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

(b) Chapter 8 (reduction of supplementary charge: onshore
allowance), and

(c) Chapter 9 (reduction of supplementary charge: cluster area
allowance).”

4 5After section 330 insert—

“330ZA Ordering of allowances

(1) In this section “relieving Chapter” means any of the following—

(a) Chapter 6A (reduction of supplementary charge: investment
allowance);

(b) 10Chapter 8 (reduction of supplementary charge: onshore
allowance);

(c) Chapter 9 (reduction of supplementary charge: cluster area
allowance).

(2) Where a company has allowances under more than one relieving
15Chapter available for reducing the adjusted ring fence profits that are
to be chargeable under section 330(1) for an accounting period, the
company may choose the order in which the relieving Chapters in
question are to be applied.

(3) In any relieving Chapter, “adjusted ring fence profits”, in relation to
20a company and an accounting period, means the adjusted ring fence
profits which would (ignoring all relieving Chapters except those
which the company chooses to apply before that Chapter) be taken
into account in calculating the supplementary charge on the
company under section 330(1) for the accounting period.”

5 25In section 356C (generation of onshore allowance), in subsection (9)(a), for
“section 351” substitute “section 356IB”.

6 Omit section 356DB (companies with both field allowance and onshore
allowance).

7 Before section 356J (but after the heading “Interpretation”) insert—

356IB 30  Authorisation of development”: oil fields

(1) In this Chapter a reference to authorisation of development of an oil
field is a reference to a national authority—

(a) granting a licensee consent for development of the field,

(b) serving on a licensee a programme of development for the
35field, or

(c) approving a programme of development for the field.

(2) In this section—

• “consent for development”, in relation to an oil field, does not
  include consent which is limited to the purpose of testing the
  40characteristics of an oil-bearing area,

• “development”, in relation to an oil field, means winning oil
  from the field otherwise than in the course of searching for oil
  or drilling wells, and

• “national authority” means—

  (a)

  45the Secretary of State, or

  (b)

  a Northern Ireland department.”

8 In section 356JB (definitions for Chapter 8), in the definition of “adjusted ring
fence profits”, for the words from “means” to the end substitute “is to be read
in accordance with section 330ZA”.

9 (1) Schedule 4 (index of defined expressions) is amended as follows.

(2) 5Omit the entries for—

• “additionally-developed oil field (in Chapter 7 of Part 8)”,

• “adjusted ring fence profits (in Chapter 7 of Part 8)”,

• “adjusted ring fence profits (in Chapter 8 of Part 8)”,

• “authorisation day (in Chapter 7 of Part 8)”,

• 10“authorisation of development of an oil field (in Chapter 7 of Part 8)”,

• “eligible oil field (in Chapter 7 of Part 8)”,

• “licensee (in Chapter 7 of Part 8)”,

• “new oil field (in Chapter 7 of Part 8)”,

• “qualifying oil field (in Chapter 7 of Part 8)”,

• 15“relevant income (in Chapter 7 of Part 8)”,

• “small oil field (in Chapter 7 of Part 8)”,

• “total field allowance for a new oil field (in Chapter 7 of Part 8)”,

• “total field allowance for an additionally-developed oil field”,

• “ultra heavy oil field (in Chapter 7 of Part 8)”, and

• 20“ultra high pressure/high temperature oil field (in Chapter 7 of Part
  8)”.

(3) At the appropriate places insert—

10Part 2 Commencement

10 (1) The amendments made by Part 1 of this Schedule have effect in relation to
accounting periods ending on or after 1 April 2015.

(2) Sub-paragraph (1) is subject to sub-paragraphs (3) and (4).

(3) 15So far as they relate to cluster area allowance under Chapter 9 of Part 8 of
CTA 2010 (as inserted by Schedule 13) the amendments made by Part 1 of
this Schedule have effect in relation to expenditure incurred on or after 3
December 2014.

(4) So far as they relate to investment allowance under Chapter 6A of Part 8 of
20CTA 2010 (as inserted by Schedule 12) in respect of oil fields not falling
within paragraph 6(1)(a) or (b) of that Schedule, the amendments made by
Part 1 of this Schedule have effect subject to paragraphs 7 and 8 of that
Schedule.

Section 65

SCHEDULE 15 25Landfill tax: material consisting of fines

1 Part 3 of FA 1996 (landfill tax) is amended as follows.

2 (1) Section 42 (amount of tax charged on a taxable disposal) is amended as
follows.

(2) In subsection (2), after “qualifying material” insert “or qualifying fines”.

(3) 30After subsection (3) insert—

“(3A) Qualifying fines are a mixture of—

(a) fines that consist of such qualifying material as is prescribed
by order, and

(b) fines that consist of material that is not qualifying material,

35that satisfies all the requirements prescribed in an order.

(3B) An order under subsection (3A) relating to the mixture of fines may
require, in particular—

(a) that fines that consist of material that is not qualifying
material do not exceed a prescribed proportion;

(b) 5that the mixture of fines does not include prescribed
materials or prescribed descriptions of materials;

(c) that the mixture of fines is such that, if subjected to a
prescribed test, it would give a prescribed result;

(d) that the mixture of fines originates, or does not originate, in a
10prescribed way.”

(4) In subsection (4)(a), after “listed” insert “or what fines are to be qualifying
fines”.

(5) In subsection (6), after “listed,” insert “or what fines are to be qualifying
fines,”.

3 15In section 63 (qualifying material: special provisions), after subsection (4)
insert—

“(4A) Subsections (2) to (4) do not apply where the material disposed of
consists of qualifying fines.”

4 After section 63 insert—

“63A 20Qualifying fines: special provisions

(1) This section applies for the purposes of section 42.

(2) An order may provide that fines must not be treated as qualifying
fines unless prescribed conditions are met.

(3) A condition may relate to any matter the Treasury think fit.

(4) 25The conditions may include conditions making provision about—

(a) the production of a document which includes a statement of
the nature of the fines;

(b) carrying out a specified test on fines proposed to be disposed
of as qualifying fines;

(c) 30the frequency with which tests are to be carried out on any
fines proposed to be disposed of as qualifying fines;

(d) the frequency with which tests are to be carried out on any
fines that come from a particular source and are proposed to
be disposed of as qualifying fines;

(e) 35the steps to be taken by operators of landfill sites in relation
to persons sending fines to be disposed of as qualifying fines.

(5) The conditions may enable provision to be made by notices issued by
the Commissioners in accordance with such provision as is made in
the conditions.

(6) 40A notice issued as described in subsection (5) may be revoked by a
notice issued in the same way.

(7) If an order includes provision falling within subsection (4)(b), the
Commissioners may direct a person to carry out such a test in
relation to any fines proposed to be disposed of as qualifying fines.

(8) In this section “specified” means specified in—

(a) a condition prescribed under subsection (2), or

(b) a notice issued as described in subsection (5).”

5 In section 70(1) (interpretation), at the appropriate place insert—

• 5““fines” means particles produced by a waste treatment process
  that involves an element of mechanical treatment;”.

6 (1) In section 71 (orders and regulations), subsection (7) is amended as follows.

(2) After paragraph (a) insert—

“(aa) an order under section 42(3A) providing for fines which
10would otherwise be qualifying fines not to be qualifying
fines;”.

(3) After paragraph (c) insert—

“(cza) an order under section 63A(2) other than one which provides
only that an earlier order under section 63A(2) is not to apply
15to fines;”.

7 (1) Schedule 5 (provision about information etc) is amended as follows.

(2) In the heading to Part 1, after “Information” insert “and samples”.

(3) After paragraph 2A insert—

“Information: qualifying fines

2B (1) 20Regulations may make provision about giving the Commissioners
information about fines proposed to be disposed of, or disposed
of, as qualifying fines.

(2) Regulations under this paragraph may require a person to notify
the Commissioners if the result of a test carried out on fines
25indicates that the fines are not qualifying fines.

Samples: qualifying fines

2C (1) Regulations may require persons—

(a) where a sample is taken from a quantity of fines in order to
carry out a test on the fines, to retain a prescribed amount
30of that sample;

(b) to preserve fines retained under paragraph (a) for such
period not exceeding three months as may be specified in
the regulations.

(2) A duty under regulations under this paragraph to preserve fines
35may be discharged by taking such steps to preserve them as the
Commissioners may specify in writing.”

(4) In paragraph 10 (power to take samples), after sub-paragraph (1) insert—

“(1A) An authorised person, if it appears to the person necessary for the
protection of the revenue against mistake or fraud, may at any
40time take, from material which the person has reasonable cause to
believe is an amount of fines retained under paragraph 2C(1)(a),
such samples as the person may require with a view to

determining how the fines tested ought to be or to have been
treated for the purposes of tax.”

(5) In paragraph 22 (information)—

(a) in sub-paragraph (1)(b), after “2” insert “or 2A”;

(b) 5in sub-paragraph (3), for the words from “who” to “liable” substitute
“who—

“(a) fails to preserve records in compliance with any
provision of regulations made under paragraph 2
(read with that paragraph and any direction given
10under the regulations), or

(b) fails to preserve records in compliance with any
provision of regulations made under paragraph 2A
(read with that paragraph and any direction given
under the regulations),

15is liable”.

8 The amendments made by this Schedule have effect in relation to disposals
that are—

(a) made in England and Wales or Northern Ireland, and

(b) made (or treated as made) on or after 1 April 2015.

Section 98

20SCHEDULE 16 Recovery of unpaid diverted profits tax due from non-UK resident company

Part 1 Imposing liability on UK representative of non-UK resident company

1 (1) Chapter 6 of Part 22 of CTA 2010 (collection etc of tax from UK
25representatives of non-UK resident companies) has effect as if the
enactments referred to in section 969(1) of that Act included enactments
relating to diverted profits tax so far as they make provision for or in
connection with the charging, collection and recovery of diverted profits tax
or of interest on that tax.

(2) 30In its application in accordance with sub-paragraph (1), that Chapter has
effect subject to the following modifications.

(3) In a case where section 86 applies in relation to company, that Chapter
applies in relation to the avoided PE in relation to that company as it would
apply to a permanent establishment in the United Kingdom through which
35the company carries on a trade.

(4) In section 969(3) of that Act references to “chargeable profits of the company
attributable to that establishment” are to be read as references to “taxable
diverted profits arising to the company”.

(5) In section 971 of that Act references to the giving or service of a notice
40includes a reference to the issuing of a notice.

Part 2 Recovery of diverted profits tax from related companies

Cases in which this Part applies

2 (1) This Part of this Schedule applies if—

(a) 5an amount of diverted profits tax has been charged on a company for
an accounting period,

(b) the whole or any part of that amount is unpaid at the end of the due
and payable date, and

(c) the company is non-UK resident.

(2) 10In this Part of this Schedule “the taxpayer company” means the company
mentioned in sub-paragraph (1).

Meaning of “the relevant period”

3 In this Part of this Schedule “the relevant period”, in relation to an amount
of unpaid diverted profits tax for an accounting period of the taxpayer
15company, means the period—

(a) beginning 12 months before the start of the accounting period, and

(b) ending when the unpaid tax became payable.

Meaning of “related company”

4 (1) A company is a “related company”, for the purposes of this Part of this
20Schedule, if, at any time in the relevant period, it was a member—

(a) of the same group as the taxpayer company,

(b) of a consortium which at that time owned the taxpayer company, or

(c) of the same group as a company which at that time was a member of
a consortium owning the taxpayer company.

(2) 25For the purposes of sub-paragraph (1)(a) two companies are members of the
same group if—

(a) one is the 51% subsidiary of the other, or

(b) both are 51% subsidiaries of a third company.

(3) For the purposes of sub-paragraph (1)(c), two companies are members of the
30same group if they are members of the same group of companies within the
meaning of Part 5 of CTA 2010 (group relief).

(4) For the purposes of this Part of this Schedule—

(a) a company is a member of a consortium if it is a member of a
consortium within the meaning of Part 5 of CTA 2010, and

(b) 35a company is owned by a consortium if it is owned by a consortium
within the meaning of that Part.

(5) In this paragraph “51% subsidiary” has the meaning given by section 1154 of
CTA 2010.

Notice requiring payment of unpaid tax

5 (1) 40An officer of Revenue and Customs may serve a notice on a related company
requiring it, within 30 days of the service of the notice, to pay—

(a) in a case which is not a consortium case, the amount of the unpaid
tax, or

(b) in a consortium case, the proportion of that amount found under
paragraph 7.

(2) 5The notice must state—

(a) the amount of diverted profits tax charged on the taxpayer company
for the accounting period in question that remains unpaid,

(b) the date when it first became payable, and

(c) the amount which is to be paid by the company on which the notice
10is served.

(3) The notice has effect—

(a) for the purposes of the recovery from that company of the amount
required to be paid and of interest on that amount, and

(b) for the purposes of appeals,

15as if it were a charging notice and that amount were an amount of diverted
profits tax charged on that company.

(4) In this Part of this Schedule “consortium case” means a case where the
related company is not within paragraph 4(1)(a).

Time limit for giving notice

6 20A notice under this Part of this Schedule must be served before the end of
the period of 3 years beginning with the date when the charging notice or
supplementary charging notice imposing the charge to tax was issued.

Amount payable in consortium case

7 (1) In a consortium case, the amount that the related company may be required
25to pay by notice under this Part of this Schedule is the proportion of the
unpaid tax corresponding—

(a) if the company is only within paragraph 4(1)(b), to the share which
the company has had in the consortium for the relevant period,

(b) if the company is only within paragraph 4(1)(c), to the share which
30companies that have been members of the same group of companies
as the company have had in the consortium for the relevant period,
or

(c) if the company is within paragraph 4(1)(b) and (c), to whichever is
the greater of the amounts given by paragraph (a) and (b).

(2) 35For the purposes of this paragraph, a member’s share in a consortium, in
relation to the relevant period, is whichever is the lowest in that period of the
percentages specified in sub-paragraph (3).

(3) Those percentages are—

(a) the percentage of the ordinary share capital of the taxpayer company
40which is beneficially owned by the member,

(b) the percentage to which the member is beneficially entitled of any
profits available for distribution to equity holders of the taxpayer
company, and

(c) the percentage to which the member would be beneficially entitled
45of any assets of the taxpayer company available for distribution to its
equity holders on a winding up.

(4) If any of the percentages mentioned in sub-paragraph (3) has fluctuated in
the relevant period, the average percentage over the period is to be taken.

(5) Chapter 6 of Part 5 of CTA 2010 (equity holders and profits or assets
available for distribution) applies for the purposes of sub-paragraph (3) as it
5applies for the purposes of sections 143(3)(b) and (c) and 144(3)(b) and (c) of
that Act.

Part 2: supplementary

8 (1) A company that has paid an amount in pursuance of a notice under this Part
of this Schedule may recover that amount from the taxpayer company.

(2) 10A payment in pursuance of a notice under this Part of this Schedule is not
allowed as a deduction in calculating income, profits or losses for any tax
purposes.

Section 117

SCHEDULE 17 Disclosure of tax avoidance schemes

15Requirement to update DOTAS information

1 After section 310B of FA 2004 insert—

“310C Duty of promoters to provide updated information

(1) This section applies where—

(a) information has been provided under section 308 about any
20notifiable arrangements, or proposed notifiable
arrangements, to which a reference number is allocated
under section 311, and

(b) after the provision of the information, there is a change in
relation to the arrangements of a kind mentioned in
25subsection (2).

(2) The changes referred to in subsection (1)(b) are—

(a) a change in the name by which the notifiable arrangements,
or proposed notifiable arrangements, are known;

(b) a change in the name or address of any person who is a
30promoter in relation to the notifiable arrangements or, in the
case of proposed notifiable arrangements, the notifiable
proposal.

(3) A person who is a promoter in relation to the notifiable
arrangements or, in the case of proposed notifiable arrangements,
35the notifiable proposal must inform HMRC of the change mentioned
in subsection (1)(b) within 30 days after it is made.

(4) Subsections (5) and (6) apply for the purposes of subsection (3)
where there is more than one person who is a promoter in relation to
the notifiable arrangements or proposal.

(5) 40If the change in question is a change in the name or address of a
person who is a promoter in relation to the notifiable arrangements

or proposal, it is the duty of that person to comply with subsection
(3).

(6) If a person provides information in compliance with subsection (3),
the duty imposed by that subsection on any other person, so far as
5relating to the provision of that information, is discharged.”

2 In section 316 of that Act (information to be provided in form and manner
specified by HMRC), in subsection (2), after “310A,” insert “310C,”.

3 In section 98C of TMA 1970 (notification under Part 7 of FA 2004), in
subsection (2), after paragraph (ca) insert—

“(cb) 10section 310C (duty of promoters to provide updated
information),”.

Arrangements to be given reference number

4 In section 311(1)(a) of FA 2004 (period for allocation of reference number to
arrangements) for “30 days” substitute “90 days”.

15Notification of employees

5 (1) Section 312A of FA 2004 (duty of client to notify parties of number) is
amended as follows.

(2) After subsection (2) insert—

“(2A) Where the client—

(a) 20is an employer, and

(b) by reason of the arrangements or proposed arrangements,
receives or might reasonably be expected to receive an
advantage, in relation to any relevant tax, in relation to the
employment of one or more of the client’s employees,

25the client must, within the prescribed period, provide to each of the
client’s relevant employees prescribed information relating to the
reference number.”

(3) For subsection (3) substitute—

“(3) For the purposes of this section—

(a) 30a tax is a “relevant tax”, in relation to arrangements or
arrangements proposed in a proposal of any description, if it
is prescribed in relation to arrangements or proposals of that
description by regulations under section 306;

(b) “relevant employee” means an employee in relation to whose
35employment the client receives or might reasonably be
expected to receive the advantage mentioned in subsection
(2A);

(c) “employee” includes a former employee;

(d) a reference to employment includes holding an office (and
40references to “employee” and “employer” are to be construed
accordingly).”

(4) In subsection (4), for “the duty under subsection (2)” substitute “one or both
of the duties under this section”.

(5) In subsection (5), after “subsection (2)” insert “or (2A)”.