Finance Bill (HC Bill 47)

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(10) A statutory instrument containing regulations under this section is
subject to annulment in pursuance of a resolution of the House of
Commons.”

(2) After Schedule 5 to IHTA 1984 insert—

5“Schedule 5A Section 153ZA Qualifying payments: victims of persecution during Second World War
era

Part 1 Compensation payments

1 10A payment of a fixed amount from the German foundation known as
“Remembrance, Responsibility and Future” (Stiftung EVZ) in respect
of a person who was a slave or forced labourer.

2 A payment of a fixed amount in accordance with the arrangements
made under the Swiss Bank Settlement (Holocaust Victim Assets
15Litigation) in respect of the slave or forced labourers qualifying for
compensation under the Remembrance, Responsibility and Future
scheme.

3 A payment of a fixed amount from the Hardship Fund established by
the Government of the Federal Republic of Germany.

4 20A payment of a fixed amount from the National Fund of the Republic
of Austria for Victims of National-Socialism under the terms of the
scheme as at June 1995.

5 A payment of a fixed amount in respect of a slave or forced labourer
from the Austrian Reconciliation Fund.

6 25A payment of a fixed amount by the Swiss Refugee Programme in
accordance with the arrangements made under the Swiss Bank
Settlement (Holocaust Victim Assets Litigation) in respect of
refugees.

7 A payment of a fixed amount under the foundation established in the
30Netherlands and known as the Dutch Maror Fund (Stichting Maror-
Gelden Overheid
).

8 A one-off payment of a fixed amount from the scheme established by
the Government of the French Republic and known as the French
Orphan Scheme.

9 35A payment of a fixed amount from the Child Survivor Fund
established by the Government of the Federal Republic of Germany.

Part 2 Ex-gratia payments

10 A payment of a fixed amount made from the scheme established by
40the United Kingdom Government and known as the Far Eastern
Prisoners of War Ex Gratia Scheme.”

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(3) The amendments made by this section have effect in relation to deaths
occurring on or after 1 January 2015.

95 Inheritance tax: gifts for national purposes etc

(1) The Schedule 3 IHTA approval function is transferred to the Treasury.

(2) 5The “Schedule 3 IHTA approval function” is the function of approval conferred
by Schedule 3 to IHTA 1984 in the entry beginning “Any other similar national
institution” (and which was initially conferred on the Treasury but, along with
other functions, transferred to the Commissioners of Inland Revenue under
section 95 of FA 1985).

(3) 10Subsection (1) does not affect any approval given under Schedule 3 to IHTA
1984 before this Act is passed.

(4) In Schedule 3 to IHTA 1984 (gifts for national purposes, etc), in the entry
beginning “Any museum”, after “and is” insert “or has been”.

96 Estate duty: objects of national, scientific, historic or artistic interest

(1) 15Section 40 of FA 1930 and section 2 of the Finance Act (Northern Ireland) 1931
(exemption from death duties of objects of national etc interest), so far as
continuing to have effect, have effect as if after subsection (2) there were
inserted—

(2A) In the event of the loss of any objects to which this section applies, estate
20duty shall become chargeable on the value of those objects in respect of
the last death on which the objects passed at the rate appropriate to the
principal value of the estate passing on that death upon which estate
duty is leviable, and with which the objects would have been
aggregated if they had not been objects to which this section applies.

(2B) 25Where subsection (2A) applies, any owner of the objects—

(a) shall be accountable for the estate duty, and

(b) shall deliver an account for the purposes thereof.

(2C) The account under subsection (2B)(b) must be delivered within the
period of one month beginning with—

(a) 30in the case of a loss occurring before the coming into force of
subsection (2A)—

(i) the coming into force of subsection (2A), or

(ii) if later, the date when the owner became aware of the
loss;

(b) 35in the case of a loss occurring after the coming into force of
subsection (2A)—

(i) the date of the loss, or

(ii) if later, the date when the owner became aware of the
loss.

40This is subject to subsection (2E).

(2D) Subsection (2E) applies if—

(a) no account has been delivered under subsection (2B),

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(b) the Commissioners for Her Majesty’s Revenue and Customs
have by notice required an owner of the objects to confirm that
the objects have not been lost,

(c) the owner has not so confirmed by the end of—

(i) 5the period of three months beginning with the day on
which the notice was sent, or

(ii) such longer period as the Commissioners may allow,
and

(d) the Commissioners are satisfied that the objects are lost.

(2E) 10Where this subsection applies—

(a) the objects are to be treated as lost for the purposes of subsection
(2A) on the day on which the Commissioners are satisfied as
specified in subsection (2D)(d), and

(b) the account under subsection (2B)(b) must be delivered within
15the period of one month beginning with that date.

(2F) The reference in subsection (2A) to the value of objects is to their value
at the time they are lost (or treated as lost).

(2G) Subsection (2A) does not apply in relation to a loss notified to the
Commissioners before the coming into force of that subsection.

(2H) 20In this section “owner”, in relation to any objects, means a person who,
if the objects were sold, would be entitled to receive (whether for their
own benefit or not) the proceeds of sale or any income arising
therefrom.

(2I) In this section references to the loss of objects include their theft or
25destruction; but do not include a loss which the Commissioners are
satisfied was outside the owner’s control.”

(2) Section 48 of FA 1950, so far as continuing to have effect, has effect as if—

(a) after subsection (3) there were inserted—

(3A) But where the value of any objects is chargeable with estate
30duty under subsection (2A) of the said section forty (loss of
objects), no estate duty shall be chargeable under this section on
that value.”;

(b) after subsection (4) there were inserted—

(5) Where any objects are lost (within the meaning of the said
35section forty) after becoming chargeable with estate duty under
this section in respect of any death, the value of those objects
shall not be chargeable with estate duty under subsection (2A)
of the said section forty.”

(3) Section 39 of FA 1969, so far as continuing to have effect, has effect as if—

(a) 40in subsection (1)—

(i) after “subsection (2)” there were inserted “or (2A)”;

(ii) after “other disposal” there were inserted “or loss”;

(b) in subsection (2), after “subsection (2)” there were inserted “, (2A)”;

(c) in subsection (3)—

(i) 45after “subsection (2)” there were inserted “, (2A)”;

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(ii) for the words from “the amount” to the end there were
substituted “the amount in respect of which estate duty is
chargeable under the said subsection”.

(4) Section 6 of the Finance Act (Northern Ireland) 1969, so far as continuing to
5have effect as originally enacted, has effect as if—

(a) in subsection (1)—

(i) after “subsection (2)” there were inserted “or (2A)”;

(ii) after “sale” there were inserted “or loss”;

(b) in subsection (2)—

(i) 10for “sale” there were substituted “event”;

(ii) after “subsection (2)” there were inserted “or (2A)”;

(c) in subsection (3)—

(i) for “sale” there were substituted “event”;

(ii) after “subsection (2)” there were inserted “or (2A)”;

(iii) 15for “the amount of the proceeds of sale” there were substituted
“the amount in respect of which estate duty is chargeable under
the said subsection”.

(5) Section 6 of the Finance Act (Northern Ireland) 1969, so far as continuing to
have effect as amended by Article 7 of the Finance (Northern Ireland) Order
201972 (S.I. 1972/1100 (N.I.11)S.I. 1972/1100 (N.I.11)) (deaths occurring after the making of that Order),
has effect as if—

(a) in subsection (1)—

(i) after “subsection (2)” there were inserted “or (2A)”;

(ii) after “sale” there were inserted “or loss”;

(b) 25in subsection (2), after “subsection (2)” there were inserted “or (2A)”;

(c) in subsection (3)—

(i) in the opening words, after “subsection (2)” there were inserted
“or (2A)”;

(ii) in paragraphs (a) and (b), after “otherwise than on sale” there
30were inserted “or at the time of the loss”.

(6) In section 35 of IHTA 1984 (conditional exemption on death before 7th April
1976) in subsection (2), for paragraphs (a) and (b) substitute—

(a) tax shall be chargeable under section 32 or 32A (as the
case may be), or

(b) 35tax shall be chargeable under Schedule 5,

as the Board may elect,”.

(7) In Schedule 6 to IHTA 1984 (transition from estate duty), in paragraph 4
(objects of national etc interest left out of account on death)—

(a) in sub-paragraph (2), for paragraphs (a) and (b) substitute—

(a) 40tax shall be chargeable under section 32 or 32A of this
Act (as the case may be), or

(b) estate duty shall be chargeable under those
provisions,

as the Board may elect,”, and

(b) 45in sub-paragraph (4), after “40(2)” insert “or (2A)”.

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(8) Subsections (6) and (7) have effect in relation to a chargeable event where the
conditionally exempt transfer referred to in section 35(2) of or paragraph 4(2)
of Schedule 6 to IHTA 1984 occurred after 16 March 2016.

Part 6 5Apprenticeship levy

Basic provisions

97 Apprenticeship levy

(1) A tax called apprenticeship levy is to be charged in accordance with this Part.

(2) The Commissioners are responsible for the collection and management of
10apprenticeship levy.

98 Charge to apprenticeship levy

(1) Apprenticeship levy is charged if—

(a) a person has a pay bill for a tax year, and

(b) the relevant percentage of that pay bill exceeds the amount of the
15person’s levy allowance (if any) for that tax year.

(2) The amount charged for the tax year is equal to—


N − A

where—

N is the relevant percentage of the pay bill for the tax year, and

20A is the amount of the levy allowance (if any) to which the person is entitled
for the tax year.

(3) The person mentioned in subsection (1) is liable to pay the amount charged.

(4) Except so far as any section provides otherwise, a person who has a pay bill for
a tax year is entitled to a levy allowance for the tax year.

(5) 25The amount of the levy allowance is £15,000 (except where section 90 or 91
provides otherwise).

(6) For the purposes of this section the “relevant percentage” is 0.5%.

99 A person’s pay bill for a tax year

(1) A person has a pay bill for a tax year if, in the tax year—

(a) 30the person is the secondary contributor in relation to payments of
earnings to, or for the benefit of, one or more employed earners, and

(b) in consequence, the person incurs liabilities to pay secondary Class 1
contributions.

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(2) The amount of the person’s pay bill for the tax year is equal to the total amount
of the earnings in respect of which the liabilities mentioned in subsection (1)(b)
are incurred.

(3) For the purposes of this section a person is treated as incurring, in respect of
5any earnings, any liabilities which the person would incur but for the condition
in section 6(1)(b) of the Contributions and Benefits Act.

(4) The Treasury may by regulations provide for persons specified in certificates
in force under section 120(4) of the Social Security Contributions and Benefits
Act 1992 (employment at sea: continental shelf operations) to be treated for the
10purposes of this section as the secondary contributor in relation to payments of
earnings to which the certificate relates and as liable to pay secondary Class 1
contributions to which the certificate relates.

(5) For the purposes of this section—

(a) references to “payments of earnings” are to be interpreted as they
15would be interpreted for the purposes of determining liability to pay
secondary Class 1 contributions under the Contributions and Benefits
Act;

(b) the amount of any earnings is to be calculated in the same manner and
on the same basis as for the purpose of calculating the liabilities
20mentioned in subsection (1)(b).

(6) In this section references to liability to pay secondary Class 1 contributions are
to liability to pay secondary Class 1 contributions under Part 1 of the
Contributions and Benefits Act (and are therefore to be interpreted in
accordance with sections 9A(6) and 9B(3) of that Act).

25Connected companies and charities

100 Connected companies

(1) Two or more companies which are not charities form a “company unit” for a
tax year (and are the “members” of that unit) if—

(a) they are connected with one another at the beginning of the tax year,
30and

(b) each of them is entitled to a levy allowance for the tax year.

(2) The members of a company unit must determine what amount of levy
allowance each of them is to be entitled to for the tax year (and the
determination must comply with subsections (3) and (4)).

35But see subsections (6) and (11).

(3) A member’s levy allowance for a tax year may be zero (but not a negative
amount).

(4) The total amount of the levy allowances to which the members of a company
unit are entitled for a tax year must equal £15,000.

(5) 40A determination made under subsection (2) (with respect to a tax year) cannot
afterwards be altered by the members concerned (but this does not prevent the
correction of a failure to comply with subsection (4)).

(6) If subsection (8) applies—

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(a) HMRC must determine in accordance with subsection (7) what amount
of levy allowance each of the relevant members (see subsection (8)(a))
of the unit concerned is to be entitled to for the tax year, and

(b) accordingly subsection (2) is treated as never having applied in relation
5to that company unit and that tax year.

(7) The determination is to be made by multiplying the amount of levy allowance
set out in each relevant return (see subsection (8)(a)) by—


where T is the total of the amounts of levy allowance set out in the relevant
10returns.

The result is, in each case, the amount of the levy allowance to which the
relevant member in question is entitled for the tax year (but amounts may be
rounded up or down where appropriate provided that subsection (4) is
complied with).

(8) 15This subsection applies if—

(a) HMRC is aware—

(i) that two or more members of a company unit (“the relevant
members”) have made apprenticeship levy returns (“the
relevant returns”) on the basis mentioned in subsection (9), and

(ii) 20that those returns, together, imply that the total mentioned in
subsection (4) is greater than £15,000,

(b) HMRC has notified the relevant members in writing that HMRC is
considering taking action under subsection (6), and

(c) the remedial action specified in the notice has not been taken within the
25period specified in the notice.

(9) The basis in question is that the member making the return is entitled to a levy
allowance (whether or not of zero) for the tax year concerned.

(10) If any member of the company unit mentioned in subsection (8)(a) is not a
relevant member, that member is entitled to a levy allowance of zero for the tax
30year.

(11) If subsection (13) applies—

(a) HMRC must determine in accordance with subsection (12) what
amount of levy allowance each of the members of the unit concerned is
to be entitled to for the tax year, and

(b) 35accordingly subsection (2) is treated as never having applied in relation
to that company unit and that tax year.

(12) Each member of the unit is to be entitled to a levy allowance for the tax year
equal to—


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where N is the number of the members of the company unit for the tax year.

Amounts determined in accordance with the formula in this subsection may be
rounded up or down where appropriate provided that subsection (4) is
complied with.

(13) 5This subsection applies if—

(a) the total amount paid by the members of a company unit in respect of
apprenticeship levy for a tax year or any period in a tax year is less than
the total of the amounts due and payable by them for the tax year or
other period concerned,

(b) 10either the members of the unit have made no apprenticeship levy
returns for any period in the tax year concerned or the returns that have
been made do not contain sufficient information to enable HMRC to
determine how the whole of the £15,000 mentioned in subsection (4) is
to be used by the members of the unit for the tax year,

(c) 15HMRC has notified all the members of the unit in writing that HMRC
is considering taking action under subsection (11), and

(d) the remedial action specified in the notice has not been taken within the
period specified in the notice.

(14) Subsection (4) is to be taken into account in calculating the total of the amounts
20due and payable as mentioned in subsection (13)(a).

(15) The Commissioners may by regulations provide that in circumstances
specified in the regulations the members of a company unit may alter a
determination made under subsection (2) (despite subsection (5)).

(16) In this section “apprenticeship levy return” means a return under regulations
25under section 104(4).

(17) Part 1 of Schedule 1 to the National Insurance Contributions Act 2014 (rules for
determining whether companies are “connected” with one another) applies for
the purposes of subsection (1) as it applies for the purposes of section 3(1) of
that Act.

(18) 30In this Part “company” has the meaning given by section 1121(1) of CTA 2010
and includes a limited liability partnership.

(19) See section 101 for the meaning of “charity”.

101 Connected charities

(1) Two or more charities form a “charities unit” for a tax year (and are the
35“members” of that unit) if—

(a) they are connected with one another at the beginning of the tax year,
and

(b) each of them is entitled to a levy allowance for the tax year.

(2) The members of a charities unit must determine what amount of levy
40allowance each of them is to be entitled to for the tax year (and the
determination must comply with subsections (3) and (4)).

But see subsections (6) and (11).

(3) A member’s levy allowance for a tax year may be zero (but not a negative
amount).

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(4) The total amount of the levy allowances to which the members of a charities
unit are entitled for a tax year must equal £15,000.

(5) A determination made under subsection (2) (with respect to a tax year) cannot
afterwards be altered by the members concerned (but this does not prevent the
5correction of a failure to comply with subsection (4)).

(6) If subsection (8) applies—

(a) HMRC must determine in accordance with subsection (7) what amount
of levy allowance each of the relevant members (see subsection (8)(a))
of the unit concerned is to be entitled to for the tax year, and

(b) 10accordingly subsection (2) is treated as never having applied in relation
to that charities unit and that tax year.

(7) The determination is to be made by multiplying the amount of levy allowance
set out in each relevant return (see subsection (8)(a)) by—


15where T is the total of the amounts of levy allowance set out in the relevant
returns.

The result is, in each case, the amount of the levy allowance to which the
relevant member in question is entitled for the tax year (but amounts may be
rounded up or down where appropriate provided that subsection (4) is
20complied with).

(8) This subsection applies if—

(a) HMRC is aware—

(i) that two or more members of a charities unit (“the relevant
members”) have made apprenticeship levy returns (“the
25relevant returns”) on the basis mentioned in subsection (9), and

(ii) that those returns, together, imply that the total mentioned in
subsection (4) is greater than £15,000,

(b) HMRC has notified the relevant members in writing that HMRC is
considering taking action under subsection (6), and

(c) 30the remedial action specified in the notice has not been taken within the
period specified in the notice.

(9) The basis in question is that the member making the return is entitled to a levy
allowance (whether or not of zero) for the tax year concerned.

(10) If any member of the charities unit mentioned in subsection (8)(a) is not a
35relevant member, that member is entitled to a levy allowance of zero for the tax
year.

(11) If subsection (14) applies—

(a) HMRC must determine in accordance with subsection (13) what
amount of levy allowance each of the members of the unit concerned is
40to be entitled to for the tax year, and

(b) accordingly subsection (2) is treated as never having applied in relation
to that charities unit and that tax year.

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(12) Each member of the unit is to be entitled to a levy allowance for the tax year
equal to—


where N is the number of the members of the charities unit for the tax year.

5Amounts determined in accordance with the formula in this subsection may be
rounded up or down where appropriate provided that subsection (4) is
complied with.

(13) This subsection applies if—

(a) the total amount paid by the members of a charities unit in respect of
10apprenticeship levy for a tax year or any period in a tax year is less than
the total of the amounts due and payable by them for the tax year or
other period concerned,

(b) either the members of the unit have made no apprenticeship levy
returns for any period in the tax year concerned or the returns that have
15been made do not contain sufficient information to enable HMRC to
determine how the whole of the £15,000 mentioned in subsection (4) is
to be used by the members of the unit for the tax year,

(c) HMRC has notified all the members of the unit in writing that HMRC
is considering taking action under subsection (11), and

(d) 20the remedial action specified in the notice has not been taken within the
period specified in the notice.

(14) Subsection (4) is to be taken into account in calculating the total of the amounts
due and payable as mentioned in subsection (14)(a).

(15) The Commissioners may by regulations provide that in circumstances
25specified in the regulations the members of a charities unit may alter a
determination made under subsection (2) (despite subsection (5)).

(16) In this section “apprenticeship levy return” means a return under regulations
under section 104(4).

(17) In this Part “charity” means—

(a) 30a charity within the meaning of Part 1 of Schedule 6 to FA 2010;

(b) the Trustees of the National Heritage Memorial Fund;

(c) the Historic Buildings and Monuments Commission for England;

(d) a registered club within the meaning of Chapter 9 of Part 13 of CTA
2010 (community amateur sports clubs).

(18) 35Subsection (17) is subject to section 117(5).

(19) See sections 117 and 118 for provision about the meaning of “connected” in
subsection (1).