UKPGA-2018-3 Finance Act 2018 UK

For the tax year 2018-19 the default rates of income tax are as follows—

For the tax year 2018-19 the savings rates of income tax are as follows—

Chapter 3A of Part 3 of ITA 2007 (transferable tax allowance) is amended as follows.

Section 55B (tax reduction: entitlement) is amended in accordance with subsections (3) to (5).

In subsection (2) (conditions for entitlement to tax reduction)—

After subsection (5) insert—

In subsection (6) (reduced personal allowance for transferor)—

Section 55C (elections to reduce personal allowance) is amended in accordance with subsections (7) and (8).

In subsection (1)(a) (individual may make election if married or in civil partnership)—

After subsection (4) insert—

Section 55D (procedure for elections under section 55C) is amended in accordance with subsections (10) and (11).

In subsection (3) (elections which are not automatically continued in force for subsequent years), after “is made after the end of the tax year to which it relates” insert “ or is made after the death of either of the spouses or civil partners ”.

In subsection (4) (election may be withdrawn only by individual who made it), after “by whom the election was made” insert “ ; an election made by an individual's personal representatives may not be withdrawn ”.

The amendments made by this section—

In Chapter 8 of Part 4 of ITEPA 2003 (exemptions: special kinds of employees), after section 297C insert—

The amendment made by subsection (1) has effect in relation to payments on or after such date as may be specified in regulations made by the Treasury.

Section 141 of ITEPA 2003 (benefits in kind: appropriate percentage for diesel cars) is amended as follows.

For subsection (1) substitute—

In subsection (2)—

After subsection (2) insert—

In sections 139(7)(a) and 140(5)(a) of ITEPA 2003 (appropriate percentage), before “diesel” insert “ certain ”.

The amendments made by this section have effect in relation to the tax year 2018-19 and subsequent tax years.

Chapter 3 of Part 6 of ITEPA 2003 (payments, and other benefits, on termination of employment etc) is amended as follows.

In section 413 (exception from charge on termination etc payment where employee's work history includes sufficient foreign service), before subsection (1) insert—

In section 414(1) (reduction of termination etc payment where foreign service insufficient for section 413 exception)—

After section 414A insert—

The amendments made by this section have effect—

In Part 5 of ITA 2007 (enterprise investment scheme)—

In Part 5A of ITA 2007 (seed enterprise investment scheme)—

In Part 6 of ITA 2007 (venture capital trusts)—

The amendments made by this section come into force in accordance with provision made by the Treasury by regulations.

Regulations under subsection (4)—

Nothing in the specified EIS and VCT transitional provisions (see subsection (2)) prevents any shares or other investments constituting relevant investments (within the meaning given by section 173A(3), 280B(4) or 292A(3) of ITA 2007) for the purposes of determining entitlement to—in respect of shares issued or investments made on or after 1 December 2017.

The specified EIS and VCT transitional provisions are—

In this section—“EIS income tax relief” means relief under Part 5 of ITA 2007 (enterprise investment scheme);“income tax relief for social investments” means relief under Part 5B of ITA 2007;“VCT income tax relief” means relief under Part 6 of ITA 2007 (venture capital trusts).

In section 104M of CTA 2009 (amount of R&D expenditure credit), in subsection (3), for “11%” substitute “ 12% ”.

The amendment made by subsection (1) has effect in relation to expenditure incurred on or after 1 January 2018.

In section 739 of CTA 2009 (meaning of “proceeds of realisation”) after subsection (1) insert—

The amendment made by this section applies in relation to a realisation which takes place on or after 22 November 2017, 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 section 844 of CTA 2009 (overview of Chapter 13 of Part 8: transactions between related parties) after subsection (2) insert—

After section 849A of that Act insert—

The amendments made by this section apply in relation to a grant of a licence or other right made on or after 22 November 2017, 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).

Chapter 4 of Part 8 of CTA 2010 (oil activities: calculation of profits) is amended as follows.

In section 291 (corporation tax treatment of oil activities: tariff receipts etc), for subsection (9) substitute—

After section 291 (but before the italic heading preceding section 292) insert—

In section 291—

The amendments made by subsections (1) to (4) have effect in relation to accounting periods beginning on or after 1 January 2018.

In the Investment Allowance and Cluster Area Allowance Regulations (Investment Expenditure) Regulations 2017 (S.I. 2017/292), in regulation 3 (operating expenditure)—

The amendments made by subsection (6) have effect in relation to any expenditure that is incurred on or after 1 January 2018.

The amendments made by subsection (6) are to be treated as having been made by the Treasury under the applicable powers to make regulations conferred by sections 332BA and 356JE of CTA 2010.

In CTA 2010, after section 987A insert—

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

TCGA 1992 is amended as follows.

In section 53 (indexation allowance), before subsection (2) insert—

In section 54 (calculation of indexation allowance)—

In section 110 (indexation for section 104 holdings for corporation tax)—

In section 114 (consideration for options: corporation tax)—

Subject to subsection (7), the amendments made by this section have effect in relation to disposals on or after 1 January 2018.

This section does not affect the computation of the amount of so much of any gain as—

In section 140 of TCGA 1992 (postponement of charge on transfer of assets to non-resident company), after subsection (4A) insert—

The amendment made by this section has effect in relation to disposals on or after 22 November 2017.

In section 176(1) of TCGA 1992 (depreciatory transactions within a group of companies), for “within the period of 6 years ending with the disposal” substitute “ on or after 31st March 1982 ”.

The amendment made by this section has effect in relation to disposals of shares in, or securities of, a company—

Part 2 of TIOPA 2010 (double taxation relief) is amended as follows.

After section 71 insert—

In section 78(1) (meaning of “overseas permanent establishment”)—

In section 112(4) (deduction from income for foreign tax instead of credit against UK tax), after paragraph (a) insert—.

Section 71B of TIOPA 2010 has effect in relation to accounting periods beginning on or after 22 November 2017.

For the purposes of sections 71A and 71B of TIOPA 2010, if a company has an accounting period beginning before, and ending on or after, that date (“the straddling period”)—

In determining whether or not section 71B of TIOPA has effect in relation to an accounting period of a company—

TIOPA 2010 is amended as follows.

For section 81 (giving a counteraction notice) substitute—

In section 87 (section 83(2) and (4): schemes that would reduce a person‘s tax liability)—

Omit sections 89 to 95 (counteraction notices).

In section 371SR (double taxation relief: counteraction notices)—

The amendments made by subsections (2), (4) and (5) have effect in relation to any return under TMA 1970 or Schedule 18 to FA 1998 where the date by which the return is required to be made is after 31 March 2018.

The amendments made by subsection (3) have effect in relation to a credit for foreign tax which relates to a payment of foreign tax on or after 22 November 2017.

In section 2 of TIOPA 2010 (giving effect to arrangements made in relation to other territories) after subsection (1) insert—

In section 3 of that Act (arrangements may include retrospective or supplementary provision), in subsection (2)—

In section 158 of IHTA 1984 (double taxation conventions), after subsection (1) insert—

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

The provision made by section 2(1A) and 3(2)(d) of TIOPA 2010 in relation to Orders under section 2 of that Act applies, and is to be regarded as always having applied, in relation to Orders in Council under any provision which that section replaces (directly or indirectly).

The provision made by section 158(1ZA) and (1ZB) of IHTA 1984 in relation to Orders under section 158 of that Act applies, and is to be regarded as always having applied, in relation to Orders in Council under any provision which that section replaces (directly or indirectly).

In section 987 of ITA 2007 (meaning of “quoted Eurobond”)—

In each of section 151N of TCGA 1992, section 564G of ITA 2007 and section 507 of CTA 2009 (investment bond arrangements)—

The amendments made by subsection (1) have effect in relation to payments made on or after 1 April 2018.

The amendments made by subsection (2) have effect—

Section 94E of ITTOIA 2005 (excluded vehicles) is amended in accordance with subsections (2) and (3).

In subsection (3)(b)—

After subsection (3) insert—

In section 272 of that Act (application of trading income rules: GAAP), in subsection (2), in the table, at the appropriate place insert—

In section 272ZA of that Act (application of trading income rules: cash basis), in subsection (1), in the table, at the appropriate place insert—

In section 59 of CAA 2001 (unrelieved qualifying expenditure)—

The amendments made by subsections (2), (3) and (6)(a) have effect for the tax year 2018-19 and subsequent tax years.

The amendments made by subsections (4), (5) and (6)(b) have effect for the tax year 2017-18 and subsequent tax years.

Section 94E of ITTOIA 2005 (meaning of “excluded vehicles”) has effect, in its application as a result of section 271E of that Act (profits of a property business: application of trading income rules), as if after subsection (2) there were inserted—

In the following provisions of F(No.2)A 2015 (which relate to carried interest) omit the words from “unless” to “that date”—

The amendments made by subsection (1) have effect in relation to carried interest arising on or after 22 November 2017.

For the purposes of subsection (2) “carried interest” and “arising” have the same meaning as in the provisions amended.

VATA 1994 is amended as follows.

In section 69(1) (breaches of regulatory provisions) after paragraph (g) insert.

Before section 77B insert— “ Online marketplaces ”.

In section 77B (joint and several liability: operators of online marketplaces)—

After section 77B insert—

In section 77C (assessments)—

In section 77D (interest)—

After section 77D insert—

In section 33 of VATA 1994 (refunds of VAT in certain cases), subsection (3) is amended as follows.

In paragraph (a) after “a local authority” insert “ and a combined authority established by an order made under section 103(1) of the Local Democracy, Economic Development and Construction Act 2009 ”.

After paragraph (a) insert—.

In paragraph (f), omit “a police authority and”.

After paragraph (f) insert—.

The amendments made by this section have effect in relation to supplies made, and acquisitions and importations taking place, on or after the day on which this Act is passed.

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

After section 57A insert—

After Schedule 6 insert—

In section 110 (approval of regulations under general power) at the end insert—

In Schedule 9 (right to buy, shared ownership leases etc), at the end insert—

The following provisions (which are spent provisions relating to first-time buyers) are repealed—

In Schedule 2 to the Wales Act 2014 (amendments relating to the disapplication of UK stamp duty land tax in relation to Wales), after paragraph 9 insert—

The amendments made by subsections (1) to (5) have effect in relation to any land transaction of which the effective date is or is after 22 November 2017.

Schedule 12 makes provision about landfill tax, including provision for disposals of material elsewhere than at landfill sites to be chargeable.

That Schedule has effect only in relation to disposals made in England or Northern Ireland.

Chapter 4 of Part 1 of FA 1994 (air passenger duty) is amended as follows.

In section 30(4A)(b) as amended by F(No.2)A 2017 (rate for long haul departures not from Northern Ireland: travel not in sole or lowest class, and higher rate does not apply), for “£156” substitute “ £172 ”.

In section 30(4E)(d) (higher rate for long haul departures not from Northern Ireland is six times standard-class long haul rate), for “six” substitute “ 6.6 ”.

In section 30A(5A)(c)(ii) (higher rate for long haul departures from Northern Ireland if not set by Act of the Northern Ireland Assembly is six times standard-class rate for long haul departures from Northern Ireland), for “six” substitute “ 6.6 ”.

The amendments made by this section have effect in relation to the carriage of passengers beginning on or after 1 April 2019.

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

In paragraph 1 (general rate)—

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

For paragraph 1GC (rates on first licence for light passenger vehicles registered on or after 1 April 2017) substitute—

In paragraph 1J (rates for light goods vehicles) in paragraph (a) for “£240” substitute “ £250 ”.

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

The amendments made by this section have effect in relation to licences taken out on or after 1 April 2018.

TPDA 1979 is amended as follows.

For the table in Schedule 1 substitute—

The amendment made by this section is treated as having come into force at 6pm on 22 November 2017.

Section 24 of FA 1994 (power to enter premises and inspect goods) is amended as follows.

The existing text becomes subsection (1).

In that subsection—

After that subsection insert—

Schedule 1 to VERA 1994 (annual rates of duty) is amended in accordance with subsections (2) to (5).

In paragraph 1A(2) (meaning of “light passenger vehicle”), at the end insert “ or, as the case may be, within Category M1 of Annex II to Directive 2007/46/EC (vehicle designed and constructed primarily for the carriage of passengers and comprising no more than 8 seats in addition to the driver's seat) ”.

In paragraph 1G(1) (meaning of “EU certificate of conformity”), for “issued by a manufacturer under any provision of the law of a Member State implementing Article 6 of Council Directive 70/156/EEC, as amended” substitute “ within the meaning of Council Directive 70/156/EEC or Directive 2007/46/EC of the European Parliament and of the Council of 5 September 2007 ”.

In paragraph 1GA (vehicles to which Part 1AA applies etc)—

In paragraph 1H(2) (meaning of “light goods vehicle”), at the end insert “ or, as the case may be, within Category N1 of Annex II to Directive 2007/46/EC (vehicle designed and constructed primarily for the carriage of goods and having a maximum mass not exceeding 3.5 tonnes) ”.

In Schedule 2 to VERA 1994 (exempt vehicles), in paragraph 25(4)(b), for “Schedule)” substitute “ Schedule as read with paragraph 1GA(5) of that Schedule) ”.

The amendments made by subsections (2) to (6) have effect in relation to licences taken out on or after 29 November 2017.

ITEPA 2003 is amended in accordance with subsections (9) to (11).

In section 136 (car with a CO 2 emissions figure: post-September 1999 registration)—

In section 137 (car with a CO 2 emissions figure: bi-fuel cars)—

In section 171(1) (minor definitions: general)—

The amendments made by subsections (9) to (11) have effect for the tax year 2017-18 and subsequent tax years.

In section 554Z2 of ITEPA 2003 (value of relevant step to count as employment income), after subsection (1) insert—

After section 554Z2 of ITEPA 2003, insert—

Schedule 11 to F(No.2)A 2017 (employment income provided through third parties: loans etc outstanding on 5 April 2019) is amended as follows.

Before paragraph 37 (but after the italic heading preceding that paragraph) insert—

Part 7A of ITEPA 2003 (employment income provided through third parties) is amended in accordance with this paragraph.

In the italic heading before section 554A, at the end insert “ : main case ”.

In the heading of section 554A, at the end insert “ : main case ”.

In section 554Z(2) (interpretation: “A” and “B”) at the end insert “ or, as the case may be, section 554AA(1) ”.

Schedule 11 to F(No.2)A 2017 (employment income provided through third parties: loans etc outstanding on 5 April 2019) is amended in accordance with this paragraph.

In paragraph 1 (relevant step)—

Paragraph 36 (duty to provide loan balance information to B) is amended in accordance with this paragraph.

In sub-paragraph (2) for “loan balance information” substitute “ loan charge information (see paragraph 35D) ”.

Omit sub-paragraphs (3), (5) and (6).

In the italic heading preceding paragraph 36, for “balance” substitute “ charge ”.

Section 689 of ITEPA 2003 (PAYE: employee of non-UK employer) is amended in accordance with this paragraph.

In subsection (4), in the words before paragraph (a), after “employee,” insert “ and if the case is not within subsection (4A), ”.

After subsection (4) insert—

Part 4 of FA 2004 (pension schemes etc) is amended in accordance with sub-paragraphs (2) to (8).

In section 150 (meaning of “pension scheme”), after subsection (5) insert—

In section 153 (registration of pensions schemes), in subsection (5), at the end insert

In section 158 (grounds for de-registration) in subsection (1), at the end insert

At the beginning of Chapter 8 (supplementary) insert—

In section 279 (other definitions), after subsection (1A) insert—

In section 280(2) (general index), in the table, insert at the appropriate places—;;.

In Schedule 36 (pension schemes etc: transitional provisions and savings), in paragraph 1 (deemed registration of existing schemes), after sub-paragraph (4) insert—

In consequence of the amendment made by sub-paragraph (5), in section 30 of F(No.3)A 2010 (pension scheme under section 67 of Pensions Act 2008), omit subsection (1).

The following provisions of paragraph 1 come into force on the day on which section 3 of the Pension Schemes Act 2017 (prohibition on operating Master Trust scheme unless authorised) comes into force or, if later, the day on which this Act is passed—

The following provisions of paragraph 1 come into force on 6 April 2018—

So far as not brought into force by sub-paragraph (1) or (2), and subject to sub-paragraph (4), paragraph 1 comes into force on the day on which this Act is passed.

Paragraph 1(8) is treated as always having had effect.

For the purposes of section 153(5)(h) and (i) of FA 2004 (as inserted by paragraph 1(3)) it is immaterial when the application in question was made.

Sub-paragraph (2) applies to a pension scheme that—

Section 274ZA(2) of FA 2004 is treated as always having had effect in relation to the pension scheme.

In this paragraph, “Master Trust scheme” and “occupational pension scheme” have the same meaning as in Part 4 of FA 2004.

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

In subsection (2)(a), after “EIS relief” insert “ (qualifying shares) ”.

In subsection (2)(b), for “£1 million” substitute “ the allowable amount ”.

After subsection (2) insert—

In subsection (4), for “subsections (1) and (2)” substitute “ subsections (1) to (2ZB) ”.

At the end insert—

Section 173A of ITA 2007 (the maximum amount raised annually through risk finance investments requirement for EIS relief) is amended as follows.

In subsection (1), for “must not exceed £5 million” substitute

After subsection (5) insert—

Section 292A of ITA 2007 (the maximum amount raised annually through risk finance investments requirement for VCT relief) is amended as follows.

In subsection (1), for “must not exceed £5 million” substitute

After subsection (6) insert—

The amendments made by this Schedule come into force in accordance with provision made by the Treasury by regulations.

Regulations under sub-paragraph (1)—

Section 264A of ITA 2007 (restricting VCT relief where there is a linked sale) is amended as follows.

In subsection (5), at the beginning of paragraph (b) insert “ if subsection (7A) applies, ”.

After subsection (7) insert—

Section 274 of ITA 2007 is amended as follows.

In the table in subsection (2), after the entry for “the investment limits condition” insert—

In subsection (3), after paragraph (f) insert—

Section 285 of ITA 2007 (interpretation of Chapter 3 etc of Part 6) is amended as follows.

In subsection (2)—

After that subsection insert—

Part 8 of Schedule 2 to ITA 2007 (transitional provision: venture capital trusts) is amended as follows.

In paragraph 69 (the no guaranteed loan requirement), after “acquired” insert “ before 6 April 2018 ”.

In paragraph 70 (the proportion of eligible shares requirement), in sub-paragraph (2), after “acquired” insert “ before 6 April 2018 ”.

In paragraph 81 (meaning of “excluded activities”), after “acquired” insert “ before 6 April 2018 ”.

In Schedule 2 to F(No.3)A 2010 (venture capital trusts), in paragraph 6(2)(b), after “the investing company” insert “ before 6 April 2018 ”.

The 30% eligible shares condition does not apply in relation to an accounting period ending on or after 6 April 2018.

In sub-paragraph (2) “the 30% eligible shares condition” means the condition referred to as such in section 274(2) of ITA 2007 as originally enacted.

TMA 1970 is amended as follows.

In section 12AA (partnership returns), after subsection (10A) insert—

In section 118(1) (interpretation), at the appropriate place insert—.

The amendment made by paragraph 1 has effect in relation to the tax year 2018-19 and subsequent tax years.

The amendment made by paragraph 2 has effect in relation to accounting periods beginning on or after 1 April 2018.

The amendments made by paragraph 3 have effect in relation to partnership returns relating to the tax year 2018-19 or any subsequent tax year.

ITTOIA 2005 is amended as follows.

In section 847 (general provisions), after subsection (3) insert—

After section 852 insert—

After section 855 insert—

The amendments made by this paragraph have effect in relation to the tax year 2018-19 and subsequent tax years.

TMA 1970 is amended as follows.

In section 12AA (partnership returns) after subsection (1A) insert—

In section 12AB (partnership statements), after subsection (1) insert—

In that section, in subsection (5), at the appropriate places insert—;.

The amendments made by this paragraph have effect in relation to partnership returns relating to the tax year 2018-19 or any subsequent tax year.

F(No.2)A 2017 is amended as follows.

In section 60, in paragraph 17 of Schedule A1 to be inserted into TMA 1970—

In Schedule 14 (amendments relating to digital reporting etc), after paragraph 10 insert—

TMA 1970 is amended as follows.

In section 12AA(6) (partnership return to include information about partners), at the end (and on a new line) insert—

After section 12AB (partnership return to include partnership statement) insert—

In section 98 (special returns, etc), in column 2 of the Table, at the appropriate place insert “ section 12ABZA(3) of this Act ”.

The amendments made by this paragraph have effect in relation to returns—

TMA 1970 is amended as follows.

After section 12ABZA (as inserted by this Act) insert—

In section 12ABA(1) (amendment of partnership return by taxpayer), after “partnership return” insert “ (including anything included in the return by virtue of section 12ABZB(7)(b) (amendment of partnership return following referral to tribunal)) ”.

In section 12AC (enquiry into partnership return)—

In section 12AD (amendment of partnership return by taxpayer during enquiry)—

In section 28B(2)(b) (completion of enquiry into partnership return), after “return” insert “ (including anything included in the return by virtue of section 12ABZB(7)(b) (amendment of partnership return following reference to tribunal)) ”.

In section 30B(1) (amendment of partnership return where loss of tax discovered), in the words after paragraph (c), after “return” insert “ (including anything included in the return by virtue of section 12ABZB(7)(b) (amendment of partnership return following reference to tribunal)) ”.

In section 55 (recovery of tax not postponed)—

In section 59B(5)(b) (payment of tax following amendment of self-assessment), after “section” insert “ 12ABZB(8), ”.

In Schedule 3ZA (date by which payment to be made after amendment or correction of self-assessment), in paragraph 7 (amendment consequential on correction of partnership return by Revenue)—

FA 2014 is amended as follows.

In each of sections 220 and 221 (content of accelerated payment notice), at the end of subsection (3) insert “ (and disregarding any dispute which has been referred to a tribunal under section 12ABZB(3) of TMA 1970 but not yet determined) ”.

In section 226 (penalty for failure to pay accelerated payment), after subsection (7) insert—

In section 227 (withdrawal, modification or suspension of accelerated payment notice)—

In Schedule 32 (accelerated payments and partnerships)—

Schedule 14 to F(No.2)A 2017 (amendments relating to digital reporting etc) is amended as follows.

After paragraph 10B (as inserted by this Schedule) insert—

After paragraph 43 insert—

In paragraph 46, at the end insert—

Section 259BD (chargeable companies in respect of CFCs and foreign CFCs) is amended as follows.

After subsection (12) insert—

In subsection (13), in paragraph (b) of the definition of “chargeable profits”, after “Part” insert “ (including any qualifying CFC amount within the meaning given by subsection (12B)) ”.

Section 259KC (denial of the relevant deduction in relation to imported mismatch payments) is amended as follows.

After subsection (2) insert—

In subsections (4)(a) and (7)(a), for “subsection (6)(a)” substitute “ section 259KA(6)(a) ”.

The amendments made by paragraphs 2(b), 3 to 6 and 12—

For the purposes of sub-paragraph (1)(a), (b) and (c)(ii), where there is a straddling period—

A “straddling period” means an accounting period or payment period (as the case may be) beginning before 1 January 2018 and ending on or after that date.

Part 6A of TIOPA 2010 has effect, and is to be deemed always to have had effect, with the amendments set out in paragraphs 2(a), 7 to 11 and 13 to 18.

Section 384 (relevant derivative contract debits) is amended as follows.

In subsection (3), for paragraph (c) substitute—

After subsection (3) insert—

Section 387 (relevant derivative contract credits) is amended as follows.

In subsection (3), for paragraph (c) substitute—

After subsection (3) insert—

Section 411 (“relevant expense amount” and “relevant income amount”) is amended as follows.

In subsection (1)(e), for sub-paragraph (iii) substitute—.

In subsection (2)(d), for sub-paragraph (iii) substitute—.

Section 433 (meaning of “qualifying infrastructure company”) is amended as follows.

In subsection (1)(c), for “(see subsection (11))” substitute “ (see subsections (11) and (12)) ”.

In subsection (11)(a), for “activity that the company carries on” substitute “ source of income that the company has ”.

After subsection (11) insert—

Section 434 (elections under section 433) is amended as follows.

In subsection (1)(a), for “the beginning” substitute “ the end ”.

In subsection (5), after paragraph (a) (but before the “and” at the end of it) insert—.

Section 436 (meaning of “qualifying infrastructure activity”) is amended as follows.

In subsection (2)(d), for “(see subsection (10))” substitute “ (see subsections (10) and (10A)) ”.

After subsection (10) insert—

Paragraph 9 of Schedule 7A (extended period for submission of full return in place of abbreviated return) is amended as follows.

In sub-paragraph (1)(a), omit “abbreviated”.

In sub-paragraph (2)—

In the italic heading before that paragraph, for “in place of abbreviated return” substitute “ for period where no restriction ”.

Paragraph 70 of Schedule 7A (cases where company treated as amending return) is amended as follows.

In sub-paragraph (1), for “is treated as having amended” substitute “ must amend ”.

After that sub-paragraph insert—

For the italic heading before that paragraph substitute “ Other cases where company must amend its return etc ”.

Paragraph 71 of Schedule 7A (regulations for purposes of paragraph 70 etc) is amended as follows.

In sub-paragraph (1)(a), for “paragraph 70” substitute “ paragraph 70(2) ”.

In the italic heading before that paragraph, for “paragraph 70” substitute “ paragraph 70(2) ”.

Section 411 (meaning of “relevant expense amount” and “relevant income amount”) is amended as follows.

In subsection (1)—

In subsection (2)(f), after “debt factoring” insert “ or any similar transaction ”.

Section 412 (section 411: interpretation) is amended as follows.

In subsection (1)—

In subsection (6)—

The amendments made by paragraphs 2 to 5, 10 and 13 have effect in relation to periods of account of worldwide groups that begin on or after 1 January 2018.

The following provisions apply if—

In this paragraph—

For the purposes of Part 10 of TIOPA 2010, the group's actual financial statements are treated as not having been drawn up.

Instead, financial statements of the worldwide group are treated for those purposes as having been drawn up in respect of each of the following periods—

If condition C or D in section 481 of TIOPA 2010 is met in relation to the group's actual financial statements, the financial statements treated as drawn up by sub-paragraph (5) are treated as drawn up in accordance with the generally accepted accounting principles and practice with which the group's actual financial statements were drawn up.

If neither of those conditions is met in relation to the group's actual financial statements, the financial statements treated as drawn up by sub-paragraph (5) are IAS financial statements.

If, for the purpose of determining amounts recognised in the financial statements treated as drawn up by sub-paragraph (5), it is expedient to apportion any amount that is recognised in the group's actual financial statements, the apportionment is to be made in accordance with section 1172 of CTA 2010 (apportionment on a time basis).

But if it appears that apportionment in accordance with that section would work unjustly or unreasonably, the apportionment is to be made on a just and reasonable basis.

Expressions used in this paragraph and in Part 10 of TIOPA 2010 have the same meaning in this paragraph as they have in that Part.

Part 10 of TIOPA 2010 has effect, and is to be deemed always to have had effect, with the amendments set out in paragraphs 6 to 9, 12 and 18 to 21.

But, in the case of the amendment set out in paragraph 6 or 12, the reporting company of the worldwide group for any period of account beginning before 1 January 2018 may make an election for the amendment to have no effect in relation to the period of account.

Paragraph 12 of Schedule 7A to TIOPA 2010 applies to an election under sub-paragraph (2).

Expressions used in this paragraph and in Part 10 of TIOPA 2010 have the same meaning in this paragraph as they have in that Part.

Paragraph 25 (UK allocated equity and liabilities: netting) is amended as follows.

In sub-paragraph (1), in the words before paragraph (a), after “applies” insert “ for the purposes of Steps 1 and 2 in paragraph 24(1) ”.

In sub-paragraph (1)(c), for the words from “makes provision” to “occurs” substitute “ makes net settlement provision ”.

After sub-paragraph (1) insert—

For sub-paragraph (2) substitute—

In sub-paragraph (3)(d), for “ “the netting event occurs”” substitute “ “a netting event occurs” ”.

Omit sub-paragraph (8).

Omit sub-paragraph (13).

Paragraph 27 (UK allocated equity and liabilities: determining the amount of the foreign bank's chargeable equity and liabilities) is amended in accordance with this paragraph.

In sub-paragraph (2)—

In sub-paragraph (3), for paragraph (b) (but not the “and” following it) substitute—.

In sub-paragraph (5), in the words before paragraph (a), for “paragraph 17(7) or 19(17)” substitute “ paragraph 15(2)(b) ”.

In sub-paragraph (5), for paragraphs (a) and (b) substitute—

After sub-paragraph (5) insert—

Paragraph 47 is amended in accordance with this paragraph.

In sub-paragraph (11), for the words from “paragraph 16(1)(c) and (d)” to the end substitute “ paragraph 15S(1)(d) and (e), 15T(1)(e) and (f), 15Z3(1)(c) and (d), 25(1)(c) and (d), 27A(1)(d) and (e) or 27B(1)(d) and (e). ”

In sub-paragraph (14)—

Paragraph 54 is amended in accordance with this paragraph.

In sub-paragraph (5)(c)—

In sub-paragraph (6)—

Paragraph 70 is amended in accordance with this paragraph.

After the definition of “contract of insurance” insert—.

After the definition of “entity” insert—.

After the definition of “long term” insert—.

After the definition of “relevant regulated activity” insert—.

After the definition of “UK allocated equity and liabilities” insert—.

In the definition of “UK sub-group” for “paragraph 17(4)” substitute “ paragraph 15B ”.

Omit the definitions of—

In Part 5 (supplementary provision), omit paragraphs 43 and 44 (joint ventures).

In paragraph 27(2)(b) (determining the amount of a relevant foreign bank's chargeable equity and liabilities: adjustments), omit “and 44”.

Paragraph 54 (meaning of “the responsible member”) is amended in accordance with this paragraph.

In sub-paragraph (3) (requirements), for paragraphs (c) and (d) substitute—

In sub-paragraph (3), in the words after paragraph (d)—

After sub-paragraph (3) insert—

After sub-paragraph (6) insert—

In sub-paragraph (7), after “(as the case may be),” insert “ and sub-paragraph (6B) does not apply, ”.

In TCGA 1992, after section 87C insert—

In sections 2(4) and (5), 16ZC(4) and 62(2A)(a) of TCGA 1992, after “87” insert “ , 87K, 87L ”.

In section 86A(1) of TCGA 1992 (attribution of gains to settlor in temporary non-residence cases)—

In section 87 of TCGA 1992 (non-UK resident settlements: attribution of gains to beneficiaries)—

In section 87B of TCGA 1992 (section 87: remittance basis)—

In section 89(3) of TCGA 1992 (application of sections 87 to 87C in relation to migrant settlements), for “87C” substitute “ 87P ”.

In section 91 of TCGA 1992 (increase in tax payable under section 87 or 89(2))—

In sections 279A(7)(b) and 279C(6)(c) of TCGA 1992, after “87” insert “ , 87K, 87L ”.

In paragraph 1A of Schedule 4C to TCGA 1992—

In paragraph 8 of Schedule 4C to TCGA 1992, after sub-paragraph (5) insert—

In consequence of sub-paragraph (4)(b), in Schedule 45 to FA 2013 omit paragraph 101.

The new sections 87D and 87E have effect—

The new sections 87F and 87G, and the amendments made by sub-paragraphs (4) and (11), have effect in relation to payments received in the tax year 2018-19 or a later tax year.

The new sections 87I to 87M have effect in relation to onward payments made on or after 6 April 2018, and do so even in cases where the original payment is received before that date.

The new sections 87N and 87P have effect where the particular tax year is the tax year 2018-19 or a later tax year.

The amendment made in section 89 has effect for the tax year 2018-19 and later tax years.

Sub-paragraph (2) applies in a case where—

For the purposes of capital gains tax in respect of any chargeable gain treated by section 87 of TCGA 1992 as accruing to the individual as a result of matching of the payment (or part), section 809B(1A) of ITA 2007 does not have effect in relation to the tax year which consists of or includes the period of return.

Where by virtue of sub-paragraph (2) the individual makes a claim under section 809B of ITA 2007 for any of the tax years 2018-19 to 2020-21 inclusive, sections 809C, 809G and 809H of ITA 2007 do not apply to the individual for that tax year.

Part 4 of Schedule 45 to FA 2013 explains what “temporary period of non-residence” and “period of return” mean.

Chapter 5 of Part 5 of ITTOIA 2005 (settlements: amounts treated as income of settlor) is amended as follows.

In the Chapter heading, after “settlor” insert “ or family ”.

Section 731 (charge to tax on income treated as arising under section 732) is amended as follows.

After subsection (1B) insert—

In subsection (2A) (which signposts section 735), for “section 735” substitute “ sections 735, 735B and 735C ”.

Section 97 of TCGA 1992 (settlements: supplementary provisions) is amended as follows.

In subsection (1)(a) (meaning of “capital payment”), for “not chargeable to income tax on the recipient or,” substitute.

In subsection (3) (cases where benefit may be treated as chargeable gain and as income), for “section 733 of ITA 2007 treated as the recipient's” substitute “section 643A or 643J or 643L of ITTOIA 2005, or sections 731 to 733E of ITA 2007, treated as an individual's”.

In consequence of sub-paragraph (3), in Schedule 1 to ITA 2007 omit paragraph 302.

The references to section 733A of ITA 2007 that are inserted by sub-paragraphs (2) and (3) include that section as it has effect for the tax year 2017-18.

Subject as follows, the amendments made by paragraphs 3 to 19 have effect for the tax year 2018-19 and subsequent tax years.

None of the references to an earlier tax year in Step 1 of the new section 643B(1) of ITTOIA 2005, or in new section 643C(2) of ITTOIA 2005, includes any tax year earlier than the tax year 2018-19 except that, in the phrase “benefits provided by the trustees in the year or in an earlier tax year” in the definition of “TOAA” in new section 643C(2) of ITTOIA 2005, the reference to an earlier tax year does include tax years earlier than the tax year 2018-19.

New sections 643I to 643L and 643N of ITTOIA 2005 have effect only in relation to onward payments made on or after 6 April 2018.

New section 643M of ITTOIA 2005, and new sections 733B to 733E and 735C of ITA 2007, have effect only in relation to onward payments made on or after 6 April 2018, but have effect in relation to an onward payment made on or after that date even where the onward payment is referable to a benefit received before that date.

The amendment in section 733A(7) of ITA 2007 made by paragraph 15 also has effect for the tax year 2017-18.

Paragraph 3 (single dwelling transactions: purchaser is an individual) is amended as follows.

In sub-paragraph (6)—

After sub-paragraph (6) insert—

In sub-paragraph (7) after paragraph (b) (but before “and”) insert—.

After sub-paragraph (7) insert—

In paragraph 12 (settlements and bare trusts with beneficiaries who are children) after sub-paragraph (1) insert—

In paragraph 17 (dwellings outside England, Wales and Northern Ireland) after sub-paragraph (5) insert—

Paragraph 3 is amended as follows.

After sub-paragraph (1) insert—

In sub-paragraph (7), in the opening words, for “may become” substitute “ is also ”.

Paragraph 12 is amended as follows.

In sub-paragraph (2)(a) after “any” insert “ relevant ”.

For sub-paragraph (3) substitute—

Omit sub-paragraph (4).

Paragraph 17 is amended as follows.

In sub-paragraph (1) omit “, Wales”.

After sub-paragraph (1) insert—

In sub-paragraph (3)—

In sub-paragraph (4)—

For sub-paragraph (5) substitute—

Omit sub-paragraph (6).

The amendments made by this Schedule (other than those made by paragraphs 13 and 14(2), (3), (4)(a) and (5)(a)) have effect in relation to any land transaction of which the effective date is, or is after, 22 November 2017.

But the amendments made by paragraph 2 do not have effect in relation to a transaction—

A transaction effected in pursuance of a contract entered into before 22 November 2017 is excluded by this sub-paragraph if—

The amendments made by paragraphs 13 and 14(2), (3), (4)(a) and (5)(a) have effect in relation to any land transaction in relation to which the amendment made by section 16(2) of the Wales Act 2014 (disapplication of UK stamp duty land tax) has effect.

Section 40 (charge to tax) is amended as follows.

For subsection (2) substitute—

After subsection (3) insert—

Section 41 (liability to pay tax) is amended as follows.

In subsection (1), after “a taxable disposal” insert “ made at a landfill site ”.

After subsection (2) insert—

Section 45 (pet cemeteries) is amended as follows.

In subsection (1), after “A disposal” insert “ made at a landfill site ”.

In subsection (2)—

Section 69 (taxable activities) is amended as follows.

For subsection (1) substitute—

In subsection (2)—

Section 70 (interpretation) is amended as follows.

In subsection (1), at the appropriate places insert—;;;

Omit subsections (2) and (2A).

In subsection (4), for “sections 64 to” substitute “ sections 68 and ”.

Schedule 5 (landfill tax) is amended as follows.

Omit paragraph 1B (information: site restoration).

Before paragraph 2 insert—

In paragraph 2A (records: material at landfill sites)—

In paragraph 10 (power to take samples), in sub-paragraph (1) omit “as waste by way of landfill”.

In paragraph 45 (adjustment of disposal contracts), in sub-paragraphs (1)(a) and (c) and (2) omit “landfill”.

In paragraph 46 (adjustment of construction contracts), in sub-paragraph (1)(b) omit “landfill”.

Section 47 (registration) is amended as follows.

In subsections (2)(a), (5) and (6), after “taxable activities” insert “ at a landfill site ”.

After subsection (3) insert—

After subsection (5) insert—

In subsection (6), for “a person” substitute “ a registered person ”.

For subsection (9) substitute—

For subsection (10) substitute—

Section 59 (groups of companies) is amended as follows.

In subsection (2)—

In subsection (3), for “The condition is that the” substitute.

Schedule 5 is amended as follows.

In paragraph 2 (records: registrable persons), in the heading and in sub-paragraphs (1) and (3)(a), for “registrable persons” substitute “ taxable persons ”.

In paragraph 26 (interest on under-declared tax), in sub-paragraphs (1)(a) and (4), for “registrable person” substitute “ registered person ”.

In paragraph 27 (interest on unpaid tax etc), in sub-paragraphs (1)(a), (3)(a), (5)(a) and (7), for “registrable person” substitute “ registered person ”.

Section 50 (power to assess) is amended as follows.

In the heading, for “assess” substitute “ assess: registered persons ”.

In subsection (1)(a), (b), (c) and (d) and subsection (2), for “a person” substitute “ a registered person ”.

Schedule 5 is amended as follows.

In paragraph 27 (interest on unpaid tax etc)—

In paragraph 33 (assessments: time limits)—

In paragraph 36 (the register: publication)—

Schedule 36 to FA 2008 (information and inspection powers) is amended as follows.

In paragraph 60 (business), after sub-paragraph (1) insert—

In paragraph 61A (involved third parties), in entry 12 of the table, for “landfill disposal” substitute “ disposal of material ”.

Schedule 41 to that Act (penalties: failure to notify etc) is amended as follows.

In the table in paragraph 1, in the entry for landfill tax, for “section 47(2) and (3)” substitute “ section 47(2), (3) and (3A) ”.

After paragraph 3 insert—

In paragraph 5 (degrees of culpability), in sub-paragraph (3), after “a relevant excise provision” insert “ , or to assess an amount of landfill tax as due from P under section 50A of FA 1996, ”.

After paragraph 6C insert—

In paragraph 7 (potential lost revenue)—

After paragraph 9 insert—

The amendments made by this Schedule have effect in relation to disposals that are made (or treated as made) on or after 1 April 2018.

Sub-paragraph (1) does not apply to the amendments made by paragraph 17 (as to which, see paragraph 30).

In section 47 of FA 1996 as it has effect following the amendments made by this Schedule—

Where a person is registered under section 47 of FA 1996 immediately before the day on which this Act is passed, the registration continues after that day until terminated in accordance with that section (as amended by paragraph 17) or otherwise.

Where the Commissioners become aware of a disposal that—the disposal is treated for the purposes of Part 3 of FA 1996 as having been made at that place on 1 April 2018.

But a person cannot be guilty of an offence, or liable to a civil penalty, solely as a result of the retrospective effect of this paragraph.

A person who is liable (by virtue of paragraph 31) to pay tax on a disposal made before 1 April 2018 at a place other than a landfill site must—no later than 30 April 2018.

The required information is—

Subsections (2), (3), (6), (8) and (9) of section 71 of FA 1996 (orders and regulations) apply to regulations under sub-paragraph (2)(c) as they apply to regulations under Part 3 of that Act.