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Finance (No. 2) Bill (HC Bill 193)

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 (No. 2) Bill are compatible with the
Convention rights.

Contents

    This Bill is divided into two volumes. Volume I contains the Clauses. Volume II
    contains the Schedules to the Bill.

  1. Part 1

    Income tax, corporation tax and capital gains tax

    1. Chapter 1

      Charge, rates etc

      1. Income tax

        1. 1. Charge and rates for 2015-16

        2. 2. Limits and allowances for 2015-16

        3. 3. Personal allowances for 2015-16

        4. 4. Basic rate limit from 2016

        5. 5. Personal allowance from 2016

      2. Corporation tax

        1. 6. Charge for financial year 2016

    2. Chapter 2

      Income tax: general

      1. 7. Cars: the appropriate percentage for 2017-18

      2. 8. Cars: the appropriate percentage for subsequent tax years

      3. 9. Diesel cars: the appropriate percentage for 2015-16

      4. 10. Zero-emission vans

      5. 11. Exemption for amounts which would otherwise be deductible

      6. 12. Abolition of dispensation regime

      7. 13. Extension of benefits code except in relation to certain ministers of religion

      8. 14. Exemption for board or lodging provided to carers

      9. 15. Lump sums provided under armed forces early departure scheme

      10. 16. Bereavement support payment: exemption from income tax

      11. 17. PAYE: benefits in kind

      12. 18. Employment intermediaries: determination of penalties

      13. 19. Arrangements offering a choice of capital or income return

      14. 20. Intermediaries and Gift Aid

      15. 21. Disguised investment management fees

      16. 22. Miscellaneous loss relief

      17. 23. Exceptions from duty to deduct tax: qualifying private placements

      18. 24. Increased remittance basis charge

    3. Chapter 3

      Corporation tax: general

      1. 25. Loan relationships: repeal of certain provisions relating to late interest etc

      2. 26. Intangible fixed assets: goodwill etc acquired from a related party

      3. 27. Amount of relief for expenditure on research and development

      4. 28. Expenditure on research and development: consumable items

      5. 29. Film tax relief

      6. 30. Reliefs for makers of children’s television programmes

      7. 31. Television tax relief

      8. 32. Restrictions applying to certain deductions made by banking companies

      9. 33. Tax avoidance involving carried-forward losses

    4. Chapter 4

      Other provisions

      1. Pensions

        1. 34. Pension flexibility: annuities etc

      2. Flood and coastal defence

        1. 35. Relief for contributions to flood and coastal erosion risk management projects

      3. Investment reliefs

        1. 36. Investment reliefs: excluded activities

      4. Capital gains tax

        1. 37. Disposals of UK residential property interests by non-residents etc

        2. 38. Relevant high value disposals: gains and losses

        3. 39. Private residence relief

        4. 40. Wasting assets

        5. 41. Entrepreneurs’ relief: associated disposals

        6. 42. Entrepreneurs’ relief: exclusion of goodwill in certain circumstances

        7. 43. Entrepreneurs’ relief: trading company etc

        8. 44. Deferred entrepreneurs’ relief on invested gains

      5. Capital allowances

        1. 45. Zero-emission goods vehicles

        2. 46. Plant and machinery allowances: anti-avoidance

      6. Oil and gas

        1. 47. Extension of ring fence expenditure supplement

        2. 48. Reduction in rate of supplementary charge

        3. 49. Supplementary charge: investment allowance

        4. 50. Supplementary charge: cluster area allowance

        5. 51. Amendments relating to investment allowance and cluster area allowance

  2. Part 2

    Excise duties and other taxes

    1. Petroleum revenue tax

      1. 52. Reduction in rate of petroleum revenue tax

    2. Alcohol

      1. 53. Rates of alcoholic liquor duties

      2. 54. Wholesaling of controlled liquor

    3. Tobacco

      1. 55. Rates of tobacco products duty

      2. 56. Excise duty on tobacco: anti-forestalling restrictions

    4. Air passenger duty

      1. 57. Air passenger duty: exemption for children in standard class

    5. Vehicle excise duty

      1. 58. VED rates for light passenger vehicles and motorcycles

      2. 59. VED: extension of old vehicles exemption from 1 April 2016

    6. Gaming duty

      1. 60. Rates of gaming duty

    7. Aggregates levy

      1. 61. Tax credit in Northern Ireland

    8. Climate change levy

      1. 62. Climate change levy: main rates from 1 April 2016

      2. 63. Combined heat and power stations

    9. Landfill tax

      1. 64. Landfill tax: rates from 1 April 2016

      2. 65. Landfill tax: material consisting of fines

    10. Value added tax

      1. 66. VAT: refunds to certain charities

      2. 67. VAT: refunds to strategic highways companies

    11. Stamp duty land tax

      1. 68. SDLT: alternative property finance relief

      2. 69. SDLT: multiple dwellings relief

    12. Annual tax on enveloped dwellings

      1. 70. ATED: annual chargeable amount

      2. 71. ATED: taxable value

      3. 72. ATED: interests held by connected persons

      4. 73. ATED: returns

    13. Inheritance tax

      1. 74. Inheritance tax: exemption for decorations and other awards

      2. 75. Inheritance tax: exemption for emergency service personnel etc

    14. The bank levy

      1. 76. The bank levy: rates from 1 April 2015

  3. Part 3

    Diverted profits tax

    1. Introduction and overview

      1. 77. Introduction to the tax

      2. 78. Overview of Part 3

    2. Charge to tax

      1. 79. Charge to tax

    3. Involvement of entities or transactions lacking economic substance

      1. 80. UK company: involvement of entities or transactions lacking economic
        substance

      2. 81. Non-UK company: involvement of entities or transactions lacking economic
        substance

    4. Calculation of taxable diverted profits: section 80 or 81 cases

      1. 82. Calculation of taxable diverted profits in section 80 or 81 case: introduction

      2. 83. Section 80 or 81 cases where no taxable diverted profits arise

      3. 84. Section 80 or 81: calculation of profits by reference to the actual provision

      4. 85. Section 80 or 81: calculation of profits by reference to the relevant alternative
        provision

    5. Avoidance of a UK taxable presence

      1. 86. Non-UK company avoiding a UK taxable presence

      2. 87. Exception for companies with limited UK-related sales or expenses

    6. Calculation of taxable diverted profits: section 86 cases

      1. 88. Calculation of taxable diverted profits in section 86 case: introduction

      2. 89. Section 86: calculation of profits where only tax avoidance condition is met

      3. 90. Section 86: mismatch condition is met: calculation of profits by reference to
        the actual provision

      4. 91. Section 86: mismatch condition is met: calculation of profits by reference to
        the relevant alternative provision

    7. Duty to notify if within scope

      1. 92. Duty to notify if potentially within scope of tax

    8. Process for imposing charge

      1. 93. Preliminary notice

      2. 94. Representations

      3. 95. Charging notice

      4. 96. Section 80 or 81 cases: estimating profits for preliminary and charging notices

      5. 97. Section 86 cases: estimating profits for preliminary and charging notices

    9. Payment and recovery of tax

      1. 98. Payment of tax

      2. 99. Diverted profits tax ignored for tax purposes

      3. 100. Credit for UK or foreign tax on same profits

    10. Review and appeals

      1. 101. HMRC review of charging notice

      2. 102. Appeal against charging notice or supplementary charging notice

    11. Administration of tax

      1. 103. Responsibility for collection and management

      2. 104. Penalties etc

      3. 105. Information and inspection powers etc

    12. Interpretation

      1. 106. “The participation condition”

      2. 107. “Effective tax mismatch outcome”

      3. 108. Provision supplementing section 107

      4. 109. “Excepted loan relationship outcome”

      5. 110. “The insufficient economic substance condition”

      6. 111. “Transaction” and “series of transactions”

      7. 112. Treatment of a person who is a member of a partnership

      8. 113. “Accounting period” and “corresponding accounting period”

      9. 114. Other defined terms in Part 3

    13. Final provisions

      1. 115. Application of other enactments to diverted profits tax

      2. 116. Commencement and transitional provision

  4. Part 4

    Other provisions

    1. Anti-avoidance

      1. 117. Disclosure of tax avoidance schemes

      2. 118. Accelerated payments and group relief

      3. 119. Promoters of tax avoidance schemes

      4. 120. Penalties in connection with offshore matters and offshore transfers

      5. 121. Penalties in connection with offshore asset moves

    2. Other tax-related matters

      1. 122. Country-by-country reporting

      2. 123. Status for tax purposes of certain bodies

    3. Government stock

      1. 124. Redemption of undated government stocks

  5. Part 5

    Final provisions

    1. 125. Commencement orders and regulations

    2. 126. Interpretation

    3. 127. Short title

    1. Schedule 1

      Extension of benefits code except in relation to certain
      ministers of religion

      1. Part 1

        Amendments of ITEPA 2003

      2. Part 2

        Amendments of other enactments

    2. Schedule 2

      Restrictions applying to certain deductions made by banking
      companies

      1. Part 1

        Main provisions

      2. Part 2

        Consequential amendments

      3. Part 3

        Commencement and anti-forestalling provision

    3. Schedule 3

      Tax avoidance involving carried-forward losses

      1. Part 1

        Amendments of CTA 2010

      2. Part 2

        Commencement

    4. Schedule 4

      Pension flexibility: annuities etc

      1. Part 1

        Death benefits for nominees, successors and dependants

      2. Part 2

        Income tax on beneficiaries’ annuities etc

    5. Schedule 5

      Relief for contributions to flood and coastal erosion risk
      management projects

    6. Schedule 6

      Investment reliefs: excluded activities

      1. Part 1

        Part 5B of ITA 2007: amendment coming into force on passing
        of Act

      2. Part 2

        Part 5 of ITA 2007: excluded activities from 6 April 2015

      3. Part 3

        Part 6 of ITA 2007: excluded activities from 6 April 2015

      4. Part 4

        Further amendments of Parts 5 to 6 of ITA 2007

    7. Schedule 7

      Disposals of UK residential property interests by non-
      residents etc

      1. Part 1

        Amendments of TCGA 1992

      2. Part 2

        Other amendments

      3. Part 3

        Commencement

    8. Schedule 8

      Relevant high value disposals: gains and losses

    9. Schedule 9

      Private residence relief

    10. Schedule 10

      Plant and machinery allowances: anti-avoidance

    11. Schedule 11

      Extension of ring fence expenditure supplement

    12. Schedule 12

      Supplementary charge: investment allowance

      1. Part 1

        Amendments of Part 8 of CTA 2010

      2. Part 2

        Commencement and transitional provision

    13. Schedule 13

      Supplementary charge: cluster area allowance

      1. Part 1

        Amendments of Part 8 of CTA 2010

      2. Part 2

        Transitional provision

    14. Schedule 14

      Investment allowance and cluster area allowance: further
      amendments

      1. Part 1

        Amendments of CTA 2010

      2. Part 2

        Commencement

    15. Schedule 15

      Landfill tax: material consisting of fines

    16. Schedule 16

      Recovery of unpaid diverted profits tax due from non-UK
      resident company

      1. Part 1

        Imposing liability on UK representative of non-UK resident
        company

      2. Part 2

        Recovery of diverted profits tax from related companies

    17. Schedule 17

      Disclosure of tax avoidance schemes

    18. Schedule 18

      Accelerated payments: group relief

    19. Schedule 19

      Promoters of tax avoidance schemes

    20. Schedule 20

      Penalties in connection with offshore matters and offshore
      transfers

    21. Schedule 21

      Penalties in connection with offshore asset moves