Introductory Text

Part 1 Charges, rates, allowances, reliefs etc

Income tax

1.Charge and main rates for 2008-09
2.Personal allowance for those aged under 65
3.Personal allowances for those aged 65 and over
4.Basic rate limit
5.Abolition of starting and savings rates and creation of starting rate for savings

Corporation tax

6.Charge and main rates for financial year 2009
7.Small companies' rates and fractions for financial year 2008 etc

Capital gains tax

8.Rate etc
9.Entrepreneurs' relief

Inheritance tax
10.Transfer of unused nil-rate band etc

Alcohol and tobacco

11.Rates of alcoholic liquor duty
12.Rates of tobacco products duty

Fuel duties

13.Rates and rebates: simplification
14.Biodiesel and bioblend
15.Rates and rebates: increase from 1 October 2008
16.Fuel for aircraft and boats, heating oil and fuel for certain engines

Environmental taxes and duties

17.Rates of vehicle excise duty
18.Standard rate of landfill tax
19.Rates of climate change levy
20.Rate of aggregates levy
21.Carbon reduction trading scheme: charges for allocations

Gambling duties

22.Rates of gaming duty
23.Amusement machine licence duty

Part 2 Income tax, corporation tax and capital gains tax_general

Residence and domicile

24.Periods of residence
25.Remittance basis

Research and development

26.Rates of R&D relief and vaccine research relief
27.Qualifying expenditure: R&D relief and vaccine research relief
28.Companies in difficulty: SME R&D relief and vaccine research relief
29.Cap on R&D aid
30.Vaccine research relief: declaration about effect of relief

Venture capital schemes etc

31.Enterprise investment scheme: increase in amount of relief
32.Venture capital schemes
33.Enterprise management incentives: qualifying companies

Other business and investment measures

34.Tax credits for certain foreign distributions
35.Small companies' relief: associated companies
36.Company gains from investment life insurance contracts etc
37.Trade profits: changes in trading stock
38.Non-residents: investment managers
39.Dormant bank and building society accounts
40.Individual investment plan regulations

Offshore funds

41.Tax treatment of participants in offshore funds
42.Regulations under section 41: supplementary

Insurance companies and friendly societies

43.Insurance companies etc
44.Friendly societies

Employment matters

45.Homes outside UK owned through company etc
46.In-work and return to work credits and payments
47.Company cars: lower threshold for CO2 emissions figure
48.Van fuel benefit
49.Employment-related securities etc: deductible amounts etc
50.Employment-related securities: repeal of obsolete provisions
51.Armed forces: the Council Tax Relief
52.Greater London Authority: severance payments

Charities etc

53.Gift aid: payments to charities
54.Community investment tax relief

Leasing

55.Leases of plant or machinery
56.Sale of lessor companies etc

Double taxation arrangements

57.Double taxation relief
58.UK residents and foreign partnerships
59.UK residents and foreign enterprises

Other anti-avoidance provisions

60.Restrictions on trade loss relief for individuals
61.Non-active partners
62.Financial arrangements avoidance
63.Manufactured payments
64.Controlled foreign companies
65.Intangible fixed assets: related parties
66.Repeal of obsolete anti-avoidance provisions

Miscellaneous

67.Income of beneficiaries under settlor-interested settlements
68.Income charged at dividend upper rate
69.Payments on account of income tax
70.Allowances etc for non-resident nationals of an EEA state

Part 3 Capital allowances

Plant and machinery: qualifying expenditure

71.Thermal insulation of buildings
72.Expenditure on required fire precautions
73.Integral features

Plant and machinery: annual investment allowance
74.Annual investment allowance

Plant and machinery: first-year allowances

75.First-year allowance for small and medium-sized enterprises discontinued
76.Repeal of spent first-year allowances
77.Cars with low carbon dioxide emissions
78.Gas refuelling stations
79.First-year tax credits

Plant and machinery: writing-down allowances and pools

80.Main rate of writing down allowance
81.Small pools
82.Special rate expenditure and the special rate pool
83.Existing long-life asset expenditure treated as special rate expenditure

Industrial and agricultural buildings allowances

84.Abolition of allowances from 2011
85.Phasing out of allowances before abolition
86.Qualifying enterprise zone expenditure: transitional provision
87.Phasing out of industrial buildings allowance: anti-avoidance

Supplementary provision
88.Power to make consequential and transitional provision

Anti-avoidance
89.Balancing allowances on transfers of trade

Part 4 Pensions

90.Spreading of relief on indirect contributions
91.Inheritance etc of tax-relieved pension savings
92.Pension schemes: further provision

Part 5 Stamp taxes

Stamp duty land tax

93.Zero-carbon homes
94.Notification and registration of transactions
95.Charge where consideration includes rent: 0% band
96.Withdrawal of group relief
97.Transfers of interests in property-investment partnerships

Stamp duty

98.Exemption from ad valorem stamp duty for low value transactions
99.Abolition of fixed stamp duty on certain instruments
100.Gifts inter vivos
101.Loan capital

Part 6 Oil

Petroleum revenue tax

102.Meaning of “participator”
103.Abandonment expenditure: default by participator met by former participator
104.Abandonment expenditure: deductions from ring fence income
105.Abandonment expenditure: former participator reimbursed by defaulter
106.Returns of relevant sales of oil
107.Elections for oil fields to become non-taxable

Corporation tax

108.Capital allowances: plant and machinery for use in ring fence trade
109.Capital allowances: decommissioning expenditure
110.Capital allowances: abandonment expenditure after ceasing ring fence trade
111.Losses: set off against profits of earlier accounting periods
112.Ring fence trade: no deduction for expenses of investment management

Part 7 Administration

Chapter 1 Information etc

New information etc powers

113.Information and inspection powers
114.Computer records etc

Other measures

115.Record-keeping
116.Disclosure of tax avoidance schemes
117.Power to open or unpack containers

Chapter 2 Time limits for claims and assessments etc

General
118.Time limits for assessments, claims etc

Income tax and corporation tax
119.Correction and amendment of tax returns

VAT

120.VAT: time limits for assessments of excess credits etc
121.Old VAT claims: extended time limits

Chapter 3 Penalties

122.Penalties for errors
123.Penalties for failure to notify etc

Chapter 4 Appeals etc

Reviews and appeals etc: general
124.HMRC decisions etc: reviews and appeals

Customs and excise decisions subject to review and appeal

125.Alcoholic liquor duties
126.Security under CEMA 1979

Chapter 5 Payment and enforcement

Taking control of goods etc

127.Enforcement by taking control of goods: England and Wales
128.Summary warrant: Scotland
129.Consequential provision and commencement

Set off

130.Set-off: England and Wales and Northern Ireland
131.No set-off where insolvency procedure has been applied
132.VAT: requirement to set-off
133.Set-off etc where right to be paid a sum has been transferred
134.Retained funding bonds: tender by Commissioners

Other measures

135.Interest on unpaid tax in case of disaster etc of national significance
136.Fee for payment
137.County court proceedings
138.Certificates of debt

Supplementary
139.Interpretation of Chapter

Part 8 Miscellaneous

Inheritance tax

140.Charge on termination of interest in possession where new interest acquired
141.Interest in possession settlements: extension of transitional period

Insurance premium tax

142.Tax representatives
143.Overseas insurers

Vehicle excise duty

144.Rebates
145.Offence of using or keeping unlicensed vehicle
146.Rates for new lower-emission vans
147.Not exhibiting licence: period of grace
148.Reduced pollution certificates

Climate change levy and landfill tax

149.Climate change levy: coal mine methane no longer to be renewable source
150.Climate change levy accounting documents: abolition of self-identification
151.Landfill tax credit: withdrawing approval of environmental bodies

Aviation

152.Aviation duty
153.Air passenger duty: class of travel with large seat pitch

Alternative finance arrangements

154.Stamp duty and stamp duty reserve tax: alternative finance investment bonds
155.Alternative property finance: anti-avoidance
156.Alternative finance arrangements: power to vary Chapter 5 of Part 2 of FA 2005
157.Government borrowing: alternative finance arrangements

Payments from Exchequer accounts

158.Power of Treasury to make payments
159.Payments from certain Exchequer accounts: mechanism

Other matters

160.Power to give statutory effect to concessions
161.Fuel duty: definition of “ultra low sulphur diesel”
162.Duties: abolition of disregard of fractions of penny
163.National savings
164.EU emissions trading: criminal offences

Part 9 Final provisions

165.Interpretation
166.Short title

SCHEDULES

SCHEDULE 1
Abolition of starting and savings rates and creation of starting rate for savings

Part 1 Amendments of ITA 2007

1.ITA 2007 is amended as follows.
2.For section 7 (savings rate) substitute— The starting rate for...
3.(1) Section 10 (income charged at main rates: individuals) is...
4.In section 11(2) (income charged at the basic rate: persons...
5.For section 12 substitute— Income charged at the starting rate...
6.In section 13 (income charged at dividend ordinary and dividend...
7.In section 16(1) (savings and dividend income to be treated...
8.(1) Section 17 (repayment: tax paid at basic rate instead...
9.For the heading before section 20 substitute— “ Indexation of...
10.Omit section 20 (starting rate limit and basic rate limit)....
11.(1) Section 21 (indexation of starting and basic rate limits)...
12.In section 31(2), omit “or savings rate”.
13.(1) Section 158 (form and amount of EIS relief) is...
14.In section 209(3) (withdrawal or reduction of EIS relief: disposal...
15.In section 210(1)(b) (cases where maximum EIS relief not obtained),...
16.In section 213(2) (withdrawal or reduction of EIS relief: value...
17.In section 220(1)(b) (cases where maximum EIS relief not obtained),...
18.In section 224(2) (withdrawal or reduction of EIS relief: repayments...
19.In section 229(1)(b) (cases where maximum EIS relief not obtained),...
20.In section 414(2) (relief for gifts to charity), for “section...
21.In section 486(1) (how allowable expenses are to be set...
22.(1) Section 498 (types of income tax for purposes of...
23.In section 504(3) (treatment of income of unauthorised unit trust),...
24.In section 745(1) (rates of tax applicable to income charged...
25.In section 851(2) (deduction by deposit-takers and building societies), for...
26.In section 874(2) (deduction from payments of yearly interest), for...
27.In section 889(4) (deduction from payments in respect of building...
28.In section 892(2) (deduction from UK public dividends), for “savings...
29.In section 901(4) (deduction from annual payments made by other...
30.Omit section 902 (meaning of “applicable rate” in section 901)....
31.In section 919(2) (manufactured interest on UK securities: payments by...
32.In section 939(2) (duty to retain bonds where issue treated...
33.(1) Section 989 (definitions) is amended as follows.
34.In section 1014(5)(b)(i) (orders and regulations not subject to annulment),...
35.In Schedule 1 (consequential amendments), omit paragraphs 85(2), 86, 112,...
36.(1) Schedule 4 (index of defined expressions) is amended as...

Part 2 Other amendments

TMA 1970

37.TMA 1970 is amended as follows.
38.In section 7(6) (notice of liability to income tax and...
39.In section 91(3)(c) (effect of interest on reliefs), for “,...

ICTA

40.ICTA is amended as follows.
41.In section 468(1A) (authorised unit trusts), for “savings rate” substitute...
42.In section 468A(1) (open-ended investment companies), for “savings rate” substitute...
43.In section 552(5)(f)(i) (information: duty of insurers), for “savings rate”...
44.In section 699A(4)(b) (untaxed sums comprised in the income of...
45.In section 701(3A) (estates of deceased persons in administration), omit—...
46.Omit section 789(2) (double taxation arrangements made under old law:...

FA 1989
47.In section 88(1) of FA 1989 (insurance companies: policy holders'...

TCGA 1992
48.In section 150A(3)(b) of TCGA 1992 (enterprise investment schemes), for...

FA 1996
49.Omit paragraph 21 of Schedule 6 to FA 1996 (which...

ITTOIA 2005

50.ITTOIA 2005 is amended as follows.
51.In section 465A(1)(b) (gains from contracts for life insurance etc:...
52.In section 466(2) (gains from contracts for life insurance etc:...
53.In section 467(7) (gains from contracts for life insurance etc:...
54.(1) Section 530 (gains from contracts for life insurance etc:...
55.In section 535(3) (gains from contracts for life insurance etc:...
56.In section 536(1) (gains from contracts for life insurance etc:...
57.In section 537 (gains from contracts for life insurance etc:...
58.In section 539(5) (gains from contracts for life insurance etc:...
59.In section 669(3)(a)(i) (reduction in residuary income: inheritance tax on...
60.In section 679(3) (income from which basic amounts are treated...
61.In section 680(4) (income treated as bearing income tax), for...
62.(1) Section 680A (income treated as savings income or dividend...
63.(1) Schedule 4 (index of defined expressions) is amended as...

F(No.2)A 2005
64.In section 7(5) of F(No.2)A 2005 (charge to income tax...

Part 3 Commencement
65.Apart from the amendments made by paragraph 11, the amendments...

SCHEDULE 2
Capital gains tax reform

Rate: consequentials

1.TCGA 1992 is amended as follows.
2.In section 2(7)(a) (chargeable gains and allowable losses), omit “77...
3.Omit section 6 (rates: special cases).
4.In section 13(7A) (attribution of gains to members of non-resident...
5.Omit sections 77 to 79 (charge on settlor with interest...
6.Omit section 88(6) (gains of dual resident settlements: sections 77...
7.(1) Schedule 4A (disposal of interest in settled property: deemed...
8.(1) Schedule 4B (transfers of value by trustees linked with...
9.Omit paragraph 6(3) of Schedule 4C (attribution of gains to...
10.In paragraph 1(1) of Schedule 5 (construction of section 86(1)(e)),...
11.Chapter 4 of Part 2 of FA 2005 (trusts with...
12.In section 23(4) (introduction), for “33” substitute “ 32 ”....
13.In section 26(1) (income tax: amount of relief), in the...
14.(1) Section 28 (vulnerable person's liability: VQTI) is amended as...
15.In section 30 (qualifying trust gains: special capital gains tax...
16.(1) Section 31 (UK resident vulnerable persons: section 77 treatment)...
17.(1) Section 32 (non-UK resident vulnerable persons: amount of relief)...
18.Omit section 33 (non-UK resident vulnerable person's liability: VQTG).
19.In section 41(3) (interpretation), for “33” substitute “ 32 ”....
20.(1) Schedule 1 (non-UK resident vulnerable persons: interpretation) is amended...
21.In consequence of section 8 and paragraphs 1 to 20,...
22.The amendments made by paragraphs 1 to 21 have effect...

Abolition of taper relief

23.TCGA 1992 is amended as follows.
24.(1) Section 2 (chargeable gains and allowable losses) is amended...
25.Omit section 2A (taper relief).
26.(1) Section 3 (annual exempt amount) is amended as follows....
27.In section 3A(2) (reporting limits)— (a) omit paragraph (a), and...
28.Omit section 13(10A) (attribution of gains to members of non-resident...
29.(1) Section 62 (death) is amended as follows
30.In section 86(1)(e) (attribution of gains to settlors with interest...
31.(1) Section 86A (attribution of gains to settlor in section...
32.Omit section 150D (enterprise investment scheme: application of taper relief)....
33.In subsection (8) of section 165 (relief for gifts of...
34.After that section insert— Meaning of “holding company”, “trading company”...
35.Omit section 214C (re-organisations of mutual business: gains not eligible...
36.In section 228(8) (relief for employee share ownership trusts), for...
37.In section 241(3A) (furnished holiday lettings), omit “Schedule A1 (taper...
38.In section 253(14)(b) (relief for loans to traders), for “meaning...
39.Omit section 261C(2)(a) (treating trading loss etc as CGT loss:...
40.In section 279(2)(a) (foreign assets: delayed remittances), omit “(before the...
41.In section 279A(7)(b) (deferred unascertainable consideration: election for treatment of...
42.In section 279B(1) (provisions supplementary to section 279A), for paragraph...
43.(1) Section 279C (effect of election under section 279A) is...
44.Omit section 284B(1) (provisions supplementary to section 284A).
45.Omit Schedule A1 (taper relief).
46.Schedule 4C (transfers of value: attribution of gains to beneficiaries)...
47.(1) Paragraph 6 (gains attributed to settlor) is amended as...
48.Omit paragraph 11 (taper relief).
49.Omit Schedule 5BA (application of taper relief to enterprise investment...
50.Omit paragraph 15 of Schedule 7D (enterprise management incentives).
51.In paragraph 45D(7) of Schedule 26 to FA 2002 (derivative...
52.In paragraph 86(2) of Schedule 7 to ITEPA 2003 (transitionals...
53.Omit section 185G(3)(c) of FA 2004 (disposal by person holding...
54.Omit section 161(5) of ITA 2007 (other tax reliefs relating...
55.In consequence of paragraphs 23 to 54, omit—
56.(1) The amendments made by paragraph 31(2) and (3) have...

Abolition of “kink” test

57.TCGA 1992 is amended as follows.
58.(1) Section 35 (assets held on 31 March 1982) is...
59.After that section insert— Disposal of asset acquired on no...
60.In section 55(5) (indexation allowance: assets acquired on no gain/no...
61.In section 73(1) (death of life tenant: exclusion of chargeable...
62.In section 175(2C) (replacement of business assets by member of...
63.In section 288 (interpretation), after subsection (3) insert—
64.(1) Schedule 2 (assets held on 6 April 1965) is...
65.(1) Schedule 3 (assets held on 31 March 1982) is...
66.In paragraph 7 of Schedule 4 (deferred charges on pre-31...
67.In paragraph 7 of Schedule 4ZA (sub-fund settlements), for “sections...
68.In paragraph 12(b) of Schedule 7A (restriction on set-off or...
69.(1) FA 1997 is amended as follows.
70.In consequence of paragraphs 57 to 69, omit—
71.The amendments made by paragraphs 57 to 70 have effect...

Abolition of “halving relief”

72.TCGA 1992 is amended as follows.
73.In section 36 (reduction of deferred charges where wholly or...
74.(1) Schedule 4 (deferred charges on pre-31 March 1982 gains)...
75.In consequence of paragraph 74, omit paragraph 43 of Schedule...
76.The amendments made by paragraphs 72 to 75 have effect...

Abolition of indexation allowance

77.TCGA 1992 is amended as follows.
78.At the beginning of Chapter 4 of Part 2 (indexation...
79.In section 53 (indexation allowance), omit— (a) subsection (1A), and...
80.(1) Section 54 (calculation of indexation allowance) is amended as...
81.(1) Section 145 (call options: indexation allowance) is amended as...
82.In consequence of the amendments made by paragraphs 77 to...
83.The amendments made by paragraphs 77 to 82 have effect...

Simplification of pooling etc

84.TCGA 1992 is amended as follows.
85.(1) Section 104 (share pooling: general interpretative provisions) is amended...
86.In section 105 (disposal on or before day of acquisition),...
87.(1) Section 106A (identification of securities: general rules for capital...
88.In the heading of section 107 (identification of securities etc:...
89.In the heading of section 108 (identification of relevant securities),...
90.(1) Section 109 (pre-April 1982 share pools) is amended as...
91.For the heading of section 110 substitute “ Indexation for...
92.Omit section 110A (indexation for section 104 holdings: CGT).
93.In the heading of section 112 (parallel pooling regulations), insert...
94.(1) Section 113 (calls on shares) is amended as follows....
95.(1) Section 114 (consideration for options) is amended as follows....
96.In FA 1998, omit— (a) section 123(1) and (2), and...
97.Chapter 6 of Part 4 of ITA 2007 (losses on...
98.(1) Section 147 (limits on share loss relief) is amended...
99.(1) Section 148 (disposal of shares forming part of mixed...
100.The amendments made by paragraphs 84 to 99 have effect...

Meaning of “tax year”

101.(1) Section 288 of TCGA 1992 (interpretation) is amended as...
102.In consequence of the amendments made by paragraph 101, omit—...

SCHEDULE 3
Entrepreneurs' relief

Introduction
1.TCGA 1992 is amended as follows.

Main provisions
2.In Part 5 (transfer of business assets), after section 169G...

Other amendments

3.In section 241(3A) (furnished holiday lettings), after the entry relating...
4.In paragraph 1(1)(b) of Schedule 5B (enterprise investment scheme: re-investment),...

Commencement
5.The amendments made by this Schedule have effect in relation...

Transitionals: section 169P(4)(d)
6.Section 169P of TCGA 1992 has effect in a case...

Transitionals: reorganisations
7.(1) This paragraph applies where, by virtue of section 116(10)(b),...

Transitionals: EIS and VCT
8.(1) This paragraph applies where there is a relevant chargeable...

SCHEDULE 4
Inheritance tax: transfer of nil-rate band etc

Amendments of IHTA 1984

1.IHTA 1984 is amended as follows.
2.After section 8 insert— Transfer of unused nil-rate band between...
3.In section 147 (Scotland: legitim etc), insert at the end—...
4.(1) Section 151BA (rates of charge under section 151B) is...
5.In section 239(4) (certificates of discharge: cases where further tax...
6.In section 247(2) (tax-geared penalty), after “liable” insert “ ,...
7.In section 272 (general interpretation), insert at the appropriate place—...

Amendment of TCGA 1992
8.In section 274 of TCGA 1992 (value determined for inheritance...

Commencement
9.(1) The amendments made by paragraphs 2, 3 and 4(4)...

Modifications for cases where deceased person died before 25 July 1986

10.(1) Section 8A of IHTA 1984 (as inserted by paragraph...
11.(1) Section 8C of IHTA 1984 (as inserted by paragraph...

SCHEDULE 5
Fuel duty: biodiesel and bioblend

1.HODA 1979 is amended as follows.
2.(1) Section 1 (hydrocarbon oil) is amended as follows.
3.(1) Section 2A (power to amend definitions) is amended as...
4.In section 6AA (excise duty on biodiesel), after subsection (3)...
5.In section 6AB (excise duty on bioblend), for subsections (3)...
6.In section 8 (excise duty on road fuel gas)—
7.In section 10 (restrictions on use of duty-free oil), omit...
8.In section 12 (rebate not allowed on fuel for road...
9.In section 13 (penalties for misuse of rebated heavy oil),...
10.In section 13AA (restrictions on use of rebated kerosene), omit...
11.In section 13AB (penalties for misuse of kerosene), omit subsections...
12.In section 14 (rebate on light oil for use as...
13.After that section insert— Rebate on biodiesel used other than...
14.Omit section 17A (repayment of part of duty where biodiesel...
15.(1) Section 20A (mixing: adjustment of duty) is amended as...
16.(1) Section 20AAA (mixing of rebated oil) is amended as...
17.In section 20AA(1) (power to allow reliefs), after “12(2)” (in...
18.Before section 21 (but after the heading “Administration and enforcement”)...
19.In section 23 (prohibition on use etc of road fuel...
20.(1) Section 24 (control of duty-free and rebated oil) is...
21.In section 24A (penalties for misuse of marked oil), omit...
22.(1) Section 27 (interpretation) is amended as follows.
23.In Schedule 4 (regulations under section 24), omit—
24.In Schedule 5 (sampling), in paragraph 3(1), omit “of oil”....
25.In consequence of the amendments of HODA 1979, omit—
26.The amendments made by this Schedule are treated as having...

SCHEDULE 6
Aircraft and boat fuel, heating oil and fuel used for certain engines

Part 1 Fuel used in aircraft and boats

Aviation gasoline

1.HODA 1979 is amended as follows.
2.In section 1 (hydrocarbon oil), after subsection (3C) insert—
3.In section 2A(1) (power to amend definitions), before paragraph (a)...
4.(1) Section 6 (hydrocarbon oil: rates of duty) is amended...
5.In section 24(1) (control of use of duty-free and rebated...
6.In section 27(1) (interpretation), in the definition of “aviation gasoline”,...
7.In Schedule 3 (regulations under section 21), omit paragraph 10A....
8.In consequence of the amendments made by paragraphs 2 to...

Kerosene used for aviation (avtur)

9.HODA 1979 is amended as follows.
10.In the heading of section 13AB, for “misuse of kerosene”...
11.After that section insert— Use of rebated kerosene for private...

Fuel for private pleasure craft

12.HODA 1979 is amended as follows.
13.(1) Section 14A (rebate on biodiesel used other than as...
14.(1) Section 14C (restrictions on use of rebated biodiesel and...
15.After section 14D insert— Rebated heavy oil and bioblend: private...
16.In section 24(1) (control of use of duty-free and rebated...

Consequential amendments

17.FA 1994 is amended as follows.
18.In section 12A(3)(c) (other assessment relating to excise duty matters)—...
19.In section 12B(2)(f) (section 12A: supplementary provisions)—
20.In section 14(1)(ba) (requirement for review of a decision)—

Commencement etc

21.The amendments made by this Part of this Schedule come...
22.But section 13AC(2) of HODA 1979 does not apply to...
23.And section 14E(2) of that Act does not apply to...

Part 2 Heavy oil used for heating or as fuel for certain engines

Amendments of HODA 1979

24.HODA 1979 is amended as follows.
25.In section 11(1) (rebate on heavy oil), for “13, 13AA...
26.In section 12(2) (rebated heavy oil not to be used...
27.In the heading of section 13 (penalties for misuse of...
28.After that section insert— Rebate on certain heavy oil used...
29.In section 20AAA(6)(b) (mixing of rebated oil), before “13AA” insert...
30.In section 20AA(1) (power to allow reliefs), after “12(2)” (in...
31.In section 24(2) (control of use of duty-free and rebated...
32.In section 27(1) (interpretation), in the definition of “rebate”, after...

Amendments of FA 1994

33.FA 1994 is amended as follows.
34.In section 12A(3)(c) (other assessment relating to excise duty matters),...
35.In section 12B(2)(f) (section 12A: supplementary provisions), after “13,” insert...
36.In section 14(1)(ba) (requirement for review of a decision), after...

Commencement
37.The amendments made by this Part of this Schedule come...

SCHEDULE 7
Remittance basis

Part 1 Main provisions

Remittance basis_general
1.In Part 14 of ITA 2007 (income tax liability: miscellaneous...

Employment income

2.ITEPA 2003 is amended as follows.
3.(1) Section 6 (nature of charge to tax on employment...
4.(1) Section 10 (meaning of “taxable earnings” etc) is amended...
5.(1) Section 13 (person liable to tax) is amended as...
6.For the heading of Chapter 4 of Part 2 substitute...
7.In section 14(1) (taxable earnings under Chapter 4: introduction), for...
8.For the heading before section 15 substitute “ UK resident...
9.(1) Section 15 (earnings for year when employee resident, ordinarily...
10.For the title to Chapter 5 of Part 2 substitute...
11.(1) Section 20 (taxable earnings under Chapter 5: introduction) is...
12.For the heading before section 21 substitute “ Remittance basis...
13.Omit section 21 (earnings for year when employee resident and...
14.(1) Section 22 (chargeable overseas earnings for year when employee...
15.(1) Section 23 (calculation of chargeable overseas earnings) is amended...
16.In section 24(7) (limit on chargeable overseas earnings where duties...
17.For the heading before section 25 substitute “ Remittance basis...
18.Omit section 25 (UK-based earnings for year when employee resident,...
19.(1) Section 26 (foreign earnings for year when employee resident,...
20.(1) Section 27 (UK-based earnings for year when employee non-UK...
21.Omit sections 31 to 37 (and the heading before section...
22.After section 41 insert— Chapter 5A Taxable specific income: effect...
23.Omit Chapter 6 of Part 2 (disputes as to domicile...
24.In section 225 (payments for restrictive undertakings), for subsections (6)...
25.In section 271(2) (limited exemption of removal benefits and expenses:...
26.In section 335(4) (application of deductions provisions), omit “, 21,...
27.(1) Section 370 (travel costs and expenses where duties performed...
28.(1) Section 371 (travel costs and expenses where duties performed...
29.(1) Section 378 (deduction from seafarer's earnings: eligibility) is amended...
30.(1) Section 413 (exception in certain cases of foreign service)...
31.In section 421E(1) (income relating to securities: exclusions), for the...
32.In section 446N (securities subject to restriction during relevant period),...
33.In section 474(1) (securities options: exclusions), for the words from...
34.In section 540(2) (EMI: taxable benefits), for the words from...
35.In section 690 (PAYE: employee non-UK resident etc), after subsection...
36.In section 698 (PAYE: special charges on employment-related securities), after...
37.In section 700 (PAYE: gains from securities options), after subsection...
38.After that section insert— Employment-related securities etc: remittance basis (1) This section applies if— (a) section 698 or 700...
39.In section 721(1) (other definitions), for the definition of “foreign...
40.In Schedule 1 (index of defined expressions), omit the entries...
41.In paragraph 8 of Schedule 2 (approved share incentive plans:...
42.In paragraph 6(2) of Schedule 3 (approved SAYE option schemes:...
43.In paragraph 27(2) of Schedule 5 (enterprise management incentives: meaning...
44.In Schedule 7 (transitionals and savings), omit paragraphs 9 to...

Relevant foreign income

45.In section 575 of ITEPA 2003 (foreign pensions: taxable pension...
46.ITTOIA 2005 is amended as follows.
47.In section 260(1) (overview of Part 3)—
48.In section 269 (territorial scope of charge to tax), omit...
49.Omit Chapter 11 of Part 3 (overseas property income).
50.In section 829 (overview of Part 8), for paragraph (a)...
51.(1) Section 830 (meaning of “relevant foreign income”) is amended...
52.Omit section 831 (claims for relevant foreign income to be...
53.For section 832 substitute— Relevant foreign income charged on remittance...
54.Omit sections 833 to 837.

Chargeable gains

55.TCGA 1992 is amended as follows.
56.(1) Section 3 (annual exempt amount) is amended as follows....
57.In section 3A (reporting limits), after subsection (5) insert—
58.In section 9 (residence etc), omit subsection (2).
59.In section 10A (temporary non-residents), after subsection (9) insert—
60.For section 12 substitute— Non-UK domiciled individuals to whom remittance...
61.In section 16 (computation of losses), omit subsection (4).
62.After that section insert— Losses: non-UK domiciled individuals (1) In this section “the relevant tax year”, in relation...
63.In section 119A (increase in expenditure by reference to tax...
64.After that section insert— Section 119A: unremitted foreign securities income...

Minor and consequential amendments

65.In section 33(2A) of TMA 1970 (error or mistake)—
66.ITTOIA 2005 is amended as follows.
67.In section 839 (annual payments payable out of relevant foreign...
68.In section 840 (relief for backdated pensions charged on arising...
69.After that section insert— Claims under section 840 (1) A claim under section 840 must be made on...
70.(1) Section 857 (partners to whom the remittance basis may...
71.In section 878 (definitions), omit subsection (2).
72.In Schedule 2 (transitional provision etc), omit paragraphs 150 and...
73.In Part 2 of Schedule 4 (index of defined expressions),...
74.ITA 2007 is amended as follows.
75.In section 2(14) (overview of Act), before paragraph (a) insert—...
76.In section 34 (personal allowances etc: introduction), after subsection (2)...
77.In section 42 (tax reductions for married couples etc: introduction),...
78.In section 460 (residence etc of claimants for relief for...
79.In consequence of the amendments made by this Part of...

Commencement

80.The amendments made by paragraphs 3(3), 4(3), 5(2), 22, 31...
81.The other amendments made by this Part of this Schedule...

Transitional provision

82.(1) This paragraph applies in relation to an individual's general...
83.(1) This paragraph applies to an individual's relevant foreign income...
84.(1) This paragraph applies if section 12 of TCGA 1992...
85.(1) In section 809E(3)(b) of ITA 2007, the reference to...
86.(1) Section 809L of ITA 2007 (meaning of “remitted to...
87.Section 809N of ITA 2007 (section 809L: gift recipients, qualifying...
88.Section 809O of ITA 2007 (section 809L: dealings where there...
89.Sections 809Q to 809S of ITA 2007 (transfers from mixed...
90.(1) This paragraph applies if— (a) before 12 March 2008,...
91.(1) This paragraph applies in relation to employment-related securities if—...

Part 2 Non-resident companies and trusts etc

Offshore income gains

92.(1) Section 761 of ICTA (charge to income tax or...
93.(1) Section 762 of that Act (offshore income gains accruing...
94.After that section insert— Offshore income gains: application of transfer...
95.In Schedule 10 to TCGA 1992 (consequential amendments), omit paragraph...
96.In section 830(4) of ITTOIA 2005 (meaning of “relevant foreign...
97.In section 734 of ITA 2007 (reduction in amount charged:...

Offshore income gains: commencement etc

98.The amendments made by paragraphs 92 to 97 have effect...
99.Paragraphs 120 and 121 apply in relation to offshore income...
100.(1) This paragraph applies if— (a) by virtue of section...
101.(1) This paragraph applies if— (a) the trustees of a...
102.(1) This paragraph applies if— (a) in the tax year...

Attribution of gains to members of non-resident companies

103.In section 13(2) of TCGA 1992 (attribution of gains to...
104.After section 14 of that Act insert— Section 13: non-UK...
105.The amendments made by paragraphs 103 and 104 have effect...

Attribution of gains to beneficiaries

106.TCGA 1992 is amended as follows.
107.In section 85(11) (disposal of interests in non-resident settlements), for...
108.For section 87 substitute— Non-UK resident settlements: attribution of gains...
109.(1) Section 88 (gains of dual resident settlements) is amended...
110.(1) Section 89 (migrant settlements) is amended as follows.
111.For section 90 substitute— Sections 87 and 89(2): transfers between...
112.(1) Section 91 (increase in tax payable under section 87...
113.Omit sections 92 to 95 (matching).
114.Omit— (a) in FA 1998, section 130(1) and (4), and...

Attribution of gains to beneficiaries: commencement etc

115.The amendments made by paragraphs 106 to 114 have effect...
116.For the purposes of sections 87 and 87A of TCGA...
117.In the application of section 87 of TCGA 1992 for...
118.(1) This paragraph applies if— (a) section 87 of TCGA...
119.Section 87C of TCGA 1992 does not apply in relation...
120.(1) This paragraph applies to a settlement if section 87...
121.(1) If section 90 of TCGA 1992 (as originally enacted)...
122.(1) If all of a capital payment would (in the...
123.Section 89(2) of TCGA 1992 as substituted applies to a...
124.(1) This paragraph applies if— (a) chargeable gains are treated...
125.(1) This paragraph applies in relation to a settlement for...
126.(1) The following provisions apply to a settlement if—
127.(1) This paragraph applies if— (a) in the tax year...

Attribution of gains to beneficiaries: cases involving transfers of value

128.TCGA 1992 is amended as follows.
129.(1) Section 85A (transfers of value: attribution of gains to...
130.In paragraph 3 of Schedule 4B (transfers of value by...
131.Schedule 4C (transfers of value: attribution of gains to beneficiaries)...
132.In paragraph 1, for sub-paragraphs (2) and (3) substitute—
133.After that paragraph insert— Outstanding section 2(2) amounts (1) The following steps are to be taken for the...
134.In paragraph 4(2) (chargeable amount: non-resident settlement), at the end...
135.In paragraph 5(2)(a) (chargeable amount: dual resident settlement), after “apply”...
136.Omit paragraph 7A (and the heading before it).
137.For paragraph 7B substitute— (1) This paragraph applies if the trustees of the transferor...
138.For paragraph 8 substitute— (1) Chargeable gains are treated as accruing in a tax...
139.After paragraph 8A insert— Attribution of gains: remittance basis Section 87B (remittance basis) applies in relation to chargeable gains...
140.Omit paragraphs 8B and 8C (including the heading before paragraph...
141.For paragraph 9 (and the heading before it) substitute— Attribution...
142.In paragraph 10 (residence of trustees from whom capital payment...
143.(1) Paragraph 12 (attribution of gains to settlor in section...
144.In paragraph 12A(3), for “87(4)” substitute “ 87(2) ”.
145.(1) Paragraph 13 (increase in tax payable under this Schedule)...
146.Omit paragraph 3 and 6(2) and (3) of Schedule 29...

Attribution of gains to beneficiaries in cases involving transfers of value: commencement etc

147.The amendments made by paragraphs 128 to 146 have effect...
148.For the purposes of paragraph 8 of Schedule 4C to...
149.A capital payment received before 6 April 2008 is not...
150.Paragraph 124 applies in relation to chargeable gains treated under...
151.(1) This paragraph applies for the tax year 2008-09 or...

Attribution of gains to beneficiaries: existing Schedule 4C pools

152.Schedule 4C to TCGA 1992 (as it has effect without...
153.Any reduction in the amount of a capital payment has...
154.(1) If all of a capital payment ceases (in the...
155.In any tax year— (a) Schedule 4C to TCGA 1992...

Transfers of securities: accrued income profits

156.In section 830(4) of ITTOIA 2005 (meaning of “relevant foreign...
157.In section 617 of ITA 2007 (accrued income profits: income...
158.Omit section 644 of that Act (accrued income profits: individuals...
159.After section 670 of that Act insert— Individuals to whom...
160.The amendments made by paragraphs 156 to 159 have effect...

Transfers of assets abroad

161.In section 46B(4)(c) of TMA 1970 (questions to be determined...
162.In section 830(4) of ITTOIA 2005 (meaning of “relevant foreign...
163.ITA 2007 is amended as follows.
164.In section 720(4) (transfer of assets abroad: charge where power...
165.For section 726 substitute— Non-UK domiciled individuals to whom remittance...
166.In section 727 (transfer of assets abroad: charge where capital...
167.For section 730 substitute— Non-UK domiciled individuals to whom remittance...
168.In section 731 (transfer of assets abroad: charge where benefit...
169.For section 735 substitute— Non-UK domiciled individuals to whom remittance...
170.The amendments made by paragraphs 161 to 169 have effect...

General
171.For the purposes of this Part of this Schedule, the...

SCHEDULE 8
Rates of research and development relief and vaccine research relief

Rates of research and development relief: SMEs
1.(1) Part 2 of Schedule 20 to FA 2000 (giving...

Rates of research and development tax relief: large companies
2.(1) In Schedule 12 to FA 2002 (tax relief for...

Rates of vaccine research relief
3.(1) Schedule 13 to FA 2002 (vaccine research relief) is...

SCHEDULE 9
Companies in difficulty: SME R&D relief and vaccine research relief

Research and development relief
1.(1) Schedule 20 to FA 2000 (tax relief for expenditure...

Vaccine research relief
2.(1) Schedule 13 to FA 2002 (tax relief for expenditure...

Commencement
3.The amendments made by this Schedule have effect in relation...

SCHEDULE 10
Cap on R&D aid

Part 1 Calculation of total R&D aid

Calculation of total R&D aid

1.For the purposes of section 29, “total R&D aid”, in...
2.(1) In paragraph 1 “the tax credits” means the aggregate...
3.In paragraph 1 “the actual reduction in tax liability” means...
4.(1) In paragraph 1 “the potential relief” means the aggregate...
5.(1) In paragraph 1 “the notional relief” is the aggregate...

Interpretation
6.In this Schedule “R&D relief” means any relief or tax...

Transitional provision
7.For the purpose of any calculation in accordance with paragraph...

Part 2 Consequential amendments

8.In Schedule 20 to FA 2000 (tax relief for expenditure...
9.In Schedule 12 to FA 2002 (tax relief for expenditure...
10.In Schedule 13 to FA 2002 (tax relief for expenditure...

SCHEDULE 11
Venture capital schemes

Corporate Venturing Scheme

1.Part 3 of Schedule 15 to FA 2000 (CVS: the...
2.In paragraph 26 (excluded activities)— (a) in sub-paragraph (1), after...
3.After paragraph 30 insert— Excluded activities: shipbuilding In paragraph 26(1)(ha) “shipbuilding” has the same meaning as in...

Enterprise Investment Scheme

4.Chapter 4 of Part 5 of ITA 2007 (EIS: the...
5.In section 192 (meaning of “excluded activities”)—
6.After section 196 insert— Excluded activities: shipbuilding In section 192(1)(ia) “shipbuilding” has the same meaning as in...

Venture capital trusts

7.Chapter 4 of Part 6 of ITA 2007 (VCTs: qualifying...
8.In section 303 (meaning of “excluded activities”)—
9.After section 307 insert— Excluded activities: shipbuilding In section 303(1)(ia) “shipbuilding” has the same meaning as in...

Commencement

10.The amendments made by this Schedule are treated as having...
11.But the amendments made by paragraphs 2, 3, 5 and...
12.And the amendments made by paragraphs 8 and 9 do...
13.For the purposes of paragraph 12(b) “protected money” is—

SCHEDULE 12
Tax credit for certain foreign distributions

Part 1 The tax credit

1.Chapter 3 of Part 4 of ITTOIA 2005 (dividends etc...
2.In the heading of the Chapter, for “etc.”, in the...
3.In the heading of section 397, after “distributions” insert “...
4.After section 397 insert— Tax credits for distributions of non-UK...
5.In section 398(1) (increase in amount or value of dividends...
6.In section 399(1) (qualifying distributions received by persons not entitled...

Part 2 Consequential provision

TMA 1970

7.TMA 1970 is amended as follows.
8.In section 8(1AA)(b) (personal return: amount payable by way of...
9.In section 8A(1AA)(b) (trustee's return: amount payable by way of...
10.In section 9(1)(b) (self-assessment of amount payable by way of...
11.In section 12AA(1A)(b) (partnership return: amount payable by way of...
12.In section 12AB(5) (partnership statement), in the definition of “tax...
13.In section 59A(8)(b) (payments on account of income tax), after...
14.In section 59B(2)(b) (payment of income tax), after “397(1)” insert...

ICTA
15.In section 824(4A)(b) of ICTA (repayment supplements: individuals and others),...

FA 1993
16.In section 171(2B) of FA 1993 (Lloyd's underwriters etc: taxation...

ITTOIA 2005

17.ITTOIA 2005 is amended as follows.
18.In section 403(1) (dividends from non-UK resident companies: income charged),...
19.In section 406 (dividends of non-UK resident companies: later charge...
20.In section 407 (dividends of non-UK resident companies: dividend payment...
21.In section 408 (reduction in tax due in cases within...
22.In section 688(1) (income not otherwise charged), omit “full”.

ITA 2007

23.ITA 2007 is amended as follows.
24.In section 425(5) (gift aid: deductions when calculating total amount...
25.In section 504(4)(b) (provisions that do not apply to income...
26.(1) Section 567 (meaning of “overseas securities” etc) is amended...
27.(1) Section 592 (no tax credits for borrower under stock...
28.(1) Section 593 (no tax credits for interim holder under...
29.(1) Section 594 (no tax credits for original owner under...
30.(1) Section 595 (meaning of “manufactured dividend”) is amended as...
31.In section 989 (definitions), in the definition of “tax credit”,...

SCHEDULE 13
Company gains from investment life insurance contracts

Definitions
1.(1) In this Schedule— “investment life insurance contract” means— a...

Contract to be loan relationship
2.(1) If a relevant company is a party to an...

Increased non-trading credits

3.(1) This paragraph applies where— (a) by virtue of paragraph...
4.(1) Where the relevant company brings into account credits and...

Commencement

5.This Schedule has effect for accounting periods beginning on or...
6.(1) Where the relevant company was a party to an...
7.(1) This paragraph applies where— (a) the relevant company was...
8.(1) This paragraph applies where— (a) the relevant company was...

SCHEDULE 14
Company gains from investment life insurance contracts: consequential amendments etc

ICTA

1.ICTA is amended as follows.
2.(1) Subsection (1C) of section 437 (general annuity business: income...
3.Omit sections 539 to 551A (corporation tax in respect of...
4.(1) Section 552 (information: duty of insurers) is amended as...
5.In section 552ZA(3) (information: supplementary provisions), omit “section 546C(7)(a) of...
6.In section 552A(12) (tax representatives)— (a) omit “this Chapter and”...
7.Omit sections 553 to 553C (further provisions about corporation tax...
8.Omit sections 656 to 658 (purchased life annuities).
9.In paragraph 20 of Schedule 15 (qualifying policies)—

ITTOIA 2005

10.ITTOIA 2005 is amended as follows.
11.In section 467(5) (persons liable: UK resident trustees), for paragraph...
12.In section 469(2) (two or more persons interested in policy...
13.Omit section 486 (exclusion of maturity of capital redemption policies...
14.In section 501 (part surrenders: loans)— (a) in subsection (1),...
15.In section 541B(7) (section 541A: further definitions), omit paragraph (b)...
16.In Schedule 1 (consequential amendments), omit paragraphs 210 to 221...

Other repeals
17.Omit— (a) in FA 1989, section 90 and Schedule 9,...

Commencement
18.(1) The amendments made by this Schedule—

SCHEDULE 15
Changes in trading stock

Part 1 Income tax

1.ITTOIA 2005 is amended as follows.
2.After section 172 insert— Chapter 11A Trade profits: changes in...
3.In the heading of Chapter 12 of Part 2, insert...
4.In Schedule 4, in the table in Part 2, after...

Part 2 Corporation tax

Introduction
5.(1) This Part applies for the purposes of corporation tax....

Transfers of trading stock between trade and trader

6.(1) This paragraph applies if trading stock of a person's...
7.(1) This paragraph applies if something that—

Other disposals not made in the course of trade

8.(1) This paragraph applies if— (a) trading stock of a...
9.(1) This paragraph applies if— (a) trading stock of a...

Relationship with transfer pricing rules
10.(1) Paragraph 8 or 9 does not apply if the...

SCHEDULE 16
Non-residents: investment managers

Part 1 Eligibility to be UK representative

1.In section 127 of FA 1995 (persons not treated as...
2.(1) In section 127 of FA 1995, for subsections (12)...

Part 2 Eligibility to be agent of independent status

FA 2003
3.(1) In Schedule 26 of FA 2003 (non-resident companies: transactions...

ITA 2007

4.ITA 2007 is amended as follows.
5.(1) Section 827 (meaning of “investment transaction”) is amended as...
6.(1) Section 1014(2) (orders and regulations under the Income Tax...

Part 3 Non-residents liable to tax: disregarded investment income or profits

FA 2003

7.FA 2003 is amended as follows.
8.(1) Section 152 (non-resident companies: transactions carried out through broker,...
9.(1) Schedule 26 (non-resident companies: transactions through broker, investment manager...

ITA 2007
10.(1) Section 818 of ITA 2007 (the independent investment manager...

Part 4 Commencement
11.(1) The amendments made by paragraph 1 have effect in...

SCHEDULE 17
Insurance companies etc

Financing-arrangement-funded transfers

1.(1) FA 1989 is amended as follows.
2.In ICTA, for section 444AE substitute— Transfers of business: FAFTS...
3.In consequence of paragraphs 1 and 2, omit—
4.(1) The amendments made by paragraphs 1 to 3 have...

Expenses: fronting reinsurance commissions etc

5.(1) Section 76 of ICTA (expenses of insurance companies) is...
6.(1) Section 85 of FA 1989 (charge of certain receipts...

Structural assets

7.In section 83XA of FA 1989 (structural assets), omit—
8.(1) In section 431(2) of ICTA (interpretative provisions relating to...

Deposit back arrangements
9.(1) In paragraph 3A of Schedule 11 to FA 1996...

Foreign business assets
10.(1) In ICTA, in subsection (2) of section 431 (interpretative...

Foreign currency assets
11.(1) In section 431(2) of ICTA (interpretative provisions about insurance...

Derivative contracts
12.(1) Schedule 26 to FA 2002 (derivative contracts) is amended...

Apportionments

13.In section 210A of TCGA 1992 (ring fencing of losses),...
14.In section 755A of ICTA (treatment of chargeable profits and...
15.The amendments made by paragraphs 13 and 14 have effect...

UK distributions received by insurance companies
16.(1) In ICTA, after section 95 insert— Taxation of UK...

Clarification of scope of ICTA s.432A
17.(1) Section 432A of ICTA (apportionment of income and gains)...

“BLAGAB profits” etc
18.(1) In section 431 of ICTA (interpretative provisions relating to...

Abolition of “inherited estates” apportionment rules
19.(1) Chapter 1 of Part 12 of ICTA (insurance companies)...

Insurance special purpose vehicles
20.In section 431A of ICTA (powers to amend), after subsection...

Group relief: gross profits to exclude relevant profits
21.(1) In section 434A of ICTA (computation of losses and...

Charges on income
22.(1) In section 434A(3) of ICTA (limitation on relief), after...

Remediation of contaminated land
23.(1) Schedule 22 to FA 2001 (remediation of contaminated land)...

Repeal of ICTA s.56(4)
24.(1) In section 56 of ICTA (transactions in deposits and...

Partnership returns
25.In section 12AE(2) of TMA 1970 (partnership returns: alternative methods...

Overseas life assurance business

26.(1) Section 431D of ICTA (meaning of “overseas life assurance...
27.(1) In section 476(3) of ITTOIA 2005 (foreign policies), omit—...

Trades in I minus E
28.(1) In section 53 of ICTA (farming and market gardening...

Controlled foreign companies
29.(1) In paragraph 4(1A) of Schedule 25 to ICTA (controlled...

Offshore income gains
30.(1) In section 757 of ICTA (disposals to which Chapter...

Transfers of business

31.(1) In section 444AB(6) of ICTA (transfer schemes transferring whole...
32.(1) In section 444ABB(1A)(b)(ii) of ICTA (retained assets), for “liabilities”...
33.(1) In section 444ABD(1) of ICTA (transferor's period of account...

Periodical return
34.In section 431(2) of ICTA, in the definition of “periodical...

Repeal of section 737D of ICTA
35.(1) In ICTA, omit section 737D (power to provide that...

R&D relief
36.In paragraph 12 of Schedule 12 to FA 2002 (insurance...

Section 89(7) of FA 1989
37.(1) In section 89(7) of FA 1989 (policy holders' share...

Commencement of Schedule 9 to FA 2007
38.(1) Paragraph 17 of Schedule 9 to FA 2007 (transfers:...

Commencement of Business Transfer Schemes Order
39.(1) In article 1(5) of the Insurance Business Transfer Schemes...

Gross roll-up business
40.(1) In section 436A(6) of ICTA (gross roll-up business: separate...

Repeal of spent provision
41.In section 88(5) of FA 1989 (policy holders' share of...

SCHEDULE 18
Friendly societies

Introduction
1.Chapter 2 of Part 12 of ICTA (friendly societies etc)...

PHI business
2.(1) In section 466(1) (“life or endowment business”), for paragraph...

Transfers of exempt “other” business
3.(1) After section 461C insert— Transfers of other business (1) Where— (a) at any time a friendly society (“the...

Extension of section 463
4.In subsection (1) of section 463 (application of Corporation Tax...

Repeal of obsolete provisions
5.(1) Omit— (a) section 462(3) and (4) (tax exempt business:...

SCHEDULE 19
Reduction of basic rate of income tax: transitional relief for gift aid charities

Payment of gift aid supplement
1.(1) A charity is entitled to be paid an amount...

Amount of gift aid supplement
2.(1) The amount of gift aid supplement that a charity...

The “notional basic rate”
3.(1) The “notional basic rate” for a transitional tax year...

Errors in connection with payment of gift aid supplement
4.(1) This paragraph applies if an officer of Revenue and...

General

5.Gift aid supplement is not— (a) income for the purposes...
6.Any expenditure incurred by the Commissioners under this Schedule is...
7.In this Schedule— “charity” has the same meaning as in...

Amendments

8.In section 25 of FA 1990 (donations to charities by...
9.In section 521 of ITA 2007 (gifts entitling donor to...

SCHEDULE 20
Leases of plant or machinery

Capital received in respect of lease to be treated as income

1.(1) In Chapter 6 of Part 17 of ICTA (tax...
2.(1) In ITA 2007, after section 809 insert— Chapter 6...
3.In section 785A of ICTA (rent factoring of leases of...

Disposal events: grant of long funding lease
4.(1) Section 61 of CAA 2001 (disposal events and disposal...

Deemed disposals: plant or machinery used under long funding lease
5.(1) Section 25A of TCGA 1992 (long funding leases of...

Plant or machinery subject to a sale and finance leaseback or lease and finance leaseback

6.(1) Part 2 of CAA 2001 (plant and machinery allowances)...
7.(1) In section 70I of CAA 2001 (meaning of “short...

Restriction on lessee's right to elect that rules for non-long funding leases apply
8.(1) In section 70H of CAA 2001 (lessee: requirement for...

Lessors under long funding leases of plant or machinery

9.(1) Chapter 5A of Part 12 of ICTA (special rules...
10.(1) Chapter 10A of Part 2 of ITTOIA 2005 (corresponding...
11.(1) If, at the beginning of 13 December 2007 (“the...

Plant and machinery allowances: anti-avoidance

12.(1) Chapter 17 of Part 2 of CAA 2001 (plant...
13.(1) Section 228B of CAA 2001 (S's income or profits:...

SCHEDULE 21
Restriction on loss relief for non-active traders

Introduction
1.ITA 2007 is amended as follows.

Main provisions
2.After section 74 insert— General restrictions on sideways relief and...

Other amendments

3.In section 32 (liability not dealt with in the calculation),...
4.In section 64(8) (deduction of trade losses from general income),...
5.In section 72(5) (early trade loss relief)—

Commencement

6.(1) Section 74A of ITA, and the other provisions inserted...
7.(1) Section 74B of ITA, and the other provisions inserted...

SCHEDULE 22
Avoidance involving financial arrangements

Rent factoring of leases of plant or machinery
1.(1) Section 785A of ICTA (rent factoring of leases of...

Credit allowable in relation to interest
2.(1) In section 807A of ICTA (disposals and acquisitions of...

Distributions arising from tax arrangements
3.(1) In paragraph 1 of Schedule 9 to FA 1996...

Disposals for consideration not recognised by accounting practice
4.(1) In Schedule 9 to FA 1996 (loan relationships: special...

Avoidance relying on continuity of treatment provisions
5.(1) In paragraph 12 of Schedule 9 to FA 1996...

Distributions from shares treated as loan relationships
6.(1) In FA 1996, in— (a) section 91A(2)(b) (distributions in...

Depreciatory transactions

7.(1) Section 91A of FA 1996 (shares treated as loan...
8.(1) Section 91B of FA 1996 (shares treated as loan...
9.The amendments made by paragraphs 7 and 8 have effect...

Falsifying transactions

10.(1) Section 91A of FA 1996 (shares treated as loan...
11.(1) Section 91C of FA 1996 (shares treated as loan...
12.The amendments made by paragraphs 10 and 11 have effect...

Non-qualifying shares
13.(1) In section 91B(5)(a) of FA 1996 (debits and credits...

Income producing assets
14.(1) In section 91C(3) of FA 1996 (assets which are...

Exit arrangements
15.(1) In section 91D(2) of FA 1996 (shares treated as...

Schemes etc designed to reproduce interest-like return
16.(1) Section 91E of FA 1996 (shares treated as loan...

Partnerships
17.(1) In FA 1996, after section 91G insert— Partnerships Payments...

Loan relationships treated differently by debtor and creditor
18.(1) In FA 1996, after section 94A insert— Loan relationships...

Commercial rate of interest
19.(1) In section 103 of FA 1996 (interpretation of Chapter...

Derivative contracts
20.(1) Schedule 26 to FA 2002 (derivative contracts) is amended...

Restrictions on relief for interest payments
21.(1) Section 384 of ITA 2007 (general restrictions on relief...

SCHEDULE 23
Manufactured payments: anti-avoidance

Introduction
1.Chapter 2 of Part 11 of ITA 2007 (manufactured payments)...

Section 572A
2.After section 572 insert— Meaning of “avoidance arrangements” (1) In this Chapter “avoidance arrangements” means any arrangements the...

Section 573
3.In section 573(4) (manufactured dividends on UK shares: Income Tax...

Section 574
4.(1) Section 574 (allowable deductions for manufactured dividends on UK...

Section 575
5.Omit section 575 (allowable deductions for manufactured dividends on UK...

Section 578
6.In section 578(3) (manufactured interest on UK securities: Income Tax...

Section 579
7.(1) Section 579 (allowable deductions for manufactured interest on UK...

Section 580
8.Omit section 580 (allowable deductions for manufactured interest on UK...

Section 581A
9.After section 581 insert— Avoidance arrangements (1) A manufactured overseas dividend is not deductible if it...

Section 583
10.In section 583 (manufactured payments exceeding underlying payments), insert at...

Capital gains

11.(1) Section 263D of TCGA 1992 (gains accruing to persons...
12.In ITA 2007, omit paragraph 335(5) of Schedule 1 (which...

SCHEDULE 24
Annual investment allowance

Part 1 Amendments of CAA 2001

1.CAA 2001 is amended as follows.
2.In Part 2, after Chapter 3 insert— Chapter 3A AIA...
3.In Chapter 5 of Part 2 (allowances and charges), insert...
4.After section 52 insert— Prevention of double relief Prevention of...
5.In section 58 (allocation of qualifying expenditure to pools), after...
6.(1) Section 205 (reduction of first-year allowances) is amended as...
7.(1) Section 210 (reduction of first-year allowances) is amended as...
8.(1) Section 217 (restrictions on allowances) is amended as follows....
9.After section 218 insert— Further restriction on annual investment allowance...
10.(1) Section 236 (additional VAT liability generates first-year allowance) is...
11.In section 237(1) (exceptions to section 236), after “liability is...
12.(1) Section 241 (no first-year allowance in respect of additional...
13.In section 263(3) (qualifying activities carried on in partnership), after...
14.In section 265(4) (successions: general), after “to” insert “ an...
15.In Part 2 of Schedule 1 (index of defined expressions),...

Part 2 Amendments of other enactments

ICTA

16.ICTA is amended as follows.
17.In section 395(1)(c) (leasing contracts and company reconstructions), after “for...
18.In paragraph 1(6)(b)(i) of Schedule 18 (group relief), before “a...

FA 2000
19.(1) Schedule 22 to FA 2000 (tonnage tax) is amended...

ITA 2007

20.ITA 2007 is amended as follows.
21.In section 76 (first-year allowances)— (a) after “from” insert “...
22.In section 78 (arrangements to reduce tax liabilities)—

Part 3 Commencement
23.(1) This Schedule has effect in relation to expenditure incurred...

SCHEDULE 25
First-year tax credits

Part 1 Amendments of CAA 2001

1.CAA 2001 is amended as follows.
2.In section 2(3) (general means of giving effect to capital...
3.(1) Section 3 (claims for capital allowances) is amended as...
4.After section 262 insert— First-year tax credits First-year tax credits...
5.Before Schedule 1 insert— SCHEDULE A1 First-year tax credits Section...
6.In Part 1 of Schedule 1, insert at the appropriate...

Part 2 Amendments of other enactments

ICTA
7.(1) Section 826 of ICTA (interest on tax overpaid) is...

FA 1998
8.(1) Schedule 18 to FA 1998 (company tax returns, assessments...

Part 3 Commencement
9.The amendments made by this Schedule have effect in relation...

SCHEDULE 26
Special rate expenditure and the special rate pool

Part 1 Amendments of CAA 2001

Introductory
1.CAA 2001 is amended as follows.

Special rate expenditure and the special rate pool
2.After Chapter 10 insert— Chapter 10A Special rate expenditure Special...

Consequential amendments

3.In section 54(5) (the different kinds of pools), for “section...
4.In section 56(2) (amount of allowances and charges), for paragraph...
5.In section 65(1) (final chargeable period), for paragraph (b) substitute—...
6.In section 66 (list of provisions about disposal values), for...
7.In column 1 of the table in section 84 (cases...
8.Omit section 92 (application of Chapter 10 to part of...
9.For section 101 (long-life asset pool) substitute— Allocation of long-life...
10.For section 102 (6% writing-down allowance in respect of long-life...
11.Omit section 104 (disposal value of long-life assets).
12.In section 266(7) (certain provisions disapplied where election made under...
13.In Part 2 of Schedule 1 (index of defined expressions),...

Part 2 Commencement etc

Commencement
14.(1) This Schedule has effect in relation to—

Sale between connected persons
15.(1) This paragraph applies where, on or after the relevant...

Saving for intra-group transfers

16.(1) This paragraph applies where, on or after the relevant...
17.(1) Where this paragraph applies, for the purposes of making...

Interpretation
18.Expressions used in this Part of this Schedule and in...

SCHEDULE 27
Abolition of allowances: consequential amendments and savings

Part 1 Consequential amendments

CAA 2001

1.CAA 2001 is amended as follows.
2.In section 1 (capital allowances), omit— (a) subsection (2)(b) and...
3.In section 2(3) (general means of giving effect to capital...
4.In section 3 (claims for capital allowances), omit subsections (4)(b)...
5.(1) Section 186 (fixture on which an industrial buildings allowance...
6.In section 443(3) (disposal values and disposal events), omit “or...
7.In section 448(3) (additional VAT rebate generates disposal value), omit...
8.In section 537 (contribution allowances), omit “, 3, 4” in—...
9.Omit section 539 (contribution allowances: industrial buildings).
10.Omit section 540 (contribution allowances: agricultural buildings).
11.In section 542(1) (effect of transfers of trade on contribution...
12.In section 546 (introduction to Chapter 2 of Part 12),...
13.In section 564 (application of procedure in section 563)—
14.In section 567(1) (sales treated as for alternative amounts), omit...
15.In section 569 (election to treat sale as being for...
16.In section 570 (elections: supplementary), omit— (a) in subsection (1),...
17.In section 570A(1) (avoidance affecting proceeds of balancing event), omit...
18.In section 573(1) (transfers treated as sales), omit “3,” and...
19.(1) Part 2 of Schedule 1 (index of defined expressions)...
20.In Schedule 3 (transitional provision and savings), omit—

ICTA
21.In section 495 of ICTA (regional development grants), omit—

FA 2000
22.In Schedule 22 (tonnage tax), omit paragraphs 84 and 86....

FA 2001
23.(1) FA 2001 is amended as follows.

Proceeds of Crime Act 2002 (c. 29)
24.In Schedule 10 to the Proceeds of Crime Act 2002...

Energy Act 2004 (c. 20)
25.In Schedule 4 to the Energy Act 2004 (tax exemption...

ITTOIA 2005
26.In Schedule 1 to ITTOIA 2005 (consequential amendments), omit paragraphs...

ITA 2007
27.(1) ITA 2007 is amended as follows.

FA 2007
28.In FA 2007, omit section 36 (industrial and agricultural buildings...

FA 2008
29.In FA 2008, omit— (a) section 85 (phasing out of...

Commencement
30.(1) Subject to sub-paragraph (2), this Part of this Schedule...

Part 2 Savings

Enterprise zone expenditure

31.(1) Sub-paragraph (2) applies if— (a) an initial allowance or...
32.(1) Sub-paragraph (2) applies if— (a) an initial allowance has...

Definition of structure
33.Despite the repeal of Part 3 of CAA 2001 by...

Definition of qualifying trade
34.Despite the repeal of Part 3 of CAA 2001 by...

Commencement
35.This Part of this Schedule has effect in relation to...

SCHEDULE 28
Inheritance of tax-relieved pension savings

Amendments of Part 4 of FA 2004

1.Part 4 of FA 2004 (pension schemes etc) is amended...
2.(1) Section 172 (assignment) is amended as follows.
3.(1) Section 172A (surrender) is amended as follows.
4.(1) Section 172B (increase in rights of connected person on...
5.In paragraph 16(2) of Schedule 28 (dependants' scheme pension), after...

Amendments of IHTA 1984

6.IHTA 1984 is amended as follows.
7.(1) Section 151A (person dying with alternatively secured pension fund)...
8.(1) Section 151BA (rate or rates of charge under section...
9.(1) Section 151C (dependant dying with alternatively secured pension fund...
10.After section 151C insert— Unauthorised payment where person dies over...
11.In section 210 (persons liable), after subsection (2) insert—
12.(1) Section 216 (delivery of accounts) is amended as follows....
13.In section 226(4) (payment), for “or 151B” substitute “ ,...
14.In section 233(1)(c) (interest on unpaid tax), for “or 151B”...

Commencement
15.(1) The amendments made by paragraph 2 have effect in...

SCHEDULE 29
Further provision about pension schemes

Authorised member payments
1.(1) Part 4 of FA 2004 (pension schemes etc) is...

Transfer of lifetime annuities and dependants' annuities
2.(1) Schedule 28 to FA 2004 (authorised pensions etc) is...

Definition of investment-regulated pension schemes
3.(1) In Schedule 29A to FA 2004 (taxable property etc),...

Benefit crystallisation event 3

4.Part 4 of FA 2004 (pension schemes etc) is amended...
5.In the table in section 216(1) (benefit crystallisation events), in...
6.Schedule 32 (benefit crystallisation events: supplementary) is amended as follows....
7.(1) Paragraph 10 (benefit crystallisation event 3: excepted circumstances) is...
8.After that paragraph insert— Benefit crystallisation event 3: threshold annual...
9.(1) Paragraph 11 (benefit crystallisation event 3: permitted margin) is...
10.In paragraph 13 (benefit crystallisation event 3: meaning of XP),...
11.In consequence of the amendment made by paragraph 7(3), in...
12.(1) The amendments made by paragraphs 9(2) and (3) come...

Transitional protection of lump sums
13.(1) In paragraph 34 of Schedule 36 to FA 2004...

Miscellaneous provision about registered pension schemes

14.(1) FA 2004 is amended as follows.
15.In section 215(4)(a) of FA 2004 (amount of lifetime allowance...
16.In Schedule 34 to that Act (non-UK schemes: application of...

Employer contributions under exempt approved schemes
17.(1) This paragraph applies in relation to section 592 of...

Inheritance tax treatment of non-UK pension schemes
18.(1) IHTA 1984 is amended as follows.

Application of charges to non-UK pension schemes
19.(1) Schedule 34 to FA 2004 (which applies certain charges...

SCHEDULE 30
Stamp duty land tax: notification etc: consequential provision

FA 2003

1.Part 4 of FA 2003 (stamp duty land tax) is...
2.(1) Section 79 (registration of land transactions) is amended as...
3.In section 81B(1) (declaration by person authorised to act on...
4.(1) Section 103 (joint purchasers) is amended as follows.
5.(1) Section 122 (index of defined expressions) is amended as...
6.In Part 4 of Schedule 6 (SDLT: disadvantaged areas relief),...
7.In paragraph 36 of Schedule 10 (notice of appeal), in...
8.Omit Part 1 of Schedule 11 (SDLT: self-certificates).
9.(1) In Part 2 of that Schedule (duty to keep...
10.Omit Part 3 of that Schedule (enquiry into self-certificate).
11.Accordingly, in the heading to Schedule 11, for “self-certificates” substitute...
12.In Schedule 15 (SDLT: partnerships), in paragraph 8(2), omit “or...
13.(1) In Schedule 16 (SDLT: trusts and powers), paragraph 6...
14.In Schedule 17A (SDLT: further provisions relating to leases), in...

FA 2007
15.In consequence of the preceding provisions of this Schedule, omit...

SCHEDULE 31
Stamp duty land tax: special provisions for property-investment partnerships

Part 1 Transfer of interest in partnership: “relevant partnership property”

Paragraph 14 of Schedule 15 to FA 2003
1.(1) Paragraph 14 of Schedule 15 to FA 2003 (transfer...

Consequential provision

2.In paragraph 15(1) of that Schedule (exclusion of market rent...
3.In paragraph 16(2) of that Schedule (application of provisions about...
4.In paragraph 26(9) of that Schedule (application of disadvantaged areas...

Part 2 Elections in respect of interest transferred to partnership

Election when interest transferred to partnership

5.In paragraph 10 of Schedule 15 to FA 2003 (transfer...
6.After paragraph 12 insert— Election by property-investment partnership to disapply...
7.In paragraph 18 of that Schedule (transfer of chargeable interest...

Consequential provision

8.In paragraph 17A(1) of that Schedule (withdrawal of money etc...
9.In paragraph 26(8) of that Schedule (application of disadvantaged areas...

Part 3 Transitional provision

10.Omit section 72(14) of FA 2007 (saving relating to changes...
11.(1) This paragraph applies in the case of a transfer...

SCHEDULE 32
Stamp duty: abolition of fixed duty on certain instruments

Part 1 Abolition of fixed duty

FA 1985

1.Part 3 of FA 1985 (stamp duty) is amended as...
2.In section 83 (transfers in connection with divorce, dissolution of...
3.In section 84 (death: varying dispositions, and appropriations)—

FA 1986

4.Part 3 of FA 1986 (stamp duty) is amended as...
5.In section 66 (company's purchase of own shares), omit subsection...
6.In section 67(9) (transfer of securities between depositary receipt systems),...
7.In section 70(9) (transfer of securities between clearance systems), for...
8.In section 72A(1) (transfer of securities between depositary receipt system...

FA 1999

9.FA 1999 is amended as follows.
10.(1) Schedule 13 (instruments chargeable to stamp duty and rates...
11.(1) Schedule 15 (stamp duty: bearer instruments) is amended as...

Part 2 Consequential provisions and saving

FA 1982
12.In section 129(1) of FA 1982 (exemption from duty on...

FA 1986

13.Part 3 of FA 1986 (stamp duty) is amended as...
14.(1) Section 67 (stamp duty on certain transfers to depositary...
15.(1) Section 70 (stamp duty on certain transfers to a...

FA 1987

16.Part 3 of FA 1987 (stamp duty and stamp duty...
17.In section 50(1) (warrants to purchase Government stock, etc), omit...
18.In section 55(1) (Crown exemption), omit “, or paragraph 16”....

FA 1990
19.In section 108(1) of FA 1990 (abolition of stamp duty...

FA 1999
20.In Schedule 14 to FA 1999, omit paragraphs 10(b), 11(b),...

FA 2003
21.In Schedule 40 to FA 2003, omit paragraph 2(b).

Saving for certain land transactions
22.(1) The following provisions of this Schedule do not have...

Repeals on abolition day
23.If a day is appointed under section 111 of FA...

SCHEDULE 33
PRT: elections for oil fields to become non-taxable

Part 1 New Schedule 20A to FA 1993
1.This is Schedule 20A to be inserted before Schedule 21...

Part 2 Other amendments

OTA 1975
2.In section 6 of OTA 1975 (allowances of unrelievable loss...

FA 1980
3.In Schedule 17 to FA 1980 (transfers of interests in...

Oil Taxation Act 1983
4.In section 9 of the Oil Taxation Act 1983 (c....

SCHEDULE 34
Oil decommissioning expenditure: consequential amendments

ICTA
1.In section 393A of ICTA (losses: set off against profits),...

CAA 2001

2.CAA 2001 is amended as follows.
3.In section 26 (demolition costs), in subsection (5), for “abandonment...
4.In section 57 (available qualifying expenditure), in the entry in...
5.(1) Section 164 (abandonment expenditure incurred before cessation of ring...
6.(1) Section 165 (abandonment expenditure within 3 years of ceasing...

SCHEDULE 35
Set off against oil profits: minor and consequential amendments

TMA 1970
1.In section 87A of TMA 1970 (interest on overdue corporation...

ICTA

2.ICTA is amended as follows.
3.In section 343 (company reconstructions without change of ownership), in...
4.In section 393 (losses other than terminal losses), in subsection...
5.In section 393A (losses: set off against profits of the...
6.In section 768A (change in ownership: disallowance of carry back...
7.In section 826 (interest on tax overpaid), in subsection (7A)(b),...
8.(1) Schedule 19B (petroleum extraction activities: exploration expenditure supplement) is...
9.(1) Schedule 19C (petroleum extraction activities: ring fence expenditure supplement)...

FA 2000
10.(1) Schedule 20 to FA 2000 (tax relief for expenditure...

SCHEDULE 36
Information and inspection powers

Part 1 Powers to obtain information and documents

Power to obtain information and documents from taxpayer
1.(1) An officer of Revenue and Customs may by notice...

Power to obtain information and documents from third party
2.(1) An officer of Revenue and Customs may by notice...

Approval etc of taxpayer notices and third party notices
3.(1) An officer of Revenue and Customs may not give...

Copying third party notice to taxpayer
4.(1) An officer of Revenue and Customs who gives a...

Power to obtain information and documents about persons whose identity is not known
5.(1) An authorised officer of Revenue and Customs may by...

Notices
6.(1) In this Schedule, “information notice” means a notice under...

Complying with notices
7.(1) Where a person is required by an information notice...

Producing copies of documents
8.(1) Where an information notice requires a person to produce...

Restrictions and special cases
9.This Part of this Schedule has effect subject to Parts...

Part 2 Powers to inspect businesses etc

Power to inspect business premises etc
10.(1) An officer of Revenue and Customs may enter a...

Power to inspect premises used in connection with taxable supplies etc
11.(1) This paragraph applies where an officer of Revenue and...

Carrying out inspections
12.(1) An inspection under this Part of this Schedule may...

Approval of First-tier Tribunal
13.(1) An officer of Revenue and Customs may ask the...

Restrictions and special cases
14.This Part of this Schedule has effect subject to Parts...

Part 3 Further powers

Power to copy documents
15.Where a document (or a copy of a document) is...

Power to remove documents
16.(1) Where a document is produced to, or inspected by,...

Power to mark assets and to record information
17.The powers under Part 2 of this Schedule include—

Part 4 Restrictions on powers

Documents not in person's possession or power
18.An information notice only requires a person to produce a...

Types of information
19.(1) An information notice does not require a person to...

Old documents
20.An information notice may not require a person to produce...

Taxpayer notices
21.(1) Where a person has made a tax return in...

Deceased persons
22.An information notice given for the purpose of checking the...

Privileged communications between professional legal advisers and clients
23.(1) An information notice does not require a person—

Auditors
24.(1) An information notice does not require a person who...

Tax advisers
25.(1) An information notice does not require a tax adviser—...

Auditors and tax advisers: supplementary

26.(1) Paragraphs 24(1) and 25(1) do not have effect in...
27.(1) This paragraph applies where paragraph 24(1) or 25(1) is...

Corresponding restrictions on inspection of business documents
28.An officer of Revenue and Customs may not inspect a...

Part 5 Appeals against information notices

Right to appeal against taxpayer notice
29.(1) Where a taxpayer is given a taxpayer notice, the...

Right to appeal against third party notice
30.(1) Where a person is given a third party notice,...

Right to appeal against notice given under paragraph 5
31.Where a person is given a notice under paragraph 5,...

Procedure
32.(1) Notice of an appeal under this Part of this...

Special cases
33.This Part of this Schedule has effect subject to Part...

Part 6 Special cases

Supply of goods or services etc
34.(1) This paragraph applies to a taxpayer notice or third...

Groups of undertakings
35.(1) This paragraph applies where an undertaking is a parent...

Change of ownership of companies
36.(1) Sub-paragraph (2) applies where it appears to the Commissioners...

Partnerships
37.(1) This paragraph applies where a business is carried on...

Application to the Crown
38.This Schedule (other than Part 8) applies to the Crown,...

Part 7 Penalties

Standard penalties
39.(1) This paragraph applies to a person who—

Daily default penalties
40.(1) This paragraph applies if the failure or obstruction mentioned...

Power to change amount of standard and daily default penalties
41.(1) If it appears to the Treasury that there has...

Concealing, destroying etc documents following information notice
42.(1) A person must not conceal, destroy or otherwise dispose...

Concealing, destroying etc documents following informal notification
43.(1) A person must not conceal, destroy or otherwise dispose...

Failure to comply with time limit
44.A failure by a person to do anything required to...

Reasonable excuse
45.(1) Liability to a penalty under paragraph 39 or 40...

Assessment of standard penalty or daily default penalty
46.(1) Where a person becomes liable for a penalty under...

Right to appeal against standard penalty or daily default penalty
47.A person may appeal to the First-tier Tribunal against any...

Procedure on appeal against standard penalty or daily default penalty
48.(1) Notice of an appeal under paragraph 47 must be...

Enforcement of standard penalty or daily default penalty
49.(1) A penalty under paragraph 39 or 40 must be...

Tax-related penalty
50.(1) This paragraph applies where— (a) a person becomes liable...

Enforcement of tax-related penalty
51.(1) A penalty under paragraph 50 must be paid before...

Double jeopardy
52.A person is not liable to a penalty under this...

Part 8 Offence

Concealing etc documents following information notice
53.(1) A person is guilty of an offence (subject to...

Concealing etc documents following informal notification
54.(1) A person is also guilty of an offence (subject...

Fine or imprisonment
55.A person who is guilty of an offence under this...

Part 9 Miscellaneous provisions and interpretation

Application of provisions of TMA 1970
56.Subject to the provisions of this Schedule, the following provisions...

Regulations under this Schedule
57.(1) Regulations made by the Commissioners or the Treasury under...

General interpretation
58.In this Schedule— “checking” includes carrying out an investigation or...

Authorised officer of Revenue and Customs
59.A reference in a provision of this Schedule to an...

Business
60.(1) In this Schedule (subject to regulations under this paragraph),...

Chargeable period
61.In this Schedule “chargeable period” means— (a) in relation to...

Statutory records
62.(1) For the purposes of this Schedule, information or a...

Tax
63.(1) In this Schedule, except where the context otherwise requires,...

Tax position
64.(1) In this Schedule, except as otherwise provided, “tax position”,...

Part 10 Consequential provisions

TMA 1970

65.TMA 1970 is amended as follows.
66.Omit section 19A (power to call for documents for purposes...
67.Omit section 20 (power to call for documents of taxpayer...
68.(1) Section 20B (restrictions on powers to call for documents...
69.(1) Section 20BB (falsification etc. of documents) is amended as...
70.(1) Section 20D (interpretation) is amended as follows.
71.In section 29(6)(c) (assessment where loss of tax discovered), omit...
72.Omit section 97AA (failure to produce documents under section 19A)....
73.In section 98 (penalties), in the Table—
74.In section 100(2) (exclusions from provisions relating to determination of...
75.(1) Section 107A (relevant trustees) is amended as follows.
76.In section 118 (interpretation), in the definition of “tax”, omit...
77.In Schedule 1A (claims etc. not included in returns), omit...

National Savings Bank Act 1971 (c. 29)
78.In section 12(3) (secrecy), for the words from “and of...

ICTA

79.ICTA is amended as follows.
80.In section 767B (change of company ownership: supplementary), in subsection...
81.Omit section 767C (change in company ownership: information).
82.In section 769 (rules for ascertaining change in ownership of...

FA 1990
83.In section 125 of FA 1990 (information for tax authorities...

Social Security Administration Act 1992 (c. 5)
84.In section 110ZA of the Social Security Administration Act 1992...

Social Security Administration (Northern Ireland) Act 1992 (c. 8)
85.In section 104ZA of the Social Security Administration (Northern Ireland)...

F(No.2)A 1992
86.Omit section 28(1) to (3) (powers of inspection).

VATA 1994
87.(1) Schedule 11 to VATA 1994 is amended as follows....

FA 1998
88.In Schedule 18 to FA 1998 (company tax returns), omit...

FA 1999
89.In section 13(5) (gold), omit paragraph (c).

Tax Credits Act 2002 (c. 21)
90.In section 25 of the Tax Credits Act 2002 (payments...

FA 2006
91.Omit section 174 of FA 2006 (international tax enforcement arrangements:...

Other repeals
92.In consequence of the preceding provisions of this Part of...

SCHEDULE 37
Record-keeping

TMA 1970

1.TMA 1970 is amended as follows.
2.(1) Section 12B (records to be kept for purposes of...
3.(1) Paragraph 2A of Schedule 1A (records to be kept...

VATA 1994

4.Schedule 11 to VATA 1994 (administration, collection and enforcement) is...
5.(1) Paragraph 6 (duty to keep records) is amended as...
6.In paragraph 6A(7) (application of provisions of paragraph 6 where...

FA 1998

7.Schedule 18 to FA 1998 (company tax returns) is amended...
8.(1) Paragraph 21 (duty to keep and preserve records) is...
9.(1) Paragraph 22 (preservation of information instead of original records)...

Consequential provisions

10.In section 13(6) of FA 1999 (VAT and gold)—
11.In consequence of the amendments made by paragraph 2 omit—...

SCHEDULE 38
Disclosure of tax avoidance schemes

Amendments of Part 7 of FA 2004

1.Part 7 of FA 2004 (disclosure of tax avoidance schemes)...
2.(1) Section 308 (duties of promoter) is amended as follows....
3.In section 311(1) (arrangements to be given reference number)—
4.For section 312 substitute— Duty of promoter to notify client...
5.(1) Section 313 (duty of parties to notifiable arrangements to...
6.For section 316 substitute— Information to be provided in form...

Amendments of TMA 1970
7.(1) Section 98C of TMA 1970 (penalties for failure to...

SCHEDULE 39
Time limits for assessments, claims etc.

TMA 1970

1.TMA 1970 is amended as follows.
2.In section 28C(5)(a) (time limit for determination of tax where...
3.In section 29(4) (assessment where loss of tax discovered), for...
4.In section 30B(5) (amendment of partnership statement where loss of...
5.In section 33(1) (claim for error or mistake), for “not...
6.In section 33A(2) (error or mistake in partnership return), for...
7.(1) Section 34 (ordinary time limit for assessments) is amended...
8.In section 35 (time limit: income received after year for...
9.(1) Section 36 (fraudulent or negligent conduct) is amended as...
10.In section 37A (effect of assessment where allowances transferred), for...
11.(1) Section 40 (assessment on personal representatives) is amended as...
12.In section 43(1) (time limit for making claims), for “five...
13.In section 43A(1)(b) (further assessments: claims etc), for the words...
14.In section 43C(1)(b) (consequential claims etc), for “attributable to fraudulent...
15.In section 118 (interpretation) insert at the end—

ICTA

16.ICTA is amended as follows.
17.In section 36(2)(b) (claims for repayment of tax on sale...
18.In section 257AB(9) (elections in respect of married couple's allowance...
19.In section 257BB(5)(a) (notices in respect of transfer of relief...
20.In section 265(5) (notices in respect of transfer of blind...
21.In section 270(4) (claims for repayment of excess paid on...
22.In section 419(4) (claims for relief from tax where loan...
23.In section 500(4) and (9) (additional assessment to corporation tax...
24.In section 806(1) (time limit for claims for allowance under...
25.In section 806G(3)(a) (claims for the purposes of utilisation of...
26.In section 806M(7)(a) (claims for the purpose of carry forward...

FA 1991
27.In section 65(6) of FA 1991 (additional assessment to corporation...

TCGA 1992

28.TCGA 1992 is amended as follows.
29.In section 203(2) (claims in respect of certain capital losses),...
30.In section 253(4A) (claims for relief for loans to traders)—...
31.In section 279(5) (claims in respect of delayed remittance of...

VATA 1994

32.VATA 1994 is amended as follows.
33.In section 33A(4) (refunds of VAT to museums and galleries),...
34.(1) Section 77 (assessments: time limits and supplementary assessments) is...
35.In section 78(11) (interest in certain cases of official error),...
36.In section 80(4) (credit for, or repayment of, overstated or...

FA 1998

37.Schedule 18 to FA 1998 (company tax returns) is amended...
38.In paragraph 36(5) (determination of tax payable if no return...
39.In paragraph 37(4) (determination of tax payable if notice complied...
40.In paragraph 40(3) (time limit for self-assessment superseding determination), for...
41.(1) Paragraph 43 (fraudulent or negligent conduct) is amended as...
42.(1) Paragraph 46 (general time limits for assessments) is amended...
43.In paragraph 51(1)(c) (relief in case of mistake in return),...
44.(1) Paragraph 53 (time limit for recovery of excessive payments...
45.In paragraph 55 (general time limit for making claims), for...
46.In paragraph 61(2) (consequential claims etc arising out of certain...
47.(1) Paragraph 65 (consequential claims) is amended as follows.

FA 2002
48.In paragraph 27 of Schedule 16 (withdrawal or reduction of...

ITEPA 2003
49.In section 711(2) (notice requiring officer of Revenue and Customs...

ITTOIA 2005

50.ITTOIA 2005 is amended as follows.
51.In section 301(3) (claims for repayment of tax payable in...
52.In section 302(3) (claims for repayment of tax payable in...
53.In section 840A(1) (claims for relief for backdated pensions charged...

ITA 2007

54.ITA 2007 is amended as follows.
55.In section 40(1)(a) (election for transfer of blind person's allowance),...
56.In section 46(6)(b) (marriages and civil partnerships on or after...
57.In section 53(4)(a) (notice in respect of transfer of unused...
58.In section 155 (claim for loss relief against miscellaneous income),...
59.(1) Section 237 (EIS relief: time limits for assessments) is...
60.In section 372 (withdrawal or reduction of community investment tax...
61.In section 668(7) (claim for relief for unremittable transfer proceeds),...
62.In section 669(4) (claim for relief for unremittable transfer proceeds:...

Consequential amendments

63.In section 178(3) of FA 1993 (stop-loss and quota share...
64.In section 225(3)(b) of FA 1994 (stop-loss and quota share...
65.In consequence of the preceding provisions of this Schedule, omit—...

Saving
66.The amendments of sections 33, 34 and 36 of TMA...

SCHEDULE 40
Penalties: amendments of Schedule 24 to FA 2007

1.Schedule 24 to FA 2007 (penalties for errors) is amended...
2.(1) Paragraph 1 (error in taxpayer's document) is amended as...
3.After that paragraph insert— Error in taxpayer's document attributable to...
4.(1) Paragraph 2 (under-assessment by HMRC) is amended as follows....
5.(1) Paragraph 3 (degrees of culpability) is amended as follows...
6.In paragraph 4 (standard amount), after sub-paragraph (1) insert—
7.In paragraph 5(1) (potential lost revenue: normal rule), after “document”...
8.(1) Paragraph 6 (potential lost revenue: multiple errors) is amended...
9.(1) Paragraph 9 (reductions for disclosure) is amended as follows....
10.In paragraph 11(1) (special reduction), after “1” insert “ ,...
11.(1) Paragraph 12 (interaction with other penalties) is amended as...
12.(1) Paragraph 13 (assessment) is amended as follows.
13.In paragraph 15 (right of appeal)— (a) for “P may”...
14.For paragraph 16 substitute— (1) An appeal is to be brought to the First-tier...
15.In paragraph 18(3) (agency), after “penalty” insert “ under paragraph...
16.(1) Paragraph 19 (companies: officers' liability) is amended as follows....
17.In paragraph 21 (double jeopardy)— (a) for “P is” substitute...
18.In paragraph 22 (interpretation: introduction), for “26” substitute “ 27...
19.After paragraph 23 insert— “Tax”, without more, includes duty.
20.(1) Paragraph 28 (interpretation) is amended as follows.
21.In consequence of this Schedule the following provisions are omitted—...

SCHEDULE 41
Penalties: failure to notify and certain VAT and excise wrongdoing

Failure to notify etc
1.A penalty is payable by a person (P) where P...

Issue of invoice showing VAT by unauthorised person
2.(1) A penalty is payable by a person (P) where...

Putting product to use that attracts higher duty
3.(1) A penalty is payable by a person (“P”) where...

Handling goods subject to unpaid excise duty
4.(1) A penalty is payable by a person (P) where—...

Degrees of culpability
5.(1) A failure by P to comply with a relevant...

Amount of penalty: standard amount
6.(1) The penalty payable under any of paragraphs 1, 2,...

Potential lost revenue

7.(1) “The potential lost revenue” in respect of a failure...
8.In the case of the making of an unauthorised issue...
9.In the case of— (a) the doing of an act...
10.In the case of acquiring possession of, or being concerned...
11.(1) In calculating potential lost revenue in respect of a...

Reductions for disclosure

12.(1) Paragraph 13 provides for reductions in penalties under paragraphs...
13.(1) Where a person who would otherwise be liable to...

Special reduction
14.(1) If HMRC think it right because of special circumstances,...

Interaction with other penalties and late payment surcharges
15.(1) The amount of a penalty for which P is...

Assessment
16.(1) Where P becomes liable for a penalty under any...

Appeal

17.(1) P may appeal against a decision of HMRC that...
18.(1) An appeal is to be brought to the First-tier...
19.(1) On an appeal under paragraph 17(1) the First-tier Tribunal...

Reasonable excuse
20.(1) Liability to a penalty under any of paragraphs 1,...

Agency
21.(1) In paragraph 1 the reference to a failure by...

Companies: officers' liability
22.(1) Where a penalty under any of paragraphs 1, 2,...

Double jeopardy
23.P is not liable to a penalty under any of...

Interpretation
24.(1) This paragraph applies for the construction of this Schedule...

Consequential repeals
25.In consequence of this Schedule the following provisions are omitted—...

SCHEDULE 42
Alcoholic liquor duties: decisions subject to review and appeal

1.Schedule 5 to FA 1994 (customs and excise decisions subject...
2.(1) Sub-paragraph (1) of paragraph 3 (decisions under or for...
3.(1) Sub-paragraph (2) of paragraph 3 (decisions under regulations under...
4.After sub-paragraph (2) of paragraph 3 insert—
5.(1) Sub-paragraph (3) of paragraph 3 (decisions under section 55,...
6.After sub-paragraph (3) of paragraph 3 insert—
7.After paragraph 9 insert— The Finance Act 1995 Any decision by the Commissioners— (a) on a claim under...

SCHEDULE 43
Taking control of goods etc: consequential provision

Part 1 Consequential provision: taking control of goods

TMA 1970
1.(1) Section 61 of TMA 1970 (distraint by collection) is...

Social Security Administration Act 1992 (c. 5)
2.In the Social Security Administration Act 1992, omit section 121A...

FA 1994
3.(1) FA 1994 is amended as follows.

VATA 1994
4.In VATA 1994, omit section 67A (breach of controlled goods...

FA 1996
5.In Schedule 5 to FA 1996 (landfill tax), omit paragraph...

FA 1997
6.In section 51 of FA 1997 (enforcement by distress), omit...

FA 2000
7.In Schedule 6 to FA 2000 (climate change levy), omit...

FA 2001
8.In Schedule 5 to FA 2001 (aggregates levy: recovery and...

FA 2003
9.In Schedule 12 to FA 2003 (stamp duty land tax:...

Tribunals, Courts and Enforcement Act 2007 (c. 15)
10.(1) Schedule 12 of the Tribunals, Courts and Enforcement Act...

Other repeals
11.In consequence of the preceding provisions of this Schedule, omit—...

Part 2 Consequential provision: summary warrant

TMA 1970
12.In TMA 1970 omit— (a) section 63 (recovery of tax...

Debtors (Scotland) Act 1987 (c. 18)
13.(1) In section 1 (time to pay directions)—

Social Security Administration Act 1992 (c. 5)
14.In the Social Security Administration Act 1992, omit section 121B...

FA 1997
15.In FA 1997, omit section 52 (recovery of relevant tax...

FA 2003
16.In Schedule 12 to FA 2003 (stamp duty land tax:...

SCHEDULE 44
Certificates of debt: consequential provision

TMA 1970
1.In section 70 of TMA 1970 (evidence), omit subsections (1)...

OTA 1975
2.In the table in paragraph 2(1) of Schedule 2 to...

IHTA 1984
3.In section 254 of IHTA 1984 (evidence), omit subsection (2)....

Social Security Administration Act 1992 (c. 5)
4.In section 118 of the Social Security Administration Act 1992...

FA 1994
5.In Schedule 7 to FA 1994 (insurance premium tax), in...

VATA 1994
6.In Schedule 11 to VATA 1994 (administration, collection and enforcement...

FA 1996
7.In Schedule 5 to FA 1996 (landfill tax), in paragraph...

FA 2000
8.In Schedule 6 to FA 2000 (climate change levy), in...

FA 2001
9.In Schedule 7 to FA 2001 (aggregates levy: information and...

FA 2003
10.In Schedule 12 to FA 2003 (stamp duty land tax:...

Other repeals
11.In consequence of the preceding provisions of this Schedule, omit—...

SCHEDULE 45
Vehicle excise duty: offence of using or keeping unlicensed vehicle

Introductory
1.VERA 1994 is amended as follows.

Amendments of section 29
2.(1) Section 29 (offence of using or keeping unlicensed vehicle)...

Amendment of section 30
3.In section 30(2) (additional penalty for keeper of unlicensed vehicle),...

Amendments of Schedule 2A

4.Schedule 2A (immobilisation, removal and disposal of vehicles) is amended...
5.(1) Paragraph 1 (immobilisation) is amended as follows.
6.In paragraph 2(4) (offences connected with immobilisation), for paragraphs (a)...
7.(1) Paragraph 3 (removal and disposal of vehicles) is amended...
8.In paragraph 4(1) (offences as to securing possession of vehicles),...

SCHEDULE 46
Government borrowing: alternative finance arrangements

Introduction

1.In this Schedule “regulations” means regulations under section 157.
2.Paragraphs 3 to 14 do not limit the generality of...

Alternative finance arrangements that are to be available
3.(1) Regulations may make provision about the kind or kinds...

Terms, conditions and procedures
4.(1) Regulations may make provision about— (a) the terms on...

Decisions to raise money through alternative finance arrangements
5.(1) Regulations may make provision about decisions by the Treasury...

Involvement of persons other than the Treasury
6.(1) Regulations may make provision about the involvement of persons...

Ancillary arrangements
7.(1) Regulations may make provision about ancillary arrangements.

Property
8.(1) Regulations may make provision about property to be employed...

Powers and duties
9.Regulations may confer powers, or impose duties, on any person...

Liabilities
10.Regulations may make— (a) provision for expenditure and other liabilities...

Money raised
11.(1) Regulations may make provision about the treatment of money...

Other legislation
12.(1) Regulations may make modifications of any enactment.

Things to be done otherwise than in regulations

13.(1) The power under paragraph 3(2), 4(2), 7(3), 8(2)(b) or...
14.(1) This paragraph applies if regulations provide for a person...

Regulations to be made by SI
15.Regulations are to be made by statutory instrument.

Parliamentary scrutiny
16.(1) A statutory instrument containing regulations that amend or repeal...

Interpretation
17.(1) In this Schedule a reference to a person other...