SCHEDULES

SCHEDULE 32The GAAR and partnerships

PART 2Minor and consequential amendments to Part 5 of FA 2013

13

(1)

Schedule 43C (penalty under section 212A: supplementary provision) is amended as follows.

(2)

In the heading after “212A” insert “ or 212B ”.

(3)

In paragraph 1, for “section 212A” substitute “ sections 212A and 212B ”

(4)

In paragraph 2—

(a)

for sub-paragraph (1), substitute—

“(1)

The “value of the counteracted tax advantage” is—

(a)

for a penalty under section 212A, the additional amount due or payable in respect of tax as a result of the counteraction mentioned in subsection (1)(d) of that section, and

(b)

for a penalty under section 212B, the additional amount due or payable in respect of tax (by the partner in question) as a result of the counteraction mentioned in subsection (1)(b) of that section.”,

(b)

for “section 212A(1)(c)” substitute “ section 212A(1)(d) or as result of the counteraction mentioned in 212B(1)(b) (as the case may be) ”, and

(c)

in sub-paragraph (5), for “the”, in the second place it occurs, substitute “ a ”.

(5)

In paragraph 3(1) omit “mentioned in section 212A(1)(b) (“the tax advantage”)”.

(6)

In paragraph 4(1), after “212A” insert “ or 212B (as the case may be) ”.

(7)

In paragraph 5—

(a)

in sub-paragraph (1), after “212A” insert “ or 212B (as the case may be) ”, and

(b)

in sub-paragraph (2), for paragraph (a) substitute—

“(a)

notify—

(i)

where the penalty is under section 212A, the person who is liable for it;

(ii)

where the penalty is under section 212B, the person who is liable for it and the responsible partner.”, and

(c)

in sub-paragraph (5), after “section 212A(1)(d)” insert “ or section 212B(1)(b) (as the case may be) ”.

(8)

In paragraph 8—

(a)

in sub-paragraph (1)(b), after “212A” insert “ or 212B (as the case may be) ”, and

(b)

in sub-paragraph (4), after “212A” insert “ or 212B ”.

(9)

In paragraph 9—

(a)

in sub-paragraph (1)(a), after “212A” insert “ or 212B ”, and

(b)

after sub-paragraph (1) insert—

“(1A)

Where the penalty is under section 212B, an appeal against it must be brought by the responsible partner.”

(10)

In paragraph 10(1), after section 212A insert “ or 212B ”.