Finance Act 2019

• (6) A statutory instrument containing regulations under subsection (5) is subject to annulment in pursuance of a resolution of the House of Commons.

• (7) The amendments made by subsections (2) and (4) come into force on such day as the Treasury may by regulations made by statutory instrument appoint.

Vehicle duties

VED: rates for light passenger vehicles, light goods vehicles, motorcycles etc

58

• (1) Schedule 1 to VERA 1994 (annual rates of vehicle excise duty) is amended as follows.

• (2) In paragraph 1 (general rate)—

• (a) in sub-paragraph (2) (vehicle not covered elsewhere in Schedule with engine cylinder capacity exceeding 1,549cc), for “£255” substitute “ £265 ”, and

• (b) in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc), for “£155” substitute “ £160 ”.

• (3) In paragraph 1B (graduated rates for light passenger vehicles registered before 1 April 2017)—

• (a) for the Table substitute—

CO₂ emissions figure	CO₂ emissions figure	Rate	Rate
(1)	(2)	(3)	(4)
Exceeding	Not exceeding	Reduced rate	Standard rate
g/km	g/km	£	£
100	110	10	20
110	120	20	30
120	130	115	125
130	140	135	145
140	150	150	160
150	165	190	200
165	175	225	235
175	185	250	260
185	200	290	300
200	225	315	325
225	255	545	555
255		560	570

;

• (b) in the sentence immediately following the Table, for paragraphs (a) and (b) substitute—

(a) in column (3), in the last two rows, “315” were substituted for “545” and “ 560 ”, and (b) in column (4), in the last two rows, “325” were substituted for “555” and “ 570 ”.

• (4) In paragraph 1GC (graduated rates for first licence for light passenger vehicles registered on or after 1 April 2017)—

• (a) for Table 1 (vehicles other than higher rate diesel vehicles) substitute—

CO₂ emissions figure	CO₂ emissions figure	Rate	Rate
(1)	(2)	(3)	(4)
Exceeding	Not exceeding	Reduced rate	Standard rate
g/km	g/km	£	£
0	50	0	10
50	75	15	25
75	90	100	110
90	100	120	130
100	110	140	150
110	130	160	170
130	150	200	210
150	170	520	530
170	190	845	855
190	225	1270	1280
225	255	1805	1815
255		2125	2135

, and

• (b) for Table 2 (higher rate diesel vehicles) substitute—

CO₂ emissions figure	CO₂ emissions figure	Rate
(1)	(2)	(3)
Exceeding	Not exceeding	Rate
g/km	g/km	£
0	50	25
50	75	110
75	90	130
90	100	150
100	110	170
110	130	210
130	150	530
150	170	855
170	190	1280
190	225	1815
225	255	2135
255		2135

.

• (5) In paragraph 1GD (rates for any other licence for light passenger vehicles registered on or after 1 April 2017), in sub-paragraph (1)—

• (a) in paragraph (a) (the reduced rate) for “£130” substitute “ £135 ”, and

• (b) in paragraph (b) (the standard rate) for “£140” substitute “ £145 ”.

• (6) In paragraph 1GE (rates for light passenger vehicles registered on or after 1 April 2017 with a price exceeding £40,000), in sub-paragraph (4) for “£310” substitute “ £320 ”.

• (7) In paragraph 1J (rates for light goods vehicles), in paragraph (a) for “£250” substitute “ £260 ”.

• (8) In paragraph 2(1) (rates for motorcycles)—

• (a) in paragraph (a) for “£19” substitute “ £20 ”,

• (b) in paragraph (b) for “£42” substitute “ £43 ”,

• (c) in paragraph (c) for “£64” substitute “ £66 ”, and

• (d) in paragraph (d) for “£88” substitute “ £91 ”.

• (9) The amendments made by this section have effect in relation to licences taken out on or after 1 April 2019.

VED: taxis capable of zero emissions

59

• (1) Part 1AA of Schedule 1 to VERA 1994 (annual rates of duty: light passenger vehicles first registered on or after 1 April 2017) is amended as follows.

• (2) In paragraph 1GE (higher rates for vehicles with price above £40,000), after sub-paragraph (4) insert—

(5) Sub-paragraphs (2) and (4) do not apply to a vehicle if when it is first registered, whether that is under this Act or under the law of a country or territory outside the United Kingdom, it is a taxi capable of zero emissions (see paragraph 1GG).

• (3) After paragraph 1GF insert—

(1GG) (1) The Secretary of State may by regulations make provision about the meaning of “taxi capable of zero emissions” in paragraph 1GE. (2) In the following provisions of this paragraph “regulations” means regulations under sub-paragraph (1). (3) Regulations may (in particular) make provision of any one or more of the following kinds— (a) that a vehicle is a taxi capable of zero emissions if the vehicle is of a description specified in regulations; (b) that a vehicle is at any particular time a taxi capable of zero emissions if the vehicle is of a model specified at that time in a list maintained by the Secretary of State; (c) that a vehicle is a taxi capable of zero emissions if conditions specified in regulations are met. (4) Where regulations make provision of the kind mentioned in sub-paragraph (3)(b)— (a) regulations may (in particular) provide that a model of vehicle may be specified in the list only if it appears to the Secretary of State that vehicles of that model are of a description specified in regulations; (b) regulations must provide for publication of the list; (c) regulations may allow a model of vehicle to be included in the list with backdated effect. (5) A description of a kind mentioned in sub-paragraph (3)(a) or (4)(a) may be framed (in particular) by reference to a scheme, or an instrument or other document, as it has effect from time to time. (6) Regulations made before 1 April 2020 that do not increase the amount of vehicle excise duty for which any person is liable may have effect in relation to vehicle licences taken out at times before the regulations come into force (including times before the regulations are made).

• (4) The amendments made by this section have effect in relation to licences taken out on or after 1 April 2019.

• (5) The new paragraph 1GE(5) has effect, in the case of a vehicle first registered in the two years beginning with 1 April 2017, as if the reference to when the vehicle is first registered were to the start of the first period beginning on or after 1 April 2019 for which a vehicle licence for the vehicle is taken out.

HGV road user levy

60

• (1) The HGV Road User Levy Act 2013 is amended in accordance with subsections (2) to (6).

• (2) In section 5(5) (payment of levy for UK heavy goods vehicles) for “in Schedule 1” substitute “ or Table 1A in Schedule 1 (depending on which of those Tables applies to the vehicle) ”.

• (3) In section 6(4) (payment of levy for non-UK heavy goods vehicles) for “in Schedule 1” substitute “ or Table 1A in Schedule 1 (depending on which of those Tables applies to the vehicle) ”.

• (4) In section 7 (rebate of levy), after subsection (2) insert—

(2A) A rebate entitlement also arises where— (a) HGV road user levy has been paid in respect of a vehicle at the rate applicable to a vehicle that does not meet Euro 6 emissions standards, and (b) the vehicle becomes a vehicle that meets those standards.

• (5) In section 19 (interpretation)—

• (a) in subsection (3)—

• (i) in paragraph (b), for “under section 7” substitute “ as a result of an entitlement arising under section 7(2) ”, and

• (ii) after paragraph (b) insert—

(c) where a person receives a rebate of levy in respect of a vehicle as a result of an entitlement arising under section 7(2A), the person is treated as not having paid levy in respect of the vehicle for the period starting with the first day of the month after the month in which the application for a rebate was made and ending with the end of the levy period.

, and

• (b) after subsection (3), insert—

(4) For the purposes of subsection (3)(c), a month starts on the day of the month on which the levy period started.

• (6) In Schedule 1 (rates of HGV road user levy)—

• (a) for paragraph 1 substitute—

(1) (1) Table 1 applies to a heavy goods vehicle that meets Euro 6 emissions standards. (2) Table 1A applies to a heavy goods vehicle that does not meet Euro 6 emissions standards. (3) Tables 1 and 1A set out the rates of levy for each of the Bands given by Tables 2 to 5 and by paragraph 4.

;

• (b) in paragraph 5, after paragraph (b) insert—

(c) a heavy goods vehicle meets Euro 6 emissions standards if it complies with the emission limits set out in Annex 1 of Regulation (EC) No. 595/2009 of the European Parliament and of the Council of 18th June 2009 on type approval of motor vehicles and engines with respect to emissions from heavy duty vehicles (Euro VI) and on access to repair and maintenance information.

;

• (c) for Table 1 substitute—

Band	Daily rate	Weekly rate	Monthly rate	Half-yearly rate	Yearly rate
A	£1.53	£3.83	£7.65	£45.90	£76.50
B	£1.89	£4.73	£9.45	£56.70	£94.50
C	£4.32	£10.80	£21.60	£129.60	£216.00
D	£6.30	£15.75	£31.50	£189.00	£315.00
E	£9.00	£28.80	£57.60	£345.60	£576.00
F	£9.00	£36.45	£72.90	£437.40	£729.00
G	£9.00	£45.00	£90.00	£540.00	£900.00
B(T)	£2.43	£6.08	£12.15	£72.90	£121.50
C(T)	£5.58	£13.95	£27.90	£167.40	£279.00
D(T)	£8.10	£20.25	£40.50	£243.00	£405.00
E(T)	£9.00	£37.35	£74.70	£448.20	£747.00
Band	Daily rate	Weekly rate	Monthly rate	Half-yearly rate	Yearly rate
---	---	---	---	---	---
A	£2.04	£5.10	£10.20	£61.20	£102.00
B	£2.52	£6.30	£12.60	£75.60	£126.00
C	£5.76	£14.40	£28.80	£172.80	£288.00
D	£8.40	£21.00	£42.00	£252.00	£420.00
E	£10.00	£38.40	£76.80	£460.80	£768.00
F	£10.00	£48.60	£97.20	£583.20	£972.00
G	£10.00	£60.00	£120.00	£720.00	£1,200.00
B(T)	£3.24	£8.10	£16.20	£97.20	£162.00
C(T)	£7.44	£18.60	£37.20	£223.20	£372.00
D(T)	£10.00	£27.00	£54.00	£324.00	£540.00
E(T)	£10.00	£49.80	£99.60	£597.60	£996.00

• (7) The HGV Road User Levy (Rate for Prescribed Vehicles) Regulations 2018 (S.I. 2018/417) are revoked.

• (8) In section 19 of VERA 1994 (rebates)—

• (a) in subsection (3), after paragraph (g) insert—

(h) a relevant application for a vehicle licence for the vehicle has been received by the Secretary of State.

,

• (b) after subsection (3ZA) insert—

(3ZB) An application for a vehicle licence is a relevant application for the purposes of subsection (3)(h) if— (a) there is an unexpired licence for the vehicle in respect of which the application is made, (b) when the unexpired licence was taken out, the vehicle was chargeable to HGV road user levy under section 5 of the HGV Road User Levy Act 2013 at a rate applicable to a vehicle that does not meet Euro 6 emissions standards, and (c) the vehicle now meets those standards, and an application for a rebate of HGV road user levy has been made under section 7 of that Act as a result of an entitlement arising under subsection (2A) of that section.

,

• (c) in subsection (7), after “rebate conditions” insert “ (other than the condition in subsection (3)(h)) ”, and

• (d) after subsection (7) insert—

(7A) Where the rebate condition in subsection (3)(h) is satisfied in relation to a licence, the licence ceases to be in force immediately before the first day of the period for which the relevant person is treated as not having paid levy in respect of the vehicle as a result of section 19(3)(c) of the HGV Road User Levy Act 2013.

• (9) The amendments and revocation made by subsections (1) to (7) are to be treated as having effect in relation to HGV road user levy that—

• (a) becomes due on or after 1 February 2019, and

• (b) is paid on or after that date.

• (10) The amendments made by subsection (8) are to be treated as having effect in relation to licences taken out on or after 1 February 2019.

Air passenger duty

Rates of duty from 1 April 2020

61

• (1) In section 30 of FA 1994 (air passenger duty: rates), in subsection (4A) (long haul rates of duty)—

• (a) in paragraph (a) for “£78” substitute “ £80 ”, and

• (b) in paragraph (b) for “£172” substitute “ £176 ”.

• (2) Those amendments have effect in relation to the carriage of passengers beginning on or after 1 April 2020.

Gaming

Remote gaming duty: rate

62

• (1) In section 155(3) of FA 2014 (rate of remote gaming duty) for “15%” substitute “ 21% ”.

• (2) That amendment has effect in relation to accounting periods beginning on or after 1 April 2019.

• (3) The amount of remote gaming duty charged in respect of an accounting period that begins before and ends on or after 1 April 2019 is the sum of—

• (a) the amount of that duty that would have been charged in respect of the accounting period had it consisted only of those days within the period that fell before that date, and

• (b) the amount of that duty that would have been charged in respect of the accounting period had it consisted only of those days within the period that fell on or after that date and had the amendment made by subsection (1) had effect in relation to it.

Gaming duty

63

Schedule 19 contains provision about gaming duty.

Environmental taxes

Climate change levy: exemption for mineralogical and metallurgical processes

64

• (1) Paragraph 12A of Schedule 6 to FA 2000 (exemption: mineralogical and metallurgical processes) is amended as follows.

• (2) In sub-paragraph (1)—

• (a) omit “to a person”, and

• (b) omit “by the person”.

• (3) In sub-paragraph (2), for the words from “has the same meaning” to the end substitute “ means a process falling within Division 23 of NACE Rev 2. ”

• (4) In sub-paragraph (4), the words after paragraph (c) become sub-paragraph (4A).

• (5) In that sub-paragraph, for “sub-paragraph” substitute “ paragraph ”.

Landfill tax rates

65

• (1) Section 42 of FA 1996 (amount of landfill tax) is amended as follows.

• (2) In subsection (1)(a) (standard rate), for “£88.95” substitute “ £91.35 ”.

• (3) In subsection (2) (reduced rate for certain disposals), in the words after paragraph (b)—

• (a) for “£88.95” substitute “ £91.35 ”, and

• (b) for “£2.80” substitute “ £2.90 ”.

• (4) The amendments made by this section have effect in relation to disposals made (or treated as made) on or after 1 April 2019.

Inheritance tax

Residence nil-rate band

66

• (1) IHTA 1984 is amended as follows.

• (2) In section 8FA(2)(b) and (5) (conditions for entitlement to downsizing addition), for “VT”, in each place it occurs, substitute “ the value transferred by the transfer of value under section 4 on the person's death ”.

• (3) In section 8FE(9) (calculation of downsizing addition in section 8FA cases), in Step 2, for “VT” substitute “ the value transferred by the transfer of value under section 4 on the person's death ”.

• (4) In section 8E(1) (which, in relation to the person mentioned in section 8D(1), refers to the transfer of value under section 4), after “section 4” insert “ on the person's death ”.

• (5) In section 8J(6) (meaning of “inherited”: property disposed of before death by gift subject to a reservation), for the words after “by way of” substitute

gift— (a) subsections (2) to (5) do not apply, and (b) B inherits the property if the property originally comprised in the gift became comprised in B's estate on the making of the disposal.

• (6) The amendments made by this section apply for the purpose of calculating the amount of the charge to inheritance tax under section 4 of IHTA 1984 on a person's death if the person dies after 29 October 2018.

Soft drinks industry levy

Application of penalty provisions

67

• (1) In Schedule 10 to F(No.3)A 2010 (which prospectively amends Schedule 55 to FA 2009 (penalties for failure to make returns etc)) in paragraph 7, in the inserted paragraph 13A(1), after “7B” insert “ , 13A ”.

• (2) The amendments to Schedule 55 to FA 2009 made by Schedule 10 to F(No.3)A 2010 (including the amendment made by subsection (1)) are taken to have come into force for the purposes of soft drinks industry levy on the day on which this section comes into force.

• (3) In Schedule 11 to F(No.3)A 2010 (which prospectively amends Schedule 56 to FA 2009 (penalties for failure to make payments)) in paragraph 5(3), in the substituted text of paragraph 3(1)(a) of Schedule 56 to FA 2009, for “11” substitute “ 11ZA ”.

Isle of Man

68

• (1) In section 1(1) of the Isle of Man Act 1979 (common duties), at the end insert—

(f) soft drinks industry levy chargeable under the law of the United Kingdom or the Isle of Man.

• (2) Part 2 of FA 2017 (soft drinks industry levy) is amended in accordance with subsections (3) and (4).

• (3) After section 58 insert—

(58A) (1) Subsections (2) and (3) apply if— (a) chargeable soft drinks are imported into the United Kingdom from the Isle of Man, and (b) a charge to soft drinks industry levy (the “corresponding charge”) arises in relation to the soft drinks under the law of the Isle of Man. (2) If the corresponding charge arises at a rate equal to, or greater than, the UK rate, the soft drinks are not to be treated as being imported into the United Kingdom for the purposes of section 33 (chargeable events: imported soft drinks). (3) If the corresponding charge arises at a rate lower than the UK rate, the amount of soft drinks industry levy charged under this Part in relation to the soft drinks is to be reduced by an amount equal to the corresponding charge. (4) In this section “the UK rate”, in relation to chargeable soft drinks, is the rate of soft drinks industry levy that would (apart from this section) be chargeable in relation to the soft drinks under this Part. (5) For the purposes of section 39(1)(a) (tax credits: exported soft drinks) or regulations made under that provision, chargeable soft drinks are not to be treated as being exported from the United Kingdom if the soft drinks are exported to the Isle of Man.

• (4) At the end of section 33, insert—

(10) This section is subject to section 58A (Isle of Man: import and export of chargeable soft drinks).

• (5) In section 39, after subsection (5) insert—

(5A) This section is subject to section 58A (Isle of Man: import and export of chargeable soft drinks).

• (6) This section comes into force on 1 April 2019.

PART 3 — Carbon emissions tax

Introductory

Carbon emissions tax

69

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Charge to tax

Charge to carbon emissions tax

70

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

“Reported carbon emissions”

71

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

“Emissions report” and “reporting period”

72

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

“Emissions allowance”

73

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Liability to pay carbon emissions tax

74

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Administration etc.

Power to make further provision about carbon emissions tax

75

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Consequential provision

76

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

General

Interpretation

77

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Regulations

78

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Commencement and transitional provision

79

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 4 — Administration and enforcement

Time limits for assessments etc

Offshore matters or transfers: income tax and capital gains tax

80

• (1) TMA 1970 is amended as follows.

• (2) After section 36 insert—

(36A) (1) This section applies in a case involving a loss of income tax or capital gains tax, where— (a) the lost tax involves an offshore matter, or (b) the lost tax involves an offshore transfer which makes the lost tax significantly harder to identify. (2) An assessment on a person (“the taxpayer”) may be made at any time not more than 12 years after the end of the year of assessment to which the lost tax relates. This is subject to section 36(1A) above and any other provision of the Taxes Acts allowing a longer period. (3) Lost income tax or capital gains tax “involves an offshore matter” if it is charged on or by reference to— (a) income arising from a source in a territory outside the United Kingdom, (b) assets situated or held in a territory outside the United Kingdom, (c) income or assets received in a territory outside the United Kingdom, (d) activities carried on wholly or mainly in a territory outside the United Kingdom, or (e) anything having effect as if it were income, assets or activities of a kind described above. (4) Lost income tax or capital gains tax “involves an offshore transfer” if— (a) it does not involve an offshore matter, and (b) the income or the proceeds of the disposal on or by reference to which it is charged, or any part of the income or proceeds, is transferred to a territory outside the United Kingdom before the relevant date. (5) In subsection (4)— “relevant date” means— 1. in a case where the taxpayer (or a person acting on the taxpayer's behalf) delivered a return under the Taxes Acts to HMRC for the year of assessment to which the lost tax relates and in which information relating to the lost tax was required to be provided, the date on which the return was delivered, and 2. in any other case, 31 January in the year of assessment after that to which the lost tax relates; references to income or proceeds transferred include references to assets derived from or representing the income or proceeds. (6) Where lost tax involves an offshore transfer, the cases in which the transfer makes the lost tax significantly harder to identify include any case where, because of the transfer— (a) HMRC was significantly less likely to become aware of the lost tax, or (b) HMRC was likely to become aware of the lost tax only at a significantly later time. (7) But an assessment may not be made under subsection (2) if— (a) before the time limit that would otherwise apply for making the assessment, HMRC received relevant overseas information on the basis of which HMRC could reasonably have been expected to become aware of the lost tax, and (b) it was reasonable to expect the assessment to be made before that time limit. (8) In subsection (7)(a) “relevant overseas information” means information which is provided to HMRC by an authority in a territory outside the United Kingdom under— (a) any provision of EU law relating to any tax, or (b) an agreement to which the United Kingdom and that territory are parties, with or without other parties. (9) An assessment may also not be made under subsection (2) to the extent that liability to the lost tax arises as a result of an adjustment under Part 4 of TIOPA 2010 (transfer pricing adjustments). (10) In this section “assets” has the meaning given in section 21(1) of the 1992 Act, but also includes sterling. (11) Section 36(2) to (3A) applies for the purposes of this section (as if references to section 36(1) or (1A) were to subsection (1) of this section).”

• (3) In section 37A (effect of assessment where allowances transferred), after “or (1A)” insert “ or 36A ”.

• (4) In section 40 (personal representatives), in subsection (1), for “or 36” substitute “ , 36 or 36A ”.

• (5) The amendments made by this section have effect—

• (a) in relation to assessments on a person relating to the 2013-14 year of assessment and subsequent years of assessment, where the loss of tax is brought about carelessly by that person or by a person acting on that person's behalf, and

• (b) in any other case, in relation to assessments relating to the 2015-16 year of assessment and subsequent years of assessment.

Offshore matters or transfers: inheritance tax

81

• (1) IHTA 1984 is amended as follows.

• (2) In section 240 (underpayments), in subsection (3), at the end insert “ and to section 240B (underpayments involving offshore matter etc). ”

• (3) After section 240A insert—

(240B) (1) This section applies in a case within section 240(2) which involves a loss of tax in relation to a chargeable transfer, where— (a) the lost tax involves an offshore matter, or (b) the lost tax involves an offshore transfer which makes the lost tax significantly harder to identify. (2) Proceedings for the recovery of the lost tax may be brought at any time not more than 12 years after the later of the dates in section 240(2)(a) and (b). (3) Lost tax “involves an offshore matter” if it is charged on or by reference to property which is situated or held in a territory outside the United Kingdom at, or immediately after, the time of the chargeable transfer. (4) Lost tax “involves an offshore transfer” if— (a) it does not involve an offshore matter, and (b) the property is transferred to a territory outside the United Kingdom at a relevant time. (5) In subsection (4)(b) “relevant time” means a time after the chargeable transfer but before— (a) the date on which an account under section 216 is delivered to HMRC in relation to the chargeable transfer, or (b) any later date on which an account under section 217 is so delivered. (6) Where lost tax involves an offshore transfer, the cases in which the transfer makes the lost tax significantly harder to identify include any case where, because of the transfer— (a) HMRC was significantly less likely to become aware of the lost tax, or (b) HMRC was likely to become aware of the lost tax only at a significantly later time. (7) But proceedings may not be brought under this section if— (a) before the last date on which the proceedings could otherwise be brought, HMRC received relevant overseas information on the basis of which HMRC could reasonably have been expected to become aware of the lost tax, and (b) it was reasonable to expect the proceedings to be brought before that date. (8) In subsection (7)(a) “relevant overseas information” means information which is provided to HMRC by an authority in a territory outside the United Kingdom under— (a) any provision of EU law relating to any tax, or (b) an agreement to which the United Kingdom and that territory are parties, with or without other parties. (9) This section is subject to any provision of this Act which allows for a longer period for the bringing of proceedings.

• (4) The amendments made by this section have effect—

• (a) in a case involving loss of tax brought about carelessly by a person liable for the tax (or a person acting on behalf of such a person), in relation to chargeable transfers taking place on or after 1 April 2013, and

• (b) in any other case, in relation to chargeable transfers taking place on or after 1 April 2015.

• (5) Section 240(8) of IHTA 1984 applies to the reference to “person liable for the tax” in subsection (4)(a).

Security deposits

Construction industry scheme and corporation tax etc

82

• (1) In Chapter 3 of Part 3 of FA 2004 (construction industry scheme)—

• (a) in the italic heading before section 69, after “returns” insert “ , security ”;

• (b) after section 70 insert—

(70A) (1) The Commissioners for Her Majesty's Revenue and Customs may by regulations make provision for and in connection with requiring the giving, by prescribed persons and in prescribed circumstances, of security for the payment of amounts that a person is or may be liable to pay to the Commissioners under this Chapter. (2) Regulations under this section must provide that security may be required only where an officer of Revenue and Customs considers it necessary for the protection of the revenue. (3) Regulations under this section must provide for a right of appeal against— (a) decisions to require security to be given; (b) decisions as to the amount, terms or duration of any security required. (4) A person commits an offence if— (a) the person fails to comply with a requirement to give security that is imposed by regulations under this section, and (b) the failure continues for such period as is prescribed. (5) A person who commits an offence under subsection (4) is liable on summary conviction— (a) in England and Wales, to a fine; (b) in Scotland or Northern Ireland, to a fine not exceeding level 5 on the standard scale. (6) In this section— - “prescribed” means prescribed in regulations under this section; - “security” includes further security.

• (2) In Schedule 18 to FA 1998 (company tax returns, assessments and related matters), after paragraph 88 insert—

(88A) (1) The Commissioners for Her Majesty's Revenue and Customs may by regulations make provision for and in connection with requiring the giving, by prescribed persons and in prescribed circumstances, of security for the payment of tax that a company is or may be liable to pay. (2) Regulations under this paragraph must provide that security may be required only where an officer of Revenue and Customs considers it necessary for the protection of the revenue. (3) Regulations under this paragraph must provide for a right of appeal against— (a) decisions to require security to be given; (b) decisions as to the amount, terms or duration of any security required. (4) A person commits an offence if— (a) the person fails to comply with a requirement to give security that is imposed by regulations under this paragraph, and (b) the failure continues for such period as is prescribed. (5) A person who commits an offence under sub-paragraph (4) is liable on summary conviction— (a) in England and Wales, to a fine; (b) in Scotland or Northern Ireland, to a fine not exceeding level 5 on the standard scale. (6) In this paragraph— - “prescribed” means prescribed in regulations under this paragraph; - “security” includes further security.

• (3) In section 684(4A) of ITEPA 2003 (failure to comply with requirement under PAYE regulations to give security), for “on summary conviction to a fine not exceeding level 5 on the standard scale” substitute

on summary conviction— (a) in England and Wales, to a fine; (b) in Scotland or Northern Ireland, to a fine not exceeding level 5 on the standard scale

.

International agreements

Resolution of double taxation disputes

83

In Chapter 2 of Part 2 of TIOPA 2010 (double taxation relief: miscellaneous provisions) after section 128 insert—

(128A) (1) The Treasury may make regulations for, or in connection with, giving effect to or enabling effect to be given to— (a) Council Directive (EU) 2017/1852 of 10 October 2017 on tax dispute resolution mechanisms in the European Union (“the Directive”); (b) any instrument modifying or supplementing the Directive; (c) any international agreements or arrangements that deal with— (i) matters dealt with by the Directive, (ii) matters that are similar to any of those dealt with by the Directive, or (iii) any other matters that relate to or are connected with the resolution of disputes in relation to double taxation arrangements. (2) The provision that may be made by regulations under this section includes (in particular)— (a) provision as to the effect of any arrangements that the Commissioners for Her Majesty's Revenue and Customs may make with authorities of territories outside the United Kingdom; (b) provision conferring or imposing functions, rights or obligations, or authorising the conferral or imposition of functions, rights or obligations, on a person (including a commission, tribunal or court); (c) provision under which the Commissioners or other persons may exercise discretions; (d) provision about procedure in relation to the resolution of disputes; (e) provision about costs, expenses and fees; (f) provision imposing penalties or creating criminal offences; (g) provision about appeals; (h) provision about the form and manner in which, or time within which, things are to be done; (i) provision supplementing section 128B. (3) The regulations may— (a) make provision having effect in relation to periods before the regulations come into force; (b) make provision by reference to an instrument or document as it has effect from time to time; (c) make provision about things done, or to be done, in territories outside the United Kingdom; (d) make different provision for different purposes; (e) make consequential, incidental, supplemental, transitional, transitory or saving provision; (f) make provision amending, repealing, revoking or disapplying, or modifying the effect of, any enactment (whenever passed or made). (4) The regulations may not create a criminal offence punishable on indictment with imprisonment for more than two years. (5) Regulations under this section containing anything that amends or repeals a provision of primary legislation may not be made unless a draft of the regulations has been laid before, and approved by a resolution of, the House of Commons. In this subsection “primary legislation” means— (a) an Act, (b) an Act of the Scottish Parliament, (c) a Measure or Act of the National Assembly for Wales, or (d) Northern Ireland legislation. (6) In subsections (2) and (3) and sections 128B and 128C, a reference to a commission, tribunal, court or other person includes a reference to a commission, tribunal, court or other person in a territory outside the United Kingdom. (128B) (1) Subsection (2) applies if anything in regulations under section 128A requires the Commissioners for Her Majesty's Revenue and Customs to give effect to an agreement, decision or opinion made or given by— (a) the Commissioners (or their authorised representative), (b) the competent authority of a territory outside the United Kingdom, or (c) any commission, tribunal, court or other person. (2) The Commissioners are to give effect to the agreement, decision or opinion despite anything in any enactment, and any such adjustment as is appropriate in consequence may be made. (3) An adjustment under subsection (2) may be made by way of discharge or repayment of tax, the allowance of credit against tax payable in the United Kingdom, the making of an assessment or otherwise. (128C) (1) The obligation as to secrecy imposed by any enactment does not prevent— (a) the Commissioners for Her Majesty's Revenue and Customs, (b) a person who is or was an authorised Revenue and Customs official, (c) a person who is or was a member of a committee or other body established by the Commissioners for Her Majesty's Revenue and Customs (or jointly by the Commissioners and an authority of a territory outside the United Kingdom), or (d) a person specified, or of a description specified, in regulations made by the Treasury, from disclosing information required to be disclosed under a relevant instrument or agreement in pursuance of a request made by any person. (2) In this section— - “relevant instrument or agreement” means an instrument, agreement or arrangement referred to, or of a kind referred to, in section 128A(1); - “Revenue and Customs official” means— 1. a Commissioner for Her Majesty's Revenue and Customs; 2. an officer of Revenue and Customs; 3. a person acting on behalf of the Commissioners for Her Majesty's Revenue and Customs; 4. a person acting on behalf of an officer of Revenue and Customs.

International tax enforcement: disclosable arrangements

84

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Payment of unlawful advance corporation tax

Interest in respect of unlawful ACT

85

• (1) This section applies where—

• (a) on any date before 12 December 2012, a person started proceedings against the Commissioners in the High Court or the Court of Session,

• (b) the proceedings include a claim arising out of a relevant payment, and

• (c) the claim has not been settled, discontinued or finally determined.

• (2) “Relevant payment” means a payment of unlawful ACT that—

• (a) was made by the person on or after 1 January 1996 or in the period of 6 years ending immediately before the date the proceedings were started, and

• (b) was set off or repaid (wholly or in part) before the proceedings were started.

• (3) The person is entitled to an order requiring the Commissioners to pay to the person—

• (a) an amount (“the principal amount”) equal to the amount of interest that would have accrued if simple interest had accrued on the relevant payment at the appropriate rate for the period beginning with the date the payment was made and ending with—

• (i) the date as regards which the unlawful ACT was set off, or

• (ii) the date the unlawful ACT was repaid, and

• (b) simple interest at the appropriate rate on the principal amount for the period beginning with the day after the date mentioned in paragraph (a)(i) or (ii) and ending with the date the principal amount is paid.

• (4) “The appropriate rate” is, in relation to any day, the rate specified in the following table in respect of that day.

Period	Rate per year (%)
1 October 1993 to 31 March 1997	8
1 April 1997 to 5 January 1999	6
6 January 1999 to 5 March 1999	5
6 March 1999 to 5 February 2000	4
6 February 2000 to 5 May 2001	5
6 May 2001 to 5 November 2001	4
6 November 2001 to 5 August 2003	3
6 August 2003 to 5 December 2003	2
6 December 2003 to 5 September 2004	3
6 September 2004 to 5 September 2005	4
6 September 2005 to 5 September 2006	3
6 September 2006 to 5 August 2007	4
6 August 2007 to 5 January 2008	5
6 January 2008 to 5 November 2008	4
6 November 2008 to 5 December 2008	3
6 December 2008 to 5 January 2009	2
6 January 2009 to 26 January 2009	1
27 January 2009 to 29 October 2018	0.5
30 October 2018 onwards	0.5 or such other rate as the Treasury may by regulations specify in respect of a period specified in the regulations

• (5) Where the unlawful ACT was repaid, any amount of interest or repayment supplement paid by the Commissioners on the making of the repayment is to be deducted from the principal amount (and subsection (3)(b) has effect accordingly).

• (6) Where part of the unlawful ACT has been set off or repaid at one time, and part of it has been set off or repaid at another time or has not been set off or repaid, for the purposes of this section treat each part as a separate payment.

• (7) In this section—

• “the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs (or, in relation to any time before the commencement of section 5 of the Commissioners for Revenue and Customs Act 2005, the Commissioners of Inland Revenue);

• “set off or repaid”: references to a payment of unlawful ACT being set off or repaid are—to it being set against a liability to corporation tax of any person, orto it being repaid by the Commissioners;

• “settled” means settled by agreement;

• “unlawful ACT” means advance corporation tax that was unlawfully levied.

• (8) The Treasury may by regulations substitute for the date for the time being specified in subsection (1)(a) such later date as they consider appropriate.

• (9) Regulations under this section are to be made by statutory instrument.

• (10) A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.

Section 85: supplementary

86

• (1) This section supplements section 85.

• (2) Nothing in section 85 limits the remedies that a court may award in respect of the claim.

• (3) However—

• (a) a person is not entitled to an order under section 85 in respect of a relevant payment if the person has obtained any other relevant remedy in respect of the relevant payment, and

• (b) a person who has obtained an order under section 85 in respect of a relevant payment is not entitled to any other relevant remedy in respect of the relevant payment.

• (4) In subsection (3) “relevant remedy” means a remedy for the loss of use of the amount of the relevant payment during the period mentioned in section 85(3)(a) (or during some similar period).

• (5) Any interest or repayment supplement paid by the Commissioners on the making of—

• (a) a repayment of a relevant payment, or

• (b) a repayment of corporation tax occurring as a result of a relevant payment,

is not regarded as a relevant remedy in respect of the relevant payment.

• (6) Where the right to bring a claim arising out of a payment of unlawful ACT has been transferred from the person who made the payment (“the payor”) to another person (“the successor”)—

• (a) in section 85(1) the reference to “a person” is to the payor or the successor;

• (b) in section 85(2) the reference to “the person” is to the payor;

• (c) in section 85(3) the reference to “the person” is to the successor.

• (7) Any amount paid by the Commissioners to a person on a day by virtue of section 85 is to be brought into account when calculating, for tax purposes, the profits (or income) of the person for any period which includes that day.

Voluntary returns

Voluntary returns

87

• (1) In Part 2 of TMA 1970 (returns of income and gains), after section 12C insert—

(12D) (1) This section applies where— (a) a person delivers a purported return (“the relevant return”) under section 8, 8A or 12AA (“the relevant section”) for a year of assessment or other period (“the relevant period”), (b) no notice under the relevant section has been given to the person in respect of the relevant period, and (c) HMRC treats the relevant return as a return made and delivered in pursuance of such a notice. (2) For the purposes of the Taxes Acts— (a) treat a relevant notice as having been given to the person on the day the relevant return was delivered, and (b) treat the relevant return as having been made and delivered in pursuance of that notice (and, accordingly, treat it as if it were a return under the relevant section). (3) “Relevant notice” means— (a) in relation to section 8 or 8A, a notice under that section in respect of the relevant period; (b) in relation to section 12AA, a notice under section 12AA(3) requiring the person to deliver a return in respect of the relevant period, on or before the day the relevant return was delivered (or, if later, the earliest day that could be specified under section 12AA). (4) In subsection (1)(a) “purported return” means anything that— (a) is in a form, and is delivered in a way, that a corresponding return could have been made and delivered had a relevant notice been given, and (b) purports to be a return under the relevant section. (5) Nothing in this section affects sections 34 to 36 or any other provisions of the Taxes Acts specifying a period for the making or delivering of any assessment (including self-assessment) to income tax or capital gains tax.

• (2) In Schedule 18 to FA 1998 (company tax returns etc) at the end of Part 2 insert—

(20A) (1) This paragraph applies where— (a) a company delivers a purported return (“the relevant return”) for a period (“the relevant period”), (b) no notice under paragraph 3 has been given to the company in respect of the relevant period, and (c) Her Majesty's Revenue and Customs treats the relevant return as a return made and delivered in pursuance of such a notice. (2) For the purposes of the Taxes Acts— (a) treat a relevant notice as having been given to the company on the day the relevant return was delivered, and (b) treat the relevant return as having been made and delivered in pursuance of that notice (and, accordingly, treat it as if it were a company tax return under paragraph 3). (3) “Relevant notice” means a notice under paragraph 3 requiring the company to deliver a return for the relevant period. (4) In sub-paragraph (1)(a) “purported return” means anything that— (a) is in a form, and is delivered in a way, that a corresponding return could have been made and delivered had a relevant notice been given, and (b) purports to be a company tax return. (5) Nothing in this paragraph affects paragraph 46 or any other provisions of the Taxes Acts specifying a time limit for the making of an assessment.

• (3) The amendments made by this section are treated as always having been in force.

• (4) However, those amendments do not apply in relation to a purported return delivered by a person if, before 29 October 2018—

• (a) the person made an appeal under the Taxes Acts, or a claim for judicial review, and

• (b) the ground (or one of the grounds) for the making of the appeal or claim was that the purported return was not a return under section 8, 8A or 12AA of TMA 1970 or paragraph 3 of Schedule 18 to FA 1998 because no relevant notice was given.

• (5) The Treasury may by regulations—

• (a) make such amendments of relevant tax legislation as they consider appropriate in consequence of subsection (1) or (2);

• (b) make such amendments of section 12D of TMA 1970 (inserted by subsection (1) of this section) as they consider appropriate in connection with the coming into force of section 61 of, and Schedule 14 to, F(No.2)A 2017 (digital reporting and record keeping for income tax etc).

• (6) In subsection (5)(a) “relevant tax legislation” means—

• (a) TMA 1970,

• (b) Schedule 18 to FA 1998, or

• (c) any other enactment relating to income tax, corporation tax or capital gains tax.

• (7) Regulations under this section are to be made by statutory instrument.

• (8) A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.

Interest

Interest under section 178 of FA 1989 and section 101 of FA 2009

88

• (1) Where, before the day on which this Act is passed—

• (a) regulations under subsection (1) of section 178 of FA 1989 provide for a rate of interest for the purposes of an enactment to which that section applies, but

• (b) no order was made under subsection (7) of that section appointing a day for that enactment,

the rate has effect for any period of time beginning on or after the day on which the regulations came into force even though no such order was made.

• (2) In section 178 of FA 1989 (setting of rates of interest)—

• (a) in subsection (2), omit paragraph (u);

• (b) in subsection (3)(f), after “provide that” insert “ rates or ”;

• (c) omit subsection (7) (but this repeal does not affect any order already made under that subsection).

• (3) In Schedule 35 to FA 2014 (promoters of tax avoidance schemes), in paragraph 11 (interest on penalties)—

• (a) in sub-paragraph (1), for the words from “at the rate” to the end substitute “ in accordance with section 101 of FA 2009 ”;

• (b) omit sub-paragraph (2).

• (4) In the Taxes (Interest Rate) Regulations 1989 (S.I. 1989/1297)—

• (a) in regulation 3(1), after paragraph (e) insert—

(f) section 14(4) of the Ports Act 1991 (for any period of time beginning on or after the day on which the Finance Act 2019 is passed), and (g) paragraph 8 of Schedule 1 to the Employment Act 2002 (for any period of time beginning on or after the day on which the Finance Act 2019 is passed),

;

• (b) after regulation 5 insert—

(5A) For the purposes of section 79 of the Finance Act 2015, the rate applicable under section 178 of the Finance Act 1989 is— (a) 3% per annum for the period beginning with 1 October 2015 and ending with 5 April 2017, and (b) 2.5% per annum thereafter.

• (5) Regulations under section 178(1) of FA 1989 may revoke or amend the provision made in the Taxes (Interest Rate) Regulations 1989 by subsection (4).

• (6) Section 101 of FA 2009 is to be regarded as having come into force on 6 May 2014 for the purposes of—

• (a) penalties under paragraphs 6B to 6D of Schedule 55 to FA 2009, in the case of returns falling within item 4 in the Table in paragraph 1 of that Schedule (real time information for PAYE);

• (b) penalties under paragraphs 5 to 8 of Schedule 56 to FA 2009, in the case of payments of tax falling within item 2 or 4 of the Table in paragraph 1 of that Schedule (PAYE and CIS amounts);

• (c) a penalty under section 208 or 226 of FA 2014 (penalties relating to follower notices, accelerated payment notices and partner payment notices), where the penalty relates to income tax payable under PAYE regulations.

PART 5 — Miscellaneous and final

Regulatory capital securities

Regulatory capital securities and hybrid capital instruments

89

Schedule 20—

• (a) makes provision revoking the previous rules that applied in relation to regulatory capital securities, and

• (b) makes new provision in relation to hybrid capital instruments.

EU withdrawal

Minor amendments in consequence of EU withdrawal

90

• (1) The Treasury may by regulations make such provision as they consider appropriate—

• (a) for the purpose of maintaining the effect of any relevant tax legislation on the withdrawal of the United Kingdom from the EU (and, accordingly, on the United Kingdom ceasing to be an EEA state);

• (b) for the purposes of any relevant tax, in connection with any provision made by regulations under section 8 of the European Union (Withdrawal) Act 2018 (power to remedy deficiencies);

• (c) in connection with any reference in relevant tax legislation to euros;

• (d) amending paragraph 2(4) of Schedule 5 to FA 1997 (indirect taxes: overpayments etc) for the purposes of removing the reference to EU legislation;

• (e) amending section 173 of FA 2006 (international tax enforcement) to permit the disclosure of information to the Commissioners by other public authorities and by the Commissioners (subject to conditions about its use) to persons outside the United Kingdom.

• (2) The regulations may—

• (a) amend any enactment;

• (b) contain incidental, transitional or saving provision;

• (c) make different provision for different purposes.

• (3) Where—

• (a) regulations under this section are made after exit day, and

• (b) a provision of the regulations is made by virtue of any of paragraphs (a) to (d) of subsection (1),

the regulations may provide that the provision has effect from exit day.

• (4) Regulations under this section are to be made by statutory instrument.

• (5) A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.

• (6) In this section—

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

• “enactment” includes an enactment comprised in subordinate legislation;

• “relevant tax” means any tax (including stamp duty) except—value added tax,any duty of customs, orany excise duty under the Alcoholic Liquor Duties Act 1979, the Hydrocarbon Oil Duties Act 1979 or the Tobacco Products Duty Act 1979;

• “relevant tax legislation” means any enactment relating to a relevant tax.

• (7) The provisions of this section only come into force if—

• (a) a negotiated withdrawal agreement and a framework for the future relationship have been approved by a resolution of the House of Commons on a motion moved by a Minister of the Crown for the purposes of section 13(1)(b) of the European Union (Withdrawal) Act 2018, or

• (b) the Prime Minister has notified the President of the European Council, in accordance with Article 50(3) of the Treaty on European Union, of the United Kingdom's request to extend the period in which the Treaties shall still apply to the United Kingdom, or

• (c) leaving the European Union without a withdrawal agreement and a framework for the future relationship has been approved by a resolution of the House of Commons on a motion moved by a Minister of the Crown.

Preparatory expenditure

Emissions reduction trading scheme: preparatory expenditure

91

• (1) The Secretary of State may incur expenditure in preparing for the introduction of a scheme for charges to be imposed for the allocation of emissions allowances.

• (2) In subsection (1), “emissions allowance” means an allowance under paragraph 5 of Schedule 2 to the Climate Change Act 2008 relating to a trading scheme dealt with under Part 1 of that Schedule (schemes limiting activities relating to emissions of greenhouse gas).

Reviews

Impact analyses of the anti-avoidance provisions of this Act

92

• (1) The Chancellor of the Exchequer must review the impact of—

• (a) section 15 and Schedule 3,

• (b) section 16 and Schedule 4,

• (c) sections 19 and 20,

• (d) section 22 and Schedule 7,

• (e) section 23 and Schedule 8,

• (f) sections 47 and 48, and

• (g) section 84,

of this Act in accordance with this section and lay a report of that review before the House of Commons within six months of the passing of this Act.

• (2) A review under this section must consider the impact of those provisions on—

• (a) child poverty,

• (b) households at different levels of income,

• (c) people with protected characteristics (within the meaning of the Equality Act 2010), and

• (d) different parts of the United Kingdom and different regions of England.

• (3) In this section—

• “parts of the United Kingdom” means—England,Scotland,Wales, andNorthern Ireland;

• “regions of England” has the same meaning as that used by the Office for National Statistics.

Review of effectiveness of provisions on tax avoidance

93

• (1) The Chancellor of the Exchequer must review the effectiveness of the provisions of this Act relating to tax avoidance and lay a report of that review before the House of Commons within six months of the passing of this Act.

• (2) In this section, “the provisions of this Act relating to tax avoidance” means—

• (a) section 15 and Schedule 3,

• (b) section 16 and Schedule 4,

• (c) sections 19 and 20,

• (d) section 22 and Schedule 7,

• (e) section 23 and Schedule 8,

• (f) sections 47 and 48,

• (g) section 84.

• (3) A review under this section must consider in particular—

• (a) the effects of those provisions in reducing tax avoidance and evasion,

• (b) the effect of those provisions in inducing new tax avoidance measures unanticipated by the Act, and

• (c) estimates of the efficacy of the provisions in reducing the tax gap in each tax year from 2018-19 to 2028-29.

Review of public health effects of gaming provisions

94

• (1) The Chancellor of the Exchequer must review the public health effects of the provisions of section 62 of and Schedule 19 to this Act and lay a report of that review before the House of Commons within six months of the passing of this Act.

• (2) A review under this section must consider—

• (a) the effects of those provisions in reducing the negative public health effects of gambling, and

• (b) the implications for the public finances of the public health effects of—

• (i) those provisions,

• (ii) the operation of the law relating to remote gaming duty and gaming duty if those provisions were not given effect.

Review of changes made by sections 80 and 81

95

• (1) The Chancellor of the Exchequer must review the effects of the changes made by sections 80 and 81 to TMA 1970 and IHTA 1984, and lay a report on that review before the House of Commons not later than 30 March 2019.

• (2) The review under this section must include a comparison of the time limit on proceedings for the recovery of lost tax that involves an offshore matter with other time limits on proceedings for the recovery of lost tax, including, but not limited to, those provided for by Schedules 11 and 12 to the F(No. 2)A 2017.

• (3) The review under this section must also consider the extent to which provisions equivalent to section 36A(7)(b) of TMA 1970 (relating to reasonable expectations) apply to the application of other time limits.

Other

Interpretation

96

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

Short title

97

This Act may be cited as the Finance Act 2019.

SCHEDULE 1

PART 1 — Extending cases in which non-residents are charged to tax etc

1

TCGA 1992 is amended as follows.

2

For the sections contained in Part 1 substitute—