Finance Act 2025

Part 4 Miscellaneous and final

Avoidance

80 Limited liability partnerships

(1) After section 59A of TCGA 1992 (limited liability partnerships) insert—

“59AA Limited liability partnerships: deemed disposal

(1) This section applies where—

(a) a member of a limited liability partnership (the “LLP”) contributed an asset to the LLP in circumstances where section 59A(1) applied in relation to the LLP, and

(b) the LLP disposes of the asset, or part of the asset, to the member, or a person connected with the member, in circumstances where section 59A(1) has ceased to apply in relation to the LLP.

(2) The asset is deemed to have been disposed of and reacquired by the member—

(a) immediately before it was contributed to the LLP, and

(b) for a consideration equal to its market value at that time.

(3) But—

(a) any chargeable gain or allowable loss accruing under subsection (2) is to be treated as accruing at the time the asset, or part of the asset, is disposed of by the LLP (as described in subsection (1)(b)), and

(b) for the purposes of Schedule 2 to the Finance Act 2019 (returns for disposals of UK land), the disposal under subsection (2) is to be treated as completed at that time.

(4) Any chargeable gain accruing on the deemed disposal is to be reduced by an amount that is just and reasonable, having regard to any chargeable gain that has otherwise accrued to the member by reference to the asset or part of the asset.”

(2) The amendment made by this section has effect from 30 October 2024, but does not apply where section 59A(1) of TCGA 1992 ceased to apply in relation to the limited liability partnership before that date.

81 Loans to participators

(1) In CTA 2010, omit section 464B (relief in case of return payment to company).

(2) The repeal made by subsection (1) has effect in relation to payments made on or after 30 October 2024.

(3) In consequence of the repeal made by subsection (1), Part 10 of CTA 2010 is amended as follows—

(a) after section 464 insert—

“464ZA Treatment of certain repayments

(1) Where—

(a) within any period of 30 days—

(i) the qualifying amount of repayments made to a close company in respect of one or more chargeable payments made by the company to a person totals £5,000 or more, and

(ii) the available amount of the relevant chargeable payments made by the company to the person or an associate of the person totals £5,000 or more, and

(b) the relevant chargeable payments are made in an accounting period subsequent to that in which the chargeable payments mentioned in paragraph (a)(i) were made,

the qualifying amount of the repayments, so far as not exceeding the available amount of the relevant chargeable payments, is to be treated for the purposes of this Chapter as a repayment of the relevant chargeable payments.

(2) A chargeable payment is a relevant chargeable payment for the purposes of subsection (1) if (or to the extent that) it is not repaid within the period of 30 days mentioned in that subsection.

(3) Where—

(a) immediately before a repayment is made in respect of one or more chargeable payments made by a close company to a person, the total amount owed to the company by the person in respect of chargeable payments is £15,000 or more,

(b) at the time the repayment is made, arrangements had been made for one or more chargeable payments to be made to replace some or all of the amount repaid, and

(c) the available amount of the chargeable payments made by the company to the person or an associate of the person under the arrangements totals £5,000 or more,

the qualifying amount of the repayment, so far as not exceeding the available amount of the chargeable payments mentioned in paragraph (c), is to be treated for the purposes of this Chapter as a repayment of those chargeable payments.

(4) An amount contained in a chargeable payment is an available amount—

(a) for the purposes of subsection (1), to the extent that no repayment has been treated as made in respect of it by the previous operation of that subsection, and

(b) for the purposes of subsection (3), to the extent that no repayment has been treated as made in respect of it—

(i) by the operation of subsection (1), or

(ii) by the previous operation of subsection (3).

(5) An amount contained in a repayment is a qualifying amount to the extent that it has not been treated by the previous operation of this section as a repayment of a chargeable payment.

(6) This section does not apply in relation to a repayment which gives rise to a charge to income tax on the participator or associate by reference to whom the loan, advance or benefit was a chargeable payment.

(7) The Treasury may by order vary a sum specified in subsection (1) or (3).

(8) An order under subsection (7) may contain incidental, supplemental, consequential and transitional provision and savings.

464ZB Section 464ZA: supplementary

(1) All such assessments and adjustments of assessments are to be made as are necessary to give effect to section 464ZA(1) and (3).

(2) If a person who has made a tax return becomes aware that, after making it, anything in it has become incorrect because of the operation of section 464ZA(1) or (3), the person must give notice to an officer of Revenue and Customs specifying how the return needs to be amended.

(3) The notice must be given within 3 months beginning with the day on which the person became aware that anything in the return had become incorrect because of the operation of section 464ZA(1) or (3).

(4) In section 464ZA, “chargeable payment” means a loan or advance made by a close company which gives rise to a charge to tax under section 455.”,

(b) omit Chapter 3B (which contained only provisions that are replaced by those inserted by paragraph (a)),

(c) in section 438, (overview of Part 10) omit subsection (2B), and

(d) in section 459(2) (loan treated as made to participator), for “464C and 464D” substitute “464ZA and 464ZB”.

(4) The amendments made by subsection (3) are treated as having come into force on 30 October 2024.

Crytpo-asset reporting framework

82 OECD crypto-asset reporting framework

In section 349(2) of F(No.2)A 2023 (international arrangements for exchanging information)—

(a) after paragraph (f) insert—

“(fa) the OECD Crypto-Asset Reporting Framework, published in 2022;”, and

(b) in paragraph (g), for “(f)” substitute “(fa)”.

Preparing for new taxes and information sharing

83 Duty on vaping products

The Commissioners for His Majesty’s Revenue and Customs may prepare for the introduction of a new duty to be charged in respect of vaping products.

84 Carbon border adjustment mechanism

(1) The Commissioners for His Majesty’s Revenue and Customs may prepare for the introduction of a new tax to be charged in respect of emissions embodied in imported goods.

(2) The Treasury or the Commissioners for His Majesty’s Revenue and Customs may request in writing information from the UK ETS authority or a national authority for any purpose connected with the tax.

(3) If a request is made to an authority under subsection (2), the authority must provide the requested information if the authority holds it.

(4) Subsection (3) does not require the disclosure of personal data (within the meaning of section 3(2) of the Data Protection Act 2018).

(5) In this section—

• “national authority” has the meaning given by section 95 of the Climate Change Act 2008;

• “UK ETS authority” has the meaning given by Article 14 of the Greenhouse Gas Emissions Trading Scheme Order 2020 (S.I. 2020/1265).

Wrong cross-reference etc

85 Correction of wrong cross-reference etc

(1) In section 151I(1) of TCGA 1992, for paragraph (d) substitute—

“(d) a person with permission under Part 4A of the Financial Services and Markets Act 2000 to enter into, or to exercise or have the right to exercise rights and duties under, a contract of the kind mentioned in paragraph 23 or paragraph 23B of Schedule 2 to that Act (credit agreements and contracts for hire of goods);”.

(2) In section 1179AE(2) of CTA 2009, for “either House of Parliament” substitute “the House of Commons”.

(3) In section 4(2)(a) of the Taxation (Post-transition Period) Act 2020, for “section 42” substitute “section 47”.

Final

86 Interpretation

In this Act the following abbreviations are references to the following Acts—

CAA 2001	Capital Allowances Act 2001
CTA 2009	Corporation Tax Act 2009
CTA 2010	Corporation Tax Act 2010
FA followed by a year	Finance Act of that year
F(No.2)A followed by a year	Finance (No.2) Act of that year
IHTA 1984	Inheritance Tax Act 1984
ITA 2007	Income Tax Act 2007
ITEPA 2003	Income Tax (Earnings and Pensions) Act 2003
ITTOIA 2005	Income Tax (Trading and Other Income) Act 2005
TCGA 1992	Taxation of Chargeable Gains Act 1992
TIOPA 2010	Taxation (International and Other Provisions) Act 2010
TMA 1970	Taxes Management Act 1970
TPDA 1979	Tobacco Products Duty Act 1979
VATA 1994	Value Added Tax Act 1994
VERA 1994	Vehicle Excise and Registration Act 1994

87 Short title

This Act may be cited as the Finance Act 2025.