(4) In subsection (4) (power to detain ship pending payment of deposit against fine
or condemnation proceedings)—

(a) for the words from the beginning to “section, the” substitute “The”,

(b) for “£50 or, as the case may be, £500” substitute “£10,000”, and

(c) 5omit “their final decision or, as the case may be,”.

(5) In paragraph (a) of subsection (6) (definition of “responsible officer)—

(a) after “means” insert “a person who is, or is acting as,”,

(b) for “or an engineer” substitute “, an engineer or the bosun”, and

(c) omit the words from “and, in the case of a ship manned” to the end.

(6) 10After that subsection insert—

“(7) If the Treasury consider that there has been a change in the value of
money since the Finance Act 2013 was passed or, as the case may be,
since the last occasion when the power conferred by this subsection
was exercised, they may by order substitute for the sum for the time
15being specified in subsections (3) and (4) such other sum as appears to
them to be justified by the change.

(8) An order under subsection (7) may not vary the penalty for any
conduct occurring before the coming into force of the order.

(9) An order under subsection (7) must be made by statutory instrument.

(10) 20A statutory instrument containing an order under subsection (7) is
subject to annulment in pursuance of a resolution of either House of
Parliament.”

225 Data-gathering from merchant acquirers etc

(1) In Part 2 of Schedule 23 to FA 2011 (data-gathering powers: relevant data-
25holders), after paragraph 13 insert—

“Merchant acquirers etc

13A (1) A person who has a contractual obligation to make payments to
retailers in settlement of payment card transactions is a relevant
data-holder.

(2) 30In this paragraph—

• “payment card” includes a credit card, a charge card and a debit
  card;

• “payment card transaction” means any transaction in which a
  payment card is accepted as payment;

• 35“retailer” means a person who accepts a payment card as
  payment for any transaction.

(3) In this paragraph any reference to a payment card being accepted as
payment includes a reference to any account number or other
indicators associated with a payment card being accepted as
40payment.”

(2) This section applies in relation to relevant data with a bearing on any period
(whether before, on or after the day on which this Act is passed).

Payment

226 Corporation tax: deferral of payment of exit charge

Schedule 47 contains provision for, and in connection with, deferring the
payment by a company of certain corporation tax in circumstances where
5income, profits or gains arise by virtue of section 25, 185 or 187(4) of TCGA
1992 or section 162, 333, 334, 609, 610, 859 or 862 of CTA 2009.

227 Penalties: late filing, late payment and errors

Schedule 48 contains provision for, and in connection with, penalties for late
filing, late payment and errors.

228 10Overpayment relief: generally prevailing practice exclusion and EU law

(1) In Schedule 1AB to TMA 1970 (recovery of overpaid tax etc), in paragraph 2
(cases in which Commissioners not liable to give effect to claim), after sub-
paragraph (9) insert—

“(9A) Cases G and H do not apply where the amount paid, or liable to be
15paid, is tax which has been charged contrary to EU law.

(9B) For the purposes of sub-paragraph (9A), an amount of tax is charged
contrary to EU law if, in the circumstances in question, the charge to
tax is contrary to—

(a) the provisions relating to the free movement of goods,
20persons, services and capital in Titles II and IV of Part 3 of the
Treaty on the Functioning of the European Union, or

(b) the provisions of any subsequent treaty replacing the
provisions mentioned in paragraph (a).”

(2) In Schedule 2 to OTA 1975 (management and collection of petroleum revenue
25tax), in paragraph 13B (claim for relief for overpaid tax etc: cases in which
HMRC not liable to give effect to a claim), after sub-paragraph (8) insert—

“(9) Case G does not apply where the amount paid, or liable to be paid, is
tax which has been charged contrary to EU law.

(10) For the purposes of sub-paragraph (9), an amount of tax is charged
30contrary to EU law if, in the circumstances in question, the charge to
tax is contrary to—

(a) the provisions relating to the free movement of goods,
persons, services and capital in Titles II and IV of Part 3 of the
Treaty on the Functioning of the European Union, or

(b) 35the provisions of any subsequent treaty replacing the
provisions mentioned in paragraph (a).”

(3) In Part 6 of Schedule 18 to FA 1998 (overpaid tax, excessive assessments or
repayments etc), in paragraph 51A (cases in which Commissioners not liable to
give effect to a claim), after sub-paragraph (8) insert—

“(9) 40Case G does not apply where the amount paid, or liable to be paid, is
tax which has been charged contrary to EU law.

(10) For the purposes of sub-paragraph (9), an amount of tax is charged
contrary to EU law if, in the circumstances in question, the charge to
tax is contrary to—

(a) the provisions relating to the free movement of goods,
5persons, services and capital in Titles II and IV of Part 3 of the
Treaty on the Functioning of the European Union, or

(b) the provisions of any subsequent treaty replacing the
provisions mentioned in paragraph (a).”

(4) In Part 6 of Schedule 10 to FA 2003 (relief in case of overpaid tax or excessive
10assessment), in paragraph 34A (cases in which Commissioners not liable to
give effect to a claim), after sub-paragraph (8) insert—

“(9) Case G does not apply where the amount paid, or liable to be paid, is
tax which has been charged contrary to EU law.

(10) For the purposes of sub-paragraph (9), an amount of tax is charged
15contrary to EU law if, in the circumstances in question, the charge to
tax is contrary to—

(a) the provisions relating to the free movement of goods,
persons, services and capital in Titles II and IV of Part 3 of the
Treaty on the Functioning of the European Union, or

(b) 20the provisions of any subsequent treaty replacing the
provisions mentioned in paragraph (a).”

(5) The amendments made by this section have effect in relation to any claim (in
respect of overpaid tax, excessive assessment etc) made after the end of the six
month period beginning with the day on which this Act is passed.

229 25Overpayment relief: time limit for claims

(1) In Schedule 1AB to TMA 1970 (recovery of overpaid tax etc), in paragraph 3
(making a claim), in sub-paragraph (3) after “the relevant tax year is” insert “—

(a) where the amount liable to be paid is excessive by reason of
a mistake in a return or returns under section 8, 8A or 12AA,
30the tax year to which the return (or, if more than one, the first
return) relates, and

(b) otherwise,”.

(2) In Schedule 2 to OTA 1975, in paragraph 13C (claim for relief for overpaid tax
etc: making a claim), in sub-paragraph (3) after “the relevant chargeable period
35is” insert “—

(a) where the amount liable to be paid is excessive by reason of
a mistake in a return or returns under paragraph 2 or 5, the
chargeable period to which the return (or, if more than one,
the first return) relates, and

(b) 40otherwise,”.

(3) In Part 6 of Schedule 18 to FA 1998 (overpaid tax, excessive assessments or
repayments, etc), in paragraph 51B (making a claim), in sub-paragraph (3),
after “the relevant accounting period is” insert “—

(a) where the amount liable to be paid is excessive by reason of
45a mistake in a company tax return or returns, the accounting
period to which the return (or, if more than one, the first
return) relates, and

(b) otherwise,”.

(4) The amendments made by this section have effect in relation to any claim (in
respect of overpaid tax, excessive assessment etc) made after the end of the six
month period beginning with the day on which this Act is passed.

5Administration

230 Self assessment: withdrawal of notice to file etc

Schedule 49 contains provision for, and in connection with, withdrawing a
notice under section 8, 8A or 12AA of TMA 1970 and cancelling liability to a
penalty under Schedule 55 to FA 2009.

10Part 7 Final provisions

231 Interpretation

(1) In this Act—

• “ALDA 1979” means the Alcoholic Liquor Duties Act 1979,

• 15“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,

• 20“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,

• “ICTA” means the Income and Corporation Taxes Act 1988,

• 25“IHTA 1984” means the Inheritance Tax Act 1984,

• “ITA 2007” means the Income Tax Act 2007,

• “ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003,

• “ITTOIA 2005” means the Income Tax (Trading and Other Income) Act
  2005,

• 30“OTA 1975” means the Oil Taxation Act 1975,

• “TCGA 1992” means the Taxation of Chargeable Gains Act 1992,

• “TIOPA 2010” means the Taxation (International and Other Provisions)
  Act 2010,

• “TMA 1970” means the Taxes Management Act 1970,

• 35“TPDA 1979” means the Tobacco Products Duty Act 1979,

• “VATA 1994” means the Value Added Tax Act 1994, and

• “VERA 1994” means the Vehicle Excise and Registration Act 1994.

(2) In this Act—

• “FA”, followed by a year, means the Finance Act of that year;

• 40“F(No.2)A”, followed by a year, means the Finance (No. 2) Act of that
  year.

232 Short title

This Act may be cited as the Finance Act 2013.

SCHEDULES

Section 7

SCHEDULE 1 Annual investment allowance: periods straddling 1 January 2013 or 1 January
2015

5Chargeable periods which straddle 1 January 2013

1 (1) This paragraph applies in relation to a chargeable period which begins
before 1 January 2013 and ends on or after that date (“the first straddling
period”).

(2) The maximum allowance under section 51A of CAA 2001 for the first
10straddling period is the sum of each maximum allowance that would be
found if—

(a) so much (if any) of the first straddling period as falls before the
relevant date,

(b) so much of the first straddling period as falls on or after the relevant
15date but before 1 January 2013, and

(c) so much of the first straddling period as falls on or after 1 January
2013,

were each treated as separate chargeable periods.

(3) But this is subject to paragraphs 2 and 3.

(4) 20In this Schedule “the relevant date” means—

(a) for the purposes of corporation tax, 1 April 2012;

(b) for the purposes of income tax, 6 April 2012.

Straddling period beginning before the relevant date

2 (1) This paragraph applies where the first straddling period begins before the
25relevant date.

(2) So far as concerns expenditure incurred before the relevant date, the
maximum allowance under section 51A of CAA 2001 for the first straddling
period is what would have been the maximum allowance for that period if
the amendment made by section 7(1) had not been made.

(3) 30So far as concerns expenditure incurred on or after the relevant date but
before 1 January 2013, the maximum allowance under section 51A of CAA
2001 for the first straddling period is—

(4) In sub-paragraph (3)—

(a) “A” means the amount that would have been the maximum
allowance for the period beginning on the relevant date and ending
at the end of the first straddling period if—

(i) that period had been a separate chargeable period, and

(ii) 5the amendment made by section 7(1) had not been made;

(b) “B” means the amount (if any) by which—

(i) the AIA expenditure incurred in the period mentioned in
paragraph 1(2)(a) in respect of which a claim for an annual
investment allowance is made, exceeds

(ii) 10the maximum allowance under section 51A of CAA 2001 for
that period if it were treated as a separate chargeable period.

(5) So far as concerns expenditure incurred on or after 1 January 2013, the
maximum allowance under section 51A of CAA 2001 for the first straddling
period is the sum of each maximum allowance that would be found if the
15period mentioned in paragraph 1(2)(b) and the period mentioned in
paragraph 1(2)(c) were each treated as separate chargeable periods.

First straddling period beginning on or after the relevant date

3 (1) This paragraph applies where no part of the first straddling period falls
within paragraph 1(2)(a).

(2) 20So far as concerns expenditure incurred before 1 January 2013, the maximum
allowance under section 51A of CAA 2001 for the first straddling period is
to be calculated as if the amendment made by section 7(1) had not been
made.

Chargeable periods which straddle 1 January 2015

4 (1) 25This paragraph applies in relation to a chargeable period (“the second
straddling period”) which begins before 1 January 2015 and ends on or after
that date.

(2) The maximum allowance under section 51A of CAA 2001 for the second
straddling period is the sum of each maximum allowance that would be
30found if—

(a) the period beginning with the first day of the chargeable period and
ending with the day before 1 January 2015, and

(b) the period beginning with 1 January 2015 and ending with the last
day of the chargeable period,

35were treated as separate chargeable periods.

(3) But, so far as concerns expenditure incurred on or after 1 January 2015, the
maximum allowance under section 51A of CAA 2001 for the second
straddling period is the maximum allowance, calculated in accordance with
sub-paragraph (2), for the period mentioned in paragraph (b) of that sub-
40paragraph.

Operation of annual investment allowance where restrictions apply

5 (1) Paragraphs 1 to 4 also apply for the purpose of determining the maximum
allowance under section 51K of CAA 2001 (operation of annual investment
allowance where restrictions apply) in a case where one or more chargeable

periods in which the relevant AIA qualifying expenditure is incurred are
chargeable periods within paragraph 1(1) or 4(1).

(2) There is to be taken into account for those purposes only chargeable periods
of one year or less (whether or not they are chargeable periods within
5paragraph 1(1) or 4(1)), and, if there is more than one such period, only that
period which gives rise to the greatest maximum allowance.

(3) For the purposes of sub-paragraph (2) any chargeable period which—

(a) is longer than a year, and

(b) ends in the tax year 2012-13, 2013-14, 2014-15, 2015-16 or 2016-17,

10is to be treated as being a chargeable period of one year ending at the same
time as it actually ends.

(4) Section 11(11) of FA 2011 is repealed.

(5) That repeal has effect in relation to cases where one or more chargeable
periods in which the relevant AIA qualifying expenditure is incurred are
15chargeable periods within paragraph 1(1).

(6) Nothing in this paragraph affects the operation of sections 51M and 51N of
CAA 2001.

Section 14

SCHEDULE 2 Tax advantaged employee share schemes

20Part 1 Retirement of participants

Introduction

1 Part 7 of ITEPA 2003 (employment income: income and exemptions relating
to securities) is amended as follows.

25Share incentive plans

2 In section 498 (no charge on shares ceasing to be subject to plan in certain
circumstances) in subsection (2)(e) omit the words from “on” to “2)”.

3 In Part 4 of Schedule 2 (types of shares that may be awarded) in paragraph
32 (provision for forfeiture) in sub-paragraph (2)(e) omit the words from
30“on” to “98)”.

4 Part 11 of Schedule 2 (supplementary provisions) is amended as follows.

5 Omit paragraph 98 (meaning of “specified retirement age”).

6 In paragraph 100 (index of defined expressions) omit the entry for “the
specified retirement age”.

SAYE option schemes

7 Part 6 of Schedule 3 (requirements etc relating to share options) is amended
as follows.

8 In paragraph 27 (introduction) in sub-paragraph (1)—

(a) 5omit the entry for paragraph 31,

(b) after the entry for paragraph 32 insert “and”, and

(c) omit the entry for paragraph 33 and the “and” after it.

9 In paragraph 30 (time for exercising options) in sub-paragraph (2)(a)—

(a) for “32 to” substitute “32,”, and

(b) 10omit “reaching the specified age without retiring,”.

10 Omit paragraph 31 (requirement to have a “specified age”).

11 Omit paragraph 33 (exercise of options: reaching specified age without
retiring).

12 In paragraph 34 (exercise of options: scheme-related employment ends) in
15sub-paragraph (2)(b) omit the words from “on” to “employment”.

13 In Part 9 of Schedule 3 (supplementary provisions) in paragraph 49 (index
of defined expressions) omit the entry for “specified age”.

CSOP schemes

14 In section 524 (no charge in respect of exercise of option) in subsection (2C)
20omit the definition of “retirement” and the “and” before it.

15 In Part 8 of Schedule 4 (supplementary provisions) omit paragraph 35A
(retirement age).

Transitional provision

16 The amendment made by paragraph 11 above has no effect in relation to
25options granted before the day on which this Act is passed; and the effect of
the amendments made by paragraphs 8 to 10 and 13 above is limited
accordingly.

17 (1) A SIP, SAYE option scheme or CSOP scheme approved before the day on
which this Act is passed has effect with any modifications needed to reflect
30the amendments made by this Part of this Schedule.

(2) In relation to any shares awarded under a SIP before that day which are
subject to provision for forfeiture, that provision has effect with any
modifications needed to reflect the amendment made by paragraph 3 above.

(3) Because of paragraphs 47 and 57 below, that amendment is not relevant to
35shares awarded under a SIP on or after that day.

Part 2 “Good leavers” (other than retirees)

Introduction

18 Part 7 of ITEPA 2003 (employment income: income and exemptions relating
5to securities) is amended as follows.

Share incentive plans

19 In section 498 (no charge on shares ceasing to be subject to plan in certain
circumstances) after subsection (2) insert—

“(3) A participant is not liable to income tax on shares (“the relevant
10shares”) in a company (“the relevant company”) being withdrawn
from the plan if—

(a) the withdrawal of the relevant shares from the plan relates
to—

(i) a transaction resulting from a compromise,
15arrangement or scheme falling within subsection (9),

(ii) an offer forming part of a general offer falling within
subsection (10), or

(iii) the application of sections 979 to 982 or 983 to 985 of
the Companies Act 2006 in the case of a takeover offer
20(as defined in section 974 of that Act) falling within
subsection (12), and

(b) as a result of, as the case may be—

(i) the transaction,

(ii) the offer, or

(iii) 25the application of sections 979 to 982 or 983 to 985 of
the Companies Act 2006,

the participant receives cash (and no other assets) in
exchange for the relevant shares.

(4) For the purposes of subsection (3)(b) it does not matter if the
30participant receives other assets in exchange for shares other than the
relevant shares.

(5) Subsection (3) does not apply to the relevant shares (or to a
proportion of them) if in connection with, as the case may be—

(a) the compromise, arrangement or scheme,

(b) 35the general offer, or

(c) the takeover offer,

a course of action was open to the participant which, had it been
followed, would have resulted in other assets being received in
exchange for the relevant shares (or the proportion of them) instead
40of cash.

(6) Subsection (3) does not apply to the relevant shares (or to a
proportion of them) if it is reasonable to suppose that the relevant
shares (or the proportion of them) would not have been awarded to
the participant—

(a) 45had, as the case may be—