PART 8 continued

Previous Next

Contents page 1- - - - - - - - - - - - - - - - - - Last page

(a) where the arrangements consist of a series of operations, any transfer of value constituted by one or more of those operations which occur before or at the same time as the current transfer, other than a transfer of value arising by virtue of section 74A, and

(b) where the arrangements consist of a single operation, any transfer of value which arises from that operation, other than a transfer of value arising by virtue of section 74A.

(5) Section 268(3) does not apply to a transfer of value arising by virtue of section 74A.

(6) Where—

(a) a transfer of value has arisen by virtue of section 74A,

(b) in the course of the arrangements the individual acquires an interest in possession in settled property, and

(c) section 5(1B) applies to the interest in possession so that it forms part of the individual’s estate,

this Act has effect as if that transfer of value had never arisen.

(7) In this section “operation” includes an omission.”

(4) In section 201 (liability for tax: settled property), after subsection (4) insert—

“(4A) Where a charge to tax arises—

(a) under or by virtue of section 74A, or

(b) under section 64 or 65 in respect of property which, by virtue of section 48(3D), has ceased to be excluded property,

subsection (1) of this section has effect as if the persons listed in that subsection included the individual mentioned in section 48(3D)(b).”

(5) The amendments made by this section are treated as having come into force on 21 March 2012, and, subject to subsection (6), have effect in relation to arrangements entered into before, or on or after, that day.

(6) In a case where the arrangements were entered into before 21 March 2012—

(a) no transfer of value arises by virtue of section 74A of IHTA 1984, and

(b) if paragraphs (a) to (d) of subsection (3D) of section 48 of that Act were first satisfied before 21 March 2012, that subsection is to be read as if for “from the time paragraphs (a) to (d) are first satisfied” there were substituted “on and after 21 March 2012”.

Bank levy

209 The bank levy

Schedule 33 contains provision about the bank levy.

Stamp duty land tax, stamp duty reserve tax and stamp duty

210 Prevention of avoidance: subsales etc

(1) In section 45 of FA 2003 (contract and conveyance: effect of transfer of rights), after subsection (1) insert—

“(1A) The reference in subsection (1)(b) to an assignment, subsale or other transaction does not include the grant or assignment of an option.”

(2) The amendment made by this section has effect in relation to grants or assignments of options on or after 21 March 2012.

211 Rate in respect of residential property where consideration over £2m

(1) In section 55(2) of FA 2003 (amount of SDLT chargeable), in Table A (bands and percentages for residential property), for the final entry (cases where consideration is more than £1,000,000 to be chargeable at 5%) substitute—

“More than £1,000,000 but not more than £2,000,000 5%
More than £2,000,000 7%”.

(2) The amendment made by this section has effect in relation to any land transaction of which the effective date is on or after 22 March 2012.

(3) But that amendment does not have effect in relation to any transaction—

(a) effected in pursuance of a contract entered into and substantially performed before 22 March 2012, or

(b) effected in pursuance of a contract entered into before that date and not excluded by subsection (4).

(4) A transaction effected in pursuance of a contract entered into before 22 March 2012 is excluded by this subsection if—

(a) there is any variation of the contract, or assignment (or assignation) of rights under the contract, on or after 22 March 2012,

(b) the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or

(c) on or after that date there is an assignment (or assignation), subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.

212 Higher rate for certain transactions

Schedule 34 contains provision about the amount of tax chargeable on certain transactions involving higher threshold interests in dwellings.

213 Disclosure of stamp duty land tax avoidance schemes

In section 308 of FA 2004 (duties of promoter), after subsection (5) insert—

“(6) The Treasury may by regulations provide for this section to apply with modifications in relation to proposals or arrangements that—

(a) enable, or might be expected to enable, a person to obtain an advantage in relation to stamp duty land tax, and

(b) are of a description specified in the regulations.”

214 Health service bodies

(1) In Part 4 of FA 2003 (stamp duty land tax), after section 67 insert—

“67A Acquisitions by certain health service bodies

(1) A land transaction is exempt from charge if the purchaser is any of the following—

(a) the National Health Service Commissioning Board;

(b) a clinical commissioning group established under section 14D of the National Health Service Act 2006;

(c) an NHS foundation trust;

(d) a Local Health Board established under section 11 of the National Health Service (Wales) Act 2006;

(e) a National Health Service trust established under section 18 of that Act;

(f) a Health and Social Services trust established under the Health and Personal Social Services (Northern Ireland) Order 1991.

(2) Any relief under this section must be claimed in a land transaction return or an amendment of such a return.”

(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 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 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 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

(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.

(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 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 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—

Part 9 Miscellaneous matters

International matters

216 Agreement between UK and Switzerland

(1) Schedule 35 contains provision giving effect to—

(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.

(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 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

(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 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 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 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

(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

(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,

(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—

(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 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.

(7) In this section—

Incapacitated persons and minors

220 Removal of special provision for incapacitated persons and minors

(1) In TMA 1970 omit—

(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 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)—

(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 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—

(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.

(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

(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)—

(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—

(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).

(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 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 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

(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

(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—

(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 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”.

(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)”.

(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 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—

“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 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;

(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 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 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, 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

(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;

(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

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.”

(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 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 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 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.

Part 10 Final provisions

226 Interpretation

(1) In this Act—

(2) In this Act—

227 Short title

This Act may be cited as the Finance Act 2012.

SCHEDULES

Section 8

SCHEDULE 1 High income child benefit charge

The high income child benefit charge

1 In Part 10 of ITEPA 2003 (social security benefits), after Chapter 7 insert—

“CHAPTER 8 High income child benefit charge

681B High income child benefit charge

(1) A person (“P”) is liable to a charge to income tax for a tax year if—

(a) P’s adjusted net income for the year exceeds £50,000, and

(b) one or both of conditions A and B are met.

(2) The charge is to be known as a “high income child benefit charge”.

(3) Condition A is that—

(a) P is entitled to an amount in respect of child benefit for a week in the tax year, and

(b) there is no other person who is a partner of P throughout the week and has an adjusted net income for the year which exceeds that of P.

(4) Condition B is that—

(a) a person (“Q”) other than P is entitled to an amount in respect of child benefit for a week in the tax year,

(b) Q is a partner of P throughout the week, and

(c) P has an adjusted net income for the year which exceeds that of Q.

681C The amount of the charge

(1) The amount of the high income child benefit charge to which a person (“P”) is liable for a tax year is the appropriate percentage of the total of—

(a) any amounts in relation to which condition A is met, and

(b) any amounts in relation to which condition B is met.

For conditions A and B, see section 681B.

(2) “The appropriate percentage” is—

(a) 100%, or

(b) if less, the percentage determined by the formula—

Where—

ANI is P’s adjusted net income for the tax year;

L is £50,000;

X is £100.

X is £100.

(3) If—

(a) the total of the amounts mentioned in paragraphs (a) and (b) of subsection (1), or the amount of the charge determined under that subsection, is not a whole number of pounds, or

(b) the percentage determined under subsection (2)(b) is not a whole number,

it is to be rounded down to the nearest whole number.

681D Extension of charge in cases where child not living with claimant

(1) This section applies where—

(a) a person (“R”) is entitled to an amount in respect of child benefit for a child for a week in a tax year by virtue of section 143(1)(b) of SSCBA 1992 or section 139(1)(b) of SSCB(NI)A 1992 (persons contributing to the cost of providing for a child),

(b) neither R, nor any person who is a partner of R throughout that week, is liable for a charge to income tax in respect of that amount under section 681B, and

(c) there is another person (“S”) who, for the purposes of section 143(1)(a) of SSCBA 1992 or section 139(1)(a) of SSCB(NI)A 1992 (persons with whom child is living), is a person who has the child living with him or her in that week.

(2) Section 681B applies as if S were entitled to the amount of child benefit mentioned in subsection (1)(a).

(3) Where there is more than one person to whom subsection (1)(c) applies in relation to an amount of child benefit for a week, subsection (2) applies only to the one with the highest adjusted net income for the tax year.

(4) For the purposes of subsection (1)(a), an amount of child benefit to which R is entitled for a week is to be ignored if—

(a) the period (which includes that week) for which R is entitled to child benefit by virtue of section 143(1)(b) of SSCBA 1992 or section 139(1)(b) of SSCB(NI)A 1992 in respect of the same child does not exceed 52 weeks, and

(b) R is entitled to child benefit in respect of the child for the week immediately before and the week immediately after that period by virtue of section 143(1)(a) of SSCBA 1992 or section 139(1)(a) of SSCB(NI)A 1992.

(5) In this section “child” means—

(a) a child within the meaning of section 142 of SSCBA 1992 or section 138 of SSCB(NI)A 1992, or

(b) a qualifying young person within the meaning of either of those sections.

681E Special cases

(1) The following amounts are to be disregarded for the purposes of this Chapter—

(a) amounts to which a person is entitled but in respect of which an election under section 13A of the Social Security Administration Act 1992 or section 11A of the Social Security Administration (Northern Ireland) Act 1992 (election for payment of child benefit not to be made if high income child benefit charge would be triggered) has effect;

(b) amounts to which a person is entitled by virtue of section 145A of SSCBA 1992 or section 141A of SSCB(NI)A 1992 (entitlement to child benefit after death of child or qualifying young person).

(2) Subsection (3) applies if—

(a) a person (“T”) is entitled to an amount in respect of child benefit for a week in a tax year or is treated as so entitled by virtue of section 681D(2),

(b) two or more other persons are partners of T throughout the week, and

(c) two or more of those persons would, apart from subsection (3), each be liable to a charge under section 681B(1) in relation to that amount.

(3) Only one of those persons is liable, namely the person with the highest adjusted net income for the tax year.

681F Alteration of income limit etc by Treasury order

(1) The Treasury may by order—

(a) substitute another amount for the amount for the time being specified in section 681B(1)(a) and (4)(b) and defined as “L” in section 681C(2), or

(b) substitute another amount for the amount defined as “X” in section 681C(2).

(2) An order under this section has effect for tax years beginning after the order is made.

(3) A statutory instrument containing an order under this section which increases any person’s liability to income tax may not be made unless a draft of it has been laid before and approved by a resolution of the House of Commons.

681G Meaning of “partner”

(1) For the purposes of this Chapter a person is a “partner” of another person at any time if any of conditions A to D is met at that time.

(2) Condition A is that the persons are a man and a woman who are married to each other and are neither—

(a) separated under a court order, nor

(b) separated in circumstances in which the separation is likely to be permanent.

(3) Condition B is that the persons are a man and a woman who are not married to each other but are living together as husband and wife.

(4) Condition C is that the persons are two men, or two women, who are civil partners of each other and are neither—

(a) separated under a court order, nor

(b) separated in circumstances in which the separation is likely to be permanent.

(5) Condition D is that the persons are two men, or two women, who are not civil partners of each other but are living together as if they were civil partners.

681H Other interpretation provisions

(1) This section applies for the purposes of this Chapter.

(2) “Adjusted net income” of a person for a tax year means the person’s adjusted net income for that tax year as determined under section 58 of ITA 2007.

(3) “Week” means a period of 7 days beginning with a Monday; and a week is in a tax year if (and only if) the Monday with which it begins is in the tax year.”

Consequential amendments

2 In section 7 of TMA 1970 (notice of liability to income tax and capital gains tax), in subsection (3), for the words from “his total income” to the end substitute “—

(a) the person’s total income consists of income from sources falling within subsections (4) to (7) below,

(b) the person has no chargeable gains, and

(c) the person is not liable to a high income child benefit charge.”

3 After section 13 of the Social Security Administration Act 1992 insert—

“13A Election not to receive child benefit

(1) A person (“P”) who is entitled to child benefit in respect of one or more children may elect for all payments of the benefit to which P is entitled not to be made.

(2) An election may be made only if P reasonably expects that, in the absence of the election, P or another person would be liable to a high income child benefit charge in respect of the payments to which the election relates made for weeks in the first tax year.

(3) An election has effect in relation to payments made for weeks beginning after the election is made.

(4) But where entitlement to child benefit is backdated, an election may have effect in relation to payments for weeks beginning in the period of three months ending immediately before the claim for the benefit was made.

(5) An election may be revoked.

(6) A revocation has effect in relation to payments made for weeks beginning after the revocation is made.

(7) But if—

(a) P makes an election which results in all payments, in respect of child benefit, to which P is entitled for one or more weeks in a tax year not being paid, and

(b) had no election been made, neither P nor any other person would have been liable to a high income child benefit charge in relation to the payments,

P may, no later than two years after the end of the tax year, revoke the election so far as it relates to the payments.

(8) Subsections (2) to (7) are subject to directions under subsection (9).

(9) The Commissioners for Her Majesty’s Revenue and Customs may give directions as to—

(a) the form of elections and revocations under this section, the manner in which they are to be made and the time at which they are to be treated as made, and

(b) the circumstances in which, if child benefit is not being paid to a person at the full rate or the Commissioners are satisfied that there are doubts as to a person’s entitlement to child benefit for a child, an election or revocation is not to have effect or its effect is to be postponed.

(10) For the purposes of this section—

4 After section 11 of the Social Security Administration (Northern Ireland) Act 1992 insert—

“11A Election not to receive child benefit

(1) A person (“P”) who is entitled to child benefit in respect of one or more children may elect for all payments of the benefit to which P is entitled not to be made.

(2) An election may be made only if P reasonably expects that, in the absence of the election, P or another person would be liable to a high income child benefit charge in respect of the payments to which the election relates made for weeks in the first tax year.

(3) An election has effect in relation to payments made for weeks beginning after the election is made.

(4) But where entitlement to child benefit is backdated, an election may have effect in relation to payments for weeks beginning in the period of three months ending immediately before the claim for the benefit was made.

(5) An election may be revoked.

(6) A revocation has effect in relation to payments made for weeks beginning after the revocation is made.

(7) But if—

(a) P makes an election which results in all payments, in respect of child benefit, to which P is entitled for one or more weeks in a tax year not being paid, and

(b) had no election been made, neither P nor any other person would have been liable to a high income child benefit charge in relation to the payments,

P may, no later than two years after the end of the tax year, revoke the election so far as it relates to the payments.

(8) Subsections (2) to (7) are subject to directions under subsection (9).

(9) The Commissioners for Her Majesty’s Revenue and Customs may give directions as to—

(a) the form of elections and revocations under this section, the manner in which they are to be made and the time at which they are to be treated as made, and

(b) the circumstances in which, if child benefit is not being paid to a person at the full rate or the Commissioners are satisfied that there are doubts as to a person’s entitlement to child benefit for a child, an election or revocation is not to have effect or its effect is to be postponed.

(10) For the purposes of this section—

5 (1) ITEPA 2003 is amended as follows.

(2) In section 1 (overview of contents of Act)—

(a) in subsection (1)(c), after “see” insert “Chapters 1 to 7 of”, and

(b) in subsection (3), after paragraph (a) insert—

“(aa) makes provision for the high income child benefit charge (see Chapter 8 of Part 10),”.

(3) In section 655 (structure of Part 10), in subsection (1), at the end insert—

“Chapter 8 makes provision for the high income child benefit charge.”

(4) In section 684 (PAYE regulations), in subsection (2), after Item 2 insert—

(5) In section 685 (tax tables), in subsection (2)(b), after “2” insert “, 2ZA”.

(6) In section 717 (orders and regulations made by Treasury or Commissioners), in subsection (4), after “companies)” insert “or to which section 681F(3) (variation of income limit etc for high income child benefit charge: orders increasing liability to tax) applies”.

Previous Next

Contents page 1- - - - - - - - - - - - - - - - - - Last page