subsections (4) to (8).
If the land transaction was entered into by or on behalf of the members of a partnership—
anything required or authorised to be done under this Part in relation to P is required or authorised to be done in relation to all the responsible partners, and
any liability of P in respect of an accelerated payment, or a penalty under this Part, is a joint and several liability of the responsible partners.
But nothing in subsection (4) enables—
an accelerated payment to be recovered from a person who did not become a responsible partner until after the effective date of the transaction in respect of which the tax to which the accelerated payment relates is payable, or
a penalty under this Part to be recovered from a person who did not become a responsible partner until after the time when the omission occurred that caused the penalty to become payable.
Where the trustees of a settlement are liable to pay an accelerated payment or a penalty under this Part, the payment or penalty may be recovered (but only once) from any one or more of the responsible trustees.
But nothing in subsection (6) enables a penalty to be recovered from a person who did not become a responsible trustee until after the time when the omission occurred that caused the penalty to become payable.
Where a follower notice or accelerated payment notice is given to more than one person, the power conferred on P by section 207 or 222 is exercisable by each of those persons separately or by two or more of them jointly.
In this section—
stamp duty reserve tax, or
In the case of the vehicles described in paragraph 15 the amendments made by paragraphs 4 to 10 have effect in relation to licences taken out on or after 1 April 2016.
In this Schedule—
Any decision which is made under or for the purposes of any regulations under section 60A of the Management Act (power to make regulations about stores) and is a decision about granting or withdrawing authorisation for goods to be shipped or carried as stores without payment of duty or on drawback.
Schedule 3B to VATA 1994 (supply of electronic services in member States: special accounting scheme) is amended in accordance with paragraphs 4 to 10.
Section 12 of FA 1895 (collection of stamp duty in cases of property vested by Act or purchased under statutory powers) does not apply to stock or marketable securities admitted to trading on a recognised growth market but not listed on any market.
In section 70 of that Act (clearance services), after subsection (8) insert—
A partnership is regarded for the purposes of this Part of this Act as continuing to be the same partnership (and the same person) regardless of a change in membership, provided that a person who was a member before the change remains a member after the change.
This paragraph applies where— Where this paragraph applies, the conduct notice or monitoring notice continues (despite paragraphs 1 and 2) to have effect in relation to the person mentioned in sub-paragraph (1)(c) (but, in relation to times when the business is not being carried on in partnership, the notice is not regarded for the purposes of this Part of this Act as a notice that has been given to a partnership.)
This paragraph applies if— The notice mentioned in sub-paragraph (1)(b) is referred to in this paragraph as “the original notice”. An authorised officer may give the departing partner— If the departing partner is itself carrying on the transferred part of the business in partnership, the authorised officer may give that partnership (“the new partnership”)— A notice given under sub-paragraph (4) ceases to have effect if the departing partner ceases to be a member of the new partnership. A notice under sub-paragraph (3)(a) or (4)(a) may not be given after the termination date of the original notice (under section 241(2)(a) or (b)). It does not matter whether one, some or all of the persons who were carrying on the business in partnership are departing partners by virtue of sub-paragraph (1).
Any notice given to a partnership by an officer of Revenue and Customs under this Part of this Act must be served either— “Representative partner” means— A designation under sub-paragraph (2), or the revocation of such a designation, has effect only when notice of the designation, or revocation, has been given to the partnership by an authorised officer.
In this Schedule “managing partner”, in relation to a partnership, means a member of the partnership who directs or is on a day-to-day level in control of, the management of the business of the partnership.
Subject to paragraph 3, the amendment made by paragraph 1 has effect in relation to disposals made on or after 6 April 2014.
In relation to disposals made on or after 6 April 2014 but before 26 June 2014, TCGA 1992 has effect as if—
in section 236H—
in subsection (4)(b), for the words from “at the time of the disposal” to the end there were substituted “(see sections 236J to 236L)”,
subsection (4)(c)(ii) (and the “and” before it) were omitted, and
subsections (5) and (8) were omitted,
in section 236N—
in subsection (1), for “Conditions A and B are” there were substituted “Condition A is”, and
subsection (3) were omitted,
section 236O were omitted,
in section 236P—
in subsection (1) the words “, after the end of the tax year following the tax year in which the acquisition occurs, when” were omitted,
for subsection (2) there were substituted—, and
in subsection (3) for “before” there were substituted “after”,
section 236Q(7) were omitted, and
section 236R were omitted.
Those vehicles are—
a bus, light exceptional load vehicle or haulage vehicle which satisfies the reduced pollution requirements for the purposes of VERA 1994 because paragraph 4 of Schedule 2 to the Regulations applies to the vehicle as result of it falling within item 1 or 2 of Table 1 or any of items 1 to 3 of Table 2 in that paragraph (or being taken to be a vehicle falling within item 1 of Table 1 or Table 2 as a result of paragraph 5 of that Schedule), and
a rigid goods vehicle or tractive unit—
which has a revenue weight below 12,000 kgs, and
which satisfies the reduced pollution requirements for the purposes of VERA 1994 because paragraph 4 of Schedule 2 to the Regulations applies to the vehicle as result of it falling within item 1 or 2 of Table 1 or any of items 1 to 3 of Table 2 in that paragraph (or being taken to be a vehicle falling within item 1 of Table 1 or Table 2 as a result of paragraph 5 of that Schedule).
For the purposes of determining if the requirement of section 236L(1)(c) of TCGA 1992 (requirement as to conduct of trustees for 12 months) is met, anything done by the trustees before 10 December 2013 is to be disregarded. But sub-paragraph (1) does not apply in relation to section 236L of TCGA 1992 as applied by section 312E(3) of ITEPA 2003 (rules determining whether payment is a qualifying bonus payment for the purposes of Chapter 10A of Part 4 of ITEPA 2003).
This section applies to modify the application of this Part in the case of—
a return or claim in respect of annual tax on enveloped dwellings, or
a tax appeal within section 203(h), or any appeal within section 203(i) which derives from such an appeal.
If the responsible partners of a partnership are the chargeable person in relation to the tax to which the return or claim or appeal relates—
anything required or authorised by this Part to be done in relation to P must be done in relation to all of those partners, and
any liability of P in respect of an accelerated payment, or a penalty under this Part, is a joint and several liability of all of those persons.
Where— any liability of P in respect of a penalty under that section is a joint and several liability of all of them.
a follower notice is given by virtue of a tax enquiry into the return or claim or the appeal, and
by virtue of section 97 or 98 of FA 2013, two or more persons would have been jointly and severally liable for an additional amount of tax had the necessary corrective action been taken before the specified time for the purposes of section 208,
Where— any liability of P in respect of the accelerated payment or a penalty under section 226 is a joint and several liability of all of them.
an accelerated payment notice is given by virtue of a tax enquiry into the return or claim or the appeal, and
two or more persons would, by virtue of section 97 or 98 of FA 2013, be jointly and severally liable for the understated tax relating to the accelerated payment specified in the notice or (as the case may be) the disputed tax specified in the notice,
Accordingly— HMRC must also give a copy of the notice to any other person who would be jointly and severally liable for a penalty or payment, in relation to the notice, by virtue of this section.
where a follower notice is given in a case where subsection (3) applies, or
an accelerated payment notice is given in a case to which subsection (4) applies,
Where a follower notice or accelerated payment notice is given to more than one person, the power conferred on P by section 207 or 222 is exercisable by each of those persons separately or by two or more of them jointly.
In this section—
The Treasury may by order amend section 200 (definition of “relevant tax”) so as to extend this Part to any other tax.
An order under this section may include—
provision in respect of that other tax corresponding to the provision made by sections 224 and 225,
consequential and supplemental provision, and
transitional and transitory provision and savings.
For the purposes of subsection (1) or (2) an order under this section may amend this Part (other than this section) or any other enactment whenever passed or made.
The power to make orders under this section is exercisable by statutory instrument.
An order under this section may only be made if a draft of the instrument containing the order has been laid before and approved by a resolution of the House of Commons.
In this section “tax” includes duty.
Schedule 33 contains consequential amendments.
“Relevant proposal” means a proposal for arrangements which (if entered into) would be relevant arrangements (whether the proposal relates to a particular person or to any person who may seek to take advantage of it).
Arrangements are “relevant arrangements” if—
they enable, or might be expected to enable, any person to obtain a tax advantage, and
the main benefit, or one of the main benefits, that might be expected to arise from the arrangements is the obtaining of that advantage.
“Tax advantage” includes—
relief or increased relief from tax,
repayment or increased repayment of tax,
avoidance or reduction of a charge to tax or an assessment to tax,
avoidance of a possible assessment to 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.
“Arrangements” includes any agreement, scheme, arrangement or understanding of any kind, whether or not legally enforceable, involving a single transaction or two or more transactions.
A person carrying on a business in the course of which the person is, or has been, a promoter in relation to a relevant proposal or relevant arrangements carries on that business “as a promoter”.
A person is a “promoter” in relation to a relevant proposal if the person—
is to any extent responsible for the design of the proposed arrangements,
makes a firm approach to another person in relation to the relevant proposal with a view to making the proposal available for implementation by that person or any other person, or
makes the relevant proposal available for implementation by other persons.
For the purposes of this Part, a person is treated as carrying on a business as a promoter if the person is a member of a promotion structure (whether or not the person carries on a business). Schedule 33A describes the cases in which a person is a member of a promotion structure.
A person is a “promoter” in relation to relevant arrangements if the person—
is by virtue of subsection (2)(b) or (c), a promoter in relation to a relevant proposal which is implemented by the arrangements, or
is responsible to any extent for the design, organisation or management of the arrangements.
For the purposes of this Part a person makes a firm approach to another person in relation to a relevant proposal if—
the person communicates information about the relevant proposal to the other person at a time when the proposed arrangements have been substantially designed,
the communication is made with a view to that other person or any other person entering into transactions forming part of the proposed arrangements, and
the information communicated includes an explanation of the tax advantage that might be expected to be obtained from the proposed arrangements.
For the purposes of subsection (4) proposed arrangements have been substantially designed at any time if by that time the nature of the transactions to form them (or 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 subsection (4)(c) might enter into—
transactions of the nature developed, or
transactions not substantially different from transactions of that nature.
A person is not a promoter in relation to a relevant proposal or relevant arrangements by reason of anything done in prescribed circumstances.
Regulations under subsection (6) may contain provision having retrospective effect.
For the purposes of this Part a person (“A”) is an intermediary in relation to a relevant proposal if—
A communicates information about the relevant proposal to another person in the course of a business,
the communication is made with a view to that other person, or any other person, entering into transactions forming part of the proposed arrangements, and
A is not a promoter in relation to the relevant proposal.
Subsections (5) to (9) apply if an authorised officer becomes aware at any time that a person ( “ P ”) who is carrying on a business as a promoter—
has, in the period of 3 years ending with that time, met one or more threshold conditions, and
was carrying on a business as a promoter when P met that condition.
Part 1 of Schedule 34 sets out the threshold conditions and describes how they are met.
Subsections (5) to (9) also apply if an authorised officer becomes aware at any time (“the relevant time”) that—
a person has, in the period of 3 years ending with the relevant time, met one or more threshold conditions,
at the relevant time another person (“P”) meets one or more of those conditions by virtue of Part 2 of Schedule 34 (meeting the threshold conditions: bodies corporate and partnerships), and
P is, at the relevant time, carrying on a business as a promoter.
Part 2 of that Schedule contains provision about when a person is treated as meeting a threshold condition.
See also Schedule 36 (which contains provision about the meeting of threshold conditions and other conditions by partnerships).
The authorised officer must determine—
in a case within subsection (1), whether or not P's meeting of the condition mentioned in subsection (1)(a) (or, if more than one condition is met, the meeting of all of those conditions, taken together) should be regarded as significant in view of the purposes of this Part, or
in a case within subsection (1A), whether or not— should be regarded as significant in view of those purposes.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
P's meeting of the condition (or, if more than one condition is met, the meeting of all of those conditions, taken together) as mentioned in subsection (1A)(b),
Subsection (5) does not apply if a conduct notice or a monitoring notice already has effect in relation to P.
If the authorised officer determines under subsection (5)(a) that P's meeting of the condition or conditions in question should be regarded as significant, the officer must give P a conduct notice, unless subsection (8) applies.
In determining under subsection (5)(b) whether or not P's meeting of the condition (or conditions) should be regarded as significant, the authorised officer must determine whether the meeting of that condition (or those conditions taken together) by the person mentioned in subsection (1A)(a) should be regarded as significant in view of the purposes of this Part.
If the officer determines that the meeting of the condition (or those conditions) by that person should be regarded as significant, the officer must determine that P's meeting of that condition (or those conditions) should be regarded as significant.
This subsection applies if the authorised officer determines that, having regard to the extent of the impact that P's activities as a promoter are likely to have on the collection of tax, it is inappropriate to give P a conduct notice.
The authorised officer must determine under subsection (5) that the meeting of the condition (or all the conditions) ... should be regarded as significant if the condition (or any of the conditions) is in any of the following paragraphs of Schedule 34—
paragraph 2 (deliberate tax defaulters);
paragraph 3 (breach of Banking Code of Practice);
paragraph 4 (dishonest tax agents);
paragraph 6 (persons charged with certain offences);
paragraph 7 (opinion notice of GAAR Advisory Panel).
If the authorised officer determines under subsection (5)(b) that ...— should be regarded as significant, the officer must give P a conduct notice, unless subsection (8) applies.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
P's meeting of the condition or conditions as mentioned in subsection (1A)(b),
Where the authorised officer is required to make a determination under subsection (5), the officer must determine that the meeting of the condition (or if more than one is met, all of them) should be regarded as significant if P falls within the case described in paragraph 2 of Schedule 33A (multiple entity promoter).
If, as a result of subsection (1A), subsections (5) to (9) apply to a person, this does not prevent the giving of a conduct notice to the person mentioned in subsection (1A)(a).
A conduct notice is a notice requiring the person to whom it has been given (“the recipient”) to comply with conditions specified in the notice.
Before deciding on the terms of a conduct notice, the authorised officer must give the person to whom the notice is to be given an opportunity to comment on the proposed terms of the notice.
A notice may include only conditions that it is reasonable to impose for any of the following purposes—
to ensure that the recipient provides adequate information to its clients about relevant proposals, and relevant arrangements, in relation to which the recipient is a promoter;
to ensure that the recipient provides adequate information about relevant proposals in relation to which it is a promoter to persons who are intermediaries in relation to those proposals;
to ensure that the recipient does not fail to comply with any duty under a specified disclosure provision;
to ensure that the recipient does not discourage others from complying with any obligation to disclose to HMRC information of a description specified in the notice;
to ensure that the recipient does not enter into an agreement with another person (“C”) which relates to a relevant proposal or relevant arrangements in relation to which the recipient is a promoter, on terms which—
impose a contractual obligation on C which falls within paragraph 11(2) or (3) of Schedule 34 (contractual terms restricting disclosure), or
impose on C obligations within both paragraph 11(4) and (5) of that Schedule (contractual terms requiring contribution to fighting funds and restricting settlement of proceedings);
to ensure that the recipient does not promote relevant proposals or relevant arrangements which rely on, or involve a proposal to rely on, one or more contrived or abnormal steps to produce a tax advantage;
to ensure that the recipient does not fail to comply with any stop notice which has effect under paragraph 12 of Schedule 34.
to ensure that the recipient provides such information or documents to HMRC as are required for the purpose of monitoring whether and to what extent the recipient is complying with any of the conditions in the notice.
References in subsection (3) to ensuring that adequate information is provided about proposals or arrangements include—
ensuring the adequacy of the description of the arrangements or proposed arrangements;
ensuring that the information includes an adequate assessment of the risk that the arrangements or proposed arrangements will fail;
ensuring that the information does not falsely state, and is not likely to create a false impression, that HMRC have (formally or informally) considered, approved or expressed a particular opinion in relation to the proposal or arrangements.
In subsection (3)(c) “specified disclosure provision” means a disclosure provision that is specified in the notice; and for this purpose “disclosure provision” means any of the following—
section 308 of FA 2004 (disclosure of tax avoidance schemes: duties of promoter);
section 312 of FA 2004 (duty of promoter to notify client of number);
sections 313ZA and 313ZB of FA 2004 (duties to provide details of clients and certain others);
Part 1 of Schedule 36 to FA 2008 (duties to provide information and produce documents).
In subsection (4)(b) “fail”, in relation to arrangements or proposed arrangements, means not result in a tax advantage which the arrangements or (as the case may be) proposed arrangements might be expected to result in.
The Treasury may by regulations amend the definition of “disclosure provision” in subsection (5).
If an authorised officer becomes aware at any time (“the relevant time”) that a person ( “ P ”) who is carrying on a business as a promoter meets any of the conditions in subsections (11) to (13), the officer must determine whether or not P's meeting of that condition should be regarded as significant in view of the purposes of this Part. But see also subsection (14).
An authorised officer must make the determination set out in subsection (3) if the officer becomes aware at any time ( “ the section 237A(2) relevant time ”) that—
a person meets a condition in subsection (11), (12) or (13), and
at the section 237A(2) relevant time another person (“P”), who is carrying on a business as a promoter, meets that condition by virtue of Part 4 of Schedule 34A (meeting the section 237A conditions: bodies corporate and partnerships).
The authorised officer must determine whether or not— should be regarded as significant in view of the purposes of this Part.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
P's meeting of the condition as mentioned in subsection (2)(b),
In determining under subsection (3) whether or not P's meeting of the condition should be regarded as significant, the authorised officer must determine whether the meeting of that condition by the person mentioned in subsection (2)(a) should be regarded as significant in view of the purposes of this Part.
If the officer determines that the meeting of the condition by that person should be regarded as significant, the officer must determine that P's meeting of that condition should be regarded as significant.
If a person meets a condition in subsection (11), (12) or (13) and the person falls within the case described in paragraph 2 of Schedule 33A (multiple entity promoter), the authorised officer must determine (whether under subsection (1) or (3)(a) or (b)) that the meeting of the condition should be regarded as significant.
Subsections (1) and (2) do not apply if a conduct notice or monitoring notice already has effect in relation to P.
Subsection (1) does not apply if, at the relevant time, an authorised officer is under a duty to make a determination under section 237(5) in relation to P.
Subsection (2) does not apply if, at the section 237A(2) relevant time, an authorised officer is under a duty to make a determination under section 237(5) in relation to P.
But in a case where subsection (1) does not apply because of subsection (5), or subsection (2) does not apply because of subsection (6), subsection (5) of section 237 has effect as if—
the references in paragraph (a) of that subsection to “subsection (1)”, and “subsection (1)(a)” included subsection (1) of this section, and
in paragraph (b) of that subsection the reference to “subsection (1A)(a)” included a reference to subsection (2)(a) of this section and the reference to subsection (1A)(b) included a reference to subsection (2)(b) of this section.
If the authorised officer determines under subsection (1) that P's meeting of the condition in question should be regarded as significant, the officer must give P a conduct notice, unless subsection (10) applies.
If the authorised officer determines under subsection (3) that— should be regarded as significant in view of the purposes of this Part, the officer must give P a conduct notice, unless subsection (10) applies.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
P's meeting of the condition as mentioned in subsection (2)(b),
This subsection applies if the authorised officer determines that, having regard to the extent of the impact that P's activities as a promoter are likely to have on the collection of tax, it is inappropriate to give P a conduct notice.
The condition in this subsection is that in the period of 3 years ending with the relevant time at least 3 relevant defeats have occurred in relation to P.
The condition in this subsection is that at least two relevant defeats have occurred in relation to P at times when a single defeat notice under section 241A(2) or (6) had effect in relation to P.
The condition in this subsection is that at least one relevant defeat has occurred in relation to P at a time when a double defeat notice under section 241A(3) had effect in relation to P.
A determination that the condition in subsection (12) or (13) is met cannot be made unless—
the defeat notice in question still has effect when the determination is made, or
the determination is made on or before the 90th day after the day on which the defeat notice in question ceased to have effect.
Schedule 34A sets out the circumstances in which a “relevant defeat” occurs in relation to a person and includes provision limiting what can amount to a further relevant defeat in relation to a person (see paragraph 6).
An authorised officer must give a conduct notice to a person (“P”) who is carrying on a business as a promoter if—
a conduct notice given to P under section 237A(8)—
has ceased to have effect otherwise than as a result of section 237D(2) or 241(3) or (4), and
was provisional immediately before it ceased to have effect,
the officer determines that P had failed to comply with one or more conditions in the conduct notice,
the conduct notice relied on a Case 3 relevant defeat,
since the time when the conduct notice ceased to have effect, one or more relevant defeats falling within subsection (2) have occurred in relation to—
P, and
any arrangements to which the Case 3 relevant defeat also relates, and
had that relevant defeat or (as the case may be) those relevant defeats, occurred before the conduct notice ceased to have effect, an authorised officer would have been required to notify the person under section 237C(3) that the notice was no longer provisional.
A relevant defeat falls within this subsection if it occurs by virtue of Case 1 or Case 2 in Schedule 34A.
Subsection (1) does not apply if the authorised officer determines that, having regard to the extent of the impact that the person's activities as a promoter are likely to have on the collection of tax, it is inappropriate to give the person a conduct notice.
Subsection (1) does not apply if a conduct notice or monitoring notice already has effect in relation to the person.
For the purposes of this Part a conduct notice “relies on a Case 3 relevant defeat” if it could not have been given under the following condition. The condition is that paragraph 9 of Schedule 34A had effect with the substitution of “ 100% of the tested arrangements ” for “75% of the tested arrangements”.
In section 238 the following expressions are to be interpreted as follows.
“Adequate” means adequate having regard to what it might be reasonable for a client or (as the case may be) an intermediary to expect; and “adequacy” is to be interpreted accordingly.
A person (“C”) is a “client” of a promoter, if at any time when a conduct notice has effect, the promoter—
makes a firm approach to C in relation to a relevant proposal with a view to the promoter making the proposal available for implementation by C or another person;
makes a relevant proposal available for implementation by C;
takes part in the organisation or management of relevant arrangements entered into by C.
The recipient of a conduct notice “promotes” a relevant proposal if it—
takes part in designing the proposal,
makes a firm approach to a person in relation to the proposal with a view to making the proposal available for implementation by that person or another person, or
makes the proposal available for implementation by persons (other than the recipient).
The recipient of a conduct notice “promotes” relevant arrangements if it takes part in designing, organising or managing the arrangements.
This section applies where a conduct notice has been given to a person.
An authorised officer may at any time amend the notice.
An authorised officer—
may withdraw the notice if the officer thinks it is not necessary for it to continue to have effect, ...
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
An authorised officer may (instead of amending the notice) withdraw the notice and give a new conduct notice.
This section applies to a conduct notice which—
is given to a person under section 237A(8), and
relies on a Case 3 relevant defeat.
The notice is “provisional” at all times when it has effect, unless an authorised officer notifies the person that the notice is no longer provisional.
An authorised officer must notify the person that the notice is no longer provisional if subsection (4) or (5) applies.
This subsection applies if—
the condition in subsection (5)(a) is not met, and
a full relevant defeat occurs in relation to P.
This subsection applies if—
two, or all three, of the relevant defeats by reference to which the conduct notice is given would not have been relevant defeats if paragraph 9 of Schedule 34A had effect with the substitution of “ 100% of the tested arrangements ” for “75% of the tested arrangements”, and
the same number of full relevant defeats occur in relation to P.
A “full relevant defeat” occurs in relation to P if—
a relevant defeat occurs in relation to P otherwise than by virtue of Case 3 in paragraph 9 of Schedule 34A, or
circumstances arise which would be a relevant defeat in relation to P by virtue of paragraph 9 of Schedule 34A if that paragraph had effect with the substitution of “ 100% of the tested arrangements ” for “75% of the tested arrangements”.
In determining under subsection (6) whether a full relevant defeat has occurred in relation to P, assume that in paragraph 6 of Schedule 34A (provision limiting what can amount to a further relevant defeat in relation to a person) the first reference to a “relevant defeat” does not include a relevant defeat by virtue of Case 3 in paragraph 9 of Schedule 34A.
Subsection (2) applies if at any time—
a conduct notice which relies on a Case 3 relevant defeat (see section 237B(5)) is provisional, and
a court or tribunal upholds a corresponding tax advantage which has been asserted in connection with any of the related arrangements to which that relevant defeat relates (see paragraph 5(2) of Schedule 34A).
The conduct notice ceases to have effect when that judicial ruling becomes final.
An authorised officer must give the person to whom the conduct notice was given a written notice stating that the conduct notice has ceased to have effect.
For the purposes of this section, a tax advantage is “asserted” in connection with any arrangements if a person makes a return, claim or election on the basis that the tax advantage arises from those arrangements. In relation to the arrangements mentioned in paragraph (b) of subsection (1) “corresponding tax advantage” means a tax advantage corresponding to any tax advantage the counteraction of which contributed to the relevant defeat mentioned in that paragraph.
For the purposes of this section a court or tribunal “upholds” a tax advantage if—
the court or tribunal makes a ruling to the effect that no part of the tax advantage is to be counteracted, and
that judicial ruling is final.
For the purposes of this Part a judicial ruling is “final” if it is—
a ruling of the Supreme Court, or
a ruling of any other court or tribunal in circumstances where—
no appeal may be made against the ruling,
if an appeal may be made against the ruling with permission, the time limit for applications has expired and either no application has been made or permission has been refused,
if such permission to appeal against the ruling has been granted or is not required, no appeal has been made within the time limit for appeals, or
if an appeal was made, it was abandoned or otherwise disposed of before it was determined by the court or tribunal to which it was addressed.
In this section references to “counteraction” include anything referred to as a counteraction in any of Conditions A to F in paragraphs 11 to 16 of Schedule 34A.
A conduct notice has effect from the date specified in it as its commencement date.
A conduct notice ceases to have effect—
at the end of the relevant period beginning with its commencement date, ...
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A conduct notice ceases to have effect if withdrawn by an authorised officer under section 240.
But where a new conduct notice was given under section 240(4) that has a commencement date that is later than 12 months before the end of the relevant period in relation to the original notice, that new notice ceases to have effect at the end of the relevant period in relation to the original notice.
A conduct notice ceases to have effect in relation to a person when a monitoring notice takes effect in relation to that person.
For the purposes of subsection (2)(a), the relevant period in relation to a conduct notice is calculated in accordance with this table— If the authorised officer is aware that the person to whom the notice is given meets the relevant period is such period as may be notified in accordance with subsection (4B) or (4C) up to 1 ordinary condition 2 years 2 ordinary conditions 4 years 3 or more ordinary conditions 5 years 1 significant condition 3 years 1 significant condition and 1 or more other significant or ordinary conditions 5 years Subsection (4E) makes provision for the relevant period to be extended in certain circumstances.
When an authorised officer gives a person a conduct notice the officer must notify the person of the relevant period calculated by reference to the conditions which the officer is aware the person has met at that time.
If an authorised officer becomes aware that a person in relation to whom a conduct notice has effect has met one or more conditions which were not taken into account when the relevant period was calculated at the time the notice was given, the officer may give the person a notice—
stating that the relevant period has been recalculated to take account of the additional conditions, and
notifying the person of —
the new relevant period as recalculated in accordance with the table in subsection (4A), and
the new date at the end of which the conduct notice will cease to have effect.
For the purposes of the table in subsection (4A)—
a condition is significant if it is—
a threshold condition listed in section 237(9), or
a condition in section 237A(11), (12) or (13) in respect of which an authorised officer makes a determination (whether in accordance with section 237A(1) or (2) or for the purposes of this paragraph) that meeting the condition should be regarded as significant in view of the purposes of this Part, and
a condition is ordinary if it is a threshold condition not listed in section 237(9).
In calculating the relevant period for the purposes of subsection (2)(a) no account is to be taken of any day on all or part of which the effect of the conduct notice in question has been suspended by an authorised officer.
Where an authorised officer suspends the effect of a conduct notice, the officer must, as soon as practicable, notify the person to whom the notice was given of the suspension.
Where an authorised officer determines that the effect of a conduct notice should be resumed, the officer must, as soon as practicable, notify the person to whom the notice was given—
that its effect has been resumed,
of the number of days that are not to be taken into account in calculating the relevant period in accordance with subsection (4E), and
of the new date at the end of which the relevant period is expected to end.
Where a conduct notice has been given to a person and the person is subsequently given a notice under paragraph 1 of Schedule 36 of FA 2008 as it has effect as a result of section 272A (power to obtain information and documents), in calculating the relevant period for the purposes of subsection (2)(a) no account is to be taken of any day on which the person has not complied with that notice.
For the purposes of subsection (4H), a person has not complied with a notice given under that paragraph on each day—
beginning with the day after the last day on which the person could have complied with the notice, and
ending with the day before the day (or, if more than one, the last day) on which the person provides the information or produces the documents required by the notice.
As soon as reasonably practicable after the day mentioned in subsection (4I)(b), an authorised officer must give the person to whom the conduct notice was given notice of—
the number of days that are not to be taken into account in calculating the relevant period, and
of the new date at the end of which the relevant period is expected to end.
See also section 237D(2) (provisional conduct notice affected by judicial ruling).
This section applies if an authorised officer becomes aware at any time that a person to whom a conduct notice has been given ( “ P ”) has made a relevant transfer within the meaning of paragraph 5 of Schedule 33A (promotion structures) to another person ( “D”).
The authorised officer may give D a conduct notice.
If the proposed terms of the conduct notice to be given to D are the same as the terms of the conduct notice given to P, section 238(2) (content of conduct notice: opportunity to comment) does not apply in relation to the proposed terms.
If the proposed terms of the conduct notice to be given to D differ from the terms of the conduct notice given to P, section 238(2) applies in relation to the proposed terms as if the reference in that provision to “the proposed terms of the notice” were a reference to the differences between the proposed terms of the conduct notice to be given to D and the terms of the conduct notice given to P.
Where a person is given a conduct notice under this section, but considers that they were not a person to whom a relevant transfer was made (such that this section applies), they may make representations to that effect to the authorised officer.
If (in light of those representations) the authorised officer considers that this section did not apply at the time the conduct notice was given, the officer must withdraw the notice.
An authorised officer may give a person a notice (a “stop notice”) if the authorised officer suspects that the recipient promotes, or has promoted, arrangements of a description specified in the notice or proposals for such arrangements.
A description of arrangements may be specified in a stop notice only if the authorised officer considers that—
condition A and any of conditions B and C are met, or
conditions B and D are met.
Condition A is that arrangements of that description—
would, if the arrangements had been implemented before 5 April 2019, have been likely to—
cause a person to be treated as taking a relevant step for the purposes of Part 7A of ITEPA 2003 by virtue of paragraph 1(1) of Schedule 11 to F(No.2)A 2017 (loan charge: employment income), or
cause a relevant benefit to be treated as arising for the purposes of section 23A to 23H of ITTOIA 2005 by virtue of paragraph 1 of Schedule 12 to F(No.2)A 2017 (loan charge: trading income),
would be the same, or similar, in form or effect to arrangements or proposed arrangements to which a reference number has been allocated under section 311 of FA 2004 or paragraph 22 of Schedule 17 to F(No.2)A 2017,
would be the same, or similar, in form or effect to arrangements in relation to which a person has been given a follower notice under section 204 (circumstances in which a follower notice may be given), or
would be the same, or similar, in form or effect to arrangements of a description specified in regulations made by the Commissioners under this section.
Condition B is that—
arrangements of that description, or proposals for such arrangements, have been, or are likely to be, marketed (in any manner, whether by the recipient of the stop notice or otherwise) as capable of enabling a person to obtain a particular tax advantage, and
it is more likely than not that arrangements of that description are not capable of enabling that advantage to be obtained.
Condition C is that condition A is met as a result of the allocation of a reference number under section 311 of FA 2004 or paragraph 22 of Schedule 17 to F(No.2)A 2017 in relation to arrangements or proposed arrangements (the “reference arrangements”) and—
HMRC has required any person to provide information or documents under section 310A or 311C of FA 2004 or paragraph 19 or 22C of Schedule 17 to F(No.2)A 2017 in relation to the reference arrangements and that person has not complied with that requirement, or
HMRC has made an application to the tribunal under section 308A(2) of FA 2004 or paragraph 16 of Schedule 17 to F(No.2)A 2017 in relation to the reference arrangements.
Condition D is that—
arrangements of that description or proposals for such arrangements would be relevant arrangements or relevant proposals (see section 234), and
the recipient of the notice is subject to a conduct notice or a monitoring notice.
For the purposes of this section, and sections 236B to 236K and 272A, a person promotes arrangements or a proposal for arrangements if the person does anything in connection with those arrangements or that proposal that would, if those arrangements or that proposal were relevant arrangements or a relevant proposal, cause the person to be carrying on a business as a promoter, or to be treated as such, for the purposes of this Part.
A person subject to a stop notice must not promote—
any arrangements that meet the description specified in the notice or that have a similar form or effect to arrangements of that description, or
any proposal for such arrangements.
A person is subject to a stop notice for the purposes of this Part if—
the person is the recipient of the notice;
the person is a body corporate or partnership that the recipient of the notice controls or has significant influence over;
the person controls or has significant influence over a body corporate or partnership that is the recipient of the notice;
the recipient of the notice makes a relevant transfer to the person.
If the recipient of a stop notice controls or has significant influence over a person that is a body corporate or partnership, the recipient must—
within 5 days of the giving of the notice, give a copy of the notice to that person, and
within 15 days of the giving of the notice, provide HMRC with the information mentioned in subsection (6) in relation to that person.
If the recipient of a stop notice is a body corporate or partnership, it must—
within 5 days of the giving of the notice, give a copy of the notice to each person who controls or has significant influence over it, and
within 15 days of the giving of the notice, provide HMRC with the information mentioned in subsection (6) in relation to each such person.
If the recipient of a stop notice makes a relevant transfer to a person, the recipient must—
before making the transfer, give a copy of the notice to that person, and
within 15 days of making the transfer, provide HMRC with the information mentioned in subsection (6) in relation to that person.
The information referred to in subsections (3)(b), (4)(b) and (5)(b) in relation to a person is—
the person's name;
any name under which the person carries on a business and any previous name or pseudonym known by the recipient of the stop notice;
the person's business address or registered office.
An authorised officer may give a copy of a stop notice to any person the officer considers the recipient of the notice is obliged to give a copy to as a result of subsection (3)(a), (4)(a) or (5)(a) (but this does not affect the obligation of the recipient to do so).
Sub-paragraphs (5) to (11) of paragraph 13A of Schedule 34 (meaning of “control” and “significant influence”) apply to this section as they apply to Part 2 of that Schedule.
In this section “relevant transfer” has the meaning it has in paragraph 5 of Schedule 33A (promotion structures).
A person subject to a stop notice must provide a return to HMRC containing the information described in subsection (4) for each relevant period.
The first relevant period is the 3 month period commencing on the day the stop notice was given to its recipient.
Each successive 3 month period that commences within the period of 3 years commencing on that day is a relevant period.
The information that must be contained in a return under subsection (1) is—
the number (which may be nil) of relevant clients of the person subject to the stop notice in the relevant period to which the return relates,
if the return is the return for the first relevant period, the number (which may be nil) of relevant clients of the person in the period ending with the commencement of the first relevant period,
in respect of each relevant client—
the client's name and address,
the unique taxpayer reference number (if any) allocated to the client by HMRC, and
the client's national insurance number (if any),
any name by which any such arrangements or proposal is known or is marketed.
For the purposes of this section, a person (“C”) is a “relevant client” of a person subject to a stop notice (“P”) in a period if at any time during that period—
P has made a firm approach to C in relation to a proposal for arrangements that fall within the description specified in the stop notice;
P has made the proposal available for implementation by C;
P has provided services to C in relation to arrangements falling within the description specified in the stop notice, or in relation to a proposal for such arrangements.
If the person does not have the information referred to in subsection (4)(c)(ii) or (iii) in respect of a relevant client, the return must instead include a statement of that fact.
A return for a relevant period must be provided to HMRC before the end of the period of 15 days commencing on the last day of the relevant period.
An authorised officer may by notice to a person subject to the obligation to make a return under sub-paragraph (1) provide for that obligation to cease to have effect in relation to that person from such time as may be specified in the notice.
A person subject to a stop notice may make a request for the notice to cease to have effect in relation to that person if the person—
does not intend to promote, and has not promoted, arrangements that fall within the description of arrangements specified in the notice or proposals for such arrangements,
considers that the conditions for specifying the description of arrangements (see section 236A(2)) were not met, or
considers that there are other reasons for it to cease to have effect.
A request under subsection (1) must—
be made in writing to an authorised officer,
be made before the end of the period of 30 days beginning with the day on which the stop notice was given,
contain an explanation of the basis for the request, and
be accompanied by such evidence to support that explanation as is reasonable to provide in the circumstances.
The authorised officer to whom the request is made must decide whether or not the notice is to cease to have effect in relation to the person who made the request.
The authorised officer must give the person who made the request a notice setting out the officer's decision (“a decision notice”) before the end of the period of 45 days beginning with the day on which the request was received.
If at the end of that period the authorised officer has not given a decision notice, the stop notice ceases to have effect in relation to the person who made the request.
An authorised officer may also determine that a stop notice is to cease to have effect in relation to a person who has not made a request under subsection (1) by giving the person a notice (“a withdrawal notice”).
A decision notice or a withdrawal notice that provides for a stop notice to cease to have effect in relation to a person must specify the date on which it ceases to have effect in relation to that person, which may be earlier or later than the date on which the decision notice or withdrawal notice is given.
A person may appeal against a refusal by an authorised officer to grant a request that a stop notice cease to have effect in relation to that person.
Notice of appeal must be given—
in writing to the officer who gave the decision notice under section 236D(4), and
within the period of 30 days beginning with the day on which the decision notice was given.
The notice of appeal must state the grounds of appeal.
The grounds of appeal that may be stated are the same as the grounds on which a person may request that a stop notice cease to have effect as mentioned in section 236D(1).
On an appeal that is notified to the tribunal, the tribunal may—
confirm the refusal, or
direct that the stop notice is to cease to have effect in relation to a person from such date as the tribunal consider appropriate (which may be earlier or later than the date on which the tribunal makes that direction).
Subject to this section, the provisions of Part 5 of TMA 1970 relating to appeals have effect in relation to an appeal under this section.
A person who makes an appeal under section 236E may make a suspension request.
A “suspension request” is a request that a stop notice which is the subject of an appeal under that section is to cease to have effect in relation to the person making the request until the appeal has been determined, withdrawn or otherwise disposed of.
A suspension request must—
be made in writing to the authorised officer to whom the notice of appeal was given,
contain an explanation of the basis for the request, and
be accompanied by such evidence to support that explanation as is reasonable to provide in the circumstances.
The authorised officer to whom the suspension request is made must decide whether or not the notice is to cease to have effect in relation to the person who made the request until the appeal has been determined, withdrawn or otherwise disposed of.
When deciding whether or not to grant a suspension request, the officer must have regard to the need to protect—
the public revenue, and
persons to whom arrangements or proposals for arrangements of the description specified in the stop notice might be marketed.
The authorised officer must give the person who made the suspension request a notice setting out the officer's decision (“a suspension decision notice”) before the end of the period of 30 days beginning with the day on which the request was received.
If at the end of that period the authorised officer has not given a suspension decision notice, the stop notice ceases to have effect in relation to the person who made the request until either—
the officer gives a decision notice that provides that the suspension request is not to be granted, or
the appeal has been determined, withdrawn or otherwise disposed of.
This section applies to a stop notice if—
condition A in section 236A was met in relation to the giving of that notice as a result of the allocation of a reference number under section 311 of FA 2004 or paragraph 22 of Schedule 17 to F(No.2)A 2017, and
that reference number has been withdrawn.
Where this section applies to a stop notice, it ceases to have effect in relation to every person who is subject to it from the time when the reference number in question was withdrawn.
HMRC must give a notice to—
each person who has been given a stop notice to which this section applies, and
every other person that HMRC is aware was subject to that notice.
A notice given under subsection (3) must state the reason for the withdrawal of the reference number in question and may contain such further explanation as HMRC consider appropriate (for example, it may contain HMRC's view of the arrangements or proposed arrangements to which the reference number relates).
An authorised officer may publish—
the fact that a person is subject to a stop notice;
details of any arrangements or proposal for arrangements promoted by that person that the officer considers meet the description specified in the notice.
Publication under subsection (1) may also include the following information about the person—
the person's name;
the person's business address or registered office;
any other information that the authorised officer considers it appropriate to publish in order to make clear the person's identity.
The reference in subsection (2)(a) to the person's name includes any name under which the person carries on a business and any previous name or pseudonym.
Publication of information about a person subject to a stop notice may not take place before the end of the appeal period, but an authorised officer may, at any time after the notice is given, publish the description of arrangements or proposal for arrangements specified in the notice and the fact that arrangements of that description are subject to a stop notice.
The “appeal period” means—
the period during which a request under section 236D(1) (withdrawal of stop notices) could be made,
where such a request was made, the period during which an appeal to the tribunal against a decision notice under section 236D(4) could be brought under section 236E, or
where an appeal mentioned in paragraph (b) has been brought, the period during which the proceedings on that appeal to the tribunal have not been determined, withdrawn or otherwise disposed of.
For the purposes of subsection (5)(c), reference to proceedings on an appeal to the tribunal do not include any proceedings on appeal from the tribunal.
Where an authorised officer has published anything under section 236H in relation to a stop notice that has ceased to have effect as a result of section 236G, an authorised officer must publish—
the fact it has ceased to have effect;
the reason for the withdrawal of the reference number in question (see section 236G(1));
such further explanation as HMRC consider appropriate.
Where an authorised officer is required to publish information as a result of subsection (1), the officer may also publish information about the persons who were subject to such a stop notice (including the information mentioned in section 236H(1) and (2)).
A person (“P”) subject to a stop notice who (at any time) has promoted arrangements falling within the description specified in that notice, or has promoted a proposal for such arrangements, must give a notice to—
each of P's clients in relation to those arrangements or that proposal, and
each person who P could reasonably be expected to know is an intermediary in relation to any such proposal.
The notice must—
set out the fact that a person is subject to a stop notice,
set out the fact that the arrangements or proposed arrangements the recipient of the notice is a client or intermediary in relation to meets the description of arrangements specified in the notice, and
be accompanied with a copy of the stop notice.
A person (“C”) is a client of P if—
P has made a firm approach to C in relation to a proposal for arrangements that fall within the description specified in the stop notice,
P has made the proposal available for implementation by C, or
P has provided services to C in relation to arrangements falling within the description specified in the stop notice, or in relation to a proposal for such arrangements.
A notice under this section must be given—
to each person who was a client of P on or before the day on which P became aware that P was subject to the notice, within 5 days of that day;
to each person that P could reasonably be expected to know was an intermediary in relation to the proposal in question on or before the day on which P became aware that P was subject to the notice, within 5 days of that day;
to each person that P subsequently becomes aware is an intermediary in relation to the proposal in question, within 5 days of P becoming so aware.
This section applies if an authorised officer suspects that a person subject to a stop notice has failed to comply with section 236B(1).
Where this section applies, the officer may provide a copy of the stop notice to any person the officer considers might be affected by that failure or the giving of the stop notice (for example, any person who is a client of the person who failed to comply with section 236B(1) or who otherwise makes use of arrangements that must not be promoted as a result of the stop notice).
Where the officer provides a copy of a stop notice to a person under subsection (2) the officer may also provide any of the following information to that person—
the name of the person who failed to comply with section 236B(1);
the business address or registered office of that person;
any other information that the authorised officer considers it appropriate to provide in order to make clear the identity of that person;
details of any arrangements or proposal for arrangements promoted by that person that meet the description specified in it;
an explanation of the effect of the stop notice;
an explanation of why the stop notice was given.
If— the authorised officer must , within the period of 12 months beginning with the day on which the authorised officer makes the determination, apply to the tribunal for approval to give the person a monitoring notice.
a conduct notice has effect in relation to a person who is carrying on a business as a promoter, and
an authorised officer determines that the person
has failed to comply with one or more conditions in the notice, or
has provided false or misleading information or documents in relation to the notice,
An application under subsection (1) must include a draft of the monitoring notice.
Where subsection (1B) applies, an authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may apply to the tribunal for approval to give a person (“P”) a monitoring notice.
This subsection applies where—
within the period of 6 years after a conduct notice ceases to have effect in relation to P, the officer mentioned in subsection (1A) determines that P—
failed to comply with one or more conditions in the notice, or
provided false or misleading information or documents in relation to the notice, and
the officer could not reasonably have been expected to make the determination when the conduct notice had effect.
Subsection (1) does not apply if—
the condition (or all the conditions) mentioned in subsection (1)(b) were imposed under subsection (3)(a), (b) or (c) of section 238, and
the authorised officer considers that the failure to comply with the condition (or all the conditions, taken together) is such a minor matter that it should be disregarded for the purposes of this section.
Where an authorised officer makes an application to the tribunal under subsection (1), the officer must at the same time give notice to the person to whom the application relates.
An application under subsection (1A) may not be made after the period of 12 months beginning with the day on which the officer makes the determination mentioned in subsection (1B)(a).
Where subsection (1E) applies, an authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may apply to the tribunal for approval to give a person (“D”) a monitoring notice.
The notice under subsection (4) must state which condition (or conditions) the authorised officer has determined under subsection (1)(b) that the person has failed to comply with and the reasons for that determination.
This subsection applies where—
at any time before the end of the period of 6 years after a conduct notice ceases to have effect in relation to a person (“P”), an authorised officer determines (whether before or after the notice ceases to have effect) that P—
failed to comply with one or more conditions in the notice, or
provided false or misleading information or documents in relation to the notice,
before the end of that period, the authorised officer becomes aware that P has made a relevant transfer within the meaning of paragraph 5 of Schedule 33A (promotion structures) to D (whether before or after the notice ceases to have effect), and
the officer could not reasonably have been expected— before the relevant transfer took place.
to apply to the tribunal for approval to give P a monitoring notice, or
to give P a monitoring notice following such an application,
For the purposes of an application under subsection (1D), any act or omission of P by reference to which the determination mentioned in subsection (1E)(a) was made is to be treated as an act or omission of D.
An application under subsection (1D) may not be made after the period of 12 months beginning with the day on which the officer makes the determination mentioned in subsection (1E)(a).
At a time when a notice given under section 237A is provisional, no determination is to be made under subsection (1) in respect of the notice.
If a promoter fails to comply with conditions in a conduct notice at a time when the conduct notice is provisional, nothing in subsection (6) prevents those failures from being taken into account under subsection (1) at any subsequent time when the conduct notice is not provisional.
On an application under section 242, the tribunal may approve the giving of a monitoring notice only if—
the tribunal is satisfied that, in the circumstances, the authorised officer would be justified in giving the monitoring notice, and
the person to whom the monitoring notice is to be given (“the affected person”) has been given a reasonable opportunity to make representations to the tribunal.
The tribunal may amend the draft notice included with the application under section 242.
If the representations that the affected person makes to the tribunal include a statement that in the affected person's view it was not reasonable to include the condition mentioned in section 242(1)(b) in the conduct notice, the tribunal must refuse to approve the giving of the monitoring notice if it is satisfied that it was not reasonable to include that condition (but see subsection (4)).
If the representations made to the tribunal include the statement described in subsection (3) and the determination under section 242(1)(b) is a determination that there has been a failure to comply with more than one condition in the conduct notice—
subsection (3) does not apply, but
in deciding whether or not to approve the giving of the monitoring notice, the tribunal is to assume, in the case of any condition that the tribunal considers it was not reasonable to include in the conduct notice, that there has been no failure to comply with that condition.
Where the tribunal has approved the giving of a monitoring notice, the authorised officer must give the notice to the person to whom it relates.
A monitoring notice given under subsection (1) or paragraph 9 or 10 of Schedule 36 must—
explain the effect of the monitoring notice and specify the date from which it takes effect;
inform the recipient of the right to request the withdrawal of the monitoring notice under section 245.
In addition, a monitoring notice must—
if given under subsection (1), state which condition (or conditions) it has been determined the person has failed to comply with and the reasons for that determination;
if given under paragraph 9 or 10 of Schedule 36, state the date of the original monitoring notice and name the partnership to which that notice was given.
The date specified under subsection (2)(a) must not be earlier than the date on which the monitoring notice is given.
In this Part, a person in relation to whom a monitoring notice has effect is called a “monitored promoter”.
A person in relation to whom a monitoring notice has effect may, at any time after the end of the period of 12 months beginning with the end of the appeal period, request that the notice should cease to have effect.
The “appeal period” means—
the period during which an appeal could be brought against the approval by the tribunal of the giving of the monitoring notice, or
where an appeal mentioned in paragraph (a) has been brought, the period during which that appeal has not been finally determined, withdrawn or otherwise disposed of.
A request under this section is to be made in writing to an authorised officer.
Where a request is made under this section, an authorised officer must within 30 days beginning with the day on which the request is received determine either—
that the monitoring notice is to cease to have effect, or
that the request is to be refused.
The matters to be taken into account by an authorised officer in making a determination under subsection (4) include—
whether or not the person subject to the monitoring notice has, since the time when the notice took effect, engaged in behaviour of a sort that conditions included in a conduct notice in accordance with section 238(3) could be used to regulate;
whether or not it appears likely that the person will in the future engage in such behaviour;
the person's record of compliance, or failure to comply, with obligations imposed on it under this Part (including any obligations connected with any stop notice the person is subject to), since the time when the monitoring notice took effect.
An authorised officer—
may withdraw a monitoring notice if the officer thinks it is not necessary for it to continue to have effect, and
in considering whether or not that is necessary, the officer must take into account the matters in paragraphs (a) to (c) of subsection (5).
If the authorised officer makes a determination under subsection (4)(a), or decides to withdraw a monitoring notice under subsection (6), the officer must also determine that the person is, or is not, to be given a follow-on conduct notice.
“Follow-on conduct notice” means a conduct notice taking effect immediately after the monitoring notice ceases to have effect.
Where the monitoring notice mentioned in subsection (1) is a replacement monitoring notice—
in subsection (1) the reference to the end of the appeal period is to be read as a reference to whichever is the later of the end of the appeal period for the original monitoring notice and the date the replacement monitoring notice takes effect, and
in subsection (5)(a) and (c) the time referred to is to be read as the time when the original monitoring notice (see paragraph 11(2) of Schedule 36) took effect.
For the purposes of determining whether a person should be given a follow-on conduct notice, the meeting of the condition in paragraph 12 of Schedule 34 (stop notices) by the person at a time when they are subject to a monitoring notice is to be regarded as significant by the authorised officer making the determination (see section 237(5)).
This section applies if an authorised officer becomes aware at any time that a person to whom a monitoring notice has been given ( “ P ”) has made a relevant transfer within the meaning of paragraph 5 of Schedule 33A (promotion structures) to another person ( “D”).
The authorised officer may give D a monitoring notice.
Where a person is given a monitoring notice under this section, but considers that they were not a person to whom a relevant transfer was made (such that this section applies), they may make representations to that effect to the authorised officer.
If (in light of those representations) the authorised officer considers that this section did not apply at the time the monitoring notice was given, the officer must withdraw the notice.
Subsections (2) to (4) of section 244 (monitoring notice: content and issuing) apply in relation to a monitoring notice given under subsection (2) of this section as they apply to a monitoring notice given under subsection (1) of that section, but as if the reference in subsection (3)(a) of that section to “the person” were a reference to P.
Where an authorised officer makes a determination under section 245(4), that officer, or an officer of Revenue and Customs with that officer's approval, must notify the person who made the request of the determination.
If the determination is that the monitoring notice is to cease to have effect, the notice must—
specify the date from which the monitoring notice is to cease to have effect, and
inform the person of the determination made under section 245(7).
If the determination is that the request is to be refused, the notice must inform the person who made the request—
of the reasons for the refusal, and
of the right to appeal under section 247.
A person may appeal against a refusal by an authorised officer of a request that a monitoring notice should cease to have effect.
Notice of appeal must be given—
in writing to the officer who gave the notice of the refusal under section 245, and
within the period of 30 days beginning with the day on which notice of the refusal was given.
The notice of appeal must state the grounds of appeal.
On an appeal that is notified to the tribunal, the tribunal may—
confirm the refusal, or
direct that the monitoring notice is to cease to have effect.
Subject to this section, the provisions of Part 5 of TMA 1970 relating to appeals have effect in relation to an appeal under this section.
An authorised officer may publish the fact that a person is a monitored promoter.
Publication under subsection (1) may also include the following information about the monitored promoter—
its name;
its business address or registered office;
the nature of the business as a promoter which the monitored promoter is carrying on;
any other information that the authorised officer considers it appropriate to publish in order to make clear the monitored promoter's identity.
The reference in subsection (2)(a) to the monitored promoter's name includes any name under which it carries on a business as a promoter and any previous name or pseudonym.
Publication under subsection (1) may also include a statement of which of the conditions in a conduct notice it has been determined that the person (or, in the case of a replacement monitoring notice, the person to whom the original monitoring notice was given) has failed to comply with.
Publication may not take place before the end of the appeal period (or, in the case of a replacement monitoring notice, the appeal period for the original monitoring notice).
The “appeal period”, in relation to a monitoring notice, means—
the period during which an appeal could be brought against the approval by the tribunal of the giving of the notice, or
where an appeal mentioned in paragraph (a) has been brought, the period during which that appeal has not been finally determined, withdrawn or otherwise disposed of.
Publication under this section is to be in such manner as the authorised officer thinks fit; but see subsection (8).
If an authorised officer publishes the fact that a person is a monitored promoter and the monitoring notice is withdrawn, the officer must publish the fact of the withdrawal in the same way as the officer published the fact that the person was a monitored promoter.
A person who is given a monitoring notice (“the monitored promoter”) must give the persons mentioned in subsection (6) a notice stating—
that it is a monitored promoter, and
which of the conditions in a conduct notice it has been determined that it (or, if the monitoring notice is a replacement monitoring notice, the person to whom that notice was given) has failed to comply with.
If the monitoring notice is a replacement monitoring notice, the notice under subsection (1) must also identify the original monitoring notice.
If regulations made by the Commissioners so require, the monitored promoter must publish on the internet—
the information mentioned in paragraph (a) and (b) of subsection (1), and
its promoter reference number (see section 250).
Subsection (1) and any duty imposed under subsection (3) or (10) do not apply until the end of the period of 10 days beginning with the end of the appeal period (and also see subsection (9)).
The “appeal period” means—
the period during which an appeal could be brought against the approval by the tribunal of the giving of the monitoring notice, or
where an appeal mentioned in paragraph (a) has been brought, the period during which that appeal has not been finally determined, withdrawn or otherwise disposed of.
The notice under subsection (1) must be given—
to any person who becomes a client of the monitored promoter while the monitoring notice has effect, and
(except in a case where the monitoring notice is a replacement monitoring notice) any person who is a client of the monitored promoter at the time the monitoring notice takes effect.
A person (“C”) is a client of a monitored promoter at the time a monitoring notice takes effect if during the period beginning with the date the conduct notice mentioned in subsection (1)(b) takes effect and ending with that time the promoter—
made a firm approach to C in relation to a relevant proposal with a view to the promoter making the proposal available for implementation by C or another person;
made a relevant proposal available for implementation by C;
took part in the organisation or management of relevant arrangements entered into by C.
A person becomes a client of a monitored promoter if the promoter does any of the things mentioned in paragraph (a) to (c) of subsection (7) in relation to that person.
In the case of a person falling within subsection (6)(a), notice under subsection (1) may be given within the period of 10 days beginning with the day on which the person first became a client of the monitored promoter if that period would expire at a later date than the date on which notification would otherwise be required by virtue of subsection (4).
A monitored promoter must also include in any prescribed publication or prescribed correspondence—
the information mentioned in paragraph (a) and (b) of subsection (1), and
its promoter reference number (see section 250).
Notification under subsection (1), publication under subsection (3) or inclusion of the information required by subsection (10) is to be in such form and manner as is prescribed.
Where the monitoring notice mentioned in subsection (1) is a replacement monitoring notice, the reference in subsection (4) to the end of the appeal period is to be read as a reference to whichever is the later of the end of the appeal period for the original monitoring notice and the date the replacement monitoring notice takes effect.
Where a monitoring notice is given to a person (“the monitored promoter”) HMRC must as soon as practicable after the end of the appeal period—
allocate the monitored promoter a reference number, and
notify the relevant persons of that number.
“Relevant persons” means—
the monitored promoter, ...
if the monitored promoter is resident outside the United Kingdom, any person who HMRC know is an intermediary in relation to a relevant proposal of the monitored promoter.
any person who HMRC know falls within the case described in paragraph 3 of Schedule 33A by virtue of acting under the instruction or guidance of the monitored promoter, and
The “appeal period” means—
the period during which an appeal could be brought against the approval by the tribunal of the giving of the monitoring notice, or
where an appeal mentioned in paragraph (a) has been brought, the period during which that appeal has not been finally determined, withdrawn or otherwise disposed of.
The duty in subsection (1) does not apply if the monitoring notice is set aside following an appeal.
A number allocated to a person under this section is referred to in this Part as a “promoter reference number”.
Where the monitoring notice mentioned in subsection (1) is a replacement monitoring notice—
in subsection (1) the reference to the end of the appeal period is to be read as a reference to whichever is the later of the end of the appeal period for the original monitoring notice and the date the replacement monitoring notice takes effect, and
in subsection (4) the reference to the monitoring notice is to be read as a reference to the original monitoring notice.
This section applies where a person who is a monitored promoter (“the monitored promoter”) is notified under section 250 of a promoter reference number.
The monitored promoter must, within the relevant period, notify the promoter reference number to—
any person who has become its client at any time in the period beginning with the day on which the monitoring notice in relation to the monitored promoter took effect and ending with the day on which the monitored promoter was notified of that number,
any person who becomes its client after the end of the period mentioned in paragraph (a) but while the monitoring notice has effect,
any person who the monitored promoter could reasonably be expected to know falls within subsection (4), ...
any person who the monitored promoter could reasonably be expected to know is a relevant intermediary in relation to a relevant proposal of the monitored promoter.
any person who falls within the case described in paragraph 3 of Schedule 33A by virtue of acting under the instruction or guidance of the monitored promoter, and
A person (“C”) becomes a client of a monitored promoter if the promoter does any of the following in relation to C—
makes a firm approach to C in relation to a relevant proposal with a view to the promoter making the proposal available for implementation by C or another person;
makes a relevant proposal available for implementation by C;
takes part in the organisation or management of relevant arrangements entered into by C.
A person falls within this subsection if during the period beginning with the date the conduct notice took effect and ending with the date on which the monitoring notice took effect the person has entered into transactions forming part of relevant arrangements and those arrangements—
enable, or are likely to enable, the person to obtain a tax advantage during the time a monitoring notice has effect, and
are either relevant arrangements in relation to which the monitored promoter is or was a promoter or implement a relevant proposal in relation to which the monitored promoter was a promoter.
A person is a relevant intermediary in relation to a relevant proposal of a monitored promoter if the person meets the conditions in section 236(a) to (c) (meaning of “intermediary”) at any time while the monitoring notice in relation to the monitored promoter has effect.
The “relevant period” means—
in the case of a person falling within subsection (2)(a), the period of 30 days beginning with the day of the notification mentioned in subsection (1),
in the case of a person falling within subsection (2)(b), the period of 30 days beginning with the day on which the person first became a client in relation to the monitored promoter,
in the case of a person falling within subsection (2)(c), the period of 30 days beginning with the later of the day of the notification mentioned in subsection (1) and the first day on which the monitored promoter could reasonably be expected to know that the person fell within subsection (4), and
in the case of a person falling within subsection (2)(d), the period of 30 days beginning with the later of the day of the notification mentioned in subsection (1) and the first day on which the monitored promoter could reasonably be expected to know that the person was a relevant intermediary in relation to a relevant proposal of the monitored promoter.
In this section “the conduct notice” means the conduct notice that the monitored promoter failed to comply with which resulted in the monitoring notice being given to the monitored promoter.
Subsection (2)(c) is to be ignored in a case where the monitoring notice is a replacement monitoring notice.
In this section “notified client” means—
a person who is notified of a promoter reference number under section 250 by reason of being a person falling within subsection (2)(b) of that section, and
a person who is notified of a promoter reference number under section 251.
A notified client must, within 30 days of being notified as described in subsection (1), provide the promoter reference number to any other person who the notified client might reasonably be expected to know has become, or is likely to have become, a client in relation to the monitored promoter concerned at a time when the monitoring notice in relation to that monitored promoter had effect.
A person (“C”) becomes a client of a monitored promoter if the promoter does any of the following in relation to C—
makes a firm approach to C in relation to a relevant proposal with a view to the promoter making the proposal available for implementation by C or another person;
makes a relevant proposal available for implementation by C;
takes part in the organisation or management of relevant arrangements entered into by C.
Where the notified client is an intermediary in relation to a relevant proposal of the monitored promoter concerned, the notified client must also, within 30 days, provide the promoter reference number to—
any person to whom the notified client has, since the monitoring notice in relation to the monitored promoter concerned took effect, communicated in the course of a business information about a relevant proposal of the monitored promoter, and
any person who the notified client might reasonably be expected to know has, since that monitoring notice took effect, entered into, or is likely to enter into, transactions forming part of relevant arrangements in relation to which that monitored promoter is a promoter.
None of subsections (2), (4) or (4A) impose a duty on a notified client to notify a person of a promoter reference number if the notified client reasonably believes that the person has already been notified of the promoter reference number (whether as a result of a duty under this section or as a result of any of the other provision of this Part).
Where the notified client is a person who falls within the case described in paragraph 3 of Schedule 33A by virtue of acting under the instruction or guidance of the monitored promoter concerned, the notified client must also, within 30 days, provide the promoter reference number to—
any person to whom the notified client has, since the monitoring notice in relation to the monitored promoter concerned took effect, communicated, for the purposes of any business (whether carried on by the notified client or not), information about a relevant proposal of the monitored promoter, and
any person who the notified client might reasonably be expected to know has, since that monitoring notice took effect, entered into, or is likely to enter into, transactions forming part of relevant arrangements in relation to which that monitored promoter is a promoter.
If a person (“N”) is notified of a promoter reference number under section 250, 251 or 252, N must report the number to the Commissioners if N expects to obtain a tax advantage from relevant arrangements in relation to which the monitored promoter to whom the reference number relates (whether that is N or another person) is the promoter.
A report under this section—
must be made in (or, if prescribed circumstances exist, submitted with) each tax return made by N for a period that is or includes a period for which the arrangements enable N to obtain a tax advantage (whether in relation to the tax to which the return relates or another tax);
if no tax return falls within paragraph (a), or in the case mentioned in subsection (3), must contain such information, and be made in such form and manner and within such time, as is prescribed.
The case is that the tax return in which the report would (apart from this subsection) have been made is not submitted—
by the filing date, or
if there is no filing date in relation to the tax return concerned, by such other time that the tax return is required to be submitted by or under any enactment.
Where N expects to obtain the tax advantage referred to in subsection (1) in respect of inheritance tax, stamp duty land tax, stamp duty reserve tax or petroleum revenue tax—
subsection (2) does not apply in relation to that tax advantage, and
a report under this section in respect of that tax must be in such form and manner and contain such information and be made within such time as is prescribed.
Where the relevant arrangements referred to in subsection (1) give rise to N making a claim under section 261B of TCGA 1992 (treating trade loss as CGT loss) or for loss relief under Part 4 of ITA 2007 and that claim is not contained in a tax return, a report under this section must also be made in that claim.
In this section “tax return” means any of the following—
a return under section 8 of TMA 1970 (income tax and capital gains tax: personal return);
a return under section 8A of TMA 1970 (income tax and capital gains tax: trustee's return);
a return under section 12AA of TMA 1970 (income tax and corporation tax: partnership return);
a company tax return under paragraph 3 of Schedule 18 to the FA 1998 (company tax return);
a return under section 159 or 160 of FA 2013 (returns and further returns for annual tax on enveloped dwellings).
a return under regulations made under section 105 of FA 2016 (apprenticeship levy);
This section applies in relation to a person (“P”) only if P is carrying on a business as a promoter.
An authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may give P a notice if the officer concerned has become aware of one (and only one) relevant defeat which has occurred in relation to P in the period of 3 years ending with the day on which the notice is given.
An authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may give P a notice if the officer concerned has become aware of two (but not more than two) relevant defeats which have occurred in relation to P in the period of 3 years ending with the day on which the notice is given.
A notice under this section must be given by the end of the 90 days beginning with the day on which the matters mentioned in subsection (2) or (as the case may be) (3) first come to the attention of an authorised officer.
Subsection (6) applies if—
a single defeat notice which had been given to P (under subsection (2) or (6)) ceases to have effect as a result of section 241B(1), and
in the period when the defeat notice had effect a relevant defeat (“the further relevant defeat”) occurred in relation to P.
An authorised officer or an officer of Revenue and Customs with the approval of an authorised officer may give P a notice in respect of the further relevant defeat (regardless of whether or not it occurred in the period of 3 years ending with the day on which the notice is given).
In this Part—
“single defeat notice” means a notice under subsection (2) or (6);
“double defeat notice” means a notice under subsection (3);
“defeat notice” means a single defeat notice or a double defeat notice.
A defeat notice must—
set out the dates on which the look-forward period for the notice begins and ends;
in the case of a single defeat notice, explain the effect of section 237A(12);
in the case of a double defeat notice, explain the effect of section 237A(13).
HMRC may specify what further information must be included in a defeat notice.
“Look-forward period”—
in relation to a defeat notice under subsection (2) or (3), means the period of 5 years beginning with the day after the day on which the notice is given;
in relation to a defeat notice under subsection (6), means the period beginning with the day after the day on which the notice is given and ending at the end of the period of 5 years beginning with the day on which the further relevant defeat mentioned in subsection (6) occurred in relation to P.
A defeat notice has effect throughout its look-forward period unless it ceases to have effect earlier in accordance with section 241B(1) or (4).
If the relevant defeat to which a single defeat notice relates is overturned (see subsection (5)), the notice has no further effect on and after the day on which it is overturned.
Subsection (3) applies if one (and only one) of the relevant defeats in respect of which a double defeat notice was given is overturned.
The notice is to be treated for the purposes of this Part (including this section) as if it had always been a single defeat notice given (in respect of the other of the two relevant defeats) on the date on which the notice was in fact given. The look-forward period for the notice is accordingly unchanged.
If both the relevant defeats to which a double defeat notice relates are overturned (on the same date), that notice has no further effect on and after that date.
A relevant defeat specified in a defeat notice is “overturned” if— Accordingly the relevant defeat is overturned on the day on which the judicial ruling mentioned in paragraph (b) becomes final.
the notice could not have specified that relevant defeat if paragraph 9 of Schedule 34A had effect with the substitution of “ 100% of the tested arrangements ” for “75% of the tested arrangements”, and
at a time when the notice has effect a court or tribunal upholds a corresponding tax advantage which has been asserted in connection with any of the related arrangements to which the relevant defeat relates (see paragraph 5(2) of Schedule 34A).
If a defeat notice ceases to have effect as a result of subsection (1) or (4) an authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, must notify the person to whom the notice was given that it has ceased to have effect.
If subsection (3) has effect in relation to a defeat notice, an authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, must notify the person of the effect of that subsection.
For the purposes of this section, a tax advantage is “asserted” in connection with any arrangements if a person makes a return, claim or election on the basis that the tax advantage arises from those arrangements.
In relation to the arrangements mentioned in paragraph (b) of subsection (5) “corresponding tax advantage” means a tax advantage corresponding to any tax advantage the counteraction of which contributed to the relevant defeat mentioned in that paragraph.
For the purposes of this section a court or tribunal “upholds” a tax advantage if—
the court or tribunal makes a ruling to the effect that no part of the tax advantage is to be counteracted, and
that judicial ruling is final.
In this section references to “counteraction” include anything referred to as a counteraction in any of Conditions A to F in paragraphs 11 to 16 of Schedule 34A.
For the purposes of this Part a relevant proposal in relation to which a person (“P”) is a promoter is a “monitored proposal” in relation to P if any of the following dates fell on or after the date on which a monitoring notice took effect—
the date on which P first made a firm approach to another person in relation to the relevant proposal;
the date on which P first made the relevant proposal available for implementation by any other person;
the date on which P first became aware of any transaction forming part of the proposed arrangements being entered into by any person.
For the purposes of this Part relevant arrangements in relation to which a person (“P”) is a promoter are “monitored arrangements” in relation to P if—
P was by virtue of section 235(2)(b) or (c) a promoter in relation to a relevant proposal which was implemented by the arrangements and any of the following fell on or after the date on which the monitoring notice took effect—
the date on which P first made a firm approach to another person in relation to the relevant proposal;
the date on which P first made the relevant proposal available for implementation by any other person;
the date on which P first became aware of any transaction forming part of the proposed arrangements being entered into by any person,
the date on which P first took part in designing, organising or managing the arrangements fell on or after the date on which a monitoring notice took effect, or
the arrangements enable, or are likely to enable, the person who has entered into transactions forming them to obtain the tax advantage by reason of which they are relevant arrangements, at any time on or after the date on which a monitoring notice took effect.
An authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may by notice in writing require any person (“P”) to whom this section applies— if the information or document is reasonably required by the officer for any of the purposes in subsection (3).
to provide information, or
to produce a document,
This section applies to— and in either case that monitored promoter is referred to below as “the relevant monitored promoter”.
any person who is a monitored promoter, and
any person who is a relevant intermediary in relation to a monitored proposal of a monitored promoter,
The purposes mentioned in subsection (1) are—
considering the possible consequences of implementing a monitored proposal of the relevant monitored promoter for the tax position of persons implementing the proposal,
checking the tax position of any person who the officer reasonably believes has implemented a monitored proposal of the relevant monitored promoter, or
checking the tax position of any person who the officer reasonably believes has entered into transactions forming monitored arrangements of the relevant monitored promoter.
A person is a “relevant intermediary” in relation to a monitored proposal if the person meets the conditions in section 236(a) to (c) (meaning of “intermediary”) in relation to the proposal at any time after the person has been notified of a promoter reference number of a person who is a promoter in relation to the proposal.
In this section “checking” includes carrying out an investigation or enquiry of any kind.
In this section “tax position”, in relation to a person, means the person's position as regards any tax, including the person's position as regards—
past, present and future liability to pay any tax,
penalties and other amounts that have been paid, or are or may be payable, by or to the person in connection with any tax,
claims, elections, applications and notices that have been or may be made or given in connection with the person's liability to pay any tax,
deductions or repayments of tax, or of sums representing tax, that the person is required to make—
under PAYE regulations, or
by or under any other provision of the Taxes Acts, and
the withholding by the person of another person's PAYE income (as defined in section 683 of ITEPA 2003).
In this section the reference to the tax position of a person—
includes the tax position of a company that has ceased to exist and an individual who has died, and
is to the person's tax position at any time or in relation to any period.
A notice under subsection (1) which is given for the purpose of checking the tax position of a person mentioned in subsection (3)(b) or (c) may not be given more than 4 years after the person's death.
A notice under subsection (1) may specify or describe the information or documents to be provided or produced.
Information or a document required as a result of a notice under subsection (1) must be provided or produced within—
the period of 10 days beginning with the day on which the notice was given, or
such longer period as the officer who gives the notice may direct.
An officer of Revenue and Customs may not, without the approval of the tribunal, give a notice under section 255 requiring a person (“A”) to provide information or produce a document which relates (in whole or in part) to a person who is neither A nor an undertaking in relation to which A is a parent undertaking.
An officer of Revenue and Customs may apply to the tribunal for the approval required by subsection (1); and an application for approval may be made without notice.
The tribunal may approve the giving of the notice only if—
the application for approval is made by, or with the agreement of, an authorised officer,
the tribunal is satisfied that, in the circumstances, the officer giving the notice is justified in doing so,
the person to whom the notice is to be given has been informed that the information or documents referred to in the notice are required and given a reasonable opportunity to make representations to an officer of Revenue and Customs, and
the tribunal has been given a summary of any representations made by that person.
Where a notice is given under section 255 with the approval of the tribunal, it must state that it is given with that approval.
Paragraphs (c) and (d) of subsection (3) do not apply to the extent that the tribunal is satisfied that taking the action specified in those paragraphs might prejudice the assessment or collection of tax.
In subsection (1) “parent undertaking” and “undertaking” have the same meaning as in the Companies Acts (see section 1161 and 1162 of, and Schedule 7 to, the Companies Act 2006).
A decision of the tribunal under this section is final (despite the provisions of sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007).
An authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may give a notice to a person (“P”) in relation to whom a monitoring notice has effect.
A person to whom a notice is given under subsection (1) must provide prescribed information and produce prescribed documents relating to—
all the monitored proposals and all the monitored arrangements in relation to which the person is a promoter at the time of the notice, and
all the monitored proposals and all the monitored arrangements in relation to which the person becomes a promoter after that time.
The duty under subsection (2)(b) does not apply in relation to any proposals or arrangements in relation to which the person first becomes a promoter after the monitoring notice ceases to have effect.
A notice under subsection (1) must specify the time within which information must be provided or a document produced and different times may be specified for different cases.
This section applies where a monitored promoter who is resident outside the United Kingdom has failed to comply with a duty under section 255 or 257 to provide information about a monitored proposal or monitored arrangements.
An authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may give a notice to a relevant person which—
specifies or describes the information which the monitored promoter has failed to provide, and
requires the person to provide the information.
A “relevant person” means—
any person who is an intermediary in relation to the monitored proposal concerned, ...
any person (“A”) to whom the monitored promoter has made a firm approach in relation to the monitored proposal concerned with a view to making the proposal available for implementation by a person other than A.
any person who falls within the case described in paragraph 3 of Schedule 33A by virtue of acting under the instruction or guidance of the monitored promoter, and
If an authorised officer is not aware of any person to whom a notice could be given under subsection (2) the authorised officer, or an officer of Revenue and Customs with the approval of the authorised officer, may give a notice to any person who has implemented the proposal which—
specifies or describes the information which the monitored promoter has failed to provide, and
requires the person to provide the information.
If the duty mentioned in subsection (1) relates to monitored arrangements an authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may give a notice to any person who has entered into any transaction forming part of the monitored arrangements concerned which—
specifies or describes the information which the monitored promoter has failed to provide, and
requires the person to provide the information.
A notice under this section may be given only if the officer giving the notice reasonably believes that the person to whom the notice is given is able to provide the information requested.
Information required as a result of a notice under this section must be provided within—
the period of 10 days beginning with the day on which the notice was given, or
such longer period as the officer who gives the notice may direct.
An authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may give notice to a person in relation to whom a monitoring notice has effect (“the monitored promoter”).
A person to whom a notice is given under subsection (1) must, for each relevant period, give the officer who gave the notice the information set out in subsection (9) in respect of each person who was its client with reference to that relevant period (see subsections (5) to (8)).
Each of the following is a “relevant period”—
the calendar quarter in which the notice under subsection (1) was given but not including any time before the monitoring notice takes effect,
the period (if any) beginning with the date the monitoring notice takes effect and ending immediately before the beginning of the period described in paragraph (a), and
each calendar quarter after the period described in paragraph (a) but not including any time after the monitoring notice ceases to have effect.
Information required as a result of a notice under subsection (1) must be given—
within the period of 30 days beginning with the end of the relevant period concerned, or
in the case of a relevant period within subsection (3)(b), within the period of 30 days beginning with the day on which the notice under subsection (1) was given if that period would expire at a later time than the period given by paragraph (a).
A person (“C”) is a client of the monitored promoter with reference to a relevant period if—
the promoter did any of the things mentioned in subsection (6) in relation to C at any time during that period, or
the person falls within subsection (7).
Those things are that the monitored promoter—
made a firm approach to C in relation to a relevant proposal with a view to the promoter making the proposal available for implementation by C or another person;
made a relevant proposal available for implementation by C;
took part in the organisation or management of relevant arrangements entered into by C.
A person falls within this subsection if the person has entered into transactions forming part of relevant arrangements and those arrangements—
enable the person to obtain a tax advantage either in that relevant period or a later relevant period, and
are either relevant arrangements in relation to which the monitored promoter is or was a promoter, or implement a relevant proposal in relation to which the monitored promoter was a promoter.
But a person is not a client of the monitored promoter with reference to a relevant period if—
the person has previously been a client of the monitored promoter with reference to a different relevant period,
the promoter complied with the duty in subsection (2) in respect of the person for that relevant period, and
the information provided as a result of complying with that duty remains accurate.
The information mentioned in subsection (2) is—
the person's name and address, and
such other information about the person as may be prescribed.
Where the monitoring notice mentioned in subsection (1) is a replacement monitoring notice, subsection (5)(b) does not impose a duty on the monitored promoter concerned to provide information about a person who has entered into transactions forming part of relevant arrangements (as described in subsection (7)) if the monitored promoter reasonably believes that information about that person has, in relation to those arrangements, already been provided under the original monitoring notice.
An authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may give notice to
a person (“the intermediary”) who is an intermediary in relation to a relevant proposal which is a monitored proposal of a person in relation to whom a monitoring notice has effect (“the monitored promoter”);
a person who falls within the case described in paragraph 3 of Schedule 33A by virtue of acting under the instruction or guidance of the monitored promoter.
A person to whom a notice is given under subsection (1) must, for each relevant period, give the officer who gave the notice the information set out in subsection (7) in respect of each person who was its client with reference to that relevant period (see subsections (5) to (6)).
Each of the following is a “relevant period”—
the calendar quarter in which the notice under subsection (1) was given but not including any time before the person to whom the notice is given was first notified under section 250, 251 or 252 of the promoter reference number of the monitored promoter,
the period (if any) beginning with the date of the notification under section 250, 251 or 252 and ending immediately before the beginning of the period described in paragraph (a), and
each calendar quarter after the period described in paragraph (a) but not including any time after the monitoring notice mentioned in subsection (1) ceases to have effect.
Information required as a result of a notice under subsection (1) must be given—
within the period of 30 days beginning with the end of the relevant period concerned, or
in the case of a relevant period within subsection (3)(b), within the period of 30 days beginning with the day on which the notice under subsection (1) was given if that period would expire at a later time than the period given by paragraph (a).
A person (“C”) is a client of the person to whom the notice under subsection (1) is given (“R”) with reference to a relevant period if during that period—
R communicated information to C about a monitored proposal in the course of a business, and
the communication was made with a view to C, or any other person, entering into transactions forming part of the proposed arrangements.
But a person is not a client of R with reference to a relevant period if—
the person has previously been a client of R with reference to a different relevant period,
R complied with the duty in subsection (2) in respect of the person for that relevant period, and
the information provided as a result of complying with that duty remains accurate.
The information mentioned in subsection (2) is—
the person's name and address, and
such other information about the person as may be prescribed.
This section applies where—
a person (“the notifying person”) has provided information under section 259 or 260 about a person who was a client of the notifying person with reference to a relevant period (within the meaning of the section concerned) in connection with a particular relevant proposal or particular relevant arrangements, and
an authorised officer suspects that a person in respect of whom information has not been provided under section 259 or 260—
has at any time been, or is likely to be, a party to transactions implementing the proposal, or
is a party to a transaction forming (in whole or in part) particular relevant arrangements.
The authorised officer may by notice in writing require the notifying person to provide prescribed information in relation to any person whom the notifying person might reasonably be expected to know—
has been, or is likely to be, a party to transactions implementing the proposal, or
is a party to a transaction forming (in whole or in part) the relevant arrangements.
But a notice under subsection (2) does not impose a requirement on the notifying person to provide information which the notifying person has already provided to an authorised officer under section 259 or 260.
The notifying person must comply with a requirement under subsection (2) within—
10 days of the notice, or
such longer period as the authorised officer may direct.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
This section applies where a conduct notice has effect in relation to a person.
An authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may (as often as is necessary for the purpose mentioned below) by notice in writing require the person— if the information or document is reasonably required for the purpose of monitoring whether and to what extent the person is complying with the conditions in the conduct notice.
to provide information, or
to produce a document,
If, on the last day of a calendar quarter, a monitoring notice has effect in relation to a person (“the monitored promoter”) the monitored promoter must within 30 days of the end of the calendar quarter inform an authorised officer of its current address.
This section applies where—
a person (“P”) has provided information or produced a document in purported compliance with section 255, 257, 258, 259, 260, 261 or 262, but
an authorised officer suspects that P has not provided all the information or produced all the documents required under the section concerned.
The authorised officer, or an officer of Revenue and Customs with the approval of the authorised officer, may apply to the tribunal for an order requiring P to—
provide specified information about persons who are its clients for the purposes of the section to which the application relates,
provide specified information, or information of a specified description, about a monitored proposal or monitored arrangements,
produce specified documents relating to a monitored proposal or monitored arrangements.
The tribunal may make an order under subsection (2) in respect of information or documents only if satisfied that the officer has reasonable grounds for suspecting that the information or documents—
are required under section 255, 257, 258, 259, 260, 261 or 262 (as the case may be), or
will support or explain information required under the section concerned.
A requirement by virtue of an order under subsection (2) is to be treated as part of P's duty under section 255, 257, 258, 259, 260, 261 or 262 (as the case may be).
Information or a document required as a result of subsection (2) must be provided, or the document produced, within the period of 10 days beginning with the day on which the order under subsection (2) was made.
An authorised officer may, by direction, extend the 10 day period mentioned in subsection (5).
This section applies where a person has been notified of a promoter reference number—
under section 250 by reason of being a person falling within subsection (2)(b) of that section, or
under section 251 or 252.
The person notified (“C”) must within 10 days notify the person whose promoter reference number it is of—
C's national insurance number (if C has one), and
C's unique tax reference number (if C has one).
If C has neither a national insurance number nor a unique tax reference number, C must within 10 days inform the person whose promoter reference number it is of that fact.
A unique tax reference number is an identification number allocated to a person by HMRC.
Subsection (2) or (3) does not impose a duty on C to provide information which C has already provided to the person whose promoter reference number it is.
This section applies where a person is given a notice under section 255, 257, 258, 259, 260, 261 or 262.
The person to whom the notice is given may appeal against the notice or any requirement under the notice.
Subsection (2) does not apply—
to a requirement to provide any information or produce any document that forms part of the person's statutory records, or
if the tribunal has approved the giving of the notice under section 256.
For the purposes of this section, information or a document forms part of a person's statutory records if it is information or a document which the person is required to keep and preserve under or by virtue of—
the Taxes Acts, or
any other enactment relating to a tax.
Information and documents cease to form part of a person's statutory records when the period for which they are required to be preserved by the enactments mentioned in subsection (4) has expired.
Notice of appeal must be given—
in writing to the officer who gave the notice, and
within the period of 30 days beginning with the day on which the notice was given.
The notice of appeal must state the grounds of the appeal.
On an appeal that is notified to the tribunal, the tribunal may—
confirm the notice or a requirement under the notice,
vary the notice or such a requirement, or
set aside the notice or such a requirement.
Where the tribunal confirms or varies the notice or a requirement, the person to whom the notice was given must comply with the notice or requirement—
within such period as is specified by the tribunal, or
if the tribunal does not specify a period, within such period as is reasonably specified in writing by an officer of Revenue and Customs following the tribunal's decision.
A decision of the tribunal on an appeal under this section is final (despite the provisions of sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007).
Subject to this section, the provisions of Part 5 of TMA 1970 relating to appeals have effect in relation to an appeal under this section.
The Commissioners may specify the form and manner in which information required to be provided or documents required to be produced by sections 255 to 264 must be provided or produced if the provision is to be complied with.
The Commissioners may specify that a document must be produced for inspection—
at a place agreed between the person and an officer of Revenue and Customs, or
at such place (which must not be a place used solely as a dwelling) as an officer of Revenue and Customs may reasonably specify.
The production of a document in compliance with a notice under this Part is not to be regarded as breaking any lien claimed on the document.
Where the effect of a notice under section 255, 257 or 262 is to require a person to produce a document, the person may comply with the requirement by producing a copy of the document, subject to any conditions or exceptions that may be prescribed.
Subsection (1) does not apply where—
the effect of the notice is to require the person to produce the original document, or
an authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, subsequently makes a request in writing to the person for the original document.
Where an officer requests a document under subsection (2)(b), the person to whom the request is made must produce the document— as is reasonably requested by the officer.
within such period, and
at such time and by such means,
Nothing in this Part requires a person to provide or produce—
information that relates to the conduct of a pending appeal relating to tax or any part of a document containing such information,
journalistic material (as defined in section 13 of the Police and Criminal Evidence Act 1984) or information contained in such material, or
personal records (as defined in section 12 of the Police and Criminal Evidence Act 1984) or information contained in such records (but see subsection (2)).
A notice under this Part may require a person—
to produce documents, or copies of documents, that are personal records, omitting any information whose inclusion (whether alone or with other information) makes the original documents personal records (“personal information”), and
to provide any information contained in such records that is not personal information.
Nothing in this Part requires a person to produce a document—
which is not in the possession or power of that person, or
if the whole of the document originates more than 6 years before the requirement to produce it would, if it were not for this section, arise.
Nothing in this Part requires any person to disclose to HMRC any privileged information.
“Privileged information” means information with respect to which a claim to legal professional privilege by the person who would (ignoring the effect of this section) be required to disclose it, could be maintained in legal proceedings.
In the case of legal proceedings in Scotland, the reference in subsection (2) to legal professional privilege is to be read as a reference to confidentiality of communications.
This section applies where a notice is given under section 258(4) or (5) and the person to whom the notice is given is a tax adviser.
The notice does not require a tax adviser—
to provide information about relevant communications, or
to produce documents which are the tax adviser's property and consist of relevant communications.
Subsection (2) does not have effect in relation to—
information explaining any information or document which the person to whom the notice is given has, as tax accountant, assisted any person in preparing for, or delivering to, HMRC, or
a document which contains such information.
But subsection (2) is not disapplied by subsection (3) if the information in question has already been provided, or a document containing the information has already been produced, to an officer of Revenue and Customs.
In this section—
in relation to a disclosure falling within subsection (1)(za) or (zb), a proposal for arrangements falling within the description specified in the stop notice to which the disclosure relates, or
No duty of confidentiality or other restriction on disclosure (however imposed) prevents the voluntary disclosure by a relevant client or a relevant intermediary to HMRC of information or documents about—
a person subject to a stop notice,
a monitored promoter, or
relevant proposals or relevant arrangements in relation to which a monitored promoter is a promoter.
arrangements or proposals for arrangements of a description specified in a stop notice in relation to which a person subject to a stop notice is a promoter,
“Relevant client” , in relation to a person mentioned in paragraph (za), (zb), (a) or (b) of subsection (1), means a person in relation to whom the person so mentioned—
has made a firm approach in relation to an applicable proposal with a view to making the proposal available for implementation by that person or another person;
has made an applicable proposal available for implementation by that person;
took part in the organisation or management of applicable arrangements entered into by that person.
“Relevant intermediary” means a person who is an intermediary in relation to an applicable proposal in relation to which the person mentioned in paragraphs (za), (zb), (a) or (b) of subsection (1) is a promoter.
The applicable proposal or applicable arrangements mentioned in subsection (2) or (3) need not be the applicable proposals or applicable arrangements to which the disclosure relates.
Nothing in this section authorises a disclosure of information that would contravene the data protection legislation (but in determining whether a disclosure would do so, take into account this section).
For the purposes of this section, a person mentioned in subsection (1)(za) or (zb) is a promotor of arrangements or a proposal for arrangements if the person would be a promoter of those arrangements or proposal if those arrangements or that proposal were relevant arrangements or a relevant proposal (see section 235(2) to (6) and any regulations made under section 235(6)).
In this section—
Schedule 36 to FA 2008 (information and inspection powers) applies for a relevant purpose in relation to a relevant person as it applies for the purpose of checking the tax position of a person as if—
any provisions which can have no application for that purpose were omitted (for example, paragraphs 10A, 11, 12A and 12B);
references to “the taxpayer” were to “the relevant person”;
references to prejudice to the assessment or collection of tax included prejudice to the fulfilment of a relevant purpose;
references to “business documents” included any documents (or copies of documents) in connection with any relevant arrangements or relevant proposal;
references to a pending appeal relating to tax were to a pending appeal by the relevant person under this Part;
in paragraph 13, after “paragraph 39” there were inserted “ of this Schedule and paragraph 2(3A) of Schedule 35 to FA 2014 ”;
paragraphs 21 to 21B were omitted;
paragraph 25 were omitted;
in paragraph 29(1) for “a taxpayer”, in the first place it occurs, there were substituted “ a relevant person ”;
Part 7 (penalties) were omitted (but see Schedule 35 of this Act).
A person is “relevant” if—
the officer suspects that the person carries on, or has in the past carried on, a business as a promoter in relation to a relevant proposal or relevant arrangements and—
the officer suspects that the person has met a threshold condition,
the officer suspects the person could be given a defeat notice, or
the officer suspects the person promotes, or has promoted, arrangements, or proposals for such arrangements, of a description that the officer suspects could be specified in a stop notice,
the officer suspects that—
the person made a relevant transfer, or
the person is a person to whom a relevant transfer was made, or
the person is, or was, subject to a stop notice, conduct notice or monitoring notice.
The following are “relevant purposes” in relation to a relevant person—
determining whether the relevant person carries on or has in the past carried on a business as a promoter in relation to a relevant proposal or relevant arrangements;
determining whether the relevant person has met a threshold condition;
determining whether the relevant person could be given a defeat notice;
determining whether the person has provided false or misleading information or documents in relation to a stop notice, conduct notice or monitoring notice;
determining whether arrangements, or proposals for such arrangements, that an officer suspects are promoted by the relevant person are of a description that could be specified in a stop notice;
enabling HMRC to understand the operation of arrangements, or proposals for such arrangements, that an officer suspects are promoted by the relevant person;
identifying any other person who has a connection with the relevant person that results (whether solely because of that connection or otherwise) in the relevant person being a member of a promotion structure;
determining whether the relevant person made a relevant transfer, and if so to whom;
determining whether a relevant transfer was made to the relevant person, and if so by whom;
monitoring compliance with any stop notice, conduct notice or monitoring notice the relevant person is subject to.
In this section—
reference to compliance with a stop notice, conduct notice or monitoring notice includes compliance with any provisions of this Part that a person subject to such a notice must comply with;
reference to a person “promoting” is to be construed in accordance with section 236A(7);
“relevant transfer” has the meaning it has in paragraph 5 of Schedule 33A (promotion structures).
Schedule 35 contains provision about penalties for failure to comply with provisions of this Part.
In section 98C of TMA 1970 (notification under Part 7 of FA 2004), after subsection (2E) insert—
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subsection (2) applies where—
a person gives HMRC a document of a kind listed in the Table in paragraph 1 of Schedule 24 to FA 2007 (penalties for providing inaccurate documents to HMRC), and
the document contains an inaccuracy.
In determining whether or not the inaccuracy was careless for the purposes of paragraph 3(1)(a) of Schedule 24 to FA 2007, reliance by the person on legal advice relating to relevant arrangements in relation to which a monitored promoter is a promoter is to be disregarded if the advice was given or procured by a person who was a monitored promoter in relation to the arrangements.
In section 36 of TMA 1970 (loss of tax brought about carelessly or deliberately), in subsection (1A)—
omit the “or” following paragraph (b), and
at the end of paragraph (c) insertor .
In paragraph 12B of Schedule 2 to OTA 1975 (extended time limits for assessment of petroleum revenue tax)—
in sub-paragraph (1), after “sub-paragraph (2)” insert “ and (2A) ”,
after sub-paragraph (2) insert—,
in sub-paragraph (5), for “or (2)” substitute “ , (2) or (2A) ”, and
in sub-paragraph (6), for “or (2)” substitute “ , (2) or (2A) ”.
In section 240 of IHTA 1984 (underpayments)—
in subsection (3) for “and (5)” substitute “ to (5A) ”,
in subsection (5), for “those dates” substitute “ the dates in subsection (2)(a) and (b) ”,
after subsection (5) insert—, and
in subsection (8), for “, (5) and (6)” substitute “ to (6) ”.
In paragraph 46 of Schedule 18 to FA 1998 (general time limits for assessments to corporation tax), in sub-paragraph (2A)—
omit the “or” following paragraph (b), and
at the end of paragraph (c) insertor .
In paragraph 31 of Schedule 10 to FA 2003 (time limit for assessment of stamp duty land tax), in sub-paragraph (2A)—
omit the “or” following paragraph (b), and
at the end of paragraph (c) insertor .
In paragraph 25 of Schedule 33 to FA 2013 (time limit for assessment: annual tax on enveloped dwellings), in sub-paragraph (4)—
omit the “or” following paragraph (b), and
at the end of paragraph (c) insert, or
A person is guilty of an offence if—
the person is required to produce a document by a notice given under section 255,
the tribunal approved the giving of the notice under section 256, and
the person conceals, destroys or otherwise disposes of, or arranges for the concealment, destruction or disposal of, that document.
Subsection (1) does not apply if the person acts after the document has been produced to an officer of Revenue and Customs in accordance with section 255, unless the officer has notified the person in writing that the document must continue to be available for inspection (and has not withdrawn the notification).
Subsection (1) does not apply, in a case to which section 268(1) applies, if the person acts after the end of the expiry of 6 months beginning with the day on which a copy of the document was produced in accordance with that section unless, before the expiry of that period, an officer of Revenue and Customs makes a request for the original document under section 268(2)(b).
A person who, without reasonable excuse, fails to comply with a duty imposed under section 236B(1) is guilty of an offence.
The recipient of a stop notice (“R”) is guilty of an offence if—
R fails, without reasonable excuse, to comply with a duty imposed under section 236B(3)(a), (4)(a) or (5)(a) to give a copy of the notice to another person (“P”),
P subsequently fails to comply with a duty imposed under section 236B(1) in relation to the notice, and
at the time of P’s failure the stop notice continues to have effect in relation to R.
For the purposes of this section—
an insufficiency of funds is not a reasonable excuse unless attributable to events outside the person's control,
if the person relies on any other person to do anything, that is not a reasonable excuse unless the first person took reasonable care to avoid the failure,
if the person had a reasonable excuse for the failure but the excuse has ceased, the person is to be treated as having continued to have the excuse if the failure is remedied without unreasonable delay after the excuse ceased, and
reliance on legal advice is to be taken automatically not to constitute a reasonable excuse where the person is a monitored promoter if either—
the advice was not based on a full and accurate description of the facts, or
the conclusions in the advice that the person relied on were unreasonable.
If an offence under section 277A is committed by a body corporate or a partnership and— the person (as well as the body or partnership) commits the offence and is liable to be proceeded against and punished accordingly.
is committed with the consent or connivance of a relevant person in relation to the body or partnership, or
is attributable to neglect on the part of such a person,
A “relevant person” is—
in relation to a body corporate other than one whose affairs are managed by its members—
a director, manager, secretary or other similar officer of the body, or a person purporting to act in such a capacity, or
a shadow director within the meaning of section 251 of the Companies Act 2006;
in relation to a limited liability partnership or other body corporate whose affairs are managed by its members—
a member who exercises functions of management with respect to it, or a person purporting to act in such a capacity, or
in the case of a limited liability partnership, a shadow member within the meaning of regulation 2 of the Limited Liability Partnerships Regulations 2001 (S.I. 2001/1090);
in relation to a partnership, a partner or a person purporting to act in such a capacity.
A person is guilty of an offence if the person conceals, destroys or otherwise disposes of, or arranges for the concealment, destruction or disposal of, a document after an officer of Revenue and Customs has informed the person in writing that—
the document is, or is likely, to be the subject of a notice under section 255, and
the officer of Revenue and Customs intends to seek the approval of the tribunal to the giving of the notice.
A person is not guilty of an offence under this section if the person acts after—
at least 6 months has expired since the person was, or was last, informed as described in subsection (1), or
a notice has been given to the person under section 255, requiring the document to be produced.
A person who is guilty of an offence under section 277A, 278 or 279 is liable—
on summary conviction, to—
in England and Wales, a fine, or
in Scotland or Northern Ireland, a fine not exceeding the statutory maximum, or
on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine or both.
In relation to an offence committed before section 85(1) of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 comes into force, subsection (1)(a)(i) has effect as if the reference to “a fine” were a reference to “a fine not exceeding the statutory maximum”.
Schedule 36 contains provision about the application of this Part to partnerships.
Regulations under this Part are to be made by statutory instrument.
Apart from an instrument to which subsection (3) applies, a statutory instrument containing regulations made under this Part is subject to annulment in pursuance of a resolution of the House of Commons.
A statutory instrument containing (whether alone or with other provision) regulations made under— may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons.
section 238(7),
paragraph 14 of Schedule 34,
paragraph 5(1) of Schedule 35, or
paragraph 31 of Schedule 34A,
paragraph 21 of Schedule 36,
Regulations under this Part—
may make different provision for different purposes;
may include transitional provision and savings.
In the provisions mentioned in subsection (2)—
“tax” includes value added tax and other indirect taxes, and
“tax advantage” has the meaning given by section 234(3) and also includes a tax advantage as defined for VAT in paragraph 6, and for other indirect taxes in paragraph 7, of Schedule 17 to FA 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes).
Those provisions are—
section 237D;
section 241B;
Schedule 34A.
Other references in this Part to “tax” are to be read as including value added tax or other indirect taxes so far as that is necessary for the purposes of sections 237A to 237D, 241A and 241B and Schedule 34A; but “tax” does not include value added tax or other indirect taxes in section 237A(10) or 237B(3).
In this section “indirect tax” has the same meaning as in Schedule 17 to FA 2017.
In this Part—
A reference in a provision of this Part to an authorised officer is to an officer of Revenue and Customs who is, or is a member of a class of officers who are, authorised by the Commissioners for the purposes of that provision.
A reference in a provision of this Part to meeting a threshold condition is to meeting one of the conditions described in paragraphs 2 to 12 of Schedule 34.
Any reference in this Part to a person's activities as a promoter includes—
if the person falls within the case described in paragraph 2 of Schedule 33A, the activities carried out by the person and other persons by virtue of which the person falls within the case,
if the person falls within the case described in paragraph 3 of that Schedule, activities carried out under the instruction or guidance of a person who carries on business as a promoter,
if the person falls within the case described in paragraph 4 of that Schedule, the activities of the body corporate or partnership that the person controls, and
if the person falls within the case described in paragraph 5 by virtue of sub-paragraph (1)(b) of that paragraph, the activities of the body corporate or partnership that the person controls.
Part 7 of FA 2004 (disclosure of tax avoidance schemes) is amended as set out in subsections (2) to (4).
After section 310 insert—
In section 316(2) (meaning of the “information provisions”), after “310,” insert “ 310A, ”.
“working day” means a day which is not a Saturday or a Sunday, Christmas Day, Good Friday or a bank holiday under the Banking and Financial Dealings Act 1971 in any part of the United Kingdom.
Section 98C of TMA 1970 (notification under Part 7 of FA 2004) is amended as set out in subsections (6) to (10).
In subsection (1)(a)(i), for “or (c)” substitute “ , (c) or (ca) ”.
In subsection (2), after paragraph (c) insert—.
A failure to comply with section 310A The first day after the end of the period within which the person must comply with section 310A.
In subsection (2ZB)—
in paragraph (a)—
for “person's” substitute “promoter's”;
after “(3)” insert “ or section 310A ”;
for “person” substitute “ promoter ”;
in paragraph (b)—
before “person's” insert “ relevant ”;
for “or 310” substitute “ , 310 or 310A ”;
before “person” insert “ relevant ”.
After subsection (2ZB) insert—
Section 310A of FA 2004 applies to a person who provides the prescribed information about notifiable proposals or arrangements in compliance or purported compliance with section 308, 309 or 310 on or after the day on which this Act is passed.
No later than the end of the calendar year in which a reporting period ends, the Commissioners for Her Majesty's Revenue and Customs must publish a report on the operation during the period of the Code of Practice on Taxation for Banks as published by the Commissioners on 31 May 2013 (“the Code”).
If the Commissioners determine that a group or entity which was a participating group or entity (see section 286) during some or all of a reporting period breached the Code at a time during the period, the Commissioners may name the group or entity in a report under this section. This subsection is subject to section 287.
If— the information may be included in the first subsequent report in which it is reasonably practicable for the information to be included.
the Commissioners determine that there has been a breach of the Code, but
it was not reasonably practicable for information relating to the breach to be included in the report for the reporting period in which the breach occurred,
The report for a reporting period must list—
the groups or entities which were participating groups or entities during some or all of the reporting period,
the groups or entities appearing to the Commissioners—
not to be covered by paragraph (a), and
to be groups or entities in relation to which the bank levy is charged in a case where the chargeable period ends in the reporting period (or would be charged in such a case if it is assumed that any period of account beginning before or in, but ending after, the reporting period ends at the end of the reporting period instead), and
the entities appearing to the Commissioners—
not to be covered by paragraph (a) or (b), and
to be entities which fell within subsection (2)(b) or (c) of section 991 of ITA 2007 (subject to subsection (3) of that section) during some or all of the reporting period.
In a case where the bank levy is (or would be) charged in relation to a relevant non-banking group (as defined in paragraph 11 of Schedule 19 to FA 2011), any list prepared under subsection (4)(b) is to refer to the group only so far as it consists (or would consist) of—
relevant UK banking sub-groups (as defined in paragraph 19(5) of that Schedule), and
so far as not covered by paragraph (a)—
UK resident banks (as defined in paragraph 80 of that Schedule), and
relevant foreign banks (as defined in paragraph 78 of that Schedule).
For the purposes of subsection (4)(b)(ii) it does not matter if the amount of the bank levy is (or would be) nil in the case of a group or entity.
The first “reporting period” is the period beginning with 5 December 2013 and ending with 31 March 2015.
After that, each year beginning with 1 April is a “reporting period”.
The report for the first reporting period must list the groups or entities which were participating groups or entities on 5 December 2013.
Subsection (9) does not require the inclusion in the report of any information which has previously been published by the Commissioners, so long as the report makes reference to the previous publication.
If, on or after 31 May 2013, the Commissioners publish a document which states that only Part 1 of the Code is to apply in the case of a group or entity of a specified description, in the case of such a group or entity references to the Code are to be read as references to Part 1 of the Code.
This section applies for the purposes of section 285.
A group or entity becomes a “ participating ” group or entity if, on or after 31 May 2013, it notifies the Commissioners in writing that it is unconditionally committed to complying with the Code.
A group or entity ceases to be a “participating” group or entity if it notifies the Commissioners in writing that it is no longer unconditionally committed to complying with the Code.
A group or entity which ceases to be a “participating” group or entity in accordance with subsection (3) becomes a “ participating ” group or entity again if it gives a further written notice of the kind mentioned in subsection (2) (subject to what follows).
Subsections (6) and (7) apply if a group or entity is named in a report under section 285 under subsection (2) of that section.
If the group or entity is a “participating” group or entity immediately before the publication of the report, it ceases to be so on the publication of the report.
In any case, the group or entity cannot be a “participating” group or entity after the publication of the report unless and until—
it gives the Commissioners a further written notice of the kind mentioned in subsection (2), and
the Commissioners are satisfied that it is unconditionally committed to complying with the Code.
The Commissioners must—
publish a protocol, to be called “the Governance Protocol”, setting out how the Commissioners are going to operate the Code and section 285(2), and
follow the Governance Protocol when operating the Code and section 285(2).
The Governance Protocol must require the Commissioners, before determining for the purposes of section 285(2) whether a group or entity has breached the Code at a time during a reporting period, to commission a person (an “independent reviewer”) who is independent of the Commissioners and the group or entity to report on—
whether the group or entity has breached the Code, and
whether the group or entity should be named in a report under section 285 were the Commissioners to determine that the group or entity has breached the Code.
The independent reviewer—
must give the group or entity a reasonable opportunity to make representations about the matters being considered by the independent reviewer,
subject to subsection (8), must have regard to the group or entity's representations and may have regard to any other matter which the independent reviewer considers to be relevant,
must give the group or entity a copy of the independent reviewer's report, and
must otherwise follow the Governance Protocol but only so far as it is relevant to the independent reviewer's functions.
The Governance Protocol may provide that, in the case of any conduct of a group or entity to which subsection (5) or (5A) applies, the independent reviewer is to assume that the conduct constitutes a breach of the Code and, accordingly, is to report only on the matter mentioned in subsection (2)(b).
This subsection applies to any conduct—
in relation to which there has been given—
an opinion notice under paragraph 11(3)(b) of Schedule 43 to FA 2013 (GAAR advisory panel: opinion that conduct unreasonable) stating the joint opinion of all the members of a sub-panel arranged under paragraph 10 of that Schedule, or
one or more such notices stating the opinions of at least two members of such a sub-panel, and
in relation to which there has been given a notice under paragraph 12 of that Schedule or paragraph 8 or 9 of Schedule 43A to that Act (HMRC final decision on tax advantage) stating that a tax advantage is to be counteracted.
The Governance Protocol must make provision—
for the Commissioners, in determining whether a group or entity has breached the Code or should be named in a report under section 285—
to have regard to the independent reviewer's report, and
to give the group or entity a reasonable opportunity to make representations about the matters being considered by the Commissioners,
for the Commissioners to notify the group or entity in writing of their determination,
if the Commissioners' determination is different from the independent reviewer's determination, for the Commissioners to include in the notification of their determination to the group or entity their reasons for making a different determination, and
if the Commissioners determine that the group or entity should be named in a report under section 285, for the Commissioners to hold off including in a report under that section any information relating to the breach of the Code—
until the notification of the determination is given to the group or entity, and
for at least 90 days after the day on which that notification is given.
This subsection applies to any conduct—
in relation to which there has been given—
an opinion notice under paragraph 6(4)(b) of Schedule 43B to FA 2013 (GAAR advisory panel: opinion that such conduct unreasonable) stating the joint opinion of all the members of a sub-panel arranged under that paragraph, or
one or more such notices stating the opinions of at least two members of such a sub-panel, and
in relation to which there has been given a notice under paragraph 8 of that Schedule (HMRC final decision on tax advantage) stating that a tax advantage is to be counteracted.
For the purposes of subsection (5), any opinions of members of the GAAR advisory panel which must be considered before a notice is given under paragraph 8 or 9 of Schedule 43A to FA 2013 (opinions about the lead arrangements) are taken to relate to the conduct to which the notice relates.
The Governance Protocol must make provision for the independent reviewer and the Commissioners, in determining whether a group or entity should be named in a report under section 285, to have regard to—
any action taken by the group or entity to remedy the breach of the Code or otherwise to mitigate its effect, and
any exceptional circumstances which might justify not naming the group or entity.
In determining whether a group or entity has breached the Code or should be named in a report under section 285, the independent reviewer and the Commissioners—
may have regard to any conduct of the group or entity occurring on or after 5 December 2013, but
must not have regard to any conduct of the group or entity occurring before that date or at a time when the group or entity is not a participating group or entity.
Subsection (10) applies if the independent reviewer determines—
that a group or entity has not breached the Code, or
that a group or entity should not be named in a report under section 285.
The Commissioners may make a determination which is different from the independent reviewer's determination only if—
the independent reviewer's determination is flawed when considered in the light of the principles applicable in proceedings for judicial review, or
there are other compelling reasons for making a different determination.
If the Commissioners make a different determination in a case where subsection (10) applies—
their reasons notified under subsection (6)(c) must set out (in particular) why the independent reviewer's determination is flawed or (as the case may be) the other compelling reasons,
in any proceedings in which an issue arises as to whether it was lawful for them to make the different determination it is for them to show that it was lawful for them to make the different determination, and
subsection (12) applies in relation to any proceedings for judicial review of the different determination instituted by a member of the group or by the entity.
If the proceedings are instituted no later than the end of the 90 day period mentioned in subsection (6)(d)(ii)—
they are to be treated as having been instituted within any applicable time limit (if that would not otherwise be the case),
the court must give permission or leave for the proceedings to proceed (if the court's permission or leave is required), unless that would lead to multiple proceedings dealing with the same issues, and
any hearing (including any hearing on appeal) must be held in private, unless (having regard to the risk that holding the hearing in public might undermine to any extent the purpose of the instituting of the proceedings) the court is satisfied that there are exceptional circumstances requiring the hearing to be held in public.
If a determination of the Commissioners is different from the independent reviewer's determination, they must mention that fact—
in the report under section 285 for the reporting period in question, or
if it was not reasonably practicable for that fact to be mentioned in that report, in the first subsequent report under section 285 in which it is reasonably practicable for that fact to be mentioned.
In determining for the purposes of section 285(3) or subsection (13)(b) of this section when it is reasonably practicable for any information to be included in a report under section 285, regard must be had (in particular) to the requirements of subsections (1) to (12) of this section.
The Commissioners must disclose to an independent reviewer such information held by them as they consider appropriate to enable the independent reviewer to carry out the independent reviewer's functions.
If the Commissioners disclose information to an independent reviewer under subsection (15), section 18 of CRCA 2005 (confidentiality) applies in relation to the independent reviewer's holding and use of the information as if the independent reviewer were an officer of Revenue and Customs and the independent reviewer's functions were functions of the independent reviewer as such an officer.
The Commissioners may publish a relevant document, or revoke or modify a relevant document previously published by them, only after—
consultation with such persons as they consider appropriate, and
consideration of any representations made to them in the course of the consultation.
When publishing a relevant document or a modified relevant document or when revoking a relevant document, the Commissioners must also publish—
an account of the representations mentioned in subsection (1)(b), and
their responses to those representations.
In this section “relevant document” means—
the Governance Protocol, or
any document of the kind mentioned in section 285(11).
This section does not apply in relation to the first publication of the Governance Protocol.
This section does not affect any document of the kind mentioned in section 285(11) published before the passing of this Act except where it is to be revoked or modified after the passing of this Act.
Section 363A of TIOPA 2010 (residence of offshore funds which are undertakings for collective investment in transferable securities) is amended as follows.
For subsections (1) and (2) substitute—
In subsection (3), for “offshore fund” substitute “ UCITS or AIF ”.
AIF” has the meaning given in regulation 3 of the Alternative Investment Fund Managers Regulations 2013, “foreign country or territory” means a country or territory outside the United Kingdom, “investment trust with respect to an accounting period” is to be construed in accordance with section 1158 of CTA 2010, “UCITS” means an undertaking for collective investment in transferable securities, “the UCITS Directive” means Directive 2009/65/EC of the European Parliament and of the Council, “company UK REIT in relation to an accounting period” and “group UK REIT in relation to an accounting period” are to be construed in accordance with section 527 of CTA 2010.
Accordingly, in TIOPA 2010—
in section 1 (overview of Act), in subsection (1)(e) after “funds” insert “ etc ”,
in the heading for Part 8, after “FUNDS” insert “ ETC ”, and
for the heading of section 363A substitute “ Residence of undertakings for collective investment in transferable securities and alterative investment funds ”.
The amendments made by this section are treated as having come into force on 5 December 2013.
Schedule 37 contains provision about tax reliefs in connection with companies owned by employee-ownership trusts.
Schedule 1A to FA 2005 (meaning of “disabled person”) is amended as follows.
In paragraph 1—
for paragraph (c) substitute—
in paragraph (d), omit “by virtue of entitlement to the daily living component”.
In paragraph 3, after “rate” insert “ , or to the mobility component at the higher rate, ”.
In paragraph 4, omit “by virtue of entitlement to the daily living component”.
The amendments made by this section have effect—
for the purposes of sections 89, 89A and 89B of IHTA 1984, in relation to property transferred into settlement on or after 6 April 2014, and
for all other purposes, for the tax year 2014-15 and subsequent tax years.
TIOPA 2010 is amended as follows.
For section 34(1)(b) (reduction in credit: payment by reference to foreign tax) substitute—
In section 34, after subsection (3) insert—
For section 112(3)(b) (deduction from income for foreign tax (instead of credit against UK tax)) substitute—.
In section 112, after subsection (7) insert—
In section 42(4) (provisions relating to the limit imposed by section 42(2) on credit against corporation tax) for the “and” after “(as defined in section 44),” substitute— “ section 49B, which requires subsection (2) to be applied separately to certain non-trading credits, and ”.
After section 49A insert—
The amendments made by subsections (2), (3), (4) and (5) have effect in relation to payments made by a tax authority on or after 5 December 2013.
The amendments made by subsections (6) and (7) have effect in relation to accounting periods beginning on or after 5 December 2013.
For the purposes of subsection (9), an accounting period beginning before, and ending on or after, 5 December 2013 is to be treated as if so much of the period as falls before that date, and so much of the period as falls on or after that date, were separate accounting periods.
In Chapter 9 of Part 9A of TIOPA 2010 (controlled foreign companies: qualifying loan relationships) in section 371IH (exclusions from definition of “qualifying loan relationship”) after subsection (9) insert—
The amendment made by this section has effect for cases in which the relevant arrangement is made on or after 5 December 2013.
In Chapter 9 of Part 9A of TIOPA 2010 (controlled foreign companies: qualifying loan relationships) in section 371IH (exclusions from definition of “qualifying loan relationship”) in subsection (10)(c) for “wholly or mainly used” substitute “ used to any extent (other than a negligible one) ”.
The amendment made by this section has effect for accounting periods of CFCs beginning on or after 5 December 2013.
The following subsections apply in relation to a qualifying loan relationship of a CFC if—
profits of the qualifying loan relationship (“the relevant profits”) would, apart from those subsections, be included in the CFC's qualifying loan relationship profits for an accounting period of the CFC (“the straddling period”) which begins before 5 December 2013 but ends on or after that date, and
the creditor relationship in question would not be a qualifying loan relationship for the straddling period were the amendment made by this section to have effect for accounting periods of CFCs beginning before 5 December 2013.
Apportion the relevant profits between the part of the straddling period falling before 5 December 2013 and the part falling on or after that date—
in accordance with section 1172 of CTA 2010 (time basis), or
if that method produces a result that is unjust or unreasonable, on a just and reasonable basis.
The relevant profits are to be excluded from the CFC's qualifying loan relationship profits for the straddling period so far as they are apportioned to the part of the straddling period falling on or after 5 December 2013.
Section 221 of FA 2012 (tax consequences of financial sector regulation) is amended as follows.
In subsection (1) after “imposed” insert “ , or which appears to the Treasury likely to be imposed, ”.
After subsection (4) insert—
Schedule 38 contains provision about the Scottish basic, higher and additional rates of income tax.
In Chapter 2 of Part 4A of the Scotland Act 1998, after section 80H insert—
The amendment made by this section has effect in relation to the financial year ending on 31 March 2015 and subsequent financial years.
Schedule 39 makes provision about the tax treatment of co-operative, community benefit and industrial and provident societies and credit unions.
In section 107 of FA 2007 (limitation period in old actions for mistake of law relating to direct tax), after subsection (5) insert—
The amendment made by this section has effect in relation to actions brought, and causes of action arising, before, on or after the day on which this Act is passed.
In section 4(1) of the National Loans Act 1968 (local loans granted by the Public Works Loan Commissioners)—
for “£55,000 million” substitute “ £85 billion ”, and
for “£70,000 million” substitute “ £95 billion ”.
The Local Loans (Increase of Limit) Order 2008 (S.I. 2008/3004) is revoked.
This section comes into force on such day as the Treasury may by order made by statutory instrument appoint.
The Treasury may by order amend any index of defined expressions contained in an Act relating to taxation, so as to make amendments consequential on any enactment.
In this section—
stamp duty land tax,
This paragraph applies in relation to a chargeable period (“the second straddling period”) which begins before 1 January 2016 and ends on or after that date. The maximum allowance under section 51A of CAA 2001 for the second straddling period is the sum of each maximum allowance that would be found if— were treated as separate chargeable periods. But, so far as concerns expenditure incurred on or after 1 January 2016, the maximum allowance under section 51A of CAA 2001 for the second straddling period is the maximum allowance, calculated in accordance with sub-paragraph (2), for the period mentioned in paragraph (b) of that sub-paragraph.
Chapter 8 of Part 7 of ITEPA 2003 (employment income: income and exemptions relating to securities: CSOP schemes) is amended as follows.
This Part is treated as having come into force on 6 April 2014.
The Commissioners may direct the Gambling Commission to revoke a remote operating licence suspended pursuant to a direction under paragraph 3 if the breach specified in the final notice has not been remedied in full to the satisfaction of the Commissioners within the period of 6 months beginning with the day on which the direction under paragraph 3 was given. A direction under this paragraph may include provision directing the Gambling Commission as to how it is to exercise its powers under section 119(4) of the Gambling Act 2005 (time of revocation and saving and transitional provision). The Commissioners must notify the holder of the suspended licence of their decision to give the direction. That decision is to be treated as a relevant decision for the purposes of sections 15A and 15C to 16 of FA 1994 (customs and excise reviews and appeals) and, accordingly, the notice must include an offer of a review of the decision under section 15A of that Act. Only the holder of the suspended licence may bring an appeal under section 16 of FA 1994 as applied by sub-paragraph (4).
Each of the conditions described in paragraphs 2 to 12 is a “threshold condition”.
A person meets this condition if the person is given a conduct notice under paragraph 4 of Schedule 38 to FA 2012 (tax agents: dishonest conduct) and either—
the time period during which a notice of appeal may be given in relation to the notice has expired, or
an appeal against the notice has been made and the tribunal has confirmed the determination referred to in sub-paragraph (1) of paragraph 4 of that Schedule.
A person meets this condition if—
arrangements in relation to which the person is a promoter have been referred to the GAAR Advisory Panel under Schedule 43 to FA 2013,
one or more opinion notices are given in relation to the arrangements under paragraph 11(3)(b) of that Schedule (opinion of sub-panel of GAAR Advisory Panel that arrangements are not reasonable), and
the notice, or the notices taken together, either—
state the joint opinion of all the members of the sub-panel arranged under paragraph 10 of that Schedule, or
state the opinion of two or more members of that sub-panel.
A person meets this condition if the person fails to comply with an information notice given under any of paragraphs 1, 2, 5 and 5A of Schedule 36 to FA 2008. For the purposes of section 237, the failure to comply is taken to occur when the period within which the person is required to comply with the notice expires (without the person having complied with it).
In Part 7 of TCGA 1992 (other property, businesses, investments etc), after section 236G insert—
Paragraph 27 of Schedule 2 to ITEPA 2003 (share incentive plans: requirement as to listing etc) is amended as follows. In sub-paragraph (1), omit the “or” at the end of paragraph (b) and after that paragraph insert—. But a company is not a close company for the purposes of sub-paragraph (2) if it is subject to an employee-ownership trust. A company (“C”) is “subject to an employee-ownership trust” if— Section 312E (the indirect employee-ownership requirement) applies for the purposes of sub-paragraph (4), subject to the following modifications— Section 312G (meaning of “service company”) applies for the purposes of sub-paragraph (4)(c), subject to the following modifications— The amendments made by this paragraph come into force on 1 October 2014.
Paragraph 19 of Schedule 3 to ITEPA 2003 (SAYE option schemes: requirements as to listing) is amended as follows. In sub-paragraph (1), omit the “or” at the end of paragraph (b) and after that paragraph insert—. But a company is not a close company for the purposes of sub-paragraph (2) if it is subject to an employee-ownership trust (within the meaning of paragraph 27(4) to (6) of Schedule 2). The amendments made by this paragraph come into force on 1 October 2014.
In the title omit “Approved”.
Paragraphs 206 to 215 below apply in relation to a CSOP scheme established before 6 April 2014.
Section 521 (introduction to CSOP schemes) is amended as follows. In the heading omit “Approved”. In subsection (1)— Omit subsection (2). In subsection (3)(c) for “approved” substitute “Schedule 4”. In subsection (4)—
If the scheme was an approved CSOP scheme immediately before 6 April 2014, this paragraph applies to any provision which the scheme contains immediately before that date and which requires the approval or agreement of Her Majesty’s Revenue and Customs or an officer of Revenue and Customs to be obtained in relation to any matter. On and after 6 April 2014, the provision is to have effect without the requirement for the approval or agreement, unless the requirement reflects a requirement for approval or agreement set out in Schedule 4 to ITEPA 2003 (as amended by this Part).
In paragraph 17 of Schedule 4 to ITEPA 2003 (CSOP schemes: requirements as to eligible shares), in sub-paragraph (1), omit the “or” after paragraph (a) and after paragraph (b) insert , or The amendment made by this paragraph come into force on 1 October 2014.
But the independence requirement is treated as met if the company is subject to an employee-ownership trust (within the meaning of paragraph 27(4) to (6) of Schedule 2). The amendment made by this paragraph comes into force in accordance with provision contained in an order made by the Treasury. Section 1014(4) of ITA 2007 (orders etc subject to annulment) does not apply in relation to an order under sub-paragraph (2).
In section 522 (share options to which Chapter applies) in subsection (1)(a) for “an approved” substitute “a Schedule 4”.
If the scheme was an approved CSOP scheme immediately before 6 April 2014, the amendment made by paragraph 169 above has effect in relation to the scheme only if, and when, there is an alteration in a key feature of the scheme on or after that date. In sub-paragraph (1) “key feature” has the meaning given in paragraph 28B(8) of Schedule 4 to ITEPA 2003 (as inserted by paragraph 179 above).
Section 524 (no charge in respect of exercise of option) is amended as follows. In subsection (1)(a) for “approved” substitute “a Schedule 4 CSOP scheme”. In subsection (2E)— In subsection (2L)—
If the scheme was an approved CSOP scheme immediately before 6 April 2014, on and after that date the scheme has effect with any modifications needed to reflect the amendment made by paragraph 170 above.
Schedule 4 is amended as follows.
The amendments made by paragraphs 172, 173 and 174(2) and (5) above have no effect in relation to share options granted under the scheme before 6 April 2014. If the scheme was an approved CSOP scheme immediately before 6 April 2014, on and after that date the scheme has effect with any modifications needed to reflect the amendments made by paragraphs 172, 173 and 174(2) and (5) above (subject to sub-paragraph (1) of this paragraph).
In the title omit “Approved”.
This paragraph applies if, immediately before 6 April 2014 the scheme was an approved CSOP scheme which contains provision authorised by paragraph 22(3) of Schedule 4 to ITEPA 2003. On and after 6 April 2014, the scheme has effect with any modifications needed to reflect the amendments made by paragraph 174(3) and (4) above.
In the cross-heading before paragraph 1 for “Approval of” substitute “Introduction to Schedule 4”.
The amendments made by paragraph 175 above have no effect in relation to share options granted before 6 April 2014 under the scheme. If immediately before 6 April 2014 the scheme was an approved CSOP scheme which contains provision authorised by paragraph 25 of Schedule 4 to ITEPA 2003, on and after that date the scheme has effect with any modifications needed to reflect the amendments made by paragraph 175 above (subject to sub-paragraph (1) of this paragraph).
Paragraph 1 (introduction) is amended as follows. For the purposes of the CSOP code a CSOP scheme is a Schedule 4 CSOP scheme if the requirements of Parts 2 to 6 of this Schedule are met in relation to the scheme. Sub-paragraph (A1) is subject to Part 7 of this Schedule which—
This paragraph applies if immediately before 6 April 2014 the scheme was an approved CSOP scheme which contains provision authorised by paragraph 25A(1) of Schedule 4 to ITEPA 2003. On and after 6 April 2014, the scheme has effect with any modifications needed to reflect the amendment made by paragraph 176(3) above.
In the title for Part 2 omit “for approval”.
Paragraph 28A of Schedule 4 to ITEPA 2003 (as inserted by paragraph 179 above) has effect in relation to the scheme— But the scheme cannot be a Schedule 4 CSOP scheme if, before 6 April 2014, an application for its approval was refused or an officer of Revenue and Customs decided to withdraw its approval. Sub-paragraph (2) is without prejudice to the outcome of any appeal under paragraph 29 or 32 of Schedule 4 to ITEPA 2003 against the refusal or decision to withdraw approval. The amendments made by this Part do not affect any right of appeal under paragraph 29 or 32 of Schedule 4 to ITEPA 2003 against a refusal or decision made before 6 April 2014 in relation to the scheme. Sub-paragraph (6) applies if a share option was granted before 6 April 2014 under the scheme at a time when the scheme was an approved CSOP scheme. On and after 6 April 2014, the CSOP code has effect in relation to the option as if it were granted under the scheme at a time when the scheme was a Schedule 4 CSOP scheme (but not if no notice under paragraph 28A of Schedule 4 to ITEPA 2003 is given in relation to the scheme or if the scheme cannot be a Schedule 4 CSOP scheme because of sub-paragraph (2) of this paragraph). In relation to the scheme—
In the cross-heading before paragraph 4 omit “for approval”.
If the scheme was an approved CSOP scheme before 6 April 2014, the amendments made by this Part and paragraphs 140 and 142 above do not affect the deductions which may be made in relation to the scheme under section 94A of ITTOIA 2005 or section 999 of CTA 2009 (deduction for costs of setting up scheme) if they would otherwise do so.
For paragraph 5 (general restriction on contents of scheme) substitute—
The amendments made by paragraph 180 above do not affect a notice given in relation to the scheme under paragraph 33 of Schedule 4 to ITEPA 2003 before 6 April 2014.
In paragraph 6 (limit on value of shares subject to options) in sub-paragraph (1)(b) for “approved” substitute “Schedule 4”.
Sub-paragraph (1) and the other paragraphs of this Part are subject to paragraph 25A(7B).
paragraph 21A (general requirements as to terms of option),
After paragraph 21 insert—
Paragraph 22 (requirements as to price for acquisition of shares etc) is amended as follows. In sub-paragraph (1)— If the scheme makes provision under sub-paragraph (3), the variation or variations made under that provision to take account of a variation in any share capital must (in particular) secure— Sub-paragraph (3) does not authorise any variation which would result in the requirements of the other paragraphs of this Schedule not being met in relation to the share option. Omit sub-paragraph (4). Omit sub-paragraph (5).
Paragraph 25 (exercise of options: death) is amended as follows. Make the existing text sub-paragraph (1). In the new sub-paragraph (1) omit “but not later than 12 months after that date”. Provision made under sub-paragraph (1) must permit the exercise of the options at any time on or after the date of death but not later than 12 months after that date.
Paragraph 25A (exercise of options: company events) is amended as follows. In sub-paragraph (1) for “or (6)” substitute “, (6) or (6A)”. In sub-paragraph (6)(b) for “an approved” substitute “a Schedule 4”. The relevant date for the purposes of this sub-paragraph is the date on which a non-UK company reorganisation arrangement applicable to or affecting— becomes binding on the shareholders covered by it. Sub-paragraphs (7B) to (7F) apply if the scheme makes provision under sub-paragraph (1) or (7). The scheme may provide that if, in consequence of a relevant event, shares in the company to which a share option relates no longer meet the requirements of Part 4 of this Schedule, the share option may be exercised under the provision made under sub-paragraph (1) or (7) (as the case may be) no later than 20 days after the day on which the relevant event occurs, notwithstanding that the shares no longer meet the requirements of Part 4 of this Schedule. In sub-paragraph (7B) “relevant event” means— Provision made under sub-paragraph (7B) may not authorise the exercise of a share option, as the case may be— The scheme may provide that a share option relating to shares in a company which is exercised during the period of 20 days ending with— is to be treated as if it had been exercised in accordance with the provision made under sub-paragraph (1) or (7) (as the case may be). If the scheme makes provision under sub-paragraph (7E) it must also provide that if— the exercise of the share option is to be treated as having had no effect.
Paragraph 26 (exchanges of options on company reorganisation) is amended as follows. In sub-paragraph (2) after paragraph (b) insert—. In sub-paragraph (3) after paragraph (b) omit “and” and insert—.
Paragraph 27 (requirements about share options granted in exchange) is amended as follows. In sub-paragraph (4)— For the purposes of this paragraph the market value of any shares is to be determined using a methodology agreed by Her Majesty’s Revenue and Customs.
For Part 7 substitute—
Paragraph 33 (power to require information) is amended as follows. An officer of Revenue and Customs may by notice require a person to provide the officer with any information— In sub-paragraph (2)(a)—
After paragraph 35 insert—
In paragraph 37 (index of defined expressions)—
omit the entry for “approved”, and
non-UK company reorganisation arrangement paragraph 35ZA Schedule 4 CSOP scheme paragraph 1 and Part 7 of this Schedule
The power to make an order under this section is exercisable by statutory instrument.
An order under this section is subject to annulment in pursuance of a resolution of the House of Commons.
In this Act—
In section 104N of CTA 2009 (payment of R&D expenditure credit) in subsection (3), in the definition of “Amount A”, in paragraph (b), after “main rate” insert “ (or, in the case of ring fence profits, the main ring fence profits rate) ”.
In section 6 of FA 2013 (main rate for financial year 2015)—
in subsection (1) for “the rate” substitute “ the main rate ”,
in that subsection, omit “on profits of companies other than ring fence profits”, and
omit subsection (2).
This paragraph applies where no part of the first straddling period falls before 1 January 2013. So far as concerns expenditure incurred before the start date, the maximum allowance under section 51A of CAA 2001 for the first straddling period is what would have been the maximum allowance for that period if the amendment made by section 10(1) had not been made.
Schedule 18 to FA 1998 (company tax returns, assessments and related matters) is amended as follows.
In section 104BA of CTA 2009 (R&D expenditure credits: restrictions on claiming other tax reliefs), after subsection (3) insert—
Amount C is the total value of the individual’s uncrystallised rights at the end of 5 April 2014 under arrangements relating to the individual under registered pension schemes of which the individual is a member as determined in accordance with section 212 of FA 2004.
Part 9 of ITA 2007 (special rules about settlements and trusts) is amended as follows.
The Individual Savings Account Regulations 1998 are amended as follows.
After Schedule 3B to VATA 1994 insert—
For paragraph 3 (qualifying supplies) substitute—
After section 162A (liabilities attributable to financing excluded property) insert— Section 162C (sections 162A and 162B: supplementary provision) is amended as follows. In the heading, after “162A” insert “, 162AA”. In subsection (1), after “162A(1) or (5)” insert “, 162AA(1)”. After subsection (1) insert— In subsection (2)— In section 175A (discharge of liabilities after death), in subsection (7)— The amendments made by this paragraph have effect in relation to transfers of value made, or treated as made, on or after the day on which this Act is passed.
For the title of the Schedule substitute—.
In section 1114 of that Act (calculation of total R&D aid for the purposes of the cap), after “aid is calculated” insert “ (or, in the case of a ring fence trade (within the meaning of section 277 of CTA 2010) the main ring fence profits rate at that time) ”.
In Schedule 25 to that Act (charge on certain high value disposals by companies etc), omit paragraph 19.
In paragraph 10 (other claims and elections to be included in return), in sub-paragraph (4)—
before “claims” insert “ certain ”;
for “or 15B” substitute “ , 15B or 15C ”.
In Part 8 of CTA 2009 (intangible fixed assets), in Chapter 10 (excluded assets), before section 809 insert—
In section 462 (overview of Part) in subsection (5) for “an approved” substitute “a Schedule 2”.
In regulation 2 (interpretation) in paragraph (1)(a)—
omit the definition of “approved SAYE option scheme”, and
at the appropriate place insert—.
main ring fence profits rate section 279A(4) (as applied by 1119 of CTA 2010)
Paragraph 52 (recovery of excessive overpayments etc) is amended as follows. In sub-paragraph (2), after paragraph (bf) insert—. In sub-paragraph (5)—
In section 1040ZA of CTA 2009 (additional relief for expenditure on research and development), after subsection (3) insert—
In section 479 (trustees’ accumulated or discretionary income charged at special rates) in subsection (5) for “approved” substitute “Schedule 2”.
In regulation 7 (qualifying investments) in paragraphs (2)(h)(i) and (10)(a) for “an approved” substitute “a Schedule 3”.
Part 9D (certain claims for tax relief) is amended as follows. In paragraph 83S (introduction), after paragraph (c) insert— The heading of that Part becomes “ Claims for tax relief under Part 15, 15A, 15B or 15C of the Corporation Tax Act 2009 ”.
In section 1310 of CTA 2009 (orders and regulations), in subsection (4), after paragraph (ej) insert—.
Section 488 (application of section 479 to trustees of SIP) is amended as follows. In the heading for “approved” substitute “Schedule 2”. In subsection (1)—
commercial purpose condition (in Part 15C) section 1217OB company tax return (in Part 15C) section 1217OA core expenditure (in Part 15C) section 1217GC costs of a theatrical production (in Part 15C) section 1217IC EEA expenditure (in Part 15C) section 1217GB EEA expenditure condition (in Part 15C) section 1217OB income from a theatrical production (in Part 15C) section 1217IB production company (in Part 15C) section 1217FC qualifying expenditure (in Part 15C) section 1217JA the separate theatrical trade (in Part 15C) section 1217OB theatrical production (in Part 15C) section 1217FA
In section 489 (“the applicable period”) in subsection (8)(a) for “approved” substitute “Schedule 2”.
In section 490 (interpretation of Chapter 5) in subsection (1) omit “approved”.
“VATA 1994” means the Value Added Tax Act 1994, and
This paragraph applies where the first straddling period begins before 1 January 2013. So far as concerns expenditure incurred before 1 January 2013, the maximum allowance under section 51A of CAA 2001 for the first straddling period is what would have been the maximum allowance for that period if neither the amendment made by section 7(1) of FA 2013 nor the amendment made by section 10(1) had been made. So far as concerns expenditure incurred before the start date, the maximum allowance under section 51A of CAA 2001 for the first straddling period is what would have been the maximum allowance for that period if neither the amendment made by section 10(1) nor the amendments made by Part 2 of this Schedule had been made.
Paragraphs 1 to 4 also apply for the purpose of determining the maximum allowance under section 51K of CAA 2001 (operation of annual investment allowance where restrictions apply) in a case where one or more chargeable periods in which the relevant AIA qualifying expenditure is incurred are chargeable periods within paragraph 1(1) or 4(1). There is to be taken into account for the purpose mentioned in sub-paragraph (1) only chargeable periods of one year or less (whether or not they are chargeable periods within paragraph 1(1) or 4(1)), and, if there is more than one such period, only that period which gives rise to the greatest maximum allowance. For the purposes of sub-paragraph (2) any chargeable period which— is to be treated as being a chargeable period of one year ending at the same time as it actually ends. Nothing in this paragraph affects the operation of sections 51M and 51N of CAA 2001.
The amendments made by paragraphs 1 to 5, 6(1), 7 to 10, 11(1) and 12(1) to (4) of this Schedule are to be treated as having come into force on 19 March 2014.
In the case of the vehicles described in paragraphs 17 and 18 the amendments made by paragraphs 4 to 10 have effect in relation to licences taken out on or after 1 January 2017.
A bus, light exceptional load vehicle or haulage vehicle which satisfies the reduced pollution requirements for the purposes of VERA 1994 because—
paragraph 4 of Schedule 2 to the Regulations applies to the vehicle as result of it falling within item 3 or 4 of Table 1 or item 4 of Table 2 in that paragraph,
paragraph 4A of Schedule 2 to the Regulations applies to the vehicle as result of it meeting the requirements of paragraph 4B of that Schedule, or
paragraph 4C of Schedule 2 to the Regulations applies to the vehicle as result of it meeting the requirements of paragraph 4D of that Schedule.
A rigid goods vehicle or tractive unit— Those reasons are—
In this Act— “FA”, followed by a year, means the Finance Act of that year, and “F(No.2)A”, followed by a year, means the Finance (No. 2) Act of that year.
This Act may be cited as the Finance Act 2014.