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Finance Act 2007

Type Public General Act

Publication 2007-07-19

Last updated 2025-04-24

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(a) in subsection (2), omit paragraph (b), and

(b) after that subsection insert—

(2A) Tax payable must be paid not later than the filing date for the return.

(5) In section 81A(1) (later linked transaction: return), for paragraph (d) substitute—

(d) the tax or additional tax payable must be paid not later than the filing date for the return.

(6) In section 86 (payment of tax)—

(a) in subsection (1), for “at the same time that a land transaction return is made in respect of the transaction.” substitute “ not later than the filing date for the land transaction return relating to the transaction. ”, and

(b) in subsection (2), for “at the same time that a return is made in respect of the withdrawal” substitute “ not later than the filing date for the return relating to the withdrawal ”.

(7) In paragraph 2 of Schedule 10 (payment to accompany land transaction return), omit sub-paragraph (2)(b).

(8) For each of paragraphs 3(3)(d), 4(3)(d) and 8(3)(d) of Schedule 17A (leases) substitute—

(d) the tax or additional tax payable must be paid not later than the filing date for the return.

(9) The amendments made by this section have effect as follows—

(a) the amendment made by subsection (2) has effect in relation to land transactions with an effective date on or after the day on which this Act is passed,

(b) the amendment made by subsection (3) has effect in relation to returns where the event as a result of which the return is required occurs on or after the day on which this Act is passed,

(c) the amendment made by subsection (4) has effect in relation to returns where the disqualifying event occurs on or after the day on which this Act is passed,

(d) the amendment made by subsection (5) has effect in relation to returns where the effective date of the later transaction is on or after the day on which this Act is passed,

(e) the amendment made by subsection (6) has effect in relation to land transactions with an effective date on or after the day on which this Act is passed,

(f) the amendment made by subsection (7) has effect in relation to land transactions with an effective date on or after the day on which this Act is passed, and

(g) the amendment made by subsection (8) has effect in respect of requirements to deliver a return or further return which arise on or after the day on which this Act is passed.

Self-certificate declarations

81

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Part 6 — Investigation, administration etc

Investigation etc

Criminal investigations: powers of Revenue and Customs

82

(1) Section 114 of the Police and Criminal Evidence Act 1984 (c. 60) (application of Act to customs and excise) is amended as follows.

(2) In paragraph (a) of subsection (2)—

(a) for “investigations conducted by officers of Customs and Excise of offences which relate to assigned matters, as defined in section 1 of the Customs and Excise Management Act 1979,” substitute “ investigations conducted by officers of Revenue and Customs ”, and

(b) for “persons detained by officers of Customs and Excise;” substitute “ persons detained by officers of Revenue and Customs; ”.

(3) In the opening words of paragraph (b) of that subsection, for “investigations of offences conducted by officers of Customs and Excise” substitute “ investigations of offences conducted by officers of Revenue and Customs ”.

(4) In sub-paragraph (i) of that paragraph, for “section” substitute “ sections ”.

(5) In the section 14A deemed to be inserted by that sub-paragraph—

(a) for “and which relates to an assigned matter, as defined in section 1 of the Customs and Excise Management Act 1979,” substitute “ and which relates to a matter in relation to which Her Majesty's Revenue and Customs have functions, ” and

(b) in the heading, for “Customs and Excise” substitute “ Revenue and Customs ”.

(6) After that section insert—

(14B) (1) An officer of Revenue and Customs may make an application for the delivery of, or access to, documents under a provision specified in subsection (3) only if the condition in subsection (2) is satisfied. (2) The condition is that the officer thinks that an application under Schedule 1 would not succeed because the material required does not consist of or include special procedure material. (3) The provisions are— (a) section 20BA of, and Schedule 1AA to, the Taxes Management Act 1970 (serious tax fraud); (b) paragraph 11 of Schedule 11 to the Value Added Tax Act 1994 (VAT); (c) paragraph 4A of Schedule 7 to the Finance Act 1994 (insurance premium tax); (d) paragraph 7 of Schedule 5 to the Finance Act 1996 (landfill tax); (e) paragraph 131 of Schedule 6 to the Finance Act 2000 (climate change levy); (f) paragraph 8 of Schedule 7 to the Finance Act 2001 (aggregates levy); (g) Part 6 of Schedule 13 to the Finance Act 2003 (stamp duty land tax).

(7) In paragraph (c) of subsection (2)—

(a) for “customs detention” substitute “ Revenue and Customs detention ”, and

(b) for “an officer of Customs and Excise” substitute “ an officer of Revenue and Customs ”.

(8) After that paragraph insert—

(d) that where an officer of Revenue and Customs searches premises in reliance on a warrant under section 8 of, or paragraph 12 of Schedule 1 to, this Act (as applied by an order under this subsection) the officer shall have the power to search persons found on the premises— (i) in such cases and circumstances as are specified in the order, and (ii) subject to any conditions specified in the order; and (e) that powers and functions conferred by a provision of this Act (as applied by an order under this subsection) may be exercised only by officers of Revenue and Customs acting with the authority (which may be general or specific) of the Commissioners for Her Majesty's Revenue and Customs.

(9) After that subsection insert—

(2A) A certificate of the Commissioners that an officer of Revenue and Customs had authority under subsection (2)(e) to exercise a power or function conferred by a provision of this Act shall be conclusive evidence of that fact.

(10) For subsection (3) substitute—

(3) An order under subsection (2)— (a) may make provision that applies generally or only in specified cases or circumstances, (b) may make different provision for different cases or circumstances, (c) may, in modifying a provision, in particular impose conditions on the exercise of a function, and (d) shall not be taken to limit a power under section 164 of the Customs and Excise Management Act 1979.

(11) The heading of section 114 accordingly becomes “ Application of Act to Revenue and Customs ”.

Northern Ireland criminal investigations

83

(1) Article 85 of the Police and Criminal Evidence (Northern Ireland) Order 1989 (S.I. 1989/1341 (N.I. 12)) (application of Order to customs and excise) is amended as follows.

(2) In sub-paragraph (a) of paragraph (1)—

(a) for “investigations conducted by officers of Customs and Excise of offences which relate to assigned matters, as defined in section 1 of the Customs and Excise Management Act 1979,” substitute “ investigations conducted by officers of Revenue and Customs ”, and

(b) for “persons detained by officers of Customs and Excise;” substitute “ persons detained by officers of Revenue and Customs; ”.

(3) In the opening words of sub-paragraph (b) of that paragraph, for “investigations of offences conducted by officers of Customs and Excise” substitute “ investigations of offences conducted by officers of Revenue and Customs ”.

(4) In paragraph (i) of that sub-paragraph, for “Article” substitute “ Articles ”.

(5) In the Article 16A deemed to be inserted by that paragraph—

(a) for “and which relates to an assigned matter, as defined in section 1 of the Customs and Excise Management Act 1979,” substitute “ and which relates to a matter in relation to which Her Majesty's Revenue and Customs have functions, ” and

(b) in the heading, for “Customs and Excise” substitute “ Revenue and Customs ”.

(6) After that Article insert—

(16B) (1) An officer of Revenue and Customs may make an application for the delivery of, or access to, documents under a provision specified in paragraph (3) only if the condition in paragraph (2) is satisfied. (2) The condition is that the officer thinks that an application under Schedule 1 would not succeed because the material required does not consist of or include special procedure material. (3) The provisions are— (a) section 20BA of, and Schedule 1AA to, the Taxes Management Act 1970 (serious tax fraud); (b) paragraph 11 of Schedule 11 to the Value Added Tax Act 1994 (VAT); (c) paragraph 4A of Schedule 7 to the Finance Act 1994 (insurance premium tax); (d) paragraph 7 of Schedule 5 to the Finance Act 1996 (landfill tax); (e) paragraph 131 of Schedule 6 to the Finance Act 2000 (climate change levy); (f) paragraph 8 of Schedule 7 to the Finance Act 2001 (aggregates levy); (g) Part 6 of Schedule 13 to the Finance Act 2003 (stamp duty land tax).

(7) After sub-paragraph (b) of paragraph (1) insert—

(c) that where an officer of Revenue and Customs searches premises in reliance on a warrant under Article 10 of, or paragraph 9 of Schedule 1 to, this Order (as applied by an order under this paragraph) the officer shall have the power to search persons found on the premises— (i) in such cases and circumstances as are specified in the order, and (ii) subject to any conditions specified in the order; and (d) that powers and functions conferred by a provision of this Order (as applied by an order under this paragraph) may be exercised only by officers of Revenue and Customs acting with the authority (which may be general or specific) of the Commissioners for Her Majesty's Revenue and Customs.

(8) After that paragraph insert—

(1A) A certificate of the Commissioners that an officer of Revenue and Customs had authority under paragraph (1)(d) to exercise a power or function conferred by a provision of this Order shall be conclusive evidence of that fact.

(9) For paragraph (2) substitute—

(2) An order under paragraph (1)— (a) may, in modifying a provision, in particular impose conditions on the exercise of a function, and (b) shall not be taken to limit a power under section 164 of the Customs and Excise Management Act 1979.

(10) The heading of Article 85 accordingly becomes “ Application of Order to Revenue and Customs ”.

Sections 82 and 83: supplementary

84

(1) In Schedule 2 to CRCA 2005 (restrictions on the exercise of functions), omit—

(a) paragraph 7 (Police and Criminal Evidence Act 1984 (c. 60)), and

(b) paragraph 9 (Police and Criminal Evidence (Northern Ireland) Order 1989 (S.I. 1989/1341 (N.I. 12))).

(2) Nothing in section 6 or 7 of CRCA 2005 (initial functions) restricts the functions in connection with which officers of Revenue and Customs may exercise a power under—

(a) the Police and Criminal Evidence Act 1984 by virtue of section 114 of that Act (as amended by section 82 above), or

(b) the Police and Criminal Evidence (Northern Ireland) Order 1989 by virtue of Article 85 of that Order (as amended by section 83 above).

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) Schedule 22 contains amendments and repeals consequential on extension of police powers to Revenue and Customs.

(5) Sections 82 and 83 and this section come into force in accordance with provision made by the Treasury by order.

(6) The power to make an order under subsection (5) is exercisable by statutory instrument.

Criminal investigations: Scotland

85

Schedule 23 contains provision for Scotland about the investigation of offences by Her Majesty's Revenue and Customs.

Search warrants

86

In section 8 of the Police and Criminal Evidence Act 1984, after subsection (6) insert—

(7) Section 4 of the Summary Jurisdiction (Process) Act 1881 (execution of process of English courts in Scotland) shall apply to a warrant issued on the application of an officer of Revenue and Customs under this section by virtue of section 114 below.

Cross-border exercise of powers

87

(1) This section relates to the Criminal Justice and Public Order Act 1994 (c. 33).

(2) Sections 136 to 139 (execution of warrants and powers of arrest and search) shall apply to an officer of Revenue and Customs as they apply to a constable; and for that purpose—

(a) a reference to a constable (including a reference to a constable of a police force in England and Wales, a constable of a police force in Scotland or a constable of a police force in Northern Ireland) shall be treated as a reference to an officer of Revenue and Customs, and

(b) a reference to a police station, or a designated police station, includes a reference to an office of Revenue and Customs or (in England and Wales and Northern Ireland) a designated office of Revenue and Customs.

(2A) In the application of section 137C where a person is arrested under section 137A by an officer of Revenue and Customs in respect of a specified offence that is being investigated by an officer of Revenue and Customs—

(a) subsection (2)(b) is to be read as if (instead of requiring the detention to be authorised by both an officer of at least the rank of inspector in the arresting force and an officer of at least the rank of inspector in the investigating force) it required the detention to be authorised by an officer of Revenue and Customs of at least the grade equivalent to the rank of inspector;

(b) subsection (2)(c) is to be read as if (instead of requiring the detention to be authorised by both an officer of a rank above that of inspector in the arresting force and an officer of a rank above that of inspector in the investigating force) it required the detention to be authorised by an officer of Revenue and Customs of a grade above that equivalent to the rank of inspector;

(d) in subsections (4) and (5), the reference to an officer of the investigating force is to be read as a reference to an officer of Revenue and Customs;

(e) in subsection (6), the reference to an appropriate officer in the investigating force is to be read as a reference to an appropriate officer of Revenue and Customs (as defined by subsection (7));

(f) subsection (6)(a) is omitted;

(g) in subsection (7)(b), the reference to an officer of at least the rank of inspector is to be read as a reference to an officer of Revenue and Customs of at least the equivalent grade;

(h) in subsection (7)(c), the reference to an officer of a rank above that of inspector is to be read as a reference to an officer of Revenue and Customs of above the equivalent grade;

(i) subsections (8) to (10) are omitted.

(2B) Where section 137C applies in accordance with subsection (2A), Schedule 7B applies with the following modifications—

(a) any reference to a constable in the arresting force is to be read as a reference to an officer of Revenue and Customs;

(b) any reference to an officer of at least, or above, a particular rank in the investigating force is to be read as a reference to an officer of Revenue and Customs of at least, or above, the equivalent grade;

(c) any reference to the arresting force or to the investigating force (otherwise than in relation to a description of officer in the force) is to be read as a reference to officers of Revenue and Customs;

(d) instead of the modification made by paragraph 9, section 42 of the Criminal Justice (Scotland) Act 2016 is to be read as if the references in subsections (1)(c)(ii) and (3)(b) to the police were references to officers of Revenue and Customs;

(e) the Schedule is to be read as if it also provided for references in the provisions applied by section 137D(2)(d), (3)(d) and (4)(d) to a police station to include references to an office of Revenue and Customs.

(2C) In the application of section 137C where a person is arrested under section 137A by an officer of Revenue and Customs in respect of a specified offence other than one that is being investigated by an officer of Revenue and Customs—

(a) any reference to an officer of at least, or above, the rank of inspector in the arresting force is to be read as a reference to an officer of Revenue and Customs of at least, or above, the equivalent grade;

(b) the reference in subsection (6)(a) to the arresting force is to be read as a reference to any officer of Revenue and Customs.

(2D) Where section 137C applies in accordance with subsection (2C), Schedule 7B applies with the following modifications—

(a) any reference to a constable in the arresting force is to be read as a reference to an officer of Revenue and Customs;

(b) any reference to the arresting force (otherwise than in relation to a description of officer in the force) is to be read as a reference to officers of Revenue and Customs;

(c) instead of the modification made by paragraph 9, section 42 of the Criminal Justice (Scotland) Act 2016 is to be read as if the references in subsections (1)(c)(ii) and (3)(b) to the police were references to officers of Revenue and Customs;

(d) the Schedule is to be read as if it also provided for references in the provisions applied by section 137D(2)(d), (3)(d) and (4)(d) to a police station to include references to an office of Revenue and Customs.

(2E) In the application of those sections to an officer of Revenue and Customs—

(a) sections 136(4B) and 137(7B) apply with the omission of the words from “and, if the constable” to the end;

(b) section 137ZA applies with the omission of subsection (6).

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) An officer of Revenue and Customs may exercise a power under sections 136 to 139 in the exercise of any function of the Commissioners for Her Majesty's Revenue and Customs or of officers of Revenue and Customs, within the meaning of the Commissioners for Revenue and Customs Act 2005 (see section 51(2) to (2B) of that Act) .

(5) In subsection (2)—

“office of Revenue and Customs” means premises wholly or partly occupied by Her Majesty's Revenue and Customs, and

“designated office of Revenue and Customs” has the meaning given by an order under section 114 of the Police and Criminal Evidence Act 1984 (c. 60) (power to extend provisions to HMRC) or, in Northern Ireland, by an order under Article 85 of the Police and Criminal Evidence (Northern Ireland) Order 1989 (S.I. 1989/1341 (N.I. 12)) (power to extend Order to HMRC).

(6) In section 136, after subsection (8) insert—

(9) Powers under this section and sections 137 to 139 may be exercised by an officer of Revenue and Customs in accordance with section 87 of the Finance Act 2007.

Filing dates

Personal tax returns

88

(1) Section 8 of TMA 1970 (personal tax return) is amended as follows.

(2) In subsection (1)(a), omit “, on or before the day mentioned in subsection (1A) below”.

(3) Omit subsection (1A).

(4) After subsection (1C) insert—

(1D) A return under this section for a year of assessment (Year 1) must be delivered— (a) in the case of a non-electronic return, on or before 31st October in Year 2, and (b) in the case of an electronic return, on or before 31st January in Year 2. (1E) But subsection (1D) is subject to the following two exceptions. (1F) Exception 1 is that if a notice in respect of Year 1 is given after 31st July in Year 2 (but on or before 31st October), a return must be delivered— (a) during the period of 3 months beginning with the date of the notice (for a non-electronic return), or (b) on or before 31st January (for an electronic return). (1G) Exception 2 is that if a notice in respect of Year 1 is given after 31st October in Year 2, a return (whether electronic or not) must be delivered during the period of 3 months beginning with the date of the notice. (1H) The Commissioners— (a) shall prescribe what constitutes an electronic return, and (b) may make different provision for different cases or circumstances.

Trustee’s tax return

89

(1) Section 8A of TMA 1970 (trustee's tax return) is amended as follows.

(2) In subsection (1)(a), omit “, on or before the day mentioned in subsection (1A) below”.

(3) Omit subsection (1A).

(4) After subsection (1AA) insert—

(1B) A return under this section for a year of assessment (Year 1) must be delivered— (a) in the case of a non-electronic return, on or before 31st October in Year 2, and (b) in the case of an electronic return, on or before 31st January in Year 2. (1C) But subsection (1B) is subject to the following two exceptions. (1D) Exception 1 is that if a notice in respect of Year 1 is given after 31st July in Year 2 (but on or before 31st October), a return must be delivered— (a) during the period of 3 months beginning with the date of the notice (for a non-electronic return), or (b) on or before 31st January (for an electronic return). (1E) Exception 2 is that if a notice in respect of Year 1 is given after 31st October in Year 2, a return (whether electronic or not) must be delivered during the period of 3 months beginning with the date of the notice. (1F) The Commissioners— (a) shall prescribe what constitutes an electronic return, and (b) may make different provision for different cases or circumstances.

Partnership tax returns

90

(1) In section 12AA of TMA 1970, for subsection (4) (partnership return: filing date) substitute—

(4) In the case of a partnership which includes one or more individuals, a notice under subsection (2) or (3) above may specify different days depending on whether a return in respect of a year of assessment (Year 1) is electronic or non-electronic. (4A) The day specified for a non-electronic return must not be earlier than 31st October of Year 2. (4B) The day specified for an electronic return must not be earlier than 31st January of Year 2. (4C) But subsections (4A) and (4B) are subject to the following two exceptions. (4D) Exception 1 is that if the notice is given after 31st July in Year 2 (but on or before 31st October)— (a) the day specified for a non-electronic return must be after the end of the period of three months beginning with the date of the notice, and (b) the day specified for an electronic return must not be earlier than 31st January. (4E) Exception 2 is that if the notice is given after 31st October in Year 2, the day specified for a return (whether or not electronic) must be after the end of the period of three months beginning with the date of the notice.

(2) For subsection (5) of that section (partnership return where a company is a partner: filing date) substitute—

(5) In the case of a partnership which includes one or more companies, a notice may specify different dates depending on whether a notice in respect of a relevant period is electronic or non-electronic. (5A) The day specified for a non-electronic return must not be earlier than the end of the period of nine months beginning at the end of the relevant period. (5B) The day specified for an electronic return must not be earlier than the first anniversary of the end of the relevant period. (5C) But where the notice is given more than nine months after the end of the relevant period, the day specified for a return (whether or not electronic) must be after the end of the period of three months beginning with the date of the notice. (5D) For the purposes of this section “relevant period” means the period in respect of which the return is required. (5E) The Commissioners— (a) shall prescribe what constitutes an electronic return for the purposes of this section, and (b) may make different provision for different cases or circumstances.

Consequential amendments

91

(1) In section 9(2) of TMA 1970 (returns to include self-assessment)—

(a) in paragraph (a), for “30th September” substitute “ 31st October ”, and

(b) in paragraph (b), for “31st July” substitute “ 31st August ”.

(2) In section 9ZA of TMA 1970 (amendment of personal or trustee return), for subsection (3) substitute—

(3) In this section “the filing date”, in respect of a return for a year of assessment (Year 1), means— (a) 31st January of Year 2, or (b) if the notice under section 8 or 8A is given after 31st October of Year 2, the last day of the period of three months beginning with the date of the notice.

(3) In section 9A(6) of TMA 1970 (notice of enquiry: “the filing date”), for the words from “means” to the end substitute “ means, in relation to a return, the last day for delivering it in accordance with section 8 or 8A. ”

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) In section 28C of TMA 1970 (determination of tax where no return delivered), for subsection (6) substitute—

(6) In this section “the filing date” in respect of a return for a year of assessment (Year 1) means either— (a) 31st January of Year 2, or (b) if the notice under section 8 or 8A was given after 31st October of Year 2, the last day of the period of three months beginning with the day on which the notice is given.

(6) In section 33A of TMA 1970 (error in partnership return)—

(a) in subsection (1), insert at the end “ for a year of assessment (Year 1), or for a relevant period which ends in Year 1 ”,

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) in that subsection, after the definition of “relevant partner” insert—

“relevant period” means a period in respect of which a return is required.

(7) In section 93(10) of TMA 1970 (penalty for failure to make individual or trustee return), for the definition of “filing date” substitute—

“the filing date” in respect of a return for a year of assessment (Year 1) means— (a) 31st January of Year 2, or (b) if the notice under section 8 or 8A was given after 31st October of Year 2, the last day of the period of three months beginning with the day on which the notice is given.

(8) In section 93A of TMA 1970 (failure to make partnership return), after subsection (7) insert—

(7A) For the purposes of this section the filing date for a year of assessment (Year 1) in the case of a partnership which includes one or more individuals is— (a) 31st January of Year 2, or (b) if the notice under section 12AA was given after 31st October of Year 2, the last day of the period of three months beginning with the date of the notice. (7B) For the purposes of this section the filing date for a year of assessment (Year 1) in the case of a partnership which includes one or more companies is— (a) the first anniversary of the period for which the return is required, or (b) where the notice is given more than nine months after the end of the period for which the return is required, the last day of the period of three months beginning with the date of the notice.

(9) In subsection (8) of section 93A, omit the definition of “the filing date”.

(10) In paragraph 4 of Schedule 15 to FA 2006 (accountancy change: spreading of adjustment)—

(a) in sub-paragraph (1), after “a tax year” insert “ (Year 1) ”, and

(b) in sub-paragraph (2), for “normal self-assessment filing date for the tax year.” substitute “ 31st January of Year 2. ”

Commencement

92

(1) Sections 88 to 91 have effect—

(a) in relation to a return under section 8 or 8A of TMA 1970, or a return under section 12AA of that Act for a partnership which includes one or more individuals, in respect of a return for a year of assessment beginning on or after 6th April 2007, and

(b) in relation to a return under section 12AA of that Act for a partnership which includes one or more companies, in respect of a return for a relevant period beginning on or after 6th April 2007.

(2) In subsection (1)(b) “relevant period” means a period in respect of which a return is required.

Other administration

Mandatory electronic filing of returns

93

(1) Section 135 of FA 2002 (mandatory electronic filing) is amended as follows.

(2) In subsection (7), after paragraph (b) insert—

(ba) to specify other consequences of contravention of, or failure to comply with, the regulations (which may include disregarding a return delivered otherwise than by the use of electronic communications);

(3) In subsection (10), for the definition of “taxation matter” substitute—

“taxation matter” means any matter relating to a tax (or duty) for which the Commissioners are responsible.

(4) Section 76 of VATA 1994 (assessment) is amended as follows.

(5) In subsection (1), after paragraph (c) insert—

or (d) a penalty under regulations made under section 135 of the Finance Act 2002 (mandatory electronic filing of returns) in connection with VAT,

(6) In that subsection, before “may have ceased” insert “ or the regulations ”.

(7) In subsection (3), insert at the end—

; and (f) in the case of a penalty under regulations made under section 135 of the Finance Act 2002, the relevant period is the prescribed accounting period in respect of which the contravention of, or failure to comply with, the regulations occurred.

(8) In section 83 of VATA 1994 (appeals), after paragraph (zb) insert—

(zc) a decision of the Commissioners about the application of regulations under section 135 of the Finance Act 2002 (mandatory electronic filing of returns) in connection with VAT (including, in particular, a decision as to whether a requirement of the regulations applies and a decision to impose a penalty);

(9) In section 84 of VATA 1994 (appeals), after subsection (6A) insert—

(6B) Nothing in section 83(zc) shall be taken to confer on a tribunal any power to vary an amount assessed by way of penalty except in so far as it is necessary to reduce it to the amount which is appropriate under regulations made under section 135 of the Finance Act 2002.

Mandatory electronic payment

94

(1) Section 204 of FA 2003 (mandatory electronic payment by large employers) is amended as follows.

(2) For subsections (1) and (2) substitute—

(1) The Commissioners for Her Majesty's Revenue and Customs may make regulations requiring a person to use electronic means in making specified payments under legislation relating to a tax (or duty) for which the Commissioners are responsible. (2) The regulations may provide for exceptions.

(3) In subsection (5)(b), for “the Inland Revenue” substitute “ Her Majesty's Revenue and Customs ”.

(4) In subsection (6)(a), for “the Inland Revenue” substitute “ Her Majesty's Revenue and Customs ”.

(5) In subsection (8)—

(a) in paragraph (a), for “a contravention of, or any failure to comply with,” substitute “ a contravention by a large employer of, or any failure by a large employer to comply with, ”, and

(b) in paragraph (b), for “taxation matter within the care and management of the Commissioners” substitute “ matter relating to a tax (or duty) for which the Commissioners are responsible ”.

(6) In subsection (12)—

(a) for the definition of “the Inland Revenue” substitute—

“Her Majesty's Revenue and Customs” includes a person acting under the authority of the Commissioners in relation to payment by electronic means;

, and

(b) after that definition insert—

“large employer” means a person paying PAYE income to 250 or more recipients (and regulations under this section may make provision as to the date or period by reference to which this is to be determined and the circumstances in which a person is to be treated as paying PAYE income to a recipient);

(7) The heading accordingly becomes “ Mandatory electronic payment ”.

(8) In section 205(1) of FA 2003 (application of section 204 for other purposes)—

(a) after “taxation” insert “ (or duty) ”, and

(b) for “the Commissioners of Inland Revenue” substitute “ the Commissioners for Her Majesty's Revenue and Customs ”.

Payment by cheque

95

(1) The Commissioners may make regulations providing for a payment to HMRC made by cheque to be treated as made when the cheque clears, as defined in the regulations.

(2) Section 70A of TMA 1970 (payment by cheque treated as made on receipt by HMRC) is subject to regulations under subsection (1).

(3) Regulations under subsection (1)—

(a) may make provision generally or only for specified purposes,

(b) may make different provision for different purposes, and

(4) Regulations under subsection (1)—

(a) shall be made by statutory instrument, and

(b) shall be subject to annulment in pursuance of a resolution of the House of Commons.

(5) In this section—

(a) “the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs, and

(b) “HMRC” means Her Majesty's Revenue and Customs.

(6) In section 204 of FA 2003 (electronic payment), insert at the end—

(13) Regulations under section 95(1) of the Finance Act 2007 (payment by cheque) may, in particular, provide for a payment which is made by cheque in contravention of regulations under this section to be treated as made when the cheque clears, as defined in the regulations under that section.

(7) In section 70A of TMA 1970 (payments by cheque), insert at the end—

(3) This section is subject to regulations under section 95(1) of the Finance Act 2007 (payment by cheque).

(8) In VATA 1994, after section 58A insert—

(58B) Regulations under section 95(1) of the Finance Act 2007 (payment by cheque) may, in particular, provide for a payment which is made by cheque in contravention of regulations under section 25(1) above to be treated as made when the cheque clears, as defined in the regulations under section 95(1) of that Act.

Enquiry into returns

96

(1) In section 9A(2)(a) of TMA 1970 (period during which HMRC can open enquiry into return), for “after the filing date;” substitute “ after the day on which the return was delivered; ”.

(2) In section 12AC(2)(a) of TMA 1970 (period during which HMRC can open enquiry into partnership return), for “after the filing date;” substitute “ after the day on which the return was delivered; ”.

(3) In paragraph 24(2) of Schedule 18 to FA 1998 (period during which HMRC can open enquiry into company tax return), for “from the filing date.” substitute “ from the day on which the return was delivered (subject to sub-paragraph (6)). ”

(4) In paragraph 24 of that Schedule, insert at the end—

(6) In the case of a company which is a member of a group other than a small group, the 12-month period in sub-paragraph (2) shall start not from the day on which the return was delivered but from the filing date. (7) In sub-paragraph (6) “group” and “small group” have the same meaning as in sections 383(2) and 474(1) of the Companies Act 2006 (or, until their commencement, as in the provisions that they replicate).

(5) The amendments made by subsections (1) and (2) apply to returns which relate to the tax year 2007-08 or a later tax year.

(6) The amendments made by subsections (3) and (4) apply to returns which relate to accounting periods ending after 31st March 2008.

Penalties for errors

97

(1) Schedule 24 contains provisions imposing penalties on taxpayers who—

(a) make errors in certain documents sent to HMRC, or

(b) unreasonably fail to report errors in assessments by HMRC.

(2) That Schedule comes into force in accordance with provision made by the Treasury by order.

(3) An order—

(a) may commence a provision generally or only for specified purposes,

(b) may make different provision for different purposes, and

(4) The power to make an order is exercisable by statutory instrument.

Part 7 — Miscellaneous

Value added tax and insurance premium tax

VAT: joint and several liability of traders in supply chain where tax unpaid

98

(1) In section 77A of VATA 1994 (joint and several liability of traders in supply chain where tax unpaid), for subsection (9) substitute—

(9) The Treasury may by order amend subsection (1) above. (9A) The Treasury may by order amend this section in order to extend or otherwise alter the circumstances in which a person shall be presumed to have reasonable grounds for suspecting matters to be as mentioned in subsection (2)(b) above. (9B) Any order under this section may make such incidental, supplemental, consequential or transitional provision as the Treasury think fit.

(2) In section 97(4) of that Act (orders ceasing to have effect unless approved by House of Commons), after paragraph (ea) insert—

(eb) an order under section 77A(9) or (9A);

VAT: non-business use etc of business goods

99

(1) Schedule 4 to VATA 1994 (matters to be treated as supply of goods or services) is amended as follows.

(2) In paragraph 5 (non-business use etc of business goods), omit sub-paragraph (4A) (exception to rule in case of interests in land and buildings etc that non-business use of business assets treated as supply of services).

(3) In paragraph 9 (application of paragraphs 5 to 8 where land forms part of assets of business), insert at the end—

(4) In this paragraph “grant” includes surrender.

(4) Paragraph 7 of Schedule 6 to VATA 1994 (valuation of supply of services otherwise than for consideration by virtue of paragraph 5(4) of Schedule 4 etc) is amended as follows.

(5) The existing provision becomes sub-paragraph (1) and after that sub-paragraph insert—

(2) Regulations may, in relation to a supply of services by virtue of paragraph 5(4) of Schedule 4 (but otherwise than for a consideration), make provision for determining how the full cost to the taxable person of providing the services is to be calculated. (3) The regulations may, in particular, make provision for the calculation to be made by reference to any prescribed period. (4) The regulations may make— (a) different provision for different circumstances; (b) such incidental, supplementary, consequential or transitional provision as the Commissioners think fit.

(6) The amendment made by subsection (2) comes into force on 1st September 2007.

(7) The amendment made by subsection (3) has effect in relation to surrenders on or after 21st March 2007.

VAT: transfers of going concerns

100

(1) Section 49 of VATA 1994 (transfers of going concern) is amended as follows.

(2) In subsection (1) (transferor's supplies treated as transferee's supplies for purposes of registration and transferor's records to be kept by transferee after transfer)—

(a) after “Where a business” insert “ , or part of a business, ”,

(b) after “on the business” insert “ or part of the business ”, and

(3) In subsection (2) (regulations for securing continuity of Act in case of transfers of going concerns), after “a business” insert “ , or part of a business, ”.

(4) After that subsection insert—

(2A) Regulations under subsection (2) above may, in particular, provide for the duties under this Act of the transferor to preserve records relating to the business or part of the business for any period after the transfer to become duties of the transferee unless the Commissioners, at the request of the transferor, otherwise direct.

(5) In subsection (3) (provision which may be made by regulations), in paragraph (a), after “the transferor” insert “ (other than the duties mentioned in subsection (2A) above) ”.

(6) After that subsection insert—

(4) Subsection (5) below applies where— (a) a business, or part of a business, carried on by a taxable person is transferred to another person as a going concern, and (b) the transferor continues to be required under this Act to preserve for any period after the transfer any records relating to the business or part of the business. (5) So far as is necessary for the purpose of complying with the transferee's duties under this Act, the transferee (“E”) may require the transferor— (a) to give to E, within such time and in such form as E may reasonably require, such information contained in the records as E may reasonably specify, (b) to give to E, within such time and in such form as E may reasonably require, such copies of documents forming part of the records as E may reasonably specify, and (c) to make the records available for E's inspection at such time and place as E may reasonably require (and permit E to take copies of, or make extracts from, them). (6) Where a business, or part of a business, carried on by a taxable person is transferred to another person as a going concern, the Commissioners may disclose to the transferee any information relating to the business when it was carried on by the transferor for the purpose of enabling the transferee to comply with the transferee's duties under this Act.

(7) In section 94(6) of VATA 1994 (meaning of “business” etc)—

(a) after “a business” insert “ , or part of a business, ”, and

(b) for “its assets or liabilities” substitute “ the assets or liabilities of the business or part of the business ”.

(8) In paragraph 1(2) of Schedule 1 to that Act (registration in respect of taxable supplies), after “Where a business” insert “ , or part of a business, ”.

(9) In paragraph 8(2)(b) of Schedule 4 to that Act (matters to be treated as supply of goods or services), after “a business” insert “ , or part of a business, ”.

(10) The amendments made by this section have effect in relation to transfers pursuant to contracts entered into on or after 1st September 2007.

IPT: meaning of “premium”

101

(1) In section 72 of FA 1994 (interpretation: “premium”), after subsection (1A) insert—

(1B) Where— (a) an amount is charged (to the insured or any other person) in respect of the acquisition of a right (whether of the insured or any other person) to require the insurer to provide, or offer to provide, any of the cover included in a taxable insurance contract, and (b) any payment in respect of that amount is not regarded as a payment received under that contract by the insurer by virtue of subsection (1A) above, the payment is to be regarded as a payment received under that contract by the insurer unless it is chargeable to tax at the higher rate by virtue of section 52A above.

(2) The amendment made by subsection (1) has effect in relation to amounts charged on or after 22nd March 2007.

Petroleum revenue tax

Abolition of PRT for fields recommissioned after earlier decommissioning

102

(1) Section 185 of FA 1993 (abolition of PRT for oil fields with development consents on or after 16th March 1993) is amended as follows.

(2) In subsection (1) (meaning of “non-taxable field” and “taxable field”), after paragraph (b) insert “ or an oil field which does not meet the conditions in paragraphs (a) and (b) above but which does meet the conditions in subsection (1A) below ”.

(3) After that subsection insert—

(1A) An oil field meets the conditions in this subsection if— (a) the Secretary of State has at any time approved one or more abandonment programmes under Part 4 of the Petroleum Act 1998 (or Part 1 of the Petroleum Act 1987) in relation to all assets of the field which are relevant assets; (b) those programmes have been carried out to the satisfaction of the Secretary of State; (c) a development decision is made in relation to the field; and (d) that decision is made on or after 16th March 1993 and after those programmes have been so carried out. (1B) For the purposes of subsection (1A)(a) above, an asset is a relevant asset of an oil field if— (a) it has at any time been a qualifying asset (within the meaning of the 1983 Act) in relation to any participator in the field; and (b) it has at any time been used for the purpose of winning oil from the field. (1C) For the purposes of subsection (1A)(c) and (d) above, a development decision is made in relation to an oil field when— (a) consent for development is granted to a licensee by the Secretary of State in respect of the whole or part of the field; or (b) a programme of development is served on a licensee or approved by the Secretary of State for the whole or part of the field.

(4) In subsection (7) (meaning of “development” etc), for “subsections (1) and (2)” substitute “ this section ”.

(5) An oil field which meets the conditions in subsection (1A) of section 185 of FA 1993 (as inserted by subsection (3) above) becomes a non-taxable field for the purposes of any enactment relating to petroleum revenue tax—

(a) in any case where the development decision is made before 1st July 2007, on that date, and

(b) in any other case, on the date on which the development decision is made.

Tax-exempt tariffing receipts

103

(1) Section 6A of the Oil Taxation Act 1983 (c. 56) (tax-exempt tariffing receipts) is amended as follows.

(2) In subsection (4), insert at the end

or (c) use in relation to a UK recommissioned field (see subsection (5) below) or oil won from such a field.

(3) In subsection (5), insert at the end—

“UK recommissioned field” means any oil field which is not a new field or qualifying existing field but as respects which the conditions in section 185(1A) of the Finance Act 1993 are satisfied (fields recommissioned after earlier decommissioning).

(4) The amendments made by this section are deemed to have come into force on 1st July 2007.

Allowance of unrelievable loss from abandoned field

104

(1) In section 6 of the Oil Taxation Act 1975 (c. 22) (allowance of unrelievable loss from abandoned field), after subsection (4) insert—

(4A) For the purposes of this section and Schedule 8 to this Act, the winning of oil from an oil field shall not be regarded as having permanently ceased until all the oil wells in the field have been permanently abandoned.

(2) The amendment made by subsection (1) is deemed to have come into force on 1st July 2007.

Other miscellaneous measures

Amendments connected with Gambling Act 2005

105

Schedule 25 contains amendments that are consequential on, or otherwise connected with, the Gambling Act 2005 (c. 19).

VED: exempt vehicles

106

(1) In section 5 of VERA 1994 (exempt vehicles), after subsection (2) insert—

(3) The Secretary of State may by order amend Schedule 2 in order to make provision about the descriptions of— (a) tractors, and (b) vehicles used for purposes relating to agriculture, horticulture or forestry, that are to be exempt vehicles. (4) An order under subsection (3) may in particular repeal any of paragraphs 20A to 20D of Schedule 2.

(2) In section 60(3) of that Act (orders subject to affirmative procedure), after “under” insert “ section 5(3) or ”.

Limitation period in old actions for mistake of law relating to direct tax

107

(1) Section 32(1)(c) of the Limitation Act 1980 (c. 58) (extended period for bringing action in case of mistake) does not apply in relation to any action brought before 8th September 2003 for relief from the consequences of a mistake of law relating to a taxation matter under the care and management of the Commissioners of Inland Revenue.

(2) Subsection (1) has effect regardless of how the grounds on which the action was brought were expressed and of whether it was also brought otherwise than for such relief.

(3) But subsection (1) does not have effect in relation to an action, or so much of an action as relates to a cause of action, if—

(a) the action, or cause of action, has been the subject of a judgment of the House of Lords given before 6th December 2006 as to the application of section 32(1)(c) in relation to such relief, or

(b) the parties to the action are, in accordance with a group litigation order, bound in relation to the action, or cause of action, by a judgment of the House of Lords in another action given before that date as to the application of section 32(1)(c) in relation to such relief.

(4) If the judgment of any court was given on or after 6th December 2006 but before the day on which this Act is passed, the judgment is to be taken to have been what it would have been had subsections (1) to (3) been in force at all times since the action was brought (and any defence of limitation which would have been available had been raised).

(5) And any payment made to satisfy a liability under the judgment which (in consequence of subsection (4)) is to be taken not to have been imposed is repayable (with interest from the date of the payment).

(5A) Subsection (1) also does not have effect in relation to an action, or so much of an action as relates to a cause of action, if the consequences of a mistake of law to which the action, or cause of action, relates is the charging of tax contrary to EU law.

(6) In this section—

“group litigation order” means an order of a court providing for the case management of actions which give rise to common or related issues of fact or law, and

“judgment” includes order (and “given” includes made).

Disclosure of tax avoidance schemes

108

(1) Part 7 of FA 2004 (disclosure of tax avoidance schemes) is amended as follows.

(2) After section 306 insert—

(306A) (1) HMRC may apply to the Special Commissioners for an order that— (a) a proposal is to be treated as notifiable, or (b) arrangements are to be treated as notifiable. (2) An application must specify— (a) the proposal or arrangements in respect of which the order is sought, and (b) the promoter. (3) On an application the Special Commissioners may make the order only if satisfied that HMRC— (a) have taken all reasonable steps to establish whether the proposal or arrangements are notifiable, and (b) have reasonable grounds for suspecting that the proposal or arrangements may be notifiable. (4) Reasonable steps under subsection (3)(a) may (but need not) include taking action under section 313A or 313B. (5) Grounds for suspicion under subsection (3)(b) may include— (a) the fact that the relevant arrangements fall within a description prescribed under section 306(1)(a); (b) an attempt by the promoter to avoid or delay providing information or documents about the proposal or arrangements under or by virtue of section 313A or 313B; (c) the promoter's failure to comply with a requirement under or by virtue of section 313A or 313B in relation to another proposal or other arrangements. (6) Where an order is made under this section in respect of a proposal or arrangements, the prescribed period for the purposes of section 308(1) or (3) in so far as it applies by virtue of the order— (a) shall begin after a date prescribed for the purpose, and (b) may be of a different length than the prescribed period for the purpose of other applications of section 308(1) or (3). (7) An order under this section in relation to a proposal or arrangements is without prejudice to the possible application of section 308, other than by virtue of this section, to the proposal or arrangements.

(3) In section 307 (“promoter”), insert at the end—

(6) In the application of this Part to a proposal or arrangements which are not notifiable, a reference to a promoter is a reference to a person who would be a promoter under subsections (1) to (5) if the proposal or arrangements were notifiable.

(4) After section 308 insert—

(308A) (1) This section applies where— (a) a promoter (P) has provided information in purported compliance with section 308(1) or (3), but (b) HMRC believe that P has not provided all the prescribed information. (2) HMRC may apply to the Special Commissioners for an order requiring P to provide specified information about, or documents relating to, the notifiable proposal or arrangements. (3) The Special Commissioners may make an order under subsection (2) in respect of information or documents only if satisfied that HMRC have reasonable grounds for suspecting that the information or documents— (a) form part of the prescribed information, or (b) will support or explain the prescribed information. (4) A requirement by virtue of subsection (2) shall be treated as part of P's duty under section 308(1) or (3). (5) In so far as P's duty under section 308(1) or (3) arises out of a requirement by virtue of subsection (2) above, the prescribed period shall begin after a date prescribed for the purpose. (6) In so far as P's duty under section 308(1) or (3) arises out of a requirement by virtue of subsection (2) above, the prescribed period— (a) may be of a different length than the prescribed period for the purpose of other applications of section 308(1) or (3), and (b) may be extended by HMRC by direction.

(5) After section 313 insert—

(313A) (1) Where HMRC suspect that a person (P) is the promoter of a proposal or arrangements which may be notifiable, they may by written notice require P to state— (a) whether in P's opinion the proposal or arrangements are notifiable by P, and (b) if not, the reasons for P's opinion. (2) A notice must specify the proposal or arrangements to which it relates. (3) For the purpose of subsection (1)(b)— (a) it is not sufficient to refer to the fact that a lawyer or other professional has given an opinion, (b) the reasons must show, by reference to this Part and regulations under it, why P thinks the proposal or arrangements are not notifiable by P, and (c) in particular, if P asserts that the arrangements do not fall within any description prescribed under section 306(1)(a), the reasons must provide sufficient information to enable HMRC to confirm the assertion. (4) P must comply with a requirement under or by virtue of subsection (1) within— (a) the prescribed period, or (b) such longer period as HMRC may direct. (313B) (1) Where HMRC receive from a person (P) a statement of reasons why a proposal or arrangements are not notifiable by P, HMRC may apply to the Special Commissioners for an order requiring P to provide specified information or documents in support of the reasons. (2) P must comply with a requirement under or by virtue of subsection (1) within— (a) the prescribed period, or (b) such longer period as HMRC may direct. (3) The power under subsection (1)— (a) may be exercised more than once, and (b) applies whether or not the statement of reasons was received under section 313A(1)(b).

(6) After section 314 insert—

(314A) (1) HMRC may apply to the Special Commissioners for an order that— (a) a proposal is notifiable, or (b) arrangements are notifiable. (2) An application must specify— (a) the proposal or arrangements in respect of which the order is sought, and (b) the promoter. (3) On an application the Special Commissioners may make the order only if satisfied that section 306(1)(a) to (c) applies to the relevant arrangements.

(7) After section 317 insert—

(317A) Sections 56B to 56D of the Taxes Management Act 1970 (procedure) shall apply (with any necessary modifications) to applications under this Part as to appeals.

(8) In section 318(1) (interpretation)—

(a) after the definition of “corporation tax” insert—

“HMRC” means the Commissioners for Her Majesty's Revenue and Customs;

and

(b) after the definition of “reference number” insert—

“the Special Commissioners” has the meaning given by section 4 of the Taxes Management Act 1970;

(9) In section 98C of TMA 1970 (notifications under Part 7 of FA 2004)—

(a) in subsection (2), at the end insert—

, and (e) sections 313A and 313B (duty of promoter to respond to inquiry).

, and

(b) after that subsection insert—

(2A) Where a failure to comply with a provision mentioned in subsection (2) concerns a proposal or arrangements in respect of which an order has been made under section 306A of the Finance Act 2004 (doubt as to notifiability), the amount specified in subsection (1)(b) above shall be increased to the prescribed sum. (2B) Where a failure to comply with a provision mentioned in subsection (2) concerns a proposal or arrangements in respect of which an order has been made under section 314A of the Finance Act 2004 (order to disclose), the amount specified in subsection (1)(b) above shall be increased to the prescribed sum in relation to days falling after the prescribed period. (2C) In subsection (2A) and (2B)— (a) “the prescribed sum” means a sum prescribed by the Treasury by regulations, and (b) “the prescribed period” means a period beginning with the date of the order under section 314A and prescribed by the Commissioners by regulations. (2D) The making of an order under section 314A of that Act does not of itself mean that, for the purposes of section 118(2) of this Act, a person either did or did not have a reasonable excuse for non-compliance before the order was made. (2E) Where an order is made under section 314A of that Act then for the purposes of section 118(2) of this Act— (a) the person identified in the order as the promoter of the proposal or arrangements cannot, in respect of any time after the end of the period mentioned in subsection (2B), rely on doubt as to notifiability as an excuse for failure to comply with section 308 of that Act, and (b) any delay in compliance with that section after the end of that period is unreasonable unless attributable to something other than doubt as to notifiability. (2F) Regulations under subsection (2C)— (a) may include incidental or transitional provision, (b) shall be made by statutory instrument, (c) in the case of regulations under subsection (2C)(a), shall not be made unless a draft has been laid before and approved by resolution of the House of Commons, and (d) in the case of regulations under subsection (2C)(b), shall be subject to annulment in pursuance of a resolution of the House of Commons.

(10) The amendments made by this section come into force on the passing of this Act; and—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) a power under Part 7 of FA 2004 as amended by this section may be exercised in relation to, or by virtue of, matters arising wholly or partly before the passing of this Act.

Meaning of “recognised stock exchange” etc

109

Schedule 26 contains—

(a) new definitions of “recognised stock exchange” for the purposes of the Tax Acts and TCGA 1992,

(b) provision for the valuation for the purposes of TCGA 1992 of certain shares or securities listed on recognised stock exchanges,

(c) provision for the valuation for the purposes of Chapter 8 of Part 4 of ITTOIA 2005 of strips and securities exchanged for strips, and

(d) minor and consequential amendments in relation to stock exchanges.

Mergers Directive: regulations

110

(1) The Treasury may by regulations make provision about—

(a) the tax consequences of a merger to form an SE or SCE,

(b) the tax consequences of a merger where—

(i) each party to the merger is resident in a member State, and

(ii) the parties are not all resident in the same member State,

(i) each party to the transfer is resident in a member State, and

(ii) the parties are not all resident in the same member State,

(d) the tax consequences of a share exchange to which section 135 of TCGA 1992 (exchange of securities) applies where companies A and B are resident in different member States,

(e) the residence of an SE or SCE.

(2) Regulations may, in particular, make provision—

(a) about the taxation of chargeable gains (including conferring relief from taxation in relation to transfers or mergers which satisfy specified conditions),

(b) conferring relief from taxation on a distribution of a company which satisfies specified conditions,

(d) about the treatment of loan relationships,

(e) about the treatment of derivative contracts,

(f) about the treatment of intangible fixed assets, and

(g) about capital allowances.

(3) Regulations may make provision only if the Treasury think it necessary or expedient for the purposes of complying with the United Kingdom's obligations under the Mergers Directive.

(4) In this section—

“the Mergers Directive” means Council Directive 2009/133/EC,

“SCE” means an SCE formed in accordance with Council Regulation (EC) 1435/2003 on the Statute for a European Cooperative Society, and

“SE” means an SE formed in accordance with Council Regulation (EC) 2157/2001 on the Statute for a European Company.

(5) Regulations under this section may—

(a) amend the Taxes Acts,

(b) make incidental or consequential amendments of enactments other than the Taxes Acts,

(d) make provision generally or only for specified cases or circumstances,

(e) make different provision for different cases or circumstances,

(f) make incidental, consequential or transitional provision.

(6) In this section “the Taxes Acts” has the meaning given by section 118(1) of TMA 1970.

Excise duties: small consignment relief

111

(1) The Excise Duties (Small Non-Commercial Consignments) Relief Regulations 1986 (S.I. 1986/938) are revoked.

(2) The revocation made by subsection (1) does not apply in relation to goods consigned before the day on which this Act is passed.

Updating references to Standing Committees

112

(1) In section 1(4)(b) of the Provisional Collection of Taxes Act 1968 (c. 2) (circumstances in which a resolution affecting income tax etc ceases to have effect), for “Standing Committee” substitute “ Public Bill Committee ”.

(2) In section 50(2)(a) of FA 1973 (corresponding provision for stamp duty), for “Standing Committee” substitute “ Public Bill Committee ”.

Part 8 — Final provisions

Interpretation

113

(1) In this Act—

“BGDA 1981” means the Betting and Gaming Duties Act 1981 (c. 63),

“CAA 2001” means the Capital Allowances Act 2001 (c. 2),

“CEMA 1979” means the Customs and Excise Management Act 1979 (c. 2),

“CRCA 2005” means the Commissioners for Revenue and Customs Act 2005 (c. 11),

“CTA 2009” means the Corporation Tax Act 2009;

“ICTA” means the Income and Corporation Taxes Act 1988 (c. 1),

“IHTA 1984” means the Inheritance Tax Act 1984 (c. 51),

“ITA 2007” means the Income Tax Act 2007 (c. 3),

“ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003 (c. 1),

“ITTOIA 2005” means the Income Tax (Trading and Other Income) Act 2005 (c. 5),

“TCGA 1992” means the Taxation of Chargeable Gains Act 1992 (c. 12),

“TMA 1970” means the Taxes Management Act 1970 (c. 9),

“VATA 1994” means the Value Added Tax Act 1994 (c. 23), and

“VERA 1994” means the Vehicle Excise and Registration Act 1994 (c. 22).

(2) In this Act—

“FA”, followed by a year, means the Finance Act of that year, and

“F(No.2)A”, followed by a year, means the Finance (No.2) Act of that year.

Repeals

114

Schedule 27 contains repeals.

Short title

115

This Act may be cited as the Finance Act 2007.

SCHEDULE 1

Part 1 — Imposition of duty

1

The sections set out below are to be inserted in Part 2 of BGDA 1981 (gaming duties) before section 26A (which is renumbered 26N).

2

Those sections are—

(26A) (1) For the purposes of remote gaming duty “remote gaming” means gaming in which persons participate by the use of— (a) the internet, (b) telephone, (c) television, (d) radio, or (e) any other kind of electronic or other technology for facilitating communication. (2) For the purposes of remote gaming duty the expressions listed below shall be construed (for the whole of the United Kingdom) in accordance with the Gambling Act 2005.

Expression	Defining provision of Gambling Act 2005
Provision of facilities	Section 5(1) to (3)
Remote gambling equipment	Section 36(4) and (5)
Remote operating licence	Section 67

(3) In relation to remote gaming duty “P” means a person who provides facilities for remote gaming. (4) The Treasury may by order amend the definition of “remote gaming” in subsection (1) (and an order may include incidental, consequential or transitional provision). (26B) A duty of excise to be known as remote gaming duty shall be charged on the provision of facilities for remote gaming if— (a) the facilities are provided in reliance on a remote operating licence, or (b) at least one piece of remote gambling equipment used in the provision of the facilities is situated in the United Kingdom (whether or not the facilities are provided for use wholly or partly in the United Kingdom). (26C) (1) Remote gaming duty is chargeable at the rate of 15% of P's remote gaming profits for an accounting period. (2) P's remote gaming profits for an accounting period are— (a) the amount of P's remote gaming receipts for the period (calculated in accordance with section 26E), minus (b) the amount of P's expenditure for the period on remote gaming winnings (calculated in accordance with section 26F). (26D) (1) The following are accounting periods for the purposes of remote gaming duty— (a) the period of three months beginning with 1st January, (b) the period of three months beginning with 1st April, (c) the period of three months beginning with 1st July, and (d) the period of three months beginning with 1st October. (2) The Commissioners may agree with P for specified periods to be treated as accounting periods, instead of those described in subsection (1), for purposes of remote gaming duty relating to P. (3) The Commissioners may by direction make transitional arrangements for the periods to be treated as accounting periods where— (a) P becomes registered, or ceases to be registered, under section 26J, or (b) an agreement under subsection (2) begins or ends. (26E) (1) The amount of P's remote gaming receipts for an accounting period is the aggregate of— (a) amounts falling due to P in that period in respect of entitlement to use facilities for remote gaming provided by P, and (b) amounts staked, or falling due to be paid, in that period by a user of facilities for remote gaming provided by P, if or in so far as responsibility for paying any amount won by the user falls on P (or a person with whom P is connected or has made arrangements). (2) Amounts in respect of VAT shall be ignored for the purposes of subsection (1). (3) The Treasury may by order provide that where a person who uses facilities (U) relies on an offer which waives payment or permits payment of less than the amount which would have been required to be paid without the offer, U is to be treated for the purposes of this section as having paid that amount. (26F) (1) The amount of P's expenditure on remote gaming winnings for an accounting period is the aggregate of the value of prizes provided by P in that period which have been won (at any time) by persons using facilities for remote gaming provided by P. (2) Prizes provided by P to one user on behalf of another are not to be treated as prizes provided by P. (3) A reference to providing a prize to a user (U) includes a reference to crediting money in respect of gaming winnings by U to an account if U is notified that— (a) the money is being held in the account, and (b) U is entitled to withdraw it on demand. (4) The return of a stake is to be treated as the provision of a prize. (5) Where P participates in arrangements under which a number of persons who provide facilities for remote gaming contribute towards a fund which is wholly used to provide prizes in connection with the use of those facilities (sometimes described as arrangements for “linked progressive jackpot games ”)— (a) the making by P of a contribution which relates to the provision by P of facilities for remote gaming shall be treated as the provision of a prize, and (b) the award of a prize from the fund shall not be treated as the provision of a prize by P. (6) Where P credits the account of a user of facilities provided by P (otherwise than as described in subsection (3)), the credit shall be treated as the provision of a prize; but the Commissioners may direct that this subsection shall not apply in a specified case or class of cases. (7) Subsections (2) to (6) of section 20 shall apply (with any necessary modifications) for the purpose of remote gaming duty as for the purpose of bingo duty. (26G) Where the calculation of P's remote gaming profits for an accounting period produces a negative amount, it may be carried forward in reduction of the profits of one or more later accounting periods. (26H) (1) Remote gaming duty shall not be charged in respect of the provision of facilities for remote gaming if and in so far as— (a) the provision is charged with another gambling tax, or (b) the use of the facilities is charged with another gambling tax. (2) Remote gaming duty shall not be charged in respect of the provision of facilities for remote gaming if and in so far as— (a) the provision would be charged with another gambling tax but for an express exception, or (b) the use of the facilities would be charged with another gambling tax but for an express exception. (3) In this section “gambling tax” means— (a) amusement machine licence duty, (b) bingo duty, (c) gaming duty, (d) general betting duty, (e) lottery duty, and (f) pool betting duty. (4) The Treasury may by order— (a) confer an exemption from remote gaming duty, or (b) remove or vary (whether or not by textual amendment) an exemption under this section. (5) In calculating P's remote gaming profits for an accounting period, no account shall be taken of amounts or prizes if, or in so far as, they relate to the provision of facilities to which an exemption applies under or by virtue of this section. (26I) (1) P is liable for any remote gaming duty charged on P's remote gaming profits for an accounting period. (2) If P is a body corporate, P and P's directors are jointly and severally liable for any remote gaming duty charged on P's remote gaming profits for an accounting period. (3) The Commissioners may make regulations about payment of remote gaming duty; and the regulations may, in particular, make provision about— (a) timing; (b) instalments; (c) methods of payment; (d) when payment is to be treated as made; (e) the process and effect of assessments by the Commissioners of amounts due. (4) Subject to regulations under subsection (3), section 12 of the Finance Act 1994 (assessment) shall apply in relation to liability to pay remote gaming duty. (26J) (1) The Commissioners shall maintain a register of persons who provide facilities for remote gaming in respect of which remote gaming duty may be chargeable. (2) A person may not provide facilities for remote gaming in respect of which remote gaming duty may be chargeable without being registered. (3) The Commissioners may make regulations about registration; in particular, the regulations may include provision (which may include provision conferring a discretion on the Commissioners) about— (a) the procedure for applying for registration; (b) the timing of applications; (c) the information to be provided; (d) notification of changes; (e) de-registration; (f) re-registration after a person ceases to be registered. (4) The regulations may require a registered person to give notice to the Commissioners before applying for a remote operating licence. (5) The regulations may permit the Commissioners to make registration, or continued registration, of a foreign person conditional; and the regulations may, in particular, permit the Commissioners to require— (a) the provision of security for payment of remote gaming duty; (b) the appointment of a United Kingdom representative with responsibility for discharging liability to remote gaming duty. (6) In subsection (5) “foreign person” means a person who— (a) in the case of an individual, is not usually resident in the United Kingdom, (b) in the case of a body corporate, does not have an established place of business in the United Kingdom, and (c) in any other case, does not include an individual who is usually resident in the United Kingdom. (7) The regulations may include provision for the registration of groups of persons; and may provide for the modification of the provisions of this Part about remote gaming duty in their application to groups. (8) The regulations— (a) may make provision which applies generally or only for specified purposes, and (b) may make different provision for different purposes. (26K) (1) The Commissioners may make regulations requiring persons who provide facilities for remote gaming in respect of which remote gaming duty may be chargeable to make returns to the Commissioners in respect of their activities. (2) The regulations may, in particular, make provision about— (a) liability to make a return; (b) timing; (c) form; (d) content; (e) method of making; (f) declarations; (g) authentication; (h) when a return is to be treated as made. (3) The regulations— (a) may make provision which applies generally or only for specified purposes, and (b) may make different provision for different purposes. (26L) (1) Contravention of a provision made by or by virtue of sections 26I to 26K— (a) is conduct to which section 9 of the Finance Act 1994 applies (penalties), and (b) attracts daily penalties under that section. (2) A person who is knowingly concerned in, or in taking steps with a view to, the fraudulent evasion of remote gaming duty commits an offence. (3) A person guilty of an offence under subsection (2) shall be liable on summary conviction to— (a) a penalty of— (i) the statutory maximum, or (ii) if greater, three times the duty which is unpaid or the payment of which is sought to be avoided, (b) imprisonment for a term not exceeding six months, or (c) both. (4) A person guilty of an offence under subsection (2) shall be liable on conviction on indictment to— (a) a penalty of any amount, (b) imprisonment for a term not exceeding seven years, or (c) both. (26M) (1) Sections 14 to 16 of the Finance Act 1994 (review and appeal) shall apply in relation to liability to pay remote gaming duty. (2) Sections 14 to 16 of that Act shall also apply to the decisions listed in subsection (3) below. (3) Those decisions are— (a) a decision to refuse a request for an agreement under section 26D(2), (b) a decision to give a direction under section 26D(3), (c) a decision not to give a direction under section 26D(3), (d) a decision to direct that section 26F(6) shall not apply in a specified case, (e) a decision under regulations by virtue of section 26J(3), and (f) a decision about security by virtue of section 26J(5)(a). (4) A decision of a kind specified in subsection (3) shall be treated as an ancillary matter for the purposes of sections 14 to 16 of the Finance Act 1994.

Part 2 — Consequential amendments

3

In BGDA 1981, before section 26N (non-sterling amounts) (as renumbered by paragraph 1 above) insert the italic cross-heading “ General ”.

4

In section 31 of that Act (protection of officers), after “bingo duty” insert “ , remote gaming duty ”.

5

In section 32 of that Act (subordinate legislation), after subsection (2) insert—

(3) But in the case of an order under section 26H(4) which has the effect of adding to the class of activities in respect of which remote gaming duty is chargeable— (a) subsection (2) above shall not apply, and (b) the order may not be made unless a draft has been laid before and approved by resolution of the House of Commons.

6

In section 33(2) of that Act (no legalising effect), after “bingo duty” insert “ , remote gaming duty ”.

SCHEDULE 2

Introductory

1

Schedule 6 to FA 2000 (climate change levy) is amended as follows.

Reduced-rate supplies

2

In paragraph 4(2)(b) (taxable supplies: introduction), after “paragraph 24” insert “ or 45A ”.

3

In paragraph 5(3) (supplies of electricity), for “or 24” substitute “ , 24 or 45A ”.

4

In paragraph 6(2A) (supplies of gas), after “24” insert “ or 45A ”.

5

(1) Paragraph 34 (other commodities: deemed supplies) is amended as follows.

(2) In sub-paragraph (1)(b), for “or 24” substitute “ , 24 or 45A ”.

(3) After sub-paragraph (3) insert—

(4) A supply that is deemed to be made under paragraph 45A is treated as taking place upon the later determination.

6

In paragraph 39(1)(c) (regulations as to time of supply), for “or 24” substitute “ , 24 or 45A ”.

7

For paragraph 44 substitute—

(44) (1) For the purposes of this Schedule, a taxable supply is a reduced-rate supply if— (a) the taxable commodity is supplied to a facility specified in a certificate given by the Secretary of State to the Commissioners as a facility which is to be taken as being covered by a climate change agreement for a period specified in the certificate, and (b) the supply is made at a time falling in that period. (2) Sub-paragraph (1) has effect subject to paragraph 45. (3) The Commissioners may by regulations make provision for giving effect to sub-paragraph (1). (4) Regulations under this paragraph may, in particular, include provision for determining whether any taxable commodity is supplied to a facility. (5) The provision that may be made by virtue of sub-paragraph (4) includes, in particular, provision for a taxable commodity of any description specified in the regulations to be taken as supplied to a facility only if the commodity is delivered to the facility.

8

(1) Paragraph 45 (reduced-rate supplies: variation of notices under paragraph 44) is amended as follows.

(2) Omit sub-paragraphs (2) to (4).

(3) In sub-paragraph (5)—

(a) in paragraph (b), for “the variation notice is published” substitute “ the variation certificate is given ”, and

(b) for the words following that paragraph substitute “ the original certificate has effect as if the facility had never been specified in it ”.

(4) In sub-paragraph (6)—

(a) in paragraph (b), for “the variation notice is published” substitute “ the variation certificate is given ”, and

(b) for the words following that paragraph substitute “ the original certificate has effect as if the last day of the period specified for the facility in the original certificate were the day on which the variation certificate is given ”.

(5) In sub-paragraph (7), for the words from “the original notice” to the end substitute

the original certificate has effect as if the last day of the period specified for the facility in the original certificate were the later of— (a) the day on which the variation certificate is given, and (b) the day specified in the variation certificate.

(6) The italic heading before that paragraph accordingly becomes “ Reduced-rate supplies: variation of certificates under paragraph 44 ”.

9

After that paragraph insert—

(45A) (1) This paragraph applies where— (a) a taxable supply has been made to any person (“the recipient”), (b) the supply was made on the basis that it was a reduced-rate supply, and (c) it is later determined that the supply was not a reduced-rate supply. (2) For the purposes of this Schedule— (a) the recipient is deemed to make a taxable supply to itself of the taxable commodity, and (b) the amount payable by way of levy on that deemed supply is 80 per cent. of the amount that would be payable if the supply were not a reduced-rate supply.

10

In paragraph 147 (interpretation), in the definition of “reduced-rate supply”—

(a) for “44(3)” substitute “ 44(1) ”, and

(b) for “44(4)” substitute “ 44(2) ”.

Notifications and certificates

11

(1) Paragraph 11 (exemption: supply not for burning in UK) is amended as follows.

(2) In sub-paragraph (1)—

(a) omit “has, before the supply is made, notified the supplier”, and

(b) omit “that he” (in both places).

(3) In sub-paragraph (3)—

(a) omit “has, before the supply is made, notified the supplier that”, and

(b) omit “he”.

12

(1) Paragraph 101 (civil penalties: incorrect notifications etc) is amended as follows.

(2) Omit sub-paragraph (1).

(3) In sub-paragraph (2)—

(a) after “paragraphs” insert “ 11, ” and

(b) after “the certificate is” insert “ (or becomes) ”.

(4) In sub-paragraph (3)—

(a) for “sub-paragraph (1) or (2)” substitute “ this paragraph ”, and

(b) omit “notification or”.

(5) In sub-paragraph (4)—

(a) for “notification or certificate” substitute “ certificate (or not revoking or varying it) ”,

(b) for “the person who gave it” substitute “ the person concerned ”, and

(6) In sub-paragraph (5)—

(a) for “notification or certificate” substitute “ certificate (or not revoking or varying it) ”, and

(b) for “the giving of the notification or certificate” substitute “ that ”.

(7) The italic heading before paragraph 101 accordingly becomes “ Civil penalties: incorrect certificates ”.

Commencement

13

(1) Paragraphs 2 to 10 come into force on such day as the Treasury may by order made by statutory instrument appoint.

(2) But any power to make regulations under any provision inserted or amended by any of those paragraphs may be exercised at any time after this Act is passed.

(3) The power to make an order under sub-paragraph (1)—

(a) may be exercised so as to bring a provision into force only in such cases as may be described in the order,

(b) may be exercised so as to make different provision for different cases or descriptions of case,

SCHEDULE 3

Part 1 — Amendments of ITEPA 2003

1

ITEPA 2003 is amended as follows.

2

In section 7(5) (meaning of “employment income” etc), for paragraph (a) substitute—

(a) Chapters 7 to 9 of this Part (agency workers, workers under arrangements made by intermediaries, and workers providing services through managed service companies),

3

In section 48(2) (workers under arrangements made by intermediaries: scope of Chapter) for “or” at the end of paragraph (a) substitute—

(aa) applies to services provided by a managed service company (within the meaning of Chapter 9 of this Part), or

4

After section 61 insert—

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