Session 2012 - 13
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Other Bills before Parliament

Finance Bill


Finance 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The following provisions are repealed—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 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

 
 

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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—

 
 

Finance Bill
Part 9 — Miscellaneous matters

126

 

(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 Bill
Part 9 — Miscellaneous matters

127

 

(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

 
 

Finance Bill
Part 9 — Miscellaneous matters

128

 

(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 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,

 
 

 
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Revised 9 May 2012