Schedule 7 Part 2
120.Paragraph 41 introduces amendments to the Taxes Management Act 1970 (TMA 1970).
121.Paragraph 42 inserts new section 7A into TMA 1970. This sets out that where a person reports a NRCGT gain on a NRCGT return made to HMRC, that gain is ignored for the purposes of determining whether that person must notify HMRC that they have chargeable gains for the tax year concerned.
122.Paragraph 43 inserts new sections 12ZA to 12ZN into TMA 1970.
123.New section 12ZA of TMA 1970 defines various terms used in new sections 12ZB to 12ZN.
124.New section 12ZB requires a person who makes a non-resident disposal to notify the disposal to HMRC in a NRCGT return. The return must be made within 30 days of, normally, the time when the property is conveyed.
125.New section 12ZC requires a single return to be made where two or more NRCGT disposals are made on the same day.
126.New Section 12ZD applies in relation to options that bind the grantor to sell a property and place the same reporting and payment on account obligations on the grantor when the option is exercised as apply when the grant was made.
127.New Section 12ZE requires that the NRCGT return must include “an advance self-assessment” of the amount that is notionally chargeable for the tax year, or additional amount if a previous NRCGT return for the year has been made, subject to certain exceptions set out in new section 12ZG.
128.New section 12ZF explains how to compute the “amount notionally chargeable” and what assumptions are to be taken into consideration.
129.New section 12ZG provides that an advance self-assessment is not required where the person is required to make a self-assessment return for the tax year in which the disposal is made or the previous year; or has made an ATED return for the preceding period.
130.New Section 12ZH treats an NRCGT return as being a self-assessment return for the tax year for persons other than trustees of a settlement. The self-assessment return is treated as being made to HMRC from 31 January following the end of the tax year in which the disposal was made unless the person gives before then a notice that it should be regarded as being made from when the notice is made.
131.New section 12ZI treats an NRCGT return as being a self-assessment return for the tax year for trustees of a settlement. The self-assessment return is treated as being made to HMRC from 31 January following the end of the tax year in which the disposal was made unless the trustees gives before then a notice that it should be regarded as being made from when the notice is made.
132.New section 12ZJ provides, for the purpose of sections 12ZA to 12ZI, that the question as to whether a person is a non-resident at the time of a disposal shall be determined by what at the time of completion it was reasonable for the position to be; and the position and replacement duties if it later becomes certain that the answer is different.
133.New Section 12ZK provides that NRCGT returns may be amended within 12 months of the 31 January following the tax year in which the disposal was made.
134.New section 12ZL provides that an officer of HMRC may correct an NRCGT return in certain cases. No correction may be made more than 9 months after the day on which the return was delivered or an amendment under section 12ZK was made.
135.New section 12ZM provides that an officer of HMRC may enquire into an NRCGT return if notice to do so is given and the enquiry is carried out within certain time limits.
136.New section 12ZN concerns amendments made to the return by a taxpayer during the period of enquiry and its impact on that enquiry.
137.Paragraph 44 makes consequential amendments to section 28A of TMA70, which contains provision about the effect of an enquiry closure notice.
138.Paragraph 45 inserts new section 28G into TMA1970. Where a NRCGT return has not been filed this section permits HMRC to determine the tax that is believed should be paid.
139.Paragraph 46 inserts new subsection 29(7)(a)(ia) into TMA1970. This enables HMRC to make an assessment for tax not self-assessed on an NRCGT return.
140.Paragraph 47 inserts new section 29A into TMA 1970. This section enables HMRC to make a discovery assessment for tax not self-assessed on an NRCGT return as long as certain conditions are met.
141.Paragraph 48 inserts new subsection 34(1A) into TMA1970. This imposes, in respect of new section 29A, the ordinary 4 year time limit for making assessments.
142.Paragraph 49 amends section 42 of TMA 1970, the procedure for making claims, to include claims made in an NRCGT return.
143.Paragraph 50 omits subsection 59A(7) of TMA 1970 in consequence of new section 59AB.
144.Paragraph 51 inserts new sections 59AA and 59AB into TMA 1970. These deal with payments on account of tax.
145.New Section 59AA determines the payment on account of capital gains tax to be made for a tax year when an NRCGT return contains an advance self-assessment for the year. It is the difference between the amount notionally chargeable in relation to the return and the payments (if any) made towards that amount.
146.New Section 59AB provides that the same rules that apply to the recovery of outstanding tax, apply in respect of an amount due to be paid on account.
147.Paragraph 52 makes a consequential amendment to section 59B of TMA 1970 and inserts new subsection 59B(2A) to ensure that the net amount remaining payable (or repayable) at the end of the tax year, after other liabilities have been taken into consideration, is correct.
148.Paragraph 53 makes a consequential amendment to section 107A of TMA 1970.
149.Paragraph 54 makes a consequential amendment to section 118 of TMA 1970.
150.Paragraph 55 makes consequential amendments to Schedule 3ZA to TMA1970.
151.Paragraph 56 makes consequential amendments to Schedule 24 to the Finance Act 2007, and inserts new paragraph 21BA.
152.Paragraph 57 inserts new paragraph 21ZA into Schedule 36 to the Finance Act 2008. This restricts HMRC from making a notice requiring a person to deliver information or documents unless certain conditions are met.
153.Paragraph 58 makes consequential amendments to section 2 of the Corporation Tax Act 2009.
154.Paragraph 59 makes consequential amendments to Schedule 55 to the Finance Act 2009.
155.Paragraph 60 inserts new subsection 92(7) into the Taxation (International and Other Provisions) Act 2010. This provides that the reference to “tax return for a chargeable period” in subsection (1) does not include an NRCGT return.
