Finance Bill

House of Commons

Session 2013 - 14
Internet Publications
Other Bills before Parliament

Finance Bill

Finance Bill
Part 6 — Other provisions
131

(a)
a person who is a promoter in relation to notifiable
arrangements has provided HMRC with information in relation
to a person (“the client”) under section 313ZA(3) (duty to
provide client details), and
(b)
HMRC suspect that a person other than the client is or is likely
5
to be a party to the arrangements.
(2)
HMRC may by written notice require the promoter to provide
prescribed information in relation to any person other than the client
who the promoter might reasonably be expected to know is or is likely
to be a party to the arrangements.
10
(3)
The promoter must comply with a requirement under or by virtue of
subsection (2) within—
(a)
the prescribed period, or
(b)
such longer period as HMRC may direct.”
(4)
In section 98C(2) of TMA 1970 (notification under Part 7 of FA 2004)—
15
(a)
after paragraph (da) insert—
“(daa)
section 312B (duty of client to provide information to
promoter),”, and
(b)
after paragraph (db) insert—
“(dc)
section 313ZB (enquiry following disclosure of client
20
details),”.
Powers
221
Powers under Proceeds of Crime Act 2002
Schedule 46 makes provision for, and in connection with, conferring powers
under Chapter 3 of Part 5 and Chapters 2 and 3 of Part 8 of the Proceeds of
25
Crime Act 2002 on officers of Revenue and Customs.
222
Definition of “goods” for certain customs purposes
In section 1(1) of CEMA 1979 (interpretation), in the definition of “goods”, for
“baggage” substitute “containers”.
223
Power to detain goods
30
(1)
Section 139 of CEMA 1979 (provisions as to detention, seizure and
condemnation of goods etc) is amended as follows.
(2)
After subsection (1) insert—
“(1A)
A person mentioned in subsection (1) who reasonably suspects that any
thing may be liable to forfeiture under the customs and excise Acts may
35
detain that thing.
(1B)
References in this section and Schedule 2A to a thing detained as liable
to forfeiture under the customs and excise Acts include a thing
detained under subsection (1A).”
(3)
In subsection (2), for the words from “either” to the end substitute “deliver that
40
thing to an officer”.

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(4)
In subsection (4), for “the Commissioners at the nearest office of customs and
excise” substitute “an officer”.
(5)
In subsection (5), for “Schedule 3” substitute “Schedules 2A and 3”.
(6)
After that subsection insert—
“(5A)
Schedule 2A contains supplementary provisions relating to the
5
detention of things as liable to forfeiture under the customs and excise
Acts.”
(7)
After Schedule 2 to that Act (composite goods: supplementary provisions as to
excise duties and drawbacks) insert—
“Schedule 2A
10
Section 139(5A)

Supplementary provisions relating to the detention of things as liable
to forfeiture
Interpretation
1
In this Schedule, references (however expressed) to a thing being
detained are references to a thing being detained as liable to
15
forfeiture under the customs and excise Acts.
Period of detention
2     (1)
This paragraph applies where a thing is detained.
      (2)
The thing may be detained for 30 days beginning with the day on
which the thing is first detained.
20
      (3)
The thing is deemed to be seized as liable to forfeiture under the
customs and excise Acts if its detention ceases to be authorised under
this paragraph.
Notice of detention
3     (1)
The Commissioners must take reasonable steps to give written notice
25
of the detention of any thing, and of the grounds for the detention, to
any person who to their knowledge was, at the time of the detention,
the owner or one of the owners of the thing.
      (2)
But notice need not be given under sub-paragraph (1) if the detention
occurred in the presence of—
30
(a)
the person whose offence or suspected offence occasioned the
detention,
(b)
the owner or any of the owners of the thing detained or any
servant or agent of such an owner, or
(c)
in the case of any thing detained on a ship or aircraft, the
35
master or commander.
Unauthorised removal or disposal: penalties etc
4     (1)
This paragraph applies where a thing is detained and, with the
agreement of a person within sub-paragraph (2) (“the responsible
person”), the thing remains at the place where it is first detained
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(rather than being removed and detained elsewhere).

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      (2)
A person is within this sub-paragraph if the person is—
(a)
the owner or any of the owners of the thing at the time it was
detained or any servant or agent of such an owner, or
(b)
a person whom the person who detains the thing reasonably
believes to be a person within paragraph (a).
5
      (3)
If the responsible person fails to prevent the unauthorised removal
or disposal of the thing from the place where it is detained, that
failure attracts a penalty under section 9 of the Finance Act 1994 (civil
penalties).
      (4)
The removal or disposal of the thing is unauthorised unless it is done
10
with the permission of a proper officer of Revenue and Customs.
      (5)
Where any duty of excise is payable in respect of the thing—
(a)
the penalty is to be calculated by reference to the amount of
that duty (whether it has been paid or not), and
(b)
section 9 of the Finance Act 1994 has effect as if in subsection
15
(2)(a) the words “5 per cent of” were omitted.
      (6)
If no duty of excise is payable in respect of the thing, that section has
effect as if the penalty provided for by subsection (2)(b) of that
section were whichever is the greater of—
(a)
the value of the thing at the time it was first detained, or
20
(b)
£250.
5     (1)
This paragraph applies where—
(a)
a thing is detained at a revenue trader’s premises,
(b)
the thing is liable to forfeiture under the customs and excise
Acts, and
25
(c)
without the permission of a proper officer of Revenue and
Customs, the thing is removed from the trader’s premises, or
otherwise disposed of, by any person.
      (2)
The Commissioners may seize, as liable to forfeiture under the
customs and excise Acts, goods of equivalent value to the thing, from
30
the revenue trader’s stock.
      (3)
For the purposes of this paragraph, a revenue trader’s premises
include any premises used to hold or store anything for the purposes
of the revenue trader’s trade, regardless of who owns or occupies the
premises.”
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(8)
The amendments made by this section have effect in relation to things detained
on or after the day on which this Act is passed.
224
Penalty instead of forfeiture of larger ships
(1)
Section 143 of CEMA 1979 (penalty in lieu of forfeiture of larger ship where
responsible officer is implicated in offence) is amended as follows.
40
(2)
For subsection (1) (Commissioners’ power to impose fine up to £50)
substitute—
“(1)
This section applies where—

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(a)
any ship of 250 or more tons register would, but for section 142,
be liable to forfeiture for, or in connection with, any offence
under the customs and excise Acts, and
(b)
in the opinion of the Commissioners, a responsible officer of the
ship is implicated either by the officer’s own act, or by neglect,
5
in that offence.”
(3)
In subsection (3) (Commissioners’ power to bring condemnation
proceedings)—
(a)
for the words from the beginning to the first “they” substitute “The
Commissioners”, and
10
(b)
for “£500” substitute “£10,000”.
(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
15
(c)
omit “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.
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(6)
After 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
25
being 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.
30
(10)
A 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-
35
holders), 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.
40
      (2)
In this paragraph—
“payment card” includes a credit card, a charge card and a debit
card;

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“payment card transaction” means any transaction in which a
payment card is accepted as payment;
“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
5
payment includes a reference to any account number or other
indicators associated with a payment card being accepted as
payment.”
(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).
10
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
income, profits or gains arise by virtue of section 25, 185 or 187(4) of TCGA
15
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
Overpayment relief: generally prevailing practice exclusion and EU law
20
(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
paid, is tax which has been charged contrary to EU law.
25
     (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,
persons, services and capital in Titles II and IV of Part 3 of the
30
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
tax), in paragraph 13B (claim for relief for overpaid tax etc: cases in which
35
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
contrary to EU law if, in the circumstances in question, the charge to
40
tax is contrary to—

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(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)
the provisions of any subsequent treaty replacing the
provisions mentioned in paragraph (a).”
5
(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)
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
     (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,
persons, services and capital in Titles II and IV of Part 3 of the
15
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
assessment), in paragraph 34A (cases in which Commissioners not liable to
20
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
contrary to EU law if, in the circumstances in question, the charge to
25
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)
the provisions of any subsequent treaty replacing the
30
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
Overpayment relief: time limit for claims
35
(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,
the tax year to which the return (or, if more than one, the first
40
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

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is” 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
5
(b)
otherwise,”.
(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
10
a 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
15
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.
Administration
230
Self assessment: withdrawal of notice to file etc
Schedule 49 contains provision for, and in connection with, withdrawing a
20
notice under section 8, 8A or 12AA of TMA 1970 and cancelling liability to a
penalty under Schedule 55 to FA 2009.
Part 7
Final provisions
231
Interpretation
25
(1)
In this Act—
“ALDA 1979” means the Alcoholic Liquor Duties Act 1979,
“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,
30
“CRCA 2005” means the Commissioners for Revenue and Customs Act
2005,
“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,
35
“HODA 1979” means the Hydrocarbon Oil Duties Act 1979,
“ICTA” means the Income and Corporation Taxes Act 1988,
“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,
40
“ITTOIA 2005” means the Income Tax (Trading and Other Income) Act
2005,
“OTA 1975” means the Oil Taxation Act 1975,