Finance Bill (HC Bill 102)

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(2) In subsection (3) for the words from “required” to “return” substitute “given
a notice to file”.

(3) In subsection (4) after “(1G)” insert “and (1HA)”.

(4) In subsections (5) and (6) omit “, for the purposes set out in section 9(1),”.

(5) 5In subsection (8)(b) for “section 9” substitute “section 8”.

(6) In subsection (10) for “section 9” substitute “section 8”.

(7) In subsection (11) for “section 9” substitute “section 8”.

8 (1) Section 12ZI (NRCGT returns and self-assessment: section 8A) is amended
as follows.

(2) 10In subsection (3) for the words from “required” to “return” substitute “given
a notice to file”.

(3) In subsection (4)(b) after “(1E)” insert “and (1FA)”.

(4) In subsections (5) and (6) omit “, for the purposes set out in section 9(1),”.

(5) In subsection (8)(b) for “section 9” substitute “section 8A”.

(6) 15In subsection (10) for “section 9” substitute “section 8A”.

(7) In subsection (11) for “section 9” substitute “section 8A”.

9 In section 12AA(10A) (definitions) for ““partnership return”” substitute
““section 12AA partnership return””.

10 In section 12AB(1) (partnership return to include partnership statement) in
20the words before paragraph (a) after “Every” insert “section 12AA”.

11 (1) Section 12ABA (amendment of partnership return by taxpayer) is amended
as follows.

(2) In subsection (1)—

(a) omit the words from “by the” to “successor,”;

(b) 25at the end insert given by—

(a) in the case of a section 12AA partnership return, the
partner who made and delivered the return or his
successor, and

(b) in the case of a Schedule A1 partnership return, the
30nominated partner.”

(3) In subsection (4) after “date”” insert “, in relation to a section 12AA
partnership return,”.

(4) After subsection (4) insert—

(5) In this section “the filing date”, in relation to a Schedule A1
35partnership return for a year of assessment (Year 1), means 31
January of Year 2.”

12 (1) Section 12ABB (HMRC power to correct partnership return) is amended as
follows.

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(2) In subsection (2), for the words from “by notice” to the end substitute—

(a) in the case of a section 12AA partnership return, by notice to
the partner who made and delivered the return, or his
successor, and

(b) 5in the case of a Schedule A1 partnership return, by notice to
the nominated partner.”

(3) In subsection (4) for the words from “the person” to the end substitute
“notice rejecting the correction is given—

(a) in the case of a section 12AA partnership return, by the
10person to whom the notice of correction was given or his
successor, and

(b) in the case of a Schedule A1 partnership return, by the
nominated partner.”

13 (1) Section 12AC (notice of enquiry into partnership return) is amended as
15follows.

(2) In subsection (1)—

(a) after “return if” insert “, within the time allowed,”;

(b) at the beginning of paragraph (a) insert “in the case of a section 12AA
partnership return,”;

(c) 20after that paragraph insert—

(aa) in the case of a Schedule A1 partnership return, to the
nominated partner.”;

(d) omit paragraph (b).

(3) In subsection (7)—

(a) 25the words from “the day” to the end become paragraph (a);

(b) at the beginning of that paragraph insert “in relation to a section
12AA partnership return,”;

(c) after that paragraph insert—

(b) in relation to a Schedule A1 partnership return for a
30year of assessment (Year 1), means 31 January of Year
2.”

14 (1) Section 12B (records to be kept for purposes of returns) is amended as
follows.

(2) For subsection (1) substitute—

(1) 35This section applies to any person who may—

(a) be given a notice to file under section 8 or 8A in respect of a
year of assessment,

(b) be required by a notice under section 12AA to make and
deliver a partnership return in respect of a year of assessment
40or other period, or

(c) be required by regulations under paragraph 10 of Schedule
A1 to provide a partnership return for a year of assessment.

(1A) The person must—

(a) keep all such records as may be requisite for the purpose of
45enabling the person to make and deliver a correct and
complete return, under that section or those regulations, for
that year of assessment or period, and

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(b) preserve those records until the end of the relevant day (see
subsections (2) to (2ZB)).”

(3) In subsection (2) for “day referred to in subsection (1) above is” substitute
“relevant day is (subject to subsection (2ZB))”.

(4) 5After subsection (2) insert—

(2ZA) Subsection (2ZB) applies where, before the day mentioned in
subsection (2), the person—

(a) is given a notice under section 8, 8A or 12AA, or

(b) becomes subject to a requirement imposed by regulations
10under paragraph 10 of Schedule A1.

(2ZB) Where this subsection applies the relevant day is the later of the day
mentioned in subsection (2), and—

(a) if enquiries are made into the return, the day on which under
section 28A(1B) or 28B(1B) those enquiries are completed, or

(b) 15if no such enquiries are made, the day on which an officer no
longer has power to make them.”

(5) In subsection (2A)—

(a) in paragraph (a) for “(1)” substitute “(1)(a) or (b)”;

(b) in the words after paragraph (b)—

(i) 20omit “the relevant day, that is to say,”;

(ii) for “(1)” substitute “(1A)”.

(6) In subsection (3)(a) for “(1)” substitute “(1A)”.

(7) In subsection (4)—

(a) for “(1)” substitute “(1A)”;

(b) 25at the end insert “and regulations under paragraph 11 of Schedule
A1”.

(8) In subsection (5) for “(1)” substitute “(1A)”.

15 In section 28ZA(6) (referral of questions during enquiry)—

(a) in paragraph (b) after “of this Act” insert “into a section 12AA
30partnership return”;

(b) after paragraph (b) insert—

(c) in relation to an enquiry under section 12AC(1) of this
Act into a Schedule A1 partnership return, the
nominated partner.”

16 35In section 28B(8) (completion of enquiry into partnership return) for the
words from “the person” to the end substitute—

(a) in relation to a section 12AA partnership return, the person to
whom notice of enquiry was given or his successor, and

(b) in relation to a Schedule A1 partnership return, the
40nominated partner.”

17 In section 28C(3) (determination of tax where no return delivered) for
“section 9” substitute “section 8 or 8A”.

18 In section 28H(2)(b) (simple assessments)—

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(a) for the words “to make and deliver such a return” substitute
“imposed”;

(b) after “notice” insert “to file”.

19 In section 28I(2)(b) (simple assessments for trustees)—

(a) 5for the words “to make and deliver such a return” substitute
“imposed”;

(b) after “notice” insert “to file”.

20 (1) Section 29 (assessment where loss of tax discovered) is amended as follows.

(2) In subsection (2) at the end insert “(or, where the error or mistake is in an end
10of period statement forming part of the return, if that statement was
provided on the basis of or in accordance with the practice generally
prevailing at the time when it was provided).”

(3) In subsection (6) after paragraph (a) insert—

(aa) it is contained in any information provided by the taxpayer
15to HMRC under regulations under paragraph 7 of
Schedule A1 (periodic updates);”.

21 In section 30B(10) (amendment of partnership statement where loss of tax
discovered) at the end insert “or (in relation to a Schedule A1 partnership
return) the nominated partner”.

22 (1) 20Section 42 (procedure for making claims) is amended as follows.

(2) In subsection (2)—

(a) after “of this Act” insert “, or where a partnership is required to
provide a return by regulations under paragraph 10 of Schedule
A1,”;

(b) 25after “that section” insert “or those regulations”.

(3) In subsection (9) after “of this Act” insert “or a Schedule A1 partnership
return”.

(4) In subsection (11)(a) after “of this Act” insert “or a Schedule A1 partnership
return”.

23 (1) 30Section 59A (payments on account of income tax) is amended as follows.

(2) In subsection (1)(a) for “section 9” substitute “section 8 or 8A”.

(3) In subsection (4A)(a) for “section 9” substitute “section 8 or 8A”.

24 (1) Section 59B (payment of income tax and capital gains tax: assessments other
than simple assessments) is amended as follows.

(2) 35In subsection (1)(a) for “section 9” substitute “section 8 or 8A”.

(3) In subsection (4A) for “section 9” substitute “section 8 or 8A”.

(4) In subsection (5A) for “section 9” substitute “section 8 or 8A”.

(5) In subsection (6) for “section 9” substitute “section 8 or 8A”.

25 (1) Section 106C (offence of failing to deliver a return) is amended as follows.

(2) 40In subsection (1)—

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(a) for “required by a notice under section 8 to make and deliver a
return” substitute “given a notice to file under section 8”;

(b) in paragraph (a) for “the return” substitute “a return under that
section”.

(3) 5In subsection (2) for “the return” substitute “a return under section 8”.

26 In section 106D(1) (offence of making inaccurate return)—

(a) for “required by a notice under section 8 to make and deliver a
return” substitute “given a notice to file under section 8”;

(b) in paragraph (a) after “return” insert “under that section”.

27 10In section 106E (exclusions from offences under sections 106B to 106D) for
“or make and deliver the return” substitute “under section 7, or is given the
notice to file under section 8,”.

28 In section 107A(2)(a) (trustee liability for penalties) after “section 12B of this
Act” insert “or paragraph 12 of Schedule A1 to this Act”.

29 15In section 118(1) (interpretation)—

(a) after the definition of “CTA 2010” insert—

  • ““end of period statement” has the meaning given by
    paragraph 8(6) of Schedule A1, and references to an
    end of period statement for a tax year are to be read in
    20accordance with that paragraph;”;

(b) after the definition of “ITA 2007” insert—

  • ““nominated partner” has the meaning given by
    paragraph 5(5) of Schedule A1;”

(c) in the definition of “partnership return” for the words from “has the”
25to the end substitute “means (unless the context otherwise
requires)—

  • “(a)

    a section 12AA partnership return, or

    (ii)

    a Schedule A1 partnership return;”;

(d) after the definition of “partnership return” insert—

  • 30““partnership statement”—

    (a)

    in relation to a section 12AA partnership
    return, means the statement required by
    section 12AB;

    (b)

    in relation to a Schedule A1 partnership
    35return, has the meaning given by paragraph
    10(6) of that Schedule;”

(e) after the definition of “return” insert—

  • ““Schedule A1 partnership return” has the meaning
    given by paragraph 10(6) of Schedule A1;

  • 40“section 12AA partnership return” has the meaning
    given by section 12AA(10A) of this Act;”;

(f) in the definition of “successor” after “delivered, a” insert “section
12AA”.

30 (1) Paragraph 3 of Schedule 1AB (recovery of overpaid tax) is amended as
45follows.

(2) In sub-paragraph (2)(a) after “of this Act” insert “or a Schedule A1
partnership return”.

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(3) In sub-paragraph (3)(a) after “12AA” insert “or a Schedule A1 partnership
return”.

(4) In sub-paragraph (4) at the end insert “or a Schedule A1 partnership return”.

Part 2 5Amendments of other Acts

TCGA 1992

31 In section 188J(2) of TCGA 1992 (the representative company of an NRCGT
group) for “section 9(2)” substitute “section 8(1AB)(a)(iii)”.

FA 1998

32 10 In paragraph 12(2) of Schedule 18 to FA 1998 (information about business
carried on in partnership) for “statement under section 12AB of” substitute
“partnership statement within the meaning of”.

CAA 2001

33 In section 201(6) of CAA 2001 (elections) after “section 12AA of” insert “or
15regulations under paragraph 10 of Schedule A1 to”.

Tax Credits Act 2002

34 In section 19(4)(a) of the Tax Credits Act 2002 (power to enquire) for “by
section 8 of the Taxes Management Act 1970 (c. 9)1970 (c. 9) to make a return”
substitute “to make a return under section 8 of the Taxes Management Act
201970”.

ITTOIA 2005

35 In section 217(2) of ITTOIA 2005 (conditions for basis period to end with new
accounting date)—

(a) in paragraph (a)—

(i) 25after “TMA 1970” insert “, or of regulations under that Act,”
and

(ii) after “or 12AA of” insert “, or regulations under paragraph 10
of Schedule A1 to,”;

(b) in paragraph (b) for “provision” substitute “section or paragraph”.

30ITA 2007

36 In section 964(4)(b) (collection through self-assessment return) for “section 9
of that Act” substitute “that section”.

Crossrail Act 2008

37 In paragraph 44(1)(a) of Schedule 13 to the Crossrail Act 2008 (modification
35of transfer schemes: other persons and partnerships) after “12AA of” insert
“, or regulations under paragraph 10 of Schedule A1 to,”.

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FA 2008

38 (1) Schedule 36 to FA 2008 (information and inspection powers) is amended as
follows.

(2) In paragraph 21(1) (taxpayer notices) after “12AA of” insert “, or regulations
5under paragraph 10 of Schedule A1 to,”.

(3) In paragraph 37(2)(a) (partnerships) after “section 12AA of” insert “, or
regulations under paragraph 10 of Schedule A1 to,”.

TIOPA 2010

39 TIOPA 2010 is amended as follows.

40 10In section 94(3) (information made available) in each of paragraphs (a) and
(b) after “section 12AA of” insert “, or regulations under paragraph 10 of
Schedule A1 to,”.

41 In section 95(8)(a) (interpretation of “tax return”) after “12AA of” insert “, or
regulations under paragraph 10 of Schedule A1 to,”.

42 15In section 171(5) (tax returns where transfer pricing notice given), in
paragraph (a) of the definition of “tax return”, after “12AA of” insert “, or
regulations under paragraph 10 of Schedule A1 to,”.

FA 2014

43 FA 2014 is amended as follows.

44 20In section 253(6)(c) (definition of “tax return”) after “section 12AA of” insert
“, or regulations under paragraph 10 of Schedule A1 to,”.

45 (1) Schedule 31 (follower notices and partnerships) is amended as follows.

(2) In paragraph 2 (interpretation)—

(a) in sub-paragraph (3)—

(i) 25the words from “in pursuance” to the end become paragraph
(a);

(ii) at the end of that paragraph insert “(a “section 12AA
partnership return”), or”;

(iii) after that paragraph insert—

(b) 30required by regulations under paragraph 10
of Schedule A1 to TMA 1970 (a “Schedule A1
partnership return”).”;

(b) in sub-paragraph (4) after “in relation to a” insert “section 12AA”;

(c) after sub-paragraph (4) insert—

(“4A) 35“The nominated partner”, in relation to a
Schedule A1 partnership return, has the
meaning given by paragraph 5 of Schedule A1
to TMA 1970.”

(3) In paragraph 3 (giving of follower notices in relation to partnership
40returns)—

(a) in sub-paragraph (1), after “in relation to a” insert “section 12AA”;

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(b) after sub-paragraph (1) insert—

(“1A) For the purposes of section 204 a Schedule A1
partnership return, or an appeal in respect of
the return, is to be regarded as made by the
5person who is for the time being the
nominated partner (if that would not
otherwise be the case).”;

(c) in sub-paragraph (2), at the end insert “, or the nominated partner (as
the case may be).”;

(d) 10in sub-paragraph (4)—

(i) in paragraph (a), after “or a successor of that partner,” insert
“or as the nominated partner of a partnership,”;

(ii) in paragraph (b) after “successors of that partner” insert “or
to a nominated partner”.

(4) 15In paragraph 5 (calculation of penalty etc) in sub-paragraph (10)—

(a) the words from “the representative partner” to the end become
paragraph (a);

(b) at the end of that paragraph insert “(in relation to a section 12AA
partnership return), or”;

(c) 20after that paragraph insert—

(b) the nominated partner (in relation to a Schedule A1
partnership return).”

46 (1) Schedule 32 (accelerated payments and partnerships) is amended as follows.

(2) In paragraph 1 (interpretation)—

(a) 25in sub-paragraph (2)—

(i) the words from “in pursuance” to the end become paragraph
(a);

(ii) at the end of that paragraph insert “(a “section 12AA
partnership return”), or”;

(iii) 30after that paragraph insert—

(b) required by regulations under paragraph 10
of Schedule A1 to TMA 1970 (a “Schedule A1
partnership return”).”;

(b) in sub-paragraph (3) after “in relation to a” insert “section 12AA”;

(c) 35after sub-paragraph (3) insert—

(“3A) “The nominated partner”, in relation to a
Schedule A1 partnership return, has the
meaning given by paragraph 5 of Schedule A1
to TMA 1970.”

(3) 40In paragraph 2(2) (restriction on circumstances when accelerated payment
notices can be given) after “a successor of that partner” insert “(in relation to
a section 12AA partnership return), or to the nominated partner of the
partnership (in relation to a Schedule A1 partnership return)”.

(4) In paragraph 3(5)(a) (circumstances in which partner payment notices can be
45given) after “or a successor of that partner” insert “(in relation to a section
12AA partnership return), or the nominated partner (in relation to a
Schedule A1 partnership return)”.

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FA 2016

47 FA 2016 is amended as follows.

48 (1) Schedule 18 (serial tax avoidance) is amended as follows.

(2) In paragraph 51(8)(b) (partnerships: information) after “TMA 1970” insert “,
5or under equivalent provision made by regulations under paragraph 10 of
Schedule A1 to that Act,”.

(3) In paragraph 52 (partnerships: special provision about taxpayer
emendations)—

(a) in sub-paragraph (1) for “subsection (1)(b) of section 12AB of that Act
10(partnership statement)” substitute “section 12AB(1)(b) of that Act or
under equivalent provision made by regulations under paragraph 10
of Schedule A1 to that Act (partnership statement)”;

(b) in sub-paragraph (3)—

(i) in the words before paragraph (a), after “that person’s
15successor” insert “(in the case of a section 12AA partnership
return) or the nominated partner (in the case of a Schedule A1
partnership return)”;

(ii) for “subsection (1)(b) of section 12AB of TMA 1970
(partnership statement)” substitute “section 12AB(1)(b) of
20TMA 1970 or under equivalent provision made by
regulations under paragraph 10 of Schedule A1 to that Act
(partnership statement)”.

(4) In paragraph 53(1) (supplementary provision relating to partnerships)—

(a) in the definition of “the representative partner” after “in relation to
25a” insert “section 12AA”;

(b) after the definition of “successor” insert—

  • ““the nominated partner”, in relation to a Schedule A1
    partnership return, has the meaning given by
    paragraph 5 of Schedule A1 to TMA 1970.”

(5) 30In paragraph 58(1) (general interpretation), for the definition of “partnership
return” substitute—

  • ““partnership return” means a return—

    (a)

    under section 12AA of TMA 1970 (a “section 12AA
    partnership return”), or

    (b)

    35required by regulations made under paragraph 10 of
    Schedule A1 to TMA 1970 (a “Schedule A1
    partnership return”);”.

49 (1) Schedule 19 (large businesses: tax strategies and sanctions) is amended as
follows.

(2) 40In paragraph 12(5) (definition of “representative partner”)—

(a) the words from “the partner” to the end become paragraph (a);

(b) at the end of that paragraph insert “, or”;

(c) after that paragraph insert—

(b) the nominated partner within the meaning of
45paragraph 5 of Schedule A1 to TMA 1970.”

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(3) In paragraph 13 (definition of “financial year”) in paragraph (c) for “under a
return issued under section 12AB” substitute “within the meaning of”.

Section 63

SCHEDULE 15 Partial closure notices

5TMA 1970

1 TMA 1970 is amended as follows.

2 In section 9A (notice of enquiry), in subsection (5)—

(a) in paragraph (a), omit the final “or”;

(b) for paragraph (b) substitute—

(b) 10after a final closure notice has been issued in relation
to an enquiry into the return, or

(c) after a partial closure notice has been issued in such
an enquiry in relation to the matters to which the
amendment relates or which are affected by the
15amendment,”.

3 (1) Section 9B (amendment of return by taxpayer during enquiry) is amended
as follows.

(2) In subsection (1), for “is in progress into the return” substitute “into the
return is in progress in relation to any matter to which the amendment
20relates or which is affected by the amendment”.

(3) In subsection (3)—

(a) after “in progress” insert “in relation to any matter to which the
amendment relates or which is affected by the amendment”;

(b) in paragraph (a), for “the closure notice” substitute “a partial or final
25closure notice”;

(c) in paragraph (b), for “the closure notice is issued” substitute “a
partial closure notice is issued in relation to the matters to which the
amendment relates or which are affected by the amendment or, if no
such notice is issued, a final closure notice is issued”.

(4) 30In subsection (4)—

(a) after “in progress” insert “in relation to any matter”;

(b) for “the enquiry is completed” substitute “a partial closure notice is
issued in relation to the matter or, if no such notice is issued, a final
closure notice is issued”.

4 (1) 35Section 9C (amendment of self-assessment during enquiry to prevent loss of
tax) is amended as follows.

(2) In subsection (1), for “is in progress into a return” substitute “into a return is
in progress in relation to any matter”.

(3) In subsection (2), after “deficiency” insert “so far as it relates to the matter”.

(4) 40In subsection (4)—

(a) after “in progress” insert “in relation to any matter”;