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Finance Act 2019

Type Public General Act
Publication 2019-02-12
Last updated 2026-04-20
State In force
Department Statute Law Database
Source legislation.gov.uk
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(169SB) This Chapter makes provision about an individual claiming entrepreneurs' relief in certain cases where relief would otherwise become unavailable because of a company ceasing to be the individual's personal company. (169SC) (1) If the following conditions are met, an individual may elect for this section to have effect. (2) The first condition is that, as a result of a relevant share issue, the company ceases to be the individual's personal company. (3) The second condition is that— (a) if, immediately before the relevant share issue, the individual had made a disposal at their relevant value of all assets consisting of shares in or securities of the company, the disposal would have been a material disposal of business assets, and (b) if a claim for entrepreneurs' relief had been made in respect of that disposal, a chargeable gain would have been treated by section 169N(2) as accruing to the individual. (4) Where this section has effect, the individual is to be treated for the purposes of this Act— (a) as having made a disposal immediately before the relevant share issue of all assets consisting of shares in or securities of the company, and (b) immediately after that event, as having reacquired those assets, at their relevant value. (5) In this section— - “material disposal of business assets” and “personal company” have the same meanings as in Chapter 3 (see section 169S), - “relevant share issue” means an issue of shares by the company where— 1. the shares are issued by the company for consideration consisting wholly of cash, and 2. the shares are subscribed, and issued, for genuine commercial reasons and not as part of arrangements the main purpose, or one of the main purposes, of which is to secure a tax advantage to any person, and - “relevant value” means— 1. in relation to an asset consisting of shares, an amount equal to the consideration that would be apportioned to the asset if, immediately before the relevant share issue, the whole of the issued share capital of the company were sold for a consideration equal to its market value at that time, or 2. in relation to any other asset, its market value at the time of the relevant share issue. (6) For the purposes of the definition of “relevant share issue” in subsection (5)— - “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable), and - “tax advantage” means— 1. relief or increased relief from tax, 2. repayment or increased repayment of tax, 3. the avoidance or reduction of a charge to tax or an assessment to tax, or 4. the avoidance of a possible assessment to tax, (7) In this Chapter— (a) references to “the notional disposal” are references to the disposal mentioned in subsection (4)(a), (b) references to “the notional gain” are references to the chargeable gain mentioned in subsection (3)(b), and (c) references to shares in or securities of a company include references to interests in such shares or securities. (169SD) (1) An individual who makes an election under section 169SC may also elect that, for the purposes of this Act— (a) no chargeable gain or allowable loss is to be treated as accruing to the individual on the notional disposal, but (b) a chargeable gain calculated in accordance with this section is to be treated as accruing to the individual on any subsequent disposal by the individual of one or more assets consisting of shares in or securities of the company (in addition to any gain or loss that actually accrues on that disposal). (2) The chargeable gain treated as accruing to the individual on a subsequent disposal is the amount resulting from the following steps— - Step 1 Attribute the notional gain to each of the classes of shares in or securities of the company which are the subject of the notional disposal. The attribution must be made, in relation to each class, by reference to the proportion that— 1. the relevant gains (see section 169N(5)) accruing on the notional disposal in respect of shares or securities within each class bears to 2. the total amount of relevant gains accruing on the notional disposal. - Step 2 Apportion the amount attributed to each class under Step 1 to the shares or securities of that class which are the subject of the subsequent disposal. The apportionment must be by reference to the proportion that— 1. the nominal value of the shares or securities of that class which are the subject of the subsequent disposal bears to 2. the nominal value of shares or securities of that class which are the subject of the notional disposal. - Step 3 The amount resulting from these steps is— 1. the total of the amounts apportioned to shares or securities under Step 2, but 2. excluding, in relation to each class of shares or securities, so much of those amounts as would, together with any chargeable gains treated by this section as accruing on previous disposals of shares or securities of that class, exceed the amount attributed to that class under Step 1. (3) If the subsequent disposal is a disposal by virtue of section 122, the nominal value of shares of a particular class which are the subject of that disposal is to be treated for the purposes of Step 2 of subsection (2) as being equal to the nominal value of shares of that class as are the subject of the notional disposal. (169SE) (1) This section has effect in any case where a transaction occurs to which section 116 (reorganisations, conversions and reconstructions) applies. (2) If sections 116(10)(b) and 169SD(1)(b) have effect in relation to a subsequent disposal of the new asset— (a) there must be calculated the chargeable gain that would have been treated by section 169SD(1)(b) as accruing to the individual if, at the time of the relevant transaction, the old asset had been disposed of immediately before that transaction, (b) the whole or a corresponding part of the chargeable gain mentioned in paragraph (a) is to be treated as accruing on the subsequent disposal of the whole or part of the new asset (in addition to any gain or loss that actually accrues on that disposal and any chargeable gain treated by section 116(10)(b) as accruing on that disposal), and (c) on that subsequent disposal, section 115 (exemptions for gilt-edged securities and qualifying corporate bonds) has effect only in relation to any gain that actually accrues and not in relation to any gain which is treated as accruing by virtue of paragraph (b). (3) In subsection (2) “the new asset”, “the old asset” and “the relevant transaction” have the same meanings as in section 116. (169SF) (1) This section has effect in any case where a transaction occurs to which sections 127 to 130 (treatment of share capital following a reorganisation) apply by virtue of any provision of Chapter 2 of Part 4. (2) If a gain is treated by section 169SD(1)(b) as accruing on a subsequent disposal of the new holding and it is necessary to apportion the gain between shares or securities forming part of that new holding, the apportionment must be made in the same proportions as those in which the costs of acquisition of the original shares fall to be apportioned under the provisions of that Chapter. (3) If subsection (3) of section 128 (consideration given or received by holder) has effect in relation to an individual, the individual is treated for the purposes of section 169SD as making the disposal of the interest in the original shares mentioned in that subsection. (4) In this section “the new holding” and “the original shares” have the same meanings as in sections 127 to 130 (see section 126). (169SG) (1) An election under section 169SC or 169SD is irrevocable. (2) An election under section 169SC must be made on or before the first anniversary of the 31 January following the tax year in which the notional disposal is made (“the relevant tax year”). (3) An election under section 169SD may not be made more than 4 years after the end of the relevant tax year. (4) If— (a) an individual makes an election under both sections 169SC and 169SD, and (b) a tax return under the Management Act would not otherwise be required for the relevant tax year, the individual may make the elections by giving notice on or before the first anniversary of the 31 January following the relevant tax year. (169SH) (1) Where, as a result of an election under section 169SD, a chargeable gain is to be treated as accruing on a subsequent disposal, the following rules have effect. (2) The individual making the subsequent disposal must make a claim for entrepreneurs' relief on or before the first anniversary of the 31 January following the first tax year in which, as a result of the election, the chargeable gain is to be treated as accruing. (3) The chargeable gain is to be treated for the purposes of section 169N as the amount resulting from a calculation under subsection (1) of that carried out when that chargeable gain accrues and because of the claim mentioned in subsection (2). (4) If the chargeable gain is a part only of the notional gain, each chargeable gain that subsequently accrues is to be treated for the purposes of section 169N as the amount resulting from a calculation under subsection (1) of that section carried out when that chargeable gain arises and because of the claim mentioned in subsection (2). (5) In relation to the claim for entrepreneurs' relief in respect of the chargeable gain, the company is to be treated for the purposes of condition A in section 169I(6) as if it were, throughout the period of 2 years ending with the date of the subsequent disposal, the individual's personal company.

Commencement

4
  • (1) Subject as follows, the amendments made by paragraph 1 of this Schedule have effect in relation to disposals on or after 6 April 2019.
  • (2) The amendments made by paragraph 1(2)(b), (3)(b) and (4) do not have effect in relation to a disposal where the time at which the business ceases to be carried on is before 29 October 2018.
  • (3) The amendments made by paragraph 1(2)(c), (3)(a) and (6)(b) do not have effect in relation to a disposal where the date on which the company—
  • (a) ceases to be a trading company without continuing to be or becoming a member of a trading group, or
  • (b) ceases to be a member of a trading group without continuing to be a trading company,

is before 29 October 2018.

  • (4) The amendments made by paragraph 2 of this Schedule have effect in relation to disposals on or after 29 October 2018 but, in the case of a disposal made before 21 December 2018, section 169LA(1ZA)(a) of TCGA 1992 has effect as if the reference to section 169S(3)(c)(ii) of that Act were omitted.
  • (5) The amendment made by paragraph 3 of this Schedule has effect in relation to relevant share issues (within the meaning given by section 169SC(5) of TCGA 1992) which take place on or after 6 April 2019.

SCHEDULE 17

1

VATA 1994 is amended as follows.

2

In section 51B—

  • (a) in the heading, at the end insert “ issued before 1 January 2019 ”;
  • (b) the existing text becomes subsection (1);
  • (c) after that subsection insert—

(2) Schedule 10A does not have effect with respect to a face value voucher (within the meaning of that Schedule) issued on or after 1 January 2019.

3

After section 51B insert—

(51C) (1) Schedule 10B makes provision about the VAT treatment of vouchers. (2) Schedule 10B has effect with respect to a voucher (within the meaning of that Schedule) issued on or after 1 January 2019. (51D) (1) The issue of a postage stamp, and any subsequent transfer of it, is a supply of services for the purposes of this Act. (2) The consideration for the issue or subsequent transfer of a postage stamp is to be disregarded for the purposes of this Act, except to the extent (if any) that it exceeds the face value of the stamp. (3) The “face value” of the stamp is the amount stated on or recorded in the stamp or the terms and conditions governing its use. (4) This section has effect with respect to postage stamps issued on or after 1 January 2019.

4

In the heading to Schedule 10A, at the end insert “ issued before 1 January 2019 ”.

5

After Schedule 10A insert—

SCHEDULE 10B (1) (1) In this Schedule “voucher” means an instrument (in physical or electronic form) in relation to which the following conditions are met. (2) The first condition is that one or more persons are under an obligation to accept the instrument as consideration for the provision of goods or services. (3) The second condition is that either or both of— (a) the goods and services for the provision of which the instrument may be accepted as consideration, and (b) the persons who are under the obligation to accept the instrument as consideration for the provision of goods or services, are limited and are stated on or recorded in the instrument or the terms and conditions governing the use of the instrument. (4) The third condition is that the instrument is transferable by gift (whether or not it is transferable for consideration). (5) The following are not vouchers— (a) an instrument entitling a person to a reduction in the consideration for the provision of goods or services; (b) an instrument functioning as a ticket, for example for travel or for admission to a venue or event; (c) postage stamps. (2) (1) This paragraph gives the meaning of other expressions used in this Schedule. (2) “Relevant goods or services”, in relation to a voucher, are any goods or services for the provision of which the voucher may be accepted as consideration. (3) References in this Schedule to the transfer of a voucher do not include the voucher being offered and accepted as consideration for the provision of relevant goods or services. (4) References in this Schedule to a voucher being offered or accepted as consideration for the provision of relevant goods or services include references to the voucher being offered or accepted as part consideration for the provision of relevant goods or services. (3) (1) The issue, and any subsequent transfer, of a voucher is to be treated for the purposes of this Act as a supply of relevant goods or services. (2) References in this Schedule to the “paragraph 3 supply”, in relation to the issue or transfer of a voucher, are to the supply of relevant goods or services treated by this paragraph as having been made on the issue or transfer of the voucher. (4) (1) A voucher is a single purpose voucher if, at the time it is issued, the following are known— (a) the place of supply of the relevant goods or services, and (b) that any supply of relevant goods or services falls into a single supply category (and what that supply category is). (2) The supply categories are— (a) supplies chargeable at the rate in force under section 2(1) (standard rate), (b) supplies chargeable at the rate in force under section 29A (reduced rate), (c) zero-rated supplies, and (d) exempt supplies and other supplies that are not taxable supplies. (3) For the purposes of this paragraph, assume that the supply of relevant goods or services is the provision of relevant goods or services for which the voucher may be accepted as consideration (rather than the supply of relevant goods or services treated as made on the issue or transfer of the voucher). (5) (1) This paragraph applies where a single purpose voucher is accepted as consideration for the provision of relevant goods or services. (2) The provision of the relevant goods or services is not a supply of goods or services for the purposes of this Act. (3) But where the person who provides the relevant goods or services (the “provider”) is not the person who issued the voucher (the “issuer”), for the purposes of this Act the provider is to be treated as having made a supply of those goods or services to the issuer. (6) A voucher is a multi-purpose voucher if it is not a single purpose voucher. (7) (1) Any consideration for the issue or subsequent transfer of a multi-purpose voucher is to be disregarded for the purposes of this Act. (2) The paragraph 3 supply made on the issue or subsequent transfer of a multi-purpose voucher is to be treated as not being a supply within section 26(2). (8) (1) Where a multi-purpose voucher is accepted as consideration for the provision of relevant goods or services, for the purposes of this Act— (a) the provision of the relevant goods or services is to be treated as a supply, and (b) the value of the supply treated as having been made by paragraph (a) is determined as follows. (2) If the consideration for the most recent transfer of the voucher for consideration is known to the supplier, the value of the supply is such amount as, with the addition of the VAT chargeable on the supply, is equal to that consideration. (3) If the consideration for the most recent transfer of the voucher for consideration is not known to the supplier, the value of the supply is such amount as, with the addition of the VAT chargeable on the supply, is equal to the face value of the voucher. (4) The “face value” of a voucher is the monetary value stated on or recorded in— (a) the voucher, or (b) the terms and conditions governing the use of the voucher. (9) (1) This paragraph applies where— (a) a voucher is issued or transferred by an agent who acts in their own name, and (b) the paragraph 3 supply is a supply of services to which section 47(3) would apply (apart from this paragraph). (2) Section 47(3) does not apply. (3) The paragraph 3 supply is treated as both a supply to the agent and a supply by the agent. (10) Nothing in this Schedule affects the application of this Act to any services provided, by a person who issues or transfers a voucher, in addition to the issue or transfer of the voucher. (11) (1) This paragraph applies where, as part of a composite transaction— (a) goods or services are supplied to a person, and (b) a voucher is issued or transferred to that person. (2) If the total consideration for the transaction is not different, or not significantly different, from what it would be if the voucher were not issued or transferred, the paragraph 3 supply is to be treated as being made for no consideration.

6

In regulation 38ZA(2) of the Value Added Tax Regulations 1995 (S.I. 1995/2518), in the definition of “cash refund”, after “Act” insert “ or a voucher falling within Schedule 10B to the Act ”.

SCHEDULE 18

PART 1 — Eligibility of individuals and partnerships

1
  • (1) Section 43A of VATA 1994 (groups: eligibility) is amended as follows.
  • (2) In subsection (1), in the opening words—
  • (a) for “bodies corporate” substitute “ UK bodies corporate ”;
  • (b) omit “each is established or has a fixed establishment in the United Kingdom and”.
  • (3) Omit subsections (2) and (3).
  • (4) At the end insert—

(4) An individual carrying on a business and one or more UK bodies corporate are eligible to be treated as members of a group if the individual— (a) controls the UK body corporate or all of the UK bodies corporate, and (b) is established, or has a fixed establishment, in the United Kingdom in relation to the business. (5) Two or more relevant persons carrying on a business in partnership (“the partnership”) and one or more UK bodies corporate are eligible to be treated as members of a group if the partnership— (a) controls the UK body corporate or all of the UK bodies corporate, and (b) is established, or has a fixed establishment, in the United Kingdom in relation to the business. (6) In this section— (a) “UK body corporate” means a body corporate which is established or has a fixed establishment in the United Kingdom; (b) “relevant person” means an individual, a body corporate or a Scottish partnership. (7) Section 43AZA contains provision for determining for the purposes of this section whether a body corporate, individual or partnership controls a UK body corporate.

2

In that Act, after section 43A insert—

(43AZA) (1) This section applies for the purposes of section 43A (and expressions used in this section have the same meaning as in that section). (2) A body corporate (“X”) controls a UK body corporate if— (a) X is empowered by statute to control the UK body corporate's activities, or (b) X is the UK body corporate's holding company. (3) An individual (“Y”) controls a UK body corporate if Y would, were Y a company, be the UK body corporate's holding company. (4) Two or more relevant persons carrying on a business in partnership (“the partnership”) control a UK body corporate if the partnership would, were it a company, be the UK body corporate's holding company. (5) In this section “holding company” has the meaning given by section 1159 of, and Schedule 6 to, the Companies Act 2006.

PART 2 — Consequential amendments

VATA 1994

3

VATA 1994 is amended as follows.

4

In section 18A (fiscal warehousing), in subsection (9), for “body corporate which” substitute “ person who ”.

5
  • (1) Section 43 (groups of companies) is amended in accordance with this paragraph.
  • (2) In subsection (1), for “bodies corporate” substitute “ persons ”.
  • (3) In subsection (1AA)—
  • (a) in paragraph (c)(ii), for “body which” substitute “ person who ”;
  • (b) in the closing words, for “body” substitute “ person ”.
6

In section 43AA (power to alter eligibility for grouping), in subsection (1), for “section 43A” substitute “ sections 43A and 43AZA ”.

7
  • (1) Section 43B (groups: applications) is amended in accordance with this paragraph.
  • (2) In subsection (1), for “bodies corporate, which” substitute “ persons, who ”.
  • (3) In subsection (2)—
  • (a) in the opening words, for “bodies corporate” substitute “ persons ”;
  • (b) in paragraph (a), for “body corporate, which” substitute “ person, who ”;
  • (c) in paragraph (b), for “body corporate” substitute “ person ”;
  • (d) in paragraph (d), for “bodies corporate” substitute “ persons ”;
  • (4) In subsection (3)—
  • (a) in the opening words, for “bodies corporate” substitute “ persons ”;
  • (b) in paragraph (b), for “bodies” substitute “ persons ”;
  • (5) In subsection (5)—
  • (a) in paragraph (a), for “bodies corporate” substitute “ persons ”;
  • (b) in paragraph (b), for “body corporate” substitute “ person ”.
8
  • (1) Section 43C (groups: termination of membership) is amended in accordance with this paragraph.
  • (2) In subsection (1), for “body corporate” substitute “ person ”.
  • (3) In subsection (3)(a) and (b) and in the closing words, for “body” substitute “ person ”.
  • (4) In subsection (4)(a) and (b), for “body” substitute “ person ”.
9
  • (1) Section 43D (groups: duplication) is amended in accordance with this paragraph.
  • (2) In subsection (1), for “body corporate” substitute “ person ”.
  • (3) In subsection (2), for “body which” substitute “ person who ”.
  • (4) In subsection (3)—
  • (a) in paragraph (b), for “bodies” substitute “ persons ”;
  • (b) in the closing words, for “body or bodies” substitute “ person or persons ”.
  • (5) In subsection (4)(b), for “body” substitute “ person ”.
  • (6) In subsection (5), for “body” substitute “ person ”.
10

In section 44 (supplies to groups), in subsection (1)(a) and (b), for “body corporate” substitute “ person ”.

11

In section 53 (tour operators), in subsection (2)(d), for “body corporate” substitute “ person ”.

12

In section 97 (orders, rules and regulations), in subsection (4)(ca), for “bodies” substitute “ persons ”.

13
  • (1) Schedule 9 (exemptions) is amended in accordance with this paragraph.
  • (2) In Group 14, in Note (13)—
  • (a) in the opening words, for “body corporate” substitute “ person ”;
  • (b) in paragraph (a) for “body” substitute “ person ”;
  • (c) in paragraph (b)—
  • (i) for “body corporate, or of any other body corporate which”, substitute “ person, or of any other person who ”;
  • (ii) for “body, at a time when that body” substitute “ person, at a time when that person ”.
  • (d) in paragraph (c), for “body corporate” substitute “ person ”.
  • (3) In that Group, in Note (14), for “body corporate's” substitute “person's”.
14
  • (1) Schedule 9A (anti-avoidance provisions: groups) is amended in accordance with this paragraph.
  • (2) In paragraph 1(2), for “body corporate” substitute “ person ”.
  • (3) In paragraph 2—
  • (a) in sub-paragraph (1)(a), for “body corporate” substitute “ person ”;
  • (b) in sub-paragraph (2), for “body corporate's” substitute “person's”.
  • (4) In paragraph 3—
  • (a) in sub-paragraph (1)(a) and (b), for “body corporate” substitute “ person ”;
  • (b) in sub-paragraph (3), for “body corporate” (in both places) substitute “ person ”;
  • (c) in sub-paragraph (5), for “body corporate which” substitute “ person who ”.
  • (5) In paragraph 5—
  • (a) in sub-paragraph (1)(b)—
  • (i) for “body corporate which” substitute “ person who ”;
  • (ii) for “that person” substitute “ the person mentioned in paragraph (a) ”;
  • (b) in sub-paragraph (2)—
  • (i) for “body corporate (“the relevant body”)” substitute “ person (“the relevant person”) ”;
  • (ii) for “that body or to any body corporate which” substitute “ that person or to any person who ”;
  • (iii) for “the relevant body” substitute “ the relevant person ”.
  • (6) In paragraph 6—
  • (a) in sub-paragraph (7)(b), for “body corporate that” substitute “ person who ”;
  • (b) in sub-paragraph (11)(b)—
  • (i) for “body corporate which” substitute “ person who ”;
  • (ii) for “that person” substitute “ the person mentioned in paragraph (a) ”;
  • (c) in sub-paragraph (11)(c), for “body corporate which” substitute “ person who ”.
15
  • (1) Schedule 10 (buildings and land) is amended in accordance with this paragraph.
  • (2) In paragraph 3—
  • (a) in sub-paragraph (1), for “body corporate” substitute “ person ”;
  • (b) in sub-paragraph (2)—
  • (i) in the opening words (in both places) and paragraph (c), for “body corporate” substitute “ person ”;
  • (ii) in paragraph (c), for “that body” substitute “ that person ”;
  • (c) in sub-paragraph (3), for “body corporate” substitute “ person (“P”) ”;
  • (d) in sub-paragraph (4)—
  • (i) in the opening words, for “The body corporate” substitute “ P ”;
  • (ii) in paragraphs (a), (aa), (b) and (c), for “the body corporate” substitute “ P ”;
  • (e) in sub-paragraph (5)—
  • (i) in the opening words, for “The body corporate” substitute “ P ” and for “the body corporate” substitute “ P ”;
  • (ii) in the closing words, for “the body corporate” substitute “ P ”.
  • (3) In paragraph 4—
  • (a) in sub-paragraph (1), for “body corporate which” substitute “ person (“P”) who ”;
  • (b) in sub-paragraph (2), for “the body corporate, it” substitute “ P, P ”;
  • (c) in sub-paragraph (3)(b), for “the body corporate” substitute “ P ”;
  • (d) in sub-paragraph (3)(c)—
  • (i) for “the body corporate” substitute “ P ”;
  • (ii) for “it” substitute “ P ”;
  • (e) in sub-paragraph (4)(b)—
  • (i) for “the body corporate” substitute “ P ”;
  • (ii) for “it” substitute “ P ”;
  • (f) in sub-paragraph (5), in the opening words—
  • (i) for “the body corporate” substitute “ P ”;
  • (ii) for “it” substitute “ P ”;
  • (g) in sub-paragraph (6)(a)—
  • (i) for “the body corporate” substitute “ P ”;
  • (ii) for “its” substitute “P's”;
  • (h) in sub-paragraph (6)(b), for “the body corporate” substitute “ P ”;
  • (i) in sub-paragraph (7), for “the body corporate” substitute “ P ”.
  • (4) In paragraph 21—
  • (a) in sub-paragraph (1)(b)—
  • (i) for “body corporate” substitute “ person ”;
  • (ii) for “the body” substitute “ the person ”;
  • (b) in sub-paragraph (3)(a), for “body corporate which” substitute “ person who ”;
  • (c) in sub-paragraph (9)(b), for “body corporate which” substitute “ person who ”;
  • (d) in sub-paragraph (11)(b), for “body corporate which” substitute “ person who ”;
  • (e) in sub-paragraph (12), in the definition of “relevant group member”—
  • (i) after “any person” insert “ (“P”) ”;
  • (ii) for “body corporate which” substitute “ person who ”;
  • (iii) for “that person” substitute “ P ”.
  • (5) In paragraph 35(3), for “body corporate” substitute “ person ”.

SCHEDULE 19

Accounting periods

1
  • (1) Section 11 of FA 1997 (rate of gaming duty) is amended as follows.
  • (2) In subsection (2), for “subsection (3)” substitute “ subsections (3), (4A) and (4B) ”.
  • (3) After subsection (4) insert—

(4A) Where the gaming duty provisions of this Act have effect in relation to any premises as if accounting periods were periods longer or shorter than six months (“alternative accounting periods”) as a result of— (a) a direction under paragraph 9(1A) of Schedule 1, or (b) a direction or agreement under paragraph 9(1C) of Schedule 1, then for the purposes of determining the amount of gaming duty which is to be charged on those premises for that period, the Table in subsection (2) is modified in accordance with subsection (4B). (4B) Each amount specified in column 1 of the Table is multiplied by— $$A B$where—A is the number of days in the alternative accounting period directed or agreed, andB is the number of days in the period that would have been the accounting period in the absence of any direction or agreement (or where the alternative accounting period spans more than one such period, the first of those periods).$

2
  • (1) Paragraph 9 of Schedule 1 to FA 1997 (accounting periods) is amended as follows.
  • (2) For sub-paragraph (1) substitute—

(1) Where the Commissioners and every relevant person so agree, the gaming duty provisions of this Act shall have effect in relation to any premises as if accounting periods for the purposes of those provisions were the periods specified in the agreement, which may be— (a) periods of six months (beginning on any date); (b) periods (beginning on any date) which are longer or shorter than six months, but which must be the approximate equivalent of periods of six months in weeks. (1A) If the Commissioners have reason to believe that the liability in relation to any premises may not be discharged as it falls due from time to time, the Commissioners may direct that periods shorter than six months are to be treated as accounting periods for the purposes of the gaming duty provisions of this Act. (1B) The Commissioners may direct in relation to any premises that periods beginning on dates other than 1st April and 1st October are to be treated as accounting periods for the purposes of the gaming duty provisions of this Act. (1C) The Commissioners may by direction or by agreement with every relevant person make transitional arrangements in relation to any premises for periods (whether of six months or otherwise) to be treated as accounting periods for the purposes of the gaming duty provisions of this Act where— (a) those premises cease to be specified in an entry on the gaming register for any person, or (b) an agreement under sub-paragraph (1) or a direction under sub-paragraph (1A) or (1B) begins or ceases to have effect. (1D) The Commissioners must not enter into an agreement under sub-paragraph (1) or give a direction under sub-paragraph (1B) unless they are satisfied that any transitional arrangements which are appropriate for the protection of the revenue have been agreed or directed. (1E) Any direction under this paragraph continues to have effect until it is withdrawn by the Commissioners (unless otherwise specified in the direction). (1F) Withdrawal of a direction under this paragraph in relation to any premises does not prevent the giving of further directions in relation to those premises.

.

  • (3) In sub-paragraph (2), for “sub-paragraph (1) above” substitute “ this paragraph ”.
  • (4) Omit sub-paragraphs (3) and (4).
  • (5) For sub-paragraph (5) substitute—

(5) The decisions mentioned in sub-paragraph (6) are to be treated as if they were listed in subsection (2) of section 13A of FA 1994 (customs and excise reviews and appeals: meaning of “relevant decision”) and accordingly are to be treated— (a) as if they were relevant decisions for the purposes mentioned in subsection (1) of that section, and (b) as if they were ancillary matters for the purposes of section 16 FA 1994 (appeals to a tribunal). (6) The decisions are— (a) a decision of the Commissioners to refuse a request for an agreement under sub-paragraph (1) or (1C), or to refuse a request for such an agreement on particular terms, (b) a decision of the Commissioners to give a direction under sub-paragraph (1A), (1B) or (1C), or to give such a direction in particular terms, or (c) a decision of the Commissioners not to give a direction under sub-paragraph (1A), (1B) or (1C).

3

In paragraph 11(2) of Schedule 1 to FA 1997 (regulations), after “of this Act” insert “ or paragraph 9 of this Schedule ”.

Carrying forward of losses

4

In section 11 of FA 1997, for subsection (10) substitute—

(10) In subsection (8) above the banker's profits from any gaming are— (a) the value, in money or money's worth, of the stakes staked with the banker in any such gaming, less (b) the value of the prizes provided by the banker to those taking part in such gaming otherwise than on behalf of a provider of the premises. (10ZA) Where the gross gaming yield from any premises in an accounting period is a negative amount (“amount X”)— (a) the gross gaming yield for those premises in that accounting period is treated as nil, and (b) amount X may be carried forward in reduction of the gross gaming yield for those premises for one or more later accounting periods.

Removal of obligation to make payments on account

5

In section 12 of FA 1997 (liability to pay gaming duty) omit subsections (4) and (6).

6
  • (1) The Gaming Duty Regulations 1997 (S.I. 1997/2196) are amended as follows.
  • (2) In regulation 2 (interpretation) omit the definition of “quarter”.
  • (3) Omit regulations 3 to 6 (Part II: payments on account) and the heading before them.

Commencement

7

The amendments made by this Schedule come into force on 1 October 2019.

8
  • (1) Where there is an agreement under paragraph 9(1) of Schedule 1 to FA 1997 and as a result the period to be treated as the accounting period for any premises is a period beginning on or before 30 September 2019 and ending after 30 September 2019 (a “paragraph 9(1) accounting period”), sub-paragraph (2) applies.
  • (2) The period to be treated as the accounting period for those premises is instead a period (a “transitional accounting period”) beginning on the date specified in the agreement and ending on 30 September 2019.
  • (3) For the purposes of determining the amount of gaming duty which is to be charged on those premises for the transitional accounting period, the Table in section 11(2) of FA 1997 is modified in accordance with sub-paragraph (4).
  • (4) Each amount specified in column 1 of the Table is multiplied by—

$$A B$where—A is the number of days in the transitional accounting period, andB is the number of days in the paragraph 9(1) accounting period.$

SCHEDULE 20

PART 1 — Revocation of special rules for regulatory capital securities

1
  • (1) The Taxation of Regulatory Capital Securities Regulations 2013 (S.I. 2013/3209) are revoked.
  • (2) In consequence of the revocation made by sub-paragraph (1), the Taxation of Regulatory Capital Securities (Amendment) Regulations 2015 (S.I. 2015/2056) are revoked.

PART 2 — Corporation tax, income tax and capital gains tax

Distributions in respect of hybrid capital instruments

2

At the end of Chapter 12 of Part 5 of CTA 2009 insert—

(420A) (1) This section applies if a loan relationship is a hybrid capital instrument for an accounting period of the debtor. (2) The Corporation Tax Acts have effect in relation to any person in respect of times in the accounting period as if any qualifying amount payable in respect of the hybrid capital instrument were not a distribution. (3) An amount is a “qualifying amount” so far as it would not be regarded as a distribution if it is assumed that any provision made by the loan relationship under which the debtor is entitled to defer or cancel a payment of interest under the loan relationship had not been made. (4) This section also needs to be read together with section 1015(1A) of CTA 2010 (which prevents hybrid capital instruments from being “special securities” as a result of being equity notes).

3
  • (1) After section 475B of CTA 2009 insert—

(475C) (1) For the purposes of this Part, a loan relationship is a “hybrid capital instrument” for an accounting period of the debtor if— (a) the loan relationship makes provision under which the debtor is entitled to defer or cancel a payment of interest under the loan relationship, (b) the loan relationship has no other significant equity features, and (c) the debtor has made an election in respect of the loan relationship which has effect for the period. (2) For the purposes of this section a loan relationship “has no other significant equity features” if under the loan relationship— (a) there are neither voting rights in the debtor (ignoring insignificant voting rights in the debtor) nor a right to exercise a dominant influence over the debtor, (b) any provision for altering the amount of the debt is limited to write-down or conversion events in qualifying cases, and (c) any provision for the creditor to receive anything other than interest or repayment of the debt is limited to conversion events in qualifying cases. (3) For the purposes of subsection (2)(a)— (a) the loan relationship makes provision for “insignificant voting rights in the debtor” if (and only if) the voting rights of any creditor under the loan relationship are limited to one vote exercisable in relation to matters generally affecting the debtor without conferring any special advantage or other right on the creditor, and (b) “a right to exercise a dominant influence over the debtor” means a right to give directions with respect to the debtor's operating and financial policies with which it is obliged to comply (whether or not they are for the debtor's benefit). (4) For the purposes of subsection (2)(b) a “write-down event” means— (a) a permanent release of some or all of the debt, or (b) a reduction in the amount of the debt (including to nil) in a case where provision is made for the reduction to be temporary (whether on the meeting of conditions or the exercise of a right or otherwise). (5) For the purposes of subsection (2) a “conversion event” means— (a) the conversion of the loan relationship into shares forming part of the debtor's ordinary share capital, or (b) the conversion of the loan relationship into shares forming part of the ordinary share capital of a company (“C”) which, after the conversion, has control of the debtor or would have control of the debtor if C were taken to have all the rights and interests in the debtor of any company connected with C. ... (6) For the purposes of subsection (2), a loan relationship makes provision for a qualifying case if— (a) the provision applies only in the event that there is a material risk of the debtor becoming unable to pay its debts as they fall due, (b) the provision applies only in the event that the value of the debtor's assets is less than the amount of its liabilities, taking into account contingent and prospective liabilities, or (c) the provision is included in the loan relationship solely because of a need to comply with a regulatory or other legal requirement, and, in each case, the provision in question does not include a right exercisable by the creditor. (7) Provision is not to be regarded as failing to meet the condition in subsection (2)(b) merely because, in the case of a write-down event mentioned in subsection (4)(b), it provides for a subsequent increase in the amount of the debt (but not above the original amount). (8) An election under this section— (a) is irrevocable, (b) must be made before the end of the period of 6 months beginning with— (i) the day on which the company becomes a party to the loan relationship, or (ii) if (after becoming a party to the loan relationship) the loan relationship is amended so as to meet the conditions in subsection (1)(a) and (b), the first day of the company’s next accounting period, and (c) has effect for the accounting period in which the day mentioned in paragraph (b)(i) or (ii) falls and for subsequent accounting periods. (9) But an election under this section has no effect if— (a) the company is a party to the loan relationship directly or indirectly in consequence of, or otherwise in connection with, any arrangements (within the meaning of section 455C(2)), and (b) the main purpose of, or one of the main purposes of, the arrangements is to secure a tax advantage for the company or any other person.

  • (2) In a case where a company became a party to a loan relationship before 1 January 2019, section 475C(8)(b) of CTA 2009 has effect as if the election were required to be made on or before 30 September 2019.
4

In section 1015 of CTA 2010 (meaning of “special securities”) after subsection (1) insert—

(1A) But hybrid capital instruments (within the meaning of section 475C of CTA 2009) are not special securities by reason of meeting condition E.

Loan relationships: credits and debits to be brought into account

5

After section 320A of CTA 2009 insert—

(320B) (1) This section applies if in accordance with generally accepted accounting practice, an amount in respect of a hybrid capital instrument relating to any of the matters in section 306A(1) of CTA 2009— (a) is recognised in equity or shareholders' funds for a period, and (b) is not recognised in the company's accounts for the period as an item of profit or loss or as an item of other comprehensive income. (2) The amount is to be brought into account for the period for the purposes of this Part in the same way as an amount which is brought into account as a credit or debit in determining the company's profit or loss for the period in accordance with generally accepted accounting practice. (3) But this section does not bring into account for the purposes of this Part any exchange gain or loss of the company which is recognised in the company's statement of total recognised gains and losses, statement of recognised income and expense, statement of changes in equity or statement of income and retained earnings.

Normal commercial loans

6

In section 162 of CTA 2010 (meaning of “normal commercial loan”) after subsection (1) insert—

(1B) For those purposes, “normal commercial loan” also includes a hybrid capital instrument (within the meaning of section 475C of CTA 2009).

Consequential amendments

7
  • (1) Part 5 of CTA 2009 (loan relationships) is amended as follows.
  • (2) In section 398 (overview of Chapter 12), in subsection (2)—
  • (a) omit the “and” at the end of paragraph (d), and
  • (b) after paragraph (e) insert

, and (f) section 420A (hybrid capital instruments).

  • (3) In section 465(3) (provisions preventing amounts from being distributions), before paragraph (za) insert—

(zza) section 420A(2) (hybrid capital instruments),

.

8
  • (1) Part 10 of TIOPA 2010 (corporate interest restriction) is amended as follows.
  • (2) In section 413(6) (adjusted net group-interest expense: “relevant enactment”) for paragraph (b) substitute—

(b) section 320B of CTA 2009 (hybrid capital instruments: amounts recognised in equity).

  • (3) In section 415 (qualifying net group-interest expense: interpretation), omit subsection (8).
9
  • (1) The Loan Relationships and Derivative Contracts (Disregard and Bringing into Account of Profits and Losses) Regulations 2004 (S.I. 2004/3256) are amended in accordance with this paragraph.
  • (2) In regulation 2(1) (interpretation)—
  • (a) after the definition of “fair value profit or loss” insert—

“hybrid capital instrument” has the meaning given by section 475C of CTA 2009;

, and

  • (b) omit the definition of “regulatory capital security”.
  • (3) In regulation 3 (exchange gains or losses arising from liabilities or assets hedging shares etc), in paragraph (5)(c), for “a regulatory capital security” substitute “ a hybrid capital instrument ”.
  • (4) In regulation 4 (exchange gains or losses arising from derivative contracts hedging shares etc), in paragraph (4A)(c), for “a regulatory capital security” substitute “ a hybrid capital instrument ”.

Commencement for purposes of corporation tax

10

The following have effect for accounting periods beginning on or after 1 January 2019—

  • (a) the provision made by paragraphs 1 to 4 and 6 so far as relating to corporation tax, and
  • (b) the amendments made by paragraphs 5 and 7 to 9.
11

An accounting period beginning before and ending on or after 1 January 2019 is to be treated for the purposes of the provision made by this Schedule (other than paragraph 12 or 13) as if so much of the period as falls before that date, and so much of the period as falls on or after that date, were separate accounting periods.

12
  • (1) This paragraph applies in the case of a security which was a regulatory capital security for the purposes of the Taxation of Regulatory Capital Securities Regulations 2013 immediately before 1 January 2019 (referred to in this Part of this Schedule as a “transitional qualifying instrument”).
  • (2) The revocations made by paragraph 1 do not affect any case where regulation 3(2)(a) or (b), (3) or (3A) of those Regulations would have applied in relation to accounting periods ending on or before 31 December 2023 but for the provision made by paragraph 1.
  • (3) In a case where sub-paragraph (2) has applied, paragraph 13 makes provision for corporation tax purposes in relation to an accounting period beginning on 1 January 2024 (“the 2024 period”) to bring in credits or debits in respect of a transitional qualifying instrument which exists immediately before that date so far as they would not otherwise be brought into account.
  • (4) For the purposes of this paragraph and paragraph 13, an accounting period beginning before and ending on or after 1 January 2024 is to be treated as if so much of the period as falls before that date, and so much of the period as falls on or after that date, were separate accounting periods.
13
  • (1) If there is a difference between—
  • (a) the tax-adjusted carrying value of a transitional qualifying instrument which is an asset or liability at the end of an accounting period ending on 31 December 2023, and
  • (b) the tax-adjusted carrying value of that instrument at the beginning of the 2024 period,

a credit or debit (as the case may be) of an amount equal to the difference must be brought into account for the purposes of Part 5 of CTA 2009 for the 2024 period in the same way as a credit or debit which is brought into account in determining the company's profit or loss for that period in accordance with generally accepted accounting practice.

  • (2) For the purposes of this paragraph “tax-adjusted carrying value” is to be construed in accordance with—
  • (a) section 465B of CTA 2009 (tax-adjusted carrying value in relation to the asset or liability representing a loan relationship), and
  • (b) section 702 of CTA 2009 (tax-adjusted carrying value in relation to a contract).
  • (3) Where in the 2024 period, in accordance with generally accepted accounting practice, the rights and liabilities under the transitional qualifying instrument have been treated as divided between—
  • (a) a loan relationship, and
  • (b) one or more derivative financial instruments or equity instruments,

the reference in this paragraph to the tax-adjusted carrying value of the transitional qualifying instrument means the sum of the tax-adjusted carrying values for each of those component instruments.

  • (4) In sub-paragraph (3) “equity instrument” has the meaning it has for accounting purposes.
14
  • (1) This paragraph applies to a transitional qualifying instrument which qualified as a regulatory capital security as a result of falling within regulation 2(1)(c) or (d) of the Taxation of Regulatory Capital Securities Regulations 2013.
  • (2) The revocations made by paragraph 1 do not affect the application of regulation 3(2)(c)(i) of those Regulations in a case where the writing down or conversion concerned took place before 1 July 2019.
15
  • (1) This paragraph applies if—
  • (a) regulation 3(2)(c)(i) of the Taxation of Regulatory Capital Securities Regulations 2013 applied in relation to a transitional qualifying instrument as a result of the writing down of the principal amount of the security on a temporary basis, and
  • (b) a credit was, accordingly, not brought into account under Part 5 of CTA 2009.
  • (2) No debit is to be brought into account under that Part in respect of the writing up of the principal amount of the security in accordance with any regulatory requirements or the provisions governing the security.

Commencement for purposes of income tax and CGT

16
  • (1) The provision made by paragraphs 1 to 4 has effect for the purposes of income tax in relation to payments made on or after 1 January 2019.
  • (2) But the revocations made by paragraph 1—
  • (a) do not affect the application of regulation 6 or 9 of the Taxation of Regulatory Capital Securities Regulations 2013 in relation to payments made before the day on which this Act is passed, and
  • (b) do not, in the case of a transitional qualifying instrument, apply to payments made before 1 January 2024 in any case where regulation 6 or 9 of those Regulations would have applied but for the provision made by paragraph 1.
17

The revocations made by paragraph 1 have effect for the purposes of capital gains tax in relation to disposals made on or after 1 January 2019.

18

In so far as it relates to the definition of “corporate bond” in section 117(1) of TCGA 1992, the amendment made by paragraph 6 has effect in relation to disposals made on or after 1 January 2019.

Power to amend definition of “hybrid capital instrument”

19
  • (1) The Treasury may by regulations amend section 475C of CTA 2009.
  • (2) The power conferred by this paragraph may not be exercised after 31 December 2019.
  • (3) The regulations may contain incidental, supplementary, consequential and transitional provision and savings.
  • (4) The consequential provision that may be made by the regulations includes provision amending any provision made by or under any Act.
  • (5) The regulations may contain retrospective provision.

PART 3 — Stamp duty and stamp duty reserve tax

20

A transfer of a hybrid capital instrument (within the meaning of section 475C of CTA 2009) is exempt from all stamp duties.

21

The revocations made by paragraph 1, and the provision made by paragraph 20, have effect—

  • (a) for the purposes of stamp duty, in relation to instruments executed on or after the day on which this Act is passed, and
  • (b) for the purposes of stamp duty reserve tax—
  • (i) in the case of agreements to transfer securities which are not conditional, in relation to agreements made on or after that day, and
  • (ii) in the case of agreements to transfer securities which are conditional, in relation to agreements where the condition is satisfied on or after that day.

Editorial notes

[^M_F_dea4d634-abf0-4e0b-9b87-8416bfd234aa]: Words in Sch. 20 para. 3(1) omitted (retrospectively) by virtue of The Taxation of Hybrid Capital Instruments (Amendment of Section 475C of the Corporation Tax Act 2009) Regulations 2019 (S.I. 2019/1250, regs. 1(2), 2(1)(b)

[^M_F_5ecc7d80-ad73-4ade-c7af-3d976a6039fe]: Words in Sch. 20 para. 3(1) substituted (retrospectively) by virtue of The Taxation of Hybrid Capital Instruments (Amendment of Section 475C of the Corporation Tax Act 2009) Regulations 2019 (S.I. 2019/1250, regs. 1(2), 3

[^M_F_5e3ff5cc-7132-4f56-d905-ddbbf9cf31f6]: Words in Sch. 20 para. 3(1) substituted (retrospectively) by virtue of The Taxation of Hybrid Capital Instruments (Amendment of Section 475C of the Corporation Tax Act 2009) Regulations 2019 (S.I. 2019/1250, regs. 1(2), 2(1)(a)

[^key-64429805a6772b7946fa8c0c7dd4e3e5]: Sch. 5 para. 35 in force at 6.4.2020, see Sch. 5 para. 35

[^key-d9eeb28d00ee5abfe1ab8fc761a82fa8]: Sch. 5 para. 1 in force at 6.4.2020, see Sch. 5 para. 35

[^key-5ebea55a367cffc2ec3a17268925abc8]: Sch. 5 para. 2 in force at 6.4.2020, see Sch. 5 para. 35

[^key-d1d8b6817d75d59350f620d5c83f51da]: Sch. 5 para. 3 in force at 6.4.2020, see Sch. 5 para. 35

[^key-1c4b67fcda9a1122cd3522b752ef40e3]: Sch. 5 para. 4 in force at 6.4.2020, see Sch. 5 para. 35

[^key-3cfac960f42c0c610c7294f706cc91cf]: Sch. 5 para. 5 in force at 6.4.2020, see Sch. 5 para. 35

[^key-1ca4424fd7a10169f0c64a7f54aec39c]: Sch. 5 para. 6 in force at 6.4.2020, see Sch. 5 para. 35

[^key-9ca694d263995fca25ad62a4a057c91b]: Sch. 5 para. 7 in force at 6.4.2020, see Sch. 5 para. 35

[^key-9db25370619bca4817a9f435fa3d1d14]: Sch. 5 para. 8 in force at 6.4.2020, see Sch. 5 para. 35

[^key-843aa896e16543cea527b8386bda2b18]: Sch. 5 para. 9 in force at 6.4.2020, see Sch. 5 para. 35

[^key-265c93583e75c3e96f137aadb208f772]: Sch. 5 para. 10 in force at 6.4.2020, see Sch. 5 para. 35

[^key-cb551bb7920a74bc641343f69e5ef256]: Sch. 5 para. 11 in force at 6.4.2020, see Sch. 5 para. 35

[^key-a71ea9012b160a1667ca442da1055fe0]: Sch. 5 para. 12 in force at 6.4.2020, see Sch. 5 para. 35

[^key-ec5b721373e05ddb08f10cce30d5cb45]: Sch. 5 para. 13 in force at 6.4.2020, see Sch. 5 para. 35

[^key-365a4805775361666c280bac151b3866]: Sch. 5 para. 14 in force at 6.4.2020, see Sch. 5 para. 35

[^key-0befc9c521fd7215efdfd877cd378bdd]: Sch. 5 para. 15 in force at 6.4.2020, see Sch. 5 para. 35

[^key-8548deeb20ca401589a52da4ddc3e156]: Sch. 5 para. 16 in force at 6.4.2020, see Sch. 5 para. 35

[^key-f554218979815fad71e129bd5a2bec1b]: Sch. 5 para. 17 in force at 6.4.2020, see Sch. 5 para. 35

[^key-e80efd7c1abca2da5a419a801b91b574]: Sch. 5 para. 18 in force at 6.4.2020, see Sch. 5 para. 35

[^key-ea6c7e9cdb2fa428d1bece0ff823a0e9]: Sch. 5 para. 19 in force at 6.4.2020, see Sch. 5 para. 35

[^key-f119d8e7c6e667499fa8292f74d4ccb4]: Sch. 5 para. 20 in force at 6.4.2020, see Sch. 5 para. 35

[^key-8df3264fc8b12522ad7a02a40fba18bf]: Sch. 5 para. 21 in force at 6.4.2020, see Sch. 5 para. 35

[^key-9242a351b626d08e6a20850c24c8029f]: Sch. 5 para. 22 in force at 6.4.2020, see Sch. 5 para. 35

[^key-e7f5cd9a7786c3669f34105542e61e1c]: Sch. 5 para. 23 in force at 6.4.2020, see Sch. 5 para. 35

[^key-289b68a06bf35403938f720b5a38535d]: Sch. 5 para. 24 in force at 6.4.2020, see Sch. 5 para. 35

[^key-9ce7e49ff46221c0e59d3827253eb2d6]: Sch. 5 para. 25 in force at 6.4.2020, see Sch. 5 para. 35

[^key-a496f777d3dc82b2de40d0b9c6a75526]: Sch. 5 para. 26 in force at 6.4.2020, see Sch. 5 para. 35

[^key-3ad971144d79a637029038f21bc5e74f]: Sch. 5 para. 27 in force at 6.4.2020, see Sch. 5 para. 35

[^key-2d0c13d7a905e16e0e3280bfca4d693a]: Sch. 5 para. 28 in force at 6.4.2020, see Sch. 5 para. 35

[^key-4c859befa486847d61ab70a59b800562]: Sch. 5 para. 29 in force at 6.4.2020, see Sch. 5 para. 35

[^key-ecdc8b6e38c73eadaf55499aed014483]: Sch. 5 para. 30 in force at 6.4.2020, see Sch. 5 para. 35

[^key-bc704e9279902793332478c8edeb89ef]: Sch. 5 para. 31 in force at 6.4.2020, see Sch. 5 para. 35

[^key-b8a2d1f1a64e2a160a4b40f4fbeb7be7]: Sch. 5 para. 32 in force at 6.4.2020, see Sch. 5 para. 35

[^key-99ef634381da34c1bbad4fd282bc9b9d]: Sch. 5 para. 33 in force at 6.4.2020, see Sch. 5 para. 35

[^key-43b00864c9c3ef0e1614912cb87248bf]: Sch. 5 para. 34 in force at 6.4.2020, see Sch. 5 para. 35

[^key-887b56d34e82df292a0c145bf679be5d]: Sch. 5 para. 36 in force at 6.4.2020, see Sch. 5 para. 35

[^key-3aa07cc90053c264b0f53ee0c2b9be62]: Sch. 5 para. 37 in force at 6.4.2020, see Sch. 5 para. 35

[^key-7b6d6ad43accc147c7cba520fca1b9ab]: Sch. 5 para. 38 in force at 6.4.2020, see Sch. 5 para. 35

[^key-9458f76cc6137a8d50afd239df9fe1de]: Sch. 5 para. 39 in force at 6.4.2020, see Sch. 5 para. 35

[^key-74ff50ff753a51aa64ee9cd9b91ddca1]: Sch. 5 para. 40 in force at 6.4.2020, see Sch. 5 para. 35

[^key-fb207aa2260845fd55c57890baee792b]: Sch. 5 para. 41 in force at 6.4.2020, see Sch. 5 para. 35

[^key-705a28a3e33c615fb41bdf97518020e0]: Sch. 5 para. 42 in force at 6.4.2020, see Sch. 5 para. 35

[^key-e3add1cceeb6792f6503e1b10bf412c7]: Sch. 5 para. 43 in force at 6.4.2020, see Sch. 5 para. 35

[^key-177cc1b6add26cadf3c9069cc706b129]: Sch. 5 para. 44 in force at 6.4.2020, see Sch. 5 para. 35

[^key-ff178f159c02d2df1293b26c91792ae5]: Sch. 5 para. 45 in force at 6.4.2020, see Sch. 5 para. 35

[^key-cda733b13380b47510e4541455fc9a08]: Sch. 5 para. 46 in force at 6.4.2020, see Sch. 5 para. 35

[^key-26f4c102756e9dbf074cebea45658898]: Sch. 5 para. 47 in force at 6.4.2020, see Sch. 5 para. 35

[^key-abbb6fa5310e1e07845f33627aa5d450]: Sch. 5 para. 48 in force at 6.4.2020, see Sch. 5 para. 35

[^key-6dd72e68763524951bcfcf8353782de4]: Sch. 5 para. 49 in force at 6.4.2020, see Sch. 5 para. 35

[^key-19b2c423f0892cc4677f38705c00ca1a]: Sch. 5 para. 50 in force at 6.4.2020, see Sch. 5 para. 35

[^M_F_7fede56d-68d7-4bac-974d-1cd38a75a303]: Sch. 14 para. 14 substituted (retrospectively) by Finance Act 2020 (c. 14), s. 35(3)(4)

[^M_F_c883e839-12ac-4b4f-b94c-b848f9f7fe1a]: Sch. 14 para. 13(1) substituted (retrospectively) by Finance Act 2020 (c. 14), s. 35(2)(4)

[^key-4f400efb9754ba42da0fffeb35bf64d9]: Sch. 5 modified (22.7.2020) by Finance Act 2020 (c. 14), Sch. 6 para. 10

[^key-143b8e4dc320ae271d0f1011a96ffa2a]: Sch. 5 para. 44(4) inserted (with effect in accordance with Sch. 6 para. 11 of the amending Act) by Finance Act 2020 (c. 14), Sch. 6 para. 9

[^key-9da2eedb4f3e172a0e0a99cbe2f655c6]: S. 47A inserted (22.7.2020) by Finance Act 2020 (c. 14), s. 77

[^key-6710feae6517590c0e8f4d6d773fa71c]: S. 48A inserted (22.7.2020) by Finance Act 2020 (c. 14), s. 78

[^M_F_873eeb3c-0646-417c-9557-07b3c38913fb]: Sch. 5 para. 40(7) inserted (6.4.2020) by Finance Act 2020 (c. 14), Sch. 6 para. 5

[^key-45b8feccf58bdc927a8b910001199baa]: Pt. 3 omitted (10.6.2021) by virtue of Finance Act 2021 (c. 26), s. 112(1)

[^key-31081b0ce8616c15144f0a0ffdaea321]: Words in Sch. 13 heading substituted (24.2.2022) by Finance Act 2022 (c. 3), s. 12(2)(d)

[^key-63a363853f93f02e0db5a384112ff4d4]: Words in s. 32(1) substituted (24.2.2022) by Finance Act 2022 (c. 3), s. 12(1)

[^key-182a74d51b08ffe8a06b791437a8a2ca]: Words in s. 32(2) substituted (24.2.2022) by Finance Act 2022 (c. 3), s. 12(2)(a)

[^key-94a0f2377d3125bb29efa25eca108aa0]: Word in Sch. 2 para. 3(1)(b) substituted (with effect in accordance with s. 23(4) of the amending Act) by Finance Act 2022 (c. 3), s. 23(2)

[^key-9c313003cb4e1d6c8ffea2449b34213b]: Sch. 2 para. 7(3A) inserted (with effect in accordance with s. 23(4) of the amending Act) by Finance Act 2022 (c. 3), s. 23(3)

[^key-2c932865236e921e736e6761e6f63f2f]: Words in Sch. 13 para. 2 and heading substituted (24.2.2022) by Finance Act 2022 (c. 3), s. 12(2)(b)

[^key-8ec4a69ee2c2074278149b39489a70aa]: Words in Sch. 13 para. 3(3)(b) substituted (24.2.2022) by Finance Act 2022 (c. 3), s. 12(2)(c)

[^key-643de1167917772f50ad8975626cd920]: S. 32 ceases to have effect (in relation to chargeable periods beginning before 1.4.2023 and ending on or after that date) by virtue of Finance (No. 2) Act 2023 (c. 30), s. 8(2)(b)(3)(b)

[^key-20d91f9a0448c41018d09ebe7278d32b]: S. 84 repealed (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), s. 349(11)(c)

[^key-a40379c3796b9cd7ba3a68ae06749468]: Sch. 13 para. 2 ceases to have effect (in relation to chargeable periods beginning before 1.4.2023 and ending on or after that date) by virtue of Finance (No. 2) Act 2023 (c. 30), s. 8(2)(b)(3)(a)

[^key-1531ffdf9572e7f449e07c1a516089c9]: Sch. 13 para. 3 ceases to have effect (in relation to chargeable periods beginning before 1.4.2023 and ending on or after that date) by virtue of Finance (No. 2) Act 2023 (c. 30), s. 8(2)(b)(3)(a)

[^key-129f97be61480a1a8315e141cf92d9ba]: Sch. 2 paras. 16A-16H and cross-heading inserted (with effect in accordance with s. 7(3) of the amending Act) by Finance Act 2025 (c. 8), s. 7(3), Sch. 1 para. 9(2) (with Sch. 2 Pts. 1, 2)

[^key-8fab8e4eaa8ece67d29b090724e982f8]: Sch. 2 para. 17 cross-heading substituted (with effect in accordance with s. 7(3) of the amending Act) by Finance Act 2025 (c. 8), s. 7(3), Sch. 1 para. 9(3) (with Sch. 2 Pts. 1, 2)

[^key-a8fa100047ed26bf9b2ac532b02dbcdc]: Sch. 3 omitted (with effect in accordance with s. 20(12) of the amending Act) by virtue of Finance Act 2025 (c. 8), s. 20(10)(12)

[^key-2498adf1499b58cb71cc65f43fdc0d2e]: Sch. 1 para. 15 omitted (with effect in accordance with s. 7(3) of the amending Act) by virtue of Finance Act 2025 (c. 8), s. 7(3), Sch. 1 para. 8 (with Sch. 2 Pts. 1, 2)

[^key-73901b212c1986244b2bc571541855c2]: Words in Sch. 2 para. 17(1) omitted (with effect in accordance with s. 7(3) of the amending Act) by virtue of Finance Act 2025 (c. 8), s. 7(3), Sch. 1 para. 9(4) (with Sch. 2 Pts. 1, 2)

[^key-2a8e48148fca023bb2ff05a1e7c85799]: Word in Sch. 2 para. 10 cross-heading substituted (with effect in accordance with s. 41(5) of the amending Act) by Finance Act 2026 (c. 11), s. 41(3)(a)(5)

[^key-2df41548d746cd85955211394b44d7a0]: Word in Sch. 2 para. 10 substituted (with effect in accordance with s. 41(5) of the amending Act) by Finance Act 2026 (c. 11), s. 41(3)(b)(i)(5)

[^key-8906bd0400529d9edc02bf35ab3e22d9]: Sch. 2 para. 10(3) inserted (with effect in accordance with s. 41(5) of the amending Act) by Finance Act 2026 (c. 11), s. 41(3)(b)(ii)(5)

[^key-51a6ab9ed1944f92b41b6f7bffdd9e42]: Word in Sch. 2 para. 11(1)(a) substituted (with effect in accordance with s. 41(5) of the amending Act) by Finance Act 2026 (c. 11), s. 41(3)(c)(i)(5)

[^key-78a636ccbf2675d2ad075a3e6328413a]: Word in Sch. 2 para. 11(1)(a) substituted (with effect in accordance with s. 41(5) of the amending Act) by Finance Act 2026 (c. 11), s. 41(3)(c)(ii)(5)

[^key-7753ed32be874523143d64bb1b1744cd]: Words in Sch. 2 para. 11(1)(b) substituted (with effect in accordance with s. 41(5) of the amending Act) by Finance Act 2026 (c. 11), s. 41(3)(d)(5)

[^key-b6655e89d0e8aff08528358a80c507f7]: Word in Sch. 2 para. 12(1)(a) substituted (with effect in accordance with s. 41(5) of the amending Act) by Finance Act 2026 (c. 11), s. 41(3)(e)(5)

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