The Tax Avoidance Schemes (Miscellaneous Amendments) Regulations 2017

Statutory Instruments

2017 No. 1171

Taxes

The Tax Avoidance Schemes (Miscellaneous Amendments) Regulations 2017

Made

29th November 2017

Laid before the House of Commons

30th November 2017

Coming into force

21st December 2017

These Regulations are made by the Treasury and the Commissioners for Her Majesty’s Revenue and Customs.

The powers exercised by the Treasury are those conferred by sections 306(1)(a) and (b) and 317(2)(1) of the Finance Act 2004(2).

The powers exercised by the Commissioners for Her Majesty’s Revenue and Customs are those conferred by section 313(1) and (3)(b)(3) and 317(2) of the Finance Act 2004.

Citation, commencement and effect

1.—(1) These Regulations may be cited as the Tax Avoidance Schemes (Miscellaneous Amendments) Regulations 2017 and come into force on 21st December 2017.

(2) These Regulations do not have effect—

(a) for the purposes of section 308(1) of the Finance Act 2004 (duties of promoter relating to any notifiable proposal), if the relevant date falls before 21st December 2017;

(b) for the purposes of section 308(3) of the Finance Act 2004 (duties of promoter relating to any notifiable arrangements), if the date on which the promoter first becomes aware of any transaction forming part of notifiable arrangements falls before 21st December 2017;

(c) for the purposes of section 309(1) of the Finance Act 2004 (duty of person dealing with promoter outside United Kingdom), and of section 310 of that Act (duty of parties to notifiable arrangements not involving promoter), if the date on which any transaction forming part of notifiable arrangements is entered into falls before 21st December 2017.

(3) In paragraph (2)(a) “the relevant date” has the meaning given by section 308(2) of the Finance Act 2004.

Amendment of the Tax Avoidance Schemes (Prescribed Descriptions of Arrangements) Regulations 2006

2.  The Tax Avoidance Schemes (Prescribed Descriptions of Arrangements) Regulations 2006(4) are amended as follows.

3.  In regulation 5 (prescribed descriptions of arrangements)(5), after paragraph (1)(b) insert—

“(c) in relation to the apprenticeship levy, any arrangements which fall within any description specified in a provision of these Regulations listed in paragraph (2)(a), (b), (c) or (e).”.

4.  In paragraph (4) of regulation 18 (description 8: employment income provided through third parties)(6), for “554X” substitute “554XA”.

Amendment of the Tax Avoidance Schemes (Information) Regulations 2012

5.  The Tax Avoidance Schemes (Information) Regulations 2012(7) are amended as follows.

6.  In paragraph (2) of regulation 2 (interpretation)(8), in the definition of “the prescribed taxes”, after “means” insert “the apprenticeship levy,”.

7.  In regulation 10 (prescribed cases under section 313(3)(b))(9), after paragraph (6A) insert—

“(6B) In the case of a person who expects an advantage to arise in respect of that person’s liability to pay, entitlement to a repayment of, or deferment of the liability to pay, the apprenticeship levy as a result of notifiable arrangements, the prescribed information shall be provided separately to HMRC in such form and manner as they may specify.”.

8.  In regulation 12 (time for providing information under section 313(3)(b))(10), after paragraph (5A) insert—

“(5B) In the case of regulation 10(6B) 14 days after the end of the final tax period in respect of the tax year in which any person first enters into a transaction forming part of the notifiable arrangements and on the same date in each subsequent year until an advantage ceases to apply to any person.

(5C) In paragraph (5B) “tax period” has the meaning given in regulation 2(1) (interpretation) of the Income Tax (Pay As You Earn) Regulations 2003(11).”.

Andrew Griffiths

David Evennett

Two of the Lords Commissioners for Her Majesty’s Treasury

29th November 2017

Edward Troup

Nick Lodge

Two of the Lords Commissioners of Her Majesty’s Revenue and Customs

29th November 2017

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Tax Avoidance Schemes (Prescribed Descriptions of Arrangements) Regulations 2006 (S.I. 2006/1543) (“the Hallmark Regulations”) and the Tax Avoidance (Information) Regulations 2012 (“the Information Regulations”) so as to extend the scope of these Regulations to include the apprenticeship levy and to make other consequential amendments.

Regulation 1 provides for citation and commencement.

Regulation 2 introduces the amendments to the Hallmark Regulations.

Regulation 3 amends regulation 5 of the Hallmark Regulations so as to extend the scope of those Regulations to include the apprenticeship levy.

Regulation 4 makes consequential amendments to regulation 18 of the Hallmark Regulations in consequence of changes made to Part 7A of the Income Tax (Earnings and Pensions) Act 2003 by virtue of section 15 of, and paragraphs 1 and 9 of Schedule 6 to, the Finance Act 2017 (c. 10).

Regulation 5 introduces the amendments to the Information Regulations.

Regulation 6 amends the meaning of “prescribed taxes” so as to extend the scope of the Information Regulations to include the apprenticeship levy.

Regulation 7 amends regulation 10 of the Information Regulations so as to provide that HMRC may specify the form and manner in which a person must provide information, where that person expects an advantage to arise in respect of the apprenticeship levy.

Regulation 8 amends regulation 12 of the Information Regulations so as to provide time limits for providing information.

A Tax Information and Impact Note covering this instrument was published on 4th February 2016 alongside draft apprenticeship levy Finance Bill 2016 Clauses and Explanatory Notes and is available on the website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins. It remains an accurate summary of the impacts that apply to this instrument.

(1)

Section 317(2) was amended by section 56 and paragraphs 1 and 8 of Schedule 17 to the Finance Act 2010 (c. 13).

(2)

2004 c. 12.

(3)

Section 313(1) and (3) were amended by section 116(1) and paragraphs 1 and 5 of Schedule 38 to the Finance Act 2008 (c. 9). The functions of the Commissioners of Inland Revenue (“the Board”) were transferred to the Commissioners for Her Majesty’s Revenue and Customs by section 5(2) of the Commissioners for Revenue and Customs Act 2005 (c.11). Section 50(1) of that Act provides that the reference in an enactment, instrument or other document to the Commissioners of Inland Revenue, however expressed, shall be taken as a reference to the Commissioners for Her Majesty’s Revenue and Customs.

(4)

S.I. 2006/1543.

(5)

Regulation 5 was amended by S.I. 2009/2033, S.I. 2013/2595 and S.I. 2016/99.

(6)

Regulation 18 was substituted for regulation 17A by S.I. 2013/2595.

(7)

S.I. 2012/1836.

(8)

Regulation 2 was amended by S.I. 2013/2592.

(9)

Paragraph (6A) was inserted by S.I. 2013/2592.

(10)

Paragraph (5A) was inserted by S.I. 2013/2592.

(11)

S.I. 2003/2682. The definition of “tax period” was amended by S.I. 2013/521.