Law

Finance Act 2009

United Kingdom · statute

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In force since 2026-10-02, 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: 184 provisions

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184 provisions

40 Income tax credits for foreign distributions

Schedule 19 contains provision about income tax credits for foreign distributions.

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41 Loan relationships involving connected parties

Schedule 20 contains provision about loan relationships involving connected parties.

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42 Release of trade etc debts

(1) CTA 2009 is amended as follows. (2) In section 353 (introduction to Chapter 6 of Part 5)— (a) omit subsection (3), and (b) in subsection (6), after “loss”” insert “ and release debit ”. (3) In section 476(1) (definitions for purposes of Parts 5 and 6), after the definition of “profit sharing arrangements” insert— “release debit”, in relation to a company, means a debit in respect of a release by the company of a liability under a creditor relationship of the company, . (4) Section 479 (relevant non-lending relationships not involving discounts) is amended as follows. (5) In subsection (2)— (a) omit the “and” at the end of paragraph (b), (b) in paragraph (c), after “loss)” insert “ or release debit ”, and (c) insert at the end , and (d) a debt in relation to which a relevant deduction has been allowed to the company and which is released. (6) In subsection (3), for “(2)” substitute “ (2)(c) ”. (7) After that subsection insert— (3A) In subsection (2)(d) “relevant deduction” means a deduction allowed in calculating the profits of a trade, UK property business or overseas property business. (8) Section 481 (application of Part 5 to relevant non-lending relationships) is amended as follows (9) In subsection (3)— (a) in paragraph (d), after “loss” insert “ or release debit ” and for “impairment, and” substitute “ impairment or release, ”, and (b) insert at the end and (f) in the case of a debt in relation to which a relevant deduction has been allowed to the company and which is released, the release. (10) In subsection (4), for “(3)” substitute “ (3)(d) and (e) ”. (11) After that subsection insert— (4A) In subsection (3)(f) “relevant deduction” has the meaning given in section 479(3A). (12) The amendments made by this section are treated as having come into force on 22 April 2009.

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43 Foreign exchange matching: anti-avoidance

Schedule 21 contains anti-avoidance provisions relating to exchange gains and losses arising from loan relationships and derivative contracts.

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44 Tax treatment of participants in offshore funds

In Schedule 22— ... Part 2 contains provision about the treatment of participants in certain offshore funds under TCGA 1992.

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45 Power to enable dividends of investment trusts to be taxed as interest

(1) The Treasury may by regulations make provision for and in connection with— (a) the designation by a company that is an investment trust or a prospective investment trust of dividends made by the company, and (b) the treatment of a designated dividend for the purposes of the Tax Acts, in specified circumstances and in the case of specified persons— (i) as a payment of yearly interest, or (ii) as interest under a loan relationship. (2) Regulations under this section may, in particular, make provision— (a) about the circumstances in which a dividend may, or may not, be designated, (b) about limits on the amounts that may be designated or treated as a payment of yearly interest or as interest under a loan relationship, (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (d) about the preparation of accounts and the keeping of records by investment trusts and prospective investment trusts, and (e) about the provision by investment trusts and prospective investment trusts of information, whether to recipients of designated dividends or to other persons, including provision imposing a penalty not exceeding £3,000. (3) Regulations under this section may, in particular— (a) make provision applying enactments and instruments (with or without modification), (b) make different provision for different cases or different purposes, and (c) make incidental, consequential, supplementary or transitional provision. (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. (6) In this section— “company” has the same meaning as in Chapter 4 of Part 24 of CTA 2010 (see section 1165(1) of that Act) (investment trusts); “investment trust” means an investment trust within the meaning of section 1158 of CTA 2010; “loan relationship” has the same meaning as in the Corporation Tax Acts (see section 302(1) and (2) of CTA 2009); “prospective investment trust” means a company that— intends to seek approval under section 1158 of CTA 2010 (meaning of “investment trust”), and has a reasonable belief that such approval will be obtained; “specified” means specified in regulations under this section.

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46 Insurance companies

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47 Equalisation reserves for Lloyd's corporate and partnership members

(1) The Treasury may by regulations provide for section 444BA of ICTA (equalisation reserves) to have effect, in such cases and subject to such modifications as may be specified in the regulations, in relation to equivalent Lloyd's reserves as it has effect in relation to equalisation reserves maintained by virtue of equalisation reserves rules. (2) For this purpose a reserve is an equivalent Lloyd's reserve if it is maintained by a corporate or partnership member for purposes, or in a manner, such as to make it equivalent to an equalisation reserve maintained by virtue of equalisation reserves rules. (3) The regulations may include— (a) provision having effect in relation to periods before they are made, and (b) supplementary, incidental, consequential and transitional provision. (4) In this section— “corporate member” means a body corporate which is a member of Lloyd's; “equalisation reserves rules” has the same meaning as in section 444BA of ICTA (see subsection (11) of that section); “member” means underwriting member; “partnership member” means a limited partnership formed under the law of Scotland, or a limited liability partnership formed under the law of any part of the United Kingdom, which is a member of Lloyd's.

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48 Disguised interest

Schedule 24 contains provision about the corporation tax treatment of disguised interest.

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49 Transfer of income streams

Schedule 25 contains provision about transfers of income streams.

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50 SAYE schemes

(1) Schedule 26 contains provision amending Chapter 4 of Part 6 of ITTOIA 2005 (SAYE interest). (2) The amendments made by that Schedule are treated as having come into force on 29 April 2009.

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51 Remittance basis

Schedule 27 contains amendments about the remittance basis.

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52 Exemption for certain non-domiciled persons

(1) In Part 14 of ITA 2007 (income tax: miscellaneous rules), after Chapter 1 insert— Chapter 1A Exemption for persons not domiciled in United Kingdom Introduction 828A This Chapter provides for an exemption from liability to income tax for an individual for a tax year if— (a) the individual is UK resident in the tax year but not domiciled in the United Kingdom in the tax year, (b) section 809B does not apply to the individual for the tax year, and (c) conditions A to F in section 828B are met. Conditions to be met 828B (1) Condition A is that in the tax year the individual has income from an employment the duties of which are performed wholly or partly in the United Kingdom. (2) Condition B is that, if the individual's income for the tax year consists of or includes relevant foreign earnings— (a) the amount of the relevant foreign earnings does not exceed £10,000, and (b) all of that amount is subject to a foreign tax. (3) Condition C is that, if the individual's income for the tax year consists of or includes income that is relevant foreign income by virtue of section 830(2)(e) of ITTOIA 2005— (a) the amount of that income does not exceed £100, and (b) all of that amount is subject to a foreign tax. (4) Condition D is that the individual has no other foreign income and gains for the tax year. (5) Condition E is that the individual would not for the tax year be liable to income tax at a rate other than the basic rate or the starting rate for savings if this Chapter did not apply to the individual for the tax year. (6) Condition F is that the individual does not make a return under section 8 of TMA 1970 for the tax year. The exemption 828C (1) The exemption is given by deducting the relevant amount from what would otherwise be the amount of the individual's liability to income tax for the tax year under section 23. (2) “The relevant amount” is so much of the amount of the individual's liability to income tax as is attributable to the individual's foreign income or gains for the tax year. (3) But if for the tax year the individual's total income is reduced by any deductions which fall to be made at Step 3 of the calculation in section 23 from the individual's foreign income or gains for the tax year, subsection (2) has effect as if the individual's foreign income or gains for the tax year were reduced by the amount of the deductions. (4) And if the individual is entitled under— (a) section 788 of ICTA (double taxation arrangements: relief by agreement), or (b) section 790(1) of that Act (relief for foreign tax where no double taxation arrangements), to a tax reduction in respect of the individual's foreign income or gains for the tax year, what would otherwise be the relevant amount is reduced by the amount of that reduction. Interpretation of Chapter 828D (1) This section applies for the purposes of this Chapter. (2) “Employed” and “employment” have the same meaning as in the employment income Parts of ITEPA 2003: see Chapter 1 of Part 2 of that Act. (3) “Foreign income and gains”, in relation to an individual, means what would be the individual's foreign income and gains for the purposes of Chapter A1 of this Part if section 809B applied to the individual (see section 809Z7(2)). (4) “Foreign tax” means any tax chargeable under the law of a territory outside the United Kingdom. (5) “Relevant foreign earnings”, in relation to an individual, means what would be the individual's relevant foreign earnings for the purposes of Chapter A1 of this Part if section 809B applied to the individual (see section 809Z7(3)). (2) In section 2(14) of ITA 2007 (overview), after paragraph (a) insert— (aa) exemption for persons not domiciled in United Kingdom (Chapter 1A), . (3) The amendments made by this section have effect for the tax year 2008-09 and subsequent tax years.

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53 Taxable benefits: cars

Schedule 28 contains provision about taxable benefits arising from cars made available to employees etc by reason of employment.

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54 Taxable benefit of cars: price of automatic car for disabled employee

(1) Chapter 6 of Part 3 of ITEPA 2003 (taxable benefits: cars etc) is amended as follows. (2) In section 116(3) (meaning of when car is available), after “to section” insert “ 124A or ”. (3) In section 121(1) (method of calculating cash equivalent of benefit of car), in step 1, for “124” substitute “ 124A ”. (4) In section 122 (price of car), the existing provision becomes subsection (1) of that section and after that subsection insert— (2) This is subject to section 124A (automatic car for a disabled employee). (5) After section 124 insert— Automatic car for a disabled employee 124A (1) This section applies where— (a) a car has automatic transmission (“the automatic car”), (b) at any time in the year when the automatic car is available to the employee (“E”), E holds a disabled person's badge, and (c) by reason of E's disability, E must, in the event of wanting to drive a car, drive a car which has automatic transmission. (2) If, under section 122 to 124, the price of the automatic car is more than it would have been if the automatic car had been an equivalent manual car, the price of the automatic car is to be the price of an equivalent manual car. (3) In subsection (2) “an equivalent manual car” means a car which— (a) is first registered at or about the same time as the automatic car, and (b) does not have automatic transmission, but otherwise is the closest variant available of the make and model of the automatic car. (4) For the purposes of this section a car has automatic transmission if— (a) the driver of the car is not provided with any means by which the driver may vary the gear ratio between the engine and the road wheels independently of the accelerator and the brakes, or (b) the driver is provided with such means, but they do not include— (i) a clutch pedal, or (ii) a lever which the driver may operate manually. (5) For the purposes of this section a car is available to an employee at a particular time if it is then made available, by reason of the employment and without any transfer of the property in it, to the employee. (6) The amendments made by this section have effect for the tax year 2009-10 and subsequent tax years.

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55 Exemption of benefit consisting of health-screening or medical check-up

(1) Part 4 of ITEPA 2003 (employment income: exemptions) is amended as follows. (2) In section 266(3) (exemption of non-cash vouchers for exempt benefits), omit the “or” at the end of paragraph (e) and insert at the end or (g) section 320B (health screening and medical check-ups). (3) In section 267(2) (exemption of credit-tokens used for exempt benefits), omit the “and” at the end of paragraph (g) and insert at the end and (i) section 320B (health screening and medical check-ups). (4) After section 320A insert— Health-screening and medical check-ups Health-screening and medical check-ups 320B (1) No liability to income tax arises in respect of the provision for an employee, on behalf of an employer, of a health-screening assessment or a medical check-up. (2) Subsection (1) does not apply— (a) to more than one health-screening assessment provided in a tax year by any one employer or by any of a number of persons who are employers of the employee at the same time, or (b) to more than one medical check-up so provided. (3) In this section— “health-screening assessment” means an assessment to identify employees who might be at particular risk of ill-health, and “medical check-up” means a physical examination of the employee by a health professional for (and only for) determining the employee's state of health. (5) The amendments made by this section have effect for the tax year 2009-10 and subsequent tax years.

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56 MEPs' pay, allowances and pensions under European Parliament Statute

(1) Part 2 of TIOPA 2010 (double taxation relief) has effect as if tax for the benefit of the European Union payable in respect of any income under— (a) Articles 9.1 and 10 (salaries), (b) Article 13 (transitional allowances), or (c) Article 14, 15 or 17 (pensions for old-age, incapacity and survivors), of the Statute for Members of the European Parliament (2005/684/EC, Euratom) were payable under the law of a territory outside the United Kingdom. (2) In section 291(2)(c) of ITEPA 2003 (termination payments under section 3 of European Parliament (Pay and Pensions) Act 1979), insert at the end “ or under Article 13 of the Statute for Members of the European Parliament (transitional allowances), ”. (3) This section has effect for the tax year 2009-10 and subsequent tax years.

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57 Tax underlying dividends

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58 Manufactured overseas dividends

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59 Payments by reference to foreign tax etc

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60 Anti-fragmentation

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61 Financial arrangements avoidance

Schedule 30 contains provision to counter avoidance involving financial arrangements.

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62 Transfers of trade to obtain terminal loss relief

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63 Sale of lessor companies etc: anti-avoidance

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64 Leases of plant or machinery

Schedule 32 contains provision about leases of plant or machinery.

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65 Long funding leases of films

Schedule 33 contains provision about long funding leases of films.

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66 Real Estate Investment Trusts

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67 Deductions for employee liabilities

(1) ITEPA 2003 is amended as follows. (2) In section 346 (deduction for employee liabilities), after subsection (2) insert— (2A) Nor is a deduction allowed for a payment which falls within paragraph A, B or C if the payment is made in pursuance of arrangements the main purpose, or one of the main purposes, of which is the avoidance of tax. (3) After section 556 insert— Deductible payments made pursuant to tax avoidance arrangements 556A No deduction may be made under section 555 if the deductible payment is made in pursuance of arrangements the main purpose, or one of the main purposes, of which is the avoidance of tax. (4) The amendments made by this section have effect in relation to payments made on or after 12 January 2009 (irrespective of when the arrangements are made).

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68 Employment loss relief

(1) In section 128 of ITA 2007 (employment loss relief against general income), after subsection (5) insert— (5A) No claim may be made in respect of the loss if and to the extent that it is made as a result of anything done in pursuance of arrangements the main purpose, or one of the main purposes, of which is the avoidance of tax. (2) The amendment made by subsection (1)— (a) has effect in relation to a loss made in the tax year 2009-10 or a subsequent tax year, and (b) has effect in relation to a loss made in the tax year 2008-09 if or to the extent that it is occasioned by an act or omission occurring on or after 12 January 2009. (3) Where a person has made a claim under section 128 of ITA 2007 during the relevant period, no penalty is payable by the person on the ground that any return, statement or declaration made in connection with the claim contained an inaccuracy if it would not have done so but for the amendment made by subsection (1). For this purpose “the relevant period” is the period— (a) beginning with 12 January 2009, and (b) ending with 1 April 2009. (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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69 No loss relief for losses from contracts for life insurance etc

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70 Intangible fixed assets and goodwill

(1) Part 8 of CTA 2009 (intangible fixed assets) is amended as follows. (2) In section 712(1) (meaning of “intangible asset”), insert at the end “ (and includes an internally-generated intangible asset) ”. (3) In section 715 (application of Part 8 to goodwill)— (a) in subsection (3), insert at the end “(and includes internally-generated goodwill)”, and (b) insert at the end— (4) For the purposes of this Part, goodwill is treated as created in the course of carrying on the business in question. (4) In section 883 (assets treated as created or acquired when expenditure incurred)— (a) in subsection (1), for paragraph (b) substitute— (b) has effect subject to the provisions specified in subsection (2). , (b) in subsection (2)(a), omit “internally-generated”, (c) in subsection (2)(b), for “certain other internally-generated assets” substitute “ assets representing non-qualifying expenditure ”, and (d) in subsection (3), omit “to which this section applies”. (5) In section 884 (internally-generated goodwill: time of creation)— (a) omit “internally-generated”, (b) for the words from “before” to the end substitute — (a) before (and not on or after) 1 April 2002 in a case in which the business in question was carried on at any time before that date by the company or a related party, and (b) on or after 1 April 2002 in any other case. , and (c) in the heading, omit “Internally-generated”. (6) In section 885 (certain other internally-generated assets: time of creation)— (a) in subsection (1)(b), omit “internally-generated”, (b) in subsection (7), for the words from “before” to the end substitute — (a) before (and not on or after) 1 April 2002 in a case in which the asset in question was held at any time before that date by the company or a related party, and (b) on or after 1 April 2002 in any other case. , and (c) in the heading, for “Certain other internally-generated assets” substitute “ Assets representing non-qualifying expenditure ”. (7) The amendments made by this section have effect in relation to accounting periods beginning on or after 22 April 2009 (and, in relation to those accounting periods, are to be treated as always having had effect). (8) For the purposes of subsection (7) an accounting period beginning before, and ending on or after, 22 April 2009 is to be treated as if so much of the period as falls before that date, and so much of the period as falls on or after that date, were separate accounting periods.

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71 Taxable benefit of living accommodation: lease premiums

(1) Chapter 5 of Part 3 of ITEPA 2003 (taxable benefits: living accommodation) is amended as follows. (2) In section 105 (cash equivalent: cost of accommodation not over £75,000)— (a) in subsection (3), after “is” insert “ (subject to subsections (4) and (4A)) ”, and (b) for subsection (4) substitute— (4) Subsection (4A) applies where— (a) a rental amount is payable by the person (“P”) at whose cost the accommodation is provided in respect of the whole or part of the taxable period (“the relevant period”), and (b) the amount so payable is payable at an annual rate greater than the annual value. (4A) Where this subsection applies— (a) subsection (3) does not apply to the relevant period, and (b) instead the “rental value of the accommodation” for the relevant period is the rental amount payable by P in respect of the relevant period. (4B) A reference in subsection (4) or (4A) to a rental amount payable by P in respect of the relevant period is to the sum of— (a) any rent for the period payable by P, and (b) any amount attributed to the period in respect of a lease premium (see sections 105A and 105B). (3) After that section insert— Lease premiums 105A (1) For the purposes of section 105(4B)(b) an amount is attributed to the relevant period “in respect of a lease premium” if— (a) the property consists of premises, or a part of premises, that are subject to a lease, (b) the premises are not mainly used by P for a purpose other than the provision of living accommodation to which this Chapter applies, (c) the lease is for a term of 10 years or less, and (d) the net amount payable by P in relation to the lease by way of lease premium is greater than zero. (2) The amount so attributed is— A C × C where— A is the relevant period (in days), B is the term of the lease (in days), and C is the net amount payable by P in relation to the lease by way of lease premium. (3) For provision about the application of this section in relation to certain leases with break clauses, see section 105B. (4) For the purposes of this section the net amount payable by P in relation to a lease by way of lease premium is— (a) the total amount (if any) that has been paid, or is or will become payable, by P in relation to the lease by way of lease premium, less (b) any amount within paragraph (a) that has been repaid or is or will become repayable. (5) In this section and section 105B “lease premium” means any premium payable— (a) under a lease, or (b) otherwise under the terms on which a lease is granted. (6) In the application of this section to Scotland “premium” includes a grassum. Lease premiums in the case of leases with break clauses 105B (1) This section applies to a lease (“the original lease”) that contains one or more relevant break clauses. (2) For the purposes of this section— (a) “break clause” means a provision of a lease that gives a person a right to terminate it so that its term is shorter than it otherwise would be, and (b) a break clause contained in the original lease is “relevant” if the right to terminate the lease that it confers is capable of being exercised in such a way that the term of the original lease is 10 years or less. (3) For the purposes of section 105A— (a) the term of the original lease, and (b) the net amount payable by P in relation to the lease by way of lease premium, are to be determined on the assumption that any relevant break clause is exercised in such a way that the term of the lease is as short as possible. (4) If a relevant break clause is not in fact exercised in such a way that the term of the original lease is as short as possible, the parties to the lease are treated for the purposes of section 105A as if they were parties to another lease (a “notional lease”) the term of which— (a) begins immediately after the time at which the term of the original lease would have ended, if that break clause had been so exercised, and (b) ends at the time mentioned in subsection (5). (5) The term of a notional lease ends— (a) at the time the term of the original lease would end, on the assumption that any relevant break clause that is exercisable only after the beginning of the term of the notional lease is exercised in such a way that the term of the original lease is as short as possible, or (b) if earlier, the tenth anniversary of the beginning of the term of the original lease. (6) For the purposes of section 105A the net amount payable by P in relation to a notional lease by way of lease premium is, in the case of a notional lease the term of which ends under paragraph (a) of subsection (5)— (a) the net amount that would be payable by P in relation to the original lease by way of lease premium on the assumption mentioned in that paragraph, less (b) any part of that amount that has already been attributed to a period in respect of a lease premium under section 105(4B)(b). (7) For the purposes of section 105A the net amount payable by P in relation to a notional lease by way of lease premium is, in the case of a notional lease the term of which ends under paragraph (b) of subsection (5), the relevant proportion of— (a) the net amount that would be payable by P in relation to the original lease by way of lease premium, on the assumption that no break clause is exercised, less (b) any part of that amount that has already been attributed to a period in respect of a lease premium under section 105(4B)(b). (8) In subsection (7) “the relevant proportion” means— D E where— D is the term of the notional lease (in days), and E is the sum of— (a) the term of the notional lease (in days), and (b) the number of days by which the term of the original lease would exceed 10 years, on the assumption that no break clause is exercised. (4) The amendments made by this section have effect in relation to— (a) any lease entered into on or after 22 April 2009, and (b) subject to subsection (5), any lease entered into before that date the term of which is extended on or after that date. (5) In relation to a lease of the kind mentioned in subsection (4)(b) the amendments made by this section have effect— (a) as if the additional term of the lease created by the extension were the whole of the term of the lease, and (b) ignoring any lease premium payable in respect of the unextended term of the lease. (6) In this section “lease premium” has the same meaning as in sections 105A and 105B of ITEPA 2003.

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72 Special annual allowance charge etc

Schedule 35 contains provision for and in connection with a special annual allowance charge in respect of pension schemes.

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73 Financial assistance scheme

(1) The Treasury may by regulations make provision for and in connection with— (a) the application of the relevant taxes in relation to the financial assistance scheme, and (b) the application of the relevant taxes in relation to any person in connection with the financial assistance scheme. (2) “The financial assistance scheme” means the scheme provided for by regulations under section 286 of the Pensions Act 2004. (3) The provision that may be made by regulations under this section includes provision imposing any of the relevant taxes (as well as provisions for exemptions or reliefs). (4) The relevant taxes are— (a) income tax, (b) capital gains tax, (c) corporation tax, (d) inheritance tax, (e) value added tax, (f) stamp duty land tax, (g) stamp duty, and (h) stamp duty reserve tax. (5) Regulations under this section may, in particular, include provision for and in connection with the taxation of payments made by virtue of regulations under section 286 of the Pensions Act 2004. (6) The exemptions and reliefs that may be given by regulations under this section include, in particular, exemption from charges to income tax, corporation tax or capital gains tax in respect of— (a) income arising from any assets held or managed by, or receipts of, the person who manages the financial assistance scheme (“the scheme manager”) and any chargeable gains arising from the disposal of any such assets, and (b) the receipt of fraud compensation payments (within the meaning of Part 2 of the Pensions Act 2004: see section 182(1) of that Act). (7) Regulations under this section may include provision having effect in relation to any time before they are made if the provision does not increase any person's liability to tax. (8) The provision made by regulations under this section may be framed as provision applying with appropriate modifications provisions having effect in relation to registered pension schemes; and for this purpose “registered pension scheme” means a pension scheme within the meaning of Part 4 of FA 2004 which is registered under Chapter 2 of that Part of that Act. (9) Regulations under this section may include— (a) provision amending any enactment or instrument, and (b) consequential, supplementary and transitional provision. (10) Regulations under this section are to be made by statutory instrument. (11) 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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74 FSCS intervention in relation to insurance in connection with pensions

(1) The Treasury may by regulations make provision for and in connection with the application of the relevant taxes in relation to circumstances in which there is relevant intervention under the FSCS. (2) “Relevant intervention” means— (a) anything done under, or while seeking to make, arrangements for securing continuity of insurance in connection with registered pension schemes, (b) anything done as part of measures for safeguarding policyholders in connection with registered pension schemes, or (c) the payment of compensation in connection with registered pension schemes. (3) “The FSCS” means the Financial Services Compensation Scheme (established under Part 15 of FISMA 2000). (4) The provision that may be made by regulations under this section includes provision imposing any of the relevant taxes (as well as provisions for exemptions or reliefs). (5) The relevant taxes are— (a) income tax, (b) capital gains tax, (c) corporation tax, (d) inheritance tax, (e) stamp duty land tax, (f) stamp duty, and (g) stamp duty reserve tax. (6) Regulations under this section may include provision having effect in relation to any time before they are made if the provision does not increase any person's liability to tax. (7) The provision made by regulations under this section may be framed as provision modifying, or applying with appropriate modifications, provisions having effect in relation to registered pension schemes. (8) Regulations under this section may include— (a) provision amending any enactment or instrument, and (b) consequential, supplementary and transitional provision. (9) Regulations under this section are to be made by statutory instrument. (10) A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons. (11) In this section “registered pension scheme” means a pension scheme within the meaning of Part 4 of FA 2004 which is registered under Chapter 2 of that Part of that Act.

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75 Power to make retrospective non-charging provision

(1) In section 282 of FA 2004 (orders and regulations under Part 4), insert at the beginning— (A1) Any order or regulations made by the Treasury or the Commissioners for Her Majesty's Revenue and Customs under this Part may include provision having effect in relation to times before the order is, or regulations are, made if that provision does not increase any person's liability to tax. (A2) Subsection (A1) does not limit any specific power to make provision by an order or regulations in relation to times before the order is, or regulations are, made. (2) In consequence of the amendment made by subsection (1), omit the following provisions of Part 4 of FA 2004— (a) section 164(2)(d), (b) section 281(4), (c) section 283(3C), (d) in Schedule 28, paragraphs 3(2CA) and 17(4A), and (e) in Schedule 29A, paragraph 9(2). (3) In consequence of subsection (2), omit— (a) in FA 2006, in Schedule 23, paragraph 34(4), and (b) in FA 2008, in Schedule 29, paragraph 2.

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76 Place of supply of services etc

Schedule 36 contains provisions about the place of supply of services for the purposes of value added tax and related matters.

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77 Repayment to those in business in other States

(1) VATA 1994 is amended as follows. (2) In subsection (3) of section 39 (repayment of VAT to those in business overseas)— (a) in the words before paragraph (a), after “such cases” insert “ and to such extent ”, (b) in sub-paragraph (ii) of paragraph (b), after “Act” insert “ in respect of such period as may be prescribed ” and omit the “and” at the end, (c) after that paragraph insert— (ba) for and in connection with the payment of interest to or by the Commissioners (including in relation to the repayment of interest wrongly paid), and , and (d) in paragraph (c), for “methods by which” substitute “ time by which and manner in which claims must be made, ”. (3) After that section insert— Applications for forwarding of VAT repayment claims to other member States 39A The Commissioners must make arrangements for dealing with applications made to the Commissioners by taxable persons, in accordance with Council Directive 2008/9/EC, for the forwarding to the tax authorities of another member State of claims for refunds of VAT on— (a) supplies to them in that member State, or (b) the importation of goods by them into that member State from places outside the member States. (4) In section 83(1) (appeals), after paragraph (h) insert— (ha) any decision of the Commissioners to refuse to make a repayment under a scheme under section 39; .

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78 Information relating to cross-border supplies of services to taxable recipients

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79 Effect of VAT changes on arbitration of rent for agricultural holdings

(1) In paragraph 4(2) of Schedule 2 to the Agricultural Holdings Act 1986 (frequency of arbitrations of rent: changes in rent to be disregarded), insert at the end— (d) an increase or reduction of rent arising from— (i) the exercise of an option to tax under Schedule 10 to the Value Added Tax Act 1994, (ii) the revocation of such an option, or (iii) a change in the rate of value added tax applicable to grants of interests in or rights over land in respect of which such an option has effect. (2) Paragraph 4(2)(d) of Schedule 2 to that Act (as inserted by subsection (1)) includes an increase or reduction of rent arising from an option, revocation or change in rate that takes effect before the day on which this Act is passed. (3) The references in that provision and in subsection (2) to an option to tax, or to the exercise or revocation of such an option, under Schedule 10 to VATA 1994 include a reference to an election to waive exemption, or to the making or revocation of such an election, under that Schedule (as it had effect before 1 June 2008).

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