3U.K.After section 77E insert—
“Exemption certificatesU.K.
77FIssue, cancellation and effect of exemption certificates
(1)This section applies if there is a person (“T”) who will or might become liable to tax which, if unpaid, could be recovered under this Part from a person (“H”) who is the holder of a licence.
(2)If an officer of Revenue and Customs, on an application made by T, is satisfied that T will comply with any obligations imposed on T by the Taxes Acts, the officer may issue to H a certificate exempting H from section 77C with respect to any tax payable by T.
(3)If a certificate is issued to H under subsection (2), an officer of Revenue and Customs may, by notice in writing to H, cancel the certificate from the date specified in the notice.
(4)The date specified in a notice under subsection (3) may not be earlier than 30 days after the service of the notice.
(5)If a certificate is issued to H under subsection (2), section 77C does not apply to any tax payable by T which becomes due while the certificate is in force.
(6)If a certificate is issued to H under subsection (2) but is subsequently cancelled under subsection (3), section 77C also does not apply to any tax payable by T which—
(a)becomes due after the certificate is cancelled, but
(b)is in respect of profits arising, or chargeable gains accruing, while the certificate is in force.
77GLiabilities for assessments made after exemption certificate cancelled
(1)Subsection (7) applies if—
(a)each of conditions A to C is met, and
(b)one of conditions D and E is met.
(2)Condition A is that, after the cancellation under section 77F(3) of a certificate issued under section 77F(2) to a person (“H”) who is the holder of a licence, tax related to the licence is assessed on the applicant for the certificate.
(3)Condition B is that the tax is assessed in reliance on—
(a)section 276 of the 1992 Act,
(b)section 874 of ITTOIA 2005, or
(c)section 1313 of CTA 2009.
(4)Condition C is that the tax assessed is not tax under ITEPA 2003.
(5)Condition D is that—
(a)ignoring section 77F, H could be required by a secondary-liability notice to pay all of the tax remaining unpaid under the assessment, and
(b)the profits or chargeable gains in respect of which the assessment is made include (but are not limited to) profits arising, or chargeable gains accruing, while the certificate is in force.
(6)Condition E is that—
(a)as a result of section 77C(3), but ignoring section 77F, H could be required by a secondary-liability notice to pay some, but not all, of the tax remaining unpaid under the assessment, and
(b)the profits or chargeable gains that are—
(i)ones in respect of which the assessment is made, and
(ii)related to the licence,
include (but are not limited to) profits arising, or chargeable gains accruing, while the certificate is in force.
(7)If this subsection applies then, for the purposes of section 77C(1), the amount for which the holder of the licence is liable is the amount given by—
together with a corresponding proportion of any interest due under sections 86 and 87A on the amount remaining unpaid.
(8)In subsection (7)—
A is the amount that H could be required to pay as mentioned in paragraph (a) of whichever of conditions D and E is met (“the operative condition”),
CIF is the amount of the profits or chargeable gains mentioned in paragraph (b) of the operative condition that are ones arising, or accruing, while the certificate is in force, and
NIF is the amount of the profits or chargeable gains mentioned in paragraph (b) of the operative condition that are ones arising, or accruing, while the certificate is not in force.”