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Finance Bill (HC Bill 10)

EUROPEAN CONVENTION ON HUMAN RIGHTS

Mr Chancellor of the Exchequer has made the following statement under section
19(1)(a) of the Human Rights Act 1998:

In my view the provisions of the Finance Bill are compatible with the Convention
rights.

Contents

    This Bill is divided into two volumes. Volume I contains the Clauses and Schedules
    1 to 6. Volume II contains Schedules 7 to 34.

  1. Part 1

    Income tax, corporation tax and capital gains tax

    1. Chapter 1

      Charge, rates etc

      1. Income tax

        1. 1. Charge, rates, basic rate limit and personal allowance for 2014-15

        2. 2. Basic rate limit for 2015-16 and personal allowances from 2015

        3. 3. The starting rate for savings and the savings rate limit

        4. 4. Indexation of limits and allowances under ITA 2007

      2. Corporation tax

        1. 5. Charge for financial year 2015

        2. 6. Small profits rate and fractions for financial year 2014

        3. 7. Rates for ring fence profits and abolition of small profits rate for non-ring
          fence profits

      3. Capital gains tax

        1. 8. Annual exempt amount for 2014-15

        2. 9. Annual exempt amount for 2015-16 onwards

      4. Capital allowances

        1. 10. Temporary increase in annual investment allowance

    2. Chapter 2

      Income tax: general

      1. Exemptions and reliefs

        1. 11. Tax relief for married couples and civil partners

        2. 12. Recommended medical treatment

        3. 13. Relief for loan interest: loan to buy interest in close company

        4. 14. Relief for loan interest: loan to buy interest in employee-controlled company

      2. Other provisions

        1. 15. Restrictions on remittance basis

        2. 16. Treatment of agency workers

        3. 17. Recovery under PAYE regulations from certain company officers

        4. 18. Employment intermediaries: information powers and related penalties

        5. 19. Payments by employer on account of tax where deduction not possible

        6. 20. PAYE obligations of UK intermediary in cases involving non-UK employer

        7. 21. Oil and gas workers on the continental shelf: operation of PAYE

        8. 22. Threshold for benefit of loan to be treated as earnings

        9. 23. Taxable benefits: cars, vans and related benefits

        10. 24. Cars: the appropriate percentage

        11. 25. Cars and vans: payments for private use

    3. Chapter 3

      Corporation tax: general

      1. 26. Release of debts: stabilisation powers under Banking Act 2009

      2. 27. Holdings treated as rights under loan relationships

      3. 28. De-grouping charges (loan relationships etc)

      4. 29. Disguised distribution arrangements involving derivative contracts

      5. 30. Avoidance schemes involving the transfer of corporate profits

      6. 31. R&D tax credits for small or medium-sized enterprises

      7. 32. Film tax relief

      8. 33. Television tax relief: activities to be treated as separate trade

      9. 34. Video games development

      10. 35. Community amateur sports clubs

      11. 36. Changes in company ownership

      12. 37. Transfer of deductions: research and development allowances

      13. 38. Tax treatment of financing costs and income

    4. Chapter 4

      Other provisions

      1. Pensions

        1. 39. Pension flexibility: drawdown

        2. 40. Pension flexibility: taking low-value pension rights as lump sum

        3. 41. Transitional provision for new standard lifetime allowance for 2014-15 etc

        4. 42. Taxable specific income: effect on pension input amount for non-UK schemes

        5. 43. Pension schemes

      2. Sporting events

        1. 44. Glasgow Grand Prix

        2. 45. Major sporting events: power to provide for tax exemptions

      3. Employee share schemes

        1. 46. Share incentive plans: increases in maximum annual awards etc

        2. 47. Share incentive plans: power to adjust maximum annual awards etc

        3. 48. Employee share schemes

        4. 49. Employment-related securities etc

      4. Investment reliefs

        1. 50. Venture capital trusts

        2. 51. Removing time limit on seed enterprise investment scheme relief

        3. 52. Removing time limit on CGT relief in respect of re-investment under SEIS

      5. Social investment relief

        1. 53. Relief for investments in social enterprises

      6. Capital gains

        1. 54. Relief on disposal of private residence

        2. 55. Remittance basis and split year treatment

        3. 56. Termination of life interest and death of life tenant: disabled persons

        4. 57. Capital gains roll-over relief: relevant classes of assets

        5. 58. Capital gains roll-over relief: intangible fixed assets

        6. 59. Avoidance involving losses

      7. Capital allowances

        1. 60. Extension of capital allowances

        2. 61. Business premises renovation allowances

        3. 62. Mineral extraction allowances: activities not within charge to tax

        4. 63. Mineral extraction allowances: expenditure on planning permission

      8. Oil and gas

        1. 64. Extended ring fence expenditure supplement for onshore activities

        2. 65. Supplementary charge: onshore allowance

        3. 66. Oil and gas: reinvestment after pre-trading disposal

        4. 67. Substantial shareholder exemption: oil and gas

      9. Partnerships

        1. 68. Partnerships

      10. Transfer pricing

        1. 69. Transfer pricing: restriction on claims for compensation adjustments

  2. Part 2

    Excise duties and other taxes

    1. Alcohol

      1. 70. Rates of alcoholic liquor duties

    2. Tobacco

      1. 71. Rates of tobacco products duty

    3. Air passenger duty

      1. 72. Air passenger duty: rates of duty from 1 April 2014

      2. 73. Air passenger duty: rates of duty from 1 April 2015

      3. 74. Air passenger duty: adjustments to Part 3 of Schedule 5A to FA 1994

    4. Vehicle excise duty

      1. 75. VED rates for light passenger vehicles, light goods vehicles, motorcycles etc

      2. 76. VED rates: rigid goods vehicle with trailers

      3. 77. VED rates: use for exceptional loads, rigid goods vehicles and tractive units

      4. 78. VED: extension of old vehicles exemption from 1 April 2014

      5. 79. VED: extension of old vehicles exemption from 1 April 2015

      6. 80. Abolition of reduced VED rates for meeting reduced pollution requirements

      7. 81. Six month licence: tractive units

      8. 82. Vehicles subject to HGV road user levy: amount of 6 month licence

      9. 83. Payment of vehicle excise duty by direct debit

      10. 84. Definition of “revenue weight”

      11. 85. Vehicle excise and registration: other provisions

    5. HGV road user levy

      1. 86. HGV road user levy: rates tables

      2. 87. HGV road user levy: disclosure of information by HMRC

    6. Aggregates levy

      1. 88. Aggregates levy: removal of certain exemptions

      2. 89. Aggregates levy: power to restore exemptions

    7. Climate change levy

      1. 90. Climate change levy: main rates for 2015-16

      2. 91. Climate change levy: carbon price support rates for 2014-15 and 2015-16

      3. 92. Climate change levy: carbon price support rates for 2016-17

      4. 93. Climate change levy: exemptions: mineralogical & metallurgical processes etc

    8. Landfill tax

      1. 94. Rates of landfill tax

    9. Excise and customs duties: general

      1. 95. Goods carried as stores

      2. 96. Penalties under section 26 of FA 2003: extension to excise duty

    10. Value added tax

      1. 97. VAT: special schemes

      2. 98. VAT: place of belonging

      3. 99. VAT: place of supply orders: disapplication of transitional provision

      4. 100. VAT: supply of services through agents

      5. 101. VAT: refunds to health service bodies

      6. 102. VAT: prompt payment discounts

    11. Stamp duty land tax and annual tax on enveloped dwellings

      1. 103. ATED: reduction in threshold from 1 April 2015

      2. 104. ATED: further reduction in threshold from 1 April 2016

      3. 105. SDLT: threshold for higher rate applying to certain transactions

      4. 106. SDLT: charities relief

    12. Stamp duty reserve tax and stamp duty

      1. 107. Abolition of SDRT on certain dealings in collective investment schemes

      2. 108. Abolition of stamp duty and SDRT: securities on recognised growth markets

      3. 109. Temporary statutory effect of House of Commons resolution

    13. Inheritance tax

      1. 110. Inheritance tax

    14. Estate duty

      1. 111. Gifts to the nation: estate duty

    15. Bank levy

      1. 112. Bank levy: rates from 1 January 2014

      2. 113. Bank levy: miscellaneous changes

    16. Gaming duty

      1. 114. Rates of gaming duty

    17. Bingo duty

      1. 115. Rate of bingo duty

      2. 116. Exemption from bingo duty: small-scale amusements provided commercially

    18. Machine games duty

      1. 117. Rates of machine games duty

  3. Part 3

    General betting duty, pool betting duty and remote gaming duty

    1. Chapter 1

      General betting duty

      1. The duty

        1. 118. General betting duty

      2. General and spread bets

        1. 119. General bets

        2. 120. General betting duty charge on general bets

        3. 121. Spread bets

        4. 122. General betting duty charge on financial spread bets

        5. 123. General betting duty charge on non-financial spread bets

        6. 124. Ordinary profits

        7. 125. Retained winnings profits

        8. 126. Bet-brokers

      3. Pool betting on horse and dog races

        1. 127. Chapter 1 pool bets

        2. 128. General betting duty charge on Chapter 1 pool bets

        3. 129. Profits on pooled stake Chapter 1 pool bets

        4. 130. Profits on ordinary Chapter 1 pool bets

        5. 131. Profits on retained winnings on Chapter 1 pool bets

      4. Stake money and winnings

        1. 132. Chapter 1: stake money

        2. 133. Chapter 1: winnings

      5. Exchanges

        1. 134. General betting duty charge on betting exchanges

      6. Payment

        1. 135. Liability to pay

    2. Chapter 2

      Pool betting duty

      1. 136. Chapter 2 pool bets

      2. 137. Pool betting duty charge on Chapter 2 pool bets

      3. 138. Profits on pooled stake Chapter 2 pool bets

      4. 139. Profits on ordinary Chapter 2 pool bets

      5. 140. Profits on retained winnings on Chapter 2 pool bets

      6. 141. Chapter 2: stake money

      7. 142. Chapter 2: winnings

      8. 143. Payments treated as bets

      9. 144. Payment and recovery

      10. 145. Notification of reliance on community benefit exemption

      11. 146. Bets made for community benefit

    3. Chapter 3

      Remote gaming duty

      1. 147. Remote gaming

      2. 148. Remote gaming duty

      3. 149. Profits on pooled prize gaming

      4. 150. Profits on ordinary gaming

      5. 151. Profits on retained prizes

      6. 152. Gaming payments

      7. 153. Prizes

      8. 154. Exemptions

      9. 155. Liability to pay

    4. Chapter 4

      General

      1. Administration

        1. 156. Administration

        2. 157. Registration

        3. 158. Accounting period

        4. 159. Returns

        5. 160. Payment

        6. 161. Information and records

        7. 162. Stake funds and gaming prize funds

      2. Security and enforcement

        1. 163. Security for payment

        2. 164. Appointment of UK representative

        3. 165. Security and representatives: review and appeal

        4. 166. Offence of failing to provide security or appoint representative

        5. 167. Fraudulent evasion

        6. 168. Penalties under section 9 of FA 1994

        7. 169. Interest

        8. 170. Suspension and revocation of remote operating licences

      3. Offences and evidence

        1. 171. Offences by bodies corporate

        2. 172. Protection of officers

        3. 173. Evidence by certificate, etc

        4. 174. Facilities capable of being used in United Kingdom: burden of proof

      4. Review and appeal

        1. 175. Review and appeal

      5. Definitions

        1. 176. Bet

        2. 177. Pool betting

        3. 178. Fixed odds

        4. 179. UK person

        5. 180. On-course betting and excluded betting

        6. 181. Gaming

        7. 182. Other definitions

        8. 183. Index

      6. Supplementary

        1. 184. Amounts not in sterling

        2. 185. Limited liability partnerships

        3. 186. Effect of imposition of duties

        4. 187. Regulations

        5. 188. Notices

        6. 189. Consequential amendments and repeals

        7. 190. Transitional and saving provisions

        8. 191. Commencement and effect

  4. Part 4

    Follower notices and accelerated payments

    1. Chapter 1

      Introduction

      1. Overview

        1. 192. Overview of Part 4

      2. Main definitions

        1. 193. “Relevant tax”

        2. 194. “Tax advantage” and “tax arrangements”

        3. 195. “Tax enquiry” and “return”

        4. 196. “Tax appeal”

    2. Chapter 2

      Follower notices

      1. Giving of follower notices

        1. 197. Circumstances in which a follower notice may be given

        2. 198. “Judicial ruling” and circumstances in which a ruling is “relevant”

        3. 199. Content of a follower notice

      2. Representations

        1. 200. Representations about a follower notice

      3. Penalties

        1. 201. Penalty if corrective action not taken in response to follower notice

        2. 202. Amount of a section 201 penalty

        3. 203. Reduction of a section 201 penalty for co-operation

        4. 204. Assessment of a section 201 penalty

        5. 205. Aggregate penalties

        6. 206. Alteration of assessment of a section 201 penalty

        7. 207. Appeal against a section 201 penalty

      4. Partners and partnerships

        1. 208. Follower notices: treatment of partners and partnerships

      5. Appeals out of time

        1. 209. Late appeal against final judicial ruling

      6. Transitional provision

        1. 210. Transitional provision

      7. Defined terms

        1. 211. Defined terms used in Chapter 2

    3. Chapter 3

      Accelerated payment

      1. Accelerated payment notices

        1. 212. Circumstances in which an accelerated payment notice may be given

        2. 213. Content of notice given while a tax enquiry is in progress

        3. 214. Content of notice given pending an appeal

        4. 215. Representations about a notice

      2. Forms of accelerated payment

        1. 216. Effect of notice given while tax enquiry is in progress

        2. 217. Restriction on powers to postpone tax payments pending initial appeal

        3. 218. Protection of the revenue pending further appeals

      3. Penalties

        1. 219. Penalty for failure to pay accelerated payment

      4. Withdrawal etc of accelerated payment notice

        1. 220. Withdrawal, modification or suspension of accelerated payment notice

      5. Partners and partnerships

        1. 221. Accelerated partner payments

      6. Defined terms

        1. 222. Defined terms used in Chapter 3

    4. Chapter 4

      Miscellaneous and general provision

      1. Stamp duty land tax and annual tax on enveloped dwellings

        1. 223. Special case: stamp duty land tax

        2. 224. Special case: annual tax on enveloped dwellings

      2. Extension of Part by order

        1. 225. Extension of this Part by order

      3. Consequential amendments

        1. 226. Consequential amendments

  5. Part 5

    Promoters of tax avoidance schemes

    1. Introduction

      1. 227. Meaning of “relevant proposal” and “relevant arrangements”

      2. 228. Carrying on a business “as a promoter”

      3. 229. Meaning of “intermediary”

    2. Conduct notices

      1. 230. Duty to give conduct notice

      2. 231. Contents of a conduct notice

      3. 232. Section 231: supplementary

      4. 233. Amendment or withdrawal of conduct notice

      5. 234. Duration of conduct notice

    3. Monitoring notices: procedure and publication

      1. 235. Monitoring notices: duty to apply to tribunal

      2. 236. Monitoring notices: tribunal approval

      3. 237. Monitoring notices: content and issuing

      4. 238. Withdrawal of monitoring notice

      5. 239. Notification of determination under section 238

      6. 240. Appeal against refusal to withdraw monitoring notice

      7. 241. Publication by HMRC

      8. 242. Publication by monitored promoter

    4. Allocation and distribution of promoter reference number

      1. 243. Allocation of promoter reference number

      2. 244. Duty of monitored promoter to notify clients of number

      3. 245. Duty of those notified to notify others of promoter’s number

      4. 246. Duty of persons to notify the Commissioners

    5. Obtaining information and documents

      1. 247. Meaning of “monitored proposal” and “monitored arrangements”

      2. 248. Power to obtain information and documents

      3. 249. Tribunal approval for certain uses of power under section 248

      4. 250. Ongoing duty to provide information following HMRC notice

      5. 251. Duty of person dealing with non-resident monitored promoter

      6. 252. Monitored promoters: duty to provide information about clients

      7. 253. Intermediaries: duty to provide information about clients

      8. 254. Enquiry following provision of client information

      9. 255. Information required for monitoring compliance with conduct notice

      10. 256. Duty to notify HMRC of address

      11. 257. Failure to provide information: application to tribunal

      12. 258. Duty to provide information to monitored promoter

    6. Obtaining information and documents: appeals

      1. 259. Appeals against notices imposing information etc requirements

    7. Obtaining information and documents: supplementary

      1. 260. Form and manner of providing information

      2. 261. Production of documents: compliance

      3. 262. Exception for certain documents or information

      4. 263. Limitation on duty to produce documents

      5. 264. Legal professional privilege

      6. 265. Tax advisers

      7. 266. Confidentiality

    8. Penalties

      1. 267. Penalties

      2. 268. Failure to comply with Part 7 of the Finance Act 2004

      3. 269. Limitation of defence of reasonable care

      4. 270. Extended time limit for assessment

    9. Offences

      1. 271. Offence of concealing etc documents

      2. 272. Offence of concealing etc documents following informal notification

      3. 273. Penalties for offences

    10. Supplemental

      1. 274. Partnerships

      2. 275. Regulations under this Part

      3. 276. Interpretation of this Part

  6. Part 6

    Other provisions

    1. Anti-avoidance

      1. 277. Disclosure of tax avoidance schemes: information powers

    2. Code of Practice on Taxation of Banks

      1. 278. The Code of Practice on Taxation for Banks: HMRC to publish reports

      2. 279. The Code of Practice on Taxation for Banks: “participating” groups or entities

      3. 280. The Code of Practice on Taxation for Banks: operation & breaches of the Code

      4. 281. The Code of Practice on Taxation for Banks: documents relating to the Code

    3. Offshore funds

      1. 282. Undertakings for collective investment in transferable securities and
        alternative investment funds

    4. Employee-ownership trusts

      1. 283. Companies owned by employee-ownership trusts

    5. Trusts

      1. 284. Trusts with vulnerable beneficiary: meaning of “disabled person”

    6. International matters

      1. 285. Amounts allowed by way of double taxation relief

      2. 286. Controlled foreign companies: qualifying loan relationships (1)

      3. 287. Controlled foreign companies: qualifying loan relationships (2)

    7. Financial sector regulation

      1. 288. Tax consequences of financial sector regulation

    8. Scotland

      1. 289. Scottish basic, higher and additional rates of income tax

      2. 290. Report on administration of the Scottish rate of income tax

    9. Limitation periods

      1. 291. Removal of limitation period restriction for EU cases

    10. Local loans

      1. 292. Increase in limit for local loans

  7. Part 7

    Final provisions

    1. 293. Power to update indexes of defined terms

    2. 294. Interpretation

    3. 295. Short title

    1. Schedule 1

      Corporation tax rates

      1. Part 1

        Abolition of small profits rate for non-ring fence profits

      2. Part 2

        Amendments consequential on Part 1 of this Schedule

      3. Part 3

        Commencement and transitional provision

    2. Schedule 2

      Annual investment allowance: transitional provisions etc

      1. Part 1

        Transitional provisions

      2. Part 2

        Amendments of FA 2013

    3. Schedule 3

      Restrictions on remittance basis

    4. Schedule 4

      Transitional provision relating to new standard lifetime
      allowance for the tax year 2014-15 etc

      1. Part 1

        “Individual protection 2014”

      2. Part 2

        Regulations

      3. Part 3

        Other provision

    5. Schedule 5

      Pension schemes

    6. Schedule 6

      Employee share schemes

      1. Part 1

        Share incentive plans

      2. Part 2

        SAYE option schemes

      3. Part 3

        CSOP schemes

      4. Part 4

        Enterprise management incentives

      5. Part 5

        Other employee share schemes

    7. Schedule 7

      Employment-related securities etc

      1. Part 1

        Internationally mobile employees

      2. Part 2

        Restricted securities and securities acquired for less than
        market value: replacement and additional securities and
        rollover relief etc

      3. Part 3

        Corporation tax relief for employee share acquisitions

      4. Part 4

        Commencement etc

    8. Schedule 8

      Venture capital trusts

    9. Schedule 9

      Tax relief for social investments

      1. Part 1

        New Part 5B of ITA 2007

      2. Part 2

        Consequential amendments

    10. Schedule 10

      Investments in social enterprises: capital gains

    11. Schedule 11

      Extended ring fence expenditure supplement for onshore
      activities

    12. Schedule 12

      Supplementary charge: onshore allowance

      1. Part 1

        Amendments of Part 8 of CTA 2010

      2. Part 2

        Minor and consequential amendments

      3. Part 3

        Commencement and transitional provision

    13. Schedule 13

      Partnerships

      1. Part 1

        Limited liability partnerships: treatment of salaried members

      2. Part 2

        Partnerships with mixed membership

      3. Part 3

        Alternative investment fund managers: deferred
        remuneration etc

      4. Part 4

        Disposals of assets through partnerships

    14. Schedule 14

      Abolition of reduced rates for vehicles satisfying reduced
      pollution requirements

      1. Part 1

        Amendments of the Vehicle Excise and Registration Act 1994

      2. Part 2

        Commencement

    15. Schedule 15

      Other amendments about vehicle excise duty

      1. Part 1

        Amendments of the Vehicle Excise and Registration Act 1994

      2. Part 2

        Amendments of other enactments

      3. Part 3

        Commencement

    16. Schedule 16

      Climate change levy: exemptions for mineralogical and
      metallurgical processes etc

      1. Part 1

        The exemptions

      2. Part 2

        Other provision

    17. Schedule 17

      Goods shipped or carried as stores on ships or aircraft

    18. Schedule 18

      Supplies of electronic, broadcasting and telecommunication
      services: special accounting schemes

      1. Part 1

        Union scheme

      2. Part 2

        Non-Union scheme: amendments of Schedule 3B to VATA
        1994

      3. Part 3

        Other amendments: Union and non-Union schemes

      4. Part 4

        Commencement

    19. Schedule 19

      SDLT: charities relief

    20. Schedule 20

      Abolition of stamp duty and SDRT: securities on recognised
      growth markets

      1. Part 1

        Stamp duty reserve tax

      2. Part 2

        Stamp duty

    21. Schedule 21

      Inheritance tax

    22. Schedule 22

      The bank levy: miscellaneous changes

    23. Schedule 23

      Suspension and revocation of remote operating licences

    24. Schedule 24

      Part 3: Consequential amendments and repeals

      1. Part 1

        Betting and Gaming Duties Act 1981

      2. Part 2

        Other amendments and repeals

    25. Schedule 25

      Part 3: Transitional and saving provisions

    26. Schedule 26

      Section 201 penalty: value of the denied advantage

    27. Schedule 27

      Follower notices and partnerships

    28. Schedule 28

      Accelerated payments and partnerships

    29. Schedule 29

      Part 4: consequential amendments

    30. Schedule 30

      Promoters of tax avoidance schemes: threshold conditions

      1. Part 1

        Meeting the threshold conditions: general

      2. Part 2

        Meeting the threshold conditions: bodies corporate

      3. Part 3

        Power to amend

    31. Schedule 31

      Promoters of tax avoidance schemes: penalties

    32. Schedule 32

      Promoters of tax avoidance schemes: partnerships

      1. Part 1

        Partnerships as persons

      2. Part 2

        Conduct notices and monitoring notices

      3. Part 3

        Responsibility of partners

      4. Part 4

        Interpretation

    33. Schedule 33

      Companies owned by employee-ownership trusts

      1. Part 1

        Capital gains tax relief

      2. Part 2

        Employment income exemption

      3. Part 3

        Inheritance tax relief

      4. Part 4

        Miscellaneous amendments

    34. Schedule 34

      Scottish basic, higher and additional rates of income tax

      1. Part 1

        Amendments of ITA 2007

      2. Part 2

        Consequential amendments