Finance Bill (HC Bill 10)

(2) 15The amendment made by this section has effect in relation to supplies treated
as taking place on or after 1 April 2016.

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

Schedule 16 makes provision in relation to climate change levy.

Landfill tax

94 20Rates of landfill tax

(1) Section 42 of FA 1996 (amount of landfill tax) is amended as follows.

(2) In subsection (1)(a) (standard rate), for “£80” substitute “£82.60”.

(3) In subsection (2) (reduced rate for disposal of qualifying material)—

(a) for “£80” substitute “£82.60”, and

(b) 25for “£2.50” substitute “£2.60”.

(4) The amendments made by this section have effect in relation to disposals made
(or treated as made) on or after 1 April 2015.

Excise and customs duties: general

95 Goods carried as stores

30Schedule 17 contains provision about goods shipped or carried as stores on
ships or aircraft.

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

(1) In this section—

• “dutiable excise goods” means goods of a class or description subject to
  35any duty of excise, whether or not those goods are in fact chargeable

  Finance BillPage 81

  with that duty, and whether or not that duty has been paid on the
  goods;

• “relevant excise rule” means any duty, obligation, requirement or
  condition imposed by section 78 of CEMA 1979 (customs and excise
  5control of persons entering or leaving the United Kingdom), so far as
  that section relates to—

  (a)

  dutiable excise goods a person has obtained outside the United
  Kingdom, or

  (b)

  dutiable excise goods a person has obtained in the United
  10Kingdom without payment of excise duty,

  and in respect of which the person is not entitled to exemption from
  excise duty by virtue of any order under section 13 of the Customs and
  Excise Duties (General Reliefs) Act 1979 (personal reliefs).

(2) Sections 26 and 27 and 29 to 41 of FA 2003 (taxes and duties on importation and
15exportation: penalties) apply in relation to excise duty as they apply in relation
to a relevant tax or duty (as defined by section 24(2) of that Act) except that, for
this purpose, “relevant rule” in sections 26 and 33 means a relevant excise rule.

Value added tax

97 VAT: special schemes

20Schedule 18 contains provision about the supply of electronic services,
broadcasting services and telecommunication services.

98 VAT: place of belonging

(1) Section 9 of VATA 1994 (place where supplier or recipient of services belongs)
is amended as follows.

(2) 25In subsection (3)(c), after “usual place of residence” insert “or permanent
address”.

(3) In subsection (5), for the words from “belonging” to the end substitute
“belonging—

“(a) in the country in which the person’s usual place of residence or
30permanent address is (except in the case of a body corporate or
other legal person);

(b) in the case of a body corporate or other legal person, in the
country in which the place where it is established is.”

(4) For subsection (6) substitute—

“(6) 35The reference in subsection (5)(b) to the place where a body corporate
or other legal person “is established” is to be read in accordance with
Article 13a of Implementing Regulation (EU) No 282/2011 (which is
inserted by Council Implementing Regulation (EU) No 1042/2013).”

(5) The amendments made by this section have effect in relation to supplies made
40on or after 1 January 2015.

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

(1) Section 97A of VATA 1994 (place of supply orders: transitional provision) is to
be ignored for the purpose of giving effect to any new order under section
7A(6) of that Act which—

(a) 5is expressed as having effect in relation to supplies made on or after 1
January 2015, and

(b) makes provision about the place of supply of electronically supplied
services, telecommunication services and radio and television
broadcasting services.

(2) 10In subsection (1) “new order” means an order made on or after the day on
which this Act is passed.

(3) Subsection (1) applies only so far as the order makes provision about supplies
to which Article 2 of Council Implementing Regulation (EU) No 1042/2013
(transitional provision for changes in the law affecting electronically supplied,
15telecommunication and radio and television broadcasting services) applies.

100 VAT: supply of services through agents

(1) Section 47 of VATA 1994 (agents) is amended as follows.

(2) In subsection (3), after “services” insert “, other than electronically supplied
services and telecommunication services,”.

(3) 20After subsection (3) insert—

“(4) Where electronically supplied services or telecommunication services
are supplied through an agent, the supply is to be treated both as a
supply to the agent and as a supply by the agent.

(5) For the purposes of subsection (4) “agent” means a person (“A”) who
25acts in A’s own name but on behalf of another person within the
meaning of Article 28 of Council Directive 2006/112/EC on the
common system of value added tax.

(6) In this section “electronically supplied services” and
“telecommunication services” have the same meaning as in Schedule
304A (see paragraph 9(3) and (4) and paragraph 8(2) of that Schedule).”

(4) The amendments made by this section have effect in relation to supplies made
on or after 1 January 2015.

101 VAT: refunds to health service bodies

(1) In section 41(7) of VATA 1994 (application to the Crown: list of bodies
35regarded as Government departments) after “Excellence” insert “, Health
Education England (established by the Care Act 2014), and the Health Research
Authority (also established by that Act),”.

(2) In section 41(7) of VATA 1994 as amended by subsection (1)—

(a) for “above,” substitute “—

(a)”,

(b)”,

(c) after “1978” insert “,

(c)”,

(d) for the “and” after “foundation trust” substitute “,

(d)”,

(e) 5for the “and” after “Care Trust” substitute “,

(e)”,

(f) for the “and” after “Health Board” substitute “,

(f)”,

(g) after “group,” insert—

“(g)”,

(h) after “Centre,” insert—

“(h)”,

(i) for the “and” after “Commissioning Board” substitute “,

(i)”,

(j) 15before “Health Education England” insert—

“(j)”,

(k) before “the Health Research Authority” insert—

“(k)”,

(l) the words from “shall be regarded” to the end are to follow, rather than
20form part of, the paragraph (k) so formed, and

(m) in those words, for “shall” substitute “are each to”.

102 VAT: prompt payment discounts

(1) In Part 2 of Schedule 6 to VATA 1994 (valuation: special cases), for paragraph
4 (prompt payment discounts), substitute—

“4 (1) 25Sub-paragraph (2) applies where—

(a) goods or services are supplied for a consideration which is a
price in money,

(b) the terms on which those goods or services are so supplied
allow a discount for prompt payment of that price,

(c) 30payment of that price is not made by instalments, and

(d) payment of that price is made in accordance with those terms
so that the discount is realised in relation to that payment.

(2) For the purposes of section 19 (value of supply of goods or services)
the consideration is the discounted price paid.”

(2) 35The amendment made by this section has effect in relation to relevant supplies
made on or after 1 May 2014.

(3) The Treasury may by order made by statutory instrument provide that the
amendment has effect in relation to supplies of a description specified in the
order made on or after a date so specified (being a date before 1 April 2015).

(4) 40Subject to that, the amendment has effect in relation to supplies made on or
after 1 April 2015.

(5) In this section—

• “relevant supply” means a supply of radio or television broadcasting
  services or telecommunication services made by a taxable person who

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  is not required by or under any enactment to provide a VAT invoice to
  the person supplied;

• “telecommunication services” has the same meaning as in paragraph 8(2)
  of Schedule 4A to VATA 1994.

5Stamp duty land tax and annual tax on enveloped dwellings

103 ATED: reduction in threshold from 1 April 2015

(1) Part 3 of FA 2013 (annual tax on enveloped dwellings) is amended as follows.

(2) In section 94(2)(a) (charge to tax), for “£2 million” substitute “£1 million”.

(3) In section 99 (amount of tax chargeable), in the table in subsection (4), before
10the first entry insert—

(4) The amendments made by subsections (1) to (3) have effect for chargeable
periods beginning on or after 1 April 2015.

(5) 15In a case where tax is charged for the chargeable period beginning with 1 April
2015 with respect to a single-dwelling interest the taxable value of which on the
relevant day (see section 99(5) of FA 2013) is not more than £2 million, sections
159 and 163 of FA 2013 have effect with the following modifications.

(6) Section 159 (annual tax on enveloped dwellings return) has effect as if for
20subsections (2) and (3) there were substituted—

“(2) A return under subsection (1) must be delivered by the end of 1 October
2015 if the days on which the person is within the charge with respect
to the interest include 1 April 2015.

(3) If the days on which the person is within the charge with respect to the
25interest do not include 1 April 2015, the return must be delivered—

(a) by the end of 1 October 2015, or

(b) by the end of the period of 30 days beginning with the first day
in the chargeable period on which the person is within the
charge with respect to the interest,

30whichever is the later.”

(7) Section 163 (payment of tax) has effect as if for subsection (1) there were
substituted—

“(1) Tax charged on a person under section 99 with respect to a single-
dwelling interest must be paid—

(a) 35by the end of 31 October 2015, or

(b) if later, by the end of the filing date for the return.”

104 ATED: further reduction in threshold from 1 April 2016

(1) Part 3 of FA 2013 (annual tax on enveloped dwellings) is amended as follows.

(2) In section 94(2)(a) (charge to tax), for “£1 million” substitute “£500,000”.

(3) In section 99 (amount of tax chargeable), in the table in subsection (4), before
the first entry insert—

(4) 5The amendments made by this section have effect for chargeable periods
beginning on or after 1 April 2016.

105 SDLT: threshold for higher rate applying to certain transactions

(1) Schedule 4A to FA 2003 (SDLT: higher rate for certain transactions) is amended
as follows.

(2) 10In paragraph 1(2) (meaning of “higher threshold interest”) for “£2,000,000”
substitute “£500,000”.

(3) In consequence of the amendment made by subsection (2), in the following
provisions, for “£2,000,000” substitute “£500,000”—

(a) paragraph 4(1)(c);

(b) 15paragraph 6(2);

(c) paragraph 6(3)(b).

(4) The amendments made by this section have effect in relation to any chargeable
transaction of which the effective date is on or after 20 March 2014.

(5) But the amendments do not have effect in relation to a transaction—

(a) 20effected in pursuance of a contract entered into and substantially
performed before 20 March 2014,

(b) effected in pursuance of a contract entered into before that date and not
excluded by subsection (6), or

(c) excepted by subsection (7).

(6) 25A transaction effected in pursuance of a contract entered into before 20 March
2014 is excluded by this subsection if—

(a) there is any variation of the contract, or assignment (or assignation) of
rights under the contract, on or after 20 March 2014,

(b) the transaction is effected in consequence of the exercise on or after that
30date of any option, right of pre-emption or similar right, or

(c) on or after that date there is an assignment (or assignation), subsale or
other transaction relating to the whole or part of the subject-matter of
the contract as a result of which a person other than the purchaser
under the contract becomes entitled to call for a conveyance.

(7) 35A transaction treated as occurring under paragraph 17(2) or 17A(4) of Schedule
15 to FA 2003 (partnerships) is excepted by this subsection if the effective date
of the land transfer referred to in sub-paragraph (1)(a) of the paragraph
concerned is before 20 March 2014.

106 SDLT: charities relief

40Schedule 19 amends Schedule 8 to FA 2003 (stamp duty land tax: charities
relief).

Stamp duty reserve tax and stamp duty

107 Abolition of SDRT on certain dealings in collective investment schemes

(1) Part 2 of Schedule 19 to FA 1999 (which provides for a charge to stamp duty
reserve tax on certain dealings with units in unit trusts) is omitted.

(2) 5In section 90(1B) of FA 1986 (exception to charge to stamp duty reserve tax on
certain agreements to transfer property from a unit trust)—

(a) after “unit trust scheme” insert “if the unit holder is to receive only such
part of each description of asset in the trust property as is proportionate
to, or as nearly as practicable proportionate to, the unit holder’s share.”,
10and

(b) for the second sentence substitute “For these purposes there is a
surrender of a unit where—

“(a) a person (“P”) authorises or requires the trustees or managers of
a unit trust scheme to treat P as no longer interested in a unit
15under the scheme, or

(b) a unit under the unit trust scheme is transferred to the managers
of the scheme,”

and the unit is a chargeable security.”

(3) Accordingly—

(a) 20in FA 1999, in section 123(3), for “Parts I to III” substitute “Parts I and
III”,

(b) in FA 2001, omit sections 93 and 94,

(c) in FA 2004, in Schedule 35, omit paragraph 46 and the italic heading
before that paragraph,

(d) 25in FA 2005, omit section 97(3), (4) and (6), and

(e) in FA 2010, in Schedule 6, omit paragraph 15(2).

(4) The amendments made by this section have effect in relation to surrenders
made or effected on or after 30 March 2014.

(5) Provision made by regulations under section 98 of FA 1986, section 152 of FA
301995 or section 17 of F(No.2)A 2005 in connection with the coming into force of
this section may be made so as to have effect in relation to surrenders made or
effected on or after 30 March 2014 (even if the regulations are made after that
date).

(6) In subsections (4) and (5) a reference to surrenders is to be read in accordance
35with paragraph 2 of Schedule 19 to FA 1999.

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

Schedule 20 contains provision abolishing stamp duty and stamp duty reserve
tax on instruments and transfers of securities traded on recognised growth
markets.

109 40Temporary statutory effect of House of Commons resolution

(1) Section 50 of FA 1973 (temporary statutory effect of House of Commons
resolution affecting stamp duties) is amended as follows.

(2) In subsection (2), for paragraph (c) (and the “and” after it) substitute—

“(c) the dissolution of Parliament;

(ca) the prorogation of Parliament in a case where subsection (2B)
does not apply; and”.

(3) 5In that subsection, in paragraph (d), for “six” substitute “seven”.

(4) After that subsection insert—

“(2A) Subsection (2B) applies where Parliament is prorogued at the end of a
session if—

(a) during the session a Bill containing provisions to the same effect
10as the resolution is read a second time by the House or a Bill is
amended (whether by the House or a Committee of the House
or a Public Bill Committee) so as to include such provisions,

(b) the Standing Orders or Sessional Orders of the House provide,
or during the session the House orders, that proceedings on the
15Bill not completed before the end of the session shall be
resumed in the next session, and

(c) proceedings on the Bill are not completed during the session.

(2B) A resolution shall cease to have statutory effect under this section if,
during the period of thirty sitting days beginning with the first sitting
20day of the next session, no Bill containing provisions to the same effect
as the resolution is presented to the House.

(2C) In subsection (2B) “sitting day” means a day on which the House sits.

(2D) Where a Bill is amended as mentioned in subsection (2A)(a), it does not
matter for the purposes of subsection (2A)(b) if the House orders as
25mentioned in subsection (2A)(b) before the amendment to the Bill is
made.”

Inheritance tax

110 Inheritance tax

Schedule 21 contains provision about inheritance tax.

30Estate duty

111 Gifts to the nation: estate duty

(1) In Schedule 14 to FA 2012 (gifts to the nation), before paragraph 33 insert—

“32A (1) This paragraph applies where a person (“the donor”) makes a
qualifying gift of an object in circumstances where, had the donor
35instead sold the object to an individual at market value, a charge to
estate duty would have arisen under section 40 of FA 1930 on the
proceeds of sale.

(2) At the time when the gift is made, estate duty becomes chargeable
under that section as if the gift were such a sale (subject to any
40limitation imposed by paragraph 33(2)).

(3) In the application of this paragraph to Northern Ireland, the
references to section 40 of FA 1930 are to be read as references to
section 2 of the Finance Act (Northern Ireland) 1931.”

(2) Subsection (3) applies where a person (“the donor”) has, before the day on
5which this Act is passed, made a qualifying gift of an object in circumstances
where, had the donor instead sold the object to an individual at market value,
a charge to estate duty would have arisen under section 40 of FA 1930 on the
proceeds of sale.

(3) No liability to estate duty under section 40 of FA 1930 arises in respect of the
10object on or after the day on which this Act is passed.

(4) In subsection (2) “qualifying gift” has the same meaning as in Schedule 14 to
FA 2012.

(5) In the application of subsections (2) and (3) to Northern Ireland, the references
to section 40 of FA 1930 are to be read as references to section 2 of the Finance
15Act (Northern Ireland) 1931.

Bank levy

112 Bank levy: rates from 1 January 2014

(1) Schedule 19 to FA 2011 (bank levy) is amended as follows.

(2) In paragraph 6 (steps for determining the amount of the bank levy), in sub-
20paragraph (2)—

(a) for “0.065%” substitute “0.078%”, and

(b) for “0.130%” substitute “0.156%”.

(3) In paragraph 7 (special provision for chargeable periods falling wholly or
partly before 1 January 2013)—

(a) 25in sub-paragraph (1) for “2013” substitute “2014”,

(b) in sub-paragraph (2), in the first column of the table in the substituted
Step 7, for “Any time on or after 1 January 2013” substitute “1 January
2013 to 31 December 2013”, and

(c) at the end of that table add—

and in the italic heading immediately before paragraph 7, for “2013” substitute
“2014”.

(4) 35Section 203 of FA 2013 (bank levy rates from 1 January 2014) is repealed.

(5) The amendments made by subsections (2) to (4) are treated as having come into
force on 1 January 2014 (and accordingly the section repealed by subsection (4)
is treated as never having come into force).

(6) Subsections (7) to (13) apply where—

(a) an amount of the bank levy is treated as if it were an amount of
corporation tax chargeable on an entity (“E”) for an accounting period
of E,

(b) the chargeable period in respect of which the amount of the bank levy
5is charged falls (or partly falls) on or after 1 January 2014, and

(c) under the Instalment Payment Regulations, one or more instalment
payments, in respect of the total liability of E for the accounting period,
were treated as becoming due and payable before the commencement
date (“pre-commencement instalment payments”).

(7) 10Subsections (1) to (5) are to be ignored for the purpose of determining the
amount of any pre-commencement instalment payment.

(8) If there is at least one instalment payment, in respect of the total liability of E
for the accounting period, which under the Instalment Payment Regulations is
treated as becoming due and payable on or after the commencement date
15(“post-commencement instalment payments”), the amount of that instalment
payment, or the first of them, is to be increased by the adjustment amount.

(9) If there are no post-commencement instalment payments, a further instalment
payment, in respect of the total liability of E for the accounting period, of an
amount equal to the adjustment amount is to be treated as becoming due and
20payable at the end of the period of 30 days beginning with the commencement
date.

(10) “The adjustment amount” is the difference between—

(a) the aggregate amount of the pre-commencement instalments
determined in accordance with subsection (7), and

(b) 25the aggregate amount of those instalment payments determined
ignoring subsection (7) (and so taking account of subsections (1) to (5)).

(11) In the Instalment Payment Regulations—

(a) in regulations 6(1)(a), 7(2), 8(1)(a) and (2)(a), 9(5), 10(1), 11(1) and 13,
references to regulation 4A, 4B, 4C, 4D, 5, 5A or 5B of those Regulations
30are to be read as including a reference to subsections (6) to (10) (and in
regulation 7(2) “the regulation in question”, and in regulation 8(2) “that
regulation”, are to be read accordingly), and

(b) in regulation 9(3), the reference to those Regulations is to be read as
including a reference to subsections (6) to (10).

(12) 35In section 59D of TMA 1970 (general rule as to when corporation tax is due and
payable), in subsection (5), the reference to section 59E is to be read as
including a reference to subsections (6) to (11).

(13) In this section—

• “the chargeable period” is to be construed in accordance with paragraph
  404 or (as the case may be) 5 of Schedule 19 to FA 2011;

• “the commencement date” means the day on which this Act is passed;

• “the Instalment Payment Regulations” means the Corporation Tax
  (Instalment Payments) Regulations 1998 (S.I. 1998/3175S.I. 1998/3175);

and references to the total liability of E for an accounting period are to be
45construed in accordance with regulation 2(3) of the Instalment Payment
Regulations.