UKPGA-2008-9 Finance Act 2008 UK

Income tax is charged for the tax year 2008-09.

For that tax year—

For the tax year 2008-09 the amount specified in—(personal allowance for those aged under 65) is replaced with “ £6,035 ”.

Accordingly—(indexation) do not apply for the tax year 2008-09.

This section does not require a change to be made in the amounts deductible or repayable under PAYE regulations before 7 September 2008.

For the tax year 2008-09—

Accordingly—(indexation) do not apply for the tax year 2008-09.

In section 10 of ITA 2007 (income charged at main rates: individuals), for subsection (5) substitute—

The amendment made by subsection (1) has effect for the tax year 2008-09 and subsequent tax years.

But until 7 September 2008 for the purpose of ascertaining the amounts deductible or repayable under PAYE regulations it may be assumed that the figure specified in section 10(5) of ITA 2007 for the tax year 2008-09 is £36,000.

Section 6 of ITA 2007 (rates at which income tax is charged) is amended as follows.

In subsection (1), omit paragraph (a).

In subsection (2), omit “starting rate,”.

In subsection (3), for paragraph (a) substitute—.

Accordingly, in the heading omit “starting rate,”.

The amendments made by this section have effect for the tax year 2008-09 and subsequent tax years.

Schedule 1 contains provision in connection with—

Corporation tax is charged for the financial year 2009.

For that year the rate of corporation tax is—

In subsection (2) “ring fence profits” has the meaning given by section 276 of CTA 2010.

In TCGA 1992, for section 4 substitute—

Schedule 2 contains further provision for and in connection with the reform of capital gains tax.

The amendment made by subsection (1) has effect for the tax year 2008-09 and subsequent tax years.

ALDA 1979 is amended as follows.

In section 5 (rate of duty on spirits), for “£19.56” substitute “ £21.35 ”.

In section 36(1AA)(a) (standard rate of duty on beer), for “£13.71” substitute “ £14.96 ”.

In section 62(1A) (rates of duty on cider)—

For the table in Schedule 1 substitute—.

The amendments made by this section are treated as having come into force on 17 March 2008.

For the table in Schedule 1 to TPDA 1979 substitute—.

The amendment made by subsection (1) is treated as having come into force at 6pm on 12 March 2008.

HODA 1979 is amended as follows.

In section 1 (hydrocarbon oil), omit—

In section 6 (hydrocarbon oil: rates of duty), for subsection (1A) substitute—

In section 6AB(5) (duty on bioblend), omit the words from “of the description” to the end.

In section 11(1) (rebate on heavy oil), omit—

In section 13AA(6) (restrictions on use of rebated kerosene), omit “which is not ultra low sulphur diesel or sulphur-free diesel”.

Omit section 13A (rebate on unleaded petrol).

In section 20AAA(4)(a) (mixing of rebated oil), for “section 6(1A)(d)” substitute “ section 6A(1A)(c) ”.

In section 27(1) (interpretation)—

In Article 21(7) of the Renewable Transport Fuel Obligations Order 2007 (S.I.2007/3072), for “sulphur-free petrol” substitute “ unleaded petrol ”.

In consequence of this section, omit—

The amendments made by this section are treated as having come into force on 1 April 2008.

HODA 1979 is amended as follows.

In section 6(1A) (main rates)—

In section 6AA(3) (rate of duty on biodiesel), for “£0.3035” substitute “ £0.3235 ”.

In section 6AD(3) (rate of duty on bioethanol), for “£0.3035” substitute “ £0.3235 ”.

In section 8(3) (road fuel gas)—

In section 11(1) (rebate on heavy oil)—

In section 14(1) (rebate on light oil for use as furnace fuel), for “£0.0929” substitute “ £0.0966 ”.

In section 14A(2) (rebate on certain biodiesel), for “£0.0969” substitute “ £0.1007 ”.

The amendments made by this section come into force on 1 October 2008.

In section 6(1A) of HODA 1979 (main rates)—

The amendments made by subsection (1) come into force on 1 November 2008.

Schedule 6 contains—

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

In paragraph 1 (general)—

In paragraph 1B (graduated rates for light passenger vehicles), for the table substitute—

In paragraph 1J (light goods vehicles)—

In paragraph 2(1) (motorcycles)—

The amendments made by this section have effect in relation to licences taken out on or after 13 March 2008.

In section 42(1)(a) and (2) of FA 1996 (amount of landfill tax), for “£32” substitute “ £40 ”.

The amendments made by subsection (1) come into force on 1 April 2009 and have effect in relation to disposals made (or treated as made) on or after that date.

In Schedule 6 to FA 2000 (climate change levy), for the table in paragraph 42(1) substitute—.

The amendment made by subsection (1) has effect in relation to supplies treated as taking place on or after 1 April 2009.

In section 16(4) of FA 2001 (rate of aggregates levy), for “£1.95” substitute “ £2 ”.

The amendment made by subsection (1) has effect in relation to aggregate subjected to commercial exploitation on or after 1 April 2009.

The Treasury may impose charges by providing for carbon reduction trading scheme allowances to be allocated in return for payment.

The charges may only be imposed by regulations.

The regulations may make any other provision about allocations of allowances which the Treasury consider appropriate, including (in particular)—

The Treasury may make schemes about the conduct and terms of allocations (to have effect subject to any regulations under this section); and schemes may in particular include provision about—

In this section—“carbon reduction trading scheme allowances” means tradeable allowances that—are provided for in a relevant trading scheme, and represent the right to carry on a specified amount of activities that consist of the emission of greenhouse gas or that cause or contribute, directly or indirectly, to such emissions;“relevant trading scheme” means a trading scheme that—is made under Part 3 of the Climate Change Act 2008, applies to persons by reference to their consumption of electricity (whether or not by reference to other matters as well), and applies only to persons who consume electricity—for business or charitable purposes, or for the performance of functions of a public nature,(whether or not they also consume electricity for other purposes);“specified” means specified in the relevant trading scheme.

Regulations under this section are to be made by statutory instrument.

A statutory instrument containing the first regulations under this section may not be made unless a draft of the regulations has been laid before, and approved by a resolution of, the House of Commons.

Any other statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons unless a draft of the regulations has been laid before, and approved by a resolution of, that House.

For the table in section 11(2) of FA 1997 substitute—.

The amendment made by subsection (1) has effect in relation to accounting periods beginning on or after 1 April 2008.

In section 23(2) of BGDA 1981 (amount of duty payable on amusement machine licence), for the table substitute—.

The amendment made by subsection (1) has effect in relation to cases where the application for the amusement machine licence is received by the Commissioners for Her Majesty's Revenue and Customs after 4pm on 14 March 2008.

Section 831 of ITA 2007 (foreign income of individuals in United Kingdom for temporary purpose) is amended as follows.

In subsection (1), for paragraph (b) substitute—

After that subsection insert—

In section 832 of that Act (employment income of individuals in United Kingdom for temporary purpose), after subsection (1) insert—

Section 9 of TCGA 1992 (residence, including temporary residence) is amended as follows.

In subsection (3), for the words after “if and only if” substitute “ the individual spends (in total) at least 183 days in the United Kingdom. ”

Insert at the end—

The amendments made by this section have effect for the tax year 2008-09 and subsequent tax years.

Part 3 of Schedule 5 to ITEPA 2003 (enterprise management incentives: qualifying companies) is amended as follows.

In paragraph 8 (qualifying companies: introduction), omit the “and” at the end of the entry relating to paragraph 12, and after that entry insert— “ number of employees (see paragraph 12A), and ”.

After paragraph 12 insert—

In paragraph 16 (excluded activities), after paragraph (i) insert—.

After paragraph 20 insert—

The amendments made by this section have effect in relation to options granted on or after the day on which this Act is passed.

Schedule 12 contains provision about tax credits for certain foreign distributions.

The amendments made by that Schedule have effect for the tax year 2008-09 and subsequent tax years.

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Schedule 14 contains amendments and repeals consequential on that Schedule etc.

Schedule 15 contains provision about the effect of certain changes in trading stock on the calculation of profits of trades for the purposes of income tax or corporation tax.

The amendments made by that Schedule have effect in relation to changes in trading stock occurring on or after 12 March 2008.

In subsection (2) “change in trading stock” means—

The Commissioners for Her Majesty’s Revenue and Customs may by regulations—

A relevant dormant asset is an asset in respect of which an amount is to be, or has been, transferred by an institution—

Interest paid or credited in respect of a relevant dormant asset includes interest paid or credited by a person who administers the asset on behalf of an authorised reclaim fund after the balance has been transferred.

In this section—“the 2008 Act” means the Dormant Bank and Building Society Accounts Act 2008;“the 2022 Act” means the Dormant Assets Act 2022;“asset” means an asset within the scope of the dormant assets scheme (see section 1(6) of the 2022 Act);“authorised reclaim fund” has the same meaning as in the Dormant Assets Acts 2008 to 2022.

In ITEPA 2003, after section 100 insert—

The amendment made by subsection (1) is treated as always having had effect.

Section 145 of ICTA (living accommodation provided for employee) is to be treated as never having applied to living accommodation outside the United Kingdom provided in circumstances in which, had it been provided on or after 6 April 2003, section 100A(1) of ITEPA 2003 would cause Chapter 5 of Part 3 of ITEPA 2003 (taxable benefits: living accommodation) not to apply.

In section 677(1) of ITEPA 2003 (UK social security benefits wholly exempt from tax), in Part 1 of Table B (benefits payable under primary legislation), insert at the appropriate places—, and.

In Part 1 of Schedule 1 to that Act (abbreviations of Acts etc), insert at the appropriate places—, and.

The amendments made by this section have effect for the tax year 2008-09 and subsequent tax years.

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In consequence of the amendment made by subsection (1), omit—

The amendments made by this section have effect for the tax year 2008-09 and subsequent tax years.

In section 239(3) of ITEPA 2003 (exemption in respect of payments and benefits connected with taxable cars and vans subject to section 149), insert at the end “ or section 160 (benefit of van fuel treated as earnings). ”

In section 269(2) of that Act (exemption in respect of non-cash vouchers and credit-tokens where benefits or money obtained in connection with taxable car or subject to section 149)—

In section 149AA of TCGA 1992 (restricted and convertible employment-related securities), after subsection (6) insert—

ITEPA 2003 is amended as follows.

In section 428(2)(b) as originally enacted (conditional interests in shares: amount of charge), insert at the end “ (other than an amount of exempt income) ”.

In section 428(7)(b) (restricted securities: amount of charge), insert at the end “ (other than an amount of exempt income) ”.

In section 446T(3)(b) (securities acquired for less than market value: amount of charge), insert at the end “ (other than an amount of exempt income) ”.

In section 480(5)(a) (securities options: deductible amounts), insert at the end “ (other than an amount of exempt income) ”.

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The amendment made by subsection (1) has effect in relation to disposals made on or after 12 March 2008.

The amendment made by subsection (3) has effect in relation to events within section 427(1)(a) or (b) of ITEPA 2003 (as originally enacted) occurring on or after that date.

The amendments made by subsections (4) and (6) have effect in relation to chargeable events occurring on or after that date.

The amendment made by subsection (5) has effect in relation to employment-related securities acquired (or treated as acquired) on or after that date.

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In ICTA, omit sections 138 and 139 (share acquisitions by directors and employees: shares acquired before 26 October 1987).

In ITEPA 2003—

The amendments made by this section have effect for the tax year 2008-09 and subsequent tax years.

In ITEPA 2003, after section 297A insert—

The amendment made by subsection (1) has effect in relation to payments made on or after 1 April 2008.

Section 291(2) of ITEPA 2003 (termination payments to MPs and others ceasing to hold office) is amended as follows.

In paragraph (ea), omit “or”.

At the end of paragraph (f) insert

The amendments made by this section have effect in relation to payments made on or after 6 April 2008.

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In section 59 of TCGA 1992 (partnerships), insert at the end—

In section 858 of ITTOIA 2005 (resident partners and double taxation agreements), insert at the end—

The amendments made by subsections (1) to (3) are treated as always having had effect.

For the purposes of the predecessor provisions, the members of a partnership are to be treated as having included, at all times to which those provisions applied, a person entitled to a share of income or capital gains of the partnership.

“The predecessor provisions” means—

In section 103B(2) of ITA 2007 (meaning of “non-active partner” for purposes of provisions restricting trade loss relief), for “carried on for the purposes of the trade” substitute

The amendment made by subsection (1) has effect in relation to relevant periods ending on or after 12 March 2008.

Schedule 23 contains anti-avoidance provisions about manufactured payments.

The amendments made by that Schedule have effect in relation to manufactured payments (including deemed manufactured payments) made (or treated as made) on or after 31 January 2008.

Chapter 4 of Part 17 of ICTA (controlled foreign companies) is amended as follows.

In section 747 (imputation of chargeable profits of controlled foreign companies)—

In section 755D (meaning of control)—

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In paragraph 6 of Schedule 25 (definition of exempt activities), after sub-paragraph (5B) insert—

The amendments made by subsections (2) and (5) have effect in relation to income accruing on or after 12 March 2008.

The amendments made by subsection (3) have effect for determining whether, at any time on or after 12 March 2008, a company is controlled by persons resident in the United Kingdom for the purposes of Chapter 4 of Part 17 of ICTA.

The amendments made by subsection (4) have effect in relation to any dividend paid on or after 12 March 2008.

In relation to an accounting period of a company beginning before, and ending on or after, 12 March 2008 (“the straddling period”), the amendments made by this section have effect as if, for the purposes of Chapter 4 of Part 17 of ICTA, 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.

The company's chargeable profits for the straddling period, and its creditable tax (if any) for that period, are to be apportioned to the two separate accounting periods on a just and reasonable basis.

In this section “accounting period”, “chargeable profits” and “creditable tax” have the same meaning as in Chapter 4 of Part 17 of ICTA.

In Part 17 of ICTA (tax avoidance)—

In Part 13 of ITA 2007 (tax avoidance)—

In consequence of the amendments made by subsection (1)(a) and (b), omit—

In consequence of the amendments made by subsection (1)(c) and (d), omit—

The amendments made by subsections (1)(a) and (b), (2) and (3) have effect in relation to transactions in securities entered into on or after 1 April 2008.

The amendment made by subsection (1)(c) has effect in relation to cases where the purchase by the first buyer (within the meaning of section 731(2) of ICTA) is made on or after that date.

The amendment made by subsection (1)(d) has effect in relation to distributions made on or after that date.

The amendments made by subsection (4) have effect in accordance with subsections (6) and (7).

In section 685A of ITTOIA 2005 (settlor-interested settlements), after subsection (5) insert—

In section 1012(4) of ITA 2007 (relationship between rules on highest part of total income), after the entry relating to section 465A of ITOIA 2005 insert— “ section 685A(5A) of ITTOIA 2005 (payments from trustees of settlor-interested settlements to be treated as highest part of total income), ”.

The amendments made by this section have effect for the tax year 2006-07 and subsequent tax years.

In section 13(2) of ITA 2007 (income charged at dividend upper rate: individuals)—

The amendments made by subsection (1) have effect for the tax year 2008-09 and subsequent tax years.

In section 964 of ITA 2007, omit subsection (5) (sums representing income tax deducted from annual payments not to be taken into account for the purpose of calculating amounts to be paid on account of income tax).

The repeal made by subsection (1) has effect for the purpose of calculating the amount of any payments to be made under section 59A of TMA 1970 on account of liability to income tax for the tax year 2008-09 and subsequent tax years.

In section 278 of ICTA (non-residents eligible for reliefs)—

In section 56(3) of ITA 2007 (non-UK residents eligible for personal allowances and tax reductions), before paragraph (a) insert—.

Accordingly, omit section 145 of FA 1996 (personal reliefs for non-resident EEA nationals).

The amendments made by this section have effect for the tax year 2008-09 and subsequent tax years.

Section 28 of CAA 2001 (thermal insulation of industrial buildings) is amended as follows.

In subsection (1)—

In subsection (2), for “an industrial” substitute “ a ”.

After that subsection insert—

Omit subsection (3).

In the heading, omit “industrial”.

In section 23(2) of CAA 2001 (expenditure unaffected by sections 21 and 22), in the entry for section 28, omit “industrial”.

The amendments made by this section have effect—

In CAA 2001, omit section 29 (expenditure on required fire precautions).

In section 23(2) of that Act, omit “section 29 (fire safety);”.

In consequence of the amendment made by subsection (1)—

The amendments made by subsections (1) and (2) have effect—

In section 23 of CAA 2001 (expenditure unaffected by sections 21 and 22)—

After section 33 of that Act insert—

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In Chapter 4 of Part 2 of ITTOIA 2005 (rules restricting deductions from trade profits), after section 55 insert—

In the table in section 272(2) of ITTOIA 2005 (provisions of Part 2 applicable to profits of property business), after the entry relating to section 55 insert—

The amendments made by this section have effect—

CAA 2001 is amended as follows.

Omit section 44 (expenditure incurred by small or medium-sized enterprises).

In consequence of the repeal made by subsection (2)—

Omit the following provisions (which relate to provisions repealed by subsection (3))—

The repeals made by subsections (2) and (3) have effect in relation to expenditure incurred on or after the relevant date.

But subsection (7) applies in relation to an additional VAT liability incurred on or after the relevant date which under section 235 of CAA 2001 is treated as qualifying expenditure.

If the original expenditure (within the meaning of that section) was first-year qualifying expenditure by virtue of section 44 of CAA 2001, Chapter 18 of Part 2 of that Act (additional VAT liabilities and rebates) applies to the additional VAT liability as if the provisions repealed by this section were not so repealed.

The relevant date is—

CAA 2001 is amended as follows.

Omit sections 40 to 43 (first-year allowance for Northern Ireland expenditure incurred on or before 11 May 2002).

Omit section 45 (first-year allowance for ICT expenditure incurred on or before 31 March 2004).

In Schedule 3 (transitionals and savings), omit paragraphs 46 to 51 (first-year allowance for additional VAT liabilities).

In consequence of the amendments made by subsections (2) to (4), omit the following provisions—

In consequence of the amendments made by this section, omit—

Subsection (8) applies in relation to an additional VAT liability incurred on or after the day this section comes into force which under section 235 of CAA 2001 is treated as qualifying expenditure.

If the original expenditure (within the meaning of that section) was first-year qualifying expenditure by virtue of a provision repealed by subsections (2) to (4), Chapter 18 of Part 2 of that Act (additional VAT liabilities and rebates) applies to the additional VAT liability as if that provision were not so repealed.

Section 45D of CAA 2001 (expenditure on cars with low carbon dioxide emissions) is amended as follows.

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In consequence of the amendment made by subsection (2)—

The amendment made by subsection (3) has effect in relation to expenditure incurred on or after 1 April 2008.

But in relation to expenditure incurred on the hiring of a car—section 50 of ITTOIA 2005 applies on and after 1 April 2008 as if the amendment made by subsection (3) did not have effect.

Section 45E of CAA 2001 (expenditure on plant or machinery for gas refuelling station) is amended as follows.

In subsection (1)(a), for “2008” substitute “ 2013 ”.

After “natural gas” (in each place) insert “ , biogas ”.

In subsection (4), before the definition of “gas refuelling station” insert—.

The amendments made by subsections (3) and (4) have effect in relation to expenditure incurred on or after 1 April 2008.

Section 56 of CAA 2001 (amount of allowances and charges) is amended as follows.

In subsection (1), for “25%” substitute “ 20% ”.

After that subsection insert—

In subsection (2), for “Subsection (1) is” substitute “ Subsections (1) and (1A) are ”.

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The amendments made by this section have effect in relation to chargeable periods—

But in respect of a chargeable period within subsection (8)(b), they apply as if in—the references to 20% were to x%.

For the purposes of subsection (9)—x=(25×BRD CP)+(20×ARD CP) Where x would be a figure with more than 2 decimal places, it is to be rounded up to the nearest second decimal place.

In subsection (10)—BRD is the number of days in the chargeable period before the relevant date, ARD is the number of days in the chargeable period on and after the relevant date, and CP is the number of days in the chargeable period.

The relevant date is—

CAA 2001 is amended as follows.

In section 56(2) (amount of allowances and charges), before paragraph (a) insert—.

After section 56 insert—

In section 59(1) (definition of unrelieved qualifying expenditure)—

The amendments made by this section have effect—

This section applies in relation to long-life asset expenditure—

In relation to a transitional chargeable period, section 102 of CAA 2001 applies as if the percentage figure specified in subsection (1) of that section were x%, where—x=(6×BRD CP)+(10×ARD CP) Where x would be a figure with more than 2 decimal places, it is to be rounded up to the nearest second decimal place.

In subsection (2)—BRD is the number of days in the chargeable period before the relevant date, ARD is the number of days in the chargeable period on and after the relevant date, and CP is the number of days in the chargeable period.

Any unrelieved qualifying expenditure in a long-life asset pool at the end of—is to be carried forward to the special rate pool.

In subsequent chargeable periods, expenditure so carried forward is to be treated for the purposes of CAA 2001 as if it were special rate expenditure carried forward in the special rate pool from the chargeable period mentioned in subsection (4).

Any unrelieved qualifying expenditure in a single asset pool at the end of—is in subsequent chargeable periods to be treated for the purposes of CAA 2001 as if it were special rate expenditure carried forward in the single asset pool from that chargeable period.

Where expenditure is treated as special rate expenditure because of this section, for the purposes of section 104E of CAA 2001—

A “transitional chargeable period” is one which begins before, and ends on or after, the relevant date.

“The relevant date” means—

Expressions used in this section and in CAA 2001 have the same meaning in this section as in that Act.

Parts 3 and 4 of CAA 2001 (industrial buildings allowances and agricultural buildings allowances) do not apply in relation to expenditure incurred on or after the relevant date.

Omit those Parts of that Act.

The amendment made by subsection (2) has effect in relation to chargeable periods beginning on or after the relevant date.

The relevant date is—

Schedule 27 contains amendments and savings related to this section.

The Treasury may by order make such amendments (including repeals and revocations) of enactments or instruments as may appear appropriate in consequence of, or otherwise in connection with, sections 71 to 87.

The Treasury may by order make such transitional or saving provision as may appear appropriate in consequence of, or otherwise in connection with, those sections.

An order under subsection (1) may make transitional provision and savings.

An order under subsection (1) or (2) may—

An order under subsection (1) or (2) is to be made by statutory instrument.

A statutory instrument containing an order under subsection (1) or (2) is subject to annulment in pursuance of a resolution of the House of Commons.

In Part 4 of FA 2004 (pension schemes etc), after section 199 insert—

The amendment made by this section has effect in relation to payments within section 199A(2) of FA 2004 made on or after 10 October 2007, except for such payments made pursuant to a contract entered into before 9 October 2007.

Sections 58B and 58C of FA 2003 (relief from SDLT on first acquisition of zero-carbon homes) are amended as follows.

In section 58B, for subsection (2) substitute—

Section 58C is amended as follows.

In subsection (1), for “building” substitute “ dwelling ”.

In subsection (2), after paragraph (c) insert—

In subsection (3)—

The amendments made by subsections (2), (4) and (6) are treated as always having had effect; and provision included in regulations by virtue of those amendments may be made so as to have effect in relation to acquisitions on or after 1 October 2007.

Part 4 of FA 2003 (stamp duty land tax) is amended as follows.

For section 77 substitute—

In section 79(2) (registration of land transactions), after “every” insert “ notifiable ”.

Schedule 30 contains consequential provision.

The amendments made by this section and that Schedule have effect in relation to transactions with an effective date on or after 12 March 2008.

Schedule 5 to FA 2003 (amount of SDLT chargeable: rent) is amended as follows.

In paragraph 9 (SDLT chargeable in respect of consideration other than rent)—and, accordingly, in the heading before that paragraph, insert at the end “ : general ”.

After that paragraph insert—

Each of the following provisions of Schedule 6 to that Act (SDLT: disadvantaged areas relief) is amended in accordance with subsection (5)—

In those provisions—

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In Schedule 8 to that Act (SDLT: charities relief), in paragraph 3—

In Schedule 9 to that Act (SDLT: right to buy etc), after paragraph 4A insert—

In that Schedule, in paragraphs 10(1) and (2) and 11(b) (shared ownership trusts), omit “additional”.

In that Schedule, insert at the end—

In Schedule 15 to that Act (SDLT: partnerships)—

In Schedule 17A to that Act (SDLT: further provisions relating to leases), in paragraph 18A(5)(a)—

The amendments made by this section have effect in relation to transactions with an effective date on or after 12 March 2008.

Part 1 of Schedule 7 to FA 2003 (group relief) is amended as follows.

In paragraph 3(5), for “paragraph 4” substitute “ paragraphs 4 and 4ZA ”.

In paragraph 4 (cases in which group relief not withdrawn)—

After that paragraph insert—

In paragraph 4A (withdrawal of group relief in certain cases involving successive transactions)—

The amendments made by this section have effect in relation to transactions with an effective date on or after 13 March 2008.

Schedule 31 contains provision relating to stamp duty land tax chargeable on transfers to, and of interests in, property-investment partnerships.

Part 1 of that Schedule (transfer of interest in partnership: “relevant partnership property”), and this section so far as relating to that Part—

Subsections (14) and (17) of section 72 of FA 2007 (partnerships) apply in relation to the amendments made by Part 1 of that Schedule as they apply in relation to the amendments made by subsections (6) and (10) of that section.

Paragraph 1 of Schedule 13 to FA 1999 (charge to stamp duty on conveyance or transfer on sale) is amended as follows.

In sub-paragraph (3), for “(4)” substitute “ (3A) ”.

After that sub-paragraph insert—

In paragraph 6(1) (meaning of instrument being certified at an amount), for “paragraph” substitute “ paragraphs 1(3A) and ”.

The amendments made by this section have effect in relation to instruments executed on or after 13 March 2008 and not stamped before 19 March 2008.

For the purposes of section 14(4) of the Stamp Act 1891 (c. 39) (instruments not to be given in evidence etc unless stamped in accordance with the law in force at the time of first execution), the law in force at the time of execution of an instrument—shall be deemed to be the law as varied in accordance with this section.

Schedule 32 contains provision abolishing fixed stamp duty on certain instruments.

The amendments and saving made by that Schedule have effect in relation to instruments executed on or after 13 March 2008 and not stamped before 19 March 2008.

For the purposes of section 14(4) of the Stamp Act 1891 (instruments not to be given in evidence etc unless stamped in accordance with the law in force at the time of first execution), the law in force at the time of execution of an instrument—shall be deemed to be the law as varied in accordance with Schedule 32.

In FA 1985, omit section 82(5) and (9) (adjudication of certain gifts inter vivos).

Accordingly, omit paragraph 9 of Schedule 14 to FA 1999.

The amendments made by this section have effect in relation to instruments executed on or after 13 March 2008, other than instruments effecting a land transaction (within the meaning of paragraph 22 of Schedule 32).

For the purposes of section 14(4) of the Stamp Act 1891 (instruments not to be given in evidence etc unless stamped in accordance with the law in force at the time of first execution), the law in force at the time of execution of such an instrument shall be deemed to be the law as varied in accordance with this section.

Section 79 of FA 1986 (stamp duty and loan capital) is amended as follows.

In subsection (6), for “subsection (7)” substitute “ subsections (7) to (7B) ”.

After subsection (7A) insert—

After subsection (12) insert—

The amendments made by this section have effect in relation to any instrument executed on or after the day on which this Act is passed.

In section 12 of OTA 1975 (interpretation of Part 1), the definition of “participator” is amended as follows.

In the words before paragraph (a), after “chargeable period” insert “ (“the relevant chargeable period”) ”.

In paragraphs (a), (b) and (c), for “that chargeable period” substitute “ the relevant chargeable period ”.

At the end of paragraph (c) insert.

The amendments made by this section have effect in relation to expenditure incurred after 30 June 2008.

In Schedule 5 to OTA 1975 (allowance of expenditure, other than abortive exploration expenditure), for paragraph 2A substitute—

The amendment made by subsection (1) has effect in relation to expenditure incurred after 30 June 2008.

Section 62 of FA 1987 (returns of relevant sales of oil) is amended as follows.

After subsection (3) insert—

In subsection (4), for the words before paragraph (a) substitute—.

In subsection (4), in paragraphs (d), (e) and (f), for “oil” (in each place) substitute “ Category 2 oil ”.

In subsection (6)—

After subsection (8) insert—

The amendments made by this section have effect in relation to chargeable periods ending on or after 30 June 2008.

Section 185 of FA 1993 is amended as follows.

Before subsection (1) insert—

In subsection (1)—

After that subsection insert—

In subsection (1A), before paragraph (a) insert—.

Before Schedule 21 to FA 1993, insert Schedule 20A that is set out in Part 1 of Schedule 33 to this Act.

Part 2 of Schedule 33 contains other amendments relating to the amendments made by this section.

In section 52(3) of CAA 2001 (amount of first-year allowances), for the two entries in the table relating to section 45F substitute—.

The amendment made by subsection (1) has effect in relation to expenditure incurred on or after 12 March 2008.

Section 163 of CAA 2001 (meaning of “abandonment expenditure”) is amended as follows.

For the heading substitute “ Meaning of “general decommissioning expenditure”.

For subsections (1) to (3) substitute—

After subsection (4) insert—

In subsection (5)(b), omit “ “abandonment programme”,”.

Schedule 34 contains amendments consequential on this section.

The amendments made by this section and that Schedule have effect in relation to expenditure incurred on or after 12 March 2008.

Section 165 of CAA 2001 (abandonment expenditure within 3 years of ceasing ring fence trade) is amended as follows.

In the heading, for “within 3 years of” substitute “ after ”.

For subsection (2) substitute—

After subsection (4) insert—

After subsection (5) insert—

Section 393A of ICTA (losses: set off against profits of the same, or an earlier, accounting period) is amended as follows.

In subsection (11)—

After that subsection insert—

The amendments made by this section have effect in relation to ring fence trades that cease to be carried on or after 12 March 2008.

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

Schedule 35 contains minor and consequential amendments relating to the amendments made by this section.

The amendments made by this section and that Schedule have effect in relation to losses incurred in accounting periods beginning on or after 12 March 2008.

Schedule 36 contains provision about the powers of officers of Revenue and Customs to obtain information and to inspect businesses.

That Schedule comes into force on such day as the Treasury may by order made by statutory instrument appoint.

An order under subsection (2) may contain transitional provision and savings.

This section applies to any enactment that, in connection with an HMRC matter—

An enactment to which this section applies has effect as if—

An authorised person may, at any reasonable time, obtain access to, and inspect and check the operation of, any computer and any associated apparatus or material which is or has been used in connection with a relevant document.

In subsection (3) “relevant document” means a document that a person has been, or may be, required pursuant to an enactment to which this section applies—

An authorised person may require—to provide the authorised person with such reasonable assistance as may be required for the purposes of subsection (3).

Any person who—is liable to a penalty of £300.

Paragraphs 45 to 49 and 52 of Schedule 36 (assessment of and appeals against penalties) apply in relation to a penalty under this section as they apply in relation to a penalty under paragraph 39 of that Schedule.

Omit the following—

In this section—“authorised person” means a person who is, or is a member of a class of persons who are, authorised by the Commissioners to exercise the powers under subsection (3),“the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs,“enactment” includes an enactment contained in subordinate legislation (within the meaning of the Interpretation Act 1978 (c. 30)),“HMRC matter” means a matter in relation to which the Commissioners, or officers of Revenue and Customs, have a power or duty, and“produce”, in relation to a document, includes furnish, deliver and any other equivalent expression.

Schedule 37 contains provision about the obligations to keep records for the purposes of income tax, capital gains tax, corporation tax and value added tax.

The amendments made by that Schedule come into force on such day as the Treasury may by order made by statutory instrument appoint.

Schedule 38 contains amendments relating to the disclosure of tax avoidance schemes.

The amendments made by that Schedule come into force on such day as the Treasury may by order made by statutory instrument appoint; and different days may be appointed for different purposes.

CEMA 1979 is amended as follows.

In section 1(1) (interpretation), in the definition of “container”, after “and any” insert “ baggage, ”.

Section 159 (power to examine and take account of goods) is amended as follows.

In subsection (1)—

In subsection (4), insert at the end “ ; but if an officer opens or unpacks any container, or searches it or anything in it, the Commissioners are to bear the expense of doing so. ”

Schedule 39 contains provision about time limits for assessments, claims etc.

The amendments and saving made by that Schedule come into force on such day as the Treasury may by order made by statutory instrument appoint.

An order under subsection (2)—

In section 9ZB(1) of TMA 1970 (correction of personal or trustee return by HMRC)—

In section 12ABB(1) of that Act (correction of partnership return by HMRC)—

Schedule 18 to FA 1998 (company tax returns) is amended as follows.

In paragraph 16(1) (correction of company tax return by HMRC)—

In paragraph 31 (amendment of return by company during enquiry), in sub-paragraph (4), for paragraph (b) substitute—

In paragraph 34 (amendment of company tax return after enquiry), for sub-paragraphs (1) and (2) substitute—

In sub-paragraph (3) of that paragraph, for “any such amendment of a company's return” substitute “ an amendment of a company's return under sub-paragraph (2) or (2A) ”.

In sub-paragraph (4)(c) of that paragraph, for “notice of amendment” substitute “ closure notice ”.

In paragraph 61(1)(a) and (3)(a) (consequential claims etc), for “34(2)(b)” substitute “ 34(2A) ”.

In paragraph 88 (conclusiveness of amounts stated in return)—

In paragraph 93(1)(b) (general jurisdiction of Special or General Commissioners), for “34(2)” substitute “ 34 ”.

In the following provisions, for “34(2)” substitute “ 34 ”

The amendments made by this section come into force on such day as the Treasury may by order appoint.

In section 73 of VATA 1994 (assessment of overpaid VAT credits etc), after subsection (6) insert—

Section 80 of that Act (credit for, or repayment of, overstated or overpaid VAT) is amended as follows.

After subsection (4A) insert—

In subsection (4C), for “(2)” substitute “ (3) ”.

The amendments made by this section are treated as having come into force on 19 March 2008.

The requirement in section 80(4) of VATA 1994 that a claim under that section be made within 3 years of the relevant date does not apply to a claim in respect of an amount brought into account, or paid, for a prescribed accounting period ending before 4 December 1996 if the claim is made before 1 April 2009.

The requirement in section 25(6) of VATA 1994 that a claim for deduction of input tax be made at such time as may be determined by or under regulations does not apply to a claim for deduction of input tax that became chargeable, and in respect of which the claimant held the required evidence, in a prescribed accounting period ending before 1 May 1997 if the claim is made before 1 April 2009.

In this section—“input tax” and “prescribed accounting period” have the same meaning as in VATA 1994 (see section 96 of that Act), and“the required evidence” means the evidence of the charge to value added tax specified in or under regulation 29(2) of the Value Added Tax Regulations 1995 (S.I. 1995/2518).

This section is treated as having come into force on 19 March 2008.

Schedule 40 contains provisions amending Schedule 24 to FA 2007 (penalties for errors in returns etc).

That Schedule comes into force on such day as the Treasury may by order appoint.

An order under subsection (2)—

The Treasury may by order make any incidental, supplemental, consequential, transitional, transitory or saving provision which may appear appropriate in consequence of, or otherwise in connection with, Schedule 24 to FA 2007 or Schedule 40.

An order under subsection (4) may include provision amending, repealing or revoking any provision of any Act or subordinate legislation whenever passed or made (including this Act and any Act amended by it).

An order under subsection (4) may make different provision for different purposes.

The power to make an order under this section is exercisable by statutory instrument.

A statutory instrument containing an order under subsection (4) which includes provision amending or repealing any provision of an Act is subject to annulment in pursuance of a resolution of the House of Commons.

Schedule 41 contains provisions for imposing penalties on persons in respect of failures to notify HMRC that they are chargeable to tax etc and certain wrongdoings relating to invoices showing VAT and excise duties.

That Schedule comes into force on such day as the Treasury may by order appoint.

An order under subsection (2)—

The Treasury may by order make any incidental, supplemental, consequential, transitional, transitory or saving provision which may appear appropriate in consequence of, or otherwise in connection with, Schedule 41.

An order under subsection (4) may include provision amending, repealing or revoking any provision of any Act or subordinate legislation whenever passed or made (including this Act and any Act amended by it).

An order under subsection (4) may make different provision for different purposes.

The power to make an order under this section is exercisable by statutory instrument.

A statutory instrument containing an order under subsection (4) which includes provision amending or repealing any provision of an Act is subject to annulment in pursuance of a resolution of the House of Commons.

The Treasury may by order made by statutory instrument make provision—

An order under subsection (1) may, in particular, contain provision about—

An order under subsection (1) may, in particular, contain provision about the payment of sums by, or to, the Commissioners in cases where—

That includes provision about payment of sums where an appeal has been determined, but a further appeal may be or has been made, including provision—

An order under subsection (1) may, in particular, contain provision about interest on any sum that is payable by, or to, the Commissioners in accordance with a decision made on the determination of an appeal.

Provision under subsection (1) may be made by amending, repealing or revoking any provision of any Act or subordinate legislation (whenever passed or made, including this Act and any Act amended by it).

An order under subsection (1) may—

A statutory instrument containing an order under subsection (1) may not be made unless a draft of it has been laid before and approved by resolution of the House of Commons.

But if the order, or any other order under subsection (1) contained in the statutory instrument, is made in connection with a transfer of functions carried out under the Tribunals, Courts and Enforcement Act 2007 (c. 15), the statutory instrument may only be made if a draft of it has been laid before and approved by resolution of each House of Parliament.

In this section—

In this section—“the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs;“HMRC decision” means—any decision of the Commissioners relating to an HMRC matter, or any decision of an officer of Revenue and Customs relating to an HMRC matter, and references to an HMRC decision include references to anything done by such a person in connection with making such a decision or in consequence of such a decision;“HMRC matter” means any matter connected with a function of the Commissioners or an officer of Revenue and Customs.

Schedule 42 contains amendments of FA 1994 making certain decisions about alcoholic liquor duties subject to review and appeal.

The amendments made by that Schedule have effect in relation to decisions made on or after the day on which this Act is passed.

In paragraph 2(1)(s) of Schedule 5 to FA 1994 (decisions under section 157 of CEMA 1979 subject to review and appeal)—

The amendments made by subsection (1) have effect in relation to decisions made on or after the day on which this Act is passed.

This section applies if a person does not pay a sum that is payable by that person to the Commissioners under or by virtue of an enactment or under a contract settlement.

The Commissioners may use the procedure in Schedule 12 to the Tribunals, Courts and Enforcement Act 2007 (c. 15) (taking control of goods) to recover that sum.

This section extends to England and Wales only.

This section applies if a person does not pay a sum that is payable by that person to the Commissioners under or by virtue of any enactment or under a contract settlement.

An officer of Revenue and Customs may apply to the sheriff for a summary warrant.

An application under subsection (2) must be accompanied by a certificate which—

A certificate complies with this subsection if—

Subsection (4)(a)(iii) does not apply to an application under subsection (2) insofar as it relates to—

The sheriff must, on an application by an officer of Revenue and Customs under subsection (2), grant a summary warrant in, or as nearly as may be in, the form prescribed by Act of Sederunt.

A summary warrant granted under subsection (6) authorises the recovery of the sum payable by—

Subject to subsection (9) and without prejudice to section 39(1) of the Debt Arrangement and Attachment (Scotland) Act 2002 (asp 17) (expenses of attachment)—in connection with the execution of a summary warrant are to be chargeable against the person in relation to whom the warrant was granted.

No fees are to be chargeable by the sheriff officer against the person in relation to whom the summary warrant was granted for collecting, and accounting to the Commissioners for, sums paid to that officer by that person in respect of the sum payable.

This section extends to Scotland only.

Part 1 of Schedule 43 contains provision consequential on section 127.

Part 2 of that Schedule contains provision consequential on section 128.

The extent of the amendments and repeals in Schedule 43 is the same as the provision amended or repealed.

Sections 127 and 128 and Schedule 43 come into force on such day as the Commissioners may by order made by statutory instrument appoint.

An order under subsection (4) may—

This section applies where there is both a credit and a debit in relation to a person.

The Commissioners may set the credit against the debit (subject to section 131 and any obligation of the Commissioners to set the credit against another sum).

The obligations of the Commissioners and the person concerned are discharged to the extent of any set-off under subsection (2).

“Credit”, in relation to a person, means—

For the purposes of subsection (4), in relation to a person, “relevant sum” means a sum that was paid in connection with any liability (including any purported or anticipated liability) of that person to make a payment to the Commissioners under or by virtue of an enactment or under a contract settlement.

“Debit”, in relation to a person, means a sum that is payable by the person to the Commissioners under or by virtue of an enactment or under a contract settlement.

In this section references to sums paid, repaid or payable by or to a person (however expressed) include sums that have been or are to be credited by or to a person.

This section has effect without prejudice to any other power of the Commissioners to set off amounts.

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

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

This section applies where—

The Commissioners may not use the power under section 130 to set that post-insolvency credit against a pre-insolvency debit in relation to the person.

“Post-insolvency credit” means a credit that—

“Pre-insolvency debit” means a debit that—

Subject to subsection (6), an insolvency procedure is to be taken, for the purposes of this section, to be applied to a person when—

In this section references to the application of an insolvency procedure to a person do not include—

For the purposes of this section—

In this section—“administrative receiver” means an administrative receiver within the meaning of section 251 of the Insolvency Act 1986 (c. 45) or Article 5(1) of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)),“administrator” means a person appointed to manage the affairs, business and property of another person under Schedule B1 to that Act or to that Order,“credit” and “debit” have the same meaning as in section 130,“deed of arrangement” means a deed of arrangement registered in accordance with ... Chapter 1 of Part 8 the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)), and“voluntary arrangement” means a voluntary arrangement approved in accordance with Part 1 or Part 8 of the Insolvency Act 1986 (c. 45) or Part 2 or Chapter 2 of Part 8 of the Insolvency (Northern Ireland) Order 1989.

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

Section 81 of VATA 1994 (set-off of credits etc) is amended as follows.

For subsection (4C) substitute—

In subsection (5)—

This section applies where there has been a transfer from one person (“the original creditor”) to another person (“the current creditor”) of a right to be paid a sum (“the transferred sum”) by the Commissioners.

The Commissioners—

Subsection (2) applies whether the sum payable by the original creditor to the Commissioners first became payable before or after the transfer (but not if it only became payable after the Commissioners discharged their obligation to pay the transferred sum to the current creditor).

The following are discharged to the extent of any set-off under this section—

An obligation under or by virtue of an enactment (other than this section) to set the transferred sum against a sum payable to the Commissioners by a person other than the original creditor has effect subject to the obligation under subsection (2)(a) and to any exercise of the power under subsection (2)(b).

A power under or by virtue of an enactment (other than this section) or under a rule of law to set the transferred sum against a sum payable to the Commissioners by a person other than the original creditor has effect subject to the obligation under subsection (2)(a).

In determining the sum (if any) to be paid, the Commissioners may make any reduction that they could have made if the original creditor had retained the right to be paid the transferred sum (in addition to any other reduction that they are entitled to make), including a reduction arising from any defence to a claim for the sum.

In this section—

Where the right to be paid the transferred sum is dependent on the making of a claim—

This section has effect where the right to be paid the transferred sum was transferred from the original creditor on or after 25 June 2008.

Section 939 of ITA 2007 (duty to retain bonds where issue treated as payment of interest) is amended as follows.

After subsection (4) insert—

Omit subsection (5).

In ITA 2007, after section 940 insert—

The amendments made by this section have effect in relation to funding bonds issued on or after 12 March 2008.

This section applies in any case where the Commissioners agree that the payment of a relevant sum may be deferred by reason of circumstances arising as a result of a disaster or emergency specified in an order under this section (an “agreement for deferred payment”).

In subsection (1) “relevant sum” means a sum to meet any liability to the Commissioners that—

No interest on the amount deferred is chargeable in respect of the relief period and no liability to a surcharge on the deferred amount arises during that period.

The relief period , in relation to a deferred amount, is the period—

The agreement for deferred payment ceases to have effect at the end of the period of deferment specified in the agreement or, if the Commissioners agree to extend (or further extend) that period by reason of circumstances arising as a result of the disaster or emergency, with the end of that extended (or further extended) period.

If the agreement for deferred payment is an agreement for payment by instalments, the period of deferment in relation to each instalment ends with the date on or before which that instalment is to be paid; but if an instalment is not paid by the agreed date and the Commissioners do not agree to extend the period of deferment, the whole of the agreement for deferred payment is to be treated as ceasing to have effect on that date.

This section applies whether the agreement for deferred payment was made—

If in any case the Commissioners are satisfied that, although no agreement for deferred payment was made, one could have been made, this section applies as if one had been made; and the terms of the notional agreement for deferred payment are to be assumed to be such as the Commissioners are satisfied would have been agreed in the circumstances.

An order under this section may be made only in relation to a disaster or emergency which the Treasury consider to be of national significance.

Such an order—

The power to make an order under this section is exercisable by the Treasury by statutory instrument.

A statutory instrument containing such an order is subject to annulment in pursuance of a resolution of the House of Commons.

In FA 2001, omit section 107 (interest on unpaid tax etc: foot and mouth disease); but the repeal of that section does not affect any agreement for deferred payment made before this Act is passed.

The Commissioners may by regulations provide that, where a person makes a payment to the Commissioners or a person authorised by the Commissioners using a method of payment specified in the regulations, the person must also pay a fee specified in, or determined in accordance with, the regulations.

A method of payment may only be specified in regulations made under this section if the Commissioners expect that they, or the person authorised by them, will be required to pay a fee or charge (however described) in connection with amounts paid using that method of payment.

Regulations under this section—

Regulations under this section are to be made by statutory instrument.

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

In section 25 of CRCA 2005 (conduct of civil proceedings)—

In section 66 of TMA 1970 (county court proceedings)—

Accordingly, in FA 1984, omit section 57(2).

In section 244 of IHTA 1984 (right to address court), omit “county court or”.

In paragraph 3 of Schedule 4 to the Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2) (recovery of contributions where income tax recovery provisions not applicable)—

In paragraph 5 of Schedule 12 to FA 2003 (stamp duty land tax)—

Nothing in subsections (2) to (6) affects proceedings commenced or brought in the name of a collector or authorised officer before this Act is passed.

In CRCA 2005, after section 25 insert—

Schedule 44 contains provisions consequential on this section.

In section 53 of IHTA 1984 (exceptions from charge on termination of interest in possession), for subsection (2A) substitute—

The amendment made by subsection (1) is treated as having come into force on 22 March 2006 (so that paragraph 14(3) of Schedule 20 to FA 2006 is treated as never having had effect).

In Chapter 2 of Part 3 of IHTA 1984 (interests in possession etc)—for “April” substitute “ October ”.

The amendments made by subsection (1) are treated as having come into force on 6 April 2008.

In Part 3 of FA 1994 (insurance premium tax), omit the following provisions (which relate to tax representatives)—

In consequence of the repeals made by subsection (1), omit sections 27(4) and (5) of FA 1997.

Section 65 of FA 1994 (insurance premium tax: liability of insured where insurer not established in United Kingdom) is amended as follows.

In subsection (1), for the words after “time” substitute

After that subsection insert—

VERA 1994 is amended as follows.

In section 10 (transfer and surrender of vehicle licences), omit subsections (2) and (3) and, in the heading, “and surrender”.

For section 19 (rebates on surrender of licences) substitute—

In section 22(1D) (requirement to furnish particulars etc in certain circumstances), omit paragraph (a) (surrender under section 10(2)).

In—(meaning of “expiry”), after “surrender” insert “ or ceasing to be in force under section 19(7) ”.

In consequence of the amendment made by subsection (3), omit section 14 of FA 2001.

The amendments made by this section come into force on 1 January 2009.

Part 1B of Schedule 1 to VERA 1994 (annual rates of duty: light goods vehicles) is amended as follows.

In paragraph 1J(a) and (b) (rates), after “a” insert “ pre-2007 or post-2008 ”.

In paragraph 1K (meaning of “lower-emission van”), for “ “lower-emission van”” substitute “pre-2007 lower-emission van”.

After paragraph 1L insert—

Section 61B of VERA 1994 (certificates as to reduced pollution) is amended as follows.

In subsection (1), after paragraph (b) insert—.

In paragraph (c) of that subsection, for “examination of an eligible vehicle, for the purposes of the determination mentioned in paragraph (b),” substitute “ Secretary of State to specify cases in which a determination is to be made only after an examination of an eligible vehicle ”.

In paragraph (d) of that subsection, for “for such an examination” substitute “ in respect of a determination ”.

In paragraph (e) of that subsection, for “on a prescribed examination,” substitute “ in accordance with the regulations, ”.

In subsection (3)—

In paragraph 19 of Schedule 6 to FA 2000 (exemption: electricity from renewable sources), omit sub-paragraph (4A) (coal mine methane to be regarded as renewable source).

Accordingly, omit—

The repeals and revocation made by this section have effect in relation to electricity generated on or after 1 November 2008.

Part 3 of FA 1996 (landfill tax) is amended as follows.

In section 53(4)(d) (withdrawal of approval of environmental body or regulatory body), for “approval of an environmental body or the regulatory body to be withdrawn” substitute “ the withdrawal of approval of an environmental body by the Commissioners or by the regulatory body, and the withdrawal of approval of the regulatory body by the Commissioners, ”.

In section 54(1) (review of Commissioners' decisions), after paragraph (c) insert—.

The amendments made by this section are treated as having come into force on 19 March 2008.

In section 30 of FA 1994 (rate of air passenger duty), after subsection (10) insert—

The amendment made by subsection (1) has effect in relation to any carriage of a passenger on an aircraft which begins on or after 1 November 2008.

FA 1986 is amended as follows.

In section 78(7) (stamp duty: loan capital), after paragraph (c) insert—

In section 79 (loan capital: instruments not chargeable to stamp duty), after subsection (8) insert—

In section 99 (stamp duty reserve tax: interpretation), after subsection (9) insert—

The amendments made by subsections (2) and (3) have effect in relation to instruments executed on or after the day on which this Act is passed (and for this purpose it does not matter when the arrangements falling within section 48A of FA 2005 are made).

The amendment made by subsection (4) has effect in relation to—(and for this purpose it does not matter when the arrangements falling within section 48A of FA 2005 or section 507 of CTA 2009 are made).

FA 2003 is amended as follows.

For the heading of section 73A substitute “ Sections 71A to 73: relationship with Schedule 7 ”.

After section 73A insert—

The amendment made by subsection (3) has effect in relation to alternative finance arrangements entered into on or after 12 March 2008.

The Treasury may by regulations make provision for raising money through alternative finance arrangements.

Regulations under subsection (1) must specify the purpose or purposes for which money may be raised through each kind of alternative finance arrangements that, under regulations under subsection (1), is available for raising money.

The Treasury may not raise money through a particular kind of alternative finance arrangements unless, in the Treasury's opinion, raising the money would be in accordance with the provision made under subsection (2) in relation to that kind of arrangements.

Regulations under subsection (2) may, in particular, specify a purpose or purposes for which money may be raised under the National Loans Act 1968 (c. 13).

Money to be raised under regulations made under this section—

Subsection (5) is subject to provision made in or under the regulations.

Schedule 46 contains further provision about regulations under this section.

In this section and Schedule 46 “alternative finance arrangements” means arrangements which in the Treasury's opinion—

This section applies if a person makes a claim which, in the Treasury's opinion, is a financial claim that concerns an Exchequer account.

The Treasury may pay money from any Exchequer account—

The reference in this section to a financial claim that concerns an Exchequer account includes, in particular, either of the following cases.

The first case is where a financial claim relates to—

The second case is where a financial claim relates to the exercise of functions that relate to an Exchequer account (whether the functions are exercisable by the Treasury or another person).

In this section—“Exchequer account” means—the Consolidated Fund, the Debt Management Account, the Exchange Equalisation Account, or the National Loans Fund; and a reference to an Exchequer account includes a reference to the assets or liabilities of the account;“financial claim” means a claim (whether or not legally enforceable) for the payment of an amount of money, including a claim in respect of—money paid or not paid by any person, interest earned or not earned by any person, or loss, costs or expenses incurred by any person;“government account” means—an Exchequer account, or any other account in which money is held by or on behalf of Her Majesty's Government in the United Kingdom.

This section applies to money to be paid under section 158 from—

In the case of the Consolidated Fund—

An issue made under subsection (2) shall be recorded in the daily account under section 15(5) of the Exchequer and Audit Departments Act 1866 (c. 39).

In the case of the National Loans Fund—

A payment made under subsection (4) shall be recorded in the daily account under section 1(2) of the National Loans Act 1968 (c. 13).

The Treasury may by order make provision for and in connection with giving effect to any existing HMRC concession.

“Existing HMRC concession” means a statement made by the Commissioners for Her Majesty's Revenue and Customs before the passing of this Act, and having effect at that time, that they will treat persons as if they were entitled to—to which they are not, or may not be, entitled in accordance with the law.

For this purpose “statement” means a statement of any sort, whether it was described as an extra-statutory concession, a statement of practice, an interpretation, a decision or a press release or in any other way.

The reference in subsection (2) to the Commissioners for Her Majesty's Revenue and Customs includes the Commissioners of Inland Revenue and the Commissioners of Customs and Excise.

An order under this section—

The power to make an order under this section is exercisable by statutory instrument.

No order is to be made under this section unless a draft of the order has been laid before, and approved by a resolution of, the House of Commons.

In section 1(6) of HODA 1979 (definition of “ultra low sulphur diesel”), omit paragraphs (b) and (c) (but not the “and” at the end of paragraph (c)).

The amendment made by subsection (1) is treated as having come into force on 4 September 2007.

Section 10 of the National Debt Act 1972 (c. 65) (national savings stamps and gift tokens) is amended as follows.

In subsection (2), after “tokens; and” insert “ (subject to regulations under subsection (2A)) ”.

After that subsection insert—

Section 16 of FA 2007 (EU emissions trading: charges for allocations) is amended as follows.

In subsection (4)(c), for “imposition and recovery of penalties” substitute “ creation of criminal offences, or for the imposition and recovery of civil penalties, ”.

After subsection (6) insert—

In this Act—“ALDA 1979” means the Alcoholic Liquor Duties Act 1979 (c. 4),“BGDA 1981” means the Betting and Gaming Duties Act 1981 (c. 63),“CAA 2001” means the Capital Allowances Act 2001 (c. 2),“CEMA 1979” means the Customs and Excise Management Act 1979 (c. 2),“CRCA 2005” means the Commissioners for Revenue and Customs Act 2005 (c. 11),“CTA 2009” means the Corporation Tax Act 2009,“CTA 2010” means the Corporation Tax Act 2010,“CTTA 1984” means the Capital Transfer Tax Act 1984 (c. 51),“HODA 1979” means the Hydrocarbon Oil Duties Act 1979 (c. 5),“ICTA” means the Income and Corporation Taxes Act 1988 (c. 1),“IHTA 1984” means the Inheritance Tax Act 1984 (c. 51),“ITA 2007” means the Income Tax Act 2007 (c. 3),“ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003 (c. 1),“ITTOIA 2005” means the Income Tax (Trading and Other Income) Act 2005 (c. 5),“OTA 1975” means the Oil Taxation Act 1975 (c. 22),“TCGA 1992” means the Taxation of Chargeable Gains Act 1992 (c. 12),“TMA 1970” means the Taxes Management Act 1970 (c. 9),“TPDA 1979” means the Tobacco Products Duty Act 1979 (c. 7),“VATA 1994” means the Value Added Tax Act 1994 (c. 23), and“VERA 1994” means the Vehicle Excise and Registration Act 1994 (c. 22).

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

Section 10 (income charged at main rates: individuals) is amended as follows.

Omit subsection (1).

For subsection (2) substitute—

In subsection (4), omit the entry relating to section 12.

Insert at the end—

Accordingly, in the heading, omit “starting,”.

Section 17 (repayment: tax paid at basic rate instead of starting rate or savings rate) is amended as follows.

In subsection (1), for “starting or savings rate” substitute “ starting rate for savings ”.

Accordingly, in the heading, for “starting or savings rate” substitute “ starting rate for savings ”.

Section 21 (indexation of starting and basic rate limits) is amended as follows.

Omit subsection (2).

After subsection (3) insert—

In subsection (4), for “(2) and (3)” substitute “ (3) and (3A) ”.

In subsection (5)—

Accordingly, in the heading, for “starting rate limit and the basic rate limit” substitute “ basic rate limit and starting rate limit for savings ”.

Section 158 (form and amount of EIS relief) is amended as follows.

In subsection (2), for “savings rate” substitute “ EIS rate ”.

After that subsection insert—

Section 498 (types of income tax for purposes of section 497) is amended as follows.

In subsection (1), in Type 3A, for “savings rate” substitute “ basic rate ”.

In that subsection, in Type 4, omit “or at the savings rate”.

In subsection (2A), for “savings rate” substitute “ basic rate ”.

Section 989 (definitions) is amended as follows.

In the definition of “basic rate limit”, for “20(2)” substitute “ 10 ”.

Omit the definition of “savings rate”.

For the definitions of “starting rate” and “starting rate limit” substitute—.

Schedule 4 (index of defined expressions) is amended as follows.

After the entry relating to “EIS” insert—.

For the entries relating to “starting rate” and “starting rate limit” substitute—.

Omit the entry relating to “savings rate”.

Section 530 (gains from contracts for life insurance etc: income tax treated as paid) is amended as follows.

In subsection (1), for “savings rate” substitute “ basic rate ”.

Omit subsection (6).

Section 680A (income treated as savings income or dividend income) is amended as follows.

In subsection (1)—

Omit subsection (2).

In subsection (3), for the words from the beginning to “it” substitute “ The income ”.

In subsection (4)—

Omit subsection (5).

In subsection (6), for the words from the beginning to “it” substitute “ The income ”.

Accordingly, in the heading omit “savings income or”.

Schedule 4 (index of defined expressions) is amended as follows.

For the entry relating to “starting rate” substitute—.

Omit the entry relating to “savings rate”.

Schedule 4A (disposal of interest in settled property: deemed disposal of underlying assets) is amended as follows.

In paragraph 7—

In paragraph 12—

Schedule 4B (transfers of value by trustees linked with trustee borrowing) is amended as follows.

In paragraph 1(1), omit “77,”.

In paragraph 3, omit—and in the heading before it omit “77,”.

Section 28 (vulnerable person's liability: VQTI) is amended as follows.

In subsection (1), after “total” (in both cases) insert “ income ”.

In subsection (2), omit “and capital gains tax”.

In subsection (4), omit paragraph (b) and the “and” before it.

In subsection (7), omit paragraph (b) and the “and” before it.

Section 31 (UK resident vulnerable persons: section 77 treatment) is amended as follows.

For subsections (2) and (3) substitute—

In the heading, for “section 77 treatment” substitute “ amount of relief ”.

Section 32 (non-UK resident vulnerable persons: amount of relief) is amended as follows

In subsection (2), for the definition of VQTG substitute— “ VQTG is the amount arrived at under subsection (3). ”

After that subsection insert—

Schedule 1 (non-UK resident vulnerable persons: interpretation) is amended as follows.

Omit paragraphs 1 and 2.

Omit paragraph 4.

In paragraph 7(1), for “paragraphs 4 and 6” substitute “ paragraph 6 ”.

Section 2 (chargeable gains and allowable losses) is amended as follows.

For subsections (4) to (6) substitute—

In subsection (7), omit—

Omit subsection (8).

Section 3 (annual exempt amount) is amended as follows.

In subsection (5), for the words from “which, after” to the end of paragraph (c) substitute “ which ”.

In subsection (5C)(c)—

Section 62 (death) is amended as follows

In subsection (2A), for “brought into account for that year by virtue of section 2(5)(b)” substitute “ treated as accruing by virtue of section 87 or 89(2) (read, where appropriate, with section 10A) ”.

Omit subsection (2B).

Section 86A (attribution of gains to settlor in section 10A cases) is amended as follows.

In subsection (2)—

Omit subsection (2A).

Omit subsection (2B).

In subsection (7), for “the tapered section 10A amount” substitute “ the amount (or aggregate amount) falling in accordance with that section to be so attributed ”.

Omit subsection (7A).

Section 279C (effect of election under section 279A) is amended as follows.

For subsections (3) and (4) substitute—

In subsection (6)(c), for “the provisions specified in subsection (8) below” substitute “ amounts of chargeable gains treated as accruing in that later year by virtue of section 87 or 89(2) (read, where appropriate, with section 10A) ”.

Omit subsection (8).

Omit subsection (10).

Paragraph 6 (gains attributed to settlor) is amended as follows.

In sub-paragraph (1), for “the tapered amount of any chargeable gains” substitute “ the amount of any chargeable gains ”.

Omit sub-paragraph (1A).

The amendments made by paragraph 31(2) and (3) have effect where the intervening year is the tax year 2008-09 or any subsequent tax year.

The amendments made by paragraphs 41 and 43 have effect where the eligible year is the tax year 2008-09 or any subsequent tax year.

The other amendments made by paragraphs 23 to 55 have effect in relation to chargeable gains accruing or treated as accruing in the tax year 2008-09 or any subsequent tax year.

Section 35 (assets held on 31 March 1982) is amended as follows.

In subsection (2)—

After that subsection insert—

In subsection (3)(d), for the words after “any of” substitute “ the no gain/no loss provisions. ”

In subsection (4), for “him” substitute “ that person ”.

In subsection (5), for “him” (in both places) substitute “ that person ”.

In subsection (6), omit—

In subsection (7), for “him” substitute “ that person ”.

In subsection (9), after “effect” insert “ for the purposes of corporation tax ”.

In subsection (10), insert at the end “ for the purposes of capital gains tax and corporation tax ”.

Schedule 2 (assets held on 6 April 1965) is amended as follows.

Omit paragraph 1(3).

In paragraph 4—

In paragraph 17(3) omit—

Omit paragraph 22.

Schedule 3 (assets held on 31 March 1982) is amended as follows.

In paragraph 1—

In paragraph 2(1) and (3), omit “58 or”.

FA 1997 is amended as follows.

In section 89(8)(a) (earn-out rights), for “enactments specified in section 35(3)(d) of that Act” substitute “ no gain/no loss provisions (within the meaning of that Act: see section 288(3A) of that Act) ”.

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