Finance Bill (HC Bill 57)

(d) specifying circumstances in which amounts standing to the credit of
an account are to be treated as not standing to the credit of the
account for the purposes of a hold notice or deduction notice;

(e) about fees a deposit-taker may charge a person in respect of whom a
5notice is given under this Part of this Schedule towards
administrative costs in complying with that notice;

(f) with respect to priority as between a notice under this Part of this
Schedule and—

(i) any other such notice, or

(ii) 10any notice or order under any other enactment.

Regulations

20 (1) Regulations under this Part of this Schedule may—

(a) make different provision for different purposes,

(b) include supplementary, incidental and consequential provision, or

(c) 15make transitional provision and savings.

(2) Regulations under this Part of this Schedule are to be made by statutory
instrument.

(3) A statutory instrument containing only regulations within sub-paragraph
(4) is subject to annulment in pursuance of a resolution of the House of
20Commons.

(4) The regulations within this sub-paragraph are—

(a) regulations which prescribe information for the purposes of
paragraph 3(2) or any provision of paragraph 7,

(b) regulations under paragraph 4(10),

(c) 25regulations under paragraph (a), (b), (c), (d), (g) or (h) of paragraph
18(2), or

(d) regulations under paragraph 19(2).

(5)
Any other statutory instrument containing regulations under this Part of
this Schedule may not be made unless a draft of the instrument has been laid
30before, and approved by a resolution of, the House of Commons.

Joint accounts

21 In this Part of this Schedule a reference to an account held by a person
includes a reference to a joint account held by that person and one or more
other persons.

35Defined terms

22 (1) In this Part of this Schedule—

• “affected account” has the meaning given by paragraph 5(7);

• “the Commissioners” means the Commissioners for Her Majesty’s
  Revenue and Customs;

• 40“contract settlement” means an agreement made in connection with
  any person’s liability to make a payment to the Commissioners
  under or by virtue of an enactment;

• “deduction notice” has the meaning given by paragraph 12;

Finance BillPage 201

• “deposit-taker” means a person who may lawfully accept deposits in
  the United Kingdom in the course of a business (see sub-paragraph
  (2));

• “HMRC” means Her Majesty’s Revenue and Customs;

• 5“hold notice” has the meaning given by paragraph 4;

• “information notice” has the meaning given by paragraph 3;

• “interested third party”, in relation to a relevant account, has the
  meaning given by paragraph 7(11);

• “joint account”, in relation to a person, means an account held by the
  10person and one or more other persons;

• “notice” means notice in writing;

• “notified sum”, in relation to a hold notice, has the meaning given by
  paragraph 7(8);

• “prescribed” means prescribed by regulations made by the
  15Commissioners;

• “relevant account” (in relation to a hold notice) has the meaning given
  by paragraph 5(6);

• “relevant sum”, in relation to a person, has the meaning given by
  paragraph 2(1);

• 20“the safeguarded amount” (in relation to a hold notice) means the
  amount specified as the safeguarded amount in the notice (see
  paragraph 4(2)(c));

• “the specified amount” (in relation to a hold notice) means the amount
  specified as such in the notice (see paragraph 4(2)(b));

• 25“suspense account” has the meaning given by paragraph 5(3)(b)(i);

• “the tribunal” means the First-tier Tribunal;

• “working day” means a day other than—

  (a)

  Saturday or Sunday,

  (b)

  Christmas Eve, Christmas Day or Good Friday, or

  (c)

  30a day which is a bank holiday under the Banking and
  Financial Dealings Act 1971 in England and Wales or
  Northern Ireland.

(2) The definition of “deposit-taker” in sub-paragraph (1) is to be read with—

(a) section 22 of the Financial Services and Markets Act 2000 (regulated
35activities),

(b) any relevant order under that section, and

(c) Schedule 2 to that Act.

Extent

23 This Part of this Schedule extends to England and Wales and Northern
40Ireland.

Part 2 Miscellaneous amendments

TMA 1970

24 In section 28C of TMA 1970 (determination of tax where no return

delivered), after subsection (4) insert—

“(4A) Where—

(a) action is being taken under Part 1 of Schedule 8 to the Finance
(No. 2) Act 2015 (enforcement by deduction from accounts)
5for the recovery of an amount (“the original amount”) of tax
charged by a determination under this section, and

(b) before that action is concluded, the determination is
superseded by such a self-assessment as is mentioned in
subsection (3),

10that action may be continued as if it were action for the purposes of
the recovery of so much of the tax charged by the self-assessment as
is due and payable, has not been paid and does not exceed the
original amount.””

Insolvency Act 1986

25 15The Insolvency Act 1986 is amended as follows.

26 In section 126 (power to stay or restrain proceedings against company), after
subsection (2) insert—

“(3) Subsection (1) applies in relation to any action being taken in respect
of the company under Part 1 of Schedule 8 to the Finance (No. 2) Act
202015 (enforcement by deduction from accounts) as it applies in
relation to any action or proceeding mentioned in paragraph (b) of
that subsection.””

27 In section 128 (avoidance of attachments, etc), after subsection (2) insert—

“(3) In subsection (1) “attachment” includes a hold notice or a deduction
25notice under Part 1 of Schedule 8 to the Finance (No. 2) Act 2015
(enforcement by deduction from accounts) and, if subsection (1) has
effect in relation to a deduction notice, it also has effect in relation to
the hold notice to which the deduction notice relates (whenever the
hold notice was given).””

28 30In section 130 (consequences of winding-up order), after subsection (3)
insert—

“(3A) In subsections (2) and (3), the reference to an action or proceeding
includes action in respect of the company under Part 1 of Schedule 8
to the Finance (No. 2) Act 2015 (enforcement by deduction from
35accounts).””

29 (1) Section 176 (preferential charge on goods distrained) is amended as follows.

(2) For subsection (2) substitute—

“(2) Subsection (2A) applies where—

(a) any person (whether or not a landlord or person entitled to
40rent) has distrained upon the goods or effects of the
company, or

(b) Her Majesty’s Revenue and Customs has been paid any
amount from an account of the company under Part 1 of
Schedule 8 to the Finance (No. 2) Act 2015 (enforcement by
45deduction from accounts),

in the period of 3 months ending with the date of the winding-up
order.

(2A) Where this subsection applies—

(a) in a case within subsection (2)(a), the goods or effects, or the
5proceeds of their sale, and

(b) in a case within subsection (2)(b), the amount in question,

is charged for the benefit of the company with the preferential debts
of the company to the extent that the company’s property is for the
time being insufficient for meeting those debts.””

(3) 10In subsection (3) for “(2)” substitute “(2A)”.

(4) Accordingly, in the heading for the section, after “distrained” insert “, etc”.

30 In section 183 (effect of execution or attachment (England and Wales)), after
subsection (4) insert—

“(4A) For the purposes of this section, Her Majesty’s Revenue and
15Customs is to be regarded as having attached a debt due to a
company if it has taken action under Part 1 of Schedule 8 to the
Finance (No. 2) Act 2015 (enforcement by deduction for accounts) as
a result of which an amount standing to the credit of an account held
by the company is—

(a) 20subject to arrangements made under paragraph 5(3) of that
Schedule, or

(b) the subject of a deduction notice under paragraph 12 of that
Schedule.””

31 In section 346 (enforcement procedures), after subsection (1) insert—

“(1A) 25For the purposes of this section, Her Majesty’s Revenue and
Customs is to be regarded as having attached a debt due to a person
if it has taken action under Part 1 of Schedule 8 to the Finance (No. 2)
Act 2015 (enforcement by deduction from accounts) as a result of
which an amount standing to the credit of an account held by that
30person is—

(a) subject to arrangements made under paragraph 5(3) of that
Schedule, or

(b) the subject of a deduction notice under paragraph 12 of that
Schedule.””

32 (1) 35In section 347 (distress, etc)—

(a) for subsection (3) substitute—

“(3) Subsection (3A) applies where—

(a) any person (whether or not a landlord or person
entitled to rent) has distrained upon the goods or
40effects of an individual who is adjudged bankrupt
before the end of the period of 3 months beginning
with the distraint, or

(b) Her Majesty’s Revenue and Customs has been paid
any amount from an account of an individual under
45Part 1 of Schedule 8 to the Finance (No. 2) Act 2015
(enforcement by deduction from accounts) and the

individual is adjudged bankrupt before the end of the
period of 3 months beginning with the payment.

(3A) Where this subsection applies—

(a) in a case within subsection (3)(a), the goods or effects,
5or the proceeds of their sale, and

(b) in a case within subsection (3)(b), the amount in
question,

is charged for the benefit of the bankrupt’s estate with the
preferential debts of the bankrupt to the extent that the
10bankrupt’s estate is for the time being insufficient for meeting
them.”;”

(b) in subsection (4), for “(3)” substitute “(3A)”.

(2) In paragraph 40(3) of Schedule 19 to the Enterprise and Regulatory Reform
Act 2013 (which amends section 347(3) of the Insolvency Act 1986 to
15substitute “made” for “adjudged”), the reference to subsection (3) of section
347 is to be read as a reference to the version of subsection (3) substituted by
sub-paragraph (1) of this paragraph.

Insolvency (Northern Ireland) Order 1989

33 The Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)S.I. 1989/2405 (N.I. 19) is
20amended as follows.

34 In Article 106 (power to stay or restrain proceedings against company), after
paragraph (2) insert—

“(3) Paragraph (1) applies in relation to any action being taken in respect
of the company under Part 1 of Schedule 8 to the Finance (No. 2) Act
252015 (enforcement by deduction from accounts) as it applies in
relation to any action or proceeding mentioned in sub-paragraph (b)
of that paragraph.””

35 In Article 108 (avoidance of sequestration or distress)—

(a) the existing text becomes paragraph (1), and

(b) 30after that paragraph insert—

“(2) In paragraph (1) the reference to “sequestration or distress”
includes a hold notice or a deduction notice under Part 1 of
Schedule 8 to the Finance (No. 2) Act 2015 (enforcement by
deduction from accounts) and, if paragraph (1) has effect in
35relation to a deduction notice, it also has effect in relation to
the hold notice to which it relates (whenever the hold notice
was given).””

36 In Article 110 (consequences of winding-up order), after paragraph (3)
insert—

“(3A) 40In paragraphs (2) and (3), the reference to an action or proceeding
includes action in respect of the company under Part 1 of Schedule 8
to the Finance (No. 2) Act 2015 (enforcement by deduction from
accounts).””

37 (1) Article 150 (preferential charge on goods distrained) is amended as follows.

(2) For paragraph (2) substitute—

“(2) Paragraph (2A) applies where—

(a) any person has distrained upon the goods or effects of the
company, or

(b) 5Her Majesty’s Revenue and Customs has been paid any
amount from an account of the company under Part 1 of
Schedule 8 to the Finance (No. 2) Act 2015 (enforcement by
deduction from accounts),

within the 3 months immediately preceding the date of the winding-
10up order.

(2A) Where this paragraph applies—

(a) in a case within paragraph (2)(a), the goods or effects, or the
proceeds of their sale, and

(b) in a case within paragraph (2)(b), the amount in question,

15is charged for the benefit of the company with the preferential debts
of the company to the extent that the company’s property is for the
time being insufficient for meeting those debts.””

(3) In paragraph (3) for “(2)” substitute “(2A)”.

(4) Accordingly, in the heading for the Article after “distrained” insert “, etc”.

38 (1) 20Article 301 (preferential charge on goods distrained) is amended as follows.

(2) For paragraph (1) substitute—

“(1) Paragraph (1A) applies where—

(a) any person has distrained upon the goods or effects of an
individual who is adjudged bankrupt within 3 months from
25the distraint, or

(b) Her Majesty’s Revenue and Customs has been paid any
amount from an account of an individual under Part 1 of
Schedule 8 to the Finance (No. 2) Act 2015 (enforcement by
deduction from accounts) and the individual is adjudged
30bankrupt within 3 months from the payment.

(1A) Where this paragraph applies—

(a) in a case within paragraph (1)(a), the goods or effects, or the
proceeds of their sale, and

(b) in a case within paragraph (1)(b), the amount in question,

35is charged for the benefit of the bankrupt’s estate with the
preferential debts of the bankrupt to the extent that the bankrupt’s
estate is for the time being insufficient for meeting them.””

(3) In paragraph (2) for “(1)” substitute “(1A)”.

FA 1998

39 40In Schedule 18 to FA 1998 (company tax returns, assessments etc), in
paragraph 40, after sub-paragraph (4) insert—

“(5) Where—

(a) action is being taken under Part 1 of Schedule 8 to the
Finance (No. 2) Act 2015 (enforcement of deduction from

accounts) for the recovery of an amount (“the original
amount”) of any tax charged by a determination under
paragraph 36 or 37, and

(b) before that action is concluded, the determination is
5superseded by a self-assessment,

that action may be continued as if it were action for the purposes
of the recovery of so much of the tax charged by the self-
assessment as is due and payable, has not been paid and does not
exceed the original amount.””

10FA 2003

40 In Schedule 10 to FA 2003 (stamp duty land tax: returns etc), in paragraph
27, after sub-paragraph (3) insert—

“(4) Where—

(a) action is being taken under Part 1 of Schedule 8 to the
15Finance (No. 2) Act 2015 (enforcement of deduction from
accounts) for the recovery of an amount (“the original
amount”) of tax charged by a Revenue determination, and

(b) before that action is concluded, the determination is
superseded by a self-assessment,

20that action may be continued as if it were action for the purposes
of the recovery of so much of the tax charged by the self-
assessment as is due and payable, has not yet been paid and does
not exceed the original amount.””

FA 2013

41 25In Schedule 33 to FA 2013 (annual tax on enveloped dwellings: returns etc),
in paragraph 20, after sub-paragraph (3) insert—

“(4) Where—

(a) action is being taken under Part 1 of Schedule 8 to the
Finance (No. 2) Act 2015 (enforcement of deduction from
30accounts) for the recovery of an amount (“the original
amount”) of tax charged by an HMRC determination, and

(b) before that action is concluded, the determination is
superseded by a self-assessment,

that action may be continued as if it were action for the purposes
35of the recovery of so much of the tax charged by the self-
assessment as is due and payable, has not yet been paid and does
not exceed the original amount.””