United Kingdom · statute
Ask the law about thisMore laws of United KingdomFor machines: Markdown
In force since 2026-07-15, as the publisher states.
Copy read on 2026-11-08. The page it was read from
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.
sha256 9cd0f3d06c29d9f9ea94c6a72e49c7ea68a64b365bed510a9c5b05dd2acfafb5
No one has proposed a change to this act yet.
(1) Section 24 of TCTA 2018 (rulings as to application of customs tariff or place of origin) is amended as follows. (2) In the heading, after “customs tariff” insert “, valuation method”. (3) In subsection (1), after paragraph (a) (but before the “or”) insert— (aa) determining the value of any goods for the purposes of this Part, .
Propose a change(1) In paragraph 17 of Schedule 1 to TCTA 2018 (releasing and discharging goods to and from Customs procedures), after sub-paragraph (5) insert— (5A) Sub-paragraph (5B) applies where— (a) goods are declared for the free-circulation procedure, but (b) it is impracticable to immediately ascertain the amount of import duty (if any) payable in respect of the goods. (5B) The discharge of goods from the free-circulation procedure in accordance with sub-paragraph (4) may, if HMRC think fit, be subject to an approved guarantee being given in respect of any liability or potential liability to import duty in respect of the goods. (2) In CEMA 1979, omit section 119 (delivery of imported goods on giving of security for duty). (3) The amendments made by subsections (1) and (2) have effect in relation to goods in respect of which a Customs declaration is accepted, for the purposes of TCTA 2018, on or after the day on which this Act is passed (and subsection (2) does not affect the application of section 119 of CEMA 1979 in relation to goods in respect of which a Customs declaration is accepted before that day). (4) In Schedule 7 to TCTA 2018 (import duty: consequential amendments), omit paragraph 90.
Propose a change(1) HODA 1979 is amended as follows. (2) Schedule 1A (excepted machines able to use rebated diesel etc) is amended in accordance with subsections (3) and (4). (3) In paragraph 6 (vessels)— (a) in the heading, after “Vessels” insert “etc”; (b) after sub-paragraph (3) insert— (4) A tractor or gear owned by a charity and used by it for the purpose of launching or hauling in a lifeboat owned by it. (4) In paragraph 8 (other machines or appliances)— (a) in sub-paragraph (1)— (i) in paragraph (a), after “pisciculture” insert “, arboriculture”; (ii) in paragraph (d), at the beginning insert “primarily”; (iii) in paragraph (e), for “of premises that are used for commercial purposes” substitute “for any premises”; (b) after sub-paragraph (2) insert— (3) The Commissioners may publish a notice making provision for the purposes of sub-paragraph (1)(d) about the meaning of— (a) “primarily”, and (b) “used for commercial purposes”. (5) In section 14B (rebate on bioblend used as fuel for excepted machines), for subsection (6) substitute— (6) In subsection (3)— “HO%” means the percentage of the bioblend that is heavy oil, and “BD%” means the percentage of the bioblend that is biodiesel, where the percentages are by volume to the nearest 0.001%. (6) The amendments made by subsections (2) to (4) are to be treated as having come into force on 15 March 2023.
Propose a change(1) In Schedule 1 to TDPA 1979 (table of rates of tobacco products duty), for the Table substitute— TABLE 1 Cigarettes | An amount equal to the higher of— 16.5% of the retail price plus £294.72 per thousand cigarettes, or £393.45 per thousand cigarettes. 2 Cigars | £367.61 per kilogram 3 Hand-rolling tobacco | £351.03 per kilogram 4 Other smoking tobacco and chewing tobacco | £161.62 per kilogram 5 Tobacco for heating | £302.93 per kilogram (2) In consequence of the provision made by subsection (1), in Schedule 2 to the Travellers’ Allowances Order 1994 (which provides in certain circumstances for a simplified calculation of excise duty on goods brought into Great Britain)— (a) in the entry relating to cigarettes, for “£347.86” substitute “£393.45”, (b) in the entry relating to hand rolling tobacco, for “£302.34” substitute “£351.03”, (c) in the entry relating to other smoking tobacco and chewing tobacco, for “£144.17” substitute “£161.62”, (d) in the entry relating to cigars, for “£327.92” substitute “£367.61”, (e) in the entry relating to cigarillos, for “£327.92” substitute “£367.61”, and (f) in the entry relating to tobacco for heating, for “£81.07” substitute “£90.88”. (3) The amendments made by this section are treated as having come into force at 6pm on 15 March 2023.
Propose a changeSchedule 21 makes amendments of Part 2 of FA 2017 (soft drinks industry levy) in connection with flavour concentrates.
Propose a change(1) Section 30 of FA 1994 (air passenger duty: rates) is amended as follows. (2) In subsection (1A), after “long haul” insert “and ultra-long haul”. (3) After subsection (1A) insert— (1B) If the passenger’s journey ends at a place in the United Kingdom— (a) if the passenger’s agreement for carriage provides for standard class travel in relation to every flight on the passenger’s journey, the rate is £6.50, and (b) in any other case, the rate is £13. (4) In subsection (2) omit “the United Kingdom or”. (5) After subsection (2) insert— (2A) If the passenger’s journey ends at a place in a territory specified in Part 1A of Schedule 5A— (a) if the passenger’s agreement for carriage provides for standard class travel in relation to every flight on the passenger’s journey, the rate is £87, and (b) in any other case, the rate is £191. (6) In subsection (4A)— (a) in paragraph (a), for “£84” substitute “£91”; (b) in paragraph (b), for “£185” substitute “£200”. (7) In subsection (4E)— (a) before paragraph (a) insert— (za) if the rate which (apart from this subsection) would apply is the rate in subsection (1B)(a) or (b), a rate of £78 is to apply instead, ; (b) in paragraph (a), for “equal to six times the rate in subsection (2)(a)” substitute “of £78”; (c) omit the “and” at the end of paragraph (a); (d) after paragraph (a) insert— (aa) if the rate which (apart from this subsection) would apply is the rate in subsection (2A)(a) or (b), a rate of £574 is to apply instead, and ; (e) in paragraph (d), for “equal to 6.6 times the rate in subsection (4A)(a)” substitute “of £601”. (8) In Schedule 5A to FA 1994 (air passenger duty: territories etc)— (a) in Part 1 (Part 1 territories)— (i) for “Czech Republic” substitute “Czechia”; (ii) for “Former Yugoslav Republic of” substitute “North”; (b) after Part 1 insert— Part 1A Part 1A territories Afghanistan | Cuba | Kyrgyzstan | Senegal Angola | Curacao | Lebanon | Seychelles Anguilla | Djibouti | Liberia | Sierra Leone Antigua and Barbuda | Dominica | Macau | Sint Eustatius Armenia | Dominican Republic | Malawi | Sint Maarten Aruba | Egypt | Maldives | Somalia Azerbaijan | El Salvador | Mali | South Korea Bahrain | Equatorial Guinea | Martinique | South Sudan Bangladesh | Eritrea | Mauritania | Sri Lanka Barbados | Ethiopia | Mayotte | St Helena, Ascension and Tristan da Cunha Belize | French Guiana | Mongolia | St Kitts and Nevis Benin | Gabon | Montserrat | Sudan Bermuda | Georgia | Namibia | Suriname Bhutan | Ghana | Nepal | Syria Bonaire | Grenada | Nicaragua | Tajikistan Botswana | Guadeloupe | Niger | Tanzania Brazil | Guatemala | Nigeria | The Bahamas British Virgin Islands | Guinea | North Korea | The Gambia Burkina Faso | Guinea-Bissau | Oman | Togo Burundi | Guyana | Pakistan | Trinidad and Tobago Cameroon | Haiti | Panama | Turkmenistan Canada | Honduras | Qatar | Turks and Caicos Islands Cape Verde | India | Russian Federation, east of the Ural Mountains | Uganda Cayman Islands | Iran | Rwanda | United Arab Emirates Central African Republic | Iraq | Saba | United States (including Puerto Rico and U.S. Virgin Islands) Chad | Israel | Saint Barthélemy | Uzbekistan China | Ivory Coast | Saint Lucia | Venezuela Colombia | Jamaica | Saint Martin | Yemen Comoros | Jordan | Saint Pierre and Miquelon | Zambia Congo | Kazakhstan | Saint Vincent and the Grenadines | Zimbabwe Congo (Democratic Republic) | Kenya | Sao Tome and Principe Costa Rica | Kuwait | Saudi Arabia . (9) In consequence of the amendments made by this section, in Schedule 1 to The Aircraft Operators (Accounts and Records) Regulations 1994 (S.I. 1994/1737) (particulars of an air passenger duty account), in paragraph (e)— (a) before sub-paragraph (i) insert— (ai) chargeable at the rates set out in section 30(1B)(a) and (b) of the Act; ; (b) after sub-paragraph (i) insert— (ia) chargeable at the rates set out in section 30(2A)(a) and (b) of the Act; ; (c) in sub-paragraph (viii), for “(a)” substitute “(za), (a), (aa)”. (10) The amendments made by this section have effect in relation to the carriage of passengers beginning on or after 1 April 2023.
Propose a change(1) Section 30A of FA 1994 (Northern Ireland long haul rates of duty) is amended as follows. (2) In the heading, after “long haul” insert “and ultra-long haul”. (3) In subsection (5A), in paragraph (c) omit sub-paragraph (ii) and the “or” before it. (4) After subsection (7) insert— (7A) For the purposes of any paragraph, an Act of the Northern Ireland Assembly may set one rate for cases within section 30(2A) and a different rate for cases within section 30(4A). (5) The amendments made by this section have effect in relation to the carriage of passengers beginning on or after 1 April 2023.
Propose a change(1) Schedule 1 to VERA 1994 (annual rates of vehicle excise duty) is amended as follows. (2) In paragraph 1 (general rate)— (a) in sub-paragraph (2) (vehicle not covered elsewhere in Schedule with engine cylinder capacity exceeding 1,549cc), for “£295” substitute “£325”, and (b) in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc), for “£180” substitute “£200”. (3) In paragraph 1B (graduated rates for light passenger vehicles registered before 1 April 2017), for the Table substitute— 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 | 25 | 35 120 | 130 | 140 | 150 130 | 140 | 170 | 180 140 | 150 | 190 | 200 150 | 165 | 230 | 240 165 | 175 | 280 | 290 175 | 185 | 310 | 320 185 | 200 | 355 | 365 200 | 225 | 385 | 395 225 | 255 | 665 | 675 255 | — | 685 | 695 . (4) In the sentence immediately following the Table in that paragraph, for paragraphs (a) and (b) substitute— (a) in column (3), in the last two rows, “385” were substituted for “665” and “685”, and (b) in column (4), in the last two rows, “395” were substituted for “675” and “695”. (5) In paragraph 1GC (graduated rates for first licence for light passenger vehicles registered on or after 1 April 2017), for Table 1 (vehicles other than higher rate diesel vehicles) substitute— CO2 Emissions Figure | Rate (1) | (2) | (3) | (4) Exceeding | Not exceeding | Reduced rate | Standard Rate g/km | g/km | £ | £ 0 | 50 | 0 | 10 50 | 75 | 20 | 30 75 | 90 | 120 | 130 90 | 100 | 155 | 165 100 | 110 | 175 | 185 110 | 130 | 200 | 210 130 | 150 | 245 | 255 150 | 170 | 635 | 645 170 | 190 | 1030 | 1040 190 | 225 | 1555 | 1565 225 | 255 | 2210 | 2220 255 | — | 2595 | 2605 . (6) In that paragraph, for Table 2 (higher rate diesel vehicles) substitute— CO2 Emissions Figure | Rate (1) | (2) | (3) Exceeding | Not exceeding | Rate g/km | g/km | £ 0 | 50 | 30 50 | 75 | 130 75 | 90 | 165 90 | 100 | 185 100 | 110 | 210 110 | 130 | 255 130 | 150 | 645 150 | 170 | 1040 170 | 190 | 1565 190 | 225 | 2220 225 | 255 | 2605 255 | — | 2605 . (7) In paragraph 1GD(1) (rates for any other licence for light passenger vehicles registered on or after 1 April 2017)— (a) in paragraph (a) (reduced rate), for “£155” substitute “£170”, and (b) in paragraph (b) (standard rate), for “£165” substitute “£180”. (8) In paragraph 1GE(2) (rates for light passenger vehicles registered on or after 1 April 2017 with a price exceeding £40,000)— (a) in paragraph (a), for “£510” substitute “£560”, and (b) in paragraph (b), for “£520” substitute “£570”. (9) In paragraph 1J(a) (rates for light goods vehicles that are not pre-2007 or post-2008 lower emission vans), for “£290” substitute “£320”. (10) In paragraph 2(1) (rates for motorcycles)— (a) in paragraph (a) (engine cylinder capacity not exceeding 150cc), for “£22” substitute “£24”, (b) in paragraph (b) (motorbicycles with engine cylinder capacity exceeding 150cc but not exceeding 400cc), for “£47” substitute “£52”, (c) in paragraph (c) (motorbicycles with engine cylinder capacity exceeding 400cc but not exceeding 600cc), for “£73” substitute “£80”, and (d) in paragraph (d) (other cases), for “£101” substitute “£111”. (11) The amendments made by this section have effect in relation to licences taken out on or after 1 April 2023.
Propose a changeSchedule 22 makes provision (including consequential provision) about— (a) the charging of HGV road user levy in respect of UK-registered and non-UK registered heavy goods vehicles, (b) the register of HGV road user levy paid or due to be paid, and (c) the rate of HGV road user levy chargeable in respect of a heavy goods vehicle by reference to the vehicle’s revenue weight.
Propose a change(1) In section 88 of FA 2020 (HGV road user levy)— (a) in the heading, at the end insert “: exempt period”; (b) in subsection (1), at the beginning insert “Subject to section 88A,”; (c) in subsection (3), at the beginning insert “For the purposes of this section and section 88A,”. (2) After that section insert— HGV road user levy: transitional provision for end of exempt period 88A (1) This section applies where— (a) a UK heavy goods vehicle (the “charged vehicle”) is charged to vehicle excise duty in respect of more than one period (a “charged period”) beginning within the last 12 months of the exempt period, and (b) the combined length of the charged periods is more than 12 months. (2) Section 5(2) of the 2013 Act applies in relation to the charged vehicle in respect of each complete month in the period (the “transitional liability period”)— (a) beginning with the day after the last exempt day in relation to the charged vehicle, and (b) ending with the end of the charged period during which that last exempt day occurs. (3) The last exempt day, in relation to a charged vehicle, is the last day of the period of 12 months beginning with the day on which the first charged period beginning within the last 12 months of the exempt period began. (4) Subsection (5) applies where, in relation to the charged vehicle— (a) a notification has been made under section 7(2)(c) of the 2013 Act (an “off-road notification”) in respect of a period beginning within the last 12 months of the exempt period, and (b) vehicle excise duty is charged in respect of a period beginning— (i) after the day on which the off-road notification is made, and (ii) within the last 12 months of the exempt period. (5) In calculating the period of 12 months mentioned in subsection (3) ignore the number of whole months in the period beginning with the day on which the off-road notification is made and ending with the first day of the period described in subsection (4)(b). (6) The Secretary of State, and any person who may exercise powers on behalf of the Secretary of State under section 9 of the 2013 Act (collection of levy), may (in addition to having the powers, duties and liabilities mentioned in that section) give a notice (a “payment notice”) to a person liable for HGV road user levy in respect of a transitional liability period. (7) A payment notice must state— (a) the amount of HGV road user levy for which the person is liable in respect of the transitional liability period, (b) how the amount is to be paid, and (c) that payment must be made within the period of 28 days beginning with the day on which the notice is given. (8) The amount in subsection (7)(a) is given by— L × M 12 where— L is the yearly rate of HGV road user levy applicable in relation to the vehicle on the first day of the transitional liability period, and M is the number of whole months during the transitional liability period. (9) In relation to the transitional liability period— (a) a person commits an offence under section 11 of the 2013 Act (offence of using or keeping heavy goods vehicle if levy not paid) only if the person— (i) has been given a payment notice, and (ii) has failed to make payment in accordance with that notice, and (b) section 7(5A) of the Vehicle Excise and Registration Act 1994 has effect as if the reference to HGV road user levy having been paid were a reference to it having been paid in accordance with a payment notice. (10) In this section “UK heavy goods vehicle” has the same meaning as in the HGV Road User Levy Act 2013 (see section 2 of that Act).
Propose a change(1) Section 42 of FA 1996 (amount of landfill tax) is amended as follows. (2) In subsection (1)(a) (standard rate), for “£98.60” substitute “£102.10”. (3) In subsection (2) (reduced rate for certain disposals), in the words after paragraph (b)— (a) for “£98.60” substitute “£102.10”, and (b) for “£3.15” substitute “£3.25”. (4) The amendments made by this section have effect in relation to disposals made (or treated as made) on or after 1 April 2023.
Propose a change(1) Paragraph 42 of Schedule 6 to FA 2000 (climate change levy: amount payable by way of levy) is amended as follows. (2) In sub-paragraph (1), for the table substitute— TABLE Taxable commodity supplied | Rate at which levy payable if supply is not a reduced-rate supply Electricity | £0.00775 per kilowatt hour Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility | £0.00775 per kilowatt hour Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state | £0.02175 per kilogram Any other taxable commodity | £0.06064 per kilogram (3) In sub-paragraph (1)(c) (reduced-rate supplies in respect of any taxable commodity other than electricity or petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state), for “12” substitute “11”. (4) In consequence of the amendment made by subsection (3), in the definition of “r” in the Notes to paragraph 2 of Schedule 1 to the Climate Change Levy (General) Regulations 2001 (S.I. 2001/838), for “0.88” substitute “0.89”. (5) The amendments made by this section have effect in relation to supplies treated as taking place on or after 1 April 2024.
Propose a change(1) In section 45(1) of FA 2021 (rate of plastic packaging tax), for “£200” substitute “£210.82”. (2) The amendment made by this section has effect in relation to packaging components produced in, or imported into, the United Kingdom on or after 1 April 2023.
Propose a change(1) Part 2 of FA 2001 (aggregates levy) is amended as follows. (2) In section 17 (meanings of “aggregate” and “taxable aggregate”)— (a) in subsection (3)— (i) omit paragraphs (b), (d) and (da); (ii) omit the “or” at the end of paragraph (e); (iii) after paragraph (f) insert ; or (g) it consists wholly of aggregate won by being removed from the ground on the site of any or any proposed structure, or the site of any or any proposed infrastructure relating to transportation or utilities, in the course of excavations lawfully carried out— (i) in connection with, and necessary for, the construction, modification, maintenance or improvement of the structure or infrastructure, and (ii) not for the purpose of extracting that aggregate. ; (b) in subsection (4) omit paragraph (e); (c) in subsection (7) omit the definition of “highway”. (3) In section 19 (commercial exploitation)— (a) in subsection (3), in paragraph (e), for “site from which it was won” substitute “original site by virtue of it being used for a purpose connected with winning aggregate or other minerals from the site”; (b) after subsection (3A) insert— (3B) For the purposes of subsection (3)(e), in relation to a quantity of aggregate, “the original site” means the site from which it was won. ; (c) for subsection (4) substitute— (4) Subsection (4A) applies where, at the time when any aggregate is won from any site, a person (“P”) is in occupation for relevant purposes of— (a) that site, or (b) that site and other land. (4A) Where this subsection applies, so long as the site mentioned in subsection (4), or that site and the other land, continue to be occupied by P for relevant purposes, subsection (3)(e) has effect as if— (a) (where relevant) the reference to the land at the original site included the other land, and (b) the words “by virtue of it being used for a purpose connected with winning aggregate or other minerals from the site” were omitted. (4B) For the purposes of subsections (4) and (4A) relevant purposes are— (a) the purposes of the carrying on of any agricultural business, or (b) the purposes of the carrying on of any forestry business or otherwise for the purposes of forestry. (4) In consequence of the amendments made by subsection (2), in the Aggregates Levy (Registration and Miscellaneous Provisions) Regulations 2001 (S.I. 2001/ 4027), in regulation 3 (unconditional exemption from registration), in paragraph (a)— (a) in sub-paragraph (i), for “(b), (c), (d) or (da)” substitute “(c) or (g)”; (b) in sub-paragraph (ii), for “(c), (d) or (e)” substitute “(c) or (d)”. (5) The amendments made by this section have effect in relation to aggregate won on or after 1 October 2023.
Propose a change(1) Section 113 of FA 2021 (designation of freeport tax sites) is amended as follows. (2) In subsection (2)(a) and (b), after “a freeport” insert “or an investment zone”. (3) In subsection (3), for “a “freeport tax site”” substitute “a “special tax site””. (4) For subsection (5) substitute— (5) For the purposes of this section any reference to a freeport or an investment zone is to an area which is identified as such in a document published by, or with the consent of, the Treasury for the purposes of this section (and not withdrawn). (5) Schedule 23 makes amendments in consequence of the provision made by this section.
Propose a change(1) In section 61A of FA 2003 (relief from stamp duty land tax in case of transactions relating to land in designated sites), in subsection (3), for “30 September 2026” substitute “the applicable sunset date in relation to the special tax site concerned (as to which see section 332(4) and (5) of the Finance (No.2) Act 2023)”. (2) In section 45O of CAA 2001 (enhanced capital allowances in case of expenditure on plant or machinery for use in designated sites), in subsection (5), for “30 September 2026” substitute “the applicable sunset date in relation to the special tax site concerned (as to which see section 332(4) and (5) of F(No.2)A 2023)”. (3) In Chapter 2A of Part 2A of CAA 2001 (enhanced structures and building allowances in case of buildings or structures in designated sites)— (a) in section 270BNA— (i) in subsection (3)(b), for “30 September 2026” substitute “the applicable sunset date in relation to the special tax site concerned (as to which see section 332(4) and (5) of F(No.2)A 2023)”, and (ii) in subsection (4)(b), for “30 September 2026” substitute “the applicable sunset date in relation to the special tax site concerned”, and (b) in section 270BNB(3), for “30 September 2026” substitute “the applicable sunset date in relation to the special tax site concerned”. (4) For the purposes of section 61A of FA 2003 and sections 45O, 270BNA and 270BNB of CAA 2001 (“the sunset provisions”), the applicable sunset date in relation to a special tax site is— (a) 30 September 2026, or (b) such later date as may be specified in relation to the site by regulations made by the Treasury. (5) The regulations— (a) may specify different dates for different descriptions of special tax sites, and (b) may amend the sunset provisions. (6) Schedule 23 makes amendments in consequence of the provision made by this section.
Propose a change(1) A right of an individual to a repayment of income tax from HMRC may not be assigned. (2) Every assignment of a right of an individual to a repayment of income tax from HMRC, and every agreement to assign any such right, is void. (3) Subsection (2) has effect in relation to assignments and agreements to assign of which HMRC receives notice on or after 15 March 2023. (4) In the application of this section to Scotland the reference to assignment of a right is to be read as a reference to assignation, “assign” being construed accordingly. (5) In this section “HMRC” means His Majesty’s Revenue and Customs.
Propose a change(1) In the Finance Act 2009, Sections 101 and 102 (Value Added Tax) (Late Payment Interest and Repayment Interest) (Exceptions and Consequential Amendments) Order 2022 (S.I. 2022/1298), in Part 2 (exceptions), before article 2 insert— Exception from section 101 of the Finance Act 2009 - late payment interest 1A (1) Section 101 of the Finance Act 2009 (late payment interest on sums due to HMRC) does not apply to annual accounting scheme instalments. (2) In paragraph (1) “annual accounting scheme instalment” means an amount payable to HMRC by virtue of regulation 50(2)(a) of the VAT Regulations. (2) In Part 2 of Schedule 53 to FA 2009 (late payment interest start date), after paragraph 11 insert— VAT due after excess payment or credit from HMRC 11ZA (1) This paragraph applies to any amount of value added tax which is due and recoverable from a person by virtue of— (a) section 73(9) of VATA 1994, in relation to an amount assessed and notified to the person under subsection (2) of that section, or (b) section 80C(1) of that Act. (2) The late payment interest start date in respect of that amount is the date on which HMRC paid or credited that amount to the person. (3) Where, ignoring this subsection, the late payment interest start date in respect of an amount would, by virtue of paragraph 11ZA of Schedule 53 to FA 2009 (inserted by subsection (2)), be a date before 15 March 2023, the late payment interest start date in respect of that amount is instead 15 March 2023. (4) The amendment made by subsection (1) is treated as having been made under section 101(2)(c) of FA 2009 (power to specify descriptions of amounts payable to HMRC that are not subject to late payment interest). (5) This section is treated as having come into force on 15 March 2023.
Propose a change(1) Paragraph 1 of Schedule 26 to FA 2021 (penalties for failure to pay tax) is amended in accordance with subsections (2) to (4). (2) The existing text becomes sub-paragraph (1). (3) In the table in that sub-paragraph relating to value added tax— (a) in item 1, in the second column, for “(except an amount within item 2, 3, 4 or 5)” substitute “except an amount within item 3, 4 or 5, or that is an annual accounting scheme instalment”; (b) omit item 2. (4) After that sub-paragraph insert— (2) In the table relating to value added tax, “annual accounting scheme instalment” means an amount payable to HMRC by virtue of regulation 50(2)(a) of the Value Added Tax Regulations 1995 (S.I. 1995/2518). (5) The amendments made by this section are treated as always having had effect.
Propose a change(1) Paragraph 12E of Schedule 54 to FA 2009 (special provision as to amounts carrying repayment interest etc) is amended as follows. (2) In sub-paragraph (1), in paragraph (b)— (a) for “4(1) or (1A)” substitute “4(1A)”; (b) omit “production of evidence and”. (3) In sub-paragraph (2)— (a) in paragraph (a) omit “production of evidence or”; (b) in paragraph (b) omit “the required evidence or”. (4) The amendments made by this section are to be treated as having come into force immediately after the coming into force of Schedule 29 to FA 2021 in accordance with regulation 2(2)(a) of The Finance Act 2009, Finance (No. 3) Act 2010 and Finance Act 2021 (Value Added Tax) (Interest) (Appointed Days) Regulations 2022 (S.I. 2022/1277).
Propose a changeIn Part 3 of FA 1994 (insurance premium tax), in section 74 (orders and regulations)— (a) after subsection (6) insert— (6A) Regulations under this Part making provision as to the form and manner in which a notification is to be made, or as to the information to be contained in or provided with a notification, may make such provision by reference to a notice published by the Commissioners from time to time. ; (b) in subsection (9), for “(7) and” substitute “(6A) to”.
Propose a change(1) Schedule 56 to FA 2009 (penalty for failure to make payments on time) is amended as follows— (a) in paragraph 3(1), after sub-paragraph (a) insert— (aza) a payment of tax falling within items 11AA or 11AB in the Table, ; (b) in paragraph 8A(1), for “and 11A to” substitute “, 11A and 11B to”. (2) The amendments made by this section have effect in relation to amounts of plastic packaging tax payable in respect of accounting periods commencing on or after 1 April 2023.
Propose a change(1) CEMA 1979 is amended as follows. (2) After section 20(A) insert— Approval of aerodromes 20B (1) The Commissioners may approve an aerodrome for the purposes of the customs and excise Acts. (2) In any case where they consider it would facilitate the administration, collection or enforcement of any duty of customs, the Commissioners may by regulations— (a) specify conditions which must be met before an approval is granted, or (b) specify other conditions which they may, in any particular case, require to be met before an approval is granted. (3) In any other case, an approval has effect subject to such conditions and restrictions as the Commissioners think fit. (4) The Commissioners may at any time for reasonable cause revoke or vary the terms of an approval. (5) This section does not apply in relation to an aerodrome which is a customs and excise airport. . (3) Section 21 (control of movement of aircraft, etc into and out of the United Kingdom) is amended in accordance with subsections (4) to (7). (4) In each of subsections (1), (2), (3)(a) and (b) and (4), for “customs and excise airport”, in each place it occurs, substitute “regulated aerodrome”. (5) After subsection (5) insert— (5A) A person in control of an unregulated aerodrome must take reasonable steps to secure that no aircraft lands at, or departs from, the aerodrome in circumstances in which there would be a contravention of any of subsections (1) to (3). (6) In subsection (6), for “this section” substitute “subsections (1) to (4)”. (7) After subsection (6) insert— (6A) For the purposes of this Act each of the following is a “regulated aerodrome”— (a) a customs and excise airport, and (b) an aerodrome approved under section 20B, (and any other aerodrome is an “unregulated aerodrome”). . (8) In section 22 (approval of examination stations at customs and excise airports)— (a) in the heading, for “customs and excise airports” substitute “regulated aerodromes”; (b) in subsection (1), for “customs and excise airport” substitute “regulated aerodrome”. (9) In section 22A (examination stations), in each of subsections (1)(a), (1A) and (2), for “customs and excise airport” substitute “regulated aerodrome”.
Propose a change(1) CEMA 1979 is amended in accordance with subsections (2) to (4). (2) In section 1 (interpretation), in subsection (1), insert at the appropriate place— “regulated aerodrome” has the meaning given by section 21(6A); . (3) In each of the following provisions, for “customs and excise airport” substitute “regulated aerodrome”— (a) in section 5(5) (time of importation, exportation, etc); (b) in section 23(1)(a) (control of movement of hovercraft); (c) in section 30(1)(a) and (b) (control of movement of uncleared goods within or between port or airport and other places); (d) in section 34(1)(a) and (b) (power to prevent flight of aircraft or departure of railway vehicles); (e) in section 42(1)(a) (power to regulate unloading, removal, etc of imported goods); (f) in section 164(4)(d) (power to search persons). (4) In section 172 (regulations), in subsection (3), after “20,” insert “20B,”. (5) In Schedule 5 to FA 1994 (decisions subject to review and appeal), in paragraph 2(1)— (a) in paragraph (a)— (i) for “section 20, 22 or 25 (approved wharf, examination station or temporary storage facility)” substitute “section 20, 20B, 22 or 25 (approved wharf, approved aerodrome, examination station or temporary storage facility)”; (ii) after “subsection (1A)(a) of section 20, 22 or 25” insert “, or subsection (2)(a) of section 20B,”; (iii) for “subsection (1A)(b) of that section” substitute “subsection (1A)(b) of section 20, 22 or 25 or subsection (2)(b) of section 20B”; (b) after paragraph (a) insert— (aa) any decision as to whether or not approval of an aerodrome under section 20B is to be given or withdrawn, or as to the conditions or restrictions under section 20B(3) subject to which any such approval is given; . (6) In section 26 of FA 2003 (penalty for contravention of a relevant rule), in subsection (5A), after “section 20(1A),” insert “20B(2),”. (7) In section 18 of the Customs and Excise Duties (General Reliefs) Act 1979 (interpretation), in the list of expressions in subsection (2), omit— “customs and excise airport” .
Propose a change(1) Section 16B of FA 1994 (temporary approvals etc pending review or appeal: process) is amended as follows. (2) In subsection (3), for paragraph (b) substitute— (b) expires— (i) on the expiry day determined in accordance with subsection (4), or (ii) if HMRC are satisfied that it is appropriate in all the circumstances, on a later day determined by HMRC, and . (3) In subsection (4), for “The day on which a temporary approval expires is” substitute “For the purposes of subsection (3)(b)(i), the expiry day in relation to a temporary approval is”.
Propose a change(1) Schedule 33 to FA 2021 (licensing authorities: requirements to give or obtain tax information) is amended as follows. (2) The table in paragraph 1(2) is amended in accordance with subsections (3) to (8). (3) After the entry for a licence under section 51 of LG(MP)A 1976 insert— A taxi driver’s licence (including a temporary licence) under section 13 of CG(S)A 1982 | Driving a taxi (Scotland) | A licensing authority (within the meaning of CG(S)A 1982) | 1 A private hire car driver’s licence (including a temporary licence) under section 13 of CG(S)A 1982 | Driving a private hire car (Scotland) | A licensing authority (within the meaning of CG(S)A 1982) | 1 (4) After the entry for a licence under section 13 of PHV(L)A 1998 insert— A licence under section 23 of TA(NI) 2008 | Driving a taxi (Northern Ireland) | The Department for Infrastructure in Northern Ireland | 1 (5) After the entry for a licence under section 55 of LG(MP)A 1976 insert— A licence (including a temporary licence) under Part 1 of CG(S)A 1982 for the activity specified in article 2(2) of LBOO 2009 | Use of premises as booking office for taxis or private hire cars (Scotland) | A licensing authority (within the meaning of CG(S)A 1982) | 2 (6) After the entry for a licence under section 3 of PHV(L)A 1998 insert— A metal dealer’s licence (including a temporary licence) under section 28 of CG(S)A 1982 | Carrying on business as a metal dealer (Scotland) | A licensing authority (within the meaning of CG(S)A 1982) | 3 (7) After the entry for a site licence under SMDA 2013 insert— An itinerant metal dealer’s licence (including a temporary licence) under section 32 of CG(S)A 1982 | Carrying on business as an itinerant metal dealer (Scotland) | A licensing authority (within the meaning of CG(S)A 1982) | 4 (8) At the end of the second column of each of the following entries insert “(England and Wales)”— (a) the entry for a licence under section 46 of TPCA 1847; (b) the entry for a licence under section 51 of LG(MP)A 1976; (c) the entry for a licence under section 55 of LG(MP)A 1976; (d) the entry for a site licence under SMDA 2013; (e) the entry for a collector’s licence under SMDA 2013. (9) In paragraph 1(3), at the appropriate places, insert the following definitions— “CG(S)A 1982” means the Civic Government (Scotland) Act 1982; “LBOO 2009” means the Civic Government (Scotland) Act 1982 (Licensing of Booking Offices) Order 2009 (S.S.I. 2009/145); “TA(NI) 2008” means the Taxis Act (Northern Ireland) 2008 (c. 4 (N.I.)); (10) The amendments made by this section have effect in relation to applications made on or after 2 October 2023.
Propose a change(1) The Civic Government (Scotland) Act 1982 is amended as follows. (2) In section 3 (discharge of functions of licensing authorities)— (a) in subsection (1)(a), for “date on which the application was made” substitute “relevant date”; (b) after subsection (1) insert— (1A) In subsection (1) “the relevant date” means— (a) the date on which the application is made, or (b) if, on that date, the licensing authority is prevented from considering the application by paragraph 2(2) or 3(2) of Schedule 33 to the Finance Act 2021 (which contain requirements to be complied with before applications may be considered), the date on which the licensing authority ceases to be so prevented. (3) Paragraph 7 of Schedule 1 (temporary licenses) is amended in accordance with subsections (4) and (5). (4) In sub-paragraph (6), before paragraph (a) insert— (za) where— (i) at any time after the application for the licence under paragraph 1 is made, the licensing authority requests the applicant to give it further information for the purpose of enabling it to make a request, or make a further request, under paragraph 3(2)(a) of Schedule 33 to the Finance Act 2021 (request for confirmation of completed tax check) in relation to the application, and (ii) at the end of the relevant period, the licensing authority continues to be prevented from considering the application by paragraph 3(2) of that Schedule to that Act, the end of the relevant period; or . (5) After sub-paragraph (6) insert— (6A) In sub-paragraph (6)(za) “the relevant period” means— (a) the period of 7 days beginning with the day on which the request under sub-paragraph (6)(za)(i) is made, or (b) if the final day of that period is earlier than the day on which (disregarding sub-paragraph (6)) the temporary licence expires, the period ending with that later day. (6) Paragraph 8 of Schedule 1 (duration of licences) is amended in accordance with subsections (7) and (8). (7) In sub-paragraph (6), before paragraph (a) insert— (za) where— (i) at any time after the application is made, the licensing authority requests the applicant to give it further information for the purpose of enabling it to make a request, or make a further request, under paragraph 3(2)(a) of Schedule 33 to the Finance Act 2021 (request for confirmation of completed tax check) in relation to the application, and (ii) at the end of the relevant period, the licensing authority continues to be prevented from considering the application by paragraph 3(2) of that Schedule to that Act, the end of the relevant period; or . (8) After sub-paragraph (6) insert— (6A) In sub-paragraph (6)(za) “the relevant period” means— (a) the period of 28 days beginning with the day on which the request under sub-paragraph (6)(za)(i) is made, or (b) if the final day of that period is earlier than the day on which (disregarding sub-paragraphs (4) and (5)) the licence expires, the period ending with that later day.
Propose a change(1) In Part 1 of Schedule 6 to FA 2010 (definition of “charity” etc), in paragraph 2 (jurisdiction condition)— (a) in sub-paragraph (1) omit paragraph (b) (and the “or” before it); (b) omit sub-paragraphs (3) to (5). (2) In relation to a body of persons or trust that has asserted its status as a charity, the amendments made by this section have effect— (a) for the purposes of income tax, for the tax year 2024-25 and subsequent tax years; (b) for the purposes of capital gains tax, in relation to disposals made on or after 6 April 2024; (c) for the purposes of corporation tax, in relation to accounting periods beginning on or after 1 April 2024; (d) for the purposes of value added tax, in relation to supplies made, and acquisitions and importations taking place, on or after 1 April 2024; (e) for the purposes of inheritance tax, in relation to transfers of value made on or after 1 April 2024; (f) for the purposes of stamp duty, in relation to any instrument executed on or after 1 April 2024; (g) for the purposes of stamp duty land tax, in relation to any land transaction the effective date of which is on or after 1 April 2024; (h) for the purposes of stamp duty reserve tax, in relation to any agreement to transfer securities in respect of which the relevant day (within the meaning of section 87(2) of FA 1986) is or is after 1 April 2024; (i) for the purposes of annual tax on enveloped dwellings, for the chargeable period beginning with 1 April 2024 and subsequent chargeable periods; (j) for the purposes of diverted profits tax, in relation to accounting periods beginning on or after 1 April 2024. (3) Notwithstanding subsection (2)(g), the amendments made by this section do not have effect for the purposes of stamp duty land tax in relation to a transaction entered into by a body of persons or trust that has asserted its status as a charity if— (a) the transaction is effected in pursuance of a contract entered into and substantially performed before 1 April 2024, or (b) the transaction— (i) is effected in pursuance of a contract entered into before 15 March 2023, and (ii) is not excluded for the purposes of this paragraph by subsection (6). (4) In relation to a body of persons or trust that has not asserted its status as a charity, the amendments made by this section have effect— (a) for the purposes of income tax— (i) for the tax year 2022-23 so far as it falls on or after 15 March 2023, and (ii) for subsequent tax years; (b) for the purposes of capital gains tax, in relation to disposals made on or after 15 March 2023; (c) for the purposes of corporation tax, in relation to accounting periods beginning on or after 15 March 2023; (d) for the purposes of value added tax, in relation to supplies made, and acquisitions and importations taking place, on or after 15 March 2023; (e) for the purposes of inheritance tax, in relation to transfers of value made on or after 15 March 2023; (f) for the purposes of stamp duty, in relation to any instrument executed on or after 15 March 2023; (g) for the purposes of stamp duty land tax, in relation to any land transaction the effective date of which is on or after 15 March 2023; (h) for the purposes of stamp duty reserve tax, in relation to any agreement to transfer securities in respect of which the relevant day (within the meaning of section 87(2) of FA 1986) is or is after 15 March 2023; (i) for the purposes of annual tax on enveloped dwellings— (i) for the chargeable period beginning with 1 April 2022 so far as it falls on or after 15 March 2023, and (ii) for subsequent chargeable periods; (j) for the purposes of diverted profits tax, in relation to accounting periods beginning on or after 15 March 2023. (5) Notwithstanding subsection (4)(g), the amendments made by this section do not have effect for the purposes of stamp duty land tax in relation to a transaction entered into by a body of persons or trust that has not asserted its status as a charity if— (a) the transaction is effected in pursuance of a contract entered into and substantially performed before 15 March 2023, or (b) the transaction— (i) is effected in pursuance of a contract entered into before that date, and (ii) is not excluded for the purposes of this paragraph by subsection (6). (6) A transaction is excluded for the purposes of subsection (3)(b) or (5)(b) if— (a) there is any variation of the contract, or assignment of rights under the contract, on or after 15 March 2023, (b) 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 (c) on or after that date there is an assignment, 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. (7) If a company has an accounting period (“the straddling accounting period”) that begins before a commencement date and ends on or after that date— (a) the part of the straddling accounting period that falls before that date, and (b) the part of the straddling accounting period that falls on or after that date, are to be treated for relevant purposes as separate accounting periods. (8) In subsection (7)— “commencement date” means the date mentioned in subsection (2)(c) or (4)(c); “relevant purposes” means the purposes of determining the company’s liability to any charge to a tax mentioned in subsection (2) or (4), or eligibility for any relief relating to such a tax, that is affected by the company’s status as a charity. (9) An apportionment to different periods which falls to be made as a result of subsection (4)(a)(i) or (i)(i) is to be made on a time basis according to the respective length of the periods. For the corresponding rule applying to apportionments falling to be made as a result of subsection (7), see section 1172 of CTA 2010. (10) For the purposes of this section a body of persons or trust has “asserted its status as a charity” if— (a) immediately before 15 March 2023 it falls within the definition of “charity” in Part 1 of Schedule 6 to FA 2010, and (b) at any time before that date, it has (under any enactment) made a valid claim to His Majesty’s Revenue and Customs in reliance on its status as a charity. (11) The amendments made by this section are to be ignored in determining— (a) whether a person who, immediately before 15 March 2023, owns one or more shares forming the ordinary share capital of a UK REIT is, at any later time, an institutional investor in relation to those shares; (b) whether a person who, immediately before 15 March 2023, is a unit holder in an exempt unauthorised unit trust is, at any later time, an eligible investor in relation to those units; (c) whether a person who, immediately before 15 March 2023, holds a relevant interest in— (i) a QAHC, or (ii) a company that has made an entry notification, is, at any later time, a relevant qualifying investor in relation to that interest. (12) In subsection (11)— (a) expressions used in paragraph (a) have the same meaning as in Part 12 of CTA 2010 (real estate investment trusts); (b) expressions used in paragraph (b) have the same meaning as in the Unauthorised Unit Trusts (Tax) Regulations 2013 (S.I. 2013/2819); (c) expressions used in paragraph (c), have the same meaning as in Schedule 2 to FA 2022 (qualifying asset holding companies). (13) The following regulations were made under a power contained in paragraph 2(3) to (5) of Schedule 6 to FA 2010 and are therefore revoked by virtue of subsection (1)(b)— (a) the Taxes (Definition of Charity) (Relevant Territories) Regulations 2010 (S.I. 2010/1904); (b) the Taxes (Definition of Charity) (Relevant Territories) (Amendment) Regulations 2014 (S.I. 2014/1807).
Propose a change(1) In section 661A of CTA 2010 (community amateur sports clubs: the location condition)— (a) in subsection (1)— (i) in paragraph (a), omit “or a relevant territory”; (ii) in paragraph (b), omit “or are all located in a single relevant territory”; (b) omit subsection (2). (2) In relation to a club that has asserted its status as a CASC, the amendments made by this section have effect in relation to accounting periods beginning on or after 1 April 2024. (3) In relation to a club that has not asserted its status as a CASC, the amendments made by this section have effect in relation to accounting periods beginning on or after 15 March 2023. (4) If a club has an accounting period (“the straddling accounting period”) that begins before a commencement date and ends on or after that date— (a) the part of the straddling accounting period that falls before that date, and (b) the part of the straddling accounting period that falls on or after that date, are to be treated for relevant purposes as separate accounting periods. (5) In subsection (4)— “commencement date” means the date mentioned in subsection (2) or (3); “relevant purposes” means the purposes of determining the club’s liability to any charge to tax, or eligibility for any tax relief, that is affected by the club’s status as a CASC. (6) For the purposes of this section a club has “asserted its status as a CASC” if, immediately before 15 March 2023— (a) it is registered as a community amateur sports club under section 658 of CTA 2010, or (b) it is not so registered but is entitled to be so in accordance with that section and has made an application for registration under subsection (2) of that section.
Propose a change(1) Schedule 24 makes provision about the Homes for Ukraine Sponsorship Scheme in relation to— (a) income tax (b) corporation tax; (c) annual tax on enveloped dwellings; (d) stamp duty land tax. (2) In this section and in Schedule 24, “the Homes for Ukraine Sponsorship Scheme” means the scheme contained in paragraphs UKR 11.1 to UKR 20.2 of Appendix Ukraine Scheme to the immigration rules (within the meaning of the Immigration Act 1971).
Propose a change(1) The Office of Tax Simplification is abolished. (2) The amendments in subsections (3) to (8) are made in consequence of subsection (1). (3) In the House of Commons Disqualification Act 1975, in Part 2 of Schedule 1 (bodies of which all members are disqualified) omit the entry for the Office of Tax Simplification. (4) In the Northern Ireland Assembly Disqualification Act 1975, in Part 2 of Schedule 1 (bodies of which all members are disqualified) omit the entry for the Office of Tax Simplification. (5) In the Freedom of Information Act 2000, in Part 6 of Schedule 1 (other public bodies and offices: general) omit the entry for the Office of Tax Simplification. (6) In the Equality Act 2010, in Part 1 of Schedule 19 (public authorities: general), under the heading “industry, business, finance etc” omit the entry for the Office of Tax Simplification. (7) In FA 2016 omit Part 12 and Schedule 25 (Office of Tax Simplification). (8) In FA 2022 omit section 102 (increase in membership of the OTS) and the italic heading before it.
Propose a change(1) In FA 2004, in Part 4 (pension schemes etc)— (a) in section 150 (meaning of “pension scheme”), in subsection (5A), for “274B” substitute “274ZA”; (b) in section 251 (information: general requirements), after subsection (5) insert— (5A) Regulations under this section may make different provision for different cases. ; (c) section 274B (National Employment Savings Trust and Master Trust schemes) (which appears under the italic heading “National Employment Savings Trust and Master Trust schemes” at the beginning of Chapter 8 and before section 274A) is renumbered section 274ZA; (d) after section 274ZA (as renumbered by paragraph (c)) insert— Dormant pension benefits Treatment of pension benefits reclaimed from reclaim fund etc 274ZB (1) Subsection (2) applies where an amount is paid out of an authorised reclaim fund in respect of transferred dormant eligible pension benefits. (2) For the purposes of income tax and this Part, the amount paid out is to be treated as having been paid as a consequence of a right that is the same as the original rights, acquired as the original rights were acquired and having the same characteristics as those rights. (3) The Commissioners for His Majesty’s Revenue and Customs may make regulations in relation to cases where— (a) an amount is paid out of an authorised reclaim fund in respect of transferred dormant eligible pension benefits, (b) the registered pension scheme from which the benefits were transferred was wound up before the payment of that amount, and (c) the payment, or part of the payment, is treated (by virtue of subsection (2)) as being the payment by a registered pension scheme of— (i) a pension protection lump sum death benefit, (ii) an annuity protection lump sum death benefit, (iii) a drawdown pension fund lump sum death benefit, or (iv) a flexi-access drawdown fund lump sum death benefit. (4) Regulations under subsection (3) may provide that a person specified in the regulations— (a) is to be treated as the scheme administrator for the purposes of the operation of section 206; (b) is responsible for the discharge of all obligations imposed on the scheme administrator by or under this Part so far as related to the liability imposed by that section to pay tax in respect of it. (5) Regulations under subsection (3) may— (a) make specific or general provision; (b) make different provision for different cases. (6) No liability to income tax arises in respect of income derived from investments or deposits— (a) that are held by an authorised reclaim fund, and (b) that relate to an amount transferred to the authorised reclaim fund in respect of transferred dormant eligible pension benefits. (7) For the purposes of subsection (6), it does not matter when liability to income tax on income within that subsection would otherwise arise. (8) Subsection (2) of section 186 (income) applies for the purposes of subsection (6) of this section as it applies for the purposes of subsection (1) of that section. (9) For the purposes of this section— “authorised reclaim fund” has the same meaning as in the Dormant Assets Acts 2008 to 2022; “the original rights” are a person’s rights against the scheme administrator of a registered pension scheme, in respect of the benefits subsequently transferred by the scheme administrator to an authorised reclaim fund, immediately before the transfer; “transferred dormant eligible pension benefits” means dormant eligible pensions benefits owing to a person that have been transferred by the scheme administrator of a registered pension scheme to an authorised reclaim fund with the result that section 5 of the Dormant Assets Act 2022 (transfer of eligible pension benefits to reclaim fund) applies (and references to benefits being transferred are to be construed accordingly). (2) In the Inheritance Tax Act 1984, in Chapter 5 of Part 5 (miscellaneous reliefs), after section 159 insert— Dormant assets Treatment of dormant assets 159A (1) This section applies where there is a transfer in respect of a dormant asset. (2) There is a transfer in respect of a dormant asset where an amount is transferred by an institution in respect of an asset— (a) to an authorised reclaim fund, with the result that section 1 of the 2008 Act or section 2, 5, 8, 12 or 14 of the 2022 Act applies in relation to the asset, or (b) to an authorised reclaim fund and one or more charities, with the result that section 2 of the 2008 Act applies in relation to the asset. (3) For the purposes of this Act, rights which a person (“P”) acquires under Part 1 of the 2008 Act or Part 1 or sections 22 to 25 of the 2022 Act (as the case may be) after the transfer are to be treated as the same asset as the original rights, acquired as the original rights were acquired and having the same characteristics as those rights. (4) For the purposes of this section— “the 2008 Act” means the Dormant Bank and Building Society Accounts Act 2008; “the 2022 Act” means the Dormant Assets Act 2022; “asset” means an asset within the scope of the dormant assets scheme (see section 1(6) of the 2022 Act); “authorised reclaim fund” has the same meaning as in the Dormant Assets Acts 2008 to 2022; “the original rights” are— in a case where— section 8 of the 2022 Act (investment assets) applies in relation to the asset and there has been a conversion as mentioned in section 9(3)(a) of that Act in connection with the transfer, or section 14 of the 2022 Act (securities assets) applies in relation to the asset and there has been a conversion as mentioned in section 15(1)(a) of that Act in connection with the transfer, P’s rights against the institution immediately before that conversion; in any other case, P’s rights against the institution immediately before the transfer. (3) The amendments made by subsection (1) come into force on the day on which this Act is passed. (4) The amendment made by subsection (2) is treated as having come into force on 6 June 2022.
Propose a change(1) The Treasury may make regulations for, or in connection with, giving effect to international tax compliance arrangements to any extent, subject to such exceptions or modifications as the Treasury consider appropriate. (2) For the purposes of this section, “international tax compliance arrangements” means any provision of— (a) arrangements specified in an Order in Council made under section 173 of FA 2006 (international tax enforcement arrangements); (b) the agreement reached between the Government of the United Kingdom and the Government of the United States of America to improve international tax compliance and to implement the provisions commonly known as the Foreign Account Tax Compliance Act in the enactment of the United States of America called the Hiring Incentives to Restore Employment Act, signed on 12 September 2012; (c) the guidance on country-by-country reporting contained in the Organisation for Economic Co-operation and Development (“OECD”) Guidance on Transfer Pricing Documentation and Country-by-Country Reporting, published in 2014; (d) the OECD Standard for Automatic Exchange of Financial Account Information in Tax Matters, published in 2014; (e) the OECD Model Mandatory Disclosure Rules for CRS Avoidance Arrangements and Opaque Offshore Structures, published in 2018; (f) the OECD Model Rules for Reporting by Platform Operators with respect to Sellers in the Sharing and Gig Economy, published on 3 July 2020; (fa) the OECD Crypto-Asset Reporting Framework, published in 2022; (g) any other arrangements or agreements made in relation to any territory or territories outside the United Kingdom, or documents related to those arrangements or agreements, which make provision corresponding or similar to that made by any arrangements, agreement or document mentioned in any of paragraphs (a) to (fa). (3) A reference in subsection (2) to arrangements, an agreement or another document includes a reference to the arrangements, agreement or other document as modified, supplemented or replaced from time to time. (4) Regulations under subsection (1) may, in particular— (a) require persons to disclose information of a specified description, including information about arrangements that they participated in before (as well as after) the coming into force of this section; (b) require the information to be disclosed— (i) to HMRC, specified persons or persons of a specified description, (ii) at specified times, (iii) in relation to specified periods of time, and (iv) in a specified form and manner; (c) impose other obligations on persons in connection with requirements to disclose information, including obligations to provide information to, and obtain information from, other specified persons; (d) provide for the imposition of penalties in respect of a contravention of, or non-compliance with, a requirement of the regulations, including provision about appeals in relation to the imposition of a penalty; (e) provide that a reference in the regulations to any international tax compliance arrangements is to be read as a reference to those arrangements as modified, supplemented or replaced from time to time; (and for the purposes of this subsection “specified” means specified by or under the regulations). (5) The regulations may— (a) make different provision for different purposes; (b) make provision by reference to things specified in a notice published by the Commissioners (as revised or replaced from time to time) in accordance with the regulations; (c) allow any requirement, obligation or other provision that may be imposed or made by reference to subsection (4)(a) to (c) to be made by specific or general direction given by the Commissioners; (d) make provision under which the Commissioners or other persons may exercise discretions; (e) make consequential, supplementary, incidental, transitional or saving provision (including provision amending, repealing or revoking an enactment whenever passed or made). (6) For the purposes of subsections (4) and (5)— “arrangements” means any scheme, transaction or series of transactions; “the Commissioners” means the Commissioners for His Majesty’s Revenue and Customs; “HMRC” means His Majesty’s Revenue and Customs; “participate”, in relation to arrangements, includes being involved in, or facilitating, the arrangements in any way (for example, by receiving any benefit from them or by designing, marketing or providing services in connection with them, or arranging for others to do so). (7) The Treasury may by regulations amend the list of international tax compliance arrangements in subsection (2) by— (a) adding an entry for any arrangements, agreement or document, by or under which provision is made about the exchange of information; (b) altering or removing an entry. (8) Regulations under this section are to be made by statutory instrument. (9) A statutory instrument containing (whether alone or with other provision) regulations made under subsection (7) may not be made unless a draft of the instrument has been laid before, and approved by resolution of, the House of Commons. (10) A statutory instrument containing any other regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons. (11) The following provisions are repealed— (a) section 222 of FA 2013; (b) section 122 of FA 2015; (c) section 84 of FA 2019; (d) section 129 of FA 2021. (12) Regulations made under any provision listed in subsection (11) are to be treated as if they were made under this section (so far as that would not otherwise be the case).
Propose a changeIn section 38(8) of the Administration of Justice Act 1982 (management and investment of funds in court: rules), after paragraph (f) (but before the “and” at the end) insert— (fa) provide for the payment of a sum of money in court into the Consolidated Fund if— (i) the payment is in respect of funds in court which have been vested in the Accountant General under subsection (1) for at least 30 years, and (ii) the conditions (if any) prescribed by the rules are met.
Propose a change(1) HMRC may not, at any time on or after 15 March 2023, make a payment (whether directly or indirectly) to or for the benefit of a person who is, at that time, a designated person for the purposes of financial sanctions regulations. (2) The reference in subsection (1) to a payment— (a) is a reference to a payment, including a repayment or refund, that HMRC would (apart from that subsection) be required or permitted, by or under any enactment, to make to the person, and (b) includes a reference to a payment that HMRC would (apart from that subsection) be required or permitted to make to the person by way of setting off the amount payable (as a credit) against a liability of the person to pay an amount to HMRC (as a debit). (3) The reference in subsection (1) to a payment being made (directly or indirectly) to or for the benefit of a person (“P”) includes the payment being made to another person who is owned or controlled (directly or indirectly) by P. (4) Nothing in this section prevents the accrual of interest, in accordance with any enactment, on a withheld amount. (5) But no other supplementary amount is payable by HMRC under section 79(1) of VATA 1994 (repayment supplement in respect of certain delayed payments or refunds), or any other enactment, by reference to an amount that is (or was) a withheld amount not being paid to a person on or before a particular date (including a date falling before 15 March 2023). (6) Provision made by or under section 15 of SAMLA 2018 (exceptions and licences), and by section 44 of that Act (protection for acts done for the purposes of compliance), applies (with the necessary modifications) for the purposes of the prohibition under subsection (1) as it applies for the purposes of prohibitions under financial sanctions regulations. (7) The Treasury may by regulations made by statutory instrument— (a) specify further exceptions to the prohibition in subsection (1); (b) make such other provision as they consider appropriate for the purposes of, or for purposes connected to, any provision made by this section. (8) A statutory instrument containing regulations under subsection (7) is subject to annulment in pursuance of a resolution of the House of Commons. (9) References in this section to “financial sanctions regulations” are references to regulations made (whether before or after the passing of this Act) under section 1 of SAMLA 2018, so far as they make provision for or in connection with imposing financial sanctions (within the meaning of section 3 of that Act). (10) In this section— “designated person” has the meaning given by section 9 of SAMLA 2018; “enactment” means any provision made by or under an Act (whether before or after the passing of this Act); “HMRC” means His Majesty's Revenue and Customs; “SAMLA 2018” means the Sanctions and Anti-Money Laundering Act 2018; “a withheld amount” means an amount that HMRC would, apart from this section, be required or permitted to pay to a person.
Propose a change(1) Section 12(2) of the Investigatory Powers Act 2016 (restriction of powers to obtain communications data) does not apply to a power falling within subsection (2). (2) A power falls within this subsection if it is conferred (whether before, on or after the passing of this Act) by or under— (a) any Finance Act of any year (including this Act and any other numbered Finance Act); (b) the Taxes Acts (within the meaning of TMA 1970); (c) the customs and excise Acts (within the meaning of CEMA 1979); (d) any enactment relating to value added tax; (e) any enactment, not falling within paragraphs (a) to (d), that relates to tax. (3) But subsection (1) does not apply in relation to the exercise of such a power by a public authority in the course of a criminal investigation by the authority. (4) In section 12 of the Investigatory Powers Act 2016, after subsection (2) insert— (2A) Subsection (2) is subject to section 352(1) of the Finance (No. 2) Act 2023 (no restriction on tax related powers). (5) In Schedule 36 to FA 2008 (information and inspection powers), in paragraph 19, omit sub-paragraphs (4) and (5). (6) In consequence of the repeal made by subsection (5), omit paragraph 10 of Schedule 2 to the Investigatory Powers Act 2016. (7) The modification and amendments made by subsections (1) to (6) are to be treated as having always had effect. (8) Subsections (9) and (10) apply where— (a) before the day on which this Act is passed, a public authority imposed a requirement on a person under a power falling within subsection (2), and (b) as a result of section 12(2) of the Investigatory Powers Act 2016 the public authority did not, ignoring this section, have the power to impose it. (9) The requirement is to be treated as having been imposed on the day on which this Act is passed (and accordingly the period in which it must be complied with is to be treated as starting on that day) unless— (a) the requirement was withdrawn by the public authority before that day, or (b) the person complied with the requirement before that day. (10) Where, before the day on which this Act is passed, the public authority imposed a penalty on the person for contravening the requirement— (a) the penalty is of no effect, and (b) if already paid, the authority is liable to repay it.
Propose a changeIn this Act the following abbreviations are references to the following Acts— ALDA 1979 | Alcoholic Liquor Duties Act 1979 CAA 2001 | Capital Allowances Act 2001 CEMA 1979 | Customs and Excise Management Act 1979 CTA 2009 | Corporation Tax Act 2009 CTA 2010 | Corporation Tax Act 2010 FA followed by a year | Finance Act of that year F(No.2)A followed by a year | Finance (No.2) Act of that year HODA 1979 | Hydrocarbon Oil Duties Act 1979 ICTA | Income and Corporation Taxes Act 1988 ITA 2007 | Income Tax Act 2007 ITEPA 2003 | Income Tax (Earnings and Pensions) Act 2003 ITTOIA 2005 | Income Tax (Trading and Other Income) Act 2005 TCGA 1992 | Taxation of Chargeable Gains Act 1992 TCTA 2018 | Taxation (Cross-border Trade) Act 2018 TIOPA 2010 | Taxation (International and Other Provisions) Act 2010 TMA 1970 | Taxes Management Act 1970 TPDA 1979 | Tobacco Products Duty Act 1979 VATA 1994 | Value Added Tax Act 1994 VERA 1994 | Vehicle Excise and Registration Act 1994
Propose a changeThis Act may be cited as the Finance (No. 2) Act 2023.
Propose a changeSection 10 Part 1 Claim notifications Requirement to make claim notifications in relation to certain R&D claims 1 (1) Chapter 6A of Part 3 of CTA 2009 (trade profits: R&D expenditure credits) is amended as follows. (2) In section 104A (R&D expenditure credits), after subsection (5) insert— (5A) This section is subject to section 104AA. (3) After that section insert— Requirement to make a claim notification 104AA (1) A company may not make a claim under section 104A(1) (an “RDEC claim”) after the end of the claim notification period unless— (a) the company has made an R&D claim during the period of three years ending with the last day of the claim notification period, (b) the company makes a claim notification in respect of the RDEC claim within the claim notification period, or (c) the accounting period in respect of which the RDEC claim is made falls within the same period of account as another accounting period in respect of which the company has made an R&D claim or a claim notification. (2) For the purposes of subsection (1)(a) ignore any R&D claim for an accounting period beginning before 1 April 2023 that is included in the company’s company tax return only by virtue of an amendment made on or after that date (see paragraph 83B(2) of Schedule 18 to FA 1998). (4) In section 104Y (interpretation), in subsection (1)— (a) before the entry for “large company” insert— “claim notification” (see section 1142A), “claim notification period” (see section 1142A), ; (b) after the entry for “research and development” insert— “R&D claim” (see section 1142B), . 2 (1) Part 13 of CTA 2009 (additional relief for expenditure on R&D) is amended as follows. (2) In section 1044 (additional deduction in calculating profits of trade), in subsection (9), after “subject to” insert — (a) section 1045A (requirement to make a claim notification); (b) . (3) Before section 1046 (relief only available where company is going concern) but after the preceding italic heading insert— Requirement to make a claim notification 1045A (1) A company may not make a claim under section 1044(6) (an “additional deduction claim”) after the end of the claim notification period unless— (a) the company has made an R&D claim during the period of three years ending with the last day of the claim notification period, (b) the company makes a claim notification in respect of the additional deduction claim within the claim notification period, or (c) the accounting period in respect of which the additional deduction claim is made falls within the same period of account as another accounting period in respect of which the company has made an R&D claim or a claim notification. (2) For the purposes of subsection (1)(a) ignore any R&D claim for an accounting period beginning before 1 April 2023 that is included in the company’s company tax return only by virtue of an amendment made on or after that date (see paragraph 83B(2) of Schedule 18 to FA 1998). . (4) In section 1054 (entitlement to and payment of tax credit), in subsection (5), after “subject to” insert — (a) section 1054A (requirement to make a claim notification); (b) . (5) After that section insert— Requirement to make a claim notification 1054A (1) A company may not make a claim under section 1054(2) (an “R&D tax credit claim”) after the end of the claim notification period unless— (a) the company has made an R&D claim during the period of three years ending with the last day of the claim notification period, (b) the company makes a claim notification in respect of the R&D tax credit claim within the claim notification period, or (c) the accounting period in respect of which the R&D tax credit claim is made falls within the same period of account as another accounting period in respect of which the company has made an R&D claim or a claim notification. (2) For the purposes of subsection (1)(a) ignore any R&D claim for an accounting period beginning before 1 April 2023 that is included in the company’s company tax return only by virtue of an amendment made on or after that date (see paragraph 83B(2) of Schedule 18 to FA 1998). (6) After section 1142 (“qualifying body”) insert— “Claim notification” and “claim notification period” 1142A (1) For the purposes of this Part— “claim notification” means, in relation to an R&D claim, a notification made by the company to an officer of His Majesty’s Revenue and Customs in accordance with regulations under subsection (2); “claim notification period” means, in relation to an R&D claim, the period— beginning with the first day of the period of account which is the same as the accounting period in respect of which the claim is made, or within which that accounting period falls, and ending with the last day of the period of six months beginning with the first day after that period of account. (2) The Commissioners for His Majesty’s Revenue and Customs may by regulations specify, in relation to a claim notification— (a) information to be provided with the notification; (b) the form and manner in which the notification is to be made. “R&D claim” 1142B For the purposes of this Part an “R&D claim” means a claim under— (a) section 104A (R&D expenditure credits), (b) section 1044 (relief for SMEs: additional deduction), or (c) section 1054 (entitlement to R&D tax credit). Part 2 R&D expenditure on data and cloud computing Relief for R&D expenditure on data and cloud computing 3 (1) Chapter 9 of Part 13 of CTA 2009 (additional relief for expenditure on R&D: supplementary) is amended as follows. (2) In the italic heading before section 1125 (“software or consumable items”), after “Software” insert “, data licences, cloud computing services”. (3) In that section— (a) in the heading, after “Software” insert “, data licences, cloud computing services”; (b) in subsection (1)— (i) in the words before paragraph (a), for “or consumable items means expenditure on” substitute “, data licences, cloud computing services or consumable items means an amount paid by the company in respect of”; (ii) omit the “or” at the end of that paragraph; (iii) after that paragraph insert— (aa) data licences, (ab) cloud computing services, or ; (c) after subsection (1) insert— (1A) For the purposes of subsection (1)(aa) a data licence is a licence to access and use a collection of digital data. (1B) For the purposes of subsection (1)(ab) cloud computing services include the provision of access to, and maintenance of, remote— (a) data storage and hardware facilities; (b) operating systems and software platforms. (4) In section 1126 (software or consumable items: attributable expenditure)— (a) in the heading, after “Software” insert “, data licences, cloud computing services”; (b) in subsections (1), (2), (3), (4), (5) and (6), in each place it appears, after “software” insert “, data licences, cloud computing services”. (5) After section 1126 insert— Attributable expenditure: special rules for data and cloud computing 1126ZA (1) Expenditure on data licences or cloud computing services is not to be treated as attributable to relevant research and development if, in connection with the grant of a licence or the provision of a service, a relevant person obtains— (a) a right to sell data in respect of which the licence is granted or the service is provided (as the case may be); (b) a right to publish, share or otherwise communicate data in respect of which the licence is granted or the service is provided (as the case may be) to a third party, other than for the purposes of communications reasonably necessary for, or incidental to, the purposes of the relevant research and development. (2) Expenditure on data licences or cloud computing services is not to be treated as attributable to relevant research and development so far as it is attributable to a qualifying indirect activity. (3) In this section— “qualifying indirect activity” means an activity mentioned in paragraph 31 of the Guidelines on the Meaning of Research and Development for Tax Purposes issued on 7 March 2023 and as amended from time to time; “relevant person” has the meaning given in section 1126A(10). (6) In section 1126A (attributable expenditure: special rules), in the heading, after “special rules” insert “for consumable items”. (7) In section 1126B (attributable expenditure: further provision)— (a) in subsection (1)— (i) after “expenditure on” insert “data licences, cloud computing services or”; (ii) after “1126” insert “, 1126ZA”; (b) in subsection (2)— (i) in paragraph (a), after “expenditure on” insert “data licences, cloud computing services or”; (ii) in paragraph (b), after “in which” insert “data licences, cloud computing services or”; (c) in subsection (4), after paragraph (a) insert— (aa) section 1126ZA; . Relief for R&D expenditure on data and cloud computing: consequential amendments 4 CTA 2009 is amended as follows. 5 In Chapter 6A of Part 3 (trade profits: R&D expenditure credits)— (a) in section 104D (expenditure on sub-contracted R&D undertaken in-house), in subsection (3)(b), after “software” insert “, data licences, cloud computing services”; (b) in section 104G (subsidised qualifying expenditure on in-house direct R&D), in subsection (3)(b), after “software” insert “, data licences, cloud computing services”; (c) in section 104J (qualifying expenditure on in-house direct R&D), in subsection (2)(b), after “software” insert “, data licences, cloud computing services”; (d) in section 104Y (interpretation), in subsection (2), in the description of sections 1125 to 1126B, after “software” insert “, data licences, cloud computing services”. 6 In Part 13 (additional relief for expenditure on R&D)— (a) in Chapter 2 (relief for SMEs: cost of R&D incurred by SME), in section 1052 (qualifying expenditure on in-house direct R&D), in subsection (2)(b), after “software” insert “, data licences, cloud computing services”; (b) in Chapter 9 (supplementary), in section 1134 (qualifying element of sub-contractor payment: connected persons), in subsection (3)(c), after “software” insert “, data licences, cloud computing services”. 7 In Schedule 2 (transitionals and savings), in Part 15 (research and development)— (a) in the italic heading before paragraph 122, after “software” insert “, data licences, cloud computing services”; (b) in paragraph 122(2), after “software” insert “, data licences, cloud computing services”. 8 In Schedule 4 (index of defined expressions), in both places it occurs, after “software” insert “, data licences, cloud computing services”. 9 In section 357BLB of CTA 2010 (qualifying expenditure on relevant R&D undertaken in-house)— (a) in subsection (2), in paragraph (b), after “software” insert “, data licences, cloud computing services”; (b) in subsection (7)— (i) in paragraph (c), after “software” insert “, data licences, cloud computing services”; (ii) in paragraph (d), after “software” insert “, data licences, cloud computing services”. Part 3 Amendments to Schedule 18 to FA 1998 Introduction 10 Schedule 18 to FA 1998 (company tax returns, assessments and related matters) is amended as follows. Power of HMRC to collect overpaid R&D tax relief or expenditure credit 11 In paragraph 52 (recovery of excessive repayments etc)— (a) in sub-paragraph (2) omit paragraphs (bza) and (ba); (b) for sub-paragraph (2A) substitute— (2A) The provisions of paragraphs 41 and 45 to 48 relating to discovery assessments apply to an amount paid to a company by way of— (a) first-year tax credit under Schedule A1 to the Capital Allowances Act; (b) R&D expenditure credit under Chapter 6A of Part 3 of the Corporation Tax Act 2009; (c) R&D tax credit under Chapter 2 or 7 of Part 13 of that Act, but only to the extent that the company was not, or is no longer, entitled to the credit. Time limits for R&D claims 12 For paragraph 83E (time limit for claims) substitute— 83E (1) Except where sub-paragraph (3) applies, a claim to which this Part of this Schedule applies may be made, amended or withdrawn at any time up to the last day of the period of— (a) two years beginning with the last day of the period of account, in a case where the period of account to which the claim relates is not longer than 18 months, or (b) 42 months beginning with the first day of the period of account, in any other case. (2) Sub-paragraph (3) applies where— (a) a company makes a claim for R&D tax relief under Part 13 of the Corporation Tax Act 2009, (b) the company is not entitled to the relief, and (c) an officer of Revenue and Customs exercises the power under paragraph 34(2)(b) or (2A) to make an amendment by removing the claim from the company tax return in which it is made. (3) The company may make, amend or withdraw a claim for R&D expenditure credit under Chapter 6A of Part 3 of the Corporation Tax Act 2009 in respect of eligible expenditure at any time up to whichever is the last of the following dates— (a) 30 days after notice of the amendment mentioned in sub-paragraph (2)(c) is issued; (b) if an appeal is brought against that amendment, 30 days after the date on which the appeal is finally determined. (4) In this paragraph “eligible expenditure” means expenditure— (a) to which the claim mentioned in sub-paragraph (2)(a) relates, and (b) in respect of which the company is entitled to R&D expenditure credit. (5) A claim to which this Part of this Schedule applies may be made, amended or withdrawn after the end of the period mentioned in sub-paragraph (1) or (3) (as the case may be) if an officer of Revenue and Customs allows it. Requirement to provide additional information in relation to R&D claims 13 In Part 9A (company tax returns etc: claims for R&D expenditure credits or R&D tax relief), after paragraph 83E (substituted by paragraph 12) insert— Additional information to be provided in relation to claim 83EA (1) A claim to which this Part of this Schedule applies is invalid unless the claimant company has provided information to an officer of Revenue and Customs in accordance with regulations under sub-paragraph (2) not later than the date on which the claim is made or amended by the company in accordance with paragraph 83E. (2) The Commissioners for Revenue and Customs may by regulations specify, in relation to a claim to which this Part of this Schedule applies— (a) information to be provided by the claimant company; (b) the form and manner in which the information is to be provided. Power of HMRC to remove R&D claims made in error from return 14 In Part 9A (claims for R&D expenditure credits or R&D tax relief), after paragraph 83EA (inserted by paragraph 13) insert— Removal from return of claims made in error 83EB (1) This paragraph applies, in relation to a claim to which this Part of this Schedule applies (the “original claim”), where an officer of Revenue and Customs— (a) reasonably believes that a claimant company has failed to comply with a requirement relating to the making of the claim (and accordingly that the claim has been made in error), and (b) exercises the power under paragraph 16(1) to make a correction by removing the claim from the company tax return in which it is made. (2) Sub-paragraphs (4) and (5) of paragraph 16 do not apply in relation to the correction (and accordingly the claimant company may not reject the correction). (3) The claimant company may, within 90 days beginning with the date of the notice issued under paragraph 16(3), send written representations to an officer of Revenue and Customs objecting to the notice on the grounds that a matter stated in the notice was incorrect. (4) An officer of Revenue and Customs must consider any representations made under sub-paragraph (3). (5) Having considered the representations, the officer must determine whether to— (a) confirm the notice, or (b) withdraw the notice, and must notify the claimant company accordingly. (6) Nothing in sub-paragraph (2) prevents the claimant company from amending its company tax return to make a new claim to which this Part of this Schedule would apply in respect of the expenditure to which the original claim related (but see sub-paragraph (7)). (7) Where, in relation to the original claim— (a) a claim notification (within the meaning of section 1142A of the Corporation Tax Act 2009) was required to be made, and (b) no claim notification was made, the company may not make a new claim to which this Part of this Schedule would apply in respect of the expenditure to which the original claim related. Part 4 Miscellaneous amendments Amendment of CTA 2009 15 CTA 2009 is amended as follows. R&D tax relief: circumstances in which enterprises are treated as SMEs 16 (1) In section 1119— (a) in subsection (1), at the end insert “(and see sections 1120A and 1120B)”; (b) in subsection (2), for “section 1120” substitute “sections 1120 to 1120B”. (2) In section 1120 (qualifications to section 1119)— (a) after subsection (6) insert— (6A) This section is subject to sections 1120A and 1120B. ; (b) in subsection (7), in the words before paragraph (a), after “section” insert “and in sections 1120A and 1120B”. (3) After that section insert— Enterprise treated as an SME where related enterprise becomes large 1120A (1) This section applies, in relation to an accounting period, where the following conditions are met. (2) The first condition is that, for the duration of the accounting period, an enterprise (“E”) is related to a partner enterprise or linked enterprise (“F”). (3) The second condition is that, at the start of the accounting period, both E and F are small or medium-sized enterprises. (4) The third condition is that, at the end of the accounting period, E is not a small or medium-sized enterprise by reason only that F has, during the accounting period, exceeded the employee limit or either of the financial limits. (5) Both E and F are to be treated as if they were small or medium-sized enterprises for the accounting period. Enterprise treated as an SME where acquired by an SME 1120B (1) This section applies, in relation to an accounting period, where the following conditions are met. (2) The first condition is that, at the start of the accounting period, an enterprise (“E”) was not a small or medium-sized enterprise by reason only that a partner enterprise or linked enterprise to which E was related exceeded the employee limit or either of the financial limits. (3) The second condition is that, during the accounting period, control of E was acquired by a company that, at the time of the acquisition, was a small or medium-sized enterprise. (4) E is to be treated as if it were a small or medium-sized enterprise for the accounting period. (5) In subsection (3) “control” has the same meaning as in section 1124 of CTA 2010. Accounts treated as prepared on going concern basis 17 (1) In section 104T (R&D expenditure credits: “going concern”), after subsection (4) insert— (4A) For the purposes of this section, where a company (“A”) is a member of the same group as another company (“B”) and A’s latest published accounts were not prepared on a going concern basis by reason only of a relevant group transfer, the accounts are to be treated as if they were prepared on a going concern basis. (4B) For the purposes of this section a “relevant group transfer” is a transfer within the accounting period to which the latest published accounts relate by A of its trade and research and development to another member of the group mentioned in subsection (4A). (2) In section 1046 (R&D relief for SMEs: relief only available where company is going concern), after subsection (2C) insert— (2D) For the purposes of this section, where a company (“A”) is a member of the same group as another company (“B”) and A’s latest published accounts were not prepared on a going concern basis by reason only of a relevant group transfer, the accounts are to be treated as if they were prepared on a going concern basis. (2E) For the purposes of this section— (a) a “relevant group transfer” is a transfer, within the accounting period to which the latest published accounts relate, by A of its trade and research and development to another member of the group mentioned in subsection (2D); (b) A and B are members of the same group if they are members of the same group of companies for the purposes of Part 5 of CTA 2010 (group relief). (3) In section 1057 (R&D relief for SMEs: tax credit only available where company is a going concern), after subsection (4C) insert— (4D) For the purposes of this section, where a company (“A”) is a member of the same group as another company (“B”) and A’s latest published accounts were not prepared on a going concern basis by reason only of a relevant group transfer, the accounts are to be treated as if they were prepared on a going concern basis. (4E) For the purposes of this section— (a) a “relevant group transfer” is a transfer, within the accounting period to which the latest published accounts relate, by A of its trade and research and development to another member of the group mentioned in subsection (4D); (b) A and B are members of the same group if they are members of the same group of companies for the purposes of Part 5 of CTA 2010 (group relief). Meaning of expenditure incurred on payments 18 (1) In section 104Y (R&D expenditure credits: interpretation), at the end insert— (4) References in this Chapter to expenditure incurred on payments (however expressed) are references to expenditure incurred on payments made before the making of a claim under this Chapter in relation to that expenditure. (2) Before section 1140 insert— Expenditure incurred on payments 1139A (1) References in this Part to expenditure incurred on payments (however expressed) are references to expenditure incurred on payments made before the making of a claim under this Part in relation to that expenditure. Part 5 Commencement 19 The amendment made by paragraph 13 of this Schedule has effect in relation to claims made on or after 1 August 2023. 20 The amendments made by the remaining provisions of this Schedule have effect in relation to accounting periods beginning on or after 1 April 2023.
Propose a changeSection 29 Part 1 Estates in administration Chapter 1 Income tax The applicable rate for grossing up basic amounts of estate income 1 (1) Chapter 6 of Part 5 of ITTOIA 2005 (beneficiaries’ income from estates in administration) is amended as follows. (2) In section 656 (income charged: UK estates), in subsection (2) omit “for that year”. (3) In section 657 (income charged: foreign estates), in subsection (3) omit “for that year”. (4) For section 663 (the applicable rate for grossing up basic amounts of estate income) substitute— The applicable rate for grossing up basic amounts of estate income 663 (1) The applicable rate by reference to which a basic amount of estate income is grossed up for the purposes of sections 656 and 657 depends on the rate at which income tax was borne by the parts of the aggregate income of the estate from which section 679 treats the basic amount as having been paid. (2) If the same rate was borne by all of the income from which section 679 treats the basic amount as having been paid, the applicable rate is that rate. (3) If different rates were borne by different parts of the income from which section 679 treats the basic amount as having been paid, each of those rates is the applicable rate by reference to which the corresponding part of the basic amount is grossed up. The applicable rate for grossing up for determining shares in an estate in the final tax year 2 (1) Chapter 6 of Part 5 of ITTOIA 2005 (beneficiaries’ income from estates in administration) is amended as follows. (2) In section 668 (reduction in share of residuary income of estate)— (a) in subsection (1), in paragraph (b), for “(grossed up where subsection (5) applies)” substitute “grossed up, where the estate is a UK estate, by the applicable rate (see subsections (5A) to (5C))”; (b) for subsection (5) substitute— (5A) The applicable rate by reference to which a sum within subsection (1)(b) is grossed up depends on the rate at which income tax was borne by the parts of the aggregate income of the estate from which section 679A treats the sum as having been paid. (5B) If the same rate was borne by all the income from which section 679A treats the sum as having been paid, the applicable rate is that rate. (5C) If different rates were borne by different parts of the income from which section 679A treats the sum as having been paid, each of those rates is the applicable rate by reference to which the corresponding part of the sum is grossed up. (3) After section 679 insert— Income from which sums within section 668(1)(b) are treated as paid 679A (1) The part of the aggregate income of the estate from which a sum within section 668(1)(b) is treated as paid is determined by applying assumptions A and B in that order. (2) Assumption A is that if there are different persons with an absolute interest in the residue of the estate, such apportionments of the aggregate income of the estate in respect of those interests are to be made as are just and reasonable for the different interests. (3) Assumption B is that sums are paid from the income to which a person’s share of the residuary estate relates in descending order, starting with the income bearing income tax at the highest rate and ending with the income bearing income tax at the lowest rate. (4) If some, but not all, of the aggregate income of the estate is income within section 680, assumption C is applied before assumptions A and B. (5) Assumption C is that the basic amount is paid from income that is not within section 680 before it is paid from income within that section. (6) Assumptions A and B then apply— (a) first to determine the part of the income not within that section from which the basic amount is paid, and (b) then to determine the part of the income within that section from which the basic amount is paid. (4) In section 680 (income treated as bearing income tax), in subsection (1)— (a) omit the “and” at the end of the entry for section 670; (b) at the end insert , and section 679A (income from which sums within section 668(1)(b) are treated as paid). Income from stock dividends etc treated as bearing income tax at 0% 3 (1) Chapter 6 of Part 5 of ITTOIA 2005 (beneficiaries' income from estates in administration) is amended as follows. (2) In section 670 (applicable rate for determining assumed income entitlement (UK estates)) omit subsection (4A). (3) In section 680 (income treated as bearing income tax)— (a) in subsection (2), after “within subsection” insert “(2A) or”; (b) after subsection (2) insert— (2A) A sum that is part of the aggregate income of the estate because of falling within section 664(2)(c) (stock dividends) or (d) (release of loans to participator in close company: loans and advances to persons who die) is treated as bearing income tax at 0%. Income treated as dividend income and savings income 4 (1) Chapter 6 of Part 5 of ITTOIA 2005 (beneficiaries’ income from estates in administration) is amended as follows. (2) For section 680A (income treated as dividend income) substitute— Income treated as dividend income 680A (1) This section applies to estate income that— (a) by virtue of section 663 (applicable rate for grossing up basic amounts of estate income) is treated as bearing income tax at the ordinary dividend rate, or (b) by virtue of that section and section 680(2A) (income treated as bearing income tax: dividends and loans to a participator in close company) is treated as bearing income tax at 0%. (2) The income is treated as being dividend income. (3) After that section insert— Income treated as savings income 680B (1) This section applies to estate income relating to a person’s interest in the residue of an estate so far as that interest relates to income that— (a) falls within section 664(2)(a) (income of personal representatives charged to UK income tax), and (b) is savings income (see section 18 of ITA 2007). (2) The income is treated as being savings income. Order in which basic amounts are treated as paid from aggregate income 5 In section 679 of ITTOIA 2005 (income from which basic amounts are treated as paid)— (a) in subsection (3), for the words “in the following order” to the end of paragraph (c) substitute “in descending order, starting with the income bearing income tax at the highest rate and ending with the income bearing income tax at the lowest rate”; (b) in subsection (4), for “treated under section 680 as bearing income tax” substitute “within section 680”. Chapter 2 Corporation tax The applicable rate for grossing up basic amounts of estate income 6 (1) Chapter 3 of Part 10 of CTA 2009 (beneficiaries’ income from estates in administration) is amended as follows. (2) In section 941 (income charged: UK estates), in subsection (2) omit “for the relevant tax year”. (3) In section 942 (income charged: foreign estates), in subsection (3) omit “for the relevant tax year”. (4) For section 946 (applicable rate for grossing up basic amounts of estate income) substitute— Applicable rate for grossing up basic amounts of estate income 946 (1) The applicable rate by reference to which a basic amount of estate income is grossed up for the purposes of sections 941 and 942 depends on the rate at which income tax was borne by the parts of the aggregate income of the estate from which section 962 treats the basic amount as having been paid. (2) If the same rate was borne by all of the income from which section 962 treats the basic amount as having been paid, the applicable rate is that rate. (3) If different rates were borne by different parts of the income from which section 962 treats the basic amount as having been paid, each of those rates is the applicable rate by reference to which the corresponding part of the basic amount is grossed up. (5) After section 961 insert— Meaning of “the relevant tax year” 961A In sections 960 and 961, “the relevant tax year” in relation to an amount of estate income, means the tax year in which the amount of estate income would be treated as arising if— (a) the references in this Chapter to accounting periods were references to tax years, and (b) section 950(3) (apportionment between accounting periods) were ignored. The applicable rate for grossing up for determining shares in an estate in the final tax year 7 (1) Chapter 3 of Part 10 of CTA 2009 (beneficiaries’ income from estates in administration) is amended as follows. (2) In section 951 (reduction in share of residuary income of estate)— (a) in subsection (1), in paragraph (b), for “(grossed up where subsection (5) applies)” substitute “grossed up, where the estate is a UK estate, by the applicable rate (see subsections (5A) to (5C)); (b) for subsection (5) substitute— (5A) The applicable rate by reference to which a sum within subsection (1)(b) is grossed up depends on the rate at which income tax was borne by the parts of the aggregate income of the estate from which section 962A treats the sum as having been paid. (5B) If the same rate was borne by all the income from which section 962A treats the sum as having been paid, the applicable rate is that rate. (5C) If different rates were borne by different parts of the income from which section 962A treats the sum as having been paid, each of those rates is the applicable rate by reference to which the corresponding part of the sum is grossed up. (3) After section 962 insert— Income from which sums within section 951(1)(b) are treated as paid 962A (1) The part of the aggregate income of the estate from which a sum within section 951(1)(b) is treated as paid is determined by applying assumptions A and B in that order. (2) Assumption A is that if there are different persons with an absolute interest in the residue of the estate, such apportionments of the aggregate income of the estate in respect of those interests are to be made as are just and reasonable for the different interests. (3) Assumption B is that sums are paid from the income to which a person’s share of the residuary estate relates in descending order, starting with the income bearing income tax at the highest rate and ending with the income bearing income tax at the lowest rate. (4) If some, but not all, of the aggregate income of the estate is income within section 963, assumption C is applied before assumptions A and B. (5) Assumption C is that the basic amount is paid from income that is not within section 963 before it is paid from income within that section. (6) Assumptions A and B then apply— (a) first to determine the part of the income not within that section from which the basic amount is paid, and (b) then to determine the part of the income within that section from which the basic amount is paid. (4) In section 963 (income treated as bearing income tax)— (a) omit the “and” at the end of the entry for section 952; (b) at the end insert , and section 962A (income from which sums within section 951(1)(b) are treated as paid). Income from stock dividends etc treated as bearing income tax at 0% 8 (1) Chapter 3 of Part 10 of CTA 2009 (beneficiaries’ income from estates in administration) is amended as follows. (2) In section 936 (meaning of “UK estate” and “foreign estate”), in subsections (4) and (5), after “section 963(3)” insert “, (3A)”. (3) In section 963 of CTA 2009 (income treated as bearing income tax)— (a) in subsection (2), after “within subsection (3)” insert “, (3A)”; (b) in subsection (3), omit paragraph (b) (and the “or” immediately before it); (c) after subsection (3) insert— (3A) A sum that is part of the aggregate income of the estate because of falling within section 947(2)(c) (stock dividends) or (d) (release of loans to participator in close company: loans and advances to persons who die) is treated as bearing income tax at 0%. Order in which basic amounts are treated as paid from aggregate income 9 In section 962 of CTA 2009 (income from which basic amounts are treated as paid)— (a) in subsection (3), for the words “in the following order” to the end of paragraph (b) substitute “in descending order, starting with the income bearing income tax at the highest rate and ending with the income bearing income tax at the lowest rate”; (b) in subsection (4), for “treated under section 963 as bearing income tax” substitute “within section 963”. Part 2 Low income trusts and estates Chapter 1 Income tax Low income estates and trusts: tax liability of personal representatives and trustees 10 (1) Chapter 3 of Part 2 of ITA 2007 (calculation of income tax liability) is amended as follows. (2) In section 23 (the calculation of income tax liability), at the end of Step 2 insert— See also section 24B which provides that a taxpayer’s net income is taken to be £0 in certain cases. (3) After section 24A insert— Calculation of net income at Step 2 for low income estates and trusts 24B (1) Subsection (2) applies in relation to a taxpayer if— (a) they are the personal representative of a deceased person and, ignoring this section, their net income in that capacity at the end of Step 2 of the calculation in section 23 would be equal to or less than the de minimis estates amount, or (b) they are the trustee of a settlement (“the relevant settlement”) and, ignoring this section, their net income in that capacity at the end of that Step would be equal to or less than the de minimis trusts amount. (2) The taxpayer’s net income in their capacity as a personal representative of a deceased person or trustee of a settlement (as the case may be) at the end of Step 2 of the calculation in section 23 is taken to be £0. (3) The de minimis estates amount is £500. (4) The de minimis trusts amount is— (a) £500, or (b) in a case where subsection (5) applies, the higher of— (i) £100, and (ii) the settlor’s threshold amount. (5) This subsection applies where— (a) the settlor in relation to the relevant settlement is also the settlor in relation to one or more qualifying settlements, (b) ignoring this section, the trust rate income (within the meaning of Part 9) for the tax year of the trustees of the relevant settlement would be greater than £0, and (c) the relevant settlement is a settlement in respect of which each of the conditions mentioned in subsection (9) is met throughout the tax year. (6) The settlor’s threshold amount is the amount given by— £ 500 QS + 1 where QS is the total number of qualifying settlements. (7) If there is more than one settlor in relation to the relevant settlement— (a) calculate the threshold amount of each of them, and (b) use the lowest of those threshold amounts for the purposes of subsection (4)(b)(ii). (8) A settlement is a “qualifying settlement” if— (a) it is not the relevant settlement, (b) it is in existence at a time during the tax year, (c) ignoring this section, the trust rate income (within the meaning of Part 9) for the tax year of the trustees of the settlement would be greater than £0, and (d) it is a settlement in respect of which each of the conditions mentioned in subsection (9) is met throughout the tax year. (9) The conditions are— (a) the property comprised in the settlement is not held for a pensions purpose within the meaning of paragraph 7(3) of Schedule 1C to TCGA 1992 (property comprised in settlements held for a pensions purpose); (b) no income arising under the settlement is treated as the income of the settlor as a result of section 624 of ITTOIA 2005 (income where settlor retains an interest); (c) the settlement is not a qualifying trust within the meaning of section 34 or 35 of FA 2005 (trusts for the benefit of disabled persons or relevant minors); (d) the settlement is not a heritage maintenance settlement within the meaning of Chapter 10 of Part 9 (heritage maintenance settlements) (see section 507(2) and (3)). Low income estates: tax liability of beneficiaries 11 (1) Chapter 6 of Part 5 of ITTOIA 2005 (beneficiaries’ income from estates in administration) is amended as follows. (2) In section 649 (charge to tax on estate income), after subsection (1) insert— (1A) But income tax is not charged on estate income so far as that income consists of a basic amount which section 679 treats as having been paid from de minimis aggregate income. (1B) In subsection (1A), “de minimis aggregate income” means aggregate income of an estate which is treated as bearing income tax at 0% because of section 680(1A). (3) In section 656 (income charged: UK estates), in subsection (1), for “tax is charged under section 649” substitute “the charge to tax under section 649 is a charge”. (4) In section 657 (income charged: foreign estates), in subsection (1), for “tax is charged under section 649” substitute “the charge to tax under section 649 is a charge”. (5) In section 679 (income from which basic amounts are treated as paid)— (a) in subsection (3) (as amended by paragraph 5(a)), at the end insert “(subject to subsection (3A))”; (b) after that subsection insert— (3A) For the purposes of assumption B, where those parts include— (a) income bearing income tax at 0% by virtue of section 680(1A), and (b) other income bearing income tax at 0%, payments are to be made from income within paragraph (a) after income within paragraph (b). (6) In section 679A (income from which sums within section 668(1)(b) are treated as paid) (inserted by paragraph 2(3))— (a) in subsection (3), at the end insert “(subject to subsection (3A))”; (b) after that subsection insert— (3A) For the purposes of assumption B, where that income includes— (a) income bearing income tax at 0% by virtue of section 680(1A), and (b) other income bearing income tax at 0%, sums are to be paid from income within paragraph (a) after income within paragraph (b). (7) In section 680 (income treated as bearing income tax)— (a) after subsection (1) insert— (1A) If, in the case of a UK estate, the aggregate income of the estate for a tax year is equal to or less than the de minimis estates amount (within the meaning of section 24B of ITA 2007), the aggregate income of the estate for that tax year is treated as bearing income tax at 0%. ; (b) for subsection (2) substitute— (2) If— (a) subsection (1A) does not apply to treat the aggregate income of the estate for a tax year as bearing income tax at 0%, and (b) the aggregate income of the estate for that tax year includes a sum within subsection (2A) or (4), the sum is treated as bearing income tax at the rate specified for it in that subsection. ; (c) in subsection (5), after “sums within this section” insert “or from aggregate income treated as bearing income tax at 0% by virtue of subsection (1A)”. Chapter 2 Corporation tax Low income estates: tax liability of beneficiaries 12 (1) Chapter 3 of Part 10 of CTA 2009 (beneficiaries’ income from estates in administration) is amended as follows. (2) In section 934 (charge to tax on estate income), after subsection (1) insert— (1A) But corporation tax is not charged on estate income so far as that income consists of a basic amount which section 962 treats as having been paid from de minimis aggregate income. (1B) In subsection (1A), “de minimis aggregate income” means aggregate income of an estate which is treated as bearing income tax at 0% because of section 963(1A). (3) In section 941 (income charged: UK estates), in subsection (1), for “tax is charged under section 934” substitute “the charge to tax under section 934 is a charge”. (4) In section 942 (income charged: foreign estates), in subsection (1), for “tax is charged under section 934” substitute “the charge to tax under section 934 is a charge”. (5) In section 962 (income from which basic amounts are treated as paid)— (a) in subsection (3) (as amended by paragraph 9(a)), at the end insert “(subject to subsection (3A))”; (b) after that subsection insert— (3A) For the purposes of assumption B, where those parts include— (a) income bearing income tax at 0% by virtue of section 963(1A), and (b) other income bearing income tax at 0%, payments are to be made from income within paragraph (a) after income within paragraph (b). (6) In section 962A (income from which sums within section 951(1)(b) are treated as paid) (inserted by paragraph 7(3))— (a) in subsection (3), at the end insert “(subject to subsection (3A))”; (b) after that subsection insert— (3A) For the purposes of assumption B, where that income includes— (a) income bearing income tax at 0% by virtue of section 963(1A), and (b) other income bearing income tax at 0%, sums are to be paid from income within paragraph (a) after income within paragraph (b). (7) In section 963 (income treated as bearing income tax)— (a) after subsection (1) insert— (1A) If, in the case of a UK estate, the aggregate income of the estate for a tax year is equal to or less than the de minimis estates amount (within the meaning of section 24B of ITA 2007), the aggregate income of the estate for that tax year is treated as bearing income tax at 0%. ; (b) for subsection (2) substitute— (2) If— (a) subsection (1A) does not apply to treat the aggregate income of the estate for a tax year as bearing income tax at 0%, and (b) the aggregate income of the estate for that tax year includes a sum within subsection (3), (3A) or (4), the sum is treated as bearing income tax at the rate specified for it in that subsection. ; (c) in subsection (5), after “sums within this section” insert “or from aggregate income treated as bearing income tax at 0% by virtue of subsection (1A) ”. Part 3 Rate of tax charged on trustees’ first slice of trust rate income: income tax 13 (1) ITA 2007 is amended as follows. (2) Omit Chapter 6 of Part 9 (trustees’ first slice of trust rate income). (3) In consequence of the amendment made by sub-paragraph (2)— (a) in section 2(9)(b) (overview of Act), for “4, 5 and 6” substitute “4 and 5”; (b) in section 11(2) (income charged at the default basic rate: non- individuals), for “6” substitute “5”; (c) in section 14(2) (income charged at the dividend ordinary rate: other persons), for “6” substitute “5”; (d) in section 15 (income charged at the trust rate and the dividend trust rate), for “6” substitute “5”; (e) in section 16(2) (savings and dividend income to be treated as highest part of total income) omit paragraph (a) (and the “and” after it); (f) in section 23 (the calculation of income tax liability), in Step 4, for “6” substitute “5”; (g) in section 462 (overview of Part 9) omit subsection (6); (h) in section 484 (trustees’ expenses to be set against trustees’ trust rate income) omit subsection (3); (i) in section 498 (types of income tax for the purposes of section 497) omit Type 4. Part 4 Commencement 14 (1) The amendments made by this Schedule have effect as follows. (2) In Part 1— (a) the amendments made by Chapter 1 have effect in relation to the tax year 2023-24 and subsequent tax years; (b) the amendments made by Chapter 2 have effect in relation to accounting periods beginning on or after 1 April 2023. (3) In Part 2— (a) the amendments made by Chapter 1 have effect in relation to the tax year 2024-25 and subsequent tax years; (b) the amendments made by Chapter 2 have effect in relation to accounting periods beginning on or after 1 April 2024; (4) The amendments made by Part 3 have effect in relation to the tax year 2024-25 and subsequent tax years.
Propose a change