Climate change levy

45 CCL: removal of exemption for electricity from renewable sources

In paragraph 19 of Schedule 6 to FA 2000 (climate change levy: exemption for
electricity from renewable sources), in sub-paragraph (3), before paragraph (a)
5insert—

“(za) it is generated before 1 August 2015,”.”

Part 6 Administration and enforcement

46 International agreements to improve compliance: client notification

(1) 10Section 222 of FA 2013 (international agreements to improve tax compliance) is
amended as follows.

(2) In subsection (2), in paragraph (c), after “purposes” (but before the closing
bracket) insert “and client notification obligations”.

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

“(ca) 15impose client notification obligations on specified relevant
persons;”.”

(4) After subsection (2) insert—

“(2A) For the purposes of subsection (2)(c) and (ca) a “client notification
obligation” is an obligation to give specified information to—

(a) 20clients, or

(b) specified clients.

(2B) In subsection (2A) the reference to an obligation to give specified
information includes—

(a) any obligation to give the information—

(i) 25in a specified form or manner;

(ii) at a specified time or specified times;

(b) in the case of a relevant financial entity or relevant person
which is a body corporate, an obligation to require a person of
which it has control to give the information.””

(5) 30In subsection (4), at the appropriate places insert—

• “““client” includes—

  (a)

  any client or customer, and

  (b)

  any former client or customer;”;

• ““control” is to be construed in accordance with section 1124 of
  35CTA 2010;”;

• ““relevant person” means—

  (a)

  a tax adviser (as defined by section 272(5) of FA 2014),
  and

  (b)

  any other person who in the course of business—

  (i)

  40gives advice to another person about that
  person’s financial or legal affairs, or

  Finance BillPage 61

  (ii)

  provides other financial or legal services to
  another person.””

47 Enforcement by deduction from accounts

(1) Schedule 8 contains provision about the enforcement of debts owed to the
5Commissioners for Her Majesty’s Revenue and Customs by making
deductions from accounts held with deposit-takers.

(2) The Treasury may, by regulations made by statutory instrument, make
consequential, incidental or supplementary provision in connection with any
provision made by that Schedule.

(3) 10Regulations under subsection (2) may amend, repeal or revoke any enactment
(whenever passed or made).

(4) “Enactment” includes an enactment contained in subordinate legislation
within the meaning of the Interpretation Act 1978.

(5) A statutory instrument containing (whether alone or with other provision)
15provision amending or repealing an Act may not be made unless a draft of the
instrument has been laid before and approved by a resolution of the House of
Commons.

(6) Any other statutory instrument containing regulations under subsection (2) is
subject to annulment in pursuance of a resolution of the House of Commons.

48 20Rate of interest applicable to judgment debts etc in taxation matters

(1) This section applies if a sum payable to or by the Commissioners under a
judgment or order given or made in any court proceedings relating to a
taxation matter (a “tax-related judgment debt”) carries interest as a result of a
relevant enactment.

(2) 25The “relevant enactments” are—

(a) section 17 of the Judgments Act 1838 (judgment debts to carry interest),
and

(b) any order under section 74 of the County Courts Act 1984 (interest on
judgment debts etc).

(3) 30The relevant enactment is to have effect in relation to the tax-related judgment
debt as if for the rate specified in section 17(1) of the Judgments Act 1838 and
any other rate specified in an order under section 74 of the County Courts Act
1984 there were substituted—

(a) in the case of a sum payable to the Commissioners, the late payment
35interest rate provided for in regulations made by the Treasury under
section 103(1) of FA 2009, and

(b) in the case of a sum payable by the Commissioners, the special
repayment rate.

(4) Subsection (3) does not affect any power of the court under the relevant
40enactment to prevent any sum from carrying interest or to provide for a rate of
interest which is lower than (and incapable of exceeding) that for which the
subsection provides.

(5) If section 44A of the Administration of Justice Act 1970 (interest on judgment
debts expressed otherwise than in sterling), or any corresponding provision

made under section 74 of the County Courts Act 1984 in relation to the county
court, applies to a tax-related judgment debt—

(a) subsection (3) does not apply, but

(b) the court may not specify in an order under section 44A of the
5Administration of Justice Act 1970, or under any provision
corresponding to that section which has effect under section 74 of the
County Courts Act 1984, an interest rate which exceeds (or is capable of
exceeding)—

(i) in the case of a sum payable to the Commissioners, the rate
10mentioned in subsection (3)(a), or

(ii) in the case of a sum payable by the Commissioners, the special
repayment rate.

(6) The “special repayment rate” is the percentage per annum given by the
formula—

15

(7) “The operative meeting”, in relation to the special repayment rate applicable in
respect of any day, means the most recent meeting of the Bank of England
20Monetary Policy Committee apart from any meeting later than the 13th
working day before that day.

(8) The Treasury may by regulations made by statutory instrument—

(a) repeal subsections (6) and (7), and

(b) provide that the “special repayment rate” for the purposes of this
25section is the rate provided for in the regulations.

(9) Regulations under subsection (8)—

(a) may make different provision for different purposes,

(b) may either themselves specify a rate of interest or make provision for
such a rate to be determined (and to change from time to time) by
30reference to such rate, or the average of such rates, as may be referred
to in the regulations,

(c) may provide for rates to be reduced below, or increased above, what
they would otherwise be by specified amounts or by reference to
specified formulae,

(d) 35may provide for rates arrived at by reference to averages to be rounded
up or down,

(e) may provide for circumstances in which the alteration of a rate of
interest is or is not to take place, and

(f) may provide that alterations of rates are to have effect for periods
40beginning on or after a day determined in accordance with the
regulations (“the effective date”) regardless of—

(i) the date of the judgment or order in question, and

(ii) whether interest begins to run on or after the effective date, or
began to run before that date.

(10) 45A statutory instrument containing regulations under subsection (8) is subject
to annulment in pursuance of a resolution of the House of Commons.

(11) To the extent that a tax-related judgment debt consists of an award of costs to
or against the Commissioners, the reference in section 24(2) of the Crown

Proceedings Act 1947 (which relates to interest on costs awarded to or against
the Crown) to the rate at which interest is payable upon judgment debts due
from or to the Crown is to be read as a reference to the rate at which interest is
payable upon tax-related judgment debts.

(12) 5This section has effect in relation to interest for periods beginning on or after 8
July 2015, regardless of—

(a) the date of the judgment or order in question, and

(b) whether interest begins to run on or after 8 July 2015, or began to run
before that date.

(13) 10Subsection (14) applies where, at any time during the period beginning with 8
July 2015 and ending immediately before the day on which this Act is passed
(“the relevant period”)—

(a) a payment is made in satisfaction of a tax-related judgment debt, and

(b) the payment includes interest under a relevant enactment in respect of
15any part of the relevant period.

(14) The court by which the judgment or order in question was given or made must,
on an application made to it under this subsection by the person who made the
payment, order the repayment of the amount by which the interest paid under
the relevant enactment in respect of days falling within the relevant period
20exceeds the interest payable under the relevant enactment in respect of those
days in accordance with the provisions of this section.

(15) In this section—

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

• 25“taxation matter” means anything, other than national insurance
  contributions, the collection and management of which is the
  responsibility of the Commissioners (or was the responsibility of the
  Commissioners of Inland Revenue or Commissioners of Customs and
  Excise);

• 30“working day” means any day other than a non-business day as defined
  in section 92 of the Bills of Exchange Act 1882.

(16) This section extends to England and Wales only.

Part 7 Final

49 35Interpretation

In this Act—

• “CAA 2001” means the Capital Allowances Act 2001,

• “CTA 2009” means the Corporation Tax Act 2009,

• “CTA 2010” means the Corporation Tax Act 2010,

• 40“FA”, followed by a year, means the Finance Act of that year,

• “IHTA 1984” means the Inheritance Tax Act 1984,

• “ITA 2007” means the Income Tax Act 2007,

• “ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003,

• “ITTOIA 2005” means the Income Tax (Trading and Other Income) Act
  452005,

Finance BillPage 64

• “TCGA 1992” means the Taxation of Chargeable Gains Act 1992,

• “TIOPA 2010” means the Taxation (International and Other Provisions)
  Act 2010,

• “TMA 1970” means the Taxes Management Act 1970,

• 5“VATA 1994” means the Value Added Tax Act 1994, and

• “VERA 1994” means the Vehicle Excise and Registration Act 1994.

50 Short title

This Act may be cited as the Finance (No. 2) Act 2015.

SCHEDULES

Section 11

SCHEDULE 1 Rate of tax charged under Chapter 3 of Part 3 IHTA 1984

1 IHTA 1984 is amended as follows.

2 5After section 62 insert—

“62A Same-day additions

(1) For the purposes of this Chapter, there is a “same-day addition”, in
relation to a settlement (“settlement A”), if—

(a) there is a transfer of value by a person as a result of which the
10value immediately afterwards of the property comprised in
settlement A is greater than the value immediately before,

(b) as a result of the same transfer of value, or as a result of
another transfer of value made by that person on the same
day, the value immediately afterwards of the property
15comprised in another settlement (“settlement B”) is greater
than the value immediately before,

(c) that person is the settlor of settlement A and settlement B,

(d) at any point in the relevant period, all or any part of the
property comprised in settlement A was relevant property,
20and

(e) at that point, or at any other point in the relevant period, all
or any part of the property comprised in settlement B was
relevant property.

For exceptions, see section 62B.

(2) 25Where there is a same-day addition, references in this Chapter to its
value are to the difference between the two values mentioned in
subsection (1)(b).

(3)
“The relevant period” means—

(a) in the case of settlement A, the period beginning with the
30commencement of settlement A and ending immediately
after the transfer of value mentioned in subsection (1)(a), and

(b) in the case of settlement B, the period beginning with the
commencement of settlement B and ending immediately
after the transfer of value mentioned in subsection (1)(b)).

(4) 35The transfer or transfers of value mentioned in subsection (1) include
a transfer or transfers of value as a result of which property first
becomes comprised in settlement A or settlement B; but not if
settlements A and B are related settlements.

(5) For the purposes of subsection (1) above, it is immaterial whether the
amount of the property comprised in settlement A or settlement B (or
neither) was increased as a result of the transfer or transfers of value
mentioned in that subsection.

62B 5Same day additions: exceptions

(1) There is not a same-day addition for the purposes of this Chapter if
any of the following conditions is met—

(a) immediately after the transfer of value mentioned in section
62A(1)(a) all the property comprised in settlement A was
10held for charitable purposes only without limit of time
(defined by a date or otherwise),

(b) immediately after the transfer of value mentioned in section
62A(1)(b) all the property comprised in settlement B was so
held,

(c) 15either or each of settlement A and settlement B is a protected
settlement (see section 62C), and

(d) the transfer of value, or either or each of the transfers of
value, mentioned in section 62A(1)(a) and (b)—

(i) results from the payment of a premium under a
20contract of life insurance the terms of which provide
for premiums to be due at regular intervals of one
year or less throughout the contract term, or

(ii) is made to fund such a payment.

(2) If the transfer of value, or each of the transfers of value, mentioned in
25section 62A(1) is not the transfer of value under section 4 on the
settlor’s death, there is a same-day addition for the purposes of this
Chapter only if conditions A and B are met.

(3) Condition A is that—

(a) the difference between the two values mentioned in section
3062A(1)(a) exceeds £5,000, or

(b) in a case where there has been more than one transfer of value
within section 62A(1)(a) on the same day, the difference
between—

(i) the value of the property comprised in settlement A
35immediately before the first of those transfers, and

(ii) the value of the property comprised in settlement A
immediately after the last of those transfers,

exceeds £5,000.

(4) Condition B is that—

(a) 40the difference between the two values mentioned in section
62A(1)(b) exceeds £5,000, or

(b) in a case where there has been more than one transfer of value
within section 62A(1)(b), the difference between—

(i) the value of the property comprised in settlement B
45immediately before the first of those transfers, and

(ii) the value of the property comprised in settlement B
immediately after the last of those transfers,

exceeds £5,000.

62C Protected settlements

(1) For the purposes of this Chapter, a settlement is a “protected
settlement” if it commenced before 10 December 2014 and either
condition A or condition B is met.

(2) 5Condition A is met if there have been no transfers of value by the
settlor on or after 10 December 2014 as a result of which the value of
the property comprised in the settlement was increased.

(3) Condition B is met if—

(a) there has been a transfer of value by the settlor on or after 10
10December 2014 as a result of which the value of the property
comprised in the settlement was increased, and

(b) that transfer of value was the transfer of value under section
4 on the settlor’s death before 6 April 2017 and it had the
result mentioned by reason of a protected testamentary
15disposition.

(a)(a)there has been a transfer of value by the settlor on or after 10
December 2014 as a result of which the value of the property
comprised in the settlement was increased, and

(b) that transfer of value was the transfer of value under section
204 on the settlor’s death before 6 April 2017 and it had the
result mentioned by reason of a protected testamentary
disposition.

(4) In subsection (3)(b) “protected testamentary disposition” means a
disposition effected by provisions of the settlor’s will that at the
25settlor’s death are, in substance, the same as they were immediately
before 10 December 2014.””

3 (1) Section 66 (rate of ten-yearly charge) is amended as follows.

(2) In subsection (4)—

(a) omit paragraph (b) and the “and” following it,

(b) 30in paragraph (c), before “property” insert “relevant”, and

(c) at the end of paragraph (c) insert—

“(d) the value of any same-day addition; and

(e) where—

(i) an increase in the value of the property
35comprised in another settlement is
represented by the value of a same-day
addition aggregated under paragraph (d)
above, and

(ii) that other settlement is not a related
40settlement,

the value immediately after that other settlement
commenced of the relevant property then comprised
in that other settlement;”.”

(3) In subsection (6)(a), for “paragraphs (b) and (c)” substitute “paragraphs (c)
45to (e)”.

4 In section 68 (rate before ten-year anniversary), in subsection (5)—

(a) in paragraphs (a) and (b), before “property” insert “relevant”,

(b) omit the “and” following paragraph (b), and

(c) for paragraph (c) substitute—

“(c) 50the value, immediately after it became comprised in
the settlement, of property which—

(i) became comprised in the settlement after the
settlement commenced and before the

occasion of the charge under section 65 above,
and

(ii) was relevant property immediately after it
became so comprised,

5whether or not the property has remained relevant
property comprised in the settlement;

(d) the value, at the time it became (or last became)
relevant property, of property which—

(i) was comprised in the settlement immediately
10after the settlement commenced and was not
then relevant property but became relevant
property before the occasion of the charge
under section 65 above, or

(ii) became comprised in the settlement after the
15settlement commenced and before the
occasion of the charge under section 65 above,
and was not relevant property immediately
after it became comprised in the settlement,
but became relevant property before the
20occasion of the charge under that section,

whether or not the property has remained relevant
property comprised in the settlement;

(e) the value of any same-day addition; and

(f) where—

(i) 25an increase in the value of the property
comprised in another settlement is
represented by the value of a same-day
addition aggregated under paragraph (e)
above, and

(ii) 30that other settlement is not a related
settlement,

the value immediately after that other settlement
commenced of the relevant property then comprised
in that other settlement.””

5 (1) 35Section 69 (rate between ten-year anniversaries) is amended as follows.

(2) In subsection (1), for “subsection (2)” substitute “subsection (2A)”.

(3) For subsection (2) substitute—

“(2) Subsection (2A) below applies—

(a) if, at any time in the period beginning with the most recent
40ten-year anniversary and ending immediately before the
occasion of the charge under section 65 above (the “relevant
period”), property has become comprised in the settlement
which was relevant property immediately after it became so
comprised, or

(b) 45if—

(i) at any time in the relevant period, property has
become comprised in the settlement which was not
relevant property immediately after it became so
comprised, and

(ii) at a later time in the relevant period, that property has
become relevant property, or

(c) if property which was comprised in the settlement
immediately before the relevant period, but was not then
5relevant property, has at any time during the relevant period
become relevant property.

(2A) Whether or not all of the property within any of paragraphs (a) to (c)
of subsection (2) above has remained relevant property comprised in
the settlement, the rate at which tax is charged under section 65 is to
10be the appropriate fraction of the rate at which it would last have
been charged under section 64 above (apart from section 66(2) above)
if—

(a) immediately before the most recent ten-year anniversary, all
of that property had been relevant property comprised in the
15settlement with a value determined in accordance with
subsection (3) below, and

(b) any same-day addition made on or after the most recent ten-
year anniversary had been made immediately before that
anniversary.””

(4) 20In subsection (3)—

(a) omit the words from “which either” to the end of paragraph (b), and

(b) for “purposes of subsection (2)” substitute “purposes of subsection
(2A)”.

6 In section 71F (calculation of settlement rate in order to calculate the tax
25charged under section 71E), in subsection (9)(b), after “in it” insert “which
was property to which section 71D above applied”.

7 The amendments made by this Schedule have effect in relation to occasions
on which tax falls to be charged under Chapter 3 of Part 3 of IHTA 1984 on
or after the day on which this Act is passed.

Section 16

30SCHEDULE 2 Bank levy rates for 2016 to 2021

Bank levy rate for 2016

1 (1) In paragraph 6 of Schedule 19 to FA 2011 (steps for determining the amount
of the bank levy), in sub-paragraph (2)—

(a) 35for “0.105%” substitute “0.09%”, and

(b) for “0.21%” substitute “0.18%”.

(2) In paragraph 7 of that Schedule (special provision for chargeable periods
falling wholly or partly before 1 April 2015)—

(a) in sub-paragraph (1) for “1 April 2015” substitute “1 January 2016”;

(b) 40in sub-paragraph (2), in the first column of the table in the
substituted Step 7, for “Any time on or after 1 April 2015” substitute
“1 April 2015 to 31 December 2015”;

(c) at the end of that table add—