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Finance (No. 2) Act 2017 is up to date with all changes known to be in force on or before 12 December 2024. There are changes that may be brought into force at a future date.
Revised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the affected provisions when you open the content using the Table of Contents below.
PART 4 Administration, avoidance and enforcement
SCHEDULES
Trades and property businesses: calculation of profits
PART 1 Trades etc: amendments of ITTOIA 2005
2.For section 33A (cash basis: capital expenditure) substitute— Cash basis:...
4.(1) Section 96A (cash basis: capital receipts) is amended as...
5.After section 96A insert— Section 96A: supplementary provision (1) This section has effect for the purposes of section...
6.In section 106D (capital receipts), for “(cash basis: capital receipts)”...
7.(1) Section 240C (unrelieved qualifying expenditure) is amended as follows....
8.After section 240C insert— Unrelieved qualifying expenditure: Part 5 of...
9.(1) Section 240D (assets not fully paid for) is amended...
10.In section 786(6) (meaning of “rent-a-room receipts”), for “(capital receipts)”...
11.In section 805(5) (meaning of “qualifying care receipts”), for “(capital...
PART 2 Property businesses: amendments of ITTOIA 2005
13.In Chapter 3 of Part 3 (profits of property businesses:...
15.After that italic heading insert— Profits of a property business:...
16.(1) Section 272 (profits of a property business: application of...
17.After section 272 insert— Application of trading income rules: cash...
18.After section 272ZA insert— “ Calculation of profits: other general...
19.In section 272A (restricting deductions for finance costs related to...
20.(1) Section 274 (relationship between rules prohibiting and allowing deductions)...
21.In section 276(5) (introduction: profits of property businesses: lease premiums...
22.After section 276 insert— Application of Chapter to property businesses...
23.In Chapter 5 of Part 3 (profits of property businesses:...
24.In section 311A (replacement domestic items relief), in subsection (15)—...
25.In section 315 (deduction for expenditure on sea walls), after...
26.In section 322 (commercial letting of furnished holiday accommodation), after...
27.After section 329 insert— Application of Chapter where cash basis...
28.In section 331 (income charged)— (a) the existing text becomes...
29.After section 334 insert— Spreading of adjustment income on leaving...
30.In section 351 (income charged), after subsection (2) insert—
31.In section 353 (basic meaning of “post-cessation receipt”), after subsection...
32.In section 356 (application to businesses within the charge to...
33.In section 786 (meaning of “rent-a-room receipts”), after subsection (6)...
34.In section 860 (adjustment income), in subsection (5), after “Chapter...
35.In section 866 (employee benefit contributions: non-trades and non-property businesses),...
36.In section 867 (business entertainment and gifts: non-trades and non-property...
37.In section 868 (social security contributions: non-trades etc), in subsection...
38.In section 869 (penalties, interest and VAT surcharges: non-trades etc),...
39.In section 870 (crime-related payments: non-trades and non-property businesses), in...
40.In section 872 (losses calculated on same basis as miscellaneous...
41.In Part 2 of Schedule 4 (index of defined expressions),...
PART 3 Trades etc: amendments of other Acts
49.In section 1 (capital allowances), omit subsections (4) and (5)....
50.After section 1 insert— Capital allowances and charges: cash basis...
51.(1) Section 4 (capital expenditure) is amended as follows.
52.(1) Section 59 (unrelieved qualifying expenditure) is amended as follows....
53.(1) Section 66A (persons leaving cash basis) is amended as...
54.After section 419 insert— Unrelieved qualifying expenditure: entry to cash...
55.After section 431C insert— Persons leaving cash basis (1) This section applies if— (a) a person carrying on...
56.After section 461 insert— Unrelieved qualifying expenditure: entry to cash...
57.After section 462 insert— Persons leaving cash basis (1) This section applies if— (a) a person carrying on...
58.After section 475 insert— Unrelieved qualifying expenditure: entry to cash...
59.After section 477 insert— Persons leaving cash basis (1) This section applies if— (a) a person carrying on...
Trading and property allowances
PART 2 Consequential amendments
2.ITTOIA 2005 is amended in accordance with paragraphs 3 to...
3.In section 1 (overview of Act), before paragraph (a) of...
6.In section 227A (application of Chapter where cash basis used),...
7.After section 227A insert— Cash basis treatment: full relief under...
8.After section 307F (inserted by Schedule 2 to this Act)...
10.In section 828 (overlap profit), in subsection (3), for “section...
Relief for carried-forward losses
PART 1 Amendment of general rules about carrying forward losses
PART 2 Restriction on deductions in respect of carried-forward losses
16.After section 269 insert— PART 7ZA Restrictions on obtaining certain...
18.(1) Section 269CA (restriction on deductions for pre-1 April 2015...
19.(1) Section 269CB (restriction on deductions for pre-1 April 2015...
20.(1) Section 269CC (restriction on deductions for pre-1 April 2015...
22.(1) Section 269CN (definitions for the purposes of Part 7A)...
PART 4 Insurance companies: carrying forward BLAGAB trade losses
PART 5 Carrying forward trade losses in certain creative industries
48.After section 303 insert— Introduction to sections 303B to 303D:...
52.(1) Section 321 (supplement in respect of a post-commencement period)...
53.(1) Section 323 (meaning of “ring fence losses”) is amended...
54.For section 327 substitute— Reductions in respect of relief for...
55.In section 328A (adjustment of pool to remove pre-2013 losses...
62.In section 940A (overview of Chapter) in subsection (4) for...
63.Before section 944 (but after the italic heading preceding that...
64.(1) Section 944 (modified application of Chapter 2 of Part...
65.After section 944 insert— Modified application of section 45A (1) Subsection (2) applies if— (a) this Chapter applies to...
66.In section 945 (cases in which predecessor retains more liabilities...
67.(1) Section 951 (part of trade treated as separate trade)...
68.In section 952 (apportionment if part of trade treated as...
71.In section 672 (overview of Part) after subsection (1) insert—...
72.(1) Section 673 (introduction to Chapter 2: disallowance of trading...
73.(1) Section 674 (disallowance of trading losses) is amended as...
74.After section 674 insert— Section 674: exception for certain losses...
75.After Chapter 2 insert— CHAPTER 2A Post-1 April 2017 losses:...
76.After Chapter 2A insert— CHAPTER 2B Asset transferred within group:...
77.After Chapter 2B insert— CHAPTER 2C Disallowance of group relief...
78.After Chapter 2C insert— CHAPTER 2D Asset transferred within group:...
79.After Chapter 2D insert— CHAPTER 2E Post-1 April 2017 trade...
80.(1) Section 677 (introduction to Chapter 3) is amended as...
81.(1) Section 681 (restriction on relief for non-trading loss on...
82.(1) Section 685 (apportionment of amounts) is amended as follows....
83.(1) In section 690 (meaning of “significant increase in the...
84.(1) Section 692 (introduction to Chapter 4) is amended as...
85.In section 696 (restriction of debits to be brought into...
86.(1) Section 702 (apportionment of amounts) is amended as follows....
87.(1) Section 704 (company carrying on UK property business) is...
88.(1) Section 705 (company carrying on overseas property business) is...
90.In section 721 (when things other than ordinary share capital...
91.In section 727 (extended time limit for assessment) for “3”...
PART 10 Northern Ireland trading losses etc
94.In the italic heading before section 357JB for “section 37”...
95.For sections 357JB to 357JE substitute— Availability of relief (1) The references in section 37 and sections 45A to...
96.After section 357JH insert— Loss relief in relation to Northern...
97.In section 357JJ (restricted deduction: Northern Ireland rate lower than...
98.In section 357RF (losses of film trade: restriction on use...
100.In section 357SF (losses of television programme trade: restriction on...
101.In section 357SG (losses of television programme trade: use of...
102.In section 357TF (losses of video game trade: restriction on...
104.In section 357UF (losses of theatrical trade: restriction on use...
105.In section 357UO (losses of orchestral trade: restriction on use...
PART 11 Minor and consequential amendments
107.Schedule 18 to FA 1998 (company tax returns, assessments and...
108.In paragraph 61(1)(c) (consequential claims etc arising out of certain...
110.For paragraph 66 (introduction to Part 8) substitute— (1) This Part of this Schedule applies to—
112.(1) Paragraph 68 (content of claims) is amended as follows....
114.(1) Paragraph 70 (consent to surrender) is amended as follows....
115.In Paragraph 71 (notice of consent) after sub-paragraph (1) insert—...
116.After paragraph 71 insert— Notice of consent: additional requirements where...
117.(1) Paragraph 72 (notice of consent requiring amendment of return)...
118.(1) Paragraph 73 (withdrawal or amendment of claim) is amended...
119.(1) Paragraph 74 (time limit for claims) is amended as...
120.(1) Paragraph 75A (assessment on other claimant companies) is amended...
121.(1) Paragraph 76 (assessment to recover excessive relief) is amended...
122.(1) Paragraph 77 (joint amended returns) is amended as follows....
129.In section 39(3) (losses of mines, quarries and other concerns)—...
130.(1) Section 364 (group relief claims involving impaired or released...
131.In section 371 (group relief claims involving impaired or released...
132.In section 387 (treatment of deficit on basic life assurance...
133.(1) Section 1048 (treatment of deemed trading loss under section...
134.In section 1056 (amount of trading loss which is “unrelieved”)—...
135.In section 1062(2) (restriction on losses carried forward where R&D...
136.In section 1116 (meaning of “the actual reduction in tax...
138.In section 1158(2) (restriction on losses carried forward where land...
139.In section 1201 (film tax credit claimable if company has...
140.In section 1216CH (television tax credit claimable if company has...
141.In section 1217CH (video game tax credit claimable if company...
142.In section 1217KA (theatre tax credits: amount of surrenderable loss)...
143.In section 1217RH (orchestra tax credits: amount of surrenderable loss)...
144.In section 1223 (carry forward expenses of management and other...
146.(1) Section 1 (overview of Act) is amended as follows....
147.(1) Section 17 (interpretation of Chapter 4 of Part 2)...
148.(1) Section 46 (use of trade-related interest and dividends if...
149.In section 47 (registered societies), in subsection (1), for “section...
150.In section 53 (leasing contracts and company reconstructions), in subsection...
151.In section 54 (non-UK resident company: receipts of interest, dividends...
152.(1) Section 56 (restriction on reliefs for limited partners) is...
153.(1) Section 59 (restriction on relief for members of LLPs)...
154.(1) Section 61 (unrelieved losses of member of LLP brought...
156.(1) Section 95 (write-off of government investment: meaning of “carry...
157.In section 99 (surrendering of losses and other amounts) in...
158.In section 104 (meaning of “non-trading loss on intangible fixed...
159.In section 137 (giving of group relief: deduction from total...
160.In section 189(2) (relief for qualifying charitable donations) at the...
161.In section 269DA (surcharge on banking companies) in subsection (2)...
162.After section 269DB insert— Meaning of “non-banking group relief for...
163.(1) Section 269DC (surcharge on banking companies: meaning of “non-banking...
165.In section 398D (sales of lessors: restrictions on use of...
167.(1) Chapter 5 of Part 9 (sales of lessors: anti-avoidance...
168.In section 599 (real estate investment trusts: calculation of profits)...
169.In section 601 (availability of group reliefs to a group...
170.In section 705E (shell companies: restriction on relief for non-trading...
171.In section 705F(2) (shell companies: apportionment of amounts), in column...
172.In section 730C (disallowance of deductible amounts: relevant claims) in...
173.(1) Section 888 (restrictions on leasing partnership losses) is amended...
174.(1) Schedule 4 (index of defined expressions) is amended as...
176.In section 54 (double taxation relief by way of credit:...
177.In section 55 (double taxation relief by way of credit:...
179.In section 371IF (determining the profits of a CFC's qualifying...
180.After section 371SK insert— Restrictions on certain deductions: deductions allowances...
181.In subsection (2)(a) of section 371SL (group relief etc)—
Corporate interest restriction
PART 3 Consequential amendments
14.In section 155 (transfer pricing: “potential advantage” in relation to...
15.In section 157 (direct participation), in subsection (1)—
16.In section 159 (indirect participation: potential direct participant), in subsection...
17.In section 160 (indirect participation: one of several major participants),...
18.In section 259CB (financial instruments: hybrid or otherwise impermissible deduction/non-inclusion...
19.In section 259DC (hybrid transfer deduction/non-inclusion mismatches and their extent),...
23.(1) Chapter 19 of Part 9A (CFCs: assumed taxable total...
PART 4 Commencement and transitional provision
Time limits for elections relating to financial statements of a worldwide group
Time limit relating to appointment of reporting company or filing interest restriction return
Power to make elections under Disregard Regulations for pre-1 April 2020 derivative contracts
Commencement of orders or regulations containing consequential provision
Relief for production of museum and gallery exhibitions
PART 2 Consequential amendments
9.CTA 2009 is amended in accordance with paragraphs 10 to...
10.In section 104BA (restriction on claiming other tax reliefs), after...
11.In Part 8 (intangible fixed assets), in Chapter 10 (excluded...
12.In section 1040ZA (restriction on claiming other tax reliefs), after...
13.In section 1310 (orders and regulations), in subsection (4), after...
14.In Schedule 4 (index of defined expressions), insert at the...
Trading profits taxable at the Northern Ireland rate
PART 1 Amendments relating to SMEs
3.(1) Section 357KA (meaning of “Northern Ireland company”) is amended...
4.(1) Section 357KE (Northern Ireland workforce conditions) is amended as...
5.After section 357KE insert— Meaning of “disqualified close company” “Disqualified...
7.In section 357M (Chapter 6: introductory), in subsection (1), for...
9.In section 357N (Chapter 7: introductory), in subsection (1), after...
10.(1) Section 357OB (Northern Ireland intangibles credits and debits: SMEs)...
11.(1) Section 357OC (Northern Ireland intangibles credits and debits: large...
12.(1) Section 357VB (relevant Northern Ireland IP profits: SMEs) is...
13.(1) Section 357VC (relevant Northern Ireland IP profits: large companies)...
14.(1) Section 357WA (meaning of “Northern Ireland firm”) is amended...
15.After section 357WB, insert— Northern Ireland workforce partnership conditions (1) The Northern Ireland workforce partnership conditions, in relation to...
16.In section 357WC (Northern Ireland profits etc of firm determined...
17.(1) Section 357WD (Northern Ireland profits etc of firm determined...
18.In section 357WE (sections 357WC and 357WD: interpretation), omit subsection...
19.(1) Section 357WF (application of section 747 of CTA 2009...
20.(1) Section 357WG (application of Part 8A to Northern Ireland...
Deemed domicile: income tax and capital gains tax
PART 1 Application of deemed domicile rule
3.(1) Section 16ZA (losses: non-UK domiciled individuals) is amended as...
4.(1) In section 16ZB (election under section 16ZA: foreign chargeable...
5.(1) In section 16ZC (election under section 16ZA by individual...
6.(1) In section 69 (trustees of settlements), after subsection (2E)...
7.(1) In section 86 (attribution of gains to settlors with...
8.(1) In section 275 (location of assets), after subsection (3)...
9.(1) In Schedule 5A (settlements with foreign element: information), in...
PART 2 Protection of overseas trusts
21.In section 624 (income under a settlement where settlor retains...
22.After section 628 insert— Exception for protected foreign-source income (1) The rule in section 624(1) does not apply to...
23.(1) In section 629(5) (list of exceptions), at the end...
24.(1) Section 635 (capital sums treated under section 633 as...
25.In section 636(1) (meaning in section 635 of “undistributed”), before...
26.In section 645(1) (meaning of property originating from the settlor),...
29.After section 721 insert— Meaning of “protected foreign-source income” in...
30.In section 726 (individuals to whom remittance basis applies), after...
32.After section 729 insert— Meaning of “protected foreign-source income” in...
33.In section 730 (individuals to whom remittance basis applies), after...
35.(1) Section 732 (when income is treated as arising for...
36.After section 733 insert— Settlor liable for section 731 charge...
37.In section 735A(6) (matching of income on which individual charged...
38.After section 735A insert— Settlor liable under section 733A and...
Commencement of amendments in FA 2004, ITTOIA 2005 and ITA 2007
Settlements and transfer of assets abroad: value of benefits
Inheritance tax on overseas property representing UK residential property
Consequential and supplementary amendments
4.In section 48 (excluded property)— (a) in subsections (3) and...
5.In section 65 (charge at other times), after subsection (7B)...
6.In section 157 (non-residents' bank accounts), after subsection (3) insert—...
7.In section 237 (imposition of charge), after subsection (2) insert—...
8.In section 272 (general interpretation), in the definition of “excluded...
Employment income provided through third parties: loans etc outstanding on 5 April 2019
PART 4 Supplementary provision
40.(1) Section 554Z9 (remittance basis: A does not meet section...
41.(1) Section 554Z10 (remittance basis: A meets section 26A requirement)...
42.(1) Section 554Z11 (remittance basis: supplementary) is amended in accordance...
43.(1) Section 554Z11A (temporary non-residents) is amended in accordance with...
Trading income provided through third parties: loans etc outstanding on 5 April 2019
Imported goods fulfilment businesses: penalty
Digital reporting and record-keeping for income tax etc: further amendments
2.(1) Section 7 (notice of liability) is amended as follows....
6.(1) Section 9 (returns to include self-assessment) is amended as...
7.(1) Section 12ZH (NRCGT returns and self-assessment: section 8) is...
8.(1) Section 12ZI (NRCGT returns and self-assessment: section 8A) is...
9.In section 12AA(10A) (definitions) for “ “partnership return”” substitute “...
10.In section 12AB(1) (partnership return to include partnership statement) in...
10A.In section 12AB (1C) (further information to be included in...
10B.In section 12ABZA (partnership returns: overseas partners in investment partnerships...
10BA.(1) Section 12ABZAA (returns relating to LLP not carrying on...
10C.In section 12ABZB (partnership return conclusive as to partnership shares)—...
11.(1) Section 12ABA (amendment of partnership return by taxpayer) is...
12.(1) Section 12ABB (HMRC power to correct partnership return) is...
13.(1) Section 12AC (notice of enquiry into partnership return) is...
15.In section 28ZA(6) (referral of questions during enquiry)—
16.In section 28B(8) (completion of enquiry into partnership return) for...
17.In section 28C(3) (determination of tax where no return delivered)...
18.In section 28H(2)(b) (simple assessments)— (a) for the words “to...
20.(1) Section 29 (assessment where loss of tax discovered) is...
21.In section 30B(10) (amendment of partnership statement where loss of...
22.(1) Section 42 (procedure for making claims) is amended as...
23.(1) Section 59A (payments on account of income tax) is...
24.(1) Section 59B (payment of income tax and capital gains...
25.(1) Section 106C (offence of failing to deliver a return)...
26.In section 106D(1) (offence of making inaccurate return)—
27.In section 106E (exclusions from offences under sections 106B to...
28.In section 107A(2)(a) (trustee liability for penalties) after “section 12B...
29.In section 118(1) (interpretation)— (a) after the definition of “CTA...
30.(1) Paragraph 3 of Schedule 1AB (recovery of overpaid tax)...
3.(1) Section 9B (amendment of return by taxpayer during enquiry)...
4.(1) Section 9C (amendment of self-assessment during enquiry to prevent...
5.In section 12ZM (NRCGT returns: notice of enquiry), in subsection...
6.(1) Section 12ZN (NRCGT returns: amendment of return by taxpayer...
7.In section 12AC (partnership return: notice of enquiry), in subsection...
8.(1) Section 12AD (amendment of partnership return by taxpayer during...
9.In section 12B (records), in subsection (1)(b)(i), for “28A(1) or...
10.(1) Section 28ZA (referral of questions during enquiry) is amended...
11.In section 28ZD (effect of referral on enquiry), in subsection...
12.(1) Section 28A (completion of enquiry into personal, trustee or...
13.(1) Section 28B (completion of enquiry into partnership return) is...
14.In section 29 (assessment where loss of tax discovered), in...
15.In section 29A (NRCGT disposals: determination of amount which should...
16.In section 30 (recovery of overpayment of tax etc), in...
17.In section 30B (amendment of partnership statement where loss of...
18.In section 31 (appeals: right of appeal), in subsection (2)—...
19.In section 59AA (NRCGT disposals: payments on account of CGT),...
20.In section 59B (payment of income tax and capital gains...
23.Schedule 18 to FA 1998 (company tax returns, assessments and...
24.(1) Paragraph 30 (amendment of self-assessment during enquiry to prevent...
25.(1) Paragraph 31 (amendment of return by company during enquiry)...
26.(1) Paragraph 31A (referral of questions to the tribunal during...
27.In paragraph 31C (effect of referral on enquiry), in sub-paragraph...
28.(1) Paragraph 32 (completion of enquiry) is amended as follows....
29.In paragraph 33 (direction to complete enquiry), in sub-paragraphs (1)...
30.(1) Paragraph 34 (amendment of return after enquiry) is amended...
31.In paragraph 42 (restriction on power to make discovery assessment...
32.In paragraph 44 (situation not disclosed by return or related...
33.In paragraph 61 (consequential claims etc), in sub-paragraphs (1)(a) and...
38.(1) Section 92 (counteraction notices given after tax return made)...
39.(1) Section 93 (amendment, closure notices and discovery assessments in...
40.In section 171 (tax returns where transfer pricing notice given),...
41.(1) Section 256 (notices given after tax return made), so...
42.(1) Section 257 (amendments, closure notices etc), so far as...
43.In section 371IJ (claims), in subsection (4)(b), after “completed” insert...
Penalties for enablers of defeated tax avoidance
PART 10 Publishing details of persons who have incurred penalties
Disclosure of tax avoidance schemes: VAT and other indirect taxes
PART 1 Duties to disclose avoidance schemes etc
Duties of promoter in relation to notifiable proposals or notifiable arrangements
Duty of parties to notifiable arrangements not involving promoter
Duty to provide further information requested by HMRC: paragraph 22(3) case
Duty of promoter to notify client of number : paragraph 22(2) case
Duty to notify client of reference number: paragraph 22(3) case
PART 3 Consequential amendments
Requirement to correct certain offshore tax non-compliance
PART 3 Further provisions relating to the requirement to correct
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