UKPGA-2021-26 Finance Act 2021 UK

For the tax year 2021-22 the default rates of income tax are as follows—

For the tax year 2021-22 the savings rates of income tax are as follows—

For the tax year 2021-22, the amount specified in section 12(3) of ITA 2007 (the starting rate limit for savings) is “£5,000”.

Accordingly, section 21 of that Act (indexation) does not apply in relation to the starting rate limit for savings for that tax year.

For the tax years 2022-23, 2023-24, 2024-25 , 2025-26, 2026-27, 2027-28, 2028-29, 2029-30 and 2030-31 , the amount specified in section 10(5) of ITA 2007 (basic rate limit) is “£37,700”.

For the tax years 2022-23, 2023-24, 2024-25 , 2025-26, 2026-27, 2027-28, 2028-29, 2029-30 and 2030-31 , the amount specified in section 35(1) of ITA 2007 (personal allowance) is “£12,570”.

Accordingly—for the tax years 2022-23, 2023-24, 2024-25 , 2025-26, 2026-27, 2027-28, 2028-29, 2029-30 and 2030-31 .

Corporation tax is charged for the financial years 2022 and 2023.

The main rate of corporation tax—

Schedule 1 contains the following provision (with effect from 1 April 2023)—

For the financial year 2023—

In section 79 of FA 2015 (charge to diverted profits tax)—for “25%” substitute “ 31% ”.

The amendments made by this section have effect for accounting periods beginning on or after 1 April 2023.

The remaining provisions of this section deal with a case where a company has an accounting period (a “straddling period”) beginning before 1 April 2023 and ending on or after that date.

For the purpose of calculating the amount of diverted profits tax chargeable on a company for the straddling period—are to be treated as separate accounting periods.

If it is necessary to apportion an amount for the straddling period to the two separate accounting periods, the apportionment is to be made on a time basis according to the respective lengths of the separate accounting periods.

Part 2 of CAA 2001 has effect as if—

Expenditure is qualifying under this subsection if—Expenditure qualifying under this subsection is referred to as “super-deduction expenditure” and a first-year allowance made as a result of expenditure qualifying under this subsection is referred to as a “super-deduction”.

Expenditure is qualifying under this subsection if—Expenditure qualifying under this subsection is referred to as “SR allowance expenditure” and a first-year allowance made as a result of expenditure qualifying under this subsection is referred to as an “SR allowance”.

Expenditure is qualifying under this subsection if—

A first-year allowance made as a result of expenditure qualifying under subsection (4) is to be allocated between the ring fence trade and the other qualifying activity on a just and reasonable basis.

This section has effect as if it were contained in Chapter 4 of Part 2 of CAA 2001 (which, among other things, means that sections 5 and 50 of that Act are relevant for the purpose of determining when expenditure is incurred).

For the purpose of determining when expenditure is incurred for the purpose of subsection (2)(a) or (3)(b), if an amount of expenditure is incurred as a result of a contract entered into before 3 March 2021—

For the purpose of determining whether a person is entitled to a super-deduction or an SR allowance, section 67 of CAA 2001 (plant or machinery treated as owned by person entitled to benefit of contract, etc) applies as if for subsection (1)(b) of that section there were substituted—

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

Section 130(1) of CAA 2001 (postponement of first-year allowances on the provision of a ship) does not apply in relation to a super-deduction or an SR allowance.

In this section “ring fence trade” means a ring fence trade in respect of which tax is chargeable under section 330(1) of CTA 2010 (supplementary charge in respect of ring fence trades).

Sections 11 to 14 contain further provision in connection with super-deductions and SR allowances.

Section 11 contains provision that modifies the percentage that as a result of section 9(1)(b) would otherwise apply to—

Section 12 contains provision about the disposal of plant or machinery in respect of which a super-deduction was made and section 13 contains similar provision in relation to plant or machinery in respect of which an SR allowance was made.

Section 14 contains provision about counteracting tax advantages in connection with super-deductions and SR allowances (but see also Chapter 17 of Part 2 of CAA 2001 which contains other provisions about anti-avoidance).

Sections 11, 12 and 13 have effect as if they were contained in Chapter 5 of Part 2 of CAA 2001 (allowances and charges).

In this section, and in sections 11 to 14—“super-deduction expenditure” and “super-deduction” are to be construed in accordance with section 9(2);“SR allowance expenditure” and “SR allowance” are to be construed in accordance with section 9(3);“additional VAT liability” has the meaning given by section 547(1) of CAA 2001.

Subsection (2) applies where a person incurs super-deduction expenditure in a chargeable period (“the relevant period”) that ends on or after 1 April 2023.

Where this subsection applies, section 9(1)(b) applies as if for “130%” there were substituted the relevant percentage.

Subsection (4) applies where a person becomes entitled in a chargeable period (“the relevant period”) that ends on or after 1 April 2023 to a super-deduction as a result of section 236(2) in respect of an additional VAT liability that is regarded (as a result of that section) as super-deduction expenditure.

Where this subsection applies, section 9(1)(b) applies as if for “130%” there were substituted—

For the purposes of subsections (2) and (4)(a), the relevant percentage is X% where X is determined by—

This section applies to plant or machinery in respect of which a person incurred super-deduction expenditure if a super-deduction was made in respect of some or all of that expenditure.

Where a disposal event occurs in relation to plant or machinery to which this section applies, the person who incurred relevant super-deduction expenditure in respect of it is liable to a balancing charge for the chargeable period in which the event occurs (whether or not the person is also liable to any other balancing charge for that period).

The amount of the balancing charge is, subject to subsection (6), the relevant proportion of the disposal value of the plant or machinery (see sections 61 to 63 of CAA 2001 which, among other provisions of Part 2 of that Act, contain provision about disposal values).

The relevant proportion is determined by dividing the amount of relevant super-deduction expenditure incurred in respect of the plant or machinery by the amount of total relevant expenditure in relation to it.

For the purposes of this section—super-deduction expenditure is “relevant” if a super-deduction was made in respect of it;“total relevant expenditure” in relation to plant or machinery means the sum of the following expenditure incurred in respect of it—relevant super-deduction expenditure; any expenditure in respect of which any other first-year allowance was made; any expenditure that was allocated to a pool for any chargeable period (including for the period in which the disposal event occurs).

If the disposal event occurs in a chargeable period that commenced before 1 April 2023 the amount of the balancing charge is the amount determined under subsection (3) multiplied by the relevant factor.

The relevant factor is 1.3 if the chargeable period ends before 1 April 2023.

If the chargeable period ends on or after 1 April 2023, the relevant factor is determined by—

The balance of an amount of super-deduction expenditure in respect of which a super-deduction is made after deducting that super-deduction is to be treated as nil for the purposes of section 58(5)(b) and (6) of CAA 2001 (allocation of balance of first-year qualifying expenditure to a pool).

In relation to the chargeable period in which the disposal event occurred, TDR (see section 55(1)(b) of CAA 2001) for the pool to which the relevant super-deduction expenditure was allocated is to be reduced by the relevant proportion of the disposal value of the plant or machinery.

Section 135(1) of CAA 2001 (claim for deferment of balancing charges) does not apply in relation to a disposal event in respect of a ship to which this section applies.

This section has effect in relation to disposals occurring on or after 1 April 2021.

This section applies to plant or machinery in respect of which a person incurred SR allowance expenditure in a chargeable period (“the allowance period”) if an SR allowance was made in respect of some or all of that expenditure.

Where a disposal event occurs in relation to plant or machinery to which this section applies, the person who incurred relevant SR expenditure in respect of it is liable to a balancing charge for the chargeable period in which the event occurs (whether or not the person is also liable to any other balancing charge for that period).

The amount of the balancing charge is the relevant proportion of the disposal value of the plant or machinery (see sections 61 to 63 of CAA 2001 which, among other provisions of Part 2 of that Act, contain provision about disposal values).

The relevant proportion is determined by—

For the purposes of this section—SR allowance expenditure is “relevant” if an SR allowance was made in respect of it;“total relevant expenditure” in relation to plant or machinery means the sum of the following expenditure incurred in respect of it—relevant SR allowance expenditure, any expenditure in respect of which any other first-year allowance was made, and any expenditure that is not relevant SR allowance expenditure that was allocated to a pool for any chargeable period (including for the period in which the disposal event occurs).

In relation to the chargeable period in which the disposal event occurred, TDR (see section 55(1)(b) of CAA 2001) for the pool to which the SR allowance expenditure in respect of the plant or machinery was allocated is to be reduced by the amount of the balancing charge.

Section 135(1) of CAA 2001 (claim for deferment of balancing charges) does not apply in relation to a disposal event in respect of a ship to which this section applies.

This section has effect in relation to disposals occurring on or after 1 April 2021.

Any relevant tax advantage that would (in the absence of this section) be obtained as a result of relevant arrangements is to be counteracted by the making of such adjustments as are just and reasonable.

A tax advantage is “relevant” if that advantage is connected with a super-deduction or an SR allowance (for example, the obtaining of such a first-year allowance or the avoidance of a balancing charge under section 12 or 13).

Arrangements are “relevant” if—

Any adjustments required to be made under this section (whether or not by an officer of Revenue and Customs) may be made by way of—or otherwise.

In this section—“arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable);“tax advantage” is to be construed in accordance with section 577(4) of CAA 2001.

This section has effect in relation to any relevant arrangements entered into on or after 3 March 2021.

In section 32(1) of FA 2019 (which increases the maximum amount of the annual investment allowance to £1,000,000 for the period of two years beginning with 1 January 2019), for “two years” substitute“ three years ”.

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

Chapter 13 of Part 2 of CAA 2001 (plant and machinery allowances: provisions affecting mining and oil industries) is amended as follows.

Section 163 (meaning of “general decommissioning expenditure” for purposes of sections 164 and 165) is amended as follows.

In subsection (1), at the end of paragraph (a), omit “or” and insert—.

In subsection (2), for “that is” substitute “ paragraphs (a) and (b) of subsection (1) are ”.

In subsection (3A)—

After subsection (3A) insert—

After subsection (3AA) (inserted by subsection (6) of this section) insert—

In each of subsections (4ZA) and (4ZB), for “subsection (1)” substitute “ subsection (1)(a) or (b) ”.

After section 163 insert—

The amendments made by this section have effect in relation to expenditure incurred on or after 3 March 2021.

In Part 2 of CAA 2001, Chapter 6A (interpretation of provisions about long funding leases) has effect subject to the following modifications.

Section 70YB (long funding operating lease: extension of term of lease) has effect as if, in subsection (1), at the beginning there were inserted “Subject to section 70YCA (extension of term of lease for reasons related to coronavirus),”.

Section 70YC (extension of term of lease that is not a long funding lease) has effect as if, in subsection (1), at the beginning there were inserted “Subject to section 70YCA (extension of term of lease for reasons related to coronavirus),”.

That Chapter has effect as if after section 70YC there were inserted—

Schedule 3 makes provision about the amount of the tax credit to which a company may be entitled under Chapter 2 of Part 13 of CTA 2009 (relief for cost of research and development incurred by small and medium-sized enterprises).

Schedule 4 makes corresponding provision for Northern Ireland companies within the meaning of Part 8B of CTA 2010 (trading profits taxable at the Northern Ireland rate).

Chapter 10 of Part 2 of ITEPA 2003 (workers' services provided through intermediaries to public authorities or medium or large clients) is amended as follows.

In section 61N (worker treated as receiving earnings from employment)—

In section 61O (conditions where intermediary is a company)—

In section 61S(4) (deductions from chain payments), for “services-provider” substitute “ relevant person ”.

In section 61T(3) (client-led status disagreement process), for “section 61V” substitute “ sections 61V and 61WA ”.

In section 61U (information to be provided by worker and consequences of failure)—

In section 61V (consequences of providing fraudulent information)—

After section 61W insert—

In section 688AA(2)(a) (workers' services provided through intermediaries: recovery of PAYE), after “to a worker” insert “ (other than by virtue of section 61WA) ”.

The amendments made by this section have effect in relation to deemed direct payments treated as made on or after 6 April 2021.

Section 27 of ITEPA 2003 (UK-based earnings for year when employee not resident in UK) is amended in accordance with subsections (2) to (5).

In subsection (1)—

In subsection (2), for “(1)” substitute “ (1)(a) or (b) ”.

After subsection (2) insert—

In subsection (3), for “Subsection (2) applies” substitute “ Subsections (2) and (2A) apply ”.

In section 402B of ITEPA 2003 (termination payments, and other benefits, that cannot benefit from the section 403 threshold, to be treated as earnings), in subsection (1)—

In section 402D of ITEPA 2003 (post-employment notice pay)—

The amendments made by this section have effect in relation to general earnings to which section 402B of ITEPA 2003 applies that are paid—

Section 155 of ITEPA 2003 (cash equivalent of the benefit of a van) is amended in accordance with subsections (2) and (3).

In subsection (1B)—

In subsection (1C) omit paragraph (g).

In section 170 of ITEPA 2003 (orders etc relating to Chapter 6 of Part 3 of ITEPA 2003), in subsection (1A)—

If a cycle, or cyclist's safety equipment, was first provided for an employee before 21 December 2020, Condition B in section 244(3) of ITEPA 2003 (requirement that cycle or cyclist's safety equipment is used mainly for commuting etc) is treated as met in relation to the provision for that employee of that cycle or equipment for the period commencing with 16 March 2020 and ending with 5 April 2022.

In this section “cycle” and “cyclist” have the meanings they have in section 244 of ITEPA 2003 (see subsection (5) of that section).

No liability to income tax arises in respect of—

In this section “coronavirus test” means a test which detects the presence of a viral antigen or viral ribonucleic acid (RNA) specific to severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2).

This section has effect as if it were contained in Part 4 of ITEPA 2003 (employment income: exceptions).

This section has effect in relation to the tax years 2020-21 and 2021-22 (and to the extent the relief provided for by the Income Tax (Exemption of Minor Benefits) (Coronavirus) Regulations 2020 (S.I. 2020/1293) is provided for by this section, it supersedes those regulations).

The Treasury may by regulations provide that this section is also to have effect in relation to such subsequent tax years as may be specified in the regulations.

In Schedule 2 to FA 2017 (optional remuneration arrangements), in paragraph 62(9), for “or statutory shared parental pay” substitute “ , statutory shared parental pay or statutory parental bereavement pay ”.

That Schedule has effect, and is to be deemed always to have had effect, with the amendment made by subsection (1).

Schedule 6 contains provision amending Chapter 3 of Part 3 of FA 2004 (construction industry scheme).

In particular, the Schedule makes provision about—

This section applies to a payment which—

No liability to income tax arises in respect of a payment to which this section applies.

But subsection (2) does not prevent the application of paragraph 8 of Schedule 16 to FA 2020 (charge to income tax where person not entitled to coronavirus support payment) in relation to a payment to which this section applies.

In section 106 of FA 2020 (taxation of coronavirus support payments), in subsection (3)—

In paragraph 3(3) of Schedule 16 to FA 2020 (self-employment income support scheme payments to be treated as receipts of the tax year 2020-21), for “2020-21” substitute “ in which the payment was received ”.

In paragraph 8 of that Schedule (charge if person not entitled to coronavirus support payment)—

The amendments made by subsections (2) and (3) have effect in relation to coronavirus support payments received on or after 6 April 2021.

In this section “coronavirus support payment” has the meaning it has in Schedule 16 to FA 2020 (see section 106(2) and (5) of that Act).

This section applies if—

In calculating the profits of the business of A for those purposes—

No deduction is otherwise allowed for the amount paid in calculating the profits of the business of any person for those purposes (including where the amount was paid by a person other than A).

For the purposes of this section “coronavirus support arrangement” means an arrangement where—is waived, or reduced, for purposes connected with the provision of support to businesses in connection with coronavirus.

Regulations under subsection (4)(b) may have retrospective effect.

In this section “coronavirus” has the meaning it has in the Coronavirus Act 2020 (see section 1 of that Act).

This section has effect in relation to payments whether made before or after the passing of this Act.

The following provisions are repealed—and the remainder of this section makes amendments consequential on the repeal of those provisions.

In section 98 of TMA 1970 (special returns, etc)—

In paragraph 3 of Schedule 18 to FA 1998 (company tax return), in sub- paragraph (5) for “, 912, 914 and 915” substitute “ and 912 ”.

In ITTOIA 2005—

In section 100 of FA 2015 (diverted profits tax: credits for tax on the same profits)—

In section 42(9) of FA 2016 (section 758 of ITTOIA 2005 not to apply to certain royalty payments)—

In consequence of the repeal of section 762 of ITTOIA 2005 made by subsection (1), the Exemption From Tax For Certain Interest Payments Regulations 2004 (S.I. 2004/2622) are revoked (and, accordingly, exemption notices issued in accordance with those regulations are cancelled).

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

A payment is made in “disqualifying circumstances” if it is made directly or indirectly in consequence of, or otherwise in connection with, any arrangements the main purpose, or one of the main purposes, of which is to secure that the provisions mentioned in subsection (1)(a) or (b) continue to have effect in relation to it.

For this purpose “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).

A payment that meets conditions A to C is to be regarded as a “qualifying payment” for the purposes of paragraph 3(1) and (2) of Schedule 15 to FA 2020 (exemption from income tax).

Condition A is that the payment is made by or on behalf of a public authority.

Condition B is that the payment is made to a person in respect of whom—

Condition C is that the payment is made for the purposes of providing the person assistance or support of the kind mentioned in Article 12 of the Trafficking Convention (as contemplated by Article 10).

In this section—

This section has effect in relation to qualifying payments received on or after 1 April 2009.

Part 10 of TIOPA 2010 (corporate interest restriction) is amended as follows.

In section 452 (Real Estate Investment Trusts), after subsection (2) insert—

The amendment made by subsection (2) is treated as having come into force on 21 July 2020.

In Schedule 7A (interest restriction returns), after paragraph 29 insert—

That Schedule has effect, and is to be deemed always to have had effect, with the amendment made by subsection (4).

In CTA 2010, after section 987B insert—

The amendment made by this section has effect in relation to accounting periods beginning on or after 1 April 2020.

In section 167 of TCGA 1992 (gifts to foreign-controlled companies), in subsection (2)(b), at the beginning insert “ is or ”.

The amendment made by subsection (1) has effect in relation to a disposal made on or after 6 April 2021.

A tax called “plastic packaging tax” is to be charged in accordance with this Part.

The Commissioners are responsible for the collection and management of plastic packaging tax.

The charge to plastic packaging tax arises when a chargeable plastic packaging component is—

The reference in subsection (1) to “a business” includes any activity of a government department or other public authority, or of a charity, that is carried out for commercial purposes.

A person who is neither registered nor liable to be registered (see sections 55 to 57) is to be treated, for the purposes of subsection (1) of this section, as not acting in the course of a business.

Subsection (1) is subject to section 52 (exempt plastic packaging components).

Where the charge to plastic packaging tax arises in respect of a chargeable plastic packaging component by virtue of section 43(1)(a), the person who produces the component is liable to pay the amount charged.

Where the charge arises in respect of a chargeable plastic packaging component by virtue of section 43(1)(b), the person on whose behalf the component is imported is liable to pay the amount charged.

Plastic packaging tax is charged at the rate of £228.82 per metric tonne of chargeable plastic packaging components of a single specification.

The amount charged on part of a tonne is the proportionately reduced amount.

Plastic packaging tax is to be paid by reference to accounting periods determined in accordance with regulations under section 61(1) (regulations about the payment, collection and recovery of plastic packaging tax).

References in this Part to “accounting periods” are to those accounting periods.

A plastic packaging component is chargeable if—

A plastic packaging component is taken to fall within subsection (1)(a) unless it is shown that it does not.

For the purposes of this Part, a component is “finished” if it has undergone—even if waste or surplus material remains attached to it.

Accordingly, for the purposes of this Part, waste or surplus material that remains attached to a component after its last substantial modification is not to be treated as part of the component.

The Commissioners may by regulations make provision about—

A “packaging component” is a product that is designed to be suitable for use, whether alone or in combination with other products, in the containment, protection, handling, delivery or presentation of goods at any stage in the supply chain of the goods from the producer of the goods to the user or consumer.

Subject to section 52, it does not matter why a component within this definition is produced or imported (for example, whether it is produced or imported for use in the supply chain of the goods or by a user or consumer).

A “plastic packaging component” is a packaging component that contains more plastic, when measured by weight, than any other single substance listed in regulations under subsection (7)(a).

A packaging component that contains plastic is taken to be a plastic packaging component unless it is shown that it is not such a component.

The Treasury may by regulations amend the meaning of “packaging component” by—

Regulations under subsection (5) may amend this Part.

The Commissioners may by regulations—

“Plastic” means a material consisting of a polymer, other than a cellulose-based polymer that has not been chemically modified, to which additives or other substances may have been added.

“Recycled plastic” is plastic that has been reprocessed from recovered material by means of a chemical or manufacturing process, other than organic recycling, so that it can be used either for its original purpose or for other purposes.

“Attributed recycled plastic” is plastic to which recovered material has been attributed in accordance with a chemical recycling certification scheme.

“Organic recycling” means the aerobic or anaerobic treatment, under controlled conditions and using micro-organisms, of biodegradable matter, which produces stabilised organic residues or methane.

“Recovered material” is pre-consumer plastic or post-consumer plastic that—

“Pre-consumer plastic” is plastic that is—but does not include plastic that is reused in the same process in which it was generated as scrap and from which it was recovered.

“Post-consumer plastic” is plastic—This includes returns of plastic from the distribution chain.

Plastic is not to be taken as recycled plastic unless it is shown that it is recycled plastic.

Plastic is not to be taken as attributed recycled plastic unless it is shown that it is attributed recycled plastic.

The Treasury may by regulations amend the meaning of “plastic” and “recycled plastic” , “recycled plastic” and “attributed recycled plastic”.

Regulations under subsection (8) may amend this Part.

The Commissioners may by regulations make provision about the methodology to be used, or the information or evidence required, to satisfy them that plastic is recycled plastic or attributed recycled plastic.

For the purposes of this Part, a scheme is a “chemical recycling certification scheme” if—

A “mass balance process” is a process under which—

The certified person may attribute recovered material under subsection (2)(c) in any way, provided that—

In subsections (2) and (3) “qualifying input material” means—

In this section—“certified person” means a person certified under a chemical recycling certification scheme;“consumed fuel” means fuel added to the mixture that is consumed to provide energy for the processing of the mixture;“process losses” means material, other than consumed fuel, added to the mixture which is converted to waste products as part of the processing (and which is not withdrawn from the mixture);“waste material” means any consumed fuel and process losses;“withdrawn fuel” means material withdrawn from the mixture after processing that—is fuel, or might reasonably be expected to be reprocessed (otherwise than as part of a mass balance process) into fuel.

The Commissioners may by regulations—

A chargeable plastic packaging component is imported into the United Kingdom—

Subsection (1) is subject to section 76 (Isle of Man: import and export of chargeable plastic packaging components).

The Commissioners may by regulations make provision about when a chargeable plastic packaging component is imported into the United Kingdom for the purposes of plastic packaging tax.

Regulations under subsection (3) may amend this Part.

A person's liability under section 44 to pay an amount by way of plastic packaging tax in relation to a plastic packaging component is—

The direct export condition is met in relation to a component at any time if—

If the Commissioners are not satisfied of any matter within subsection (2) in relation to a component they may—

The consequence of notification is that liability to pay an amount by way of plastic packaging tax—

The deferral period in relation to a component is the period of 12 months beginning with the day on which the component is produced or imported.

This section does not apply to plastic packaging components that are used in the removal of goods from the United Kingdom and that are—

This section is subject to section 76 (Isle of Man: import and export of chargeable plastic packaging components).

No charge to plastic packaging tax arises by virtue of section 43(1)(b) in relation to plastic packaging components that are used in the delivery of goods into the United Kingdom and that are—

No charge to plastic packaging tax arises in relation to plastic packaging components if subsection (3), (4) or (6) applies to them.

This subsection applies to plastic packaging components if they are stores within the meaning of CEMA 1979 (see section 1 of that Act).

This subsection applies to plastic packaging components if they are produced or imported for use in the immediate packaging of a medicinal product.

In subsection (4)—“immediate packaging”, in relation to a medicinal product, has the meaning given by regulation 8(1) of the Human Medicines Regulations 2012 (S.I. 2012/1916);“medicinal product” has the meaning given by regulation 2(1) of those Regulations.

This subsection applies to plastic packaging components if—

The Treasury may by regulations make provision creating further exemptions from plastic packaging tax.

The Commissioners may by regulations make provision in relation to cases where after a person has become liable to pay plastic packaging tax in respect of a prescribed plastic packaging component (the “charged component”), that component is—

The provision that may be made is provision—

Regulations under this section may (among other things) make provision—

In this section, “prescribed” means specified in or under, or determined in accordance with provision made in or under, regulations under this section.

The Commissioners must establish and maintain a register for the purposes of collecting and managing plastic packaging tax.

The register may contain such information as the Commissioners think is required for those purposes.

The Commissioners may publish, by such means as they think fit, any information which—apart from information relating to a registration which is subject to an outstanding appeal.

The descriptions are—

Subject to subsection (6), information may be published in accordance with this section despite any obligation not to disclose the information that would otherwise apply.

Nothing in this section authorises a disclosure of information which contravenes the data protection legislation (but in determining whether a disclosure would do so, take into account the powers conferred by this section).

In this Part—“data protection legislation” has the meaning given by section 3(9) of the Data Protection Act 2018;“the register” means the register under subsection (1) and references to registration are to registration in it.

A person (P) who—becomes liable to be registered on a given day if subsection (2) applies in relation to P on that day (subject to subsection (5)).

This subsection applies—

Finished plastic packaging components to which section 52(1) or (3) applies are not to be taken into account for the purposes of subsection (2).

In the application of subsection (2)(b) to the first day of a month falling within the year beginning with 1 April 2022, that paragraph has effect as if for “over the 12 months” there were substituted “ during the period beginning with 1 April 2022 and ”.

Subsection (1) does not apply to any person for the time being listed in section 13B(1) of the Customs and Excise Duties (General Reliefs) Act 1979 (members of visiting forces etc).

The Commissioners may by regulations make provision about the administration of the disapplication of subsection (1) by subsection(5), including provision making it subject to conditions or requirements set out in the regulations.

A person who becomes liable to be registered under section 55 must notify the Commissioners of the liability before the end of the notification period.

The “notification period” is the period of 30 days beginning with the day on which the liability arises.

Where the Commissioners are satisfied that a person is liable to be registered (whether or not the person has notified liability under subsection (1)), the Commissioners must register the person with effect from the day on which the liability arises.

Where an unincorporated body (other than a partnership) is registered in the name of the body concerned, no account is to be taken of any change in its members in determining how any provision of or under this Part applies in relation to the body.

The Commissioners may by regulations make provision—

A registration under section 56 may be cancelled only in accordance with this section.

The Commissioners may cancel a person's registration if—

The Commissioners may cancel a person's registration if they are satisfied that the person does not meet the liability condition and has not met the liability condition for a period of at least 12 months.

The Commissioners may cancel a person's registration if they are satisfied that the person did not meet the liability condition on the day on which the person was registered, and has not at any subsequent time met the liability condition.

A cancellation under subsection (2) is to be made with effect from—

A cancellation under subsection (3) is to be made with effect from—

A cancellation under subsection (4) is to be made with effect from the day on which the person was registered.

But the Commissioners must not cancel a person's registration under subsection (2) or (3) if—

The Commissioners may decline to cancel a person's registration on any day if they reasonably believe that the person will become liable to be registered under section 55 during the period of 12 months beginning with that day.

For the purposes of this section, a person meets the liability condition on a particular day if—

The Commissioners may by regulations make provision about the correction of entries in the register.

Regulations under subsection (1) may make provision for requiring persons who are, or are liable to be, registered to notify the Commissioners of changes in circumstances which are relevant to the register.

The Commissioners may by regulations make provision for and about the measurement of weight for the purposes of plastic packaging tax.

The regulations may (among other things) include provision about—

The Commissioners may by regulations make provision about the payment, collection and recovery of amounts for the purposes of plastic packaging tax.

Regulations under subsection (1) may (among other things)—

Provision may be made by or under regulations under subsection (2)(c) about—

Schedule 10 makes provision about recovery and overpayments.

The Commissioners may by regulations require persons—

A duty under regulations under subsection (1) to preserve records may be discharged by preserving them, or the information contained in them, in any form and by any means, subject to any conditions or exceptions specified in the regulations.

The period specified in regulations under subsection (1) may not exceed —

The Commissioners may direct a person who is, or is liable to be, registered under this Part or to whom a secondary liability and assessment notice or a joint and several liability notice has been given—

The Commissioners may not give a direction under subsection (4) unless they have reasonable grounds for believing that the records specified in the direction might assist in identifying chargeable plastic packaging components in respect of which plastic packaging tax might not be paid.

A direction under subsection (4)—

The period specified in a direction under subsection (4)(b) may not exceed 6 years.

The Commissioners may by regulations prescribe circumstances in which a person who is liable to be registered under section 55 may be required to give security (or further security) of such amount and in such manner as the Commissioners may determine for the payment of any plastic packaging tax due, or which may become due, from the person.

The Commissioners may only exercise the power in subsection (1) if they consider it is necessary for the protection of the revenue.

Anything required to be given to a person (“P”) by or under a provision of this Part may be given by sending it to P or to P's representative by post, addressed to that person's last known address.

Anything given to P's representative is to be treated as having been given to P.

In this section, “representative”, in relation to P, means—

A person who—must, when invoicing that customer in respect of that component, include with that invoice a statement of the amount of plastic packaging tax arising in relation to that component (a “PPT statement”).

The reference in subsection (1)(a) to supplying a plastic packaging component to a business customer includes supplying that component by virtue of supplying other goods, such as goods that are contained within the component.

A PPT statement must contain such particulars as the Commissioners may prescribe in regulations.

In this section, “business customer” means a person who is supplied with a plastic packaging component in the course of their carrying out a business (within the meaning of section 43(2)).

The Commissioners may by regulations make provision requiring that every non-resident taxpayer appoint a person resident in the United Kingdom to act as the taxpayer's tax representative for the purposes of plastic packaging tax.

Regulations under subsection (1) may, in particular, make provision—

The tax representative of a non-resident taxpayer—

A person who is or has been the tax representative of a non-resident taxpayer is personally liable—as if the obligations and liabilities to which subsection (3)(b) applies were imposed jointly and severally on the tax representative and the non-resident taxpayer.

A tax representative is not liable by virtue of this section to be registered for the purposes of plastic packaging tax; but the Commissioners may by regulations—

A tax representative is not, by virtue of this section, guilty of an offence except in so far as—

In this section “non-resident taxpayer” means a person who—

For the purposes of subsection (7), a person is resident in the United Kingdom at any time if, at that time—

Subsection (2) applies where—

Unless the contract otherwise provides, S may adjust the amount of the payment mentioned in subsection (1)(b) so as to reflect the tax chargeable on the component.

Subsection (4) applies where a person (S) supplies another person (P) with a chargeable plastic packaging component under a contract.

Unless the contract provides otherwise, S may adjust the contract so that if P subsequently converts the component into a different chargeable plastic packaging component, P must provide S with information about the conversion.

For the purposes of subsections (1) and (3), it is immaterial—

Subsection (2) applies where a body corporate (P) is liable to pay an amount of plastic packaging tax (or an amount recoverable on the basis that it is an amount of plastic packaging tax)—at the time P is treated as a member of a group.

For the purposes of this Part , and save as otherwise provided by or under this Part,, the representative member of the group is to be treated as if —

All the bodies corporate who are treated as members of a group when any amount becomes due from the representative member, together with any bodies corporate who become treated as members of the group while any such amount remains unpaid, are jointly and severally liable for the amount due from the representative member.

The Commissioners may by regulations make such further provision as they consider appropriate about—

For the purposes of this Part—

Schedule 13 makes provision about applications by two or more bodies corporate to be treated as members of the same group for the purposes of this Part.

This section, and section 73, apply for the purpose of preventing the maintenance or creation of any artificial separation of business activities carried on by two or more persons from resulting in an avoidance of plastic packaging tax.

The Commissioners may make a direction under this section naming any person only if they are satisfied that—

Subsection (4) applies where, after making a direction under this section that specifies a description of business, it appears to the Commissioners that a person (P) who was not named in that direction is producing or importing, or has produced or imported, chargeable plastic packaging components in the course of activities which should be regarded as part of the activities of that business.

The Commissioners may make a supplementary direction referring to the earlier direction and the description of business specified in it and adding P's name to those of the persons named in the earlier direction with effect from—

If, immediately before a direction (including a supplementary direction) is made under this section, any person named in the direction is registered under this Part, the person ceases to be liable to be so registered with effect from the later of—

A direction under this section must be given to each person named in it.

For the purposes of this Part, where a direction is made under section 72—

Subsection (3) applies where—

P is not liable by virtue of subsection (1)(e) and (f) for anything done after the date specified in that notice (and accordingly on that date P is to be treated as having ceased to be a member of the partnership referred to in subsection (1)(g)).

In subsections (1) and (2), the “constituent members” means, in relation to a business specified in a direction under section 72, the persons named in the direction, together with any person named in a supplementary direction relating to that business (together being the persons who are to be treated as the taxable person).

The Commissioners may by regulations make provision for the purposes of plastic packaging tax in relation to cases where a person carries on the business of—

Provision may be made by regulations under this section—

The Commissioners may by regulations make provision for the purposes of plastic packaging tax in relation to cases where any business carried on by a person (P) is transferred to another person (T) as a going concern.

Regulations under this section may (among other things) make—

Regulations under this section may provide that no such provision as is mentioned in subsection (2)(b) or (c) has effect in relation to any transferor or transferee unless an application for the purpose has been made by them under the regulations.

Subsections (2) and (3) apply if—

If the corresponding charge has arisen at a rate equal to, or greater than, the United Kingdom rate, the component is to be treated as not being imported into the United Kingdom for the purposes of plastic packaging tax.

If the corresponding charge has arisen at a rate lower than the United Kingdom rate, the amount of plastic packaging tax charged under this Part in relation to the component is to be reduced by an amount equal to the corresponding charge.

“The United Kingdom rate” in relation to a chargeable plastic packaging component is the rate of plastic packaging tax that would (apart from this section) be chargeable in relation to the component under this Part.

For the purposes of provision made by or under sections 51 and 53, a chargeable plastic packaging component is to be treated as not being exported from the United Kingdom if it is exported from the United Kingdom to the Isle of Man.

For the purposes of determining, in accordance with section 50, when a chargeable plastic packaging component is imported into the United Kingdom from the Isle of Man, section 8 of the Isle of Man Act 1979 (removal of goods from the Isle of Man) is to have effect as if, in subsection (2), at the end of paragraph (c), there were inserted

A person commits an offence if the person is knowingly concerned in, or in the taking of steps with a view to, the fraudulent evasion (by that person or another person) of plastic packaging tax.

The reference in subsection (1) to the evasion of plastic packaging tax includes reference to obtaining, in circumstances where there is no entitlement to it—

A person guilty of an offence under this section is liable—

For the purposes of subsection (3), the amounts of plastic packing tax that were, or were intended to be, evaded are to be taken as including—which was, or was intended to be, obtained in circumstances when there was no entitlement to it.

In determining for the purposes of subsection (3) the amounts of plastic packaging tax that were, or were intended to be, evaded, no account is to be taken of the extent to which any liability to tax of a person would be, or would have been, reduced by the amount of any tax credit or repayment of plastic packaging tax to which the person was, or would have been, entitled.

In relation to an offence committed before 2 May 2022, the reference in subsection (3)(a)(i) to the general limit in a magistrates’ court is to be read as a reference to 6 months.

A person commits an offence if, for purposes connected with plastic packaging tax, the person—

A person commits an offence if, in providing any information under any provision made by or under this Part the person—

A person guilty of an offence under this section is liable (subject to subsection (4))—

In the case of an offence under this section where—the maximum amount of the fine on summary conviction is the greater of £20,000 or the statutory maximum (as the case may be), and the amount equal to three times the sum of the amounts (if any) by which the return underestimates any person's liability to plastic packaging tax.

In subsection (4) the reference to the amount by which a person's liability to plastic packaging tax is understated is the sum of—

In subsection (5) “gross liability” means liability to plastic packaging tax before any deduction is made in respect of—

A person commits an offence if the person's conduct during any particular period must have involved the person committing one or more offences under section 77 or 78.

For the purposes of any proceedings for an offence under this section it is immaterial whether the particulars of the offence or offences that must have been committed are known.

A person guilty of an offence under this section is liable (subject to subsection (4))—

In the case of any offence under this section, the maximum amount of the fine on summary conviction is the greater of £20,000 or the statutory maximum (as the case may be), and the amount equal to three times the sum of the amounts of plastic packaging tax which are shown to be amounts that were or were intended to be evaded by the conduct in question.

For the purposes of subsection (4), the amounts of plastic packaging tax that were, or were intended to be, evaded are to be taken as including—which was, or was intended to be, obtained in circumstances when there was no entitlement to it.

In determining for the purposes of subsection (4) the amounts of plastic packaging tax that were, or were intended to be, evaded, no account is to be taken of the extent to which any liability to tax of a person would be, or would have been, reduced by the amount of any tax credit or repayment of plastic packaging tax to which the person was, or would have been, entitled.

Where a person (P) fails to comply with a relevant requirement, P is liable to—

Where P is liable to a daily penalty in respect of a continuing failure to comply with a relevant requirement P is not liable to a further fixed penalty in respect of that failure.

P is not liable to a penalty under this section in respect of an act or omission in respect of which P—

P is not liable to a penalty under this section if P satisfies the Commissioners or (on appeal) the appeal tribunal within the meaning of Schedule 11 that there is a reasonable excuse for the failure.

For the purposes of subsection (4)—

Where P is liable to a penalty under this section—

In this section, “relevant requirement” means an obligation or a requirement imposed by or under—

The Treasury may by regulations amend subsection (1) so as to substitute for the amounts for the time being specified there amounts taking account of inflation.

The Treasury may by regulations amend subsection (7) so as to add or remove a requirement relating to plastic packaging tax as a “relevant requirement”.

Schedule 14 makes provision about the assessment of penalties under this section.

Regulations under this Part—

Regulations under this Part may make provision by reference to things specified in a notice that is—

Any power of the Commissioners to make regulations under this Part may instead be exercised by the Treasury.

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

A statutory instrument containing regulations under the following provisions is subject to the made affirmative procedure—

Any other statutory instrument containing regulations under this Part is subject to annulment in pursuance of a resolution of the House of Commons (“the negative procedure”).

But subsection (6) does not apply to a statutory instrument containing only regulations under section 85 (commencement of this Part).

Where a statutory instrument under this Act is subject to “the made affirmative procedure”—

Where regulations cease to have effect as a result of subsection (8), that does not—

Any provision that may be included in regulations in a statutory instrument under this Act subject to the negative procedure may be included in regulations in a statutory instrument subject to the made affirmative procedure.

In this section, “sitting day” means a day on which the House of Commons is sitting (and a day is only a day on which the House of Commons is sitting if the House begins to sit on that day).

This Part—

Regulations under this section may appoint different days for different purposes.

The Stamp Duty Land Tax (Temporary Relief) Act 2020 is amended as follows.

In section 1 (reduced rates of SDLT on residential property for a temporary period)—

After that section insert—

In Schedule 4A to FA 2003 (higher rate of SDLT for certain transactions), after paragraph 5F insert—

In that Schedule, after paragraph 5K insert—

Schedule 17 contains minor and consequential amendments of Part 4 of FA 2003 (stamp duty land tax).

The amendments made by this section and Schedule 17 have effect in relation to any land transaction of which the effective date is 3 March 2021 or a later date.

In section 150 of FA 2013 (providers of social housing)—

After that section insert—

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

Case A is that the first day in the chargeable period on which the person is within the charge with respect to the single-dwelling interest is on or after 3 March 2021.

Case B is that the person was within the charge with respect to the single-dwelling interest on one or more days in the chargeable period before 3 March 2021 but has not delivered an annual tax on enveloped dwellings return for the period with respect to the interest by 3 March 2021.

For the purposes of subsections (3) to (5), “single-dwelling interest”, “within the charge” and “annual tax on enveloped dwellings return” have the same meanings that they have for the purposes of Part 3 of FA 2013.

A claim for repayment of annual tax on enveloped dwellings paid, before 3 March 2021, by or on behalf of a chargeable person with respect to a single-dwelling interest may be made by the person for each day (if any) in the chargeable period beginning with 1 April 2020 on which—

For the purposes of a claim under this section with respect to a single-dwelling interest—

Where a claim is made under this section with respect to a single-dwelling interest, HMRC must repay the total of the daily amounts for all the relievable days.

A claim under this section must be made by amending the relevant return under paragraph 3 of Schedule 33 to FA 2013 on the same basis as it would have been amended if, on each of the relievable days, the chargeable person had been entitled to claim the type of relief numbered 8 in the table in section 159A(9) of FA 2013.

Terms used in this section and in Part 3 of FA 2013 have the same meaning in this section as in that Part.

The modifications made by Articles 3 and 4 of the Value Added Tax (Reduced Rate) (Hospitality and Tourism) (Coronavirus) Order 2020 (S.I. 2020/728) (“the Reduced Rate Order”) continue to have effect (despite Article 2 of that Order) during the relevant period.

During that period, in relation to a supply that is of a description within Groups 14 to 16 in Part 2 of Schedule 7A to VATA 1994, the reference in section 29A(1) of that Act to “5 per cent” is to be read as a reference to “12.5 per cent” (and any reference elsewhere in that Act to a rate of 5% in the context of a supply of a description specified in Schedule 7A is to be read accordingly).

The modifications made by Article 6 of the Reduced Rate Order also continue to have effect (despite Article 5 of that Order) during the relevant period, but subject to the modifications in subsection (4).

The modifications to Article 6 of the Reduced Rate Order mentioned in subsection (3) are—

The relevant period means the period—

The Treasury may by regulations—

A statutory instrument containing regulations under subsection (6) that would increase the rate of value added tax to be charged on a supply must be laid before the House of Commons after being made and, unless approved by that House before the end of the period of 28 days beginning with the date on which the instrument is made, ceases to have effect at the end of that period.

Any other statutory instrument containing regulations under subsection (6) is subject to annulment in pursuance of a resolution of the House of Commons.

The fact that a statutory instrument ceases to have effect as a result of subsection (7) does not affect—

In calculating the period of 28 days mentioned in subsection (7), no account is to be taken of any time—

In Schedule 18, which makes provision in relation to the Protocol on Ireland/Northern Ireland in the EU withdrawal agreement about value added tax and distance selling—

The Treasury may by regulations made by statutory instrument make such provision as they consider appropriate in consequence of this section or Schedule 18, including provision amending, repealing or revoking any provision of an Act whenever passed or made (including this Act and any Act amended by it).

The Treasury may by regulations made by statutory instrument make such transitional, transitory, saving, supplementary or incidental provision as they consider appropriate in connection with the coming into force of this section or Schedule 18.

Regulations under subsections (2) and (3) may (among other things)—

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

This subsection and the following provisions come into force on the day on which this Act is passed—

Subsection (1) and Schedule 18 come into force for all remaining purposes on such day as the Treasury may by regulations made by statutory instrument appoint.

Regulations under subsection (7) may appoint different days for different purposes.

The Treasury may by regulations made by statutory instrument make such provision relating to value added tax as they consider appropriate in relation to the Protocol on Ireland/Northern Ireland in the EU withdrawal agreement—

No regulations may be made under this section on or after 1 April 2024.

Regulations under this section—

A statutory instrument containing (whether alone or with other provision) regulations under this section that amend or repeal any Act of Parliament must be laid before the House of Commons after being made.

Regulations contained in a statutory instrument laid before the House of Commons under subsection (4) cease to have effect at the end of the period of 28 days beginning with the day on which the instrument is made unless, during that period, the instrument is approved by a resolution of the House of Commons.

In calculating the period of 28 days, no account is to be taken of any whole days that fall within a period during which—

If regulations cease to have effect as a result of subsection (5), that does not—

A statutory instrument containing (whether alone or with other provision) regulations under this section to which subsection (4) does not apply is subject to annulment in pursuance of a resolution of the House of Commons.

This section comes into force on the day on which this Act is passed.

In Schedule 6 to VATA 1994 (valuation: special cases), after paragraph 11 insert—

The amendment made by subsection (1) has effect in relation to supplies made on or after IP completion day.

In section 42 of TCTA 2018 (EU law relating to VAT), after subsection (4) insert—

That section has effect, and is to be deemed always to have had effect, with the amendment made by subsection (1).

Schedule 19 makes provision about—

Subsection (1) and Schedule 19 are to be treated as having come into force on 9 March 2021.

The Treasury may by regulations repeal paragraphs 4 to 11 of Schedule 19 (penalty) where they consider it appropriate to do so by reason of circumstances arising as a result of the emergency specified in article 2 of the Coronavirus Order 2020.

Regulations made under subsection (3)—

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

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

In section 33(3) of the Value Added Tax Act 1994 (refunds of VAT in certain cases), after paragraph (i) insert—.

The amendment made by this section has effect in relation to supplies made, and acquisitions and importations taking place, on or after 1 April 2021.

Schedule 21 makes—

Schedule 21 comes into force on 1 April 2022.

The Treasury may by regulations make such consequential, supplementary, incidental, transitional, transitory or saving provision as the Treasury consider appropriate in connection with the coming into force of Schedule 21.

Regulations under subsection (3) may—

Regulations under subsection (3) are to be made by statutory instrument.

A statutory instrument containing regulations under subsection (3) is subject to annulment in pursuance of a resolution of the House of Commons.

In Schedule 11 to FA 2020 (amendments of HODA 1979 relating to private pleasure craft), in paragraph 21 (power to make consequential amendments), after “enactment” insert “ , including Schedule 21 to FA 2021, ”.

In Schedule 1 to TDPA 1979 (table of rates of tobacco products duty), for the Table substitute—

In consequence of the provision made by subsection (1), the Tobacco Products Duty (Alteration of Rates) Order 2020 (S.I. 2020/1256) is revoked.

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

In paragraph 1 (general rate)—

In paragraph 1B (graduated rates for light passenger vehicles registered before 1 April 2017), for the Table substitute—.

In the sentence immediately following the Table in that paragraph, for paragraphs (a) and (b) substitute—

In paragraph 1GC (graduated rates for first licence for light passenger vehicles registered on or after 1 April 2017), for Table 1 (vehicles other than higher rate diesel vehicles) substitute—

In that paragraph, for Table 2 (higher rate diesel vehicles) substitute—.

In paragraph 1GD(1) (rates for any other licence for light passenger vehicles registered on or after 1 April 2017)—

In paragraph 1GE(2) (rates for light passenger vehicles registered on or after 1 April 2017 with a price exceeding £40,000)—

In paragraph 1J(a) (rates for light goods vehicles that are not pre-2007 or post-2008 lower emission vans), for “£265” substitute “ £275 ”.

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 2021.

Section 19 of VERA 1994 (rebates of vehicle excise duty) is amended as follows.

In subsection (3A) for “subsection (3B)” substitute “ subsections (3B) and (3C) ”.

After subsection (3B) insert—

The amendments made by this section have effect in relation to cases where a rebate condition (within the meaning of section 19 of VERA 1994) is satisfied on or after 1 April 2021.

In section 30(4A) of FA 1994 (air passenger duty: long haul rates)—

The amendments made by this section have effect in relation to the carriage of passengers beginning on or after 1 April 2022.

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

The amendment made by this section has effect in relation to accounting periods beginning on or after 1 April 2021.

Paragraph 42 of Schedule 6 to FA 2000 (climate change levy: amount payable by way of levy) is amended as follows.

In sub-paragraph (1), for the table substitute—.

In sub-paragraph (1)(c) (reduced-rate supplies in respect of any taxable commodity other than electricity or petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state), for “17” substitute “ 14 ”.

In consequence of the amendment made by subsection (3), in the definition of “r” in the Notes to paragraph 2 of Schedule 1 to the Climate Change Levy (General) Regulations 2001, for “0.83” substitute “ 0.86 ”.

The amendments made by this section have effect in relation to supplies treated as taking place on or after 1 April 2022 but before 1 April 2023.

Paragraph 42 of Schedule 6 to FA 2000 (climate change levy: amount payable by way of levy) is amended as follows.

In sub-paragraph (1), for the table substitute—.

In sub-paragraph (1)(c) (reduced-rate supplies in respect of any taxable commodity other than electricity or petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state), as amended by section 109(3), for “14” substitute “ 12 ”.

In consequence of the amendment made by subsection (3), in the definition of “r” in the Notes to paragraph 2 of Schedule 1 to the Climate Change Levy (General) Regulations 2001, as amended by section 109(4), for “0.86” substitute “ 0.88 ”.

The amendments made by this section have effect in relation to supplies treated as taking place on or after 1 April 2023.

Section 42 of FA 1996 (amount of landfill tax) is amended as follows.

In subsection (1)(a) (standard rate), for “£94.15” substitute “ £96.70 ”.

In subsection (2) (reduced rate for certain disposals), in the words after paragraph (b)—

The amendments made by this section have effect in relation to disposals made (or treated as made) on or after 1 April 2021.

In FA 2019, omit Part 3 (carbon emissions tax).

In FA 2020, omit section 95 and Schedule 12 (carbon emissions tax).

The Treasury may by regulations designate an area in Great Britain as a special area for the purposes of—

An area may only be designated by regulations under this section if, at the time the regulations are made—

An area designated under this section is to be known as a “special tax site”.

Regulations under this section must specify the date on which the designation takes effect.

For the purposes of this section any reference to a freeport or an investment zone is to an area which is identified as such in a document published by, or with the consent of, the Treasury for the purposes of this section (and not withdrawn).

Any regulations made by the Treasury in reliance on a resolution under section 1 of the Provisional Collection of Taxes Act 1968 and in force immediately before the passing of this Act which make a designation described in subsections (1) and (2) have effect as if validly made under this section.

Schedule 22 makes provision about capital allowances for expenditure incurred in connection with freeport tax sites.

In that Schedule —

Schedule 24 contains provision for imposing penalties on persons in respect of failures to make certain returns.

Schedule 25 contains provision for imposing penalties on persons who, by failing to make certain returns, deliberately withhold information which would enable or assist HMRC to assess that person's liability to tax.

Schedules 24 and 25 come into force on such day as the Treasury may by regulations appoint.

Different days may be appointed for different purposes.

The Treasury may by regulations make transitional, transitory or saving provision in connection with the coming into force of any provision in Schedules 24 and 25.

The power to make regulations under subsection (5) includes power to make different provision for different purposes.

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

Schedule 26 contains provision for imposing penalties on persons in respect of failures to make certain payments on time.

Schedule 26 comes into force on such day as the Treasury may by regulations appoint.

Different days may be appointed for different purposes.

The Treasury may by regulations make transitional, transitory or saving provision in connection with the coming into force of any provision in Schedule 26.

The power to make regulations under subsection (4) includes power to make different provision for different purposes.

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

Schedule 27 contains amendments that are consequential on Schedules 24 to 26.

Schedule 27 comes into force on such day as the Treasury may by regulations appoint.

Different days may be appointed for different purposes.

The Treasury may by regulations make transitional, transitory or saving provision in connection with the coming into force of any provision in Schedule 27.

The Treasury may by regulations make provision that is consequential on Schedules 24 to 26.

Regulations under subsection (5) may—

In subsection (6) “subordinate legislation” has the same meaning as in the Interpretation Act 1978.

The power to make regulations under subsection (4) or (5) includes power to make different provision for different purposes.

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

A statutory instrument containing (whether alone or with other provision) regulations under subsection (5) that amend or repeal provision made by an Act is subject to annulment in pursuance of a resolution of the House of Commons.

Schedule 29 contains amendments of FA 2009 relating to late payment interest, repayment interest and VAT.

Schedule 29 comes into force on such day as the Treasury may by regulations appoint.

Different days may be appointed for different purposes.

The Treasury may by regulations make transitional, transitory or saving provision in connection with the coming into force of any provision in Schedule 29.

The Treasury may by regulations make provision that is consequential on Schedule 29.

Regulations under subsection (5) may—

In subsection (6) “subordinate legislation” has the same meaning as in the Interpretation Act 1978.

The power to make regulations under subsection (4) or (5) includes power to make different provision for different purposes.

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

A statutory instrument containing (whether alone or with other provision) regulations under subsection (5) that amend or repeal provision made by an Act is subject to annulment in pursuance of a resolution of the House of Commons.

Part 5 of FA 2014 (promoters of tax avoidance schemes) is amended in accordance with Schedule 30.

Part 1 of that Schedule contains—

Part 2 of that Schedule contains amendments in connection with providing for persons (whether or not they carry on a business) to be treated as carrying on business as a promoter as a result of their connection to other persons.

Part 3 of that Schedule contains amendments about powers to give a person a conduct notice or monitoring notice as a result of the transfer of a business, a part of a business, or property of a business to that person.

Part 4 of that Schedule contains miscellaneous amendments of Part 5 of FA 2014.

The amendments made by that Schedule, other than the amendments made by paragraphs 20, 21 and 27 of that Schedule, have effect—

Schedule 16 to F(No.2)A 2017 (penalties for enablers of defeated tax avoidance) is amended as follows.

In paragraph 21 (special provision about assessment for multi-user schemes)—

In paragraph 22 (time limit for assessment)—

In paragraph 40 (information and inspection powers: application of Schedule 36 to FA 2008)—

In paragraph 41 (general modifications of Schedule 36 to FA 2008 as applied)—

In paragraph 42 (specific modifications of Schedule 36 to FA 2008 as applied)—

In paragraph 43 (exclusion of paragraphs 50 and 51 of Schedule 36 to FA 2008), for “the purpose” substitute “ a purpose ”.

In paragraph 48 (restrictions on power to publish information about persons who have incurred a penalty)—

The amendments made by subsections (2) and (3) do not have effect in relation to a person who is liable to a penalty under paragraph 1 of Schedule 16 to F(No.2)A 2017 solely by reason of actions of the person carried out before the day on which this Act is passed.

Where the amendments made by subsections (2) and (3) have effect, in determining whether condition 1 or 2 is met in relation to particular tax arrangements, account may be taken of defeats incurred in the case of other related arrangements before the day on which this Act is passed.

For the purposes of subsection (10), “condition 1”, “condition 2”, “defeat” and “related arrangements” have the same meanings as in paragraph 21 of Schedule 16 to F(No.2)A 2017 (as amended by subsection (2)).

The amendments made by subsections (4) to (7) have effect for a purpose mentioned in paragraph (a) or (b) of paragraph 40(1) of Schedule 16 to F(No.2)A 2017 (as substituted by subsection (4)(a)) in relation to tax arrangements whenever entered into (whether before or after the passing of this Act).

The amendments made by subsection (8) do not have effect in relation to a person who incurs a penalty under paragraph 1 of Schedule 16 to F(No.2)A 2017 whose liability to the penalty arose solely by reason of actions of the person carried out before the day on which this Act is passed.

Schedule 32 makes provision about the operation of the general anti-abuse rule in relation to partnerships.

The amendments made by the Schedule have effect in relation to tax arrangements (within the meaning of Part 5 of FA 2013) entered into at any time (whether before or after the passing of this Act).

Schedule 33 contains provision requiring licensing authorities, before considering an application for an authorisation to which that Schedule applies—

Schedule 33 has effect in relation to applications made on or after 4 April 2022.

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

After paragraph 4 insert—

In paragraph 6 (notices)—

After paragraph 61 insert—

As soon as reasonably practicable after the end of each financial year, the Commissioners for Her Majesty's Revenue and Customs must provide the Treasury with—

Information received under subsection (5) must be included in a report laid before the House of Commons by the Treasury.

The report mentioned in subsection (6) must be laid not later than 31 January following the end of the financial year to which the information relates.

For the purposes of subsections (5) to (7)—“financial institution notice” means a notice under paragraph 4A of Schedule 36 to FA 2008; each of the following is a “financial year”—the period beginning with the date on which this Schedule comes into force and ending with 31 March 2022, and each successive period of 12 months.

The amendments made by subsections (2) to (4) have effect—

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

In paragraph 1(1) (taxpayer notices), at the end insert “ or for the purpose of collecting a tax debt of the taxpayer ”.

In paragraph 2(1) (third party notices), at the end insert “ or for the purpose of collecting a tax debt of the taxpayer ”.

In paragraph 5(2) (persons whose identities are not known), after “tax position of” insert “ or for the purpose of collecting a tax debt of ”.

In paragraph 5A (persons whose identity can be ascertained)—

After paragraph 63 insert—

After paragraph 63A (inserted by subsection (6)) insert—

The amendments made by this section have effect for the purpose of collecting a tax debt of a person whenever arising.

In Schedule 3 to CEMA 1979 (provisions relating to forfeiture), after paragraph 17 insert—

The amendments made by this section have effect in relation to a thing seized as liable to forfeiture on or after the day on which this Act is passed.

In Chapter 2 of Part 1 of FA 1994 (customs and excise: appeals and penalties), after section 16 insert—

In section 16A(1) of FA 1994 (inserted by subsection (1) of this section), the reference to HMRC notifying P of an approval decision includes a reference to HMRC having notified P of such a decision before the coming into force of this section.

This section comes into force on such day as the Commissioners may by regulations made by statutory instrument appoint.

In section 70O of CAA 2001 (funding leases: the lease payments test)—

In section 228MB of CAA 2001 (plant or machinery leases: present value of asset)—

In section 437C of CTA 2010 (plant or machinery lease: present value of lease)—

Subsection (1) has effect in relation to leases the inception of which (within the meaning of section 70YI of CAA 2001) is on or after 1 January 2022.

Subsection (2) has effect in relation to leases entered into on or after 1 January 2022.

Subsection (3) has effect in cases where the relevant time for the purposes of section 437C of CTA 2010 is on or after 1 January 2022.

The Treasury may by regulations make provision about the tax consequences of things done in anticipation of or in connection with—

Regulations under this section may, for example, make provision—

Regulations under this section may include retrospective provision.

Where regulations under this section do so—

Regulations that include provision for an election mentioned in subsection (4)—

Regulations under this section may—

Regulations under this section may—

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

No regulations may be made under this section unless a draft of the statutory instrument containing them has been laid before and approved by a resolution of the House of Commons.

In this section—“enactment” includes an enactment contained in subordinate legislation (within the meaning of the Interpretation Act 1978);“reference rate” means a published rate used to set interest rates for financial instruments;“tax” includes stamp duty.

The power conferred by this section is not exercisable after 31 December 2023, except for the purpose of revoking regulations made under it on or before that date.

In section 133N of CTA 2009 (powers to amend provisions relating to banking companies), after subsection (3) insert—

Chapter 2 of Part 7A of CTA 2010 (banking companies: key definitions) is amended as follows.

For the italic heading before section 269BE (power to make consequential changes) substitute “ Powers to amend ”.

In section 269BE—

Part 9 of Schedule 19 to FA 2011 (the bank levy: power to make consequential changes) is amended as follows.

For the Part heading substitute “ Powers to amend ”.

In paragraph 81—

Section 279C (company with ring fence profits and other profits) is amended as follows.

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

For subsection (2) substitute—

Section 279E (the lower limit and the upper limit) is amended as follows.

In subsection (2)—

In subsection (3)—

The Corporation Tax (Instalment Payments) Regulations 1998 (interpretation) are amended as follows.

In regulation 2 (interpretation)—

In regulations 3 and 3A (large and very large companies), for “related 51% group” (in each place) substitute “ associated ”.

Section 99 (long-life assets: the monetary limit) is amended as follows.

In subsection (4)—

After that subsection insert—

Section 357BN (profits arising from the exploitation of patents etc: small claims treatment) is amended as follows.

In subsection (7)—

After subsection (8) insert—

Section 357BNB (profits arising from the exploitation of patents etc: small claims figure election) is amended as follows.

In subsection (6), for “no company is a related 51% group company of the company” substitute “ the company has no associated company ”.

In subsection (7)—

After subsection (9) insert—

The other amendments made by this Schedule have effect for the financial year 2023 and subsequent financial years.

In the case of an accounting period (a “straddling period”) beginning before 1 April 2023 and ending on or after date, those other amendments have effect as if the different parts of the straddling period falling in the different financial years were separate accounting periods.

For this purpose all necessary apportionments are to be made between the two separate accounting periods.

The Treasury may by regulations make such provision as they consider appropriate in consequence of the provision made by this Schedule.

The regulations—

A person who has made a loss in a trade in the tax year 2020-21 may make a claim for relief under this paragraph if—

Condition A is that the person makes a claim under section 64 of ITA 2007 for relief in respect of the section 64 amount for either or both of the tax years 2019-20 and 2020-21.

Condition B is that the person's total income for the tax years 2019-20 and 2020-21—

The amount of the loss that may be relieved under this paragraph (“the deductible amount”) is—But see sub-paragraph (9) (limit on total deductions under this paragraph).

A claim for relief under this paragraph is for the deductible amount to be deducted (in accordance with whichever is applicable of sub-paragraphs (7) and (8)) in calculating the person's net income for one or more of the tax years 2017-18, 2018-19 and 2019-20 at Step 2 of the calculation in section 23 of ITA 2007 (which applies as if this paragraph were a provision listed in section 24 of that Act).

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

This sub-paragraph explains how the deductions are to be made in a case where the person makes a claim under section 64 of ITA 2007 for relief in respect of the section 64 amount for the tax year 2019-20. Step 1 Deduct the deductible amount from the profits of the trade for the tax year 2018-19. Step 2 Deduct from the profits of the trade for the tax year 2017-18 so much of the deductible amount as has not been deducted under Step 1.

This sub-paragraph explains how the deductions are to be made in any other case. Step 1 Deduct the deductible amount from the profits of the trade for the tax year 2019-20. Step 2 Deduct from the profits of the trade for the tax year 2018-19 so much of the deductible amount as has not been deducted under Step 1. Step 3 Deduct from the profits of the trade for the tax year 2017-18 so much of the deductible amount as has not been deducted under Step 1 or 2.

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

A claim for relief under this paragraph must be made on or before the first anniversary of the normal self-assessment filing date for the tax year 2020-21.

A person who has made a loss in a trade in the tax year 2021-22 may make a claim for relief under this paragraph if—

Condition A is that the person makes a claim under section 64 of ITA 2007 for relief in respect of the section 64 amount for either or both of the tax years 2020-21 and 2021-22.

Condition B is that the person's total income for the tax years 2020-21 and 2021-22—

The amount of the loss that may be relieved under this paragraph (“the deductible amount”) is—But see sub-paragraph (9) (limit on total deductions under this paragraph).

A claim for relief under this paragraph is for the deductible amount to be deducted (in accordance with whichever is applicable of sub-paragraphs (7) and (8)) in calculating the person's net income for one or more of the tax years 2018-19, 2019-20 and 2020-21 at Step 2 of the calculation in section 23 of ITA 2007 (which applies as if this paragraph were a provision listed in section 24 of that Act).

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

This sub-paragraph explains how the deductions are to be made in a case where the person makes a claim under section 64 of ITA 2007 for relief in respect of the section 64 amount for the tax year 2020-21. Step 1 Deduct the deductible amount from the profits of the trade for the tax year 2019-20. Step 2 Deduct from the profits of the trade for the tax year 2018-19 so much of the deductible amount as has not been deducted under Step 1.

This sub-paragraph explains how the deductions are to be made in any other case. Step 1 Deduct the deductible amount from the profits of the trade for the tax year 2020-21. Step 2 Deduct from the profits of the trade for the tax year 2019-20 so much of the deductible amount as has not been deducted under Step 1. Step 3 Deduct from the profits of the trade for the tax year 2018-19 so much of the deductible amount as has not been deducted under Step 1 or 2.

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

A claim for relief under this paragraph must be made on or before the first anniversary of the normal self-assessment filing date for the tax year 2021-22.

The following sections of ITA 2007 apply in relation to relief under paragraph 1 or 2 as they apply in relation to relief under section 64 of that Act—

Paragraphs 1 and 2 apply to professions and vocations as they apply to trades.

Paragraphs 1 and 2 are subject to paragraph 2 of Schedule 1B to TMA 1970 (claims to loss relief involving 2 or more years).

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

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

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

This paragraph applies to any loss incurred by a company in a trade in a relevant accounting period.

In this paragraph “relevant accounting period” means an accounting period that ends in the period beginning with 1 April 2020 and ending with 31 March 2022.

Sub-paragraph (5) applies where—

A claim for relief under section 37 of CTA 2010 by virtue of this paragraph in respect of the relevant loss is treated, so far as possible, as being made in respect of the part of the loss that is not relievable as mentioned in sub-paragraph (4)(b).

Section 42 of CTA 2010 (ring fence trades: further extension of period of relief) has effect as if—

A 2020 claim may be made by a company that is not a member of a 2020 group only if the total amount of relief given as a result of the claim, when added to the total amount of relief given as a result of any other 2020 claims already made by the company, is under £2,000,000.

A 2021 claim may be made by a company that is not a member of a 2021 group only if the total amount of relief given as a result of the claim, when added to the total amount of relief given as a result of any other 2021 claims already made by the company, is under £2,000,000.

A non-de minimis 2020 claim may not be made by a company (whether or not it is a member of a 2020 group) at any time before 31 March 2021.

A non-de minimis 2021 claim may not be made by a company (whether or not it is a member of a 2021 group) at any time before 31 March 2022.

A non-de minimis claim must be made in the company tax return (whether as originally made or by amendment) for the accounting period in which the loss in respect of which the claim is made is incurred.

The company tax return for any earlier accounting period affected by the claim is treated as amended accordingly.

For the purposes of this Part of this Schedule, a 2020 claim is a “de minimis 2020 claim” if—

For the purposes of this Part of this Schedule, a 2021 claim is a “de minimis 2021 claim” if—

The assumptions are—

In this Part of this Schedule—

A non-de minimis 2020 claim may be made by a company that is a member of a 2020 group only if the total amount of relief given as a result of each of the following claims is, in aggregate, less than £2,000,000—

A non-de minimis 2021 claim may be made by a company that is a member of a 2021 group only if the total amount of relief given as a result of each of the following claims is, in aggregate, less than £2,000,000—

A non-de minimis 2020 claim may be made by a company that is a member of a 2020 group only if—

A non-de minimis 2021 claim may be made by a company that is a member of a 2021 group only if—

The Commissioners must by regulations make provision—

The regulations may, in particular, include provision about—

The reference in sub-paragraph (2)(g) to overpaid relief is to an amount paid to a company by HMRC where—

In this paragraph—“HMRC” means Her Majesty's Revenue and Customs;“a loss carry-back allocation statement” means a 2020 loss carry-back allocation statement or a 2021 loss carry-back allocation statement.

A company may not make a 2020 claim if—

A company may not make a 2021 claim if—

In this paragraph “group” has the meaning given by section 269ZZB of CTA 2010 (meaning “group” in Part 7ZA of CTA 2010).

In this Part of this Schedule—“2020 claim” means a claim for relief under section 37 of CTA 2010 by virtue of paragraph 4 that is made in respect of a loss incurred in an accounting period that ends in the period beginning with 1 April 2020 and ending with 31 March 2021;“2021 claim” means a claim for relief under section 37 of CTA 2010 by virtue of paragraph 4 that is made in respect of a loss incurred in an accounting period that ends in the period beginning with 1 April 2021 and ending with 31 March 2022;“2020 group” means two or more companies which, at the end of 31 March 2021, are a group within the meaning given by section 269ZZB of CTA 2010 (meaning of “group”);“2021 group” means two or more companies which, at the end of 31 March 2022 are a group within the meaning given by section 269ZZB of CTA 2010 (meaning of “group”);“a 2020 loss carry-back allocation statement” has the meaning given by paragraph 11(1)(a);“a 2021 loss carry-back allocation statement” has the meaning given by paragraph 11(1)(b);“the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs;“de minimis claim” and related expressions have the meanings given by paragraph 8.

A reference in this Part of this Schedule to the total amount of relief given as a result of a 2020 claim or 2021 claim—

The Commissioners may by regulations amend or otherwise modify the following provisions of this Part of this Schedule—

Regulations under this paragraph may include supplementary, incidental, consequential or transitional provision (including provision amending or otherwise modifying a provision of this Part of this Schedule not mentioned in sub-paragraph (1)).

Regulations under this paragraph are of no effect in relation to a 2020 claim or 2021 claim made before the regulations come into force.

No regulations under this paragraph may be made after 31 March 2023.