National Insurance Contributions Act 2014

Application of general anti-abuse rule to national insurance contributions

10 GAAR to apply to national insurance contributions

(1) In Part 5 of the Finance Act 2013 (general anti-abuse rule)—

(a) references to tax, other than in references to particular taxes, include national insurance contributions, and

(b) references to a charge to tax include a liability to pay national insurance contributions.

(2) Section 206(3) of that Act (list of taxes to which the general anti-abuse rule applies) has effect as if it included a reference to national insurance contributions.

(3) Section 207 of that Act (meaning of “tax arrangements” and “abusive”) has effect as if, in subsection (4)(a), after “income,” there were inserted “earnings (within the meaning of Part 1 of the Social Security Contributions and Benefits Act 1992 or Part 1 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992),”.

(4) Adjustments to be made in respect of national insurance contributions under section 209 of the Finance Act 2013 (counteracting the tax advantages) may be made by a notice given under paragraph 12 of Schedule 43 to that Act (notice of final decision).

(5) For the purposes of section 210 of that Act (consequential relieving adjustments)—

(a) if a claim under that section relates to Class 4 national insurance contributions, Schedule 1A to the Taxes Management Act 1970 (as that Schedule applies in relation to such contributions) applies to it, and

(b) if a claim under that section relates to any other class of national insurance contributions, it must be made in such form and manner, and contain such information, as HMRC may require.

(6) Adjustments to be made in respect of national insurance contributions under that section may be made by a notice given under subsection (7) of that section.

(7) This section has effect in relation to tax arrangements (within the meaning of Part 5 of the Finance Act 2013 as modified by this section) entered into on or after the day on which this Act is passed.

(8) Subsections (9) and (10) apply where the tax arrangements—

(a) would not have been tax arrangements but for the modifications made by this section, and

(b) form part of other arrangements entered into before the day on which this Act is passed.

(9) The other arrangements are to be ignored for the purposes of section 207(3) of the Finance Act 2013, subject to subsection (10).

(10) Account is to be taken of the other arrangements for the purposes of that section if, as a result, the tax arrangements would not be abusive.

(11) In this section—

• “abusive”, “arrangements” and “HMRC” have the same meaning as in Part 5 of the Finance Act 2013;

• “national insurance contributions” means contributions under either Part 1 of SSCBA 1992 or Part 1 of SSCB(NI)A 1992.

11 Power to modify application of GAAR to national insurance contributions

(1) Where a modification is made to Part 5 of the Finance Act 2013 (general anti-abuse rule) that does not apply in relation to national insurance contributions (“the tax only modification”), the Treasury may by regulations—

(a) make provision for the purpose of applying the tax only modification in relation to national insurance contributions (with or without modifications),

(b) make provision in relation to national insurance contributions corresponding to the tax only modification, or

(c) otherwise modify the general anti-abuse rule, as it has effect in relation to national insurance contributions, in consequence of, or for the purpose of making provision supplementary or incidental to, the tax only modification.

(2) Regulations under this section—

(a) may amend, repeal or revoke any provision of an Act or instrument made under an Act (whenever passed or made),

(b) may make consequential, incidental, supplementary, transitional, transitory or saving provision, and

(c) may make different provision for different cases, classes of national insurance contributions or purposes.

(3) Regulations under this section must be made by statutory instrument.

(4) A statutory instrument containing (with or without other provision) regulations under this section that amend or repeal a provision of an Act may not be made unless a draft has been laid before, and approved by a resolution of, each House of Parliament.

(5) A statutory instrument containing regulations under this section that does not have to be approved in draft under subsection (4) is subject to annulment in pursuance of a resolution of either House of Parliament.

(6) In this section—

• “general anti-abuse rule” has the same meaning as in Part 5 of the Finance Act 2013;

• “national insurance contributions” means contributions under either Part 1 of SSCBA 1992 or Part 1 of SSCB(NI)A 1992.