UKPGA-2009-10 Finance Act 2009 UK

Income tax is charged for the tax year 2009-10.

For that tax year—

For the tax year 2009-10 the amount specified in section 10(5) of ITA 2007 (basic rate limit) is replaced with “£37,400”.

Accordingly, section 21 of that Act (indexation of limits), so far as relating to the basic rate limit, does not apply for that tax year.

For the tax year 2009-10 the amount specified in—(personal allowance for those aged under 65) is replaced with “£6,475”.

Accordingly—(indexation) do not apply for the tax year 2009-10.

In section 35 of ITA 2007 (personal allowances for those aged under 65), the existing provision becomes subsection (1) of that section; and after that subsection insert—

In sections 36(2)(b) and 37(2)(b) of ITA 2007 (limit on reduction of personal allowances for those aged 65 to 74 or 75 and over), for “the amount of a personal allowance under section 35” substitute “ the amount of any allowance to which the individual would be entitled under section 35 if under the age of 65 throughout the tax year ”.

In section 57(1)(a) and (3)(a) of ITA 2007 (indexation of allowances), for “35” substitute “ 35(1) ”.

The amendments made by subsections (1) and (2) have effect for the tax year 2010-11 and subsequent tax years.

The amendment made by subsection (3) has effect for finding allowances for the tax year 2011-12 and subsequent tax years.

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

In subsection (1), omit the “and” at the end of paragraph (b) and insert at the end

In subsection (3)(b), for “and dividend upper rate” substitute “ , dividend upper rate and dividend additional rate ”.

In section 9 (trust rate and dividend trust rate)—

Schedule 2 contains provision supplementing this section (including provision about rates under Part 4 of FA 2004).

The amendments made by this section have effect for the tax year 2010-11 and subsequent tax years.

Corporation tax is charged for the financial year 2010.

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.

For the financial year 2009 the small companies' rate is—

For the financial year 2009 the fraction mentioned in section 13(2) of ICTA is—

See section 7(3) of FA 2008 for provision applying section 3(3) to (7) of FA 2007 in relation to profits for an accounting period any part of which falls in the financial year 2009.

In this section “ring fence profits” has the meaning given by section 276 of CTA 2010.

The Value Added Tax (Change of Rate) Order 2008 (S.I. 2008/3020) (reducing standard rate of value added tax to 15 per cent) is to cease to be in force on 1 January 2010 (rather than ceasing to be in force on 1 December 2009 in accordance with section 2(2) of VATA 1994).

Schedule 3 contains—

Part 4 of FA 2003 (stamp duty land tax) has effect in relation to transactions with an effective date on or after 22 April 2009 but before 1 January 2010 as if—

The following are revoked—

The revocations made by subsection (2) have effect in relation to transactions with an effective date on or after 22 April 2009.

ALDA 1979 is amended as follows.

In section 5 (rate of duty on spirits), for “£21.35” substitute “ £22.64 ”.

In section 36(1AA)(a) (standard rate of duty on beer), for “£14.96” substitute “ £16.47 ”.

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

For the table in Schedule 1 substitute—

The following are revoked—

The amendments made by this section are treated as having come into force on 23 April 2009.

For the table in Schedule 1 to TPDA 1979 substitute—

The Alcoholic Liquor Duties (Surcharges) and Tobacco Products Duty Order 2008 (S.I. 2008/3026), so far as relating to excise duty on tobacco products, is revoked.

The amendments made by this section are treated as having come into force at 6 pm on 22 April 2009.

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)—

The amendments made by this section have effect in relation to licences taken out on or after 1 May 2009.

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

In paragraph 1(2) (vehicle not covered elsewhere in Schedule otherwise than with engine cylinder capacity not exceeding 1,549cc), for “£190” substitute “ £205 ”.

Paragraph 1B (graduated rates for light passenger vehicles) is amended as follows.

For “table” substitute “ tables ”.

Omit the “and” at the end of paragraph (a).

Insert at the end of paragraph (b)

For the table substitute—

In paragraph 1J(a) (light goods vehicle which is not lower-emission van), for “£185” substitute “ £200 ”.

Schedule 4 contains further provision about rates of vehicle excise duty etc.

The amendments made by this section have effect in relation to licences taken out on or after 1 April 2010.

HODA 1979 is amended as follows.

In section 6(1A) (main rates)—

In section 6AA(3) (rate of duty on biodiesel), for “£0.3235” substitute “ £0.3419 ”.

In section 6AD(3) (rate of duty on bioethanol), for “£0.3235” substitute “ £0.3419 ”.

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 “£0.0966” substitute “ £0.1 ”.

In section 14A(2) (rebate on certain biodiesel), for “£0.1007” substitute “ £0.1042 ”.

The amendments made by subsection (2)(b) and (c) are treated as having come into force on 1 May 2009.

The other amendments made by this section are treated as having come into force on 1 April 2009.

HODA 1979 is amended as follows.

In section 6(1A) (main rates)—

In section 6AA(3) (rate of duty on biodiesel), for “£0.3419” substitute “ £0.3619 ”.

In section 6AD(3) (rate of duty on bioethanol), for “£0.3419” substitute “ £0.3619 ”.

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 “£0.1” substitute “ £0.1037 ”.

In section 14A(2) (rebate on certain biodiesel), for “£0.1042” substitute “ £0.1080 ”.

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

In section 30 of FA 1994 (air passenger duty: rates), for subsections (1) to (4) substitute—

Schedule 5 contains further provision about air passenger duty.

The amendment made by subsection (1) has effect in relation to the carriage of passengers beginning on or after 1 November 2009.

In section 42(1)(a) and (2) of FA 1996 (amount of landfill tax), for “£40” substitute “ £48 ”.

The amendments made by subsection (1) have effect in relation to disposals made (or treated as made) on or after 1 April 2010.

In section 11(2) of FA 1997 (rates of gaming duty), for the table substitute—

The amendment made by subsection (1) has effect in relation to accounting periods beginning on or after 1 April 2009.

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 4 pm on 22 April 2009.

BGDA 1981 is amended as follows.

Section 21 (gaming machine licences) is amended as follows.

Subsection (5) (excepted machines) is amended as follows.

In paragraph (c) (machines in case of which cost of single game does not exceed 10p and maximum value of prize for winning single game does not exceed £5)—

After that paragraph insert—.

After that subsection insert—

In section 22(2) (machine in respect of which benefits for winning single game do not exceed £8 to be “small-prize machine”), for “£8” substitute “ £10 ”.

Section 23 (amount of duty) is amended as follows.

In subsection (3) (categories of machines), in the definition of Category C gaming machine, in paragraph (ii)—

Omit subsection (5) (which is superseded by the amendment made by subsection (6)).

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

The amendments made by this section are treated as having come into force on 1 June 2009.

Part 2 of CAA 2001 (plant and machinery allowances) has effect as if—

Expenditure is first-year qualifying expenditure under this section if—

For the purposes of this section expenditure is incurred in 2009-2010—

General exclusion 6 in section 46(2) of CAA 2001 (expenditure on provision of plant or machinery for leasing) does not prevent expenditure being first-year qualifying expenditure under this section if the plant or machinery is provided for leasing under an excluded lease of background plant or machinery for a building (as defined by section 70R of that Act).

Expressions used in this section and in Part 2 of CAA 2001 have the same meaning here as in that Part of that Act, subject to subsection (6).

In determining whether expenditure is incurred in 2009-2010, any effect of section 12 of CAA 2001 (expenditure incurred before qualifying activity carried on) on the time at which it is to be treated as incurred is to be disregarded.

If—all relevant enactments are to have effect with such modifications as are necessary or expedient to give effect to the agreement.

The Treasury may not designate arrangements for the purposes of this section unless—

If P forgoes (to any extent) tax relief or a right to tax relief under subsection (1)—

In this section—“relevant enactments” means—the Corporation Tax Acts, and the enactments relating to petroleum revenue tax;“tax relief” means—a reduction (by any means) of P's liability to any tax, or a payable tax credit.

This section has effect in relation to arrangements made on or after 22 April 2009; but that does not prevent subsections (1) and (3) from having effect in relation to times before 22 April 2009.

Chapter 2 of Part 4 of ITTOIA 2005 (interest) is amended as follows.

In section 369(2) (list of provisions extending what is treated as interest for certain purposes), after “bonds),” insert— “ section 380A (FSCS payments representing interest), ”.

After section 380 insert—

In ITA 2007, after section 979 insert—

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

Chapter 2 of Part 4 of ITTOIA 2005 (interest) is amended as follows.

In section 369(2) (list of provisions extending what is treated as interest for certain purposes), after the entry relating to section 376 insert— “ section 378A (offshore fund distributions), ”.

After section 378 insert—

Accordingly, in section 367 of ITTOIA 2005 (priority between Chapters within Part 4), in subsection (3)—

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

CTA 2009 is amended as follows.

In section 353 (introduction to Chapter 6 of Part 5)—

In section 476(1) (definitions for purposes of Parts 5 and 6), after the definition of “profit sharing arrangements” insert—.

Section 479 (relevant non-lending relationships not involving discounts) is amended as follows.

In subsection (2)—

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

After that subsection insert—

Section 481 (application of Part 5 to relevant non-lending relationships) is amended as follows

In subsection (3)—

In subsection (4), for “(3)” substitute “ (3)(d) and (e) ”.

After that subsection insert—

The amendments made by this section are treated as having come into force on 22 April 2009.

The Treasury may by regulations make provision for and in connection with—

Regulations under this section may, in particular, make provision—

Regulations under this section may, in particular—

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 this section—“company” has the same meaning as in Chapter 4 of Part 24 of CTA 2010 (see section 1165(1) of that Act) (investment trusts);“investment trust” means an investment trust within the meaning of section 1158 of CTA 2010;“loan relationship” has the same meaning as in the Corporation Tax Acts (see section 302(1) and (2) of CTA 2009);“prospective investment trust” means a company that—intends to seek approval under section 1158 of CTA 2010 (meaning of “investment trust”), and has a reasonable belief that such approval will be obtained;“specified” means specified in regulations under this section.

The Treasury may by regulations provide for section 444BA of ICTA (equalisation reserves) to have effect, in such cases and subject to such modifications as may be specified in the regulations, in relation to equivalent Lloyd's reserves as it has effect in relation to equalisation reserves maintained by virtue of equalisation reserves rules.

For this purpose a reserve is an equivalent Lloyd's reserve if it is maintained by a corporate or partnership member for purposes, or in a manner, such as to make it equivalent to an equalisation reserve maintained by virtue of equalisation reserves rules.

The regulations may include—

In this section—“corporate member” means a body corporate which is a member of Lloyd's;“equalisation reserves rules” has the same meaning as in section 444BA of ICTA (see subsection (11) of that section);“member” means underwriting member;“partnership member” means a limited partnership formed under the law of Scotland, or a limited liability partnership formed under the law of any part of the United Kingdom, which is a member of Lloyd's.

Schedule 26 contains provision amending Chapter 4 of Part 6 of ITTOIA 2005 (SAYE interest).

The amendments made by that Schedule are treated as having come into force on 29 April 2009.

In Part 14 of ITA 2007 (income tax: miscellaneous rules), after Chapter 1 insert—

In section 2(14) of ITA 2007 (overview), after paragraph (a) insert—.

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

Chapter 6 of Part 3 of ITEPA 2003 (taxable benefits: cars etc) is amended as follows.

In section 116(3) (meaning of when car is available), after “to section” insert “ 124A or ”.

In section 121(1) (method of calculating cash equivalent of benefit of car), in step 1, for “124” substitute “ 124A ”.

In section 122 (price of car), the existing provision becomes subsection (1) of that section and after that subsection insert—

After section 124 insert—

The amendments made by this section have effect for the tax year 2009-10 and subsequent tax years.

Part 4 of ITEPA 2003 (employment income: exemptions) is amended as follows.

In section 266(3) (exemption of non-cash vouchers for exempt benefits), omit the “or” at the end of paragraph (e) and insert at the end

In section 267(2) (exemption of credit-tokens used for exempt benefits), omit the “and” at the end of paragraph (g) and insert at the end

After section 320A insert—

The amendments made by this section have effect for the tax year 2009-10 and subsequent tax years.

Part 2 of TIOPA 2010 (double taxation relief) has effect as if tax for the benefit of the European Union payable in respect of any income under—of the Statute for Members of the European Parliament (2005/684/EC, Euratom) were payable under the law of a territory outside the United Kingdom.

In section 291(2)(c) of ITEPA 2003 (termination payments under section 3 of European Parliament (Pay and Pensions) Act 1979), insert at the end “ or under Article 13 of the Statute for Members of the European Parliament (transitional allowances), ”.

This section has effect for the tax year 2009-10 and subsequent tax years.

ITEPA 2003 is amended as follows.

In section 346 (deduction for employee liabilities), after subsection (2) insert—

After section 556 insert—

The amendments made by this section have effect in relation to payments made on or after 12 January 2009 (irrespective of when the arrangements are made).

In section 128 of ITA 2007 (employment loss relief against general income), after subsection (5) insert—

The amendment made by subsection (1)—

Where a person has made a claim under section 128 of ITA 2007 during the relevant period, no penalty is payable by the person on the ground that any return, statement or declaration made in connection with the claim contained an inaccuracy if it would not have done so but for the amendment made by subsection (1). For this purpose “the relevant period” is the period—

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Part 8 of CTA 2009 (intangible fixed assets) is amended as follows.

In section 712(1) (meaning of “intangible asset”), insert at the end “ (and includes an internally-generated intangible asset) ”.

In section 715 (application of Part 8 to goodwill)—

In section 883 (assets treated as created or acquired when expenditure incurred)—

In section 884 (internally-generated goodwill: time of creation)—

In section 885 (certain other internally-generated assets: time of creation)—

The amendments made by this section have effect in relation to accounting periods beginning on or after 22 April 2009 (and, in relation to those accounting periods, are to be treated as always having had effect).

For the purposes of subsection (7) an accounting period beginning before, and ending on or after, 22 April 2009 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.

Chapter 5 of Part 3 of ITEPA 2003 (taxable benefits: living accommodation) is amended as follows.

In section 105 (cash equivalent: cost of accommodation not over £75,000)—

After that section insert—

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

In relation to a lease of the kind mentioned in subsection (4)(b) the amendments made by this section have effect—

In this section “lease premium” has the same meaning as in sections 105A and 105B of ITEPA 2003.

The Treasury may by regulations make provision for and in connection with—

“The financial assistance scheme” means the scheme provided for by regulations under section 286 of the Pensions Act 2004.

The provision that may be made by regulations under this section includes provision imposing any of the relevant taxes (as well as provisions for exemptions or reliefs).

The relevant taxes are—

Regulations under this section may, in particular, include provision for and in connection with the taxation of payments made by virtue of regulations under section 286 of the Pensions Act 2004.

The exemptions and reliefs that may be given by regulations under this section include, in particular, exemption from charges to income tax, corporation tax or capital gains tax in respect of—

Regulations under this section may include provision having effect in relation to any time before they are made if the provision does not increase any person's liability to tax.

The provision made by regulations under this section may be framed as provision applying with appropriate modifications provisions having effect in relation to registered pension schemes; and for this purpose “registered pension scheme” means a pension scheme within the meaning of Part 4 of FA 2004 which is registered under Chapter 2 of that Part of that Act.

Regulations under this section may include—

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.

The Treasury may by regulations make provision for and in connection with the application of the relevant taxes in relation to circumstances in which there is relevant intervention under the FSCS.

“Relevant intervention” means—

“The FSCS” means the Financial Services Compensation Scheme (established under Part 15 of FISMA 2000).

The provision that may be made by regulations under this section includes provision imposing any of the relevant taxes (as well as provisions for exemptions or reliefs).

The relevant taxes are—

Regulations under this section may include provision having effect in relation to any time before they are made if the provision does not increase any person's liability to tax.

The provision made by regulations under this section may be framed as provision modifying, or applying with appropriate modifications, provisions having effect in relation to registered pension schemes.

Regulations under this section may include—

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 this section “registered pension scheme” means a pension scheme within the meaning of Part 4 of FA 2004 which is registered under Chapter 2 of that Part of that Act.

In section 282 of FA 2004 (orders and regulations under Part 4), insert at the beginning—

In consequence of the amendment made by subsection (1), omit the following provisions of Part 4 of FA 2004—

In consequence of subsection (2), omit—

VATA 1994 is amended as follows.

In subsection (3) of section 39 (repayment of VAT to those in business overseas)—

After that section insert—

In section 83(1) (appeals), after paragraph (h) insert—.

In paragraph 4(2) of Schedule 2 to the Agricultural Holdings Act 1986 (frequency of arbitrations of rent: changes in rent to be disregarded), insert at the end—

Paragraph 4(2)(d) of Schedule 2 to that Act (as inserted by subsection (1)) includes an increase or reduction of rent arising from an option, revocation or change in rate that takes effect before the day on which this Act is passed.

The references in that provision and in subsection (2) to an option to tax, or to the exercise or revocation of such an option, under Schedule 10 to VATA 1994 include a reference to an election to waive exemption, or to the making or revocation of such an election, under that Schedule (as it had effect before 1 June 2008).

Section 74 of FA 2003 (collective enfranchisement by leaseholders) is amended as follows.

For subsection (1) substitute—

In subsection (2)—

For subsection (4) substitute—

For the heading substitute “Exercise of collective rights by tenants of flats”.

Accordingly, in section 55(5) of that Act (amount of tax chargeable), for “collective enfranchisement by leaseholders” substitute “ exercise of collective rights by tenants of flats ”.

The amendments made by this section have effect in relation to transactions with an effective date on or after 22 April 2009.

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

Section 71 (certain acquisitions by registered social landlord) is amended as follows.

Insert at the beginning—

In subsection (4), for “subsection (1)(c)” substitute “ this section ”.

Schedule 9 (right to buy etc) is amended as follows.

In paragraph 5 (shared ownership leases: “qualifying body” etc)—

In paragraph 7 (shared ownership trusts: introduction)—

The amendments made by this section have effect in relation to transactions with an effective date on or after the day on which this Act is passed.

In Schedule 9 to FA 2003 (stamp duty land tax: right to buy etc), insert at the end—

The amendment made by subsection (1) has effect in relation to cases in which the effective date of the grant of the shared ownership lease or the declaration of the shared ownership trust is on or after 22 April 2009.

Paragraphs 13(4) and 14(4) of Schedule 9 to FA 2003 (inserted by this section) have effect for the purposes of subsection (2).

Schedule 37 contains provision amending Part 3 (stamp duty) and Part 4 (stamp duty reserve tax) of FA 1986 in respect of repurchase and stock lending arrangements in the event of the insolvency of one of the parties.

The amendments made by that Schedule have effect where the insolvency in question occurs on or after 1 September 2008.

This section and that Schedule cease to have effect—

In CRCA 2005, after section 16 insert—

The duty imposed by section 16A(1) of CRCA 2005 must be complied with before the end of 2009.

Schedule 46 contains provision about the duties of senior accounting officers of qualifying companies.

That Schedule has effect in relation to financial years (within the meaning of the Companies Act 2006) beginning on or after the day on which this Act is passed.

The Commissioners may publish information about any person if—

A “relevant tax penalty” is—

“Potential lost revenue”, in relation to a penalty, has the meaning given by—in relation to the inaccuracy, failure or action to which the penalty relates.

The information that may be published is—

Subsection (4B) applies where a person who is a body corporate or a partnership has incurred—

The Commissioners may publish the information mentioned in subsection (4) in respect of any individual who—

Subsection (4D) applies where one or more trustees of a settlement have incurred—

The Commissioners may publish the information mentioned in subsection (4) in respect of any trustee who is an individual and who has obtained a tax advantage as a result of the inaccuracy or failure.

The information may be published in any manner that the Commissioners consider appropriate.

Before publishing any information about a person under subsection (1), the Commissioners must—

Before publishing any information about an individual under subsection (4B) or (4D), the Commissioners—

No information may be published before the day when the penalty becomes final (or the latest day when any of the penalties becomes final).

No information may be published for the first time after the end of the period of one year beginning with that day (or that latest day).

No information may be published (or continue to be published) after the end of the period of one year beginning with the day on which it is first published.

No information may be published if the amount of the penalty is reduced under—(reductions for disclosure) to the full extent permitted.

For the purposes of this section a penalty becomes final—

The Treasury may by order vary the amount for the time being specified in subsection (1).

This section comes into force on a day appointed by order made by the Treasury.

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

A statutory instrument containing an order under subsection (12) is subject to annulment in pursuance of a resolution of the House of Commons.

In this section—“the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs;“tax advantage” has the meaning given by section 208 of FA 2013.

Schedule 47 contains amendments of Schedule 36 to FA 2008 (information and inspection powers).

The Treasury may by order make any incidental, supplemental, consequential, transitional or transitory provision or saving which appears appropriate in consequence of, or otherwise in connection with, Schedule 36 to FA 2008 or Schedule 47.

An order under this section may—

An order under this section is to be made by statutory instrument.

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

In paragraph 63(1) of Schedule 36 to FA 2008 (information and inspection powers: meaning of “tax”), for paragraph (e) (and the “and” before it) substitute—.

Schedule 48 contains further amendments of that Schedule.

The amendments made by this section and Schedule 48 come into force on such day as the Treasury may by order appoint.

An order under subsection (3) may—

The Treasury may by order make any incidental, supplemental, consequential, transitional or transitory provision or saving which appears appropriate in consequence of, or otherwise in connection with, this section and Schedule 48.

An order under subsection (5) may—

An order under this section is to be made by statutory instrument.

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

Schedule 50 contains provision about obligations to keep records.

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

Schedule 51 contains provision about time limits for assessments, claims etc.

The amendments 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)—

Schedule 52 contains provision for and in connection with the recovery of overpaid income tax, capital gains tax and corporation tax.

The amendments made by that Schedule have effect in relation to claims made on or after 1 April 2010.

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

An order under this section may—

“Modifying” includes amending, repealing or revoking.

An order under this section is to be made by statutory instrument.

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

This section applies to any amount that is payable by a person to HMRC under or by virtue of an enactment.

But this section does not apply to—

An amount to which this section applies carries interest at the late payment interest rate from the late payment interest start date until the date of payment.

The late payment interest start date in respect of any amount is the date on which that amount becomes due and payable.

In Schedule 53—

Subsection (3) applies even if the late payment interest start date is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882.

Late payment interest is to be paid without any deduction of income tax.

Late payment interest is not payable on late payment interest.

For the purposes of this section any reference to the payment of an amount to HMRC includes a reference to its being set off against an amount payable by HMRC (and, accordingly, the reference to the date on which an amount is paid includes a reference to the date from which the set-off takes effect).

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This section applies to—

But this section does not apply to—

An amount to which this section applies carries interest at the repayment interest rate from the repayment interest start date until the date on which the payment or repayment is made.

In Schedule 54—

Subsection (3) applies even if the repayment interest start date is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882.

Repayment interest is not payable on an amount payable in consequence of an order or judgment of a court having power to allow interest on the amount.

Repayment interest is not payable on repayment interest.

For the purposes of this section—

The late payment interest rate is the rate provided for in regulations made by the Treasury under this subsection.

The repayment interest rate is the rate provided for in regulations made by the Treasury under this subsection.

Regulations under subsection (1) or (2)—

In sections 101 to 103A (and Schedules 53 to 54A) —“HMRC” means Her Majesty's Revenue and Customs;“late payment interest” means interest payable under section 101;“repayment interest” means interest payable under section 102;“revenue” has the meaning given in section 5(4) of CRCA 2005.

A reference to the date on which an amount becomes due and payable is a reference to the date (however described) on or before which the amount must be paid.

Sections 101 to 103 come into force on such day as the Treasury may by order appoint.

An order under subsection (3)—

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, those sections.

An order under subsection (5) 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 (5) may make different provision for different purposes.

The following are to be made by statutory instrument—

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

Section 239 of ITA 2007 (date from which interest is chargeable when EIS relief is withdrawn or reduced) is amended as follows.

In subsection (1)—

For subsection (2) substitute—

In the following provisions, for the words from “the same rate” to the end substitute “ the rate applicable under section 178 of the Finance Act 1989 ”

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

The following provisions (which require HMRC to make an order specifying the new rate of interest when that rate is changed by operation of regulations) are omitted—

Schedule 55 contains provision for imposing penalties on persons in respect of failures to make returns and other documents relating to liabilities for tax.

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 55.

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.

An order under this section is to be made 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 56 contains provision for imposing penalties on persons in respect of failures to comply with obligations to pay tax.

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 56.

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.

An order under this section is to be made 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.

This section applies if—

P is not liable to a penalty for failing to pay the amount mentioned in subsection (1) if—

But if—P becomes liable, at the date of the notice, to that penalty.

P breaks an agreement if—

The taxes and penalties referred to in subsections (1) and (2) are—

If the agreement mentioned in subsection (1)(c) is varied at any time by a further agreement between P and an officer of Revenue and Customs, this section applies from that time to the agreement as varied.

The Treasury may by order amend the Table by adding or removing a tax or a penalty.

An order under subsection (7) is to be made by statutory instrument.

A statutory instrument containing an order under subsection (7) is subject to annulment in pursuance of a resolution of the House of Commons.

In this section, except in the entries in the Table, “penalty” includes surcharge and penalty interest.

This section has effect where the agreement mentioned in subsection (1)(c) is made on or after 24 November 2008.

Section 4 of F(No.2)A 1992 (cases in which customs and excise enforcement powers can be used in relation to movement of persons or things between member States) is amended as follows.

In subsection (1), after “subsection” insert “ (1A) or ”.

After that subsection insert—

In subsection (2), for the words from the beginning to “or that” substitute “ The second case in which a power to which this section applies may be exercised as mentioned in subsection (1) above is where ”.

Group 4 of Schedule 9 to VATA 1994 (exemptions: betting, gaming and lotteries) is amended as follows.

In Note (1), omit paragraph (b) (granting of right to play game of chance not exempted unless within Note (5)).

Omit Notes (5) to (11).

The Value Added Tax (Betting, Gaming and Lotteries) Order 2007 (S.I. 2007/2163) is revoked.

Omit—

The amendments made by this section are treated as having come into force on 27 April 2009.

FA 1997 is amended as follows.

Section 10 (gaming duty) is amended as follows.

For subsection (2) substitute—

In subsection (3)(e), after “Article” insert “ 77, ”.

After subsection (3A) insert—

In subsection (3C)(a), after “in” insert “ organising or ”.

For subsection (4) substitute—

In subsection (5), for “add to the games mentioned in subsection (2) above” substitute “ provide that any specified game is or is not to be a casino game or equal chance gaming for the purposes of this section ”.

In subsection (6), for “this section, or in an order under subsection (5) above,” substitute “ an order under subsection (5) above ”.

Section 14 (subordinate legislation) is amended as follows.

In subsection (2), for “or 11(11) above” substitute “ providing that any game is to be a casino game or equal chance gaming or any order under section 11(11) ”.

Insert at the end—

Section 15(3) (interpretation) is amended as follows.

After the definition of “accounting period” insert—.

After the definition of “dutiable gaming” insert—.

In consequence of the preceding provisions, omit—

The amendments made by this section are to be treated as having come into force on 27 April 2009.

But those amendments do not give rise to a duty under paragraph 6(3)(a) of Schedule 1 to FA 1997 (requirement to notify premises) before 25 May 2009.

BGDA 1981 is amended as follows.

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

In section 26H (remote gaming duty: exemptions), after subsection (2) insert—

The amendments made by this section have effect in relation to games of bingo that begin to be played on or after 1 July 2009.

BGDA 1981 is amended as follows.

Section 25 (meaning of “amusement machine”) is amended as follows.

For subsection (1A) substitute—

In subsection (1C), for “constructed” substitute “ designed ”.

Insert at the end—

In section 33 (interpretation)—

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

In paragraph 44 (reduced rate for supplies covered by climate change agreement), after sub-paragraph (2) insert—

In consequence of subsection (2)—

Schedule 59 contains provision for removing the reduced rate of climate change levy where the targets set by a climate change agreement have not been met.

The amendments made by that Schedule have effect where the certification period begins on or after 1 April 2009.

HODA 1979 is amended as follows.

In section 11(1) (rebate on heavy oil), omit “12”.

In section 14D(2) (civil penalty for supplying biodiesel or bioblend intending that it will be put to prohibited use), for “intending” substitute “ having reason to believe ”.

The amendment made by subsection (3) has effect in relation to supplies on or after the day on which this Act is passed.

Part 5 of IHTA 1984 (miscellaneous reliefs) is amended as follows.

In section 115 (agricultural property relief: preliminary), in subsection (3), insert at the end “(or, in the case of property outside the United Kingdom, the Channel Islands and the Isle of Man, if it were subject to provisions equivalent in effect to such a covenant).”

For subsection (5) of that section substitute—

In section 116 (agricultural property relief: the relief), insert at the end—

In section 125 (woodlands relief), in paragraph (a) of subsection (1), omit “in the United Kingdom”.

After that subsection insert—

The amendments made by this section have effect in relation to transfers of value where the tax payable but for this section (or, in the case of tax payable by instalments, the last instalment of that tax)—

Where tax falling within subsection (7) has been paid, Her Majesty's Revenue and Customs must repay the tax (together with interest under section 235(1) of IHTA 1984) if, but only if, a claim for repayment is made on or before—whichever is later.

Where, by virtue of the amendments made by subsections (5) and (6), an election is made under section 125 of IHTA 1984, that election must be made on or before—whichever is later.

The Treasury may by regulations make provision for and in connection with—

“Mutual society” means—

Regulations under this section may, in particular, make provision about—

Regulations under this section may, in particular—

Regulations under this section may include provision having effect in relation to any time before they are made if the provision does not increase any person's liability to tax.

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 this section—“arrangements” includes any arrangements, scheme or understanding of any kind, whether or not legally enforceable and whether involving a single transaction or two or more transactions;“company” means a company formed and registered under the Companies Act 2006 (or treated as formed and registered under that Act);“derivative contract” has the same meaning as in Part 7 of CTA 2009 (see section 576 of that Act);“goodwill” and “intangible fixed asset” have the same meaning as in Part 8 of CTA 2009 (see sections 713 and 715 of that Act);“loan relationship” has the same meaning as in the Corporation Tax Acts (see section 302(1) and (2) of CTA 2009);“modify” includes amend, repeal or revoke;“tax” includes stamp duty;“tax advantage” means—a relief from tax (including a tax credit) or increased relief from tax, a repayment of tax or increased repayment of tax, the avoidance, reduction or delay of a charge to tax or an assessment to tax, or the avoidance of a possible assessment to tax.

As soon as practicable after the passing of this Act—

The relevant surplus is the amount held by the Commissioners by virtue of section 17 of the 1971 Act (including any such amount held in investments), less the aggregate of—

The Commissioners—

As soon as practicable after preparing a statement under subsection (1), the Director of Savings and the Commissioners must transmit the statement to the Comptroller and Auditor General who must—

The Treasury may by order repeal or otherwise amend any enactment if the repeal or amendment appears to the Treasury to be necessary or expedient in consequence of—

An order under subsection (5) is to be made by statutory instrument.

No order may be made under subsection (5) unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, the House of Commons.

In this section—

In this section—“the 1971 Act” means the National Savings Bank Act 1971;“enactment” includes—an enactment contained in the 1971 Act, and subordinate legislation (which has the same meaning as in the Interpretation Act 1978).

In this Act—“ALDA 1979” means the Alcoholic Liquor Duties Act 1979,“BGDA 1981” means the Betting and Gaming Duties Act 1981,“CAA 2001” means the Capital Allowances Act 2001,“CRCA 2005” means the Commissioners for Revenue and Customs Act 2005,“CTA 2009” means the Corporation Tax Act 2009,“CTA 2010” means the Corporation Tax Act 2010,“FISMA 2000” means the Financial Services and Markets Act 2000,“HODA 1979” means the Hydrocarbon Oil Duties Act 1979,“ICTA” means the Income and Corporation Taxes Act 1988,“IHTA 1984” means the Inheritance Tax Act 1984,“ITA 2007” means the Income Tax Act 2007,“ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003,“ITTOIA 2005” means the Income Tax (Trading and Other Income) Act 2005,“OTA 1975” means the Oil Taxation Act 1975,“OTA 1983” means the Oil Taxation Act 1983,“PRTA 1980” means the Petroleum Revenue Tax Act 1980,“TCGA 1992” means the Taxation of Chargeable Gains Act 1992,“TIOPA 2010” means the Taxation (International and Other Provisions) Act 2010,“TMA 1970” means the Taxes Management Act 1970,“TPDA 1979” means the Tobacco Products Duty Act 1979,“VATA 1994” means the Value Added Tax Act 1994, and“VERA 1994” means the Vehicle Excise and Registration Act 1994.

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.

In the tables in Part 1 of Schedule 1 to CAA 2001, Part 1 of Schedule 1 to ITEPA 2003 and Part 1 of Schedule 4 to ITTOIA 2005, at the beginning insert—

Omit all of the entries in those tables relating to a Finance Act or a Finance (No.2) Act.

In the following provisions, for “the Finance Act” substitute “ FA ”

Accordingly, omit—

Section 266 (life assurance premiums) is amended as follows.

In subsection (1)—

After that subsection insert—

In subsection (3), omit “(7),”.

In subsection (4), for “subsections (7) and” substitute “ subsection ”.

Omit subsection (7).

In subsection (8), for “and is entitled to relief by virtue of section 278(2) or (2ZA)” substitute “ (but is entitled to relief by virtue of subsection (1A)(b)) ”.

Section 274 (limits on relief under sections 266 and 273) is amended as follows.

In subsection (1), omit “or other sums”.

In subsection (2)—

Omit subsection (3).

In subsection (4), omit “or other sum” (in both places).

In the heading, for “sections 266 and 273” substitute “ section 266 ”.

Section 6 (rates of income tax) is amended as follows.

In subsection (2), for “and higher rate” substitute “ , higher rate and additional rate ”.

In the heading, for “and higher rate” substitute “ , higher rate and additional rate ”.

Section 8 (dividend ordinary rate and dividend upper rate) is amended as follows.

Insert at the end—

In the heading, for “and dividend upper rate” substitute “ , dividend upper rate and dividend additional rate ”.

Section 10 (income charged at basic and higher rates: individuals) is amended as follows.

In subsection (3), insert at the end “and up to the higher rate limit.”

After that subsection insert—

After subsection (5) insert—

In subsection (6), for “is” substitute “ and higher rate limit are ”.

In the heading, for “and higher” substitute “ , higher and additional ”.

Section 13 (income charged at dividend ordinary and dividend upper rates: individuals) is amended as follows.

After subsection (2) insert—

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

In subsection (4), for “or higher” substitute “ , higher or additional ”.

In the heading, for “and dividend upper” substitute “ , dividend upper and dividend additional ”.

Section 989 (definitions) is amended as follows.

After the definition of “Act” insert—.

After the definition of “distribution” insert—.

After the definition of “higher rate” insert—.

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

After the entry relating to “Act” insert—

In the entry relating to “basic rate limit”, for “20(2)” substitute “ 10 ”.

After the entry relating to “dividends (in Chapter 1 of Part 13)” insert—

After the entry relating to “higher rate” insert—

Section 282 (orders and regulations) is amended as follows.

After subsection (1) insert—

In subsection (2), after “Part” insert “ , if made without a draft having been approved by a resolution of the House of Commons, ”.

Part 2 of Schedule 4 (index of defined expressions) is amended as follows.

After the entry relating to “acquisition expenditure (in Chapter 9 of Part 2)” insert—

After the entry relating to “distribution” insert—

The powers conferred by the amendments made by this Schedule may be exercised at any time on or after the day on which this Act is passed but not so as to make provision having effect before the tax year 2010-11.

Subject to that, the amendments made by this Schedule have effect for the tax year 2010-11 and subsequent tax years.

There is a supplementary charge on a supply of goods or services that is treated as taking place on or after 25 November 2008 if—

In this Schedule “the date of the VAT change” means 1 January 2010.

For the cases in which a supply, other than the grant of a right to goods or services, spans the date of the VAT change and the relevant conditions in relation to such a supply, see paragraph 2.

For the cases in which a supply consisting of the grant of a right to goods or services spans the date of the VAT change and the relevant conditions in relation to such a supply, see paragraph 3.

Sub-paragraph (1) has effect subject to the exceptions made by or under Part 2 of this Schedule.

In this Schedule—Part 3 contains provision about liability for, and the amount of, a supplementary charge under this Schedule, Part 4 contains special provision about listed supplies, and Part 5 contains provision about administration and interpretation.

A supplementary charge under this Schedule is to be treated for all purposes as if it were value added tax charged in accordance with VATA 1994.

For the purposes of this Schedule a supply of goods or services spans the date of the VAT change where—

The relevant conditions are—

Condition A is that the supplier and the person to whom the supply is made are connected with each other at any time in the period—

Paragraph 5 modifies condition A in cases involving a series of supplies.

Condition B is that the aggregate of the following is more than £100,000—

Condition C is that a prepayment in respect of the supply is financed by the supplier or a person connected with the supplier (see paragraph 7).

In sub-paragraph (6) “prepayment”, in respect of a supply, means a payment that is received by the supplier before the basic time of supply.

Condition D is that full payment of the amount shown on the VAT invoice referred to in sub-paragraph (1)(a) is not due before the end of the period of 6 months beginning with the date on which the invoice is issued.

This paragraph does not apply in relation to a supply consisting of the grant of a right to goods or services (see paragraph 3).

For the purposes of this Schedule a supply consisting of the grant by a person (“the grantor”) of a right to goods or services spans the date of the VAT change where—

In relation to the grant of the right, the relevant conditions are conditions A to C.

Condition A is that the grantor and the person to whom the right is granted are connected with each other at any time in the period—

Paragraph 5 modifies condition A in cases involving a series of supplies.

Condition B is that the aggregate of the following is more than £100,000—

Condition C is that the payment made in respect of the grant of the right is financed by the grantor or a person connected with the grantor (see paragraph 7).

In this Schedule references to a right to goods or services include—

In this Schedule the “basic time of supply” is the time given by subsection (2) or (3) of section 6 of VATA 1994 (disregarding subsections (4) to (14) of that section).

Sub-paragraph (1) does not apply in relation to listed supplies (see Part 4 of this Schedule).

This paragraph applies where—

In condition A in paragraphs 2 and 3 the references to the supplier and the grantor include any person who makes one of the supplies or grants one of the rights in the series.

This paragraph applies for the purposes of condition B in paragraphs 2 and 3.

“Relevant consideration” means—but does not include any amount in respect of VAT.

A supply within paragraph 2(1), or a grant of a right within paragraph 3(1), is related to another such supply or grant if they are both made as part of the same scheme.

“Scheme” includes any arrangements, transaction or series of transactions.

This paragraph applies for the purposes of condition C in paragraphs 2 and 3.

A payment is financed by a person if, directly or indirectly, the person—

In sub-paragraph (2) the references to providing funds for a purpose are to—

The Treasury may by order amend this Part of this Schedule by adding, modifying or omitting relevant conditions.

An order under this paragraph—

This paragraph applies in relation to a supply within paragraph 2 which arises from the letting, hiring or rental of assets.

There is no supplementary charge under this Schedule if—

The Treasury may by order provide that there is no supplementary charge under this Schedule on supplies (including grants of rights to goods or services) of a description specified in the order.

An order under this paragraph may make provision having effect in relation to supplies of goods or services that are treated as taking place on or after 25 November 2008 or a later date.

A supplementary charge under this Schedule on a supply within paragraph 2—

A supplementary charge under this Schedule on a supply consisting of the grant of a right to goods or services within paragraph 3—

If, on the date on which the supplementary charge becomes due, the person who would be liable to pay the charge under sub-paragraph (1) or (2)—the supplementary charge is a liability of the representative member of the group.

The amount of the supplementary charge on a supply within paragraph 2 is equal to the difference between—

The amount of the supplementary charge on a grant of a right to goods or services within paragraph 3 is equal to the difference between—(but see sub-paragraph (3)).

If the basic time of supply for some of those goods and services is before the date of the VAT change, sub-paragraph (2) has effect as if the references to the amount of VAT chargeable and to the amount of VAT that would be chargeable were references to the relevant proportion of each of those amounts.

“The relevant proportion” is—P W where—P is so much of the consideration for the grant of the right as is attributable on a just and reasonable basis to a right to the goods and services for which the basic time of supply is on or after the date of the VAT change, and W is the whole of the consideration for the grant of the right.

In this Schedule “listed supply” means a supply falling within sub-paragraph (2)—

The following supplies fall within this sub-paragraph—

The Treasury may by order amend sub-paragraph (2) by—

For the purposes of this Schedule, in relation to a listed supply, “the basic time of supply” is the end of the period to which the VAT invoice or payment mentioned in paragraph 18(1) relates, except as provided in sub-paragraphs (2) and (4).

Where the person making the supply issues an invoice—

For the purposes of sub-paragraph (2) the listed supply (and the consideration for the supply) must be apportioned between periods on a just and reasonable basis.

Where a listed supply is treated as taking place by virtue of—

This paragraph applies if, on the date on which a supplementary charge under this Schedule becomes due (“the due date”), the person who is liable to pay the charge under paragraph 16 is not a taxable person.

The supplementary charge must be accounted for by that person in accordance with VATA 1994 (and regulations made under that Act) as if it were VAT due in the last period for which the person was required to make a return by or under VATA 1994.

If an amount assessed as due by way of supplementary charge under this Schedule would (in the absence of this sub-paragraph) carry interest from a date earlier than the due date, it is to be treated as only carrying interest from the due date.

This paragraph applies where—

The consideration for the supply is to be increased by an amount equal to the supplementary charge, unless the contract provides otherwise.

An order under this Schedule is to be made by statutory instrument.

A statutory instrument containing an order under this Schedule is subject to annulment in pursuance of a resolution of the House of Commons, unless it is an instrument to which sub-paragraph (4) applies.

Sub-paragraph (4) applies to a statutory instrument containing an order made under paragraph 10 (or under that paragraph and under other provisions) which extends the supplies that are subject to a supplementary charge under this Schedule.

An instrument to which this sub-paragraph applies—

In reckoning the period of 28 days no account is to be taken of any time during which Parliament is dissolved or prorogued or during which the House of Commons is adjourned for more than 4 days.

The order ceasing to have effect does not affect—

Expressions used in this Schedule and in VATA 1994 have the same meaning in this Schedule as in that Act.

In this Schedule—

VATA 1994 is amended as follows.

In section 2(2) (orders increasing or decreasing rate of VAT), after “such order” insert “ that has not previously expired or been revoked ”.

In section 97 (orders, rules and regulations), after subsection (4) insert—

Section 3 (duration of licences) is amended as follows.

In subsection (4)(b), for “a licence taken out on the first registration under this Act of” substitute “ the first vehicle licence for ”.

Insert at the end—

Section 19 (rebates) is amended as follows.

In subsection (1), for “from the Secretary of State the amount specified in subsection (2)” substitute “ the relevant amount from the Secretary of State ”.

Omit subsection (2).

After subsection (3) insert—

Section 62 (definitions) is amended as follows.

In subsection (1), after the definition of “exempt vehicle” insert—.

After subsection (1A) insert—

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

In paragraph 1A (vehicles to which Part 1A applies)—insert “, under this Act or under the law of a country or territory outside the United Kingdom,”.

In paragraph 1C (the reduced rate)—

In paragraph 1H (vehicles to which Part 1B applies)—insert “, under this Act or under the law of a country or territory outside the United Kingdom,”.

In paragraph 1K(a) (pre-2007 lower-emission vans), after “registered” insert “ , under this Act or under the law of a country or territory outside the United Kingdom, ”.

In paragraph 1M(a) (post-2008 lower-emission vans), after “registered” insert “ , under this Act or under the law of a country or territory outside the United Kingdom, ”.

Paragraph 25 of Schedule 2 (exempt vehicles: light passenger vehicles with low CO 2 emissions) is re-numbered as sub-paragraph (1) of that paragraph.

After that sub-paragraph insert—

The amendments made by this Schedule have effect in relation to licences taken out on or after 1 April 2010.

But the amendments made by paragraph 5 do not have effect in relation to vehicles first registered under this Act before that date.

Section 30 (rates of duty) is amended as follows.

After subsection (8) insert—

Omit subsections (9) to (9B).

No agreement for Chapter 4 of Part 1 of FA 1994 to have effect in relation to a registered operator in accordance with a special accounting scheme pursuant to section 39 of FA 1994 as substituted by paragraph 3 may be made so as to have effect as respects the carriage of passengers beginning before 1 November 2009.

Nothing in this Schedule affects the continuing operation of, or of schemes prepared under, that section as it has effect immediately before this Act is passed as respects the carriage of passengers beginning before 1 November 2009.

A person who has made a loss in a trade in the tax year 2008-09 or 2009-10 may make a claim for relief under this paragraph if—

Condition A is that the person makes a claim under that section for relief in respect of the section 64 amount—

Condition B is that—the person's total income is nil or does not include any income from which a deduction could be made in pursuance of a claim under that section for relief in respect of the section 64 amount.

The amount of the loss that may be relieved under this paragraph (“the deductible amount”) is—(but see sub-paragraph (12)).

A claim for relief under this paragraph is for the deductible amount to be deducted (in accordance with sub-paragraph (6) and with whichever is applicable of sub-paragraphs (7), (8), (9) and (10))—

A deduction is to be made only from profits of the trade (and accordingly, in relation to the tax years 2007-08 and 2008-09, subsection (2) of section 25 of ITA 2007 has effect as if this sub-paragraph were included in subsection (3) of that section).

This sub-paragraph explains how the deductions are to be made in a case where the loss is made in the tax year 2008-09 and the person makes a claim under section 64 of ITA 2007 for relief in respect of the section 64 amount for the tax year 2007-08. Step 1 Deduct the deductible amount from the profits of the trade for the tax year 2006-07. Step 2 Deduct from the profits of the trade for the tax year 2005-06 so much of the deductible amount as has not been deducted under Step 1.

This sub-paragraph explains how the deductions are to be made in any other case where the loss is made in the tax year 2008-09. Step 1 Deduct the deductible amount from the profits of the trade for the tax year 2007-08. Step 2 Deduct from the profits of the trade for the tax year 2006-07 so much of the deductible amount as has not been deducted under Step 1. Step 3 Deduct from the profits of the trade for the tax year 2005-06 so much of the deductible amount as has not been deducted under Step 1 or 2.

This sub-paragraph explains how the deductions are to be made in a case where the loss is made in the tax year 2009-10 and the person makes a claim under section 64 of ITA 2007 for relief in respect of the section 64 amount for the tax year 2008-09. Step 1 Deduct the deductible amount from the profits of the trade for the tax year 2007-08. Step 2 Deduct from the profits of the trade for the tax year 2006-07 so much of the deductible amount as has not been deducted under Step 1.

This sub-paragraph explains how the deductions are to be made in any other case where the loss is made in the tax year 2009-10. Step 1 Deduct the deductible amount from the profits of the trade for the tax year 2008-09. Step 2 Deduct from the profits of the trade for the tax year 2007-08 so much of the deductible amount as has not been deducted under Step 1. Step 3 Deduct from the profits of the trade for the tax year 2006-07 so much of the deductible amount as has not been deducted under Step 1 or 2.

The provision made by the preceding provisions means that the following sections of ITA 2007 apply in relation to relief under this paragraph as in relation to relief under section 64 of that Act—

The total amount that may be deducted in accordance with sub-paragraph (7), or in accordance with Steps 2 and 3 in sub-paragraph (8), is limited to £50,000; and the total amount that may be deducted in accordance with sub-paragraph (9), or in accordance with Steps 2 and 3 in sub-paragraph (10), is also limited to £50,000.

A claim for relief under paragraph 1 must be made—

Paragraph 1 applies to professions and vocations as it applies to trades.

Paragraph 1 is subject to paragraph 2 of Schedule 1B to TMA 1970 (claims for loss relief involving 2 or more years).

Sections 61 to 63 of ITA 2007 (meaning of “making a loss in a tax year” etc and prohibition against double counting) have effect as if paragraph 1 were included in Chapter 2 of Part 4 of that Act.

Subsections (1) to (3) of section 127 of that Act (UK furnished holiday lettings business treated as trade) have effect as if paragraph 1 were included in Part 4 of that Act.

The reference in paragraph 3(1) of Schedule 2 to the Social Security Contributions and Benefits Act 1992 and the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (levy of Class 4 contributions with income tax) to section 64 of ITA 2007 includes paragraph 1.

Sections 37(3)(b) and 38(1) and (3) of CTA 2010 (trade loss relief against profits of same or earlier accounting period) have effect in relation to any loss to which this paragraph applies as if the references to 12 months were references to 3 years (but subject as follows).

This paragraph applies to any loss incurred by a company in a trade in a relevant accounting period (but subject to sub-paragraph (3)); and a relevant accounting period is one ending after 23 November 2008 and before 24 November 2010.

The maximum amount of loss to which this paragraph applies in the case of any company is—and the overall limit or limits apply whether a loss is incurred by the company in only one relevant accounting period or losses are so incurred in more than one such period.

Subject to that, if in the case of the company the length of a relevant accounting period is less than one year, the maximum amount of the loss incurred in that period that may be relieved under section 37 of CTA 2010 by virtue of this paragraph is the relevant proportion of £50,000.

“The relevant proportion” is—RAP Y where—RAP is the number of days in the relevant accounting period, and Y is 365.

The reference in subsection (2) of section 40 of CTA 2010 to the loss mentioned in subsection (1)(a) of that section (so far as not a terminal loss and so far as not exceeding the allowance mentioned in subsection (1)(b) of that section) (“the section 40 loss”) has effect in relation to a relevant accounting period as a reference to so much of the section 40 loss as exceeds that which can be set off under section 37 by virtue of this paragraph.

Section 1143 (overview of Part) is amended as follows.

In subsection (1), after “contamination” insert “ or dereliction ”.

In subsection (7), after “contaminated” insert “ or derelict ”.

Section 1144 (“qualifying land remediation expenditure”) is amended as follows.

In subsection (1), for “E” substitute “ F ”.

In subsection (2), insert at the end “or a derelict state (see section 1145A)”.

In subsection (3), after “contaminated” insert “ or derelict ”.

For subsection (4) substitute—

In subsection (5), for paragraph (c) (and the “or” before it) substitute—

After subsection (6) insert—

Section 1146 (“relevant land remediation”) is amended as follows.

In subsection (1)—

In subsection (3)—

After that subsection insert—

In subsection (5), for the words after “(and only if)” substitute

In the heading, after “relevant” insert “ contaminated ”.

Section 1147 (deduction for capital expenditure) is amended as follows.

In subsection (2), after “that” insert “ a major interest in ”.

For subsection (3) substitute—

Section 1149 (additional deduction for qualifying land remediation expenditure) is amended as follows.

In subsection (2), after “that” insert “ a major interest in ”.

For subsection (3) substitute—

Section 1150 (no relief if company responsible for contamination) is amended as follows.

The existing provision becomes subsection (1) of that section.

In that subsection, for “state if the land is in that” substitute “ or derelict state if the land is in a contaminated or derelict ”.

After that subsection insert—

In the heading, insert at the end “or dereliction or polluter has interest”.

Section 1161 (relief in respect of I minus E basis: enhanced expenses payable) is amended as follows.

In subsection (2), after “that” insert “ a major interest in ”.

For subsection (3) substitute—

In subsection (4)—

Omit subsection (5).

In subsection (6), omit “150% of”.

In the heading, omit “enhanced”.

In the heading before the section omit “for qualifying Chapter 4 expenditure”.

Section 1163 (no relief if company responsible for contamination) is amended as follows.

The existing provision becomes subsection (1) of that section.

In that subsection—

After that subsection insert—

In the heading, insert at the end “or dereliction or polluter has interest”.

Section 1173 (expenditure incurred because of contamination) is amended as follows.

In subsections (1) and (2), after “contaminated” insert “ or derelict ”.

For subsection (3) substitute—

In the heading, insert at the end “or dereliction”.

Section 1175 (“qualifying expenditure on sub-contracted land remediation”: connected persons) is amended as follows.

After subsection (1) insert—

In subsection (2), for “sub-contracted land remediation” substitute “connected sub-contracted land remediation” for the purposes of section 1144(5)”.

In subsection (3)—

For the heading substitute “Connected sub-contractors”.

Schedule 4 to CTA 2009 (index of expressions) is amended as follows.

After the entry relating to “deposit back arrangements” insert—

Omit the entries relating to “harm (in Part 14)” and “land (in Part 14)”.

After the entry relating to “major interest (in Chapter 12 of Part 8)” insert—

After the entry relating to “relevant consortium creditor relationship (in Chapter 7 of Part 5)” insert—

After the entry relating to “relevant debits (in Part 8)” insert—

Omit the references relating to “relevant land remediation (in Part 14)”, “sub-contractor payment (and sub-contractor) (in Chapter 6 of Part 14)” and “substance (in Part 14)”.

Paragraph 1(2) (application of Schedule) is amended as follows.

For paragraphs (g) and (h) substitute.

In the words following the paragraphs, for “conditions in paragraphs (g) and (h) above do” substitute “ condition in paragraph (g) above does ”.

Paragraph 1A (failure of conditions of application) is amended as follows.

In sub-paragraph (4)—

Omit sub-paragraph (4A).

Paragraph 9 (other reconstructions and amalgamations) is amended as follows.

For sub-paragraph (1) substitute—

In sub-paragraph (2), for “Sub-paragraph (1) above shall not have effect to disapply section 135 or 136 where” substitute “ Sub-paragraph (1A) does not apply if ”.

For sub-paragraph (3) substitute—

Section 158 of ITA 2007 (form and amount of EIS relief) is amended as follows.

In subsection (4), omit—

Omit subsection (5).

Section 175 of that Act (use of money raised requirement) is amended as follows.

For subsection (1) substitute—

In subsection (2), for “requirements in subsection (1)(a) and (b) do” substitute “ requirement in subsection (1) does ”.

In subsection (3)—

Paragraph 36 of Schedule 15 to FA 2000 (corporate venturing scheme: requirement as to money raised) is amended as follows.

In sub-paragraph (1), for “At least 80%” substitute “ All ”.

Omit sub-paragraph (1A).

In sub-paragraph (1B), for “12 months” (in both places) substitute “ two years ”.

In sub-paragraph (1C), for “Sub-paragraphs (1) and (1A) are” substitute “ Sub-paragraph (1) is ”.

In sub-paragraph (5) omit “does not apply and the requirement of sub-paragraph (1A)”.

Section 293 of ITA 2007 (use of money raised requirement) is amended as follows.

For subsection (1) substitute—

Omit subsections (2) to (4).

The amendments made by paragraph 6 have effect as follows.

The amendments made by sub-paragraph (2) have effect in relation to shares issued in the tax year 2009-10 or a subsequent tax year.

The amendment made by sub-paragraph (3) has effect in relation to claims made under section 158(4) of ITA 2007 in respect of shares issued in the tax year 2009-10 or a subsequent tax year.

Section 104A (special rate expenditure) is amended as follows.

In subsection (1)—

In subsection (2), after “The” insert “ first ”.

After that subsection insert—

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

In subsection (1), for paragraph (c) substitute—.

In subsection (2), for “a car with low CO 2 emissions is a car which” substitute “ a car has low CO 2 emissions if it ”.

In subsection (3), for the words from “an EC certificate” to the end substitute “ a qualifying emissions certificate. ”

In subsection (4), for “in the case of” substitute “ in relation to ”.

Omit subsections (5) and (6).

In subsection (8)—

Omit subsections (9) and (10).

After subsection (10) insert—

In section 84 (cases in which short-life asset treatment is ruled out), the Table is amended as follows.

In item 3, for the words in the second column substitute “The car is a hire car for a disabled person (as defined by section 268D).”

In item 4, in the second column, insert “The expenditure is incurred on the provision of a car which is a hire car for a disabled person (as defined by section 268D)”.

In item 5, in the second column, for “within section 82(4) (cars hired out to persons receiving disability allowances etc)” substitute “ a hire car for a disabled person (as defined by section 268D) ”.

Section 86 (short-life assets) is amended as follows.

In subsection (2)(b), for “main pool” substitute “ appropriate pool ”.

After subsection (4) insert—

Part 2 of Schedule 1 (defined expressions) is amended as follows.

In the entry relating to “car (in Part 2)”, for “section 81” substitute “ section 268A ”.

Insert at the appropriate places—.

For the purposes of this Part of this Schedule “new expenditure” means—and expenditure that is not new expenditure is “old expenditure”.

This sub-paragraph applies to expenditure if—

For the purposes of sub-paragraph (2) an agreement is entered into on the date on which the following conditions are met—

The amendments made by this Part of this Schedule have effect in relation to new expenditure (subject to sub-paragraph (2)).

The repeal of section 79 of CAA 2001 and the amendments made by paragraphs 10 and 18 have effect in cases in which a person ceases to own a car or motor cycle if the expenditure incurred on the provision of the car or motor cycle is new expenditure.

The repeal of sections 74 to 78 of CAA 2001 and the amendments made by paragraphs 15 and 17 have effect in relation to old expenditure, but only for chargeable periods beginning on or after the third relevant date.

The repeal of section 79 of CAA 2001 and the amendment made by paragraph 18(a) have effect in cases in which a person ceases to own a car or motor cycle if the expenditure incurred on the provision of the car or motor cycle is old expenditure, but only for chargeable periods beginning on or after the third relevant date.