Law

Finance Act 2008

United Kingdom · statute

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In force since 2026-04-01, 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.

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Contents: 215 provisions

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215 provisions

112 Ring fence trade: no deduction for expenses of investment management

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113 Information and inspection powers

(1) Schedule 36 contains provision about the powers of officers of Revenue and Customs to obtain information and to inspect businesses. (2) That Schedule comes into force on such day as the Treasury may by order made by statutory instrument appoint. (3) An order under subsection (2) may contain transitional provision and savings.

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114 Computer records etc

(1) This section applies to any enactment that, in connection with an HMRC matter— (a) requires a person to produce a document or cause a document to be produced, (b) requires a person to permit the Commissioners or an officer of Revenue and Customs— (i) to inspect a document, or (ii) to make or take copies of or extracts from or remove a document, (c) makes provision about penalties or offences in connection with the production or inspection of documents, including in connection with the falsification of or failure to produce or permit the inspection of documents, or (d) makes any other provision in connection with a requirement mentioned in paragraph (a) or (b). (2) An enactment to which this section applies has effect as if— (a) any reference in the enactment to a document were a reference to anything in which information of any description is recorded, and (b) any reference in the enactment to a copy of a document were a reference to anything onto which information recorded in the document has been copied, by whatever means and whether directly or indirectly. (3) An authorised person may, at any reasonable time, obtain access to, and inspect and check the operation of, any computer and any associated apparatus or material which is or has been used in connection with a relevant document. (4) In subsection (3) “relevant document” means a document that a person has been, or may be, required pursuant to an enactment to which this section applies— (a) to produce or cause to be produced, or (b) to permit the Commissioners or an officer of Revenue and Customs to inspect, to make or take copies of or extracts from or to remove. (5) An authorised person may require— (a) the person by whom or on whose behalf the computer is or has been so used, or (b) any person having charge of, or otherwise concerned with the operation of, the computer, apparatus or material, to provide the authorised person with such reasonable assistance as may be required for the purposes of subsection (3). (6) Any person who— (a) obstructs the exercise of a power conferred by this section, or (b) fails to comply within a reasonable time with a requirement under subsection (5), is liable to a penalty of £300. (7) Paragraphs 45 to 49 and 52 of Schedule 36 (assessment of and appeals against penalties) apply in relation to a penalty under this section as they apply in relation to a penalty under paragraph 39 of that Schedule. (8) Omit the following— (a) section 10 of FA 1985 (production of computer records etc in connection with assigned matters), (b) section 127 of FA 1988 (production of computer records etc in connection with the Taxes Acts), and (c) paragraphs 11(2) to (4) and 13(2) and (3) of Schedule 1 to the Civil Evidence Act 1995 (c. 38). (9) In this section— “authorised person” means a person who is, or is a member of a class of persons who are, authorised by the Commissioners to exercise the powers under subsection (3), “the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs, “enactment” includes an enactment contained in subordinate legislation (within the meaning of the Interpretation Act 1978 (c. 30)), “HMRC matter” means a matter in relation to which the Commissioners, or officers of Revenue and Customs, have a power or duty, and “produce”, in relation to a document, includes furnish, deliver and any other equivalent expression.

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115 Record-keeping

(1) Schedule 37 contains provision about the obligations to keep records for the purposes of income tax, capital gains tax, corporation tax and value added tax. (2) The amendments made by that Schedule come into force on such day as the Treasury may by order made by statutory instrument appoint.

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116 Disclosure of tax avoidance schemes

(1) Schedule 38 contains amendments relating to the disclosure of tax avoidance schemes. (2) The amendments made by that Schedule come into force on such day as the Treasury may by order made by statutory instrument appoint; and different days may be appointed for different purposes.

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117 Power to open or unpack containers

(1) CEMA 1979 is amended as follows. (2) In section 1(1) (interpretation), in the definition of “container”, after “and any” insert “ baggage, ”. (3) Section 159 (power to examine and take account of goods) is amended as follows. (4) In subsection (1)— (a) after “for that purpose” insert “ open or unpack any container or ”, and (b) insert at the end “ and search it or anything in it. ” (5) In subsection (4), insert at the end “ ; but if an officer opens or unpacks any container, or searches it or anything in it, the Commissioners are to bear the expense of doing so. ”

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118 Time limits for assessments, claims etc

(1) Schedule 39 contains provision about time limits for assessments, claims etc. (2) The amendments and saving made by that Schedule come into force on such day as the Treasury may by order made by statutory instrument appoint. (3) An order under subsection (2)— (a) may make different provision for different purposes, and (b) may include transitional provision and further savings.

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119 Correction and amendment of tax returns

(1) In section 9ZB(1) of TMA 1970 (correction of personal or trustee return by HMRC)— (a) after “correct” insert — (a) , and (b) insert at the end , and (b) anything else in the return that the officer has reason to believe is incorrect in the light of information available to the officer. (2) In section 12ABB(1) of that Act (correction of partnership return by HMRC)— (a) after “correct” insert — (a) , and (b) insert at the end , and (b) anything else in the return that the officer has reason to believe is incorrect in the light of information available to the officer. (3) Schedule 18 to FA 1998 (company tax returns) is amended as follows. (4) In paragraph 16(1) (correction of company tax return by HMRC)— (a) after “correct” insert — (a) , and (b) insert at the end , and (b) anything else in the return that the officer has reason to believe is incorrect in the light of information available to the officer. (5) In paragraph 31 (amendment of return by company during enquiry), in sub-paragraph (4), for paragraph (b) substitute— (b) in any other case, the amendment takes effect as part of the amendments made by the closure notice. (6) In paragraph 34 (amendment of company tax return after enquiry), for sub-paragraphs (1) and (2) substitute— (1) This paragraph applies where a closure notice is given to a company by an officer. (2) The closure notice must— (a) state that, in the officer's opinion, no amendment is required of the return that was the subject of the enquiry, or (b) make the amendments of that return that are required— (i) to give effect to the conclusions stated in the notice, and (ii) in the case of a return for the wrong period, to make it a return appropriate to the designated period. (2A) The officer may by further notice to the company make any amendments of other company tax returns delivered by the company that are required to give effect to the conclusions stated in the closure notice. (7) In sub-paragraph (3) of that paragraph, for “any such amendment of a company's return” substitute “ an amendment of a company's return under sub-paragraph (2) or (2A) ”. (8) In sub-paragraph (4)(c) of that paragraph, for “notice of amendment” substitute “ closure notice ”. (9) In paragraph 61(1)(a) and (3)(a) (consequential claims etc), for “34(2)(b)” substitute “ 34(2A) ”. (10) In paragraph 88 (conclusiveness of amounts stated in return)— (a) in sub-paragraph (3)(b), omit the words from “and” to the end, (b) in sub-paragraph (3)(c), for “34(2)” substitute “ 34 ”, (c) in sub-paragraph (4)(b), for “the end of the period specified in paragraph 34(1)” substitute “ the completion of the enquiry ”, and (d) in sub-paragraph (4)(c), for “34(2)” substitute “ 34 ”. (11) In paragraph 93(1)(b) (general jurisdiction of Special or General Commissioners), for “34(2)” substitute “ 34 ”. (12) In the following provisions, for “34(2)” substitute “ 34 ” (a) in TMA 1970— (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (iii) section 46D(2)(aa) (questions to be determined by Land Tribunal), and (iv) section 55(1)(a)(ii) (recovery of tax not postponed), and (b) in ICTA, section 754(2E) (assessment, recovery and postponement of tax). (13) The amendments made by this section come into force on such day as the Treasury may by order appoint.

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120 VAT: time limits for assessments of excess credits etc

(1) In section 73 of VATA 1994 (assessment of overpaid VAT credits etc), after subsection (6) insert— (6A) In the case of an assessment under subsection (2), the prescribed accounting period referred to in subsection (6)(a) and in section 77(1)(a) is the prescribed accounting period in which the repayment or refund of VAT, or the VAT credit, was paid or credited. (2) Section 80 of that Act (credit for, or repayment of, overstated or overpaid VAT) is amended as follows. (3) After subsection (4A) insert— (4AA) An assessment under subsection (4A) shall not be made more than 2 years after the later of— (a) the end of the prescribed accounting period in which the amount was credited to the person, and (b) the time when evidence of facts sufficient in the opinion of the Commissioners to justify the making of the assessment comes to the knowledge of the Commissioners. (4) In subsection (4C), for “(2)” substitute “ (3) ”. (5) The amendments made by this section are treated as having come into force on 19 March 2008.

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121 Old VAT claims: extended time limits

(1) The requirement in section 80(4) of VATA 1994 that a claim under that section be made within 3 years of the relevant date does not apply to a claim in respect of an amount brought into account, or paid, for a prescribed accounting period ending before 4 December 1996 if the claim is made before 1 April 2009. (2) The requirement in section 25(6) of VATA 1994 that a claim for deduction of input tax be made at such time as may be determined by or under regulations does not apply to a claim for deduction of input tax that became chargeable, and in respect of which the claimant held the required evidence, in a prescribed accounting period ending before 1 May 1997 if the claim is made before 1 April 2009. (3) In this section— “input tax” and “prescribed accounting period” have the same meaning as in VATA 1994 (see section 96 of that Act), and “the required evidence” means the evidence of the charge to value added tax specified in or under regulation 29(2) of the Value Added Tax Regulations 1995 (S.I. 1995/2518). (4) This section is treated as having come into force on 19 March 2008.

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122 Penalties for errors

(1) Schedule 40 contains provisions amending Schedule 24 to FA 2007 (penalties for errors in returns etc). (2) That Schedule comes into force on such day as the Treasury may by order appoint. (3) An order under subsection (2)— (a) may commence a provision generally or only for specified purposes, and (b) may appoint different days for different provisions or for different purposes. (4) The Treasury may by order make any incidental, supplemental, consequential, transitional, transitory or saving provision which may appear appropriate in consequence of, or otherwise in connection with, Schedule 24 to FA 2007 or Schedule 40. (5) An order under subsection (4) may include provision amending, repealing or revoking any provision of any Act or subordinate legislation whenever passed or made (including this Act and any Act amended by it). (6) An order under subsection (4) may make different provision for different purposes. (7) The power to make an order under this section is exercisable by statutory instrument. (8) A statutory instrument containing an order under subsection (4) which includes provision amending or repealing any provision of an Act is subject to annulment in pursuance of a resolution of the House of Commons.

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123 Penalties for failure to notify etc

(1) Schedule 41 contains provisions for imposing penalties on persons in respect of failures to notify HMRC that they are chargeable to tax etc and certain wrongdoings relating to invoices showing VAT and excise duties. (2) That Schedule comes into force on such day as the Treasury may by order appoint. (3) An order under subsection (2)— (a) may commence a provision generally or only for specified purposes, and (b) may appoint different days for different provisions or for different purposes. (4) The Treasury may by order make any incidental, supplemental, consequential, transitional, transitory or saving provision which may appear appropriate in consequence of, or otherwise in connection with, Schedule 41. (5) An order under subsection (4) may include provision amending, repealing or revoking any provision of any Act or subordinate legislation whenever passed or made (including this Act and any Act amended by it). (6) An order under subsection (4) may make different provision for different purposes. (7) The power to make an order under this section is exercisable by statutory instrument. (8) A statutory instrument containing an order under subsection (4) which includes provision amending or repealing any provision of an Act is subject to annulment in pursuance of a resolution of the House of Commons.

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124 HMRC decisions etc: reviews and appeals

(1) The Treasury may by order made by statutory instrument make provision— (a) for and in connection with reviews by the Commissioners, or by an officer of Revenue and Customs, of HMRC decisions, and (b) in connection with appeals against HMRC decisions. (2) An order under subsection (1) may, in particular, contain provision about— (a) the circumstances in which, or the time within which— (i) a right to a review may be exercised, or (ii) an appeal may be made, and (b) the circumstances in which, or the time at which, an appeal or review is, or may be treated as, concluded. (3) An order under subsection (1) may, in particular, contain provision about the payment of sums by, or to, the Commissioners in cases where— (a) a right to a review is exercised, or (b) an appeal is made or determined. (4) That includes provision about payment of sums where an appeal has been determined, but a further appeal may be or has been made, including provision— (a) requiring payments to be made, (b) enabling payments to be postponed, or (c) imposing conditions in connection with the making or postponement of payments. (5) An order under subsection (1) may, in particular, contain provision about interest on any sum that is payable by, or to, the Commissioners in accordance with a decision made on the determination of an appeal. (6) Provision under subsection (1) may be made by amending, repealing or revoking any provision of any Act or subordinate legislation (whenever passed or made, including this Act and any Act amended by it). (7) An order under subsection (1) may— (a) provide that any provision contained in the order comes into force on a day appointed by an order of the Treasury made by statutory instrument (and may provide that different days may be appointed for different purposes), (b) contain incidental, supplemental, consequential, transitional, transitory and saving provision, and (c) make different provision for different purposes. (8) A statutory instrument containing an order under subsection (1) may not be made unless a draft of it has been laid before and approved by resolution of the House of Commons. (9) But if the order, or any other order under subsection (1) contained in the statutory instrument, is made in connection with a transfer of functions carried out under the Tribunals, Courts and Enforcement Act 2007 (c. 15), the statutory instrument may only be made if a draft of it has been laid before and approved by resolution of each House of Parliament. (10) In this section— (a) references to appeals against HMRC decisions include any other kind of proceedings relating to an HMRC matter, and (b) references to the making, determination or conclusion of appeals are to be read accordingly. (11) In this section— “the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs; “HMRC decision” means— any decision of the Commissioners relating to an HMRC matter, or any decision of an officer of Revenue and Customs relating to an HMRC matter, and references to an HMRC decision include references to anything done by such a person in connection with making such a decision or in consequence of such a decision; “HMRC matter” means any matter connected with a function of the Commissioners or an officer of Revenue and Customs.

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125 Alcoholic liquor duties

(1) Schedule 42 contains amendments of FA 1994 making certain decisions about alcoholic liquor duties subject to review and appeal. (2) The amendments made by that Schedule have effect in relation to decisions made on or after the day on which this Act is passed.

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126 Security under CEMA 1979

(1) In paragraph 2(1)(s) of Schedule 5 to FA 1994 (decisions under section 157 of CEMA 1979 subject to review and appeal)— (a) after “any security” insert “ (or further security) ”, and (b) insert at the end “ , guarantee or other security ”. (2) The amendments made by subsection (1) have effect in relation to decisions made on or after the day on which this Act is passed.

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127 Enforcement by taking control of goods: England and Wales

(1) This section applies if a person does not pay a sum that is payable by that person to the Commissioners under or by virtue of an enactment or under a contract settlement. (2) The Commissioners may use the procedure in Schedule 12 to the Tribunals, Courts and Enforcement Act 2007 (c. 15) (taking control of goods) to recover that sum. (3) This section extends to England and Wales only.

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128 Summary warrant: Scotland

(1) This section applies if a person does not pay a sum that is payable by that person to the Commissioners under or by virtue of any enactment or under a contract settlement. (2) An officer of Revenue and Customs may apply to the sheriff for a summary warrant. (3) An application under subsection (2) must be accompanied by a certificate which— (a) complies with subsection (4), and (b) is signed by the officer. (4) A certificate complies with this subsection if— (a) it states that— (i) none of the persons specified in the application has paid the sum payable by that person, (ii) the officer has demanded payment from each such person of the sum payable by that person, and (iii) the period of 14 days beginning with the day on which the demand is made has expired without payment being made, and (b) it specifies the sum payable by each person specified in the application. (5) Subsection (4)(a)(iii) does not apply to an application under subsection (2) insofar as it relates to— (a) sums payable in respect of value added tax, (b) sums payable in respect of deductions required to be made under section 61 of FA 2004 (sub-contractors in the construction industry), and (c) sums payable by a person in that person's capacity as an employer. (6) The sheriff must, on an application by an officer of Revenue and Customs under subsection (2), grant a summary warrant in, or as nearly as may be in, the form prescribed by Act of Sederunt. (7) A summary warrant granted under subsection (6) authorises the recovery of the sum payable by— (a) attachment, (b) money attachment, (c) earnings arrestment, (d) arrestment and action of furthcoming or sale. (8) Subject to subsection (9) and without prejudice to section 39(1) of the Debt Arrangement and Attachment (Scotland) Act 2002 (asp 17) (expenses of attachment)— (a) the sheriff officer's fees, and (b) any outlays necessarily incurred by that officer, in connection with the execution of a summary warrant are to be chargeable against the person in relation to whom the warrant was granted. (9) No fees are to be chargeable by the sheriff officer against the person in relation to whom the summary warrant was granted for collecting, and accounting to the Commissioners for, sums paid to that officer by that person in respect of the sum payable. (10) This section extends to Scotland only.

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129 Consequential provision and commencement

(1) Part 1 of Schedule 43 contains provision consequential on section 127. (2) Part 2 of that Schedule contains provision consequential on section 128. (3) The extent of the amendments and repeals in Schedule 43 is the same as the provision amended or repealed. (4) Sections 127 and 128 and Schedule 43 come into force on such day as the Commissioners may by order made by statutory instrument appoint. (5) An order under subsection (4) may— (a) make different provision for different purposes, and (b) contain transitional provision and savings.

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130 Set-off ...

(1) This section applies where there is both a credit and a debit in relation to a person. (2) The Commissioners may set the credit against the debit (subject to section 131 and any obligation of the Commissioners to set the credit against another sum). (3) The obligations of the Commissioners and the person concerned are discharged to the extent of any set-off under subsection (2). (4) “Credit”, in relation to a person, means— (a) a sum that is payable by the Commissioners to the person under or by virtue of an enactment, or (b) a relevant sum that may be repaid to the person by the Commissioners. (5) For the purposes of subsection (4), in relation to a person, “relevant sum” means a sum that was paid in connection with any liability (including any purported or anticipated liability) of that person to make a payment to the Commissioners under or by virtue of an enactment or under a contract settlement. (6) “Debit”, in relation to a person, means a sum that is payable by the person to the Commissioners under or by virtue of an enactment or under a contract settlement. (7) In this section references to sums paid, repaid or payable by or to a person (however expressed) include sums that have been or are to be credited by or to a person. (8) This section has effect without prejudice to any other power of the Commissioners to set off amounts. (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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131 No set-off where insolvency procedure has been applied

(1) This section applies where— (a) an insolvency procedure has been applied to a person, and (b) there is a post-insolvency credit in relation to that person. (2) The Commissioners may not use the power under section 130 to set that post-insolvency credit against a pre-insolvency debit in relation to the person. (3) “Post-insolvency credit” means a credit that— (a) became due after the insolvency procedure was applied to the person, and (b) relates to, or to matters occurring at, times after it was so applied. (4) “Pre-insolvency debit” means a debit that— (a) arose before the insolvency procedure was applied to the person, or (b) arose after that procedure was so applied but relates to, or to matters occurring at, times before it was so applied. (5) Subject to subsection (6), an insolvency procedure is to be taken, for the purposes of this section, to be applied to a person when— (a) a bankruptcy order or winding up order or award of sequestration is made or an administrator is appointed in relation to that person, (b) that person is put into administrative receivership, (c) if the person is a corporation, that person passes a resolution for voluntary winding up, (d) a voluntary arrangement comes into force in relation to that person, ... (e) a deed of arrangement takes effect in relation to that person , or (f) that person's estate becomes vested in any other person as that person's trustee under a trust deed (within the meaning of the Bankruptcy (Scotland) Act 1985). (6) In this section references to the application of an insolvency procedure to a person do not include— (a) the application of an insolvency procedure to a person at a time when another insolvency procedure applies to the person, or (b) the application of an insolvency procedure to a person immediately upon another insolvency procedure ceasing to have effect. (7) For the purposes of this section— (a) a person shall be treated as being in administrative receivership throughout any continuous period for which there is an administrative receiver of that person (disregarding any temporary vacancy in the office of receiver), and (b) the reference in subsection (5) to a person being put into administrative receivership shall be interpreted accordingly. (8) In this section— “administrative receiver” means an administrative receiver within the meaning of section 251 of the Insolvency Act 1986 (c. 45) or Article 5(1) of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)), “administrator” means a person appointed to manage the affairs, business and property of another person under Schedule B1 to that Act or to that Order, “credit” and “debit” have the same meaning as in section 130, “deed of arrangement” means a deed of arrangement registered in accordance with ... Chapter 1 of Part 8 the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)), and “voluntary arrangement” means a voluntary arrangement approved in accordance with Part 1 or Part 8 of the Insolvency Act 1986 (c. 45) or Part 2 or Chapter 2 of Part 8 of the Insolvency (Northern Ireland) Order 1989. (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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132 VAT: requirement to set-off

(1) Section 81 of VATA 1994 (set-off of credits etc) is amended as follows. (2) For subsection (4C) substitute— (4C) In this section, references to the application of an insolvency procedure to a person do not include— (a) the application of an insolvency procedure to a person at a time when another insolvency procedure applies to the person, or (b) the application of an insolvency procedure to a person immediately upon another insolvency procedure ceasing to have effect. (3) In subsection (5)— (a) omit paragraph (a), (b) in paragraph (b)— (i) for “that Act of 1986” substitute “ the Insolvency Act 1986 ”, and (ii) for “that Order of 1989” substitute “ the Insolvency (Northern Ireland) Order 1989 ”, and (c) before the “and” at the end of paragraph (b) insert— (ba) “administrator” means a person appointed to manage the affairs, business and property of another person under Schedule B1 to that Act or to that Order; .

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133 Set-off etc where right to be paid a sum has been transferred

(1) This section applies where there has been a transfer from one person (“the original creditor”) to another person (“the current creditor”) of a right to be paid a sum (“the transferred sum”) by the Commissioners. (2) The Commissioners— (a) must set the transferred sum against a sum payable to them by the original creditor if they would have had an obligation to do so under or by virtue of an enactment had the original creditor retained the right, and (b) may do so if they would have had a power to do so under or by virtue of an enactment or under a rule of law had the original creditor retained the right. (3) Subsection (2) applies whether the sum payable by the original creditor to the Commissioners first became payable before or after the transfer (but not if it only became payable after the Commissioners discharged their obligation to pay the transferred sum to the current creditor). (4) The following are discharged to the extent of any set-off under this section— (a) the obligations of the Commissioners in relation to the current creditor, and (b) the obligations of the original creditor. (5) An obligation under or by virtue of an enactment (other than this section) to set the transferred sum against a sum payable to the Commissioners by a person other than the original creditor has effect subject to the obligation under subsection (2)(a) and to any exercise of the power under subsection (2)(b). (6) A power under or by virtue of an enactment (other than this section) or under a rule of law to set the transferred sum against a sum payable to the Commissioners by a person other than the original creditor has effect subject to the obligation under subsection (2)(a). (7) In determining the sum (if any) to be paid, the Commissioners may make any reduction that they could have made if the original creditor had retained the right to be paid the transferred sum (in addition to any other reduction that they are entitled to make), including a reduction arising from any defence to a claim for the sum. (8) In this section— (a) references to the transfer of a right are to its transfer by assignment, assignation or any other means, ... (b) references to a sum that is payable by or to a person are to a sum that is to be paid, repaid or credited by or to that person and references to the payment of the sum (however expressed) are to be interpreted accordingly, and (c) where a right in relation to a sum has been transferred more than once, references to the original creditor are to the person from whom the right was first transferred (except in subsection (1)). (9) Where the right to be paid the transferred sum is dependent on the making of a claim— (a) subsection (2) does not apply unless a claim in respect of the transferred sum has been made, and (b) the references in subsections (2) and (7) to the obligations or powers that the Commissioners would have had if the original creditor had retained the right are references to those that they would have had if the original creditor had also made the claim in respect of the transferred sum. (10) This section has effect where the right to be paid the transferred sum was transferred from the original creditor on or after 25 June 2008.

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134 Retained funding bonds: tender by Commissioners

(1) Section 939 of ITA 2007 (duty to retain bonds where issue treated as payment of interest) is amended as follows. (2) After subsection (4) insert— (4A) If bonds are tendered in accordance with subsection (4), the Commissioners for Her Majesty's Revenue and Customs may tender the bonds in satisfaction of any amount that is payable by the Commissioners to the relevant creditor in connection with the relevant debt. (4B) For the purposes of subsection (4A)— (a) “relevant creditor” and “relevant debt” mean the creditor and the debt mentioned in subsection (1)(a), and (b) a bond is to be taken to have the same value that it had at the time of its issue. (4C) If bonds that are to be tendered in accordance with subsection (4) or (4A) are subject to restrictions on their tender or transfer, the restrictions do not prevent the bonds from being— (a) tendered in accordance with that subsection, or (b) transferred from the person tendering them to the person to whom they are tendered. (3) Omit subsection (5). (4) In ITA 2007, after section 940 insert— No appropriate bond or combination of bonds 940A (1) This section applies if— (a) the Commissioners for Her Majesty's Revenue and Customs hold one or more bonds tendered in accordance with section 939(4), (b) the Commissioners wish to tender bonds in accordance with section 939(4A) in satisfaction of an amount payable to the relevant creditor, and (c) the Commissioners consider that they do not hold a bond, or combination of bonds, that is appropriate for satisfying the amount payable. (2) If requested to do so by the Commissioners, the bond issuer must secure that the Commissioners hold a bond, or combination of bonds, that the Commissioners consider to be appropriate for satisfying the amount payable. (3) If requested to do so by the bond issuer, a person must assist the bond issuer to comply with subsection (2). (4) The duty under subsection (2), or under subsection (3), does not apply if it would be impracticable for the bond issuer, or the other person, to comply with the duty. (5) The matters which the Commissioners may take into account when considering whether or not a bond or combination of bonds is appropriate for satisfying the amount payable include— (a) the value of a bond at the time of its issue, (b) the interest which the relevant creditor, or any other person, has in a bond (including the nature or size of the interest), and (c) the terms on which a bond is issued. (6) For the purposes of this section— (a) “bond issuer” means the person by or through whom bonds were issued, and (b) “relevant creditor” and “relevant debt” have the same meanings as in section 939(4A). (5) The amendments made by this section have effect in relation to funding bonds issued on or after 12 March 2008.

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135 Interest on unpaid tax in case of disaster etc of national significance

(1) This section applies in any case where the Commissioners agree that the payment of a relevant sum may be deferred by reason of circumstances arising as a result of a disaster or emergency specified in an order under this section (an “agreement for deferred payment”). (2) In subsection (1) “relevant sum” means a sum to meet any liability to the Commissioners that— (a) arises under or by virtue of an enactment or a contract settlement, and (b) is of a description (if any) specified in the order. (3) No interest on the amount deferred is chargeable in respect of the relief period and no liability to a surcharge on the deferred amount arises during that period. (4) The relief period , in relation to a deferred amount, is the period— (a) beginning with a date specified in the order or, if the Commissioners so direct, a later date from which the agreement for deferred payment has effect, and (b) ending with the date on which the agreement for deferred payment ceases to have effect or, if earlier, the date on which the order is revoked or amended so that it ceases to have effect in relation to the deferred amount. (5) The agreement for deferred payment ceases to have effect at the end of the period of deferment specified in the agreement or, if the Commissioners agree to extend (or further extend) that period by reason of circumstances arising as a result of the disaster or emergency, with the end of that extended (or further extended) period. (6) If the agreement for deferred payment is an agreement for payment by instalments, the period of deferment in relation to each instalment ends with the date on or before which that instalment is to be paid; but if an instalment is not paid by the agreed date and the Commissioners do not agree to extend the period of deferment, the whole of the agreement for deferred payment is to be treated as ceasing to have effect on that date. (7) This section applies whether the agreement for deferred payment was made— (a) before or after the amount to which it relates becomes due and payable, or (b) before or after the making of the order concerned. (8) If in any case the Commissioners are satisfied that, although no agreement for deferred payment was made, one could have been made, this section applies as if one had been made; and the terms of the notional agreement for deferred payment are to be assumed to be such as the Commissioners are satisfied would have been agreed in the circumstances. (9) An order under this section may be made only in relation to a disaster or emergency which the Treasury consider to be of national significance. (10) Such an order— (a) may specify a disaster or emergency which has begun (or both begun and ended) before it is made (including one which has begun, or both begun and ended, before the passing of this Act), ... (b) may specify a date before the date on which it is made (including a date before the passing of this Act) , and (c) may specify different dates in relation to liabilities of different descriptions. (11) The power to make an order under this section is exercisable by the Treasury by statutory instrument. (12) A statutory instrument containing such an order is subject to annulment in pursuance of a resolution of the House of Commons. (13) In FA 2001, omit section 107 (interest on unpaid tax etc: foot and mouth disease); but the repeal of that section does not affect any agreement for deferred payment made before this Act is passed.

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136 Fee for payment

(1) The Commissioners may by regulations provide that, where a person makes a payment to the Commissioners or a person authorised by the Commissioners using a method of payment specified in the regulations, the person must also pay a fee specified in, or determined in accordance with, the regulations. (2) A method of payment may only be specified in regulations made under this section if the Commissioners expect that they, or the person authorised by them, will be required to pay a fee or charge (however described) in connection with amounts paid using that method of payment. (3) Regulations under this section— (a) may make provision about the time and manner in which the fee must or may be paid, (b) may make provision generally or only for specified purposes, and (c) may make different provision for different purposes. (4) Regulations under this section are to be made by statutory instrument. (5) A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.

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137 County court proceedings

(1) In section 25 of CRCA 2005 (conduct of civil proceedings)— (a) after subsection (1) insert— (1A) An officer of Revenue and Customs or a person authorised by the Commissioners may conduct county court proceedings for the recovery of an amount payable to the Commissioners under or by virtue of an enactment or under a contract settlement. , and (b) after subsection (5) insert— (6) In this section “contract settlement” means an agreement made in connection with any person's liability to make a payment to the Commissioners under or by virtue of an enactment. (2) In section 66 of TMA 1970 (county court proceedings)— (a) in subsection (1), omit “commenced in the name of a collector”, and (b) omit subsection (2). (3) Accordingly, in FA 1984, omit section 57(2). (4) In section 244 of IHTA 1984 (right to address court), omit “county court or”. (5) In paragraph 3 of Schedule 4 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2) (recovery of contributions where income tax recovery provisions not applicable)— (a) in sub-paragraph (1), omit “commenced in the name of an authorised officer”, and (b) omit sub-paragraph (2). (6) In paragraph 5 of Schedule 12 to FA 2003 (stamp duty land tax)— (a) in sub-paragraph (1), omit “brought in the name of the collector”, and (b) omit sub-paragraph (2). (7) Nothing in subsections (2) to (6) affects proceedings commenced or brought in the name of a collector or authorised officer before this Act is passed.

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138 Certificates of debt

(1) In CRCA 2005, after section 25 insert— Certificates of debt 25A (1) A certificate of an officer of Revenue and Customs that, to the best of that officer's knowledge and belief, a relevant sum has not been paid is sufficient evidence that the sum mentioned in the certificate is unpaid. (2) In subsection (1) “relevant sum” means a sum payable to the Commissioners under or by virtue of an enactment or under a contract settlement (within the meaning of section 25). (3) Any document purporting to be such a certificate shall be treated as if it were such a certificate until the contrary is proved. (4) Subsection (1) has effect subject to any provision treating the certificate as conclusive evidence. (2) Schedule 44 contains provisions consequential on this section.

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139 Interpretation of Chapter

In this Chapter— “the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs, and “contract settlement” means an agreement made in connection with any person's liability to make a payment to the Commissioners under or by virtue of an enactment.

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140 Charge on termination of interest in possession where new interest acquired

(1) In section 53 of IHTA 1984 (exceptions from charge on termination of interest in possession), for subsection (2A) substitute— (2A) Subsection (2) above applies by virtue of the person becoming beneficially entitled on or after 12 March 2008 to another interest in possession in the property only if that other interest is— (a) a disabled person's interest, or (b) a transitional serial interest; and that is the case irrespective of whether the person's beneficial entitlement to the interest in possession in the property which comes to an end is one which began before, or on or after, 22 March 2006. (2) The amendment made by subsection (1) is treated as having come into force on 22 March 2006 (so that paragraph 14(3) of Schedule 20 to FA 2006 is treated as never having had effect).

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141 Interest in possession settlements: extension of transitional period

(1) In Chapter 2 of Part 3 of IHTA 1984 (interests in possession etc)— (a) in section 49C (transitional serial interest: interest to which person becomes entitled on or after 22 March 2006 and before 6 April 2008), in subsection (3) and in the heading, (b) in section 49D (transitional serial interest: interest to which person becomes entitled on death of spouse or civil partner on or after 6 April 2008), in subsection (3) and in the heading, and (c) in section 49E (transitional serial interest: contracts of life insurance), in subsection (3), for “April” substitute “ October ”. (2) The amendments made by subsection (1) are treated as having come into force on 6 April 2008.

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142 Tax representatives

(1) In Part 3 of FA 1994 (insurance premium tax), omit the following provisions (which relate to tax representatives)— (a) sections 57 and 58, (b) in section 65(1), paragraph (b) and the “and” before it, (c) in section 73(1), the definition of “tax representative”, and (d) in Schedule 7, paragraph 18 and, in paragraph 20, “, 18(2)”. (2) In consequence of the repeals made by subsection (1), omit sections 27(4) and (5) of FA 1997.

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143 Overseas insurers

(1) Section 65 of FA 1994 (insurance premium tax: liability of insured where insurer not established in United Kingdom) is amended as follows. (2) In subsection (1), for the words after “time” substitute the insurer— (a) does not have any business establishment or other fixed establishment in the United Kingdom, and (b) is established in a country or territory in respect of which it appears to the Commissioners that the condition in subsection (1A) below is met. (3) After that subsection insert— (1A) The condition mentioned in subsection (1)(b) above is that— (a) the country or territory is neither a member State nor a part of a member State, and (b) there is no provision for mutual assistance between the United Kingdom and the country or territory similar in scope to the assistance provided for between the United Kingdom and each other member State by the mutual assistance provisions. (1B) In subsection (1A) above “the mutual assistance provisions” means— (a) section 134 of, and Schedule 39 to, the Finance Act 2002 (recovery of taxes etc due in other member States), and (b) section 197 of the Finance Act 2003 (exchange of information between tax authorities of member States).

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144 Rebates

(1) VERA 1994 is amended as follows. (2) In section 10 (transfer and surrender of vehicle licences), omit subsections (2) and (3) and, in the heading, “and surrender”. (3) For section 19 (rebates on surrender of licences) substitute— Rebates 19 (1) If the relevant person makes an application to the Secretary of State under this subsection for a rebate of the duty paid on a vehicle licence in force for a vehicle, the person is entitled to receive from the Secretary of State the amount specified in subsection (2). (2) That amount is an amount equal to one-twelfth of the annual rate of duty chargeable on the licence (at the time when it was taken out) in respect of each complete month of the period of the currency of the licence which is unexpired when the application is made. (3) An application under subsection (1) may only be made if— (a) the vehicle has been stolen, (b) the vehicle has been destroyed and the Secretary of State is notified of that, (c) an application for a nil licence for the vehicle is made in accordance with regulations under section 22, (d) the vehicle is neither used nor kept on a public road and the particulars and declaration required to be furnished and made by regulations under section 22(1D) are furnished and made in relation to it in accordance with the regulations, (e) the vehicle has been sold or disposed of and the particulars prescribed by regulations under section 22(1)(d) are furnished in relation to it in accordance with the regulations, or (f) the vehicle has been removed from the United Kingdom with a view to its remaining permanently outside the United Kingdom and the Secretary of State is notified of that. (4) In subsection (1) “the relevant person” means the person in whose name the vehicle is registered at the time when the application is made; but in a case within subsection (3)(e) also includes the person in whose name it was registered immediately before being sold or disposed of. (5) The Secretary of State may specify conditions which must be complied with by a person before making an application under subsection (1). (6) The conditions that may be specified include (in particular)— (a) a condition requiring the surrender of the licence, (b) a condition requiring that particulars which are required to be furnished to the Secretary of State are transmitted to the Secretary of State by such electronic means as may be specified, and (c) in a case within subsection (3)(a), conditions relating to the reporting to the police that the vehicle has been stolen. (7) Where an application is made under subsection (1) and the licence is not surrendered on the making of the application, it ceases to be in force when the application is made. (8) Where a trade licence is surrendered to the Secretary of State under section 14(2), the holder of the licence is entitled to receive from the Secretary of State (by way of rebate of the duty paid on the licence) an amount equal to one-twelfth of the annual rate of duty chargeable on the licence (at the time when it was taken out) in respect of each complete month of the period of the currency of the licence which is unexpired at the date of the surrender. (4) In section 22(1D) (requirement to furnish particulars etc in certain circumstances), omit paragraph (a) (surrender under section 10(2)). (5) In— (a) section 31(7)(a), (b) section 31B(9)(a)(i), and (c) section 31C(7)(a), (meaning of “expiry”), after “surrender” insert “ or ceasing to be in force under section 19(7) ”. (6) In consequence of the amendment made by subsection (3), omit section 14 of FA 2001. (7) The amendments made by this section come into force on 1 January 2009.

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145 Offence of using or keeping unlicensed vehicle

Schedule 45 contains provision in relation to the offence of using or keeping an unlicensed vehicle.

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146 Rates for new lower-emission vans

(1) Part 1B of Schedule 1 to VERA 1994 (annual rates of duty: light goods vehicles) is amended as follows. (2) In paragraph 1J(a) and (b) (rates), after “a” insert “ pre-2007 or post-2008 ”. (3) In paragraph 1K (meaning of “lower-emission van”), for “ “lower-emission van”” substitute “pre-2007 lower-emission van” . (4) After paragraph 1L insert— 1M For the purposes of paragraph 1J, a vehicle to which this Part of this Schedule applies is a “post-2008 lower-emission van” if— (a) the vehicle is first registered on or after 1 January 2009 and before 1 January 2011, (b) it is a vehicle to which Regulation (EC) No 715/2007 of the European Parliament and of the Council applies (see Article 2 of that Regulation), (c) it is powered by a compression ignition engine, and (d) the emissions from it do not exceed any of the emission limit values specified in Table 1 of Annex 1 to that Regulation in relation to vehicles so powered.

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147 Not exhibiting licence: period of grace

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148 Reduced pollution certificates

(1) Section 61B of VERA 1994 (certificates as to reduced pollution) is amended as follows. (2) In subsection (1), after paragraph (b) insert— (ba) for the production of information and making of declarations for the purposes of a determination (including provision about the person to whom, and the time at which and manner in which, the information is to be produced and the declarations are to be made); . (3) In paragraph (c) of that subsection, for “examination of an eligible vehicle, for the purposes of the determination mentioned in paragraph (b),” substitute “ Secretary of State to specify cases in which a determination is to be made only after an examination of an eligible vehicle ”. (4) In paragraph (d) of that subsection, for “for such an examination” substitute “ in respect of a determination ”. (5) In paragraph (e) of that subsection, for “on a prescribed examination,” substitute “ in accordance with the regulations, ”. (6) In subsection (3)— (a) in paragraph (a), for “in accordance with the regulations” substitute “ (or, if not previously examined, examined) in accordance with the regulations (“a post-certification examination”) ”, (b) in paragraph (b), for “such a re-examination” substitute “ a post-certification examination ”, and (c) in paragraph (c), for “the prescribed re-examination” substitute “ a post-certification examination ”.

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149 Climate change levy: coal mine methane no longer to be renewable source

(1) In paragraph 19 of Schedule 6 to FA 2000 (exemption: electricity from renewable sources), omit sub-paragraph (4A) (coal mine methane to be regarded as renewable source). (2) Accordingly, omit— (a) section 126 of FA 2002 (which inserted sub-paragraph (4A)), and (b) regulation 47(2A) of the Climate Change Levy (General) Regulations 2001 (S.I. 2001/838). (3) The repeals and revocation made by this section have effect in relation to electricity generated on or after 1 November 2008.

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150 Climate change levy accounting documents: abolition of self-identification

In paragraph 143(2) of Schedule 6 to FA 2000 (requirements to be met by invoice if it is to be a “climate change levy accounting document”), omit paragraph (a) (requirement that it must state that it is a climate change levy accounting document).

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151 Landfill tax credit: withdrawing approval of environmental bodies

(1) Part 3 of FA 1996 (landfill tax) is amended as follows. (2) In section 53(4)(d) (withdrawal of approval of environmental body or regulatory body), for “approval of an environmental body or the regulatory body to be withdrawn” substitute “ the withdrawal of approval of an environmental body by the Commissioners or by the regulatory body, and the withdrawal of approval of the regulatory body by the Commissioners, ”. (3) In section 54(1) (review of Commissioners' decisions), after paragraph (c) insert— (ca) a decision to withdraw approval of an environmental body under any provision contained in regulations by virtue of section 53(4)(d) above; . (4) The amendments made by this section are treated as having come into force on 19 March 2008.

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