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(c) paragraph 5(1) of Schedule 31, or

(d) paragraph 21 of Schedule 32,

may not be made unless a draft of the instrument has been laid before and
approved by a resolution of the House of Commons.

(4) 5Regulations under this Part—

(a) may make different provision for different purposes;

(b) may include transitional provision and savings.

276 Interpretation of this Part

(1) In this Part—

(2) 5A reference in a provision of this Part to an authorised officer is to an officer of
Revenue and Customs who is, or is a member of a class of officers who are,
authorised by the Commissioners for the purposes of that provision.

(3) A reference in a provision of this Part to meeting a threshold condition is to
meeting one of the conditions described in paragraphs 2 to 12 of Schedule 30.

10Part 6 Other provisions

Anti-avoidance

277 Disclosure of tax avoidance schemes: information powers

(1) Part 7 of FA 2004 (disclosure of tax avoidance schemes) is amended as set out
15in subsections (2) to (4).

(2) After section 310 insert—

310A Duty to provide further information requested by HMRC

(1) This section applies where—

(a) a person has provided the prescribed information about
20notifiable proposals or arrangements in compliance with
section 308, 309 or 310, or

(b) a person has provided information in purported compliance
with section 309 or 310 but HMRC believe that the person has
not provided all the prescribed information.

(2) 25HMRC may require the person to provide—

(a) further specified information about the notifiable proposals or
arrangements (in addition to the prescribed information under
section 308, 309 or 310);

(b) documents relating to the notifiable proposals or arrangements.

(3) 30Where HMRC impose a requirement on a person under this section, the
person must comply with the requirement within—

(a) the period of 10 working days beginning with the day on which
HMRC imposed the requirement, or

(b) such longer period as HMRC may direct.

310B 35Failure to provide information under section 310A: application to the
Tribunal

(1) This section applies where HMRC

(a) have required a person to provide information or documents
under section 310A, but

(b) 40believe that the person has failed to provide the information or
documents required.

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(2) HMRC may apply to the tribunal for an order requiring the person to
provide the information or documents required.

(3) The tribunal may make an order under subsection (2) only if satisfied
that HMRC have reasonable grounds for suspecting that the
5information or documents will assist HMRC in considering the
notifiable proposals or arrangements.

(4) Where the tribunal makes an order under subsection (2), the person
must comply with it within—

(a) the period of 10 working days beginning with the day on which
10the tribunal made the order, or

(b) such longer period as HMRC may direct.

(3) In section 316(2) (meaning of the “information provisions”), after “310,” insert
“310A,”.

(4) In section 318(1) (interpretation of Part 7), at the end insert—

(5) Section 98C of TMA 1970 (notification under Part 7 of FA 2004) is amended as
20set out in subsections (6) to (10).

(6) In subsection (1)(a)(i), for “or (c)” substitute “, (c) or (ca)”.

(7) In subsection (2), after paragraph (c) insert—

(ca) section 310A (duty to provide further information requested by
HMRC),.

(8) 25In subsection (2ZA), at the end of the table add—

A failure to
comply with
section 310A
The first day
after the end
of the period
within which
30the person
must comply
with section
310A.

(9) In subsection (2ZB)—

(a) 35in paragraph (a)—

(i) for “person’s” substitute “promoter’s”;

(ii) after “(3)” insert “or section 310A”;

(iii) for “person” substitute “promoter”;

(b) in paragraph (b)—

(i) 40before “person’s” insert “relevant”;

(ii) for “or 310” substitute “, 310 or 310A”;

(iii) before “person” insert “relevant”.

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(10) After subsection (2ZB) insert—

(2ZBA) In subsection (2ZB)—

(a) “promoter” has the same meaning as in Part 7 of the Finance Act
2004, and

(b) 5“relevant person” means a person who enters into any
transaction forming part of notifiable arrangements within the
meaning of that Part.

(11) Section 310A of FA 2004 applies to a person who provides the prescribed
information about notifiable proposals or arrangements in compliance or
10purported compliance with section 308, 309 or 310 on or after the day on which
this Act is passed.

Code of Practice on Taxation of Banks

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

(1) No later than the end of the calendar year in which a reporting period ends, the
15Commissioners for Her Majesty’s Revenue and Customs must publish a report
on the operation during the period of the Code of Practice on Taxation for
Banks as published by the Commissioners on 31 May 2013 (“the Code”).

(2) If the Commissioners determine that a group or entity which was a
participating group or entity (see section 279) during some or all of a reporting
20period breached the Code at a time during the period, the Commissioners may
name the group or entity in a report under this section.

This subsection is subject to section 280.

This subsection is subject to section 280.

(3) If—

(a) 25the Commissioners determine that there has been a breach of the Code,
but

(b) it was not reasonably practicable for information relating to the breach
to be included in the report for the reporting period in which the breach
occurred,

30the information may be included in the first subsequent report in which it is
reasonably practicable for the information to be included.

(4) The report for a reporting period must list—

(a) the groups or entities which were participating groups or entities
during some or all of the reporting period,

(b) 35the groups or entities appearing to the Commissioners—

(i) not to be covered by paragraph (a), and

(ii) to be groups or entities in relation to which the bank levy is
charged in a case where the chargeable period ends in the
reporting period (or would be charged in such a case if it is
40assumed that any period of account beginning before or in, but
ending after, the reporting period ends at the end of the
reporting period instead), and

(c) the entities appearing to the Commissioners—

(i) not to be covered by paragraph (a) or (b), and

(ii) 45to be entities which fell within subsection (2)(b) or (c) of section
991 of ITA 2007 (subject to subsection (3) of that section) during
some or all of the reporting period.

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(5) In a case where the bank levy is (or would be) charged in relation to a relevant
non-banking group (as defined in paragraph 11 of Schedule 19 to FA 2011), any
list prepared under subsection (4)(b) is to refer to the group only so far as it
consists (or would consist) of—

(a) 5relevant UK banking sub-groups (as defined in paragraph 19(5) of that
Schedule), and

(b) so far as not covered by paragraph (a)

(i) UK resident banks (as defined in paragraph 80 of that
Schedule), and

(ii) 10relevant foreign banks (as defined in paragraph 78 of that
Schedule).

(6) For the purposes of subsection (4)(b)(ii) it does not matter if the amount of the
bank levy is (or would be) nil in the case of a group or entity.

(7) The first “reporting period” is the period beginning with 5 December 2013 and
15ending with 31 March 2015.

(8) After that, each year beginning with 1 April is a “reporting period”.

(9) The report for the first reporting period must list the groups or entities which
were participating groups or entities on 5 December 2013.

(10) Subsection (9) does not require the inclusion in the report of any information
20which has previously been published by the Commissioners, so long as the
report makes reference to the previous publication.

(11) If, on or after 31 May 2013, the Commissioners publish a document which
states that only Part 1 of the Code is to apply in the case of a group or entity of
a specified description, in the case of such a group or entity references to the
25Code are to be read as references to Part 1 of the Code.

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

(1) This section applies for the purposes of section 278.

(2) A group or entity becomes a “participating” group or entity if, on or after 31
May 2013, it notifies the Commissioners in writing that it is unconditionally
30committed to complying with the Code.

(3) A group or entity ceases to be a “participating” group or entity if it notifies the
Commissioners in writing that it is no longer unconditionally committed to
complying with the Code.

(4) A group or entity which ceases to be a “participating” group or entity in
35accordance with subsection (3) becomes a “participating” group or entity again
if it gives a further written notice of the kind mentioned in subsection (2)
(subject to what follows).

(5) Subsections (6) and (7) apply if a group or entity is named in a report under
section 278 under subsection (2) of that section.

(6) 40If the group or entity is a “participating” group or entity immediately before
the publication of the report, it ceases to be so on the publication of the report.

(7) In any case, the group or entity cannot be a “participating” group or entity after
the publication of the report unless and until—

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(a) it gives the Commissioners a further written notice of the kind
mentioned in subsection (2), and

(b) the Commissioners are satisfied that it is unconditionally committed to
complying with the Code.

280 5The Code of Practice on Taxation for Banks: operation & breaches of the Code

(1) The Commissioners must—

(a) publish a protocol, to be called “the Governance Protocol”, setting out
how the Commissioners are going to operate the Code and section
278(2), and

(b) 10follow the Governance Protocol when operating the Code and section
278(2).

(2) The Governance Protocol must require the Commissioners, before
determining for the purposes of section 278(2) whether a group or entity has
breached the Code at a time during a reporting period, to commission a person
15(an “independent reviewer”) who is independent of the Commissioners and
the group or entity to report on—

(a) whether the group or entity has breached the Code, and

(b) whether the group or entity should be named in a report under section
278 were the Commissioners to determine that the group or entity has
20breached the Code.

(3) The independent reviewer—

(a) must give the group or entity a reasonable opportunity to make
representations about the matters being considered by the independent
reviewer,

(b) 25subject to subsection (8), must have regard to the group or entity’s
representations and may have regard to any other matter which the
independent reviewer considers to be relevant,

(c) must give the group or entity a copy of the independent reviewer’s
report, and

(d) 30must otherwise follow the Governance Protocol but only so far as it is
relevant to the independent reviewer’s functions.

(4) The Governance Protocol may provide that, in the case of any conduct of a
group or entity to which subsection (5) applies, the independent reviewer is to
assume that the conduct constitutes a breach of the Code and, accordingly, is
35to report only on the matter mentioned in subsection (2)(b).

(5) This subsection applies to any conduct—

(a) in relation to which there has been given—

(i) an opinion notice under paragraph 11(3)(b) of Schedule 43 to FA
2013 (GAAR advisory panel: opinion that conduct
40unreasonable) stating the joint opinion of all the members of a
sub-panel arranged under paragraph 10 of that Schedule, or

(ii) one or more such notices stating the opinions of at least two
members of such a sub-panel, and

(b) in relation to which there has been given a notice under paragraph 12
45of that Schedule (HMRC final decision on tax advantage) stating that a
tax advantage is to be counteracted.

(6) The Governance Protocol must make provision—

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(a) for the Commissioners, in determining whether a group or entity has
breached the Code or should be named in a report under section 278—

(i) to have regard to the independent reviewer’s report, and

(ii) to give the group or entity a reasonable opportunity to make
5representations about the matters being considered by the
Commissioners,

(b) for the Commissioners to notify the group or entity in writing of their
determination,

(c) if the Commissioners’ determination is different from the independent
10reviewer’s determination, for the Commissioners to include in the
notification of their determination to the group or entity their reasons
for making a different determination, and

(d) if the Commissioners determine that the group or entity should be
named in a report under section 278, for the Commissioners to hold off
15including in a report under that section any information relating to the
breach of the Code—

(i) until the notification of the determination is given to the group
or entity, and

(ii) for at least 90 days after the day on which that notification is
20given.

(7) The Governance Protocol must make provision for the independent reviewer
and the Commissioners, in determining whether a group or entity should be
named in a report under section 278, to have regard to—

(a) any action taken by the group or entity to remedy the breach of the
25Code or otherwise to mitigate its effect, and

(b) any exceptional circumstances which might justify not naming the
group or entity.

(8) In determining whether a group or entity has breached the Code or should be
named in a report under section 278, the independent reviewer and the
30Commissioners—

(a) may have regard to any conduct of the group or entity occurring on or
after 5 December 2013, but

(b) must not have regard to any conduct of the group or entity occurring
before that date or at a time when the group or entity is not a
35participating group or entity.

(9) Subsection (10) applies if the independent reviewer determines—

(a) that a group or entity has not breached the Code, or

(b) that a group or entity should not be named in a report under section
278.

(10) 40The Commissioners may make a determination which is different from the
independent reviewer’s determination only if—

(a) the independent reviewer’s determination is flawed when considered
in the light of the principles applicable in proceedings for judicial
review, or

(b) 45there are other compelling reasons for making a different
determination.

(11) If the Commissioners make a different determination in a case where
subsection (10) applies—

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(a) their reasons notified under subsection (6)(c) must set out (in
particular) why the independent reviewer’s determination is flawed or
(as the case may be) the other compelling reasons,

(b) in any proceedings in which an issue arises as to whether it was lawful
5for them to make the different determination it is for them to show that
it was lawful for them to make the different determination, and

(c) subsection (12) applies in relation to any proceedings for judicial
review of the different determination instituted by a member of the
group or by the entity.

(12) 10If the proceedings are instituted no later than the end of the 90 day period
mentioned in subsection (6)(d)(ii)

(a) they are to be treated as having been instituted within any applicable
time limit (if that would not otherwise be the case),

(b) the court must give permission or leave for the proceedings to proceed
15(if the court’s permission or leave is required), unless that would lead
to multiple proceedings dealing with the same issues, and

(c) any hearing (including any hearing on appeal) must be held in private,
unless (having regard to the risk that holding the hearing in public
might undermine to any extent the purpose of the instituting of the
20proceedings) the court is satisfied that there are exceptional
circumstances requiring the hearing to be held in public.

(13) If a determination of the Commissioners is different from the independent
reviewer’s determination, they must mention that fact—

(a) in the report under section 278 for the reporting period in question, or

(b) 25if it was not reasonably practicable for that fact to be mentioned in that
report, in the first subsequent report under section 278 in which it is
reasonably practicable for that fact to be mentioned.

(14) In determining for the purposes of section 278(3) or subsection (13)(b) of this
section when it is reasonably practicable for any information to be included in
30a report under section 278, regard must be had (in particular) to the
requirements of subsections (1) to (12) of this section.

(15) The Commissioners must disclose to an independent reviewer such
information held by them as they consider appropriate to enable the
independent reviewer to carry out the independent reviewer’s functions.

(16) 35If the Commissioners disclose information to an independent reviewer under
subsection (15), section 18 of CRCA 2005 (confidentiality) applies in relation to
the independent reviewer’s holding and use of the information as if the
independent reviewer were an officer of Revenue and Customs and the
independent reviewer’s functions were functions of the independent reviewer
40as such an officer.

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

(1) The Commissioners may publish a relevant document, or revoke or modify a
relevant document previously published by them, only after—

(a) consultation with such persons as they consider appropriate, and

(b) 45consideration of any representations made to them in the course of the
consultation.

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(2) When publishing a relevant document or a modified relevant document or
when revoking a relevant document, the Commissioners must also publish—

(a) an account of the representations mentioned in subsection (1)(b), and

(b) their responses to those representations.

(3) 5In this section “relevant document” means—

(a) the Governance Protocol, or

(b) any document of the kind mentioned in section 278(11).

(4) This section does not apply in relation to the first publication of the
Governance Protocol.

(5) 10This section does not affect any document of the kind mentioned in section
278(11) published before the passing of this Act except where it is to be revoked
or modified after the passing of this Act.

Offshore funds

282 Undertakings for collective investment in transferable securities and
15alternative investment funds

(1) Section 363A of TIOPA 2010 (residence of offshore funds which are
undertakings for collective investment in transferable securities) is amended as
follows.

(2) For subsections (1) and (2) substitute—

(1) 20This section applies to—

(a) a UCITS which is authorised in a foreign country or territory
pursuant to Article 5 of the UCITS Directive, and

(b) an AIF which is authorised or registered in a foreign country or
territory, or is not authorised or registered but has its registered
25office in a foreign country or territory,

unless the UCITS or AIF is an excluded entity.

(2) If the UCITS or AIF is a body corporate which (apart from this section)
would be treated as resident in the United Kingdom for the purposes of
any enactment (within the meaning of section 354) relating to income
30tax, corporation tax or capital gains tax, the body corporate is instead to
be treated as if it were not resident in the United Kingdom.

(2A) A UCITS or AIF is “an excluded entity” if it—

(a) is a unit trust scheme the trustees of which are UK resident,

(b) is resident in the United Kingdom by virtue of section 14 of CTA
352009,

(c) is, or has been, an investment trust with respect to an
accounting period, or

(d) is or has been—

(i) a company UK REIT in relation to an accounting period,
40or

(ii) a member of a group of companies at a time when the
group is or was a group UK REIT in relation to an
accounting period.

(2B) The Treasury may, by regulations, modify this section so as to—

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(a) add a description of UCITS or AIF as an excluded entity,

(b) provide that a description of UCITS or AIF is no longer an
excluded entity, or

(c) vary a description of an excluded entity.

(3) 5In subsection (3), for “offshore fund” substitute “UCITS or AIF”.

(4) In subsection (4), for the words after “section” substitute

(5) 20Accordingly, in TIOPA 2010—

(a) in section 1 (overview of Act), in subsection (1)(e) after “funds” insert
etc”,

(b) in the heading for Part 8, after “FUNDS” insert “ETC”, and

(c) for the heading of section 363A substitute “Residence of undertakings
25for collective investment in transferable securities and alterative
investment funds
”.

(6) The amendments made by this section are treated as having come into force on
5 December 2013.

Employee-ownership trusts

283 30Companies owned by employee-ownership trusts

Schedule 33 contains provision about tax reliefs in connection with companies
owned by employee-ownership trusts.

Trusts

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

(1) 35Schedule 1A to FA 2005 (meaning of “disabled person”) is amended as follows.

(2) In paragraph 1—

(a) for paragraph (c) substitute—

(c) a person in receipt of a disability living allowance by
virtue of entitlement to—

(i) 40the care component at the highest or middle
rate, or

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