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Finance Act 2016

Status:

This is the original version (as it was originally enacted).

  1. Introductory Text

  2. PART 1 Income tax

    1. Charge and principal rates etc

      1. 1.Income tax charge and rates for 2016-17

      2. 2.Basic rate limit for 2017-18

      3. 3.Personal allowance for 2017-18

    2. Rate structure

      1. 4.Savings allowance, and savings nil rate etc

      2. 5.Rates of tax on dividend income, and abolition of dividend tax credits etc

      3. 6.Structure of income tax rates

    3. Employment income: taxable benefits

      1. 7.Taxable benefits: application of Chapters 5 to 7 of Part 3 of ITEPA 2003

      2. 8.Cars: appropriate percentage for 2019-20 and subsequent tax years

      3. 9.Cars which cannot emit CO2: appropriate percentage for 2017-18 and 2018-19

      4. 10.Diesel cars: appropriate percentage

      5. 11.Cash equivalent of benefit of a van

      6. 12.Tax treatment of payments from sporting testimonials

      7. 13.Exemption for trivial benefits provided by employers

      8. 14.Travel expenses of workers providing services through intermediaries

      9. 15.Taxable benefits: PAYE

    4. Employment income: other provision

      1. 16.Employee share schemes

      2. 17.Securities options

      3. 18.Employment income provided through third parties

    5. Pensions

      1. 19.Standard lifetime allowance from 2016-17

      2. 20.Pensions bridging between retirement and state pension

      3. 21.Dependants’ scheme pensions

      4. 22.Pension flexibility

      5. 23.Netherlands Benefit Act for Victims of Persecution 1940-1945

    6. Trading and other income

      1. 24.Fixed-rate deductions for use of home for business purposes

      2. 25.Averaging profits of farmers etc

      3. 26.Relief for finance costs related to residential property businesses

      4. 27.Individual investment plans of deceased investors

    7. Reliefs: enterprise investment scheme, venture capital trusts etc

      1. 28.EIS, SEIS and VCTs: exclusion of energy generation

      2. 29.EIS and VCTs: definition of certain periods

      3. 30.EIS and VCTs: election

      4. 31.VCTs: requirements for giving approval

    8. Reliefs: peer-to-peer lending

      1. 32.Income tax relief for irrecoverable peer-to-peer loans

    9. Transactions in securities

      1. 33.Transactions in securities: company distributions

      2. 34.Transactions in securities: procedure for counteraction of advantage

      3. 35.Distributions in a winding up

    10. Disguised fees and carried interest

      1. 36.Disguised investment management fees

      2. 37.Income-based carried interest

      3. 38.Income-based carried interest: persons coming to the UK

    11. Deduction at source

      1. 39.Deduction of income tax at source

      2. 40.Deduction of income tax at source: intellectual property

      3. 41.Deduction of income tax at source: intellectual property - tax avoidance

    12. Receipts from intellectual property

      1. 42.Receipts from intellectual property: territorial scope

      2. 43.Receipts from intellectual property: diverted profits tax

    13. Supplementary welfare payments: Northern Ireland

      1. 44.Tax treatment of supplementary welfare payments: Northern Ireland

  3. PART 2 Corporation tax

    1. Charge and rates

      1. 45.Charge for financial year 2017

      2. 46.Rate of corporation tax for financial year 2020

    2. Research and development

      1. 47.Abolition of vaccine research relief

      2. 48.Cap on R&D aid

    3. Loan relationships

      1. 49.Loan relationships and derivative contracts

      2. 50.Loans to participators etc: rate of tax

      3. 51.Loans to participators etc: trustees of charitable trusts

    4. Intangible fixed assets

      1. 52.Intangible fixed assets: pre-FA 2002 assets

      2. 53.Intangible fixed assets: transfers treated as at market value

    5. Creative industry reliefs

      1. 54.Tax relief for production of orchestral concerts

      2. 55.Television and video games tax relief: consequential amendments

    6. Banking companies

      1. 56.Banking companies: excluded entities

      2. 57.Banking companies: restrictions on loss relief etc

    7. Oil and gas

      1. 58.Reduction in rate of supplementary charge

      2. 59.Investment allowance: disqualifying conditions

      3. 60.Investment allowance: power to expand meaning of “relevant income”

      4. 61.Onshore allowance: disqualifying conditions

      5. 62.Cluster area allowance: disqualifying conditions

      6. 63.Cluster area allowance: power to expand meaning of “relevant income”

    8. Exploitation of patents etc

      1. 64.Profits from the exploitation of patents etc

    9. Miscellaneous

      1. 65.Power to make regulations about the taxation of securitisation companies

      2. 66.Hybrid and other mismatches

      3. 67.Insurance companies carrying on long-term business

      4. 68.Taking over payment obligations as lessee of plant or machinery

  4. PART 3 Income tax and corporation tax

    1. Capital allowances

      1. 69.Capital allowances: designated assisted areas

      2. 70.Capital allowances: anti-avoidance relating to disposals

    2. Trade and property business profits

      1. 71.Trade and property business profits: money’s worth

      2. 72.Replacement and alteration of tools

    3. Property business deductions

      1. 73.Property business deductions: replacement of domestic items

      2. 74.Property business deductions: wear and tear allowance

    4. Transfer pricing

      1. 75.Transfer pricing: application of OECD principles

    5. Transactions in UK land

      1. 76.Corporation tax: territorial scope etc

      2. 77.Corporation tax: transactions in UK land

      3. 78.Income tax: territorial scope etc

      4. 79.Income tax: transactions in UK land

      5. 80.Pre-trading expenses

      6. 81.Commencement and transitional provision: sections 76, 77 and 80

      7. 82.Commencement and transitional provision: sections 78 and 79

  5. PART 4 Capital gains tax

    1. Rate

      1. 83.Reduction in rate of capital gains tax

    2. Entrepreneurs' relief

      1. 84.Entrepreneurs’ relief: associated disposals

      2. 85.Entrepreneurs’ relief: disposal of goodwill

      3. 86.Entrepreneurs’ relief: “trading company” and “trading group”

    3. Investors' relief

      1. 87.Investors’ relief

    4. Employee shareholder shares

      1. 88.Employee shareholder shares: limit on exemption

      2. 89.Employee shareholder shares: disguised fees and carried interest

    5. Other provisions

      1. 90.Disposals of UK residential property by non-residents etc

      2. 91.NRCGT returns

      3. 92.Addition of CGT to Provisional Collection of Taxes Act 1968

  6. PART 5 Inheritance tax etc

    1. 93.Inheritance tax: increased nil-rate band

    2. 94.Inheritance tax: pension drawdown funds

    3. 95.Inheritance tax: victims of persecution during Second World War era

    4. 96.Inheritance tax: gifts for national purposes etc

    5. 97.Estate duty: objects of national, scientific, historic or artistic interest

  7. PART 6 Apprenticeship levy

    1. Basic provisions

      1. 98.Apprenticeship levy

      2. 99.Charge to apprenticeship levy

      3. 100.A person’s pay bill for a tax year

    2. Connected companies and charities

      1. 101.Connected companies

      2. 102.Connected charities

    3. Anti-avoidance

      1. 103.Anti-avoidance

      2. 104.Application of other regimes to apprenticeship levy

    4. Payment, collection and recovery

      1. 105.Assessment, payment etc

      2. 106.Recovery from third parties

      3. 107.Real time information

      4. 108.Time limits for assessment

      5. 109.No deduction in respect of levy to be made from earnings

      6. 110.Collectors and court proceedings

    5. Information and penalties

      1. 111.Records

      2. 112.Information and inspection powers

      3. 113.Penalties

    6. Appeals

      1. 114.Appeals

    7. General

      1. 115.Tax agents: dishonest conduct

      2. 116.Provisional collection of apprenticeship levy

      3. 117.Crown application

      4. 118.Charities which are “connected” with one another

      5. 119.Connection between charities: further provision

      6. 120.General interpretation

      7. 121.Regulations

  8. PART 7 VAT

    1. 122.VAT: power to provide for persons to be eligible for refunds

    2. 123.VAT: representatives and security

    3. 124.VAT: joint and several liability of operators of online marketplaces

    4. 125.VAT: Isle of Man charities

    5. 126.VAT: women’s sanitary products

  9. PART 8 SDLT and ATED

    1. Stamp duty land tax

      1. 127.SDLT: calculating tax on non-residential and mixed transactions

      2. 128.SDLT: higher rates for additional dwellings etc

      3. 129.SDLT higher rate: land purchased for commercial use

      4. 130.SDLT higher rate: acquisition under regulated home reversion plan

      5. 131.SDLT higher rate: properties occupied by certain employees etc

      6. 132.SDLT: minor amendments of section 55 of FA 2003

      7. 133.SDLT: property authorised investment funds and co-ownership authorised contractual schemes

    2. Annual tax on enveloped dwellings

      1. 134.ATED: regulated home reversion plans

      2. 135.ATED: properties occupied by certain employees etc

      3. 136.ATED: alternative property finance - land in Scotland

  10. PART 9 Other taxes and duties

    1. Stamp duty and stamp duty reserve tax

      1. 137.Stamp duty: acquisition of target company’s share capital

      2. 138.Stamp duty: transfers to depositaries or providers of clearance services

      3. 139.SDRT: transfers to depositaries or providers of clearance services

    2. Petroleum revenue tax

      1. 140.Petroleum revenue tax: rate

    3. Insurance premium tax

      1. 141.Insurance premium tax: standard rate

    4. Landfill tax

      1. 142.Landfill tax: rates from 1 April 2017

      2. 143.Landfill tax: rates from 1 April 2018

    5. Climate change levy

      1. 144.CCL: abolition of exemption for electricity from renewable sources

      2. 145.CCL: main rates from 1 April 2017

      3. 146.CCL: main rates from 1 April 2018

      4. 147.CCL: main rates from 1 April 2019

      5. 148.CCL: reduced rates from 1 April 2019

    6. Air passenger duty

      1. 149.APD: rates from 1 April 2016

    7. Vehicle excise duty

      1. 150.VED: rates for light passenger vehicles, light goods vehicles, motorcycles etc

      2. 151.VED: extension of old vehicles exemption from 1 April 2017

    8. Other excise duties

      1. 152.Gaming duty: rates

      2. 153.Fuel duties: aqua methanol etc

      3. 154.Tobacco products duty: rates

      4. 155.Alcoholic liquor duties: rates

  11. PART 10 Tax avoidance and evasion

    1. General anti-abuse rule

      1. 156.General anti-abuse rule: provisional counteractions

      2. 157.General anti-abuse rule: binding of tax arrangements to lead arrangements

      3. 158.General anti-abuse rule: penalty

    2. Tackling frequent avoidance

      1. 159.Serial tax avoidance

      2. 160.Promoters of tax avoidance schemes

      3. 161.Large businesses: tax strategies and sanctions for persistently unco-operative behaviour

    3. Offshore activities

      1. 162.Penalties for enablers of offshore tax evasion or non-compliance

      2. 163.Penalties in connection with offshore matters and offshore transfers

      3. 164.Offshore tax errors etc: publishing details of deliberate tax defaulters

      4. 165.Asset-based penalties for offshore inaccuracies and failures

      5. 166.Offences relating to offshore income, assets and activities

  12. PART 11 Administration, enforcement and supplementary powers

    1. Assessment and returns

      1. 167.Simple assessments

      2. 168.Time limit for self assessment tax returns

      3. 169.HMRC power to withdraw notice to file a tax return

    2. Judgment debts

      1. 170.Rate of interest applicable to judgment debts etc: Scotland

      2. 171.Rate of interest applicable to judgment debts etc: Northern Ireland

      3. 172.Rate of interest applicable to judgment debts etc: England and Wales

    3. Enforcement powers

      1. 173.Gift aid: power to impose penalties on charities and intermediaries

      2. 174.Proceedings under customs and excise Acts: prosecuting authority

      3. 175.Detention and seizure under CEMA 1979: notice requirements etc

      4. 176.Data-gathering powers: providers of payment or intermediary services

      5. 177.Data-gathering powers: daily penalties for extended default

    4. Payment

      1. 178.Extension of provisions about set-off to Scotland

    5. Raw tobacco

      1. 179.Raw tobacco approval scheme

    6. State aids granted through provision of tax advantages

      1. 180.Powers to obtain information about certain tax advantages

      2. 181.Power to publish state aid information

      3. 182.Information powers: supplementary

    7. Qualifying transformer vehicles

      1. 183.Qualifying transformer vehicles

  13. PART 12 Office of Tax Simplification

    1. 184.Office of Tax Simplification

    2. 185.Functions of the OTS: general

    3. 186.Functions of the OTS: reviews and reports

    4. 187.Annual report

    5. 188.Review of the OTS

    6. 189.Commencement

  14. PART 13 Final

    1. 190.Interpretation

    2. 191.Short title

  15. SCHEDULES

    1. SCHEDULE 1

      Abolition of dividend tax credits etc

      1. 1.Main repeals

      2. 2.Further amendments in ITTOIA 2005

      3. 3.In the heading of Chapter 3 of Part 4, for...

      4. 4.In section 382(2) (other contents of Chapter 3 of Part...

      5. 5.Omit section 384(3) (which refers to section 398).

      6. 6.Omit section 393(5) (determining entitlement to tax credit).

      7. 7.In section 394 (which deems a distribution to be made)—...

      8. 8.In section 395(3) (interpretation of section 395(2)) omit the words...

      9. 9.For section 396A(2)(b) (alternative receipt treated as qualifying distribution for...

      10. 10.In the italic heading before section 397, omit “Tax credits...

      11. 11.(1) Section 399 (qualifying distribution received by person not entitled...

      12. 12.(1) Section 401 (relief: qualifying distribution after linked non-qualifying distribution)...

      13. 13.Omit section 401A (recovery of overpaid tax credit etc).

      14. 14.In section 401B (power to obtain information for the purposes...

      15. 15.Omit sections 406(4A) and 407(4A) (determining entitlement to tax credit)....

      16. 16.In section 408(2A) (interpretation of section 408(2)) omit the words...

      17. 17.In section 411(2) (stock dividends: amount on which tax charged)...

      18. 18.In section 416 (released debts: amount on which tax charged)—...

      19. 19.In section 418(3) (release of loan: tax only on grossed-up...

      20. 20.In section 651 (meaning of “UK estate” and “foreign estate”)—...

      21. 21.In section 657 (tax charged on estate income from foreign...

      22. 22.In section 663 (applicable rate for purposes of grossing-up under...

      23. 23.In section 670 (applicable rate for purposes of Step 2...

      24. 24.In section 680 (income of an estate that is treated...

      25. 25.In section 680A (estate income treated as dividend income), in...

      26. 26.In section 854(6) (carrying on by partner of notional business:...

      27. 27.Omit section 858(3) (partnerships with foreign element: entitlement to tax...

      28. 28.Further amendments in CTA 2010

      29. 29.(1) Section 279F (ring fence profits: related 51% group company)...

      30. 30.(1) Section 279G (ring fence profits: meaning of “augmented profits”)...

      31. 31.For section 463(7) (loan to trustees of settlement which has...

      32. 32.(1) Section 549 (distributions: supplementary) is amended as follows.

      33. 33.(1) Section 751 (interpretation of Part 15 (transactions in securities))...

      34. 34.Omit section 814D(8) (which excludes entitlement to tax credits).

      35. 35.Omit section 997(5) (which introduces sections 1109 to 1111).

      36. 36.In sections 1026(1)(b) and 1027(2)(b) (cases where amount paid up...

      37. 37.(1) Section 1070 (distributions by company carrying on mutual business)...

      38. 38.(1) Section 1071 (company not carrying on business) is amended...

      39. 39.(1) Section 1100 (qualifying distribution: right to request a statement)...

      40. 40.(1) Section 1101 (non-qualifying distributions etc: returns and information) is...

      41. 41.In section 1103 (regulations about information about non-qualifying distributions)—

      42. 42.(1) Section 1106 (interpretation of sections 1104 and 1105) is...

      43. 43.Omit sections 1110 and 1111 (recovery of overpaid tax credits...

      44. 44.(1) Section 1115 (meaning of “new consideration” in Part 23)...

      45. 45.In section 1119 (definitions for the purposes of the Corporation...

      46. 46.Omit section 1126 (meaning of “franked investment income”).

      47. 47.Omit section 1136 (meaning of “qualifying distribution”).

      48. 48.Omit section 1139(4) (“relief” includes tax credit).

      49. 49.In Schedule 2 (transitionals and savings etc) omit paragraph 106(1)...

      50. 50.In Schedule 4 (index of defined expressions) omit the entries...

      51. 51.Other amendments

      52. 52.(1) ICTA is amended as follows. (2) Omit section 231B...

      53. 53.In FA 1988, in Schedule 13 omit paragraph 7(c) (post-consolidation...

      54. 54.In FA 1989— (a) omit section 115 (double taxation: tax...

      55. 55.In FA 1993 omit section 171(2B) (which excludes entitlement to...

      56. 56.In FA 1994 omit section 219(4B) (which excludes entitlement to...

      57. 57.(1) F(No.2)A 1997 is amended as follows.

      58. 58.(1) FA 1998 is amended as follows.

      59. 59.In the Commonwealth Development Corporation Act 1999, in Schedule 3...

      60. 60.In the Financial Services and Markets Act 2000 (Consequential Amendments)...

      61. 61.(1) ITEPA 2003 is amended as follows.

      62. 62.In ITTOIA 2005, in Schedule 1 (minor and consequential amendments)...

      63. 63.(1) ITA 2007 is amended as follows.

      64. 64.In FA 2008, in Schedule 12 (amendments relating to tax...

      65. 65.(1) CTA 2009 is amended as follows.

      66. 66.(1) FA 2009 is amended as follows.

      67. 67.In Schedule 1 to CTA 2010 (minor and consequential amendments)...

      68. 68.(1) TIOPA 2010 is amended as follows.

      69. 69.In FA 2011— (a) in Part 6 of Schedule 23...

      70. 70.In FA 2012, in section 169(2) (payments by certain friendly...

      71. 71.In FA 2013— (a) in paragraph 6(2) of Schedule 19...

      72. 72.In FA 2015, in section 19— (a) in subsection (1),...

      73. 73.Commencement

    2. SCHEDULE 2

      Sporting testimonial payments

      1. 1.Income tax: sporting testimonial payments treated as earnings

      2. 2.Income tax: limited exemption for sporting testimonial payments

      3. 3.Corporation tax: deductions from total profits for sporting testimonial payments and associated payments

      4. 4.Application of this Schedule

    3. SCHEDULE 3

      Employee share schemes: minor amendments

      1. 1.Enterprise management incentives and employee ownership trusts

      2. 2.Share incentive plans

      3. 3.Notification of plans and schemes to HMRC

      4. 4.(1) In Schedule 3 to ITEPA 2003 (SAYE option schemes),...

      5. 5.(1) In Schedule 4 to ITEPA 2003 (CSOP schemes), Part...

      6. 6.Price for acquisition of shares under share option

      7. 7.(1) In Schedule 4 to ITEPA 2003 (CSOP schemes), paragraph...

      8. 8.Tag-along rights

      9. 9.Exercise of EMI options

    4. SCHEDULE 4

      Pensions: lifetime allowance: transitional provision

      1. PART 1 “Fixed protection 2016”

        1. 1.The protection

        2. 2.The initial conditions

        3. 3.Protection-cessation events

        4. 4.Protection-cessation events: interpretation: “benefit accrual”

        5. 5.Protection-cessation events: interpretation: “impermissible transfer”

        6. 6.Protection-cessation events: interpretation: “permitted transfer”

        7. 7.Protection-cessation events: interpretation: “permitted circumstances”

        8. 8.Protection-cessation events: interpretation: relieved non-UK pension schemes

      2. PART 2 “Individual protection 2016”

        1. 9.The protection

        2. 10.Amount A (pre-6 April 2006 pensions in payment)

        3. 11.Amount B (pre-6 April 2016 benefit crystallisation events)

        4. 12.Amount C (uncrystallised rights at end of 5 April 2016 under registered pension schemes)

        5. 13.Amount D (uncrystallised rights at end of 5 April 2016 under relieved non-UK schemes)

      3. PART 3 Reference numbers etc

        1. 14.Issuing of reference numbers for fixed or individual protection 2016

        2. 15.Withdrawal of reference numbers

        3. 16.Appeals against non-issue or withdrawal of reference numbers

        4. 17.Notification of subsequent protection-cessation events

        5. 18.Notification of subsequent pension debits

        6. 19.Personal representatives

        7. 20.Penalties for non-supply, or fraudulent etc supply, of information under paragraph 17 or 18

      4. PART 4 Information

        1. 21.Preservation of records in connection with individual protection 2016

        2. 22.Amendments of regulations

        3. 23.In regulation 2(1) (interpretation)— (a) after the entry for “fixed...

        4. 24.(1) In the table in regulation 3(1) (provision of event...

        5. 25.(1) Regulation 11 (information provided to scheme administrator by member...

        6. 26.After regulation 14B insert— Individual protection 2016: provision of information...

        7. 27.In consequence of paragraph 24(4), in each of—

      5. PART 5 Amendments in connection with protection of pre-6 April 2006 rights

        1. 28.(1) In Part 1 of Schedule 29 to FA 2004...

      6. PART 6 Interpretation and regulations

        1. 29.Interpretation of Parts 1, 2 and 3

        2. 30.Interpretation of Parts 3 and 4 and this Part

        3. 31.Regulations

    5. SCHEDULE 5

      Pension flexibility

      1. 1.Serious ill-health lump sums

      2. 2.(1) Section 636A of ITEPA 2003 (exemption for certain lump...

      3. 3.(1) In consequence of the amendment made by paragraph 1(2),...

      4. 4.The amendments made by paragraphs 1 to 3 have effect...

      5. 5.Charity lump sum death benefits

      6. 6.Dependants’ flexi-access drawdown funds

      7. 7.Trivial commutation lump sum

      8. 8.(1) Section 636B of ITEPA 2003 (taxation of trivial commutation,...

      9. 9.The amendments made by paragraphs 7 and 8 have effect...

      10. 10.Top-up of dependants’ death benefits

      11. 11.Inheritance tax as respects cash alternatives to annuities for dependants etc

    6. SCHEDULE 6

      Deduction of income tax at source

      1. PART 1 Abolition of duty to deduct tax from interest on certain investments

        1. 1.In Chapter 2 of Part 15 of ITA 2007 (deduction...

      2. PART 2 Deduction of tax from yearly interest: exception for deposit-takers

        1. 2.In section 876 of ITA 2007 (interest paid by deposit-takers),...

      3. PART 3 Amendments of or relating to Chapter 2 of Part 15 of ITA 2007

        1. 3.Amendments of Chapter 2 of Part 15 of ITA 2007

        2. 4.For the Chapter heading substitute “Meaning of “relevant investment” for...

        3. 5.(1) Section 850 (overview of Chapter) is amended as follows....

        4. 6.Omit section 852 (power to disapply section 851).

        5. 7.In section 853(1) (meaning of “deposit-taker”), after “In this Chapter”...

        6. 8.In section 854(3) (meaning of “relevant investment” in section 851(1)(b)),...

        7. 9.For section 855(1) (meaning of “investment”) substitute—

        8. 10.(1) Section 856 (meaning of “relevant investment”) is amended as...

        9. 11.In section 857 (treating investments as being or not being...

        10. 12.Omit— (a) sections 858 to 861 (investments which are not...

        11. 13.In the italic heading preceding section 863, for “Other investments”...

        12. 14.In sections 863, 864, 865 and 868(4) (investments with deposit-takers...

        13. 15.Omit sections 868(3), 869 and 870(2) (investments with building societies)....

        14. 16.Omit section 871 (power to make regulations to give effect...

        15. 17.In section 872 (power to amend Chapter)—

        16. 18.Omit section 873(3) to (6) (interpretation of section 861).

        17. 19.Amendments relating to Chapter 2 of Part 15 of ITA 2007

        18. 20.(1) In section 564Q(1) of ITA 2007 (alternative finance return:...

        19. 21.In section 847 of ITA 2007 (overview of Part 15)—...

        20. 22.In section 946 of ITA 2007 (collection of tax deducted...

        21. 23.In Schedule 2 to ITA 2007 omit paragraphs 154 to...

        22. 24.In Schedule 4 to ITA 2007 (index of defined expressions)—...

        23. 25.In consequence of the amendments made by Part 1 of...

      4. PART 4 Deduction of tax from UK public revenue dividends

        1. 26.In section 877 of ITA 2007 (duty to deduct under...

        2. 27.(1) Chapter 5 of Part 15 of ITA 2007 (deduction...

      5. PART 5 Commencement

        1. 28.(1) The amendments made by Parts 1 and 3 of...

    7. SCHEDULE 7

      Loan relationships and derivative contracts

      1. 1.Introductory

      2. 2.Non-market loans

      3. 3.Transfer pricing

      4. 4.In section 693 (derivative contracts: bringing transfer-pricing adjustments into account),...

      5. 5.Exchange gains and losses

      6. 6.In section 448 (exchange gains and losses on debtor relationships:...

      7. 7.In section 449 (exchange gains and losses on creditor relationships:...

      8. 8.In section 451 (exception to section 449 where loan exceeds...

      9. 9.(1) Section 452 (exchange gains and losses where loan not...

      10. 10.After section 475A insert— Meaning of “matched” Meaning of “matched”...

      11. 11.(1) Section 694 (derivative contracts: exchange gains and losses) is...

      12. 12.Commencement

    8. SCHEDULE 8

      Tax relief for production of orchestral concerts

      1. PART 1 Amendment of CTA 2009

        1. 1.After Part 15C of CTA 2009 insert— PART 15D Orchestra...

      2. PART 2 Consequential amendments

        1. 2.ICTA

        2. 3.FA 1998

        3. 4.In paragraph 10 (other claims and elections to be included...

        4. 5.(1) Paragraph 52 (recovery of excessive repayments etc) is amended...

        5. 6.In Part 9D (certain claims for tax relief)—

        6. 7.CAA 2001

        7. 8.FA 2007

        8. 9.CTA 2009

        9. 10.In section 1310 of CTA 2009 (orders and regulations), in...

        10. 11.In Schedule 4 to CTA 2009 (index of defined expressions),...

        11. 12.FA 2009

        12. 13.CTA 2010

        13. 14.In Part 8B of CTA 2010, after section 357UI insert—...

        14. 15.(1) Schedule 4 to CTA 2010 (index of defined expressions)...

      3. PART 3 Commencement

        1. 16.Any power to make regulations conferred on the Treasury by...

        2. 17.(1) The amendments made by the following provisions of this...

        3. 18.(1) The amendments made by paragraphs 13 to 15 of...

    9. SCHEDULE 9

      Profits from the exploitation of patents etc: consequential

      1. 1.CTA 2010 is amended in accordance with this Schedule.

      2. 2.In section 357B (meaning of “qualifying company”), in subsection (3)(b)(ii),...

      3. 3.In the heading of Chapter 3 of Part 8A, after...

      4. 4.(1) Section 357C (relevant IP profits) is amended as follows....

      5. 5.In section 357CA (total gross income of a trade), in...

      6. 6.Omit sections 357CB to 357CF.

      7. 7.(1) Section 357CG (adjustments in calculating profits of trade) is...

      8. 8.In section 357CI (routine return figure), in Step 1 in...

      9. 9.Omit sections 357CJ and 357CK.

      10. 10.(1) Section 357CL (companies eligible to elect for small claims...

      11. 11.In section 357CM (small claims amount), in subsection (1), for...

      12. 12.(1) Section 357D (alternative method of calculating relevant IP profits:...

      13. 13.(1) Section 357DA (relevant IP profits) is amended as follows....

      14. 14.(1) Section 357DC (the mandatory streaming conditions) is amended as...

      15. 15.In section 357EB (allocation of set-off amount within a group)...

      16. 16.In section 357ED (company ceasing to carry on trade etc)...

      17. 17.In section 357FA (incorporation of qualifying items), in subsection (2),...

      18. 18.In section 357FB (tax advantage schemes) in subsection (4)(b) for...

      19. 19.(1) Section 357G (making an election under section 357A) is...

      20. 20.(1) Section 357GA (revocation of election made under section 357A)...

      21. 21.(1) Section 357GB (application of Part 8A in relation to...

      22. 22.In section 357GC (application of Part 8A in relation to...

      23. 23.(1) Section 357GE (other interpretation) is amended as follows.

      24. 24.In Schedule 4 (index of defined expressions)—

    10. SCHEDULE 10

      Hybrid and other mismatches

      1. PART 1 Main provisions

        1. 1.In TIOPA 2010, after Part 6 insert— PART 6A Hybrid...

      2. PART 2 Consequential amendments

        1. 2.FA 1998

        2. 3.In paragraph 25(3)— (a) insert “or” at the end of...

        3. 4.In paragraph 42(4)— (a) insert “or” at the end of...

        4. 5.CTA 2009

        5. 6.CTA 2010

        6. 7.In section 938N (group mismatch schemes: priority)—

        7. 8.In section 938V (tax mismatch schemes: priority)—

        8. 9.TIOPA 2010

        9. 10.In section 1 (overview of Act), in subsection (1)—

        10. 11.In section 157 (direct participation), in subsection (1)—

        11. 12.In section 158 (indirect participation: defined by sections 159 to...

        12. 13.In section 159 (indirect participation: potential direct participant), in subsection...

        13. 14.In section 160 (indirect participation: one of several major participants),...

        14. 15.Omit Part 6 (tax arbitrage).

        15. 16.Omit Part 4 of Schedule 11 (tax arbitrage: index of...

        16. 17.After that Part of that Schedule insert— PART 4A Hybrid...

      3. PART 3 Commencement

        1. 18.Chapters 3 to 5 and 7 and 8 of Part...

        2. 19.Chapter 6 of Part 6A of TIOPA 2010 (counteraction of...

        3. 20.Chapters 9 and 10 of Part 6A of TIOPA 2010...

        4. 21.Chapter 11 of Part 6A of TIOPA 2010 (imported mismatch...

        5. 22.The following provisions of this Schedule have effect in relation...

        6. 23.For the purposes of paragraph 18 and 21, where a...

        7. 24.For the purposes of paragraphs 19, 20 and 22(b), where...

        8. 25.In this Part of this Schedule “the commencement date” means...

    11. SCHEDULE 11

      Disposals of non-UK residential property interests

      1. 1.TCGA 1992 is amended in accordance with this Schedule.

      2. 2.In section 14B(1) (meaning of “non-resident CGT disposal”), in paragraph...

      3. 3.Omit section 14C (which introduces Schedule B1 and is superseded...

      4. 4.In Schedule B1 (disposals of UK residential property interests), in...

      5. 5.After Schedule B1 insert— SCHEDULE BA1 Disposals of non-UK residential...

    12. SCHEDULE 12

      Disposals of residential property interests: gains and losses

      1. 1.TCGA 1992 is amended in accordance with this Schedule.

      2. 2.In section 57A(3) (gains and losses on relevant high value...

      3. 3.After section 57B insert— CHAPTER 7 Computation of gains and...

      4. 4.In Schedule B1 (disposals of UK residential property interests), in...

      5. 5.After Schedule 4ZZB insert— SCHEDULE 4ZZC Disposals of residential property...

    13. SCHEDULE 13

      Entrepreneurs’ relief: “trading company” and “trading group”

      1. 1.TCGA 1992 is amended as follows.

      2. 2.In section 169H(7) (introduction), for “Section 169S contains” substitute “Sections...

      3. 3.In section 169S (interpretation of Chapter), subsection (4A) is treated...

      4. 4.After section 169S insert— Meaning of “trading company” and “trading...

      5. 5.After Schedule 7 insert— SCHEDULE 7ZA Entrepreneurs’ relief: “trading company”...

      6. 6.(1) The amendments made by this Schedule (except paragraph 3)...

    14. SCHEDULE 14

      Investors’ relief

      1. 1.(1) In the heading to Part 5 of TGCA 1992,...

      2. 2.In Part 5 of TCGA 1992, after section 169V insert—...

      3. 3.After Schedule 7ZA of TCGA 1992 (inserted by Schedule 13)...

    15. SCHEDULE 15

      Inheritance tax: increased nil-rate band

      1. 1.IHTA 1984 is amended as follows.

      2. 2.(1) Section 8D (extra nil-rate band on death if interest...

      3. 3.(1) Section 8E (residence nil-rate amount: interest in home goes...

      4. 4.In section 8F(4) (list of other relevant sections)—

      5. 5.After section 8F insert— Downsizing addition: entitlement: low-value death interest...

      6. 6.In section 8G (meaning of “brought-forward allowance”), in subsection (3)(a),...

      7. 7.(1) Section 8H (meaning of “qualifying residential interest”) is amended...

      8. 8.After section 8H insert— Qualifying former residential interest”: interests in...

      9. 9.In section 8J (meaning of “inherited”), in subsection (1), for...

      10. 10.In section 8K (meaning of “closely inherited”), in subsection (1),...

      11. 11.In section 8L (claims for brought-forward allowance)—

      12. 12.(1) Section 8M (residence nil-rate amount: cases involving conditional exemption)...

    16. SCHEDULE 16

      Property authorised investment funds and co-ownership authorised contractual schemes

      1. PART 1 Co-ownership authorised contractual schemes

        1. 1.In FA 2003, after section 102 insert— Co-ownership authorised contractual...

      2. PART 2 Seeding relief for property authorised investment funds and co-ownership authorised contractual schemes

        1. 2.FA 2003 is amended in accordance with this Part.

        2. 3.After section 65 insert— PAIF seeding relief and COACS seeding...

        3. 4.After Schedule 7 insert— SCHEDULE 7A Paif seeding relief and...

      3. PART 3 Consequential amendments

        1. 5.FA 2003 is amended in accordance with this Part.

        2. 6.In section 75C (anti-avoidance: supplemental), in subsection (4), after “Schedule...

        3. 7.(1) Section 81 (further return where relief withdrawn) is amended...

        4. 8.In section 86 (payment of tax), in subsection (2)—

        5. 9.(1) Section 87 (interest on unpaid tax) is amended as...

        6. 10.In section 118 (market value)— (a) the existing text becomes...

        7. 11.In section 122 (index of defined expressions), at the appropriate...

        8. 12.In Schedule 4A (SDLT: higher rate for certain transactions), in...

        9. 13.In Schedule 6B (transfers involving multiple dwellings), in paragraph 2(4)(b),...

        10. 14.(1) In Schedule 17A (further provisions relating to leases), paragraph...

      4. PART 4 Commencement

        1. 15.(1) The amendments made by Parts 2 and 3 of...

    17. SCHEDULE 17

      Aqua methanol etc

      1. PART 1 Aqua methanol

        1. 1.Introductory

        2. 2.Definition

        3. 3.In section 2A (power to amend definitions), in subsection (1),...

        4. 4.Charging of excise duty

        5. 5.In section 6A (fuel substitutes), in subsection (1)—

        6. 6.Mixing of aqua methanol

        7. 7.Enforcement

        8. 8.Consequential amendments

        9. 9.In section 27(1) (interpretation), before the definition of “aviation gasoline”...

        10. 10.In section 16 of FA 1994 (appeals to a tribunal),...

        11. 11.In paragraph 3 of Schedule 41 to FA 2008 (penalties...

      2. PART 2 Hydrocarbon oils: miscellaneous amendments

        1. 12.HODA 1979

        2. 13.FA 1994

      3. PART 3 Commencement

        1. 14.The amendments made by this Schedule come into force—

    18. SCHEDULE 18

      Serial tax avoidance

      1. PART 1 Contents of Schedule

        1. 1.In this Schedule— (a) Part 2 provides for HMRC to...

      2. PART 2 Entry into the regime and basic concepts

        1. 2.Duty to give warning notice

        2. 3.Warning period

        3. 4.Meaning of “tax”

        4. 5.Meaning of “tax advantage” in relation to VAT

        5. 6.Meaning of “non-deductible tax”

        6. 7.“Tax advantage”: other taxes

        7. 8.DOTAS arrangements”

        8. 9.“Disclosable VAT arrangements”

        9. 10.Paragraphs 8 and 9: “failure to comply”

        10. 11.“Relevant defeat”

        11. 12.Condition A

        12. 13.Condition B

        13. 14.Condition C

        14. 15.Condition D

        15. 16.Condition E

      3. PART 3 Annual information notices and naming

        1. 17.Annual information notices

        2. 18.Naming

      4. PART 4 Restriction of reliefs

        1. 19.Duty to give a restriction relief notice

        2. 20.Restriction of relief

        3. 21.The restricted period

        4. 22.Reasonable excuse

        5. 23.Mitigation of restriction of relief

        6. 24.Appeal

        7. 25.Meaning of “avoidance-related rule”

        8. 26.Meaning of “relief”

        9. 27.“Claim” for relief

        10. 28.VAT

        11. 29.Power to amend

      5. PART 5 Penalty

        1. 30.Penalty

        2. 31.Simultaneous defeats etc

        3. 32.Value of the counteracted advantage: basic rule for taxes other than VAT

        4. 33.Value of counteracted advantage: losses for purposes of direct tax

        5. 34.Value of counteracted advantage: deferred tax

        6. 35.Meaning of “the counteracted advantage” in paragraphs 33 and 34

        7. 36.Value of the counteracted advantage: Conditions D and E

        8. 37.Value of counteracted advantage: delayed VAT

        9. 38.Assessment of penalty

        10. 39.Alteration of assessment of penalty

        11. 40.Aggregate penalties

        12. 41.Appeal against penalty

        13. 42.Penalties: reasonable excuse

        14. 43.Paragraph 42: meaning of “the relevant failure”

        15. 44.Mitigation of penalties

      6. PART 6 Corporate groups, associated persons and partnerships

        1. 45.Representative member of a VAT group

        2. 46.Corporate groups

        3. 47.Associated persons treated as incurring relevant defeats

        4. 48.Meaning of “associated”

        5. 49.Partners treated as incurring relevant defeats

        6. 50.Partnership returns to which this paragraph applies

        7. 51.Partnerships: information

        8. 52.Partnerships: special provision about taxpayer emendations

        9. 53.Supplementary provision relating to partnerships

      7. PART 7 Supplemental

        1. 54.Meaning of “adjustments”

        2. 55.Time of “use” of defeated arrangements

        3. 56.Inheritance tax

        4. 57.National insurance contributions

        5. 58.General interpretation

        6. 59.Consequential amendments

        7. 60.In section 212 of FA 2014 (follower notices: aggregate penalties),...

        8. 61.(1) The Social Security Contributions and Benefits Act 1992 is...

        9. 62.In the Social Security Contributions and Benefits (Northern Ireland) Act...

        10. 63.Commencement

        11. 64.(1) A relevant defeat is to be disregarded for the...

        12. 65.(1) A warning notice given to a person is to...

    19. SCHEDULE 19

      Large businesses: tax strategies and sanctions

      1. PART 1 Interpretation

        1. 1.Purpose of Part 1

        2. 2.“Relevant body”

        3. 3.“UK company”

        4. 4.“UK permanent establishment”

        5. 5.“Qualifying company”

        6. 6.“Group” and related expressions

        7. 7.(1) “MNE Group” has the same meaning (subject to sub-paragraph...

        8. 8.(1) A “group other than an MNE group” means a...

        9. 9.A group is headed by whichever relevant body within the...

        10. 10.“Qualifying group”

        11. 11.“UK sub-group” and “head” (in relation to a UK sub-group)

        12. 12.“UK partnership”, “qualifying partnership” and “representative partner”

        13. 13.“Financial year”

        14. 14.“Turnover” and “balance sheet total”

        15. 15.“UK taxation”

      2. PART 2 Publication of tax strategies

        1. 16.Qualifying UK groups: duty to publish a group tax strategy

        2. 17.Content of group tax strategy

        3. 18.Penalty for non-compliance with paragraph 16

        4. 19.UK sub-groups: duty to publish a sub-group tax strategy

        5. 20.Content of a sub-group tax strategy

        6. 21.Penalty for non-compliance with requirements of paragraph 19

        7. 22.Qualifying companies: duty to publish a company tax strategy

        8. 23.Content of a company tax strategy

        9. 24.Penalty for non-compliance with paragraph 22

        10. 25.Qualifying partnerships: duty to publish a partnership tax strategy

        11. 26.Penalties under this Part: general provisions

        12. 27.Failure to comply with a time limit

        13. 28.Reasonable excuse

        14. 29.Assessment of penalties

        15. 30.Appeal

        16. 31.Enforcement

        17. 32.Power to change amount of penalties

        18. 33.Application of provisions of TMA 1970

        19. 34.Meaning of “tax strategy”

      3. PART 3 Sanctions for persistently unco-operative large businesses

        1. 35.Large groups falling within Part 3

        2. 36.(1) A UK group has “engaged in unco-operative behaviour” if—...

        3. 37.(1) A member of a UK group has, or two...

        4. 38.(1) A member of a UK group has “satisfied the...

        5. 39.(1) There is a significant tax issue in respect of...

        6. 40.The references in paragraphs 36 to 39 to things done...

        7. 41.Warning notices

        8. 42.Special measures notices

        9. 43.(1) A special measures notice— (a) may be withdrawn by...

        10. 44.(1) This paragraph applies to a UK group if—

        11. 45.(1) This paragraph applies in relation to a UK group...

        12. 46.Circumstances in which warning and special measures notices are treated as having been given

        13. 47.Sanctions: liability for penalties for errors in documents given to HMRC

        14. 48.In Schedule 24 to FA 2007 (penalties for errors), at...

        15. 49.Sanctions: Commissioners publishing information

        16. 50.Application of Part 3 to large UK sub-groups

        17. 51.Application of Part 3 to large companies

        18. 52.Application of Part 3 to large partnerships

        19. 53.Meaning of “designated HMRC officer”

      4. PART 4 Supplementary

        1. 54.Amendment of power under section 122 of FA 2015

        2. 55.Regulations

    20. SCHEDULE 20

      Penalties for enablers of offshore tax evasion or non-compliance

      1. PART 1 Liability for penalty

        1. 1.Liability for penalty

        2. 2.Meaning of “involving offshore activity” and related expressions

        3. 3.Amount of penalty

        4. 4.Potential lost revenue: enabling Q to commit relevant offence

        5. 5.Potential lost revenue: enabling Q to engage in conduct incurring relevant civil penalty

        6. 6.Treatment of potential lost revenue attributable to both offshore tax evasion or non-compliance and other tax evasion or non-compliance

        7. 7.Reduction of penalty for disclosure etc by P

        8. 8.(1) This paragraph applies for the purposes of paragraph 7....

        9. 9.(1) If they think it right because of special circumstances,...

        10. 10.Procedure for assessing penalty, etc

        11. 11.An assessment of a person as liable to a penalty...

        12. 12.Appeals

        13. 13.(1) An appeal under paragraph 12 is to be treated...

        14. 14.(1) On an appeal under paragraph 12(a) that is notified...

        15. 15.Double jeopardy

        16. 16.Application of provisions of TMA 1970

        17. 17.Interpretation of Part 1

      2. PART 2 Application of Schedule 36 to FA 2008: information powers

        1. 18.General application of information and inspection powers to suspected enablers

        2. 19.General modifications

        3. 20.Specific modifications

        4. 21.In the application of Schedule 36 to FA 2008 for...

      3. PART 3 Publishing details of persons found liable to penalties

        1. 22.Naming etc of persons assessed to penalty or penalties under paragraph 1

        2. 23.(1) The Treasury may by regulations amend paragraph 22(1) to...

    21. SCHEDULE 21

      Penalties relating to offshore matters and offshore transfers

      1. 1.Amendments to Schedule 24 to the Finance Act 2007 (c. 11)

      2. 2.(1) Paragraph 9 (reductions for disclosure) is amended as follows....

      3. 3.In paragraph 10 (amount of reduction for disclosure), for the...

      4. 4.After paragraph 10 insert— (1) If a person who would otherwise be liable to...

      5. 5.Amendments to Schedule 41 to the Finance Act 2008 (c. 9)

      6. 6.(1) Paragraph 12 (reductions for disclosure) is amended as follows....

      7. 7.In paragraph 13 (amount of reduction for disclosure), for the...

      8. 8.After paragraph 13 insert— (1) If a person who would otherwise be liable to...

      9. 9.Amendments to Schedule 55 to the Finance Act 2009 (c.10)

      10. 10.(1) Paragraph 14 (reductions for disclosure) is amended as follows....

      11. 11.In paragraph 15 (amount of reduction for disclosure), for the...

      12. 12.After paragraph 15 insert— (1) If a person who would otherwise be liable to...

    22. SCHEDULE 22

      Asset-based penalty for offshore inaccuracies and failures

      1. PART 1 Liability for penalty

        1. 1.Circumstances in which asset-based penalty is payable

        2. 2.Meaning of standard offshore tax penalty

        3. 3.Tax year to which standard offshore tax penalty relates

        4. 4.Potential lost revenue threshold

        5. 5.Offshore PLR

        6. 6.Restriction on imposition of multiple asset-based penalties in relation to the same asset

      2. PART 2 Amount of penalty

        1. 7.Standard amount of asset-based penalty

        2. 8.Reductions for disclosure and co-operation

        3. 9.Special reduction

      3. PART 3 Identification and valuation of assets

        1. 10.Introduction

        2. 11.Capital gains tax

        3. 12.Inheritance tax

        4. 13.Asset-based income tax

        5. 14.Jointly held assets

      4. PART 4 Procedure

        1. 15.Assessment

        2. 16.Appeal

        3. 17.(1) An appeal is to be treated in the same...

        4. 18.(1) On an appeal under paragraph 16(1), the tribunal may...

      5. PART 5 General

        1. 19.Interpretation

        2. 20.Consequential amendments etc

        3. 21.Section 97A of TMA 1970 (two or more tax-geared penalties...

    23. SCHEDULE 23

      Simple assessments

      1. 1.TMA 1970 is amended in accordance with paragraphs 2 to...

      2. 2.In section 7 (notice of liability to income tax and...

      3. 3.After section 28G (determination of amount notionally chargeable where no...

      4. 4.In section 31 (appeals: right to appeal), before subsection (4)...

      5. 5.(1) Section 31A (appeals: notice of appeal) is amended as...

      6. 6.After section 31A (notice of appeal) insert— Taxpayer’s right to...

      7. 7.(1) Section 59B (payment of income tax and capital gains...

      8. 8.After section 59B insert— Payment of income tax and capital...

      9. 9.(1) Schedule 56 to FA 2009 (penalty for failure to...

    24. SCHEDULE 24

      Tax advantages constituting the grant of state aid

      1. PART 1 Tax advantages to which section 180(2)applies

        1. Enhanced capital allowances

        2. Creative tax reliefs

        3. Research and development reliefs

      2. PART 2 Tax advantages to which section 180(5) applies

    25. SCHEDULE 25

      Office of Tax Simplification

      1. 1.Membership

      2. 2.Term of office

      3. 3.Appointment of initial members

      4. 4.Termination of appointments

      5. 5.(1) The Chancellor of the Exchequer may terminate the appointment...

      6. 6.Remuneration

      7. 7.Provision of staff and facilities etc.

      8. 8.Validity of proceedings

      9. 9.The validity of anything done by the OTS is not...

      10. 10.Supplementary powers

      11. 11.Finance

      12. 12.Disqualification

      13. 13.In Part 2 of Schedule 1 to the Northern Ireland...

      14. 14.Freedom of information

      15. 15.Public sector equality duty

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