UKPGA-2015-33 Finance (No. 2) Act 2015 UK

For any tax year to which this section applies—

This section applies to a tax year—

The rate of value added tax for the time being in force under section 2 of VATA 1994 (standard rate) shall not exceed 20% during the VAT lock period.

The rate of value added tax for the time being in force under section 29A of VATA 1994 (reduced rate) shall not exceed 5% during the VAT lock period.

No supply specified in Schedule 7A to VATA 1994 (charge at reduced rate) at the beginning of the VAT lock period may be removed from it under section 29A(3) of that Act during that period.

No goods, services or supply specified in Schedule 8 to VATA 1994 (zero-rating) at the beginning of the VAT lock period may be removed from it under section 30(4) of that Act during that period.

In this section the “VAT lock period” means the period beginning with the day on which this Act is passed and ending immediately before the date of the first parliamentary general election after that day.

For the financial years 2017, 2018 and 2019 the main rate of corporation tax is 19%.

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

In section 51A of CAA 2001 (entitlement to annual investment allowance), for the amount specified in subsection (5) as the maximum allowance (which in the absence of this section would be £25,000 in relation to expenditure incurred on or after 1 January 2016) substitute “ £200,000 ”.

The amendment made by subsection (1) has effect in relation to expenditure incurred on or after 1 January 2016.

Subsection (2) is subject to paragraphs 4 and 5 of Schedule 2 to FA 2014 (which relate to cases involving chargeable periods which begin before 1 January 2016 and end on or after that day).

IHTA 1984 is amended as follows.

In section 7(1) (rates at which inheritance tax charged on the value transferred by a chargeable transfer) after “Subject to subsections (2), (4) and (5) below and to” insert “ section 8D and ”.

In section 8A(2) (test for whether person has unused nil-rate band on death), in the definition of M (maximum amount transferable at 0%), after “were sufficient but” insert “ that the maximum amount chargeable at nil per cent. under section 8D(2) is equal to the person's residence nil-rate amount and ”.

After section 8C insert—

Section 79 of IHTA 1984 (exemption from ten-yearly charge) is amended as follows.

In subsection (3)—

After that subsection insert—

In subsection (4), for the words from “subsection (3)” to “mentioned” substitute “ subsection (3A) above in respect of property if, after the occasion mentioned in subsection (3) above and before the occurrence mentioned in subsection (3A) ”.

In subsections (5), (5A), (6), (8)(a) and (9A)(a) for “subsection (3)” substitute “ subsection (3A) ”.

In subsection (7A), in paragraph (c), for the words from “day” to “section” substitute “ relevant ten-year anniversary ”.

In subsection (8)—

Accordingly, in that Act—

The amendments made by this section have effect in relation to occasions on which tax would (ignoring the effect of the amendments) fall to be charged under section 64 of IHTA 1984 on or after the day on which this Act is passed.

In section 80 of IHTA 1984 (initial interest of settlor or spouse or civil partner), for “an interest in possession”, in each place it appears, substitute “ a qualifying interest in possession ”.

The amendments made by this section come into force on the day after the day on which this Act is passed subject to the saving provision in subsections (3) to (7).

Subsections (4) to (7) apply where—and in subsections (4) to (7) “the protected property” means that property or, as the case may be, that particular part of it.

The amendments made by subsection (1) do not have effect in relation to any particular part of the protected property for so long as the subsisting interest in possession continues to subsist in that part (but see subsections (5) and (6) for what happens afterwards).

As from immediately before the time when the subsisting interest in possession comes to an end so far as subsisting in any particular part of the protected property (whether or not it also comes to an end at the same time so far as subsisting in some or all of the rest of the protected property), section 80(1) of IHTA 1984 has effect in relation to that part as if the second appearance of “an interest in possession” were “a qualifying interest in possession”.

If (ignoring this subsection), subsection (5) would have the consequence that a particular part of the protected property is treated as becoming comprised in a separate settlement at a time earlier than the time at which the subsisting interest in possession comes to an end so far as subsisting in that part, that part is to be treated as becoming comprised in a separate settlement at that later time.

In this section—

In section 144 of IHTA 1984 (distributions etc from property settled by will), in subsection (1)(b), after “section” insert “ 65(4), ”.

The amendment made by this section has effect in cases where the testator's death occurs on or after 10 December 2014.

In section 107 of FA 1986 (changes in financial institutions: interest)—

In Schedule 53 to FA 2009 (special provision: late payment interest start date)—

The amendments made by this section come into force on such day or days as the Treasury may by regulations made by statutory instrument appoint.

Regulations under subsection (3) may—

In CTA 2009, after section 133 insert—

The amendment made by this section has effect in relation to accounting periods beginning on or after the commencement date.

“The commencement date” means—

Subsection (5) applies where a company has an accounting period beginning before the commencement date and ending on or after that date (“the straddling period”).

For the purposes of sections 133A to 133N of CTA 2009—

In Part 7A of CTA 2010 (banking companies), in section 269CN (definitions), in the definition of “building society”, at the end insert “ except that it also includes a bank established under the Savings Bank (Scotland) Act 1819 ”.

The amendment made by this section is treated as having come into force on 1 April 2015.

Schedule 19 to FA 2011 (the bank levy) is amended in accordance with subsections (2) to (7).

In paragraph 12—

In paragraph 70—

In paragraph 72(3)(a), for “both a BIPRU 730k firm and a full scope BIPRU investment firm,” substitute “ an investment bank, ”.

In paragraph 73(1), for paragraph (f) substitute—.

In paragraph 78(1)(c)(ii), for “both a BIPRU 730k firm and a full scope BIPRU investment firm,” substitute “ an investment bank, ”.

In paragraph 80(1)(c)(ii) for “both a BIPRU 730k firm and a full scope BIPRU investment firm,” substitute “ an investment bank, ”.

The amendments made by subsections (1) to (7) are treated as having come into force on 1 January 2014.

Part 7A of CTA 2010 (banking companies) has effect, and is to be deemed always to have had effect, with the amendments set out in subsections (10) to (12).

In section 269B (meaning of “banking company”)—

In section 269BA (excluded entities), in subsection (1)(f), omit “or exempt BIPRU commodities firm”.

In section 269BC (banking companies: supplementary definitions)—

Section 206 of FA 2004 (special lump sum death benefits charge) is amended in accordance with subsections (2) to (5).

In each of subsections (1), (1A), (1B)(a) and (1C)(a) (which specify payments attracting the charge) after “paid” insert “ , to a non-qualifying person, ”.

In subsection (1B)(b) (payments attracting charge if paid more than 2 years after death of member under 75), before the “or” at the end of sub-paragraph (ii) insert—.

In subsection (7) (sums taxed under section 206 not income for income tax purposes), at the end insert “ (but see subsection (8)). ”

After subsection (7) insert—

In section 251(4) of FA 2004 (powers to impose information requirements), after paragraph (b) insert—.

In paragraph 16 of Schedule 32 to FA 2004 (benefit crystallisation event 7: defined benefits lump sum death benefit is a “relevant lump sum death benefit”)—

In Part 2 of Schedule 29 to FA 2004 (interpretation of lump sum death benefit rule), in paragraph 13 (defined benefits lump sum death benefit)—

In consequence of subsection (8), in paragraph 33 of Schedule 16 to FA 2011—

The amendments made by this section have effect in relation to lump sums paid on or after 6 April 2016.

Part 9 of ITEPA 2003 (pension income) is amended in accordance with subsections (2) to (7).

In section 636A (lump sums under registered pension schemes) for subsection (4) (certain death benefit lump sums) substitute—

In section 636A(1) (no liability to income tax on certain lump sum death benefits)—

In section 636A, after subsection (7) insert—

After section 636A insert—

In section 579CA as substituted by paragraph 117 of Schedule 45 to FA 2013 (pensions under registered pension schemes: temporary non-residents), in subsection (4) (which lists relevant withdrawals) as substituted by the Taxation of Pensions Act 2014—

In the version of section 579CA which has effect if the year of departure is the tax year 2012-13 or an earlier tax year, in subsection (3A) (which lists relevant withdrawals)—

In section 683 of ITEPA 2003 (meaning of “PAYE income”)—

In section 168(2) of FA 2004 (meaning of “lump sum death benefit”), at the end insert “ , or a lump sum payable in respect of the member on the subsequent death of a dependant, nominee or successor of the member. ”

In Schedule 34 to FA 2004 (application of certain charges to non-UK pension schemes)—

In consequence of subsections (2) and (3)—

The amendments made by subsections (2) to (8), (10) and (11) have effect in relation to lump sums paid on or after 6 April 2016.

The amendment made by subsection (9) is to be treated as having come into force on 15 July 2015.

ITTOIA 2005 is amended in accordance with subsections (2) to (6).

After section 272 insert—

In section 274(1)(b) (rules which override rules allowing deductions) after “as applied by section 272” insert “ , and to section 272A (finance costs) ”.

In section 274(3) (meaning of “relevant prohibitive rule”) after “as applied by section 272” insert “ , and apart also from section 272A ”.

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

In section 322 (which lists provisions relying on the definition of “commercial letting of furnished holiday accommodation”)—

In ITA 2007, after section 399 insert—

In section 26(1)(a) of ITA 2007 (tax reductions deductible at Step 6 of the calculation in section 23 of ITA 2007)—

In section 26(2) of ITA 2007 (tax reductions deductible at Step 6 of the calculation in section 23 of ITA 2007 in the case of taxpayer who is not an individual), before the “and” at the end of paragraph (a) insert—.

In section 192 of ITA 2007 (excluded activities for the purposes of sections 181 and 189 (and, by virtue of section 257HF(2), Part 5A)), in subsection (1)—

In section 303 of ITA 2007 (excluded activities for the purposes of sections 290 and 300), in subsection (1)—

The amendment made by subsection (1) has effect in relation to shares issued on or after 30 November 2015.

The amendment made by subsection (2) has effect in relation to relevant holdings issued on or after 30 November 2015.

In section 996 of ITA 2007 (meaning of “farming” and related expressions), omit subsection (7).

The amendment made by subsection (1)—

ITEPA 2003 is amended as follows.

In section 229(2) (mileage allowance payments), for “section 236(1))” substitute “ sections 235A and 236(1)) ”.

After section 235 insert—

In section 236 (interpretation of Chapter 2 of Part 4), after subsection (1) insert—

After section 295 insert—

In Schedule 1 (index of defined expressions), in the entry relating to business travel in Chapter 2 of Part 4, for “section 236(1)” substitute “ sections 235A and 236(1) ”.

The amendments made by this section have effect for the tax year 2016-17 and subsequent tax years.

A duly accredited competitor who performs an Anniversary Games activity is not liable to income tax in respect of any income arising from the activity if the non-residence condition is met.

The following are Anniversary Games activities—

The non-residence condition is that—

Section 966 of ITA 2007 (deductions of sums representing income tax) does not apply to any payment or transfer which gives rise to income benefiting from the exemption under subsection (1).

In this section—“Anniversary Games” means the athletics event held at the Olympic Stadium in London on 24 - 26 July 2015;“Games period” means the period—beginning with 22 July 2015, and ending with 28 July 2015;“income” means employment income or profits of a trade, profession or vocation (including profits treated as arising as result of section 13 of ITTOIA 2005).

This section is treated as having come into force on 8 July 2015.

CTA 2009 is amended as follows.

In section 104A (R&D expenditure credits), after subsection (7) insert—

After section 104W insert—

In section 1310(4) (orders and regulations subject to affirmative procedure), before paragraph (zza) insert—.

The amendments made by this section have effect in relation to expenditure incurred on or after 1 August 2015.

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

In section 715 (application of Part 8 to goodwill), in subsection (2), at the end insert “ (see, in particular, section 816A (restrictions on goodwill and certain other assets)) ”.

In section 746 (“non-trading credits” and “non-trading debits”), in subsection (2), for paragraph (ba) substitute—.

In section 800 (introduction to Chapter 10: excluded assets), in subsection (2)(c)—

After section 816 insert—

In section 844 (overview of Chapter 13: transactions between related parties), omit subsection (2A).

Omit sections 849B to 849D (restrictions relating to goodwill etc acquired from a related individual or firm) and the italic heading immediately before those sections.

In consequence of the amendments made by this section, in FA 2015, omit section 26.

The amendments made by this section have effect in relation to accounting periods beginning on or after 8 July 2015.

But the amendments made by this section do not apply in a case in which a company acquires a relevant asset if the company does so—

For the purposes of subsection (9), an accounting period beginning before, and ending on or after, 8 July 2015 is to be treated as if so much of the accounting period as falls before that date, and so much of the accounting period as falls on or after that date, were separate accounting periods.

An apportionment for the purposes of subsection (11) must be made in accordance with section 1172 of CTA 2010 (time basis) or, if that method produces a result that is unjust or unreasonable, on a just and reasonable basis.

For the purposes of subsection (10)(b), an obligation is “unconditional” if it may not be varied or extinguished by the exercise of a right (whether under the contract or otherwise).

Chapter 4 of Part 2 of CTA 2010 (currency) is amended as follows.

Section 9A (designated currency of a UK resident investment company) is amended as follows.

For subsection (2) substitute—

Omit subsection (3).

After subsection (8) insert—

Section 9B (period for which election under section 9A has effect) is amended as follows.

In subsection (1), for “section 9A(2)(a)” substitute “ section 9A ”.

Omit subsection (2).

In subsection (3), for “section 9A(2)(a)” substitute “ section 9A ”.

In subsection (6), for the words from the beginning to “only” substitute “ A revocation event occurs in the period of account in which X's first accounting period begins ”.

After subsection (6) insert—

In subsection (7)(a), for “section 9A(2)(a)” substitute “ section 9A ”.

In section 17 (interpretation of Chapter), for subsection (4) substitute—

This section has effect in relation to periods of account beginning on or after 1 January 2016.

Subsections (16) and (17) apply if a period of account of a company (“the straddling period of account) begins before, and ends on or after, 1 January 2016.

It is to be assumed, for the purposes of this section, that the straddling period of account consists of two separate periods of account—

For the purposes of this section, it is to be assumed—

In section 133 of CTA 2010 (claims for group relief: consortium conditions 2 and 3)—

Accordingly—

The amendments made by this section have effect in relation to accounting periods beginning on or after 10 December 2014.

In Part 9A of TIOPA 2010 (controlled foreign companies), omit section 371UD (relief against sum charged).

Accordingly, omit the following provisions—

The amendments made by this section have effect in relation to accounting periods of CFCs beginning on or after 8 July 2015.

Subsection (5) applies where a CFC has an accounting period beginning before 8 July 2015 and ending on or after that date (“the straddling period”).

For the purposes of determining the relief to which a chargeable company in relation to the straddling period is entitled under section 371UD of TIOPA 2010, or on the making of a claim would be so entitled—

In this section, “CFC”, “accounting period” in relation to a CFC, and “chargeable company” have the same meanings as in Part 9A of TIOPA 2010.

Part 14B of CTA 2010 (tax avoidance involving carried-over losses) is amended as follows.

In section 730G (disallowance of deductions for relevant carried-forward losses), in subsection (4), after “a relevant corporation tax advantage” insert “ or a relevant CFC charge advantage ”.

In that section, after subsection (5) insert—

In that section, in subsection (7)—

In that section, in subsection (8), after “subsection (7)(a)” insert “ , (aa) ”.

In section 730H (interpretation), in subsection (1), after the definition of “arrangements” insert—.

The amendments made by this section have effect for the purposes of calculating the taxable total profits of companies for accounting periods beginning on or after after 8 July 2015.

For the purposes of the amendments made by this section, where a company has an accounting period beginning before 8 July 2015 and ending on or after that date (“the straddling period”)—

CTA 2010 is amended as follows.

In section 1 (overview of Act), in subsection (3), after paragraph (ac) insert—.

After Part 8B insert—

In TMA 1970, in section 59D (general rule as to when corporation tax is due and payable)—

Paragraph 8 Schedule 18 to FA 1998 (company tax returns, assessments etc: calculation of tax payable) is amended as follows—

Schedule 56 to FA 2009 (penalty for failure to make payments on time) is amended in accordance with subsections (7) and (8).

In paragraph 1, in the table after item 6 insert—

In paragraph 4(1), for “or 6” substitute “ , 6 or 6ZZA ”.

The amendments made by subsections (1) to (8) have effect in relation to interest (whether arising before or on or after 21 October 2015) which falls within subsection (11).

Section 357YO of CTA 2010, and the amendments made by subsections (1) to (8) so far as relating to the deduction of tax under section 357YO, have effect in relation to payments of interest made on or after 26 October 2015. This rule is not limited by the rule in subsection (9).

Interest arising to a company falls within this subsection if—

In subsections (9) to (11)—

The Corporation Tax (Instalment Payments) (Amendment) Regulations 2014 (S.I. 2014/2409) are to be treated as always having had effect as if in regulation 1(2) (commencement) “ending” were substituted for “beginning”.

Consequently, for the purposes of the application of regulations 2(2) and 3(5B) of the Corporation Tax (Instalment Payments) Regulations 1998 (S.I. 1998/3175) to accounting periods beginning before, and ending on or after, 1 April 2015—

In section 161 of CTA 2009 (changes in trading stock: transfer pricing rules to take precedence), after subsection (1) insert—

In section 172F of ITTOIA 2005 (changes in trading stock: transfer pricing rules to take precedence), after subsection (1) insert—

The amendments made by this section apply in relation to a disposal or acquisition made on or after 8 July 2015, unless it is made pursuant to an obligation, under a contract, that was unconditional before that date.

For the purposes of subsection (3), an obligation is “unconditional” if it may not be varied or extinguished by the exercise of a right (whether under the contract or otherwise).

In section 162 of CTA 2009 (valuation of trading stock on cessation), after subsection (2) (transfer pricing rules to take precedence) insert—

In section 173 of ITTOIA 2005 (valuation of trading stock on cessation), after subsection (2) (transfer pricing rules to take precedence) insert—

The amendments made by this section apply in relation to a cessation of trade on or after 8 July 2015.

In section 846 of CTA 2009 (transfers of intangible assets not at arm's length), after subsection (1) insert—

The amendment made by this section applies in relation to a transfer which takes place on or after 8 July 2015, unless it takes place pursuant to an obligation, under a contract, that was unconditional before that date.

For the purposes of subsection (2), an obligation is “unconditional” if it may not be varied or extinguished by the exercise of a right (whether under the contract or otherwise).

In Part 3 of TCGA 1992 (individuals, partnerships, trusts and collective investment schemes etc), after section 103K insert—

The amendment made by subsection (1) has effect in relation to carried interest arising on or after 8 July 2015 under any arrangements, ....

But section 103KB(1) of TCGA 1992 (as inserted by subsection (1)) does not have effect in relation to a variation of a right to carried interest occurring on or after 8 July 2015 and before 22 October 2015.

And section 103KG(2) to (15) of TCGA 1992 (as inserted by subsection (1)) has effect in relation to carried interest arising on or after 22 October 2015 under any arrangements, ....

In subsections (2) to (4), “arise”, “arrangements” and “carried interest” have the same meanings as in Chapter 5 of Part 3 of TCGA 1992 (as inserted by subsection (1) of this section).

In section 809EZB of ITA 2007 (disguised investment management fees: meaning of “management fee”), after subsection (2) insert—

In section 809EZG of ITA 2007 (avoidance of double taxation), in subsection (1)(b), after “the individual” insert “ or another person ”.

The amendments made by this section have effect in relation to sums arising on or after 8 July 2015 (whenever the arrangements under which the sums arise were made).

In subsection (3), “arise” has the same meaning as it has for the purposes of Chapter 5E of Part 13 of ITA 2007.

In ITA 2007, after section 809EZD insert—

In ITA 2007, in section 809EZA(3)(c), omit “directly or indirectly”.

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

In subsection (3), “arise”, “arrangements” and “carried interest” have the same meanings as in Chapter 5E of Part 13 of ITA 2007.

VERA 1994 is amended as follows.

In Schedule 1 (annual rates of duty)—

In Schedule 2 (exempt vehicles)—

In section 51(2)(b) of FA 1994 (standard rate of insurance premium tax), for “6 per cent” substitute “ 9.5 per cent ”.

The amendment made by subsection (1) has effect in relation to a premium falling to be regarded for the purposes of Part 3 of FA 1994 as received under a taxable insurance contract by an insurer on or after 1 November 2015.

The amendment made by subsection (1) does not have effect in relation to a premium which—

Subsection (3) does not apply in relation to a premium which—

In the application of sections 67A to 67C of FA 1994 (announced increase in rate) in relation to the increase made by this section—

The provisions of Part 2 of FA 2001 (aggregates levy) that were amended or repealed by section 94 of FA 2014 (removal of certain exemptions with effect from 1 April 2014) have effect, and are to be treated as having had effect at all times on or after 1 April 2014, as if the amendments and repeals made by that section had not been made.

Accordingly, sections 94 and 95 of FA 2014 are repealed.

Part 2 of FA 2001, as amended by subsection (1), is further amended in accordance with subsections (4) and (5).

In section 17 (meaning of “aggregate” and “taxable aggregate”), in each of subsections (3)(f) and (4)(a)—

In section 18(2) (meaning of “exempt process”), after paragraph (c) insert—

The repeal of section 94 of FA 2014 is to be treated as having come into force on 1 August 2015, and the amendments made by subsections (3) to (5) are to be treated as having come into force on 1 April 2014.

Section 222 of FA 2013 (international agreements to improve tax compliance) is amended as follows.

In subsection (2), in paragraph (c), after “purposes” (but before the closing bracket) insert “ and client notification obligations ”.

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

After subsection (2) insert—

In subsection (4), at the appropriate places insert—;;.

Schedule 8 contains provision about the enforcement of debts owed to the Commissioners for Her Majesty's Revenue and Customs by making deductions from accounts held with deposit-takers.

The Treasury may, by regulations made by statutory instrument, make consequential, incidental or supplementary provision in connection with any provision made by that Schedule.

Regulations under subsection (2) may amend, repeal or revoke any enactment (whenever passed or made).

“Enactment” includes an enactment contained in subordinate legislation within the meaning of the Interpretation Act 1978.

A statutory instrument containing (whether alone or with other provision) provision amending or repealing an Act may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons.

Any other statutory instrument containing regulations under subsection (2) is subject to annulment in pursuance of a resolution of the House of Commons.

This section applies if a sum payable to or by the Commissioners under a judgment or order given or made in any court proceedings relating to a taxation matter (a “tax-related judgment debt”) carries interest as a result of a relevant enactment.

The “relevant enactments” are—

The relevant enactment is to have effect in relation to the tax-related judgment debt as if for the rate specified in section 17(1) of the Judgments Act 1838 and any other rate specified in an order under section 74 of the County Courts Act 1984 there were substituted—

Subsection (3) does not affect any power of the court under the relevant enactment to prevent any sum from carrying interest or to provide for a rate of interest which is lower than (and incapable of exceeding) that for which the subsection provides.

If section 44A of the Administration of Justice Act 1970 (interest on judgment debts expressed otherwise than in sterling), or any corresponding provision made under section 74 of the County Courts Act 1984 in relation to the county court, applies to a tax-related judgment debt—

The “special repayment rate” is the percentage per annum given by the formula—B R+2 where BR is the official Bank rate determined by the Bank of England Monetary Policy Committee at the operative meeting.

“The operative meeting”, in relation to the special repayment rate applicable in respect of any day, means the most recent meeting of the Bank of England Monetary Policy Committee apart from any meeting later than the 13th working day before that day.

The Treasury may by regulations made by statutory instrument—

Regulations under subsection (8)—

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

To the extent that a tax-related judgment debt consists of an award of costs to or against the Commissioners, the reference in section 24(2) of the Crown Proceedings Act 1947 (which relates to interest on costs awarded to or against the Crown) to the rate at which interest is payable upon judgment debts due from or to the Crown is to be read as a reference to the rate at which interest is payable upon tax-related judgment debts.

This section has effect in relation to interest for periods beginning on or after 8 July 2015, regardless of—

Subsection (14) applies where, at any time during the period beginning with 8 July 2015 and ending immediately before the day on which this Act is passed (“the relevant period”)—

The court by which the judgment or order in question was given or made must, on an application made to it under this subsection by the person who made the payment, order the repayment of the amount by which the interest paid under the relevant enactment in respect of days falling within the relevant period exceeds the interest payable under the relevant enactment in respect of those days in accordance with the provisions of this section.

In this section—“the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs;“taxation matter” means anything... the collection and management of which is the responsibility of the Commissioners (or was the responsibility of the Commissioners of Inland Revenue or Commissioners of Customs and Excise);“working day” means any day other than a non-business day as defined in section 92 of the Bills of Exchange Act 1882.

This section extends to England and Wales only.

Section 66 (rate of ten-yearly charge) is amended as follows.

In subsection (4)—

In subsection (6)(a), for “paragraphs (b) and (c)” substitute “ paragraphs (c) to (e) ”.

Section 69 (rate between ten-year anniversaries) is amended as follows.

In subsection (1), for “subsection (2)” substitute “ subsection (2A) ”.

For subsection (2) substitute—

In subsection (3)—

In paragraph 6 of Schedule 19 to FA 2011 (steps for determining the amount of the bank levy), in sub-paragraph (2)—

In paragraph 7 of that Schedule (special provision for chargeable periods falling wholly or partly before 1 April 2015)—

The amendments made by sub-paragraphs (1) and (2) come into force on 1 January 2016.

Sub-paragraphs (5) to (10) apply where—

Sub-paragraphs (1) to (3) are to be ignored for the purpose of determining the amount of any pre-commencement instalment payment.

If there is at least one instalment payment, in respect of the total liability of E for the accounting period, which under the Instalment Payment Regulations is treated as becoming due and payable on or after 1 January 2016, the amount of that instalment payment, or the first of them, is to be reduced by the adjustment amount.

“The adjustment amount” is the difference between—

In the Instalment Payment Regulations—

In section 59D of TMA 1970 (general rule as to when corporation tax is due and payable), in subsection (5), the reference to section 59E is to be read as including a reference to sub-paragraphs (4) to (8).

In this paragraph—“the chargeable period” is to be construed in accordance with paragraph 4 or (as the case may be) 5 of Schedule 19 to FA 2011;“the Instalment Payment Regulations” means the Corporation Tax (Instalment Payments) Regulations 1998 (S.I. 1998/3175); and references to the total liability of E for an accounting period are to be construed in accordance with regulation 2(3) of the Instalment Payment Regulations.

In paragraph 6 of Schedule 19 to FA 2011 (steps for determining the amount of the bank levy), in sub-paragraph (2)—

In paragraph 7 of that Schedule (special provision for chargeable periods falling wholly or partly before 1 January 2016)—

The amendments made by this paragraph come into force on 1 January 2017.

In paragraph 6 of Schedule 19 to FA 2011 (steps for determining the amount of the bank levy), in sub-paragraph (2)—

In paragraph 7 of that Schedule (special provision for chargeable periods falling wholly or partly before 1 January 2017)—

The amendments made by this paragraph come into force on 1 January 2018.

In paragraph 6 of Schedule 19 to FA 2011 (steps for determining the amount of the bank levy), in sub-paragraph (2)—

In paragraph 7 of that Schedule (special provision for chargeable periods falling wholly or partly before 1 January 2018)—

The amendments made by this paragraph come into force on 1 January 2019.

In paragraph 6 of Schedule 19 to FA 2011 (steps for determining the amount of the bank levy), in sub-paragraph (2)—

In paragraph 7 of that Schedule (special provision for chargeable periods falling wholly or partly before 1 January 2019)—

The amendments made by this paragraph come into force on 1 January 2020.

In paragraph 6 of Schedule 19 to FA 2011 (steps for determining the amount of the bank levy), in sub-paragraph (2)—

In paragraph 7 of that Schedule (special provision for chargeable periods falling wholly or partly before 1 January 2020)—

The amendments made by this paragraph come into force on 1 January 2021.

Schedule 18 to FA 1998 (company tax returns, assessments and related matters) is amended as follows.

In paragraph 1 (meaning of “tax”)—

In paragraph 8(1) (calculation of tax payable), in the third step, after paragraph 1 insert—

Section 79 (charge to tax) is amended as follows.

In subsection (2), for “The” substitute “ Subject to subsections (3) and (3A), the ”.

In subsection (3), for “But if” substitute “ If ”.

After subsection (3) insert—

In subsection (5)—

The amendments made by paragraphs 1 and 4 to 6 of this Schedule have effect for accounting periods beginning on or after the commencement date.

Where a company has an accounting period beginning before the commencement date and ending on or after that date (“the straddling period”), sub-paragraphs (3) to (10) apply.

For the purposes of determining whether the surcharge is chargeable on the company for the straddling period and, if so, in what amount—

Accordingly, the surcharge chargeable on the company for the straddling period (if any) is equal to the surcharge that would be chargeable on the company, in accordance with sub-paragraph (3), for the separate accounting period beginning with the commencement date.

Sub-paragraphs (6) to (8) apply where—

The surcharge chargeable on the company for the straddling period is to be ignored for the purposes of determining the amount of any pre-commencement instalment.

The first instalment, in respect of the total liability of the company for the straddling period, which under the Instalment Payment Regulations is treated as becoming due and payable on or after the commencement date is to be increased by the adjustment amount.

“The adjustment amount” is the difference between—

In the Instalment Payment Regulations—

In section 59D of TMA 1970 (general rule as to when corporation tax is due and payable), in subsection (5), the reference to section 59E of that Act is to be read as including a reference to sub-paragraphs (5) to (9).

For the purposes of sections 269DF to 269DI of CTA 2010, if a nominated company has an accounting period beginning before and ending on or after the commencement date, so much of that period as falls before that date, and so much of that period as falls on or after that date, are to be treated as separate accounting periods.

For the purposes of section 269DN of CTA 2010, it does not matter whether arrangements of the kind mentioned in subsection (1) of that section are entered into before or after this Act is passed.

In this paragraph “the surcharge” means a sum chargeable under section 269DA of CTA 2010 as if it were an amount of corporation tax.

The amendments made by paragraphs 7 to 10 of this Schedule (and the amendment made by paragraph 1 of this Schedule, so far as it relates to those amendments) have effect for accounting periods of CFCs beginning on or after the commencement date.

Sub-paragraph (3) applies where a CFC has an accounting period beginning before the commencement date and ending on or after that date (“the straddling period”).

For the purposes of calculating the sum charged on any chargeable company at step 5 of section 371BC(1) of TIOPA 2010 in relation to the straddling period—

The sum charged on each chargeable company at step 5 in section 371BC(1) of TIOPA 2010 is the aggregate of the sums that would be charged on that company by taking that step, in accordance with sub-paragraph (3), in relation to each of the separate accounting periods.

Sub-paragraphs (6) to (8) apply where—

The amendments made by paragraphs 7 to 10 of this Schedule are to be ignored for the purposes of determining the amount of any pre-commencement instalment.

The first instalment, in respect of the total liability of the company for the relevant corporation tax accounting period, which under the Instalment Payment Regulations is treated as becoming due and payable on or after the commencement date is to be increased by the adjustment amount.

“The adjustment amount” is the difference (if any) between—

In the Instalment Payment Regulations—

In section 59D of TMA 1970 (general rule as to when corporation tax is due and payable), in subsection (5), the reference to section 59E of that Act is to be read as including a reference to sub-paragraphs (5) to (9).

For the purposes of section 371BI of TIOPA 2010, it does not matter whether arrangements of the kind mentioned in subsection (3) of that section are entered into before or after this Act is passed.

In this paragraph—“accounting period”, “CFC” and “chargeable company” have the same meaning as in Part 9A of TIOPA 2010 (see section 371VA of that Act);“relevant corporation tax accounting period” has the meaning given by section 371BC(3) of that Act.

The amendments made by paragraphs 11 to 13 of this Schedule have effect in relation to accounting periods beginning on or after the commencement date.

For the purposes of sub-paragraph (1), if an accounting period of a company begins before, and ends on or after, the commencement date (“the straddling period”)—

Subsections (1) to (5) of section 113 of FA 2015 (meaning of “accounting period”) have effect for the purposes of this paragraph as they have effect for the purposes of Part 3 of that Act.

Omit section 227E (pension input periods ending in, but before the end of, a tax year).

In consequence—

The amendments made by this paragraph have effect for the post-alignment tax year (see the section 228C(2) inserted by this Schedule) and subsequent tax years.

In Part 4 of FA 2004, after section 228 insert—

The amendment made by sub-paragraph (1) has effect for the tax year 2016-17 and subsequent tax years.

Part 4 of FA 2004 is amended as follows.

In section 227 (annual allowance charge)—

In section 227ZA (the chargeable amount) after subsection (3) insert—

The amendments made by this paragraph have effect for the tax year 2015-16 and subsequent tax years.

Section 157 (eligibility for EIS relief) is amended as follows.

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

After that subsection insert—

Section 173A (the maximum amount raised annually through risk capital schemes requirement) is amended as follows.

For subsection (2) substitute—

In subsection (3)—

After subsection (4) insert—

After subsection (5) insert—

In the heading, for “capital schemes” substitute “ finance investments ”.

Section 174 (the purpose of the issue requirement) is amended as follows.

The existing text becomes subsection (1).

In that subsection, after “activity” insert “ so as to promote business growth and development ”.

After that subsection insert—

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

For subsection (1A) substitute—

Section 224 (repayments etc of share capital to other persons) is amended as follows.

In subsection (4), after paragraph (a) insert—.

In subsection (5)—

In consequence of paragraphs 6(c) and 9, in Schedule 6 to FA 2012, omit paragraphs 11 and 13.

In consequence of paragraph 13, in Schedule 7 to FA 2012, omit paragraph 12.

In consequence of paragraph 14, in Schedule 7 to FA 2012, omit paragraph 16.

The amendments made by paragraphs 3 to 5, 6 (other than paragraph (c)), 7, 8, 10 to 12, 13, 16, 17 and 20(2) and (3) have effect in relation to shares issued on or after the day on which this Act is passed.

But nothing in sub-paragraph (1) prevents shares issued before that day constituting “relevant investments” for the purposes of determining whether the requirements of sections 173A, 173AA, 173AB and 175A are met in relation to shares issued on or after that day.

Section 261 (eligibility for VCT relief) is amended as follows.

In subsection (3), before paragraph (a) insert—.

After subsection (4) insert—

Section 274 (requirements for the giving of approval) is amended as follows.

In the table in subsection (2), at the end insert—

In subsection (3)—

After that subsection insert—

For subsection (5) substitute—

Section 280B (the investment limits condition) is amended as follows.

In subsection (2) for the words from “if” to the end substitute

After subsection (2) insert—

For subsection (3) substitute—

In subsection (4)—

In subsection (5) for “and (3)” substitute “ to (3E) ”.

After subsection (5) insert—

Section 286 (qualifying holdings: introduction) is amended as follows.

In subsection (2), omit the “and” at the end of paragraph (a) and after paragraph (b) insert

In subsection (3)—

Section 292A (the maximum amount raised annually through risk capital schemes requirement) is amended as follows.

For subsection (2) substitute—

In subsection (3)—

In subsection (4) for “and (2)” substitute “ to (2B) ”.

After subsection (4) insert—

In subsection (5), after “205” insert “ , 257ED or 257PB ”.

After subsection (6) insert—

In the heading, for “capital schemes” substitute “ finance investments ”.

Section 326 (restructuring to which section 327 applies) is amended as follows.

In subsection (1), for “Section 327 applies” substitute “ Sections 326A and 327 apply ”.

In subsection (4) for the words from the beginning to “as being met” substitute “ Nothing in section 326A treats any of the requirements of Chapter 3 as being met, and nothing in section 327 treats any of the requirement of Chapter 4 as being met ”.

In subsection (5), before “327” insert “ 326A does not treat any requirement of Chapter 3 as being met and section ”.

Section 327 (certain requirements of Chapter 4 to be treated as met) is amended as follows.

In subsection (1)—

In subsection (4)—

After subsection (4) insert—

In consequence of paragraphs 6(3)(c) and 9, in Schedule 6 to FA 2012, omit paragraphs 15 and 17

In consequence of paragraph 12, in Schedule 8 to that Act, omit paragraph 9.

In consequence of paragraph 19, in Schedule 8 to that Act, omit paragraph 14.

The amendments made by paragraphs 3 to 5 have effect in relation to investments made on or after the day on which this Act is passed.

The amendments made by paragraphs 6(3)(c), 9 and 22(1) have effect for the purposes of determining whether shares or securities issued on or after 6 April 2015 are to be regarded as comprised in a company's qualifying holdings.

The amendments made by paragraphs 6 (except sub-paragraph (3)(c)), 7, 8, 10 to 13, 21 and 22(2) and (3) have effect for the purposes of determining whether shares or securities issued on or after the day on which this Act is passed are to be regarded as comprised in a company's qualifying holdings.

But nothing in sub-paragraphs (1) and (3) prevents investments made before the day on which this Act is passed constituting a “relevant investment”—

Section 307 (general principles about the bringing into account of credits and debits) is amended as follows.

In subsection (2), after “this Part” insert “ in respect of the matters mentioned in section 306A(1) ”.

After subsection (2) insert—

Omit subsections (3) to (5).

For subsection (6) substitute—

Section 308 (amounts recognised in determining a company's profit or loss) is amended as follows.

In subsection (1), for the words from “recognised”, in the second place, onwards substitute “ that is recognised in the company's accounts for the period as an item of profit or loss ”.

After subsection (1) insert—

Omit subsections (2) and (3).

Section 313 (basis of accounting) is amended as follows.

In subsection (1), omit the words from “and, in particular,” onwards.

In subsection (2)—

Omit subsection (3).

In subsection (4), for the words from “shown” onwards substitute “ measured in the company's balance sheet at its amortised cost using the effective interest method, but with that amortised cost being adjusted as necessary where the loan relationship is the hedged item under a designated fair value hedge ”.

After subsection (4) insert—

For subsection (5) substitute—

For subsection (6) substitute—

Section 315 (introduction to sections 316 to 319) is amended as follows.

For subsection (1) substitute—

In subsection (2)—

Omit subsection (3).

In the heading, for “to 319” substitute “ and 318 ”.

Section 318 (change of accounting policy following cessation of loan relationship) is amended as follows.

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

For subsections (2) and (3) substitute—

In subsection (4), for “Subsections (2) and (3) do” substitute “ Subsection (2) does ”.

For subsection (5) substitute—

After subsection (6) insert—

In the heading, for “policy” substitute “ basis ”.

Section 320 (credits and debits treated as relating to capital expenditure) is amended as follows.

For subsections (1) to (3) substitute—

Omit subsection (4).

For subsections (5) and (6) substitute—

Section 322 (credits not required to be brought into account in respect of release of debt in certain cases) is amended as follows.

In subsection (2), for “D” substitute “ E ”.

Omit subsection (4A).

After subsection (5A) insert—

After subsection (6) insert—

In subsection (7), after “Section” insert “ 323(A1) applies for the interpretation of subsection (5B)(b); and the rest of section ”.

Section 328 (exchange gains and losses) is amended as follows.

In subsection (1), for “section 307(3)” substitute “ section 306A(1) ”.

Omit subsections (2) and (2A).

For subsection (3) substitute—

For subsection (4) substitute—

Omit subsections (4A) and (5).

For subsection (6) substitute—

Section 329 (pre-loan relationship and abortive expenses) is amended as follows.

In subsection (1)(c), for “section 307(3)(c)” substitute “ section 306A(1)(c) ”.

In subsection (2), for “section 307(3)” substitute “ section 307(2) ”.

Section 342 (issue of new securities on reorganisations: disposal at notional carrying value) is amended as follows.

In subsection (3), for “its carrying value in” substitute “ its tax-adjusted carrying value based on ”.

In subsection (4), omit the definition of “carrying value”.

Section 349 (application of amortised cost basis to connected companies relationships) is amended as follows.

After subsection (2) insert—

Omit subsections (3) and (4).

Section 358 (exclusion of credits on release of connected companies debts: general) is amended as follows.

For subsection (4) substitute—

After subsection (6) insert—

Section 359 (exclusion of credits on release of connected companies debts during creditor's insolvency) is amended as follows.

In subsection (1)(d), for “the condition in question” substitute “ any of those conditions ”.

After subsection (2) insert—

Section 361 (acquisition of creditor rights by connected company at undervalue) is amended as follows.

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

Omit subsection (2).

After subsection (6) insert—

Section 424 (reorganisations involving loan relationships) is amended as follows.

In subsection (3), for “its carrying value in” substitute “ its tax-adjusted carrying value based on ”.

In subsection (4), omit the definition of “carrying value”.

Section 435 (reorganisations involving loan relationships) is amended as follows.

In subsection (3), for “its carrying value in” substitute “ its tax-adjusted carrying value based on ”.

In subsection (4), omit the definition of “carrying value”.

Section 595 (general principles about the bringing into account of credits and debits) is amended as follows.

In subsection (2)—

After subsection (2) insert—

Omit subsections (3) to (6) and (8).

Section 597 (amounts recognised in determining a company's profit or loss) is amended as follows.

In subsection (1), for the words from “recognised”, in the second place, onwards substitute “ that is recognised in the company's accounts for the period as an item of profit or loss ”.

After subsection (1) insert—

Omit subsections (2) and (3).

Section 604 (credits and debits treated as relating to capital expenditure) is amended as follows.

For subsections (1) to (3) substitute—

Omit subsection (4).

For subsection (5) substitute—

Section 606 (exchange gains and losses) is amended as follows.

In subsection (1), for “section 595(3)” substitute “ section 594A(1) ”.

Omit subsections (2) and (2A).

For subsection (3) substitute—

For subsection (4) substitute—

Omit subsections (4A) to (5).

In subsection (6)—

Section 607 (pre-contract or abortive expenses) is amended as follows.

In subsection (1)(c), for “section 595(3)(b)” substitute “ section 594A(1)(b) ”.

In subsection (2), for “section 595(3)” substitute “ section 595(2) ”.

Section 613 (introduction to sections 614 and 615) is amended as follows.

For subsection (1) substitute—

In subsection (2), for “those periods of account” substitute “ the periods mentioned in subsection (1) ”.

Omit subsection (3).

Section 615 (change of accounting policy after ceasing to be party to derivative contract) is amended as follows.

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

For subsections (2) and (3) substitute—

In subsection (4), for “Subsections (2) and (3) do” substitute “ Subsection (2) does ”.

For subsection (5) substitute—

After subsection (6) insert—

Section 690 (derivative contracts for unallowable purposes) is amended as follows.

After subsection (3) insert—

In subsection (6), omit the words from “which are” onwards.

Section 151E of TCGA 1992 (exchange gains and losses from loan relationships: regulations) is amended as follows.

In subsection (1)—

After that subsection insert—

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

At the appropriate place in each case insert—;;;;;;;.

In the entry for “fair value (in Parts 5 and 6)”, for “313(6)” substitute “ 476(1) ”.

Omit the following—

Part 21 of CTA 2009 (other general provisions) is amended as follows.

In Schedule 2 (transitionals and savings), omit paragraphs 71 and 99 (which contain prospective repeals relating to loan relationships or derivative contracts and have never been brought into force).

In section 1325 (transitional provision and savings), in subsection (2), omit the words from “except paragraphs 71 and 99” onwards.

In section 1329 (commencement), omit subsections (3) and (4).

In Schedule 3 (repeals and revocations), omit Part 2 (prospective repeals).

Paragraphs 15 and 28 have effect in relation to loan relationships entered into by a company in an accounting period beginning on or after 1 January 2016.

Paragraph 67 has effect in relation to derivative contracts entered into by a company in an accounting period beginning on or after 1 January 2016.

In relation to loan relationships entered into by a company in an accounting period beginning before 1 January 2016, sub-paragraphs (4) to (6) apply in relation to accounting periods beginning on or after that date.

The reference in section 321(1)(b) of CTA 2009 to recognition in any of the statements mentioned in section 308(1) of that Act is to be read in relation to the company as a reference to recognition in the company's accounts for the period as an item of profit or loss or as an item of other comprehensive income.

But section 321 does not bring into account for the purposes of Part 5 of CTA 2009 any exchange gain or loss of the company so far as it is recognised in the company's statement of total recognised gains and losses, statement of recognised income and expense, statement of changes in equity or statement of income and retained earnings.

The reference in section 349 of CTA 2009 to an amortised cost basis of accounting is to be read in relation to the company without regard to the amendment of section 313(4) of that Act made by paragraph 7(5).

In relation to derivative contracts entered into by a company in an accounting period beginning before 1 January 2016, sub-paragraphs (8) and (9) apply in relation to accounting periods beginning on or after that date.

The reference in section 605(1)(b) of CTA 2009 to recognition in any of the statements mentioned in section 597(1) of that Act is to be read in relation to the company as a reference to recognition in the company's accounts for the period as an item of profit or loss or as an item of other comprehensive income.

But section 605 does not bring into account for the purposes of Part 7 of CTA 2009 any exchange gain or loss of the company so far as it is recognised in the company's statement of total recognised gains and losses, statement of recognised income and expense, statement of changes in equity or statement of income and retained earnings.

In this paragraph “item of profit and loss” and “item of other comprehensive income” each has the meaning that it has for accounting purposes.

This paragraph applies to a loan relationship of a company if—

There is to be made an overall transitional adjustment of such amount as is just and reasonable in the circumstances having regard to the amounts which would otherwise be brought into account twice by the company for those purposes as credits or debits.

The overall transitional adjustment must be made by making transitional adjustments in accordance with paragraph 116.

In determining what amounts fall within sub-paragraph (1), it is to be assumed that the accounting policy applied in drawing up the company's accounts for the last accounting period of the company beginning before 1 January 2016 (“the pre-commencement period”) was also applied in previous accounting periods.

But if the company's accounts for the pre-commencement period are in accordance with generally accepted accounting practice drawn up on an assumption as to the accounting policy in previous accounting periods which differs from that mentioned in sub-paragraph (4), that different assumption applies in determining what amounts fall within sub-paragraph (1).

If paragraph 115 applies in relation to a loan relationship of a company, then for each relevant accounting period a credit or debit of an amount equal to the transitional adjustment for the period must be brought into account for the purposes of Part 5 of CTA 2009 in the same way as a credit or debit which is brought into account in determining the company's profit or loss for the period in accordance with generally accepted accounting practice.

The relevant accounting periods are—

The transitional years are the 5 years beginning with the first day of the first accounting period of the company beginning on or after 1 January 2016.

The transitional adjustment for each relevant accounting period is calculated as follows.

Allocate a percentage of the overall transitional adjustment (determined under paragraph 115) to each of the 5 transitional years as follows—

If a transitional year coincides with an accounting period, the transitional adjustment for the accounting period is the amount allocated to that year.

In any other case—

This paragraph applies if either of the following provisions of CTA 2009 applies in relation to the first accounting period of a company beginning on or after 1 January 2016—

The overall transitional adjustment required by paragraphs 115 and 116 is to be calculated and applied before calculating any credit or debit required by section 316 or 318 of CTA 2009.

This paragraph applies if—

The company must bring into account for the purposes of Part 5 of CTA 2009 in the accounting period ending with the event within sub-paragraph (1)(b) a credit or debit of an amount equal to so much of the overall transitional adjustment as has not previously been brought into account.

For the purposes of this paragraph a company starts to be wound up—

This paragraph applies to a derivative contract of a company if—

There is to be made an overall transitional adjustment of such amount as is just and reasonable in the circumstances having regard to the amounts which would otherwise be brought into account twice by the company for those purposes as credits or debits.

The overall transitional adjustment must be made by making transitional adjustments in accordance with paragraph 121.

In determining what amounts fall within sub-paragraph (1), it is to be assumed that the accounting policy applied in drawing up the company's accounts for the last accounting period of the company beginning before 1 January 2016 (“the pre-commencement period”) was also applied in previous accounting periods.

But if the company's accounts for the pre-commencement period are in accordance with generally accepted accounting practice drawn up on an assumption as to the accounting policy in previous accounting periods which differs from that mentioned in sub-paragraph (4), that different assumption applies in determining what amounts fall within sub-paragraph (1).

If paragraph 120 applies in relation to a derivative contract of a company, then for each relevant accounting period a credit or debit of an amount equal to the transitional adjustment for the period must be brought into account for the purposes of Part 7 of CTA 2009 in the same way as a credit or debit which is brought into account in determining the company's profit or loss for the period in accordance with generally accepted accounting practice.

The relevant accounting periods are—

The transitional years are the 5 years beginning with the first day of the first accounting period of the company beginning on or after 1 January 2016.

The transitional adjustment for each relevant accounting period is calculated as follows.

Allocate a percentage of the overall transitional adjustment (determined under paragraph 120) to each of the 5 transitional years as follows—

If a transitional year coincides with an accounting period, the transitional adjustment for the accounting period is the amount allocated to that year.

In any other case—

This paragraph applies if either of the following provisions of CTA 2009 applies in relation to the first accounting period of a company beginning on or after 1 January 2016—

The overall transitional adjustment required by paragraphs 120 and 121 is to be calculated and applied before calculating any credit or debit required by section 614 or 615 of CTA 2009.

This paragraph applies if—

The company must bring into account for the purposes of Part 5 of CTA 2009 in the accounting period ending with the event within sub-paragraph (1)(b) a credit or debit of an amount equal to so much of the overall transitional adjustment as has not previously been brought into account.

For the purposes of this paragraph a company starts to be wound up—

In this Part of this Schedule “relevant sum”, in relation to a person, means a sum that is due and payable by the person to the Commissioners—and in relation to which Conditions A to C are met.

Condition A is that the sum is at least £1,000.

Condition B is that the sum is—

Condition C is that HMRC is satisfied that the person is aware that the sum is due and payable by the person to the Commissioners.

A sum that is due and payable to the Commissioners is an “established debt” if there is no possibility that the sum, or any part of it, will cease to be due and payable to the Commissioners on appeal.

For the purposes of sub-paragraph (5) it does not matter whether the reason that there is no such possibility is—and any power to grant permission to appeal out of time is to be disregarded.

This paragraph applies if it appears to HMRC that—

HMRC may give the deposit-taker a notice under this paragraph (an “information notice”) requiring the deposit-taker to provide HMRC with—

HMRC may exercise the power under sub-paragraph (2) only for the purposes of determining whether to give a hold notice to the deposit-taker in respect of the person concerned (see paragraph 4).

Where a deposit-taker is given an information notice, it must comply with the notice as soon as reasonably practicable and, in any event, within the period of 10 working days beginning with the day on which the notice is given to it.

An information notice must explain the effect of—

If it appears to HMRC that—HMRC may give the deposit-taker a notice under this paragraph (a “hold notice”).

The hold notice must—For provision about the particular relevant sums to which a hold notice relates see paragraph 8(6)(a)(ii) and (7) (notice to be given by HMRC to P).

The hold notice may—

The amount specified as the specified amount in the hold notice (“the current hold notice”) must not exceed so much of the notified sum (see paragraph 8(6) to (8)) as remains after deducting—

For the purposes of this paragraph, any two hold notices given in respect of the same person “relate to the same debts” if at least one relevant sum specified in relation to one of those notices by virtue of paragraph 8(7)(a) is the same debt as a relevant sum so specified in relation to the other notice.

The amount specified in the hold notice as the safeguarded amount must be at least £5,000; but this is qualified by sub-paragraphs (7) and (8).

The safeguarded amount must be nil if—

HMRC may (in a case not falling within sub-paragraph (7)) determine that an amount less than £5,000 (which may be nil) is to be the safeguarded amount if HMRC considers it appropriate to do so having regard to the value (or aggregate value) in sterling at the relevant time of any amounts which at that time stand to the credit of a qualifying non-sterling account or accounts.

In sub-paragraph (8) “qualifying non-sterling account” means an account which, but for paragraph 6(6)(b) (account not denominated in sterling), would be a relevant account in relation to the hold notice.

For the purposes of sub-paragraph (8), the value in sterling of any amount is to be determined in the prescribed manner; and regulations for the purposes of this sub-paragraph may specify circumstances in which the exchange rate is to be determined in accordance with a notice published by the Commissioners.

In sub-paragraph (8) “the relevant time” means the time when the Commissioners determine the amount to be specified as the “safeguarded amount” under sub-paragraph (2)(c).

HMRC must not on any one day give to a single deposit-taker more than one hold notice relating to the same debts.

Before deciding whether or not to exercise the power under paragraph 3(2) or 4(1) in relation to a person, HMRC must consider whether or not, to the best of HMRC's knowledge, there are any matters as a result of which the person is, or may be, at a particular disadvantage in dealing with the person's Revenue and Customs affairs.

If HMRC determines that there are any such matters, HMRC must take those matters into account in deciding whether or not to exercise the power concerned in relation to the person.

The Commissioners must publish guidance as to the factors which are relevant to determining whether or not a person is at a particular disadvantage in dealing with the person's Revenue and Customs affairs for the purposes of this Schedule.

In this paragraph “Revenue and Customs affairs”, in relation to a person by whom a relevant sum is payable, means any affairs of the person which relate to the relevant sum.

A deposit-taker to whom a hold notice is given under paragraph 4 must, for each relevant account (see sub-paragraph (6))—See paragraph 7 for how to determine the held amount in relation to any relevant account.

The deposit-taker must comply with sub-paragraph (1) as soon as is reasonably practicable and, in any event, within the period of 5 working days beginning with the day on which the hold notice is given.

In relation to each affected account (see sub-paragraph (7))—

The deposit-taker must maintain any arrangements made under sub-paragraph (3) until the hold notice ceases to be in force.

A hold notice ceases to be in force when—

In this Part of this Schedule “relevant account”, in relation to a hold notice, means an account held with the deposit-taker by P, but not including—

For the purposes of this Part of this Schedule, a relevant account is an “affected account” if, as a result of the hold notice, an amount is the held amount in relation to that account (see paragraph 7(1) and (2)).

If there is only one relevant account (see paragraph 6(6)) in existence at the time the deposit-taker complies with paragraph 6(1), “the held amount” in relation to that account is—For the meaning of “the safeguarded amount” and “the specified amount” see paragraph 23(1).

If there is more than one relevant account in existence at the time the deposit-taker complies with paragraph 6(1), “the held amount” in relation to each relevant account is determined as follows—Step 1 Determine the available amount in respect of each relevant account. Step 2 Determine the total of the available amounts in respect of all of the relevant accounts. If that total does not exceed the safeguarded amount, the held amount in relation to each relevant account is nil (and no further steps are to be taken). In any other case, go to Step 3. Step 3 Match the safeguarded amount against the available amounts in respect of the relevant accounts, taking those accounts in reverse priority order (see sub-paragraph (6)). Step 4 Match the specified amount against what remains of the available amounts in respect of the relevant accounts by taking each relevant account in priority order (see sub-paragraph (5)) and matching the specified amount (or, as the case may be, what remains of the specified amount) against the available amount for each account until either—the specified amount has been fully matched, or what remains of the available amounts is exhausted. Where this sub-paragraph applies, “the held amount”, in relation to a relevant account—is so much of the amount standing to the credit of the account as is matched against the specified amount under Step 4, and accordingly, is nil if no amount standing to the credit of the account is so matched against the specified amount.

In this paragraph “the available amount” means—so, if no amount stands to the credit of an account at that time, “the available amount” is nil.

In this paragraph “the appropriate fraction”, in relation to a joint account, means—1 N where N is the number of persons who together hold the joint account.

In this paragraph “priority order” means such order as the deposit-taker considers appropriate, but the deposit-taker must ensure—

In this paragraph “reverse priority order” means the reverse of the order determined under sub-paragraph (5).

In this paragraph references to an amount standing to the credit of an account are to be read subject to any regulations under paragraph 20(2)(d).

This paragraph applies where a deposit-taker receives a hold notice.

If the deposit-taker determines that there are one or more affected accounts (see paragraph 6(7)) as a result of the hold notice, the deposit-taker must give HMRC a notice which sets out—

The notice under sub-paragraph (2) must be given within the period of 5 working days beginning with the day on which the deposit-taker complies with paragraph 6(1).

If the deposit-taker determines that there are no affected accounts as a result of the hold notice, it must give HMRC a notice which—

The notice under sub-paragraph (4) must be given within the period of 5 working days beginning with the day on which the deposit-taker makes that determination.

If HMRC receives a notice under sub-paragraph (2) it must as soon as reasonably practicable—

A notice under this sub-paragraph must comply with the following requirements—

In this Part of this Schedule “the notified sum”, in relation to a hold notice, means the amount identified as such (or that is to be identified as such) in the notice under sub-paragraph (7).

The persons mentioned in sub-paragraph (6)(b) are—in respect of whom prescribed information has been provided under sub-paragraph (2)(c) or sufficient information has otherwise been given in the notice under sub-paragraph (2) to enable HMRC to give a notice.

After the deposit-taker has complied with paragraph 6(1), the deposit-taker may, in relation to any affected account, give a notice to—which states that a hold notice has been received by the deposit-taker in respect of the account and the effect of that notice so far as it relates to that account.

In this Part of this Schedule “interested third party”, in relation to a relevant account, means a person other than P who has a beneficial interest in—

But, in relation to a hold notice, an interest which comes into existence after any arrangements under paragraph 6(3) have been put into place is treated as not being a beneficial interest for the purposes of sub-paragraph (11).

Where a hold notice has been given to a deposit-taker HMRC may, by a notice given to the deposit-taker (a “notice of cancellation or variation”)—In this sub-paragraph references to the effect of a hold notice are to its effect by virtue of paragraph 6(4).

Where HMRC gives a notice under sub-paragraph (1) it must give a copy of that notice to—

Where the deposit-taker is given a notice under sub-paragraph (1), it must as soon as reasonably practicable and, in any event, within the period of 5 working days beginning with the day the notice is given—

Where a hold notice is given to a deposit-taker, a person within sub-paragraph (2) may by a notice given to HMRC (a “notice of objection”) object against the hold notice.

The persons who may object are—but only P may object on the ground in sub-paragraph (3)(a).

An objection may only be made on one or more of the following grounds—

A notice of objection must state the grounds of the objection.

Objections under this paragraph may only be made within the period of 30 days beginning with—

Sub-paragraph (5) does not apply if HMRC agree to the notice of objection being given after the end of the period mentioned in that sub-paragraph.

HMRC must agree to a notice of objection being given after the end of that period if the following conditions are met—

If a request of the kind referred to in sub-paragraph (7)(a) is made, HMRC must by a notice inform the person making the request whether or not HMRC agrees to the request.

Nothing in Part 5 of TMA 1970 (appeals and other proceedings) applies to an objection under this paragraph.

HMRC must consider any objections made under paragraph 10 within 30 working days of being given the notice of objection.

Having considered the objections, HMRC must decide whether—

HMRC must give a notice stating its decision to—

HMRC must, by a notice to the deposit-taker—

HMRC must give each person to whom HMRC is required to give a notice under sub-paragraph (3) a copy of any notice given to the deposit-taker under sub-paragraph (4).

Where the deposit-taker is given a notice under sub-paragraph (4), it must as soon as reasonably practicable and, in any event, within the period of 5 working days beginning with the day the notice is given—

In this paragraph references to the effect of a hold notice are to its effect by virtue of paragraph 6(4).

Where HMRC makes a decision under paragraph (b) or (c) of paragraph 11(2), a person within sub-paragraph (2) may appeal against the hold notice.

The persons who may appeal are—

An appeal may only be made on one or more of the grounds set out in paragraph 10(3) (and for this purpose the reference in paragraph 10(3)(c) to “the objection” is to be read as a reference to the appeal).

An appeal under sub-paragraph (1) must be made—

An appeal under this paragraph may only be made within the period of 30 days beginning—

A notice of appeal must state the grounds of appeal.

On an appeal under this paragraph, the court may—

Where the deposit-taker is served with an order made by the court under sub-paragraph (7)(a) or (b), the deposit-taker must as soon as reasonably practicable and, in any event, within the period of 5 working days beginning with the day the notice is given take such steps as are necessary to give effect to the order.

Where an appeal on the ground that the hold notice is causing or will cause the person making the appeal or another person exceptional hardship (or a further appeal following such an appeal) is pending, the court to which the appeal is made may, on an application made by the person who made the appeal—

In this paragraph references to the effect of a hold notice are to its effect by virtue of paragraph 6(4).

Nothing in Part 5 of TMA 1970 (appeals and other proceedings) applies to an appeal under this paragraph.

If it appears to HMRC that a person in respect of whom a hold notice given to a deposit-taker is in force—HMRC may give the deposit-taker a deduction notice in respect of that person.

A “deduction notice” is a notice which—

Where a deduction notice specifies a particular affected account—

A deduction notice must explain the effect of sub-paragraph (3)(b) and paragraph 14 (penalties).

A deduction notice may not be given in respect of an account unless—

In this paragraph “qualifying amount”, in relation to an affected account, means an amount not exceeding the held amount in relation to that account (as modified, where applicable, under paragraph 9(3)(b), 11(6)(b) or 12(7)(b)).

The total of the qualifying amounts specified in the deduction notice must not exceed the unpaid amount of the notified sum (see paragraph 8(8)).

HMRC must—

The persons mentioned in sub-paragraph (8)(b) are—

HMRC may, by a notice given to the deposit-taker, amend or cancel the deduction notice, and where it does so it must—

The deduction notice—

This paragraph applies to a deposit-taker who—

In sub-paragraph (1)(g), the reference to a disclosure of information does not include the giving of a notice in accordance with paragraph 8(10) to the affected person in respect of a hold notice.

The deposit-taker is liable to a penalty of £300.

If a failure within sub-paragraph (1)(a) to (f) continues after the day on which notice is given under paragraph 15(1) of a penalty in respect of the failure, the deposit-taker is liable to a further penalty or penalties not exceeding £60 for each subsequent day on which the failure continues.

A failure by a deposit-taker to do anything required to be done within a limited period of time does not give rise to liability to a penalty under this paragraph if the deposit-taker did it within such further time, if any, as HMRC may have allowed.

Liability to a penalty under this paragraph does not arise if the person satisfies HMRC or (on an appeal notified to the tribunal) the tribunal that there is a reasonable excuse for the failure or (as the case may be) disclosure.

For the purposes of this paragraph—

Where a deposit-taker becomes liable to a penalty under paragraph 14—

An assessment of a penalty by virtue of paragraph (a) of paragraph 14(1) must be made within the period of 12 months beginning with the day on which the deposit-taker becomes liable to the penalty.

An assessment of a penalty under any of paragraphs (b) to (g) of paragraph 14(1) must be made within the period of 12 months beginning with the latest of the following—

A deposit-taker may appeal against—

Notice of an appeal must be given to HMRC before the end of the period of 30 days beginning with the day on which the notification under paragraph 15 was given.

Notice of an appeal must state the grounds of appeal.

On an appeal under sub-paragraph (1)(a) that is notified to the tribunal (in accordance with Part 5 of TMA 1970: see below) the tribunal may confirm or cancel the decision.

On an appeal under sub-paragraph (1)(b) that is notified to the tribunal, the tribunal may—

Subject to this paragraph and paragraph 17, the provisions of Part 5 of TMA 1970 relating to appeals have effect in relation to appeals under this paragraph as they have effect in relation to an appeal against an assessment to income tax.

A penalty under paragraph 14 must be paid—

A penalty under paragraph 14 may be enforced as if it were income tax charged in an assessment and due and payable.

The Commissioners may by regulations amend any of the following provisions by substituting a different amount for the amount for the time being specified there—

The Commissioners may by regulations amend any of the following provisions by substituting a different period for the period for the time being specified there—

The Commissioners may by regulations make provision supplementing this Part of this Schedule.

The regulations may, in particular, make provision—

Regulations under this Part of this Schedule may—

Regulations under this Part of this Schedule are to be made by statutory instrument.

A statutory instrument containing only regulations within sub-paragraph (4) is subject to annulment in pursuance of a resolution of the House of Commons.

The regulations within this sub-paragraph are—

Any other statutory instrument containing regulations under this Part of this Schedule may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons.

In this Part of this Schedule—“affected account” has the meaning given by paragraph 6(7);“the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs;“contract settlement” means an agreement made in connection with any person's liability to make a payment to the Commissioners under or by virtue of an enactment;“deduction notice” has the meaning given by paragraph 13;“deposit-taker” means a person who may lawfully accept deposits in the United Kingdom in the course of a business (see sub-paragraph (2));“HMRC” means Her Majesty's Revenue and Customs;“hold notice” has the meaning given by paragraph 4;“information notice” has the meaning given by paragraph 3;“interested third party”, in relation to a relevant account, has the meaning given by paragraph 8(11);“joint account”, in relation to a person, means an account held by the person and one or more other persons;“notice” means notice in writing;“notified sum”, in relation to a hold notice, has the meaning given by paragraph 8(8);“prescribed” means prescribed by regulations made by the Commissioners;“relevant account” (in relation to a hold notice) has the meaning given by paragraph 6(6);“relevant sum”, in relation to a person, has the meaning given by paragraph 2(1);“the safeguarded amount” (in relation to a hold notice) means the amount specified as the safeguarded amount in the notice (see paragraph 4(2)(c));“the specified amount” (in relation to a hold notice) means the amount specified as such in the notice (see paragraph 4(2)(b));“suspense account” has the meaning given by paragraph 6(3)(b)(i);“the tribunal” means the First-tier Tribunal;“working day” means a day other than—Saturday or Sunday, Christmas Eve, Christmas Day or Good Friday, or a day which is a bank holiday under the Banking and Financial Dealings Act 1971 in England and Wales or Northern Ireland.

The definition of “deposit-taker” in sub-paragraph (1) is to be read with—

Section 176 (preferential charge on goods distrained) is amended as follows.

For subsection (2) substitute—

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

Accordingly, in the heading for the section, after “distrained” insert “ , etc ”.

In section 347 (distress, etc)—

In paragraph 40(3) of Schedule 19 to the Enterprise and Regulatory Reform Act 2013 (which amends section 347(3) of the Insolvency Act 1986 to substitute “ made ” for “adjudged”), the reference to subsection (3) of section 347 is to be read as a reference to the version of subsection (3) substituted by sub-paragraph (1) of this paragraph.

Article 150 (preferential charge on goods distrained) is amended as follows.

For paragraph (2) substitute—

In paragraph (3) for “(2)” substitute “ (2A) ”.

Accordingly, in the heading for the Article after “distrained” insert “ , etc ”.

Article 301 (preferential charge on goods distrained) is amended as follows.

For paragraph (1) substitute—

In paragraph (2) for “(1)” substitute “ (1A) ”.