Finance (No. 4) Bill

Session 2010 - 12
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Other Bills before Parliament

Finance (No. 4) Bill

Finance (No. 4) Bill
Part 8 — Other taxes
123

(2)
The following provisions are repealed—
(a)
section 61(3) to (3C) of the National Health Service and Community
Care Act 1990 (stamp duty and stamp duty land tax reliefs for health
service bodies);
(b)
section 58 of the National Health Service Act 2006 (which applies those
5
stamp duty and stamp duty land tax reliefs to NHS foundation trusts);
(c)
paragraphs 132 and 133 of Schedule 1 to the National Health Service
(Consequential Provisions) Act 2006.
(3)
The repeals in subsection (2), to the extent that they relate to stamp duty, have
effect in relation to any instrument executed on or after the day on which this
10
Act is passed.
(4)
Subject to that, the amendments made by this section have effect in relation to
any land transaction of which the effective date is on or after the day on which
this Act is passed.
(5)
Until such time as bodies of a kind mentioned in subsection (6) are abolished
15
under the Health and Social Care Act 2011, section 67A of FA 2003 has effect as
if the list in that section included bodies of that kind.
(6)
Those bodies are—
(a)
a National Health Service trust established under section 25 of the
National Health Service Act 2006, and
20
(b)
a Primary Care Trust.
215
Collective investment schemes: stamp duty and stamp duty reserve tax
(1)
The Treasury may by regulations confer an exemption or other relief from
stamp duty or stamp duty reserve tax for transactions relating to collective
investment schemes.
25
(2)
The regulations may, in particular—
(a)
specify descriptions of collective investment scheme in relation to
which the exemption or relief is available, and
(b)
specify the cases in which the exemption or relief is available.
(3)
Regulations under this section may make different provision for different cases
30
or different purposes.
(4)
Regulations under this section—
(a)
may modify any enactment or instrument (whenever passed or made),
and
(b)
may include incidental, consequential, supplementary or transitional
35
provision.
(5)
Regulations under this section are to be made by statutory instrument.
(6)
A statutory instrument containing regulations under this section is subject to
annulment in pursuance of a resolution of the House of Commons.
(7)
In this section—
40
“collective investment scheme” has the meaning given by section 235 of
the Financial Services and Markets Act 2000, and
“modify” includes amend, repeal or revoke.

Finance (No. 4) Bill
Part 9 — Miscellaneous matters
124

Part 9
Miscellaneous matters
International matters
216
Agreement between UK and Switzerland
(1)
Schedule 35 contains provision giving effect to—
5
(a)
an agreement signed on 6 October 2011 between the United Kingdom
and the Swiss Confederation on co-operation in the area of taxation, as
amended by a protocol signed by them on 20 March 2012, and
(b)
the joint declaration (concerning a tax finality payment) forming an
integral part of that protocol.
10
(2)
Schedule 35 comes into force on the day on which the agreement of 6 October
2011 enters into force.
(3)
In section 23 of the Constitutional Reform and Governance Act 2010, after
subsection (2A) insert—
“(2B)
Section 20 does not apply to any treaty referred to in section 216(1) of
15
the Finance Act 2012.”
217
Penalties: offshore income etc
In paragraph 21A of Schedule 24 to FA 2007 (classification of territories), in
sub-paragraph (4)—
(a)
omit “and” at the end of paragraph (b), and
20
(b)
at the end of paragraph (c) insert—
“(d)
the existence of any other arrangements between the UK
and that territory for co-operation in the area of taxation,
and
(e)
the quality of any such other arrangements (in
25
particular, the extent to which the co-operation
provided for in them assists or is likely to assist in the
protection of revenue raised from taxation in the UK).”
218
International military headquarters, EU forces, etc
Schedule 36 contains provision about the tax treatment of international
30
military headquarters, EU forces, etc.
Financial sector regulation
219
Tax consequences of financial sector regulation
(1)
The Treasury may by regulations make provision about the tax consequences
in relation to securities of any regulatory requirement imposed by any EU
35
legislation (whenever adopted) or enactment on—
(a)
persons who are authorised persons for the purposes of the Financial
Services and Markets Act 2000 (see section 31 of that Act), or

Finance (No. 4) Bill
Part 9 — Miscellaneous matters
125

(b)
parent undertakings (as defined in section 420 of that Act) of such
persons.
(2)
Regulations under this section may, in particular, make provision—
(a)
charging any tax or granting, withdrawing or restricting an exemption
or other relief from any tax, and
5
(b)
about the treatment of arrangements the purpose, or one of the main
purposes, of which is to secure a tax advantage.
(3)
Regulations under this section may provide that a reference in the
regulations—
(a)
to any EU legislation or enactment,
10
(b)
to any document, or
(c)
to any provision of any EU legislation, enactment or document

is to be construed as a reference to that legislation, enactment, document or
provision as amended from time to time.
(4)
Regulations under this section—
15
(a)
may apply (with or without modifications) or disapply any enactment,
(b)
may modify, amend, repeal or revoke any enactment,
(c)
may make different provision for different cases or different purposes,
and
(d)
may include incidental, consequential, supplementary or transitional
20
provision.
(5)
Regulations under this section are to be made by statutory instrument.
(6)
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.
25
(7)
In this section—
“arrangements” includes any arrangements, scheme or understanding of
any kind, whether or not legally enforceable and whether involving a
single transaction or two or more transactions;
“enactment” includes an enactment contained in subordinate legislation
30
(within the meaning of the Interpretation Act 1978), and includes an
enactment whenever passed or made;
“tax” includes stamp duty;
“tax advantage” means—
(a)
a relief from tax (including a tax credit) or increased relief from
35
tax,
(b)
a repayment of tax or increased repayment of tax,
(c)
the avoidance, reduction or delay of a charge to tax or an
assessment to tax, or
(d)
the avoidance of a possible assessment to tax.
40
Incapacitated persons and minors
220
Removal of special provision for incapacitated persons and minors
(1)
In TMA 1970 omit—

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Part 9 — Miscellaneous matters
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(a)
section 42(8) (procedure for making claims etc on behalf of
incapacitated persons),
(b)
section 72 (trustees, guardians, etc of incapacitated persons), and
(c)
section 73 (further provision as to infants).
(2)
In Part 4 of FA 2003 (stamp duty land tax), omit section 106(1) and (2) (persons
5
acting in a representative capacity on behalf of incapacitated persons and
minors).
(3)
Accordingly, incapacitated persons are (and minors remain) assessable and
chargeable to the taxes in question.
(4)
In consequence of the amendments made by subsections (1) and (2)—
10
(a)
in section 118(1) of TMA 1970, omit the definitions of “incapacitated
person” and “infant”,
(b)
omit paragraphs 33 and 34 of Schedule 1 to the Age of Legal Capacity
(Scotland) Act 1991,
(c)
in paragraph 5 of Schedule 2 to the Social Security Contributions and
15
Benefits Act 1992—
(i)
omit paragraph (a) (and the “or” after it), and
(ii)
in paragraph (b), for “such” substitute “Class 4”,
(d)
in paragraph 5 of Schedule 2 to the Social Security Contributions and
Benefits (Northern Ireland) Act 1992—
20
(i)
omit paragraph (a) (and the “or” after it), and
(ii)
in paragraph (b), for “such” substitute “Class 4”, and
(e)
in section 81B(4) of FA 2003, omit paragraph (b) (and the “or” before it).
(5)
The amendments made by subsections (1) and (4)(a) to (d) have effect for the
tax year 2012-13 and subsequent tax years.
25
(6)
The amendments made by subsections (2) and (4)(e) have effect in relation to
land transactions of which the effective date is on or after the day on which this
Act is passed.
Administration
221
Tax agents: dishonest conduct
30
(1)
Schedule 37 contains provision about tax agents who engage in dishonest
conduct.
(2)
That Schedule comes into force on such day as the Treasury may by order
appoint.
(3)
An order under subsection (2)—
35
(a)
may make different provision for different purposes, and
(b)
may include transitional provision and savings.
(4)
The Treasury may by order make any incidental, supplemental, consequential,
transitional or saving provision in consequence of Schedule 37.
(5)
An order under subsection (4) may—
40
(a)
make different provision for different purposes, and
(b)
make provision amending, repealing or revoking any provision made
by or under an Act (whenever passed or made).

Finance (No. 4) Bill
Part 9 — Miscellaneous matters
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(6)
An order under this section is to be made by statutory instrument.
(7)
A statutory instrument containing an order under subsection (4) is subject to
annulment in pursuance of a resolution of the House of Commons.
222
Information powers
(1)
Schedule 36 to FA 2008 (information and inspection powers) is amended as
5
follows.
(2)
After paragraph 5 insert—
“Power to obtain information about persons whose identity can be ascertained
5A    (1)
An authorised officer of Revenue and Customs may by notice in
writing require a person to provide relevant information about
10
another person (“the taxpayer”) if conditions A to D are met.
      (2)
Condition A is that the information is reasonably required by the
officer for the purpose of checking the tax position of the taxpayer.
      (3)
Condition B is that—
(a)
the taxpayer’s identity is not known to the officer, but
15
(b)
the officer holds information from which the taxpayer’s
identity can be ascertained.
      (4)
Condition C is that the officer has reason to believe that—
(a)
the person will be able to ascertain the taxpayer’s identity
from the information held by the officer, and
20
(b)
the person obtained relevant information about the taxpayer
in the course of carrying on a business.
      (5)
Condition D is that the taxpayer’s identity cannot readily be
ascertained by other means from the information held by the officer.
      (6)
“Relevant information” means all or any of the following—
25
(a)
name,
(b)
last known address, and
(c)
date of birth (in the case of an individual).
      (7)
This paragraph applies for the purpose of checking the tax position
of a class of persons as for the purpose of checking the tax position of
30
a single person (and references to “the taxpayer” are to be read
accordingly).”
(3)
In paragraph 6 (notices), in sub-paragraph (1), for “or 5” substitute “, 5 or 5A”.
(4)
In paragraph 31 (right to appeal against notice given under paragraph 5), after
“paragraph 5” insert “or 5A”.
35
(5)
Accordingly, in the heading immediately before paragraph 31, at the end insert
“or 5A”.
(6)
In section 18D of TMA 1970 (savings income: content of regulations under
section 18B), in subsection (1), for “sections 17 and 18” substitute “paragraph 1
of Schedule 23 to the Finance Act 2011 (data-gathering powers)”.
40

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Part 9 — Miscellaneous matters
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(7)
The amendments made by subsections (1) to (5) apply for the purpose of
checking the tax position of a taxpayer as regards periods or tax liabilities
whenever arising (whether before, on or after the day on which this Act is
passed).
(8)
The amendment made by subsection (6) is treated as having come into force on
5
1 April 2012.
223
PAYE regulations: information
(1)
Section 684 of ITEPA 2003 (PAYE regulations) is amended as follows.
(2)
In the list in subsection (2)—
(a)
after item 4 insert—
10
“4ZA
Provision—
(a)
for authorising or requiring a person who provides
with respect to payments of or on account of PAYE
income a service that is specified or of a specified
description (“a relevant payment service”) to supply
15
to Her Majesty’s Revenue and Customs information
about payments with respect to which the service is
provided, or any information the Commissioners
may request about features of the service provided or
to be provided with respect to particular payments;
20
(b)
for conferring power on the Commissioners to specify
by directions circumstances in which provision made
by virtue of paragraph (a) or subsection (4ZB) is not to
apply in relation to a payment;
(c)
for securing that a supply of information that is
25
authorised by regulations under paragraph (a) is not
treated as breaching any obligation of confidence
owed in respect of the information by the person
supplying it;
(d)
for prohibiting or restricting the disclosure, otherwise
30
than to Her Majesty’s Revenue and Customs, of
information by a person to whom it was supplied
pursuant to a requirement imposed by virtue of
subsection (4ZB);
(e)
for requiring a person who provides, or is to provide,
35
a relevant payment service to take steps (including
any steps that may be specified, or further specified,
in accordance with item 8A(b)) for facilitating the
meeting by persons making payments of obligations
imposed by virtue of subsection (4ZB).”, and
40
(b)
after item 8 insert—
“8A
Provision requiring compliance with any directions the
Commissioners may give—
(a)
about the form and manner in which any information
is to be provided under the regulations;
45
(b)
specifying, or further specifying, steps for the
purposes of item 4ZA(e);
(c)
specifying information that a person making
payments of or on account of PAYE income must

Finance (No. 4) Bill
Part 10 — Final provisions
129

provide about the method by which the payments are
made.”
(3)
After subsection (3B) insert—
“(3C)
References in items 4ZA and 8A of the above list to directions include
directions making different provision for different cases.”
5
(4)
After subsection (4) insert—
“(4ZA)
Item 8A in the above list does not prejudice the power of the
Commissioners under subsection (1) to make provision in PAYE
regulations about the matters mentioned in that item.
(4ZB)
The persons to whom PAYE information regulations may require
10
information to be supplied include, in the case of information about a
payment, a person who provides, or is to provide, with respect to the
payment a service such as is mentioned in item 4ZA(a) in the above list.
(4ZC)
In subsection (4ZB) “PAYE information regulations” means PAYE
regulations that require information to be supplied for any purpose
15
authorised by subsections (1) and (2).”
High value residential property or dwellings
224
New tax on ownership of high-value residential properties or dwellings
The Commissioners for Her Majesty’s Revenue and Customs may incur
expenditure in preparing for the introduction of a new tax to be charged in
20
respect of high-value residential properties or dwellings owned otherwise than
by individuals.
Miscellaneous reliefs etc
225
Repeals of miscellaneous reliefs etc
Schedule 38 contains repeals of miscellaneous reliefs etc.
25
Part 10
Final provisions
226
Interpretation
(1)
In this Act—
“ALDA 1979” means the Alcoholic Liquor Duties Act 1979,
30
“BGDA 1981” means the Betting and Gaming Duties Act 1981,
“CAA 2001” means the Capital Allowances Act 2001,
“CEMA 1979” means the Customs and Excise Management Act 1979,
“CRCA 2005” means the Commissioners for Revenue and Customs Act
2005,
35
“CTA 2009” means the Corporation Tax Act 2009,
“CTA 2010” means the Corporation Tax Act 2010,
“F(No.3)A 2010” means the Finance (No. 3) Act 2010,
“HODA 1979” means the Hydrocarbon Oil Duties Act 1979,