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Notices of Amendments: 22 June 2016                     

8

 

Finance Bill, continued

 
 

Mr Chancellor of the Exchequer

 

130

 

Clause  145,  page  199,  line  12,  after “a” insert “pooling notice or”

 

Mr Chancellor of the Exchequer

 

131

 

Clause  145,  page  199,  line  16,  after “6” insert “and Schedule 43B (generic referral

 

of tax arrangements)”

 

Mr Chancellor of the Exchequer

 

132

 

Clause  145,  page  199,  line  17,  leave out “of binding” and insert “in question (and

 

accordingly the tax arrangements in question are no longer in the pool)”

 

Mr Chancellor of the Exchequer

 

133

 

Clause  145,  page  199,  line  23,  leave out “notice under paragraph 1” and insert

 

“pooling notice or notice of binding”

 

Mr Chancellor of the Exchequer

 

134

 

Clause  145,  page  199,  line  26,  leave out “notice under paragraph 1” and insert

 

“pooling notice or notice of binding”

 

Mr Chancellor of the Exchequer

 

135

 

Clause  145,  page  199,  line  34,  at end insert—

 

    “( )  

Where a person takes the first step described in sub-paragraph (3)(b), HMRC

 

may proceed as if the person had not taken the relevant corrective action if the

 

person fails to enter into the written agreement.”

 

Mr Chancellor of the Exchequer

 

136

 

Clause  145,  page  200,  line  6,  at end insert—

 

“Corrective action by lead taxpayer

 

2A         

If the person mentioned in paragraph 1(1) takes the relevant corrective action

 

(as defined in paragraph 4A of Schedule 43) before the end of the period of 75

 

days beginning with the day on which the notice mentioned in paragraph 1(1)

 

was given to that person, the lead arrangements are treated as ceasing to be in

 

the pool.”

 

Mr Chancellor of the Exchequer

 

137

 

Clause  145,  page  200,  line  9,  leave out “notice of binding” and insert “pooling

 

notice”

 

Mr Chancellor of the Exchequer

 

138

 

Clause  145,  page  200,  line  10,  leave out from first “arrangements” to “and” in line

 

11


 
 

Notices of Amendments: 22 June 2016                     

9

 

Finance Bill, continued

 
 

Mr Chancellor of the Exchequer

 

139

 

Clause  145,  page  200,  line  13,  leave out from “about” to “is” in line 14 and insert

 

“another set of tax arrangements in the pool (“the referred arrangements”)”

 

Mr Chancellor of the Exchequer

 

140

 

Clause  145,  page  200,  line  16,  leave out “bound” and insert “pooled”

 

Mr Chancellor of the Exchequer

 

141

 

Clause  145,  page  200,  line  17,  at end insert—

 

    “( )  

No more than one pooled arrangements opinion notice may be given to a

 

person in respect of the same tax arrangements.”

 

Mr Chancellor of the Exchequer

 

142

 

Clause  145,  page  200,  line  19,  leave out “by virtue of Condition 2 in paragraph 1”

 

Mr Chancellor of the Exchequer

 

143

 

Clause  145,  page  200,  line  21,  leave out “notice of binding” and insert “pooling

 

notice”

 

Mr Chancellor of the Exchequer

 

144

 

Clause  145,  page  200,  line  22,  leave out “bound” and insert “pooled”

 

Mr Chancellor of the Exchequer

 

145

 

Clause  145,  page  200,  line  25,  leave out “lead” and insert “referred”

 

Mr Chancellor of the Exchequer

 

146

 

Clause  145,  page  200,  line  29,  at end insert—

 

    “( )  

In relation to a person who is given a notice of binding “bound arrangements

 

opinion notice” means a written notice which—

 

(a)    

sets out a report prepared by HMRC of any opinion of the GAAR

 

Advisory Panel about the counteracted arrangements (see paragraph

 

1A(1)),

 

(b)    

explains the person’s right to make representations falling within sub-

 

paragraph (2), and

 

(c)    

sets out the period in which those representations may be made.”

 

Mr Chancellor of the Exchequer

 

147

 

Clause  145,  page  200,  line  30,  after “given” and insert “a pooled arrangements

 

opinion notice or”

 

Mr Chancellor of the Exchequer

 

148

 

Clause  145,  page  200,  leave out lines 35 to 38


 
 

Notices of Amendments: 22 June 2016                     

10

 

Finance Bill, continued

 
 

Mr Chancellor of the Exchequer

 

149

 

Clause  145,  page  200,  line  40,  leave out “the lead arrangements” and insert—

 

“(i)    

the referred arrangements (in the case of a pooled

 

arrangements opinion notice), or

 

(ii)    

the counteracted arrangements (in the case of a bound

 

arrangements opinion notice).”

 

Mr Chancellor of the Exchequer

 

150

 

Clause  145,  page  201,  line  3,  leave out from beginning to “paragraph” in line 4 and

 

insert “any tax arrangements have been placed in a pool by a notice given to a person

 

under”

 

Mr Chancellor of the Exchequer

 

151

 

Clause  145,  page  201,  line  7,  leave out “the lead arrangements” and insert “any

 

other arrangements in the pool (the “referred arrangements”)”

 

Mr Chancellor of the Exchequer

 

152

 

Clause  145,  page  201,  line  10,  leave out “lead” and insert “referred”

 

Mr Chancellor of the Exchequer

 

153

 

Clause  145,  page  201,  line  17,  leave out “by virtue of Condition 2 in paragraph 1”

 

and insert “under paragraph 1A”

 

Mr Chancellor of the Exchequer

 

154

 

Clause  145,  page  201,  line  22,  leave out “lead” and insert “counteracted”

 

Mr Chancellor of the Exchequer

 

155

 

Clause  145,  page  202,  line  25,  leave out from “applies” to end of line 38 and insert

 

“if—

 

(a)    

pooling notices given under paragraph 1 of Schedule 43A have placed

 

one or more sets of tax arrangements in a pool with the lead

 

arrangements,

 

(b)    

the lead arrangements (see paragraph 1(1) of Schedule 43A) have

 

ceased to be in the pool, and

 

(c)    

no referral under paragraph 5 or 6 of Schedule 43 has been made in

 

respect of any arrangements in the pool.

 

      (2)  

A designated HMRC officer may determine that, in respect of each of the tax

 

arrangements that are in the pool, there is to be given (to the person to whom

 

the pooling notice in question was given) a written notice of a proposal to make

 

a generic referral to the GAAR Advisory Panel in respect of the arrangements

 

in the pool.

 

      (3)  

Only one determination under sub-paragraph (2) may be made in relation to

 

any one pool.

 

    (3A)  

The persons to whom those notices are given are “the notified taxpayers”.”


 
 

Notices of Amendments: 22 June 2016                     

11

 

Finance Bill, continued

 
 

Mr Chancellor of the Exchequer

 

156

 

Clause  145,  page  203,  leave out lines 1 to 4

 

Mr Chancellor of the Exchequer

 

157

 

Clause  145,  page  203,  line  6,  leave out “representations, and” and insert “a

 

proposal.”

 

Mr Chancellor of the Exchequer

 

158

 

Clause  145,  page  203,  leave out lines 7 to 16

 

Mr Chancellor of the Exchequer

 

159

 

Clause  145,  page  203,  line  18,  leave out from “given” to end of line 20 and insert

 

“to propose to HMRC that it—

 

(a)    

should give T a notice under paragraph 3 of Schedule 43 in respect of

 

the arrangements to which the notice under paragraph 1 relates, and

 

(b)    

should not proceed with the proposal to make a generic referral to the

 

GAAR Advisory Panel in respect of those arrangements.”

 

Mr Chancellor of the Exchequer

 

160

 

Clause  145,  page  203,  leave out lines 21 to 25

 

Mr Chancellor of the Exchequer

 

161

 

Clause  145,  page  203,  line  26,  leave out “representations are made in accordance

 

with sub-paragraph (2)” and insert “a proposal is made in accordance with sub-paragraph

 

(1)”

 

Mr Chancellor of the Exchequer

 

162

 

Clause  145,  page  203,  line  27,  leave out “them” and insert “it”

 

Mr Chancellor of the Exchequer

 

163

 

Clause  145,  page  203,  line  28,  leave out from beginning to end of line 22 on page

 

204

 

Mr Chancellor of the Exchequer

 

164

 

Clause  145,  page  204,  line  26,  leave out “given a notice” and insert “made a

 

proposal”

 

Mr Chancellor of the Exchequer

 

165

 

Clause  145,  page  204,  line  31,  leave out “gives a notice” and insert “makes a

 

proposal”


 
 

Notices of Amendments: 22 June 2016                     

12

 

Finance Bill, continued

 
 

Mr Chancellor of the Exchequer

 

166

 

Clause  145,  page  204,  line  32,  after “must” insert “, after the end of that 30 day

 

period,”

 

Mr Chancellor of the Exchequer

 

167

 

Clause  145,  page  204,  leave out lines 34 and 35 and insert—

 

“( )    

give a notice under paragraph 3 of Schedule 43 in respect of one set of

 

tax arrangements in the relevant pool, or”

 

Mr Chancellor of the Exchequer

 

168

 

Clause  145,  page  204,  leave out lines 37 and 38 and insert “tax arrangements in the

 

relevant pool”

 

Mr Chancellor of the Exchequer

 

169

 

Clause  145,  page  205,  line  18,  after “which” insert “the designated officer

 

considers”

 

Mr Chancellor of the Exchequer

 

170

 

Clause  145,  page  207,  line  35,  at end insert—

 

“( )    

In section 210 (consequential relieving adjustments), in subsection (1)(b), after

 

“Schedule 43,” insert “paragraph 5 or 6 of Schedule 43A or paragraph 9 of

 

Schedule 43B,”.”

 

Mr Chancellor of the Exchequer

 

171

 

Clause  145,  page  207,  line  40,  after “1” insert “or 1A”

 

Mr Chancellor of the Exchequer

 

172

 

Clause  145,  page  207,  line  41,  leave out “lead” and insert “referred or (as the case

 

may be) counteracted”

 

Mr Chancellor of the Exchequer

 

173

 

Clause  145,  page  208,  line  7,  leave out “1(4)” and insert “1A(2)”

 

Mr Chancellor of the Exchequer

 

174

 

Clause  145,  page  208,  line  8,  at end insert—

 

““pooling notice” has the meaning given by paragraph 1(4) of Schedule

 

43A;”

 

Mr Chancellor of the Exchequer

 

178

 

Clause  145,  page  208,  line  24,  at end insert—

 

“(10A)    

Section 10 of the National Insurance Contributions Act 2014 (GAAR to apply to

 

national insurance contributions) is amended in accordance with subsections

 

(10B) to (10E).


 
 

Notices of Amendments: 22 June 2016                     

13

 

Finance Bill, continued

 
 

(10B)    

In subsection (4), at the end insert “, paragraph 5 or 6 of Schedule 43A to that Act

 

(pooling of tax arrangements: notice of final decision) or paragraph 9 of Schedule

 

43B to that Act (generic referral of arrangements: notice of final decision)”.

 

(10C)    

After subsection (6) insert—

 

“(6A)    

Where, by virtue of this section, a case falls within paragraph 4A of

 

Schedule 43 to the Finance Act 2013 (referrals of single schemes:

 

relevant corrective action) or paragraph 2 of Schedule 43A to that Act

 

(pooled schemes: relevant corrective action)—

 

(a)    

the person (“P”) mentioned in sub-paragraph (1) of that

 

paragraph takes the “relevant corrective action” for the purposes

 

of that paragraph if (and only if)—

 

(i)    

in a case in which the tax advantage in question can be

 

counteracted by making a payment to HMRC, P makes

 

that payment and notifies HMRC that P has done so, or

 

(ii)    

in any case, P takes all necessary action to enter into an

 

agreement in writing with HMRC for the purpose of

 

relinquishing the tax advantage, and

 

(b)    

accordingly, sub-paragraphs (2) to (8) of that paragraph do not

 

apply.”

 

(10D)    

In subsection (11)—

 

(a)    

for “and HMRC” substitute “, “HMRC” and “tax advantage””;

 

(b)    

after “2013” insert “(as modified by this section)”.

 

(10E)    

After subsection (11) insert—

 

“(12)    

See section 10A for further modifications of Part 5 of the Finance Act

 

2013.”

 

(10F)    

After section 10 of the National Insurance Contributions Act 2014 insert—

 

“10A  

Application of GAAR in relation to penalties

 

(1)    

For the purposes of this section a penalty under section 212A of the

 

Finance Act 2013 is a “relevant NICs-related penalty” so far as the

 

penalty relates to a tax advantage in respect of relevant contributions.

 

(2)    

A relevant NICs-related penalty may be recovered as if it were an amount

 

of relevant contributions which is due and payable.

 

(3)    

Section 117A of the Social Security Administration Act 1992 or (as the

 

case may be) section 111A of the Social Security Administration

 

(Northern Ireland) Act 1992 (issues arising in proceedings: contributions

 

etc) has effect in relation to proceedings before a court for recovery of a

 

relevant NICs-related penalty as if the assessment of the penalty were a

 

NICs decision as to whether the person is liable for the penalty.

 

(4)    

Accordingly, paragraph 5(4)(b) of Schedule 43C to the Finance Act 2013

 

(assessment of penalty to be enforced as if it were an assessment to tax)

 

does not apply in relation to a relevant NICs-related penalty.

 

(5)    

In the application of Schedule 43C to the Finance Act 2013 in relation to

 

a relevant NICs-related penalty, paragraph 9(5) has effect as if the

 

reference to an appeal against an assessment to the tax concerned were to

 

an appeal against a NICs decision.


 
 

Notices of Amendments: 22 June 2016                     

14

 

Finance Bill, continued

 
 

(6)    

In paragraph 8 of that Schedule (aggregate penalties), references to a

 

“relevant penalty provision” include—

 

(a)    

any provision mentioned in sub-paragraph (5) of that paragraph,

 

as applied in relation to any class of national insurance

 

contributions by regulations (whenever made);

 

(b)    

section 98A of the Taxes Management Act 1970, as applied in

 

relation to any class of national insurance contributions by

 

regulations (whenever made);

 

(c)    

any provision in regulations made by the Treasury under which

 

a penalty can be imposed in respect of any class of national

 

insurance contributions.

 

(7)    

The Treasury may by regulations—

 

(a)    

disapply, or modify the effect of, subsection (6)(a) or (b);

 

(b)    

modify paragraph 8 of Schedule 43C to the Finance Act 2013 as

 

it has effect in relation to a relevant penalty provision by virtue

 

of subsection (6)(b) or (c).

 

(8)    

Section 175(3) to (5) of SSCBA 1992 (various supplementary powers)

 

applies to a power to make regulations conferred by subsection (7).

 

(9)    

Regulations under subsection (7) must be made by statutory instrument.

 

(10)    

A statutory instrument containing regulations under subsection (7) is

 

subject to annulment in pursuance of a resolution of either House of

 

Parliament.

 

(11)    

In this section “NICs decision” means a decision under section 8 of the

 

Social Security Contributions (Transfer of Functions, etc) Act 1999 or

 

Article 7 of the Social Security Contributions (Transfer of Functions, etc)

 

(Northern Ireland) Order 1999 (SI 1999/671).

 

(12)    

In this section “relevant contributions” means the following

 

contributions under Part 1 of SSCBA 1992 or Part 1 of SSCB(NI)A

 

1992—

 

(a)    

Class 1 contributions;

 

(b)    

Class 1A contributions;

 

(c)    

Class 1B contributions;

 

(d)    

Class 2 contributions which must be paid but in relation to which

 

section 11A of the Act in question (application of certain

 

provisions of the Income Tax Acts in relation to Class 2

 

contributions under section 11(2) of that Act) does not apply.””

 

Mr Chancellor of the Exchequer

 

175

 

Clause  145,  page  208,  line  28,  leave out from “notice” to “in” in line 30 and insert

 

“has been given under paragraph 5(2) or 6(2) of Schedule 43A to FA 2013 (notice of final

 

decision after considering Panel’s opinion about referred or counteracted arrangements)”

 

Mr Chancellor of the Exchequer

 

176

 

Clause  145,  page  208,  line  34,  leave out from “Panel” to end of line 36 and insert

 

“about the other arrangements (see subsection (8)) was as set out in paragraph 11(3)(b) of

 

Schedule 43 to FA 2013.”


 
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Revised 22 June 2016