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70 5Power to make further provision about section 67 pension scheme

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

(a) the application of the relevant taxes in relation to a pension scheme
established under section 67 of the Pensions Act 2008, and

(b) the application of the relevant taxes in relation to any person in
10connection with such a pension scheme.

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

(3) The relevant taxes are—

(a) 15income tax,

(b) capital gains tax,

(c) corporation tax, and

(d) inheritance tax.

(4) Regulations under this section may include provision having effect in relation
20to any time before they are made if the provision does not increase any
person’s liability to tax.

(5) Regulations under this section may include—

(a) provision amending any enactment or instrument, and

(b) consequential, supplementary and transitional provision.

(6) 25Regulations under this section are to be made by statutory instrument.

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

71 Tax provision consequential on Part 1 of Pensions Act 2008 etc

(1) The Treasury may by regulations make provision in relation to any of the
30relevant taxes in consequence of Part 1 of the Pensions Act 2008 or Part 1 of the
Pensions (No.2) Act (Northern Ireland) 2008.

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

(3) 35The relevant taxes are—

(a) income tax,

(b) capital gains tax,

(c) corporation tax,

(d) inheritance tax,

(e) 40value added tax,

(f) stamp duty land tax,

(g) stamp duty, and

(h) stamp duty reserve tax.

Finance (No. 3) BillPage 41

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

(5) Regulations under this section may make different provision for different
5cases.

(6) Regulations under this section may include—

(a) provision amending any enactment or instrument, and

(b) consequential, supplementary and transitional provision.

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

(8) 10A statutory instrument containing regulations under this section is subject to
annulment in pursuance of a resolution of the House of Commons.

72 Foreign pensions of UK residents

(1) In Part 2 of TIOPA 2010 (double taxation relief), in Chapter 3 (miscellaneous
provisions), after section 130 insert—

130A 15 Interpreting provision about UK taxation of pensions etc

(1) Subsection (3) applies if double taxation arrangements make the
provision, however expressed, mentioned in subsection (2).

(2) The provision is that pensions and other similar remuneration which—

(a) arise outside the United Kingdom, and

(b) 20are paid to persons who are resident in the United Kingdom,

are not to be subject to United Kingdom tax.

(3) That provision does not prevent a pension or other similar
remuneration of a person resident in the United Kingdom being
chargeable to income tax if—

(a) 25the pension or other similar remuneration is paid out of sums or
assets that were the subject of a relevant transfer or related sums
or assets, and

(b) the relevant transfer or any transaction forming part of that
transfer was, or formed part of, a tax avoidance scheme.

(4) 30But nothing in subsection (3) prevents credit being allowed under
Chapter 2 of this Part (double taxation relief by way of credit) against
any tax so charged.

(5) In determining whether a pension or other similar remuneration is paid
out of sums or assets within subsection (3)(a), it is to be assumed that it
35is paid out of such sums or assets in priority to any other sums or assets.

(6) A “relevant transfer”, in respect of any sums or assets, is a transaction
or series of transactions as a result of which—

(a) the sums or assets are transferred out of a pension scheme, and

(b) the sums or assets or related sums or assets (or both) are
40transferred into the pension scheme under which the pension or
other similar remuneration is paid.

(7) A scheme is a “tax avoidance scheme” if the main purpose, or one of the
main purposes, of any party to the scheme in entering into the scheme

Finance (No. 3) BillPage 42

is to secure an income tax advantage for any person under this Part by
virtue of provision mentioned in subsection (2) made by double
taxation arrangements.

(8) For the purposes of subsection (7)—

(a) 5“scheme” includes any scheme, arrangements or understanding
of any kind whatever, whether or not legally enforceable,
involving a single transaction or two or more transactions,

(b) it does not matter whether or not the double taxation
arrangements were in existence at the time the tax avoidance
10scheme was entered into or given effect to, and

(c) “income tax advantage” is to be construed in accordance with
section 572A(3) to (5) of ITA 2007.

(9) In this section—

(2) The amendment made by this section has effect in relation to the tax year 2011-
2512 and subsequent tax years (and it does not matter whether the tax avoidance
scheme was entered into or effected before, or on or after, 6 April 2011).

Part 5 Bank levy

73 The bank levy

30Schedule 19 contains provision for and in connection with the bank levy.

Part 6 Other taxes

Value added tax

74 Business samples

(1) 35In Schedule 4 to VATA 1994 (matters to be treated as supply of goods or
services), paragraph 5 (transfer or disposal of goods forming part of the assets
of a business) is amended as follows.

(2) For sub-paragraph (2)(b) substitute—

(b) the provision to a person, otherwise than for a consideration,
40of a sample of goods.

(3) Omit sub-paragraph (3).

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75 Zero-rating: splitting of supplies

(1) In Part 2 of Schedule 8 to VATA 1994 (zero-rating: groups), Group 3 (books,
etc) is amended as follows.

(2) For “Note: Items 1 to 6—” substitute—

5Notes:

(1) Items 1 to 6—.

(3) At the end insert—

(2) Items 1 to 6 do not include goods in circumstances where—

(a) the supply of the goods is connected with a supply of
10services, and

(b) those connected supplies are made by different suppliers.

(3) For the purposes of Note (2) a supply of goods is connected with
a supply of services if, had those two supplies been made by a single
supplier—

(a) 15they would have been treated as a single supply of services,
and

(b) that single supply would have been a taxable supply (other
than a zero-rated supply) or an exempt supply.

(4) The amendments made by this section have effect in relation to supplies made
20on or after the day on which this Act is passed.

76 Academies

(1) In Part 2 of VATA 1994 (reliefs, exemptions and repayments), after section 33A
insert —

33B Refunds of VAT to Academies

(1) 25This section applies where—

(a) VAT is chargeable on—

(i) the supply of goods or services to the proprietor of an
Academy,

(ii) the acquisition of any goods from another member State
30by the proprietor of an Academy, or

(iii) the importation of any goods from a place outside the
member States by the proprietor of an Academy, and

(b) the supply, acquisition or importation is not for the purposes of
any business carried on by the proprietor of the Academy.

(2) 35The Commissioners shall, on a claim made by the proprietor of the
Academy at such time and in such form and manner as the
Commissioners may determine, refund to that proprietor the amount
of VAT so chargeable.

(3) Subject to subsection (4), the claim must be made before the end of the
40period of 4 years beginning with the day on which the supply is made
or the acquisition or importation takes place.

(4) If the Commissioners so determine, the claim period is such shorter
period beginning with that day as the Commissioners may determine.

Finance (No. 3) BillPage 44

(5) Subsection (6) applies where goods or services supplied to, or acquired
or imported by, the proprietor of the Academy cannot be conveniently
distinguished from goods or services supplied to, or acquired or
imported by, it for the purpose of a business carried on by that
5proprietor.

(6) The amount to be refunded under this section is such amount as
remains after deducting from the whole of the VAT chargeable on any
supply to, or acquisition or importation by, the proprietor of the
Academy such proportion of that VAT as appears to the
10Commissioners to be attributable to the carrying on of the business.

(7) References in this section to VAT do not include any VAT which, by
virtue of an order under section 25(7), is excluded from credit under
section 25.

(8) In this section—

(a) 15references to the proprietor of an Academy are to the proprietor
of the Academy acting in that capacity, and

(b) “Academy” and “proprietor” have the same meaning as in the
Education Act 1996 (see section 579 of that Act).

(2) In section 79 of that Act (repayment supplement in respect of certain delayed
20payments or refunds)—

(a) in subsection (1), after paragraph (c) insert , or

(d) the proprietor of an Academy who is registered is
entitled to a refund under section 33B,,

(b) in subsection (5), after paragraph (c) insert , and

(d) 25a supplement paid to the proprietor of an Academy
under subsection (1)(d) shall be treated as an amount
due to that proprietor by way of refund under section
33B., and

(c) in subsection (6)(b) after “33A” insert “or 33B”.

(3) 30In section 90 of that Act (failure of resolution under the Provisional Collection
of Taxes Act 1968), in subsection (3) after “33A,” insert “33B,”.

(4) In Part 2 of Schedule 9 to that Act (exemptions: groups), in Group 14 (supplies
of goods where input tax cannot be recovered), in Note (9) after “33A,” insert
“33B,”.

(5) 35The amendments made by this section have effect in relation to supplies made,
and acquisitions and importations taking place, on or after 1 April 2011.

77 Relief from VAT on imported goods of low value

(1) In Schedule 2 to the Value Added Tax (Imported Goods) Relief Order 1984 (S.I.
1984/746) (reliefs for goods of certain descriptions), in item 8 of Group 8
40(consignments of goods not exceeding a certain value), for “£18” substitute
“£15”.

(2) The amendment of that Schedule by this section is without prejudice to any
power to amend that Schedule by subordinate legislation.

(3) The amendment made by this section has effect in relation to goods imported
45on or after 1 November 2011.

Finance (No. 3) BillPage 45

Climate change levy

78 Supplies of commodities to be used in producing electricity

Schedule 20 contains provision for and in connection with the charging of
climate change levy on supplies of commodities to be used in producing
5electricity.

79 Northern Ireland gas supplies

(1) In Schedule 6 to FA 2000 (climate change levy), omit paragraph 11A
(exemption for Northern Ireland gas supplies).

(2) Subsection (3) applies to a supply of gas if—

(a) 10the supply is made by a gas utility (within the meaning of that Schedule
(see paragraph 147)),

(b) the person to whom the supply is made intends to cause the gas to be
burned in Northern Ireland, and

(c) the supply is treated as taking place on or after 1 April 2011 but before
151 November 2013.

(3)
Paragraph 42 of that Schedule (amount payable by way of levy) has effect as
if—

(a) for sub-paragraphs (1) and (1A) there were substituted—

(1) The amount payable by way of levy on a taxable supply is—

(a) 20if the supply is treated as taking place before 1 April
2012, £0.00059 per kilowatt hour, and

(b) if the supply is treated as taking place on or after that
date, £0.00062 per kilowatt hour., and

(b) in sub-paragraph (3) the reference to a reduced-rate supply were a
25reference to a supply in relation to which this subsection applies.

(4) In FA 2001, omit section 105(2) (which inserted paragraph 11A of that
Schedule).

(5) The amendments made by subsections (1) and (4) have effect in relation to a
supply of gas to a person if the gas is actually supplied to the person on or after
301 April 2011.

(6) Subsections (2) and (3) are treated as having come into force on 1 April 2011.

80 Power to suspend exemption for supplies used in recycling processes

(1) The Treasury may by order provide that Schedule 6 to FA 2000 (climate change
levy) is to have effect in relation to any supply of a taxable commodity made
35on or after 1 April 2011 as if—

(a) paragraph 18A (exemption: supply for use in recycling processes), and

(b) any reference to that paragraph,

were omitted.

(2) An order made under this section may apply—

(a) 40generally, or

(b) only in relation to supplies of a description specified in the order.

Finance (No. 3) BillPage 46

(3) Any revocation order made under this section may provide for the revocation
to have effect in relation to supplies made on or after a day which is earlier than
the day on which the revocation order is made.

(4) In this section a “revocation order” is an order revoking the whole or any part
5of an order containing the provision mentioned in subsection (1).

(5) The power to make an order under this section, other than a revocation order,
may not be exercised after 31 March 2012.

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

(7) 10A statutory instrument containing an order under this section is subject to
annulment in pursuance of a resolution of the House of Commons.

(8) Any reference in this section to the time at which a supply of a taxable
commodity is made is to be read as a reference to the time at which the taxable
commodity is actually supplied.

15Aggregates levy

81 Transitional tax credit

(1) Section 30A of FA 2001 (transitional tax credit in Northern Ireland) is amended
as follows.

(2) For subsection (2) substitute—

(2) 20The cases are those where a charge to aggregates levy has arisen on a
quantity of aggregate which has been subjected to commercial
exploitation during a prescribed period.

(3) Omit subsection (3).

(4) In subsection (5), for paragraph (a) substitute—

(a) 25for a person to be entitled to a tax credit under the regulations
in respect of aggregate originating from a site in respect of
which any person holds an aggregates levy credit certificate
which has not been withdrawn;.

Stamp duty land tax

82 30Prevention of avoidance

Schedule 21 contains provision preventing avoidance of stamp duty land tax.

83 Transfers involving multiple dwellings

Schedule 22 contains provision about the amount of stamp duty land tax
chargeable in respect of a transaction or set of transactions involving the
35acquisition of an interest in more than one dwelling.

Finance (No. 3) BillPage 47

Stamp duty reserve tax

84 Interests in collective investment schemes

(1) Section 99 of FA 1986 (stamp duty reserve tax: interpretation) is amended as
follows.

(2) 5In subsection (5B)—

(a) in paragraph (b), for the words after “exempt investment” substitute “,
unless subsection (5C) applies to the scheme;”, and

(b) omit the sentence after paragraph (d).

(3) After subsection (5B) insert—

(5C) 10This subsection applies to a collective investment scheme if more than
20% of the market value of the investments in which the property
subject to the scheme is invested is attributable to investments which
are not exempt investments for the purposes of subsection (5A)(b).

(5D) In subsections (5B) and (5C) “collective investment scheme” has the
15same meaning as in Part 17 of the Financial Services and Markets Act
2000.

(4) This section comes into force on the first Sunday after the day on which this Act
is passed.

Part 7 20Administration etc

85 Security for payment of PAYE

(1) Section 684 of ITEPA 2003 (PAYE regulations) is amended as follows.

(2) In subsection (2), after item 4A insert—

4B Provision for and in connection with requiring the giving, in
25specified circumstances, of security (or further security) for the
payment of amounts in respect of which a person is or may be
accountable to the Commissioners under the regulations.

(3) After subsection (4) insert—

(4A) A person who fails to comply with a requirement imposed under PAYE
30regulations to give security, or further security, for the payment of any
amount commits an offence if the failure continues for such period as is
specified; and a person guilty of an offence under this subsection is
liable on summary conviction to a fine not exceeding level 5 on the
standard scale.

86 35Data-gathering powers

(1) Schedule 23 contains provision for officers of Revenue and Customs to obtain
data from data-holders.

(2) Schedule 24 contains amendments of Schedule 36 to FA 2008 (information and
inspection powers).

Finance (No. 3) BillPage 48

87 Mutual assistance for recovery of taxes etc

(1) Schedule 25 contains provision for the purpose of giving effect to Council
Directive 2010/24/EU (which concerns mutual assistance for the recovery of
claims relating to taxes, duties and other measures).

(2) 5The Treasury may by regulations make provision for the purpose of giving
effect to—

(a) any amendments or extensions of Council Directive 2010/24/EU,

(b) any EU instrument that—

(i) wholly or partly replaces that Directive or a replacement of it, or

(ii) 10otherwise makes provision for or in connection with mutual
assistance between member States in the recovery of claims
relating to taxes, duties and other measures, and

(c) any amendments or extensions of any such EU instrument.

(3) Regulations under subsection (2) may amend, replace or repeal Schedule 25
15and any other enactment (whenever passed).

(4) But regulations under subsection (2) may not include—

(a) provision that would, if it were a provision of an Act of the Scottish
Parliament, be within the legislative competence of the Scottish
Parliament, or

(b) 20provision that, in its application to Northern Ireland, deals with a
transferred matter within the meaning of the Northern Ireland Act
1998.

(5) Regulations under subsection (2) are to be made by statutory instrument.

(6) An instrument containing regulations under subsection (2) is subject to
25annulment in pursuance of a resolution of the House of Commons.

Part 8 Miscellaneous provisions

88 Amendments of section 1 of the Provisional Collection of Taxes Act 1968

(1) Section 1 of the Provisional Collection of Taxes Act 1968 (temporary statutory
30effect of House of Commons resolutions relating to certain taxes) is amended
in accordance with subsections (2) to (7).

(2) In subsection (2) for “(8)” substitute “(9)”.

(3) For subsection (3) substitute—

(3) The period is one expiring at the end of seven months after the date on
35which the resolution is expressed to take effect or, if no such date is
expressed, after the date on which the resolution is passed.

(4) In subsection (5)—

(a) in paragraph (c) omit “or prorogued”, and

(b) after paragraph (c) insert , or

(d) 40Parliament is prorogued.

Finance (No. 3) BillPage 49

(5) After subsection (5) insert—

(5A) Subsection (5B) applies in relation to a resolution instead of subsection
(5)(d) where Parliament is prorogued at the end of a session if—

(a) one of the following happens during the session—

(i) 5a Bill renewing, varying or, as the case may be,
abolishing the tax is read a first time by the House, or

(ii) a Bill is amended by the House in Committee or on
Report or by any Public Bill Committee of the House so
as to include provision for the renewal, variation or, as
10the case may be, abolition of the tax,

(b) the Standing Orders or Sessional Orders of the House provide,
or during the session the House orders, that proceedings on the
Bill not completed before the end of the session shall be
resumed in the next session, and

(c) 15proceedings on the Bill are not completed during the session.

(5B) The resolution shall cease to have statutory effect under this section if,
during the period of thirty sitting days beginning with the first sitting
day of the next session, no Bill renewing, varying or, as the case may be,
abolishing the tax is presented to the House.

(5C) 20In subsection (5B) “sitting day” means a day on which the House sits.

(5D) Where a Bill is amended as mentioned in subsection (5A)(a)(ii), it does
not matter for the purposes of subsection (5A)(b) if the House orders as
mentioned in subsection (5A)(b) before the amendment to the Bill is
made.

(6) 25In subsection (6) for “(4) or (5)” substitute “(4), (5) or (5B)”.

(7) After subsection (8) insert—

(9) Subsection (8) does not apply where the later resolution is passed in a
different calendar year from that in which the earlier resolution is
passed.

(8) 30Accordingly, the following provisions are repealed—

(a) section 205(4) of FA 1993;

(b) section 50(1) and (3) of F(No.2)A 1997.

(9) The amendments made by this section come into force on such day as the
Treasury may by order made by statutory instrument appoint.

(10) 35Subject to subsection (11), the amendments do not apply in relation to any
resolution passed before the day appointed under subsection (9).

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