(1) Section 45 of FA 2003 (contract and conveyance: effect of transfer of rights)—
(a) has effect subject to the amendment in subsection (2) below in relation to agreements for the grant or assignment of an option that are entered into during the period beginning with 21 March 2012 and ending immediately before the day on which this Act is passed, and
(b) has effect subject to the amendments in subsections (3) to (7) below in relation to transfers of rights (see subsection (1) of that section) entered into during that period.
(2) At the end of subsection (1A) insert “ or an agreement for the future grant or assignment of an option ”.
(3) In subsection (3), in the second sentence, after “except” insert “ in a case excluded by subsection (3A) or ”.
(4) After subsection (3) insert—
(3A) A case is excluded by this subsection from the second sentence of subsection (3) if—
(a) the secondary contract is substantially performed at the same time as, and in connection with, the substantial performance or completion of the original contract but is not completed at that time (“the relevant time”),
(b) the original purchaser or a person connected with the original purchaser is in possession of the whole, or substantially the whole, of the subject-matter of the transfer of rights at any time after the relevant time, and
(c) having regard to all the circumstances, it would be reasonable to conclude that the obtaining of a tax advantage for the original purchaser was the main purpose, or one of the main purposes, of the original purchaser in entering into the transfer of rights.
(3B) In subsection (3A)—
“possession” has the same meaning as in section 44(5)(a);
“tax advantage” means—
a relief from tax or increased relief from tax,
a repayment of tax or increased repayment of tax, or
the avoidance or reduction of a charge to tax.
(3C) Nothing in subsection (3A) or (3B) affects the breadth of the application of sections 75A to 75C.
(5) In subsection (4), at the end insert “ except in a case excluded by subsection (4A) ”.
(6) After subsection (4) insert—
(4A) Subsection (3A) applies for the purposes of subsection (4) as if—
(a) the reference to subsection (3) were a reference to subsection (4),
(b) a reference to the original contract were a reference to the secondary contract arising from the earlier transfer of rights,
(c) a reference to the original purchaser were a reference to the transferee under the earlier transfer of rights, and
(d) a reference to the transfer of rights were a reference to the subsequent transfer of rights.
(7) In subsection (5)(b)—
(a) after “subsection (3) above” insert “ or in subsection (3A) above ”, and
(b) after “subsection (4)” insert “ or (4A) ”.
(8) Subsections (10) to (12) apply where—
(a) as a result of subsection (2) of this section, section 45 of FA 2003 does not apply in relation to a contract of the kind mentioned in subsection (1)(a) of that section (“the original contract”),
(b) the original contract was substantially performed or completed (or, in a case that would have fallen within subsection (5) of that section, substantially performed or completed so far as relating to the relevant part of the subject-matter of the original contract) at the same time as, and in connection with, the substantial performance or completion of an agreement for the grant or assignment of an option, and
(c) that time fell before the day on which this Act is passed.
(9) Subsections (10) to (12) also apply where—
(a) section 45 of FA 2003 applies in relation to the contract for a land transaction (“the original contract”),
(b) as a result of subsections (1) to (7) above, the substantial performance or completion of the original contract (or, in a case within subsection (5) of that section, its substantial performance or completion so far as relating to part of the subject-matter of the original contract) is not disregarded, and
(c) the relevant time referred to in subsection (3A)(a) of that section fell before the day on which this Act is passed.
(10) Section 76 of FA 2003 (duty to deliver land transaction return) is to be regarded as requiring the purchaser under the original contract to deliver a land transaction return relating to the land transaction not later than 30 September 2013.
(11) Accordingly, 30 September 2013 is for the purposes of Part 4 of FA 2003 the filing date for the land transaction return relating to the transaction.
(12) If the purchaser under the original contract (“P”) has delivered a land transaction return relating to the land transaction before the day on which this Act is passed, P must not later than 30 September 2013 give notice under paragraph 6 of Schedule 10 to FA 2003 amending the return, but this does not prevent P from making subsequent amendments within the time allowed by sub-paragraph (3) of that paragraph.
(1) Section 42 of FA 1996 (amount of landfill tax) is amended as follows.
(2) In subsection (1)(a) (standard rate), for “£72” substitute “ £80 ”.
(3) In subsection (2) (reduced rate) for “£72” substitute “ £80 ”.
(4) The amendments made by this section have effect in relation to disposals made (or treated as made) on or after 1 April 2014.
(1) In paragraph 42(1) of Schedule 6 to FA 2000 (climate change levy: amount payable by way of levy) for the table substitute—
TABLE
Taxable commodity supplied | Rate at which levy payable if supply is not a reduced-rate supply or a supply for use in scrap metal recycling
Electricity | £0.00541 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 | £0.00188 per kilowatt hour
Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state | £0.01210 per kilogram
Any other taxable commodity | £0.01476 per kilogram
.
(2) The amendment made by subsection (1) has effect in relation to supplies treated as taking place on or after 1 April 2014.
(1) In Schedule 7A to FA 1994 (IPT: contracts that are not taxable), paragraph 3 (contracts relating to motor vehicles for use by handicapped persons) is amended as follows.
(2) In sub-paragraph (2)(a)—
(a) after “disability living allowance” insert “ , or personal independence payment, ” and
(b) after “component” insert “ , or of an armed forces independence payment ”.
(3) In sub-paragraph (3), after “disability living allowance” insert “ , personal independence payment, armed forces independence payment ”.
(4) After sub-paragraph (4)(b) insert—
(ba) personal independence payment” means a personal independence payment under Part 4 of the Welfare Reform Act 2012 or the corresponding provision having effect in Northern Ireland;
(bb) “armed forces independence payment” means an armed forces independence payment under a scheme established under section 1 of the Armed Forces (Pensions and Contributions) Act 2004;
.
(5) The amendments made by this section are treated as having come into force on 8 April 2013.
(1) Schedule 19 to FA 2011 (bank levy) is amended as follows.
(2) In paragraph 6 (steps for determining the amount of the bank levy), in sub-paragraph (2)—
(a) for “0.044%” substitute “ 0.065% ”, and
(b) for “0.088%” substitute “ 0.130% ”.
(3) In paragraph 7 (special provision for chargeable periods falling wholly or partly before 1 January 2013), in sub-paragraph (2) (as substituted by paragraph 6 of Schedule 34 to FA 2012), in the table in the substituted Step 7—
(a) in the second column for “0.0525%” substitute “ 0.065% ”, and
(b) in the third column for “0.105%” substitute “ 0.130% ”.
(4) In Schedule 34 to FA 2012 (bank levy)—
(a) omit paragraph 5 (which substituted new rates from 1 January 2013), and
(b) in paragraph 7 for “paragraphs 5 and” substitute “ paragraph ”.
(5) The amendments made by subsections (2) to (4) are treated as having come into force on 1 January 2013 (and accordingly the paragraph repealed by subsection (4) is treated as never having come into force).
(6) Subsections (7) to (13) apply where—
(a) an amount of the bank levy is treated as if it were an amount of corporation tax chargeable on an entity (“E”) for an accounting period of E,
(b) the chargeable period in respect of which the amount of the bank levy is charged falls (or partly falls) on or after 1 January 2013, and
(c) under the Instalment Payment Regulations, one or more instalment payments, in respect of the total liability of E for the accounting period, were treated as becoming due and payable before the commencement date (“pre-commencement instalment payments”).
(7) Subsections (1) to (5) are to be ignored for the purpose of determining the amount of any pre-commencement instalment payment.
(8) If there is at least one instalment payment, in respect of the total liability of E for the accounting period, which under the Instalment Payment Regulations is treated as becoming due and payable on or after the commencement date (“post-commencement instalment payments”), the amount of that instalment payment, or the first of them, is to be increased by the adjustment amount.
(9) If there are no post-commencement instalment payments, a further instalment payment, in respect of the total liability of E for the accounting period, of an amount equal to the adjustment amount is to be treated as becoming due and payable at the end of the period of 30 days beginning with the commencement date.
(10) “The adjustment amount” is the difference between—
(a) the aggregate amount of the pre-commencement instalments determined in accordance with subsection (7), and
(b) the aggregate amount of those instalment payments determined ignoring subsection (7) (and so taking account of subsections (1) to (5)).
(11) In the Instalment Payment Regulations—
(a) in regulations 6(1)(a), 7(2), 8(1)(a) and (2)(a), 9(5), 10(1), 11(1) and 13, references to regulation 4A, 4B, 4C, 4D, 5, 5A or 5B of those Regulations are to be read as including a reference to subsections (6) to (10) (and in regulation 7(2) “the regulation in question”, and in regulation 8(2) “that regulation”, are to be read accordingly), and
(b) in regulation 9(3), the reference to those Regulations is to be read as including a reference to subsections (6) to (10).
(12) In section 59D of TMA 1970 (general rule as to when corporation tax is due and payable), in subsection (5), the reference to section 59E is to be read as including a reference to subsections (6) to (11).
(13) In this section—
“the chargeable period” is to be construed in accordance with paragraph 4 or (as the case may be) 5 of Schedule 19 to FA 2011;
“the commencement date” means the day on which this Act is passed;
“the Instalment Payment Regulations” means the Corporation Tax (Instalment Payments) Regulations 1998 (S.I. 1998/3175);
and references to the total liability of E for an accounting period are to be construed in accordance with regulation 2(3) of the Instalment Payment Regulations.
(1) Schedule 19 to FA 2011 (the bank levy) is amended as follows.
(2) In paragraph 46 (bank levy to be ignored for purposes of corporation tax and income tax), in paragraph (b), after “paid” insert “ (directly or indirectly) ”.
(3) In Part 7 (double taxation relief), after paragraph 69 insert—
Foreign levies to be ignored for purposes of income tax or corporation tax
69A (1) In calculating profits or losses for the purposes of income tax or corporation tax—
(a) no deduction is allowed in respect of any tax which is imposed by the law of a territory outside the United Kingdom and corresponds to the bank levy, and
(b) no account is to be taken of any amount which is paid (directly or indirectly) by a member of a group to another member for the purposes of meeting or reimbursing the cost of such a tax charged in relation to the group.
(2) Paragraph 66(3) applies for the purposes of sub-paragraph (1) as it applies for the purposes of paragraph 66(2).
(4) Accordingly—
(a) in paragraph 3, after “double taxation relief” insert “ and with the deduction of foreign levies for the purposes of corporation tax and income tax ”, and
(b) in the heading for Part 7, after “RELIEF” insert “ ETC ”
(5) The amendments made by this section have effect in relation to any period of account beginning on or after 1 January 2013.
(6) The amendments made by subsections (3) and (4) also have effect in relation to any period of account beginning before that date, but only if, and to the extent that, the tax is the subject of a claim for relief under paragraph 66 or 67 of Schedule 19 to FA 2011 (bank levy: double taxation relief) made on or after 5 December 2012.
(7) For the purposes of subsections (5) and (6), a period of account beginning before, and ending on or after 1 January 2013 is to be treated as if so much of the period as falls before that date, and so much of the period as falls on or after that date, were separate periods of account.
(1) In paragraph 70 of Schedule 19 to FA 2011 (bank levy: definitions), in sub-paragraph (1), in the definition of “high quality liquid asset” for “section 12.7.2(1) to (4)” substitute “section 12.7 (assets that are eligible for inclusion in a firm's regulatory liquid assets buffer)'.
(2) The amendment made by this section has effect in relation to chargeable periods ending on or after 1 January 2011, and in relation to those chargeable periods the amendment is to be treated as always having had effect.
(1) This Part has effect for the purpose of counteracting tax advantages arising from tax arrangements that are abusive.
(2) The rules of this Part are collectively to be known as “the general anti-abuse rule”.
(3) The general anti-abuse rule applies to the following taxes—
(a) income tax,
(b) corporation tax, including any amount chargeable as if it were corporation tax or treated as if it were corporation tax,
(c) capital gains tax,
(d) petroleum revenue tax,
(da) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(db) apprenticeship levy,
(e) inheritance tax,
(f) stamp duty land tax, and
(g) annual tax on enveloped dwellings.
(h) multinational top-up tax.
(i) domestic top-up tax.
(1) Arrangements are “tax arrangements” if, having regard to all the circumstances, it would be reasonable to conclude that the obtaining of a tax advantage was the main purpose, or one of the main purposes, of the arrangements.
(2) Tax arrangements are “abusive” if they are arrangements the entering into or carrying out of which cannot reasonably be regarded as a reasonable course of action in relation to the relevant tax provisions, having regard to all the circumstances including—
(a) whether the substantive results of the arrangements are consistent with any principles on which those provisions are based (whether express or implied) and the policy objectives of those provisions,
(b) whether the means of achieving those results involves one or more contrived or abnormal steps, and
(c) whether the arrangements are intended to exploit any shortcomings in those provisions.
(3) Where the tax arrangements form part of any other arrangements regard must also be had to those other arrangements.
(4) Each of the following is an example of something which might indicate that tax arrangements are abusive—
(a) the arrangements result in an amount of income, profits or gains for tax purposes that is significantly less than the amount for economic purposes,
(b) the arrangements result in deductions or losses of an amount for tax purposes that is significantly greater than the amount for economic purposes, and
(c) the arrangements result in a claim for the repayment or crediting of tax (including foreign tax) that has not been, and is unlikely to be, paid,
but in each case only if it is reasonable to assume that such a result was not the anticipated result when the relevant tax provisions were enacted.
(5) The fact that tax arrangements accord with established practice, and HMRC had, at the time the arrangements were entered into, indicated its acceptance of that practice, is an example of something which might indicate that the arrangements are not abusive.
(6) The examples given in subsections (4) and (5) are not exhaustive.
A “tax advantage” includes—
(a) relief or increased relief from tax,
(b) repayment or increased repayment of tax,
(c) avoidance or reduction of a charge to tax or an assessment to tax,
(d) avoidance of a possible assessment to tax,
(e) deferral of a payment of tax or advancement of a repayment of tax, and
(f) avoidance of an obligation to deduct or account for tax.
(1) If there are tax arrangements that are abusive, the tax advantages that would (ignoring this Part) arise from the arrangements are to be counteracted by the making of adjustments.
(2) The adjustments required to be made to counteract the tax advantages are such as are just and reasonable.
(3) The adjustments may be made in respect of the tax in question or any other tax to which the general anti-abuse rule applies.
(4) The adjustments that may be made include those that impose or increase a liability to tax in any case where (ignoring this Part) there would be no liability or a smaller liability, and tax is to be charged in accordance with any such adjustment.
(5) Any adjustments required to be made under this section (whether by an officer of Revenue and Customs or anyone else) may be made by way of an assessment, the modification of an assessment, amendment or disallowance of a claim, or otherwise.
(6) But—
(a) the effect of adjustments made by an officer of Revenue and Customs by virtue of this section is suspended until the procedural requirements of Schedule 43, 43A or 43B have been complied with, and
(b) the power to make adjustments by virtue of this section is subject to any time limit imposed by or under any enactment other than this Part.
The provision made by this subsection needs to be read with sections 209AA to 209AC and has no effect on adjustments so far as made otherwise than by virtue of this section.
(6A) The procedural requirements mentioned in subsection (6)(a) include any procedural requirements which apply under or by virtue of Schedule 43D (which makes provision in relation to partnerships).
(7) Any adjustments made under this section have effect for all purposes.
(8) Where a matter is referred to the GAAR Advisory Panel under paragraph 5 or 6 of Schedule 43 in relation to any tax arrangements, no GAAR-related adjustments may be made in the period (“the closed period”) that—
(a) begins with the 31st day after the end of the 45 day period mentioned in paragraph 4(1) of Schedule 43, and
(b) ends immediately before the day on which the notice under paragraph 12 of Schedule 43 is given in relation to the tax arrangements.
(9) Where a pooling notice or notice of binding has been given in relation to any tax arrangements, no GAAR-related adjustments may be made in the period (“the closed period”) that—
(a) begins with the 31st day after the day on which the notice is given, and
(b) ends immediately before the day on which a notice under paragraph 8(2) or 9(2) of Schedule 43A, or a notice under paragraph 8(2) of Schedule 43B, is given in relation to the tax arrangements (as the case may be).
(10) In this section “GAAR-related adjustments” means—
(a) for the purposes of subsection (8), adjustments which give effect (wholly or in part) to the proposed counteraction set out in the notice under paragraph 3 of Schedule 43 or paragraph 5 of Schedule 43D.;
(b) for the purposes of subsection (9), adjustments which give effect (wholly or partly) to the proposed counteraction set out in the notice of pooling or binding (as the case may be).
(1) An officer of Revenue and Customs may give a written notice (a “protective GAAR notice”) to a person stating that the officer considers—
(a) that a tax advantage might have arisen to the person from tax arrangements that are abusive, and
(b) that, on the assumption that the advantage does arise from tax arrangements that are abusive, it ought to be counteracted under section 209.
(2) The protective GAAR notice must be given within the ordinary assessing time limit applicable to the proposed adjustments.
(3) But if—
(a) a tax enquiry is in progress into a return made by the person, and
(b) the return relates to the tax in respect of which the specified adjustments under the protective GAAR notice are made,
the protective GAAR notice must instead be given no later than the time when the enquiry is completed.
(4) The protective GAAR notice must—
(a) specify the arrangements and the tax advantage, and
(b) specify the adjustments that, on the assumption that the advantage does arise from tax arrangements that are abusive, the officer proposes ought to be made.
(5) The adjustments specified in the protective GAAR notice have effect as if they are made by virtue of section 209.
(6) Notice of appeal may be given against the adjustments specified in the protective GAAR notice (whether or not the adjustments are also made otherwise than by virtue of section 209).
(7) Any appeal against the specified adjustments (whether made by virtue of section 209 or otherwise) is, as a result of this subsection, stayed—
(a) for a period of 12 months beginning with the day on which the protective GAAR notice is given, or
(b) if a final GAAR counteraction notice is given before the end of that period, for a period ending with the day on which the final GAAR counteraction notice is given.
(8) If, in the case of the specified adjustments (whether made by virtue of section 209 or otherwise)—
(a) notice of appeal is not given or notice of appeal is given but the appeal is subsequently withdrawn or determined by agreement, and
(b) no final GAAR counteraction notice is given,
the protective GAAR notice has effect for all purposes (other than the purposes of section 212A) as if it had been given as a final GAAR counteraction notice (and, accordingly, as if the GAAR procedural requirements had been complied with).
(9) In any case not falling within subsection (8)—
(a) the specified adjustments have no effect (so far as they are made by virtue of section 209) unless they (or lesser adjustments) are subsequently specified in a final GAAR counteraction notice, but
(b) the giving of the protective GAAR notice is treated as meeting the requirements of section 209(6)(b) in the case of that final GAAR counteraction notice.
209AB Adjustments under section 209: notices under Schedule 43 or 43A
(1) This section applies in the case of any particular adjustments in respect of a particular period or matter (“the adjustments concerned”) if—
(a) a person is given a notice under paragraph 3 of Schedule 43 or a pooling notice or notice of binding under Schedule 43A (“the Schedule 43 or 43A notice”) that specifies the adjustments concerned (whether or not other adjustments are specified),
(b) the Schedule 43 or 43A notice is given within the relevant time limit applicable to the adjustments concerned, and
(c) the adjustments concerned have not been specified in a provisional counteraction notice under section 209A, or a protective GAAR notice under section 209AA, given before the time at which the Schedule 43 or 43A notice is given.
(2) The Schedule 43 or 43A notice is given within the relevant time limit if—
(a) it is given within the ordinary assessing time limit applicable to the adjustments concerned, or
(b) if a tax enquiry is in progress into a return made by the person and the particular adjustments concerned relate to the matters contained in the return, it is given no later than the time when the enquiry is completed.
(3) The adjustments concerned have effect as if they are made by virtue of section 209.
(4) If, in the case of the specified adjustments (whether made by virtue of section 209 or otherwise)—
(a) notice of appeal is not given or notice of appeal is given but the appeal is subsequently withdrawn or determined by agreement, and
(b) no final GAAR counteraction notice is given,
the Schedule 43 or 43A notice has effect for all purposes (other than the purposes of section 212A) as if it had been given as a final GAAR counteraction notice (and, accordingly, as if the GAAR procedural requirements had been complied with).
(5) In any case not falling within subsection (4)—
(a) the adjustments concerned have no effect (so far as they are made by virtue of section 209) unless they (or lesser adjustments) are subsequently specified in a final GAAR counteraction notice, but
(b) the giving of the Schedule 43 or 43A notice is treated as meeting the requirements of section 209(6)(b) in the case of that final GAAR counteraction notice.
209ABA Adjustments under section 209: notices under Schedule 43D
(1) This section applies in the case of any particular adjustments in respect of a particular period or matter (“the adjustments concerned”) if, in relation to a partnership—
(a) the responsible partner is given a notice under paragraph 5 or 10 of Schedule 43D (“the Schedule 43D notice”) that specifies the adjustments concerned (whether or not other adjustments are specified),
(b) the Schedule 43D notice is given within the relevant time limit applicable to the adjustments concerned, and
(c) the adjustments concerned have not been specified in a protective GAAR notice given before the time at which the Schedule 43D notice is given.
(2) The Schedule 43D notice is given within the relevant time limit if—
(a) it is given within the ordinary assessing time limit applicable to the adjustments concerned, or
(b) in a case where a tax enquiry is in progress into a partnership return made by the responsible partner and the particular adjustments concerned relate to the matters contained in the return, it is given no later than the time when the enquiry is completed.
(3) The adjustments concerned have effect as if they are made by virtue of section 209.
(4) If, in the case of the specified adjustments (whether made by virtue of section 209 or otherwise)—
(a) notice of appeal is not given or notice of appeal is given but the appeal is subsequently withdrawn or determined by agreement, and
(b) no final GAAR counteraction notice is given,
the Schedule 43D notice has effect for all purposes (other than the purposes of section 212B) as if it had been given as a final GAAR counteraction notice (and, accordingly, as if the GAAR procedural requirements had been complied with).
(5) In any case not falling within subsection (4)—
(a) the adjustments concerned have no effect (so far as they are made by virtue of section 209) unless they (or lesser adjustments) are subsequently specified in a final GAAR counteraction notice, but
(b) the giving of the Schedule 43D notice is treated as meeting the requirements of section 209(6)(b) in the case of that final GAAR counteraction notice.
(6) In subsection (1) “protective GAAR notice” means a protective GAAR notice given under section 209AA or paragraph 4 of Schedule 43D.
(7) In this section “the responsible partner” and “partnership return” have the same meaning as in Schedule 43D.
(1) In sections 209AA to 209ABA—
“final GAAR counteraction notice” means a notice given under—
paragraph 12 of Schedule 43,
paragraph 8 or 9 of Schedule 43A, or
paragraph 8 of Schedule 43B,
“GAAR procedural requirements” means the procedural requirements of Schedule 43, 43A , 43B, or (as the case may be) 43D,
“lesser adjustments” means adjustments specified in the final GAAR counteraction notice which assume a smaller tax advantage than was assumed in the protective GAAR notice or (as the case may be) the Schedule 43 or 43A notice (within the meaning of section 209AB) or the Schedule 43D notice (within the meaning of section 209ABA), and
“ordinary assessing time limit”, in relation to any adjustments, means the time limit imposed by or under any enactment other than this Part for the making of the adjustments.
(2) Expressions which are used in section 202 of FA 2014 (“tax enquiry”, and its being “in progress”, and “return”) have the same meaning in sections 209AA to 209ABA as they have in that section (and references to completing a tax enquiry are to be read accordingly).
(1) This section applies where—
(a) the counteraction of a tax advantage under section 209 is final, and
(b) if the case is not one in which notice of the counteraction was given under paragraph 12 of Schedule 43, paragraph 8 or 9 of Schedule 43A or paragraph 8 of Schedule 43B, HMRC have been notified of the counteraction ....
(2) A person has 12 months, beginning with the day on which the counteraction becomes final, to make a claim for one or more consequential adjustments to be made in respect of any tax to which the general anti-abuse rule applies.
(3) On a claim under this section, an officer of Revenue and Customs must make such of the consequential adjustments claimed (if any) as are just and reasonable.
(4) Consequential adjustments—
(a) may be made in respect of any period, and
(b) may affect any person (whether or not a party to the tax arrangements).
(5) But nothing in this section requires or permits an officer to make a consequential adjustment the effect of which is to increase a person's liability to any tax.
(6) For the purposes of this section—
(a) if the claim relates to income tax or capital gains tax, Schedule 1A to TMA 1970 applies to it;
(b) if the claim relates to corporation tax, Schedule 1A to TMA 1970 (and not Schedule 18 to FA 1998) applies to it;
(c) if the claim relates to petroleum revenue tax, Schedule 1A to TMA 1970 applies to it, but as if the reference in paragraph 2A(4) of that Schedule to a year of assessment included a reference to a chargeable period within the meaning of OTA 1975 (see section 1(3) and (4) of that Act);
(d) if the claim relates to inheritance tax it must be made in writing to HMRC and section 221 of IHTA 1984 applies as if the claim were a claim under that Act;
(e) if the claim relates to stamp duty land tax or annual tax on enveloped dwellings, Schedule 11A to FA 2003 applies to it as if it were a claim to which paragraph 1 of that Schedule applies.
(7) Where an officer of Revenue and Customs makes a consequential adjustment under this section, the officer must give the person who made the claim written notice describing the adjustment which has been made.
(8) For the purposes of this section the counteraction of a tax advantage is final when the adjustments made to effect the counteraction, and any amounts arising as a result of those adjustments, can no longer be varied, on appeal or otherwise.
(9) Any adjustments required to be made under this section may be made—
(a) by way of an assessment, the modification of an assessment, the amendment of a claim, or otherwise, and
(b) despite any time limit imposed by or under any enactment other than this Part.
(10) For the purposes of subsection (1)(b), HMRC must be notified—
(a) in a case where Schedule 43D applies, by the responsible partner (within the meaning of that Schedule), and
(b) in any other case, by the person to whom the tax advantage would have arisen.
(1) In proceedings before a court or tribunal in connection with the general anti-abuse rule, HMRC must show—
(a) that there are tax arrangements that are abusive, and
(b) that the adjustments made to counteract the tax advantages arising from the arrangements are just and reasonable.
(2) In determining any issue in connection with the general anti-abuse rule, a court or tribunal must take into account—
(a) HMRC's guidance about the general anti-abuse rule that was approved by the GAAR Advisory Panel at the time the tax arrangements were entered into, and
(b) any opinion of the GAAR Advisory Panel given—
(i) under paragraph 11 of Schedule 43 about the arrangements or any tax arrangements which are, as a result of a notice under paragraph 1 or 2 of Schedule 43A, the referred or (as the case may be) counteracted arrangements in relation to the arrangements, or
(ii) under paragraph 6 of Schedule 43B in respect of a generic referral of the arrangements.
(3) In determining any issue in connection with the general anti-abuse rule, a court or tribunal may take into account—
(a) guidance, statements or other material (whether of HMRC, a Minister of the Crown or anyone else) that was in the public domain at the time the arrangements were entered into, and
(b) evidence of established practice at that time.
212 Relationship between the GAAR and priority rules
(1) Any priority rule has effect subject to the general anti-abuse rule (despite the terms of the priority rule).
(2) A “priority rule” means a rule (however expressed) to the effect that particular provisions have effect to the exclusion of, or otherwise in priority to, anything else.
(3) Examples of priority rules are—
(a) the rule in section 464, 699 or 906 of CTA 2009 (priority of loan relationships rules, derivative contracts rules and intangible fixed assets rules for corporation tax purposes), and
(b) the rule in section 6(1) of TIOPA 2010 (effect to be given to double taxation arrangements despite anything in any enactment).
(1) A person (P) is liable to pay a penalty if—
(a) P has been given a notice under—
(i) paragraph 12 of Schedule 43,
(ii) paragraph 8 or 9 of Schedule 43A, or
(iii) paragraph 8 of Schedule 43B,
stating that a tax advantage arising from particular tax arrangements is to be counteracted,
(b) a tax document has been given to HMRC on the basis that the tax advantage arises to P from those arrangements,
(c) that document was given to HMRC—
(i) by P, or
(ii) by another person in circumstances where P knew, or ought to have known, that the other person gave the document on the basis mentioned in paragraph (b), and
(d) the tax advantage has been counteracted by the making of adjustments under section 209.
(2) The penalty is 60% of the value of the counteracted advantage.
(3) Schedule 43C—
(a) gives the meaning of “the value of the counteracted advantage”, and
(b) makes other provision in relation to penalties under this section.
(4) In this section “tax document” means any return, claim or other document submitted in compliance (or purported compliance) with any provision of, or made under, an Act.
(5) In this section the reference to giving a tax document to HMRC is to be interpreted in accordance with paragraph 11(g) and (h) of Schedule 43C.
(1) This section applies if, in respect of a partnership—
(a) the responsible partner has been given a notice under—
(i) paragraph 12 of Schedule 43,
(ii) paragraph 8 or 9 of Schedule 43A, or
(iii) paragraph 8 of Schedule 43B,
stating that a tax advantage is to be counteracted, and
(b) the tax advantage, so far as arising to a partner (P) in the partnership, has been counteracted by the making of adjustments under section 209.
(2) P is liable to pay a penalty of an amount equal to 60% of the value of the counteracted tax advantage.
(3) Schedule 43C—
(a) gives the meaning of “the value of the counteracted tax advantage”, and
(b) makes other provision in relation to penalties under this section.
(4) For the meaning of “the responsible partner” see paragraph 2 of Schedule 43D.
(1) Section 42 of TMA 1970 (procedure for making claims etc) is amended as follows.
(2) In subsection (2), for “(3ZB)” substitute “ (3ZC) ”.
(3) After subsection (3ZB) insert—
(3ZC) Subsection (2) also does not apply in relation to any claim under section 210 of the Finance Act 2013 (claims for consequential relieving adjustments after counteraction of tax advantage under the general anti-abuse rule).
(1) In this Part—
“abusive”, in relation to tax arrangements, has the meaning given by section 207(2) to (6);
“arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable);
“the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs;
“designated HMRC officer” has the meaning given by paragraph 2 of Schedule 43;”.
“the GAAR Advisory Panel” has the meaning given by paragraph 1 of Schedule 43;
“the general anti-abuse rule” has the meaning given by section 206;
“HMRC” means Her Majesty's Revenue and Customs;
“notice of binding” has the meaning given by paragraph 2(2) of Schedule 43A or paragraph 10 of Schedule 43D (as the case may be);
...
“pooling notice” has the meaning given by paragraph 1(3) of Schedule 43A or paragraph 10 of Schedule 43D (as the case may be);
...
“tax advantage” has the meaning given by section 208;
...
“tax arrangements” has the meaning given by section 207(1).
“tax enquiry” has the meaning given by section 202(2) of FA 2014.
(2) In this Part references to any “opinion of the GAAR Advisory Panel” about any tax arrangements are to be interpreted in accordance with paragraph 11(5) of Schedule 43.
(3) In this Part references to tax arrangements which are “equivalent” to one another are to be interpreted in accordance with paragraph 11 of Schedule 43A.
(1) The general anti-abuse rule has effect in relation to any tax arrangements entered into on or after the day on which this Act is passed.
(2) Where the tax arrangements form part of any other arrangements entered into before that day those other arrangements are to be ignored for the purposes of section 207(3), subject to subsection (3).
(3) Account is to be taken of those other arrangements for the purposes of section 207(3) if, as a result, the tax arrangements would not be abusive.
(1) The Treasury may by regulations make provision about the treatment of the trustees or unit holders of unauthorised unit trusts for the purposes of income tax, corporation tax, capital gains tax or stamp duty land tax.
(2) Regulations under this section may—
(a) confer or impose powers or duties on officers of Revenue and Customs or other persons;
(b) modify any enactment or instrument (whenever passed or made);
(c) specify descriptions of unauthorised unit trust in relation to which the regulations are to apply or are not to apply;
(d) make different provision for different cases or different purposes;
(e) make incidental, consequential, supplementary and transitional provision and savings.
In paragraph (b) “modify” includes amend, repeal or revoke.
(3) The statutory instrument containing the first regulations under this section may not be made unless a draft has been laid before and approved by a resolution of the House of Commons.
(4) A subsequent statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.
(5) In this section—
(a) “unauthorised unit trust” means a unit trust scheme which is neither an authorised unit trust nor an umbrella scheme,
(b) “unit trust scheme” has the meaning given by section 237 of the Financial Services and Markets Act 2000, and
(c) “authorised unit trust”, “umbrella scheme” and “unit holder” have the same meaning as in Chapter 2 of Part 13 of CTA 2010 (authorised investment funds).
(1) Schedule 45 contains—
(a) provision for determining whether individuals are resident in the United Kingdom for the purposes of income tax, capital gains tax and (where relevant) inheritance tax and corporation tax,
(b) provision about split years, and
(c) provision about periods when individuals are temporarily non-resident.
(2) The Treasury may by order make any incidental, supplemental, consequential, transitional or saving provision in consequence of Schedule 45.
(3) An order under subsection (2) may—
(a) make different provision for different purposes, and
(b) make provision amending, repealing or revoking any provision made by or under an Act (whenever passed or made).
(4) An order under subsection (2) is to be made by statutory instrument.
(5) A statutory instrument containing an order under subsection (2) is subject to annulment in pursuance of a resolution of the House of Commons.
(1) Schedule 46 contains provision removing or replacing rules relating to ordinary residence.
(2) The Treasury may by order make further provision removing or replacing rules relating to ordinary residence with respect to—
(a) income tax,
(b) capital gains tax, and
(c) (so far as the ordinary residence status of individuals is relevant to them) inheritance tax and corporation tax.
(3) An order under subsection (2) may take effect from the start of the tax year in which the order is made.
(4) The Treasury may by order make any incidental, supplemental, consequential, transitional or saving provision in consequence of Schedule 46 or in consequence of any further provision made under subsection (2).
(5) An order under this section may—
(a) make different provision for different purposes, and
(b) make provision amending, repealing or revoking any provision made by or under an Act (whenever passed or made).
(6) An order under this section is to be made by statutory instrument.
(7) A statutory instrument containing an order under subsection (2) (whether alone or with other provisions) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons.
(8) Subject to subsection (7), a statutory instrument containing an order under this section is subject to annulment in pursuance of a resolution of the House of Commons.
(1) In Schedule 36 to FA 2012 (agreement between UK and Switzerland), after paragraph 26 insert—
Transfers to HMRC under Agreement
26A (1) Income or chargeable gains of a person are to be treated as not remitted to the United Kingdom if conditions A to D are met.
(2) Condition A is that (but for sub-paragraph (1)) the income or gains would be regarded as remitted to the United Kingdom by virtue of the bringing of money to the United Kingdom.
(3) Condition B is that the money is brought to the United Kingdom pursuant to a transfer made to HMRC in accordance with the Agreement.
(4) Condition C (which applies only if the money brought to the United Kingdom is a sum levied under Article 19(2)(b)) is that the sum was levied within the period of 45 days beginning with the day on which the amount derived from the income or gain in question was remitted as mentioned in Article 19(2)(b).
(5) Condition D is that the transfer is made in relation to a tax year in which section 809B, 809D or 809E of ITA 2007 (application of remittance basis) applies to the person.
(6) Sub-paragraph (1) does not apply in relation to money brought to the United Kingdom if or to the extent that—
(a) paragraph 18(2), or section 138(4)(a) or 140(5)(a) of TIOPA 2010, is applied in relation to it (set-off against other tax liabilities), or
(b) it is repaid or refunded by HMRC.
26B (1) This paragraph applies if—
(a) but for paragraph 26A(1), income or chargeable gains would have been regarded as remitted to the United Kingdom by virtue of the bringing of money to the United Kingdom, and
(b) section 809Q of ITA 2007 (transfers from mixed funds) would have applied in determining the amount that would have been so remitted.
(2) The bringing of the money to the United Kingdom counts as an offshore transfer for the purposes of section 809R(4) of ITA 2007 (composition of mixed fund).
(2) The amendment made by this section is to be treated as having come into force on 1 January 2013.