Finance (No. 4) Bill

Session 2010 - 12
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Finance (No. 4) Bill

Finance (No. 4) Bill
Schedule 37 — Tax agents: dishonest conduct
Part 6 — Miscellaneous provision and interpretation
650

(d)
construction industry deductions,
(e)
VAT,
(f)
insurance premium tax,
(g)
inheritance tax,
(h)
stamp duty land tax,
5
(i)
stamp duty reserve tax,
(j)
petroleum revenue tax,
(k)
aggregates levy,
(l)
climate change levy,
(m)
landfill tax, and
10
(n)
any duty of excise other than vehicle excise duty.
      (2)
“Construction industry deductions” means construction industry
deductions under Chapter 3 of Part 3 of FA 2004.
      (3)
“Corporation tax” includes an amount assessable or chargeable as if it were
corporation tax.
15
      (4)
“VAT” means—
(a)
value added tax charged in accordance with VATA 1994,
(b)
amounts recoverable under paragraph 5(2) of Schedule 11 to that Act
(amounts shown on invoices as VAT), and
(c)
amounts treated as VAT by virtue of regulations under section 54 of
20
that Act (farmers etc).
General interpretation
38
In this Schedule—
“appointed” includes engaged;
“client” (except in paragraph 17)—
25
(a)
has the meaning given in paragraph 2(1), and
(b)
in relation to a particular tax agent, means a client of that tax
agent;
“the Commissioners” means the Commissioners for Her Majesty’s
Revenue and Customs;
30
“conduct notice” has the meaning given in paragraph 4;
“the document-holder” has the meaning given in paragraph 8;
“document” includes a copy of a document (see also section 114 of FA
2008);
“file access notice” has the meaning given in paragraph 8;
35
“HMRC” means Her Majesty’s Revenue and Customs;
“organisation” includes any person or firm carrying on a business;
“specify” includes describe;
“tax period” means a tax year, accounting period or other period in
respect of which tax is charged;
40
“the tribunal” means the First-tier Tribunal or, where determined by or
under the Tribunal Procedure Rules, the Upper Tribunal.
39    (1)
A reference in this Schedule to clients of a tax agent (or to a tax agent’s
clients) is a reference to the persons whom the agent assists with their tax
affairs.
45

Finance (No. 4) Bill
Schedule 37 — Tax agents: dishonest conduct
Part 7 — Consequential provisions
651

      (2)
Sub-paragraph (1) applies even if—
(a)
the agent works for an organisation, and
(b)
it is the organisation that is appointed to give the assistance.
40
A loss of tax revenue is taken for the purposes of this Schedule to be (or to
be capable of being) brought about by dishonest conduct despite the fact that
5
the loss can be recovered or properly accounted for (following discovery of
the conduct or otherwise).
41
A reference in this Schedule to working for an organisation includes being a
partner or member of an organisation.
42
A reference in a provision of this Schedule to an authorised officer is to an
10
officer of Revenue and Customs who is, or is a member of a class of officers
who are, authorised by the Commissioners for the purposes of that
provision.
Relationship with other enactments
43
Nothing in this Schedule limits—
15
(a)
any liability a person may have under any other enactment in respect
of conduct in respect of which a person is liable to a penalty under
this Schedule, or
(b)
any power a person may have under any other enactment to obtain
relevant documents.
20
Part 7
Consequential provisions
TMA 1970
44
TMA 1970 is amended as follows.
45
Omit—
25
(a)
section 20A (power to call for papers of tax accountant),
(b)
section 20B (restrictions on powers under section 20A), and
(c)
section 99 (assisting in preparation of incorrect return etc).
46    (1)
Section 20BB (falsification etc of documents) is amended as follows.
      (2)
In subsection (1)—
30
(a)
for “subsections (2) to (4)” substitute “subsections (2) and (3)”,
(b)
in paragraph (a), omit “a notice under section 20A above or”,
(c)
at the end of that paragraph, omit “or”, and
(d)
omit paragraph (b).
      (3)
In subsection (2)—
35
(a)
in paragraph (a), omit “, the inspector”,
(b)
at the end of that paragraph, insert “or”,
(c)
at the end of paragraph (b), omit “or”, and
(d)
omit paragraph (c).
      (4)
In subsection (3), for the words from “the notice is given” to the end
40
substitute “the order is made, unless before the end of that period an officer

Finance (No. 4) Bill
Schedule 37 — Tax agents: dishonest conduct
Part 7 — Consequential provisions
652

of Revenue and Customs has notified the person in writing that the order
has not been complied with to the officer’s satisfaction”.
      (5)
Omit subsection (4).
47
In section 20D (interpretation of sections 20 to 20CC)—
(a)
in subsection (1), for “sections 20A and 20BA” substitute “section
5
20BA”, and
(b)
omit subsection (2).
48
In section 103 (time limits for penalties)—
(a)
omit subsection (3), and
(b)
in subsection (4), for “neither subsection (1) nor subsection (3) above
10
applies” substitute “subsection (1) does not apply”.
49
In section 103ZA (disapplication of sections 100 to 103)—
(a)
omit “or” at the end of paragraph (e), and
(b)
at the end of paragraph (f) insert “, or
(g)
Schedule 37 to FA 2012 (tax agents: dishonest
15
conduct).”
50
In section 118 (interpretation), in the definition of “tax”, omit the words from
“except that” to the end.
OTA 1975
51
In Schedule 2 to OTA 1975 (management and collection of petroleum
20
revenue tax), in the Table in paragraph 1(1), omit the entry relating to section
99 of TMA 1970.
IHTA 1984
52
In section 247 of IHTA 1984 (provision of incorrect information), omit
subsection (4).
25
Social Security Contributions and Benefits Act 1992
53
In section 16 of the Social Security Contributions and Benefits Act 1992
(applications of Income Tax Acts and destination of Class 4 contributions),
in subsection (1)(c), after “2009” insert “and of Schedule 37 to the Finance Act
2012”.
30
54
In paragraph 7B of Schedule 1 to that Act (collection of contributions other
than through PAYE system), the reference in sub-paragraph (5A) to Part 10
of TMA 1970 includes a reference to this Schedule.
Social Security Contributions and Benefits (Northern Ireland) Act 1992
55
In paragraph 7B of Schedule 1 to the Social Security Contributions and
35
Benefits (Northern Ireland) Act 1992 (collection of contributions other than
through PAYE system), the reference in sub-paragraph (5A) to Part 10 of
TMA 1970 includes a reference to this Schedule.
Social Security Administration Act 1992
56
In section 110ZA of the Social Security Administration Act 1992 (Class 1, 1A,
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Finance (No. 4) Bill
Schedule 37 — Tax agents: dishonest conduct
Part 7 — Consequential provisions
653

1B or 2 contributions: powers to call for documents etc), after subsection (2)
insert—
“(2A)
Part 3 of Schedule 37 to the Finance Act 2012 (power to obtain tax
agent’s files etc) applies in relation to relevant contributions as in
relation to tax and, accordingly—
5
(a)
the cases described in paragraph 7 of that Schedule (case A
and case B) include cases involving conduct or an offence
relating to relevant contributions,
(b)
(whether the case involves conduct or an offence relating to
tax or relevant contributions) the papers and other
10
documents that may be sought under that Part include ones
relating to relevant contributions, and
(c)
the other Parts of that Schedule apply so far as necessary to
give effect to the application of Part 3 by virtue of this
subsection.”
15
Social Security Administration (Northern Ireland) Act 1992
57
In section 104ZA of the Social Security Administration (Northern Ireland)
Act 1992 (Class 1, 1A, 1B or 2 contributions: powers to call for documents
etc), after subsection (2) insert—
“(2A)
Part 3 of Schedule 37 to the Finance Act 2012 (power to obtain tax
20
agent’s files etc) applies in relation to relevant contributions as in
relation to tax and, accordingly—
(a)
the cases described in paragraph 7 of that Schedule (case A
and case B) include cases involving conduct or an offence
relating to relevant contributions,
25
(b)
(whether the case involves conduct or an offence relating to
tax or relevant contributions) the papers and other
documents that may be sought under that Part include ones
relating to relevant contributions, and
(c)
the other Parts of that Schedule apply so far as necessary to
30
give effect to the application of Part 3 by virtue of this
subsection.”
FA 2003
58    (1)
FA 2003 is amended as follows.
      (2)
In section 93 (information powers)—
35
(a)
in subsection (2), omit the entries relating to Parts 3 and 4 of Schedule
13, and
(b)
omit subsections (3) to (6).
      (3)
Omit section 96 (penalty for assisting in preparation of incorrect return etc).
      (4)
In Schedule 13 (stamp duty land tax: information powers)—
40
(a)
omit Parts 3 and 4, and
(b)
for paragraph 53 substitute—
“53   (1)
A person commits an offence if the person intentionally—
(a)
falsifies, conceals, destroys or otherwise disposes
of a relevant document, or
45

Finance (No. 4) Bill
Schedule 38 — Repeal of miscellaneous reliefs etc
Part 1 — Stamp duty and stamp duty land tax
654

(b)
causes or permits the falsification, concealment,
destruction or disposal of a relevant document.
      (2)
A relevant document is a document that the person has
been required by an order under Part 6 of this Schedule to
deliver.
5
      (3)
A person does not commit an offence under this paragraph
if the person acts—
(a)
with the written permission of the tribunal or an
officer of Revenue and Customs, or
(b)
after the document has been delivered.
10
      (4)
A person does not commit an offence under this paragraph
if the person acts after the end of the period of 2 years
beginning with the date on which the order is made, unless
before the end of that period an officer of Revenue and
Customs has notified the person in writing that the order
15
has not been complied with to the officer’s satisfaction.
      (5)
A person guilty of an offence under this paragraph is
liable—
(a)
on summary conviction, to a fine not exceeding the
statutory maximum;
20
(b)
on conviction on indictment, to imprisonment for a
term not exceeding 2 years or a fine or to both.”
Schedule 38
Section 225

Repeal of miscellaneous reliefs etc
Part 1
25
Stamp duty and stamp duty land tax
Nationalisation schemes
1     (1)
Section 52 of FA 1946 (exemption from stamp duty of documents connected
with nationalisation schemes) is repealed.
      (2)
In consequence of the provision made by sub-paragraph (1)—
30
(a)
section 67 of that Act (short title, construction, etc) is repealed,
(b)
in section 41(1) of the Transport Act 1962 (exemptions from stamp
duty), omit the words from “, or in section fifty-two” to “schemes),”,
and
(c)
in section 160(1) of the Transport Act 1968 (stamp duty), omit the
35
words from “or in section 52” to “schemes)”.
Visiting forces and allied headquarters
2
Section 74 of FA 1960 (visiting forces and allied headquarters: stamp duty
exemptions) is repealed.

Finance (No. 4) Bill
Schedule 38 — Repeal of miscellaneous reliefs etc
Part 1 — Stamp duty and stamp duty land tax
655

Shared ownership transactions
3     (1)
The following provisions are repealed—
(a)
section 97 of FA 1980,
(b)
section 108 of FA 1981, and
(c)
section 54 of FA 1987.
5
      (2)
In consequence of the provision made by sub-paragraph (1), omit the
following provisions—
(a)
in Schedule 2 to the Housing (Consequential Provisions) Act 1985,
paragraph 43;
(b)
in FA 1988, section 142(1);
10
(c)
in Schedule 14 to FA 1999, paragraph 6.
Instruments subject to duty of fixed amount
4     (1)
Section 87 of FA 1985 (certificates) is amended as follows.
      (2)
Omit subsection (2) (power to exempt instruments chargeable to stamp duty
of a fixed amount).
15
      (3)
In subsection (5), omit “or Treasury (as the case may be)”.
Acquisitions
5     (1)
The following provisions are repealed—
(a)
section 76 of FA 1986 (rate of stamp duty payable on acquisitions),
and
20
(b)
section 113 of, and Schedule 35 to, FA 2002 (withdrawal of relief for
company acquisitions).
      (2)
In consequence of the provision made by sub-paragraph (1), omit the
following provisions—
(a)
in section 98(5) of TMA 1970, in the Table—
25
(i)
in the first column, the entry relating to paragraph 11 of
Schedule 35 to FA 2002, and
(ii)
in the second column, the entry relating to paragraph 7 of
that Schedule;
(b)
in Schedule 14 to FA 1999, paragraph 15;
30
(c)
in section 127 of FA 2000, subsection (4);
(d)
in FA 2002, section 112;
(e)
in FA 2003—
(i)
section 127, and
(ii)
in Schedule 19, paragraph 6(3);
35
(f)
in Schedule 21 to the Legal Services Act 2007, paragraph 136;
(g)
in Schedule 1 to CTA 2010, paragraphs 196, 372 and 376.
Transfers to registered social landlords
6     (1)
Section 130 of FA 2000 (transfers to registered social landlords etc) is
repealed.
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Finance (No. 4) Bill
Schedule 38 — Repeal of miscellaneous reliefs etc
Part 1 — Stamp duty and stamp duty land tax
656

      (2)
In consequence of the provision made by sub-paragraph (1), in section 131
of that Act (relief for certain instruments executed before 28 July 2000), omit
subsection (1)(b).
Land in disadvantaged areas
7     (1)
Sections 92 to 92B of, and Schedule 30 to, FA 2001 (exemption for land in
5
disadvantaged areas) are repealed.
      (2)
In consequence of the provision made by sub-paragraph (1), omit the
following provisions—
(a)
in FA 2002, section 110;
(b)
in Schedule 9 to FA 2005, paragraphs 2, 3 and 5;
10
(c)
in Schedule 1 to CTA 2010, paragraph 366.
      (3)
Despite the repeal of section 92 of FA 2001, any regulations made under
subsection (4) of that section continue to have effect for the purposes of
section 72DA of the Insolvency Act 1986 (exception from prohibition of
appointment of administrative receiver in respect of urban regeneration
15
projects).
8     (1)
Section 57 of, and Schedule 6 to, FA 2003 (disadvantaged areas relief) are
repealed.
      (2)
In consequence of the provision made by sub-paragraph (1), omit the
following provisions—
20
(a)
in section 360C of CAA 2001, subsection (2)(b) (and the “or” before
it);
(b)
in FA 2003—
(i)
section 112(2),
(ii)
in Schedule 15, paragraph 26, and
25
(iii)
in paragraph 18A of Schedule 17A, sub-paragraph (5)(b) (and
the “or” before it);
(c)
in FA 2004, section 298(5);
(d)
in FA 2005—
(i)
section 96, and
30
(ii)
in Schedule 9, paragraphs 1 and 4;
(e)
in FA 2008—
(i)
section 95(6),
(ii)
in Schedule 30, paragraph 6, and
(iii)
in Schedule 31, paragraphs 4 and 9;
35
(f)
in Schedule 22 to FA 2011, paragraph 4.
      (3)
In Schedule 15 to FA 2003, in paragraph 25(2), for “paragraphs 26 to 28”
substitute “paragraphs 27 and 28”.
Leases granted by registered social landlords
9     (1)
In Part 5 of FA 2003 (stamp duty), the following provisions are repealed—
40
(a)
section 128 (exemption of certain leases granted by registered social
landlords);
(b)
section 129 (relief for certain leases granted before section 128 had
effect);