Finance (No. 2) Bill (HC Bill 134)

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(a) an order under section 24(1)(b) of the Matrimonial Causes
Act 1973 (property adjustment orders in connection with
matrimonial proceedings),

(b) an order under section 17(1)(a)(ii) of the Matrimonial and
5Family Proceedings Act 1984 (property adjustment orders
after overseas divorce) corresponding to such an order as
is mentioned in paragraph (a),

(c) an order under Article 26(1)(b) of the Matrimonial Causes
(Northern Ireland) Order 1978 (property adjustment
10orders in connection with divorce proceedings etc),

(d) an order under Article 21(a)(ii) of the Matrimonial and
Family Proceedings (Northern Ireland) Order 1989
(property adjustment orders after overseas divorce)
corresponding to such an order as is mentioned in
15paragraph (c),

(e) an order under paragraph 7(1)(b) of Schedule 5 or
paragraph 7(1)(b) of Schedule 15 to the Civil Partnership
Act 2004 (property adjustment orders in connection with
dissolution etc of civil partnership), or

(f) 20an order under paragraph 9 of Schedule 7 or paragraph 9
of Schedule 17 to the Civil Partnership Act 2004 (property
adjustment orders in connection with overseas dissolution
etc of civil partnership) corresponding to such an order as
is mentioned in paragraph (e).”

25Purchase etc by person appointed under Mental Capacity Act 2005 to make decisions for a child

6 (1) In paragraph 12 (settlements and bare trusts with beneficiaries who are
children) after sub-paragraph (1) insert—

(1A) But this paragraph does not apply if the trustee (or any of the
trustees) of the settlement or bare trust concerned—

(a) 30was the purchaser in relation to the land transaction,

(b) holds the interest in the dwelling, or

(c) disposed of the interest in the dwelling,

in the exercise of powers conferred on the trustee by reason of a
relevant court appointment made in respect of the child
35concerned.

(1B) In sub-paragraph (1A) “relevant court appointment” means—

(a) an appointment under section 16 of the Mental Capacity
Act 2005,

(b) an appointment under section 113 of the Mental Capacity
40Act (Northern Ireland) 2016, or

(c) an equivalent appointment under the law of a country or
territory outside England, Wales and Northern Ireland.”

(2) In paragraph 17 (dwellings outside England, Wales and Northern Ireland)
after sub-paragraph (5) insert—

(5A) 45Sub-paragraph (4) does not apply if the interest in the dwelling
was acquired in the child’s name or on the child’s behalf by a
person acting in exercise of powers conferred on that person by

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reason of a relevant court appointment made in respect of the
child.

(5B) In sub-paragraph (5A) “relevant court appointment” has the
meaning given by paragraph 12(1B).”

5Minor and consequential amendments

7 In paragraph 2, after sub-paragraph (3) insert—

(3A) Sub-paragraphs (2) and (3) are subject to paragraph 9A (spouses
and civil partners purchasing from one another).”

8 (1) Paragraph 3 is amended as follows.

(2) 10After sub-paragraph (1) insert—

(1A) But sub-paragraph (1) is subject to paragraph 7A.”

(3) In sub-paragraph (7), in the opening words, for “may become” substitute “is
also”.

9 In paragraph 6—

(a) 15after sub-paragraph (1) insert—

(1A) But sub-paragraph (1) is subject to paragraph 7A.”, and

(b) in sub-paragraph (3) for “and (7)” substitute “to (8)”.

10 In paragraph 8—

(a) in sub-paragraph (1) for “ceases to be” substitute “is not”,

(b) 20in sub-paragraph (2) for “was” substitute “is”,

(c) in sub-paragraph (3) for “its ceasing to be a higher rates transaction”
substitute “the application of paragraph 3(7)”, and

(d) in sub-paragraph (4) for “its ceasing to be a higher rates transaction”
substitute “the application of paragraph 3(7)”.

11 25In paragraph 9(3) for “paragraph” substitute “Schedule”.

12 (1) Paragraph 12 is amended as follows.

(2) In sub-paragraph (2)(a) after “any” insert “relevant”.

(3) For sub-paragraph (3) substitute—

(3) For the purposes of sub-paragraph (2) a spouse or civil partner of
30P is “relevant” if the spouse or civil partner—

(a) is not a parent of the child, and

(b) is living together with P (see paragraph 9(3)).”

(4) Omit sub-paragraph (4).

13 In the italic heading before paragraph 17 omit “, Wales”.

14 (1) 35Paragraph 17 is amended as follows.

(2) In sub-paragraph (1) omit “, Wales”.

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(3) After sub-paragraph (1) insert—

(1A) In the application of those provisions in relation to a dwelling
situated in Wales—

(a) references to a “major interest” in the dwelling are to an
5interest in the dwelling of a kind mentioned in section
117(2),

(b) references to a “land transaction” in relation to the
dwelling are to the acquisition of an interest in the
dwelling, and

(c) 10references to the “effective date” of a land transaction in
relation to the dwelling are to the date on which the
interest in the dwelling is acquired.”

(4) In sub-paragraph (3)—

(a) in the words before paragraph (a) after “(1)” insert “, (1A)”,

(b) 15in paragraph (a)—

(i) after “(6)(b)” insert “, (ba)”, and

(ii) after “(7)(b)” insert “, (ba)”, and

(c) after paragraph (b) insert—

(ba) paragraph 9B,”

(5) 20In sub-paragraph (4)—

(a) omit “, Wales”, and

(b) after “any” insert “relevant”.

(6) For sub-paragraph (5) substitute—

(5) For the purposes of sub-paragraph (4) a spouse or civil partner of
25P is “relevant” if the spouse or civil partner—

(a) is not a parent of the child, and

(b) is living together with P (see paragraph 9(3)).”

(7) Omit sub-paragraph (6).

15 In section 128(9)(b) of FA 2016 for ““during that period of three years””
30substitute “the words from “during” to “paragraph (b)””.

Commencement

16 (1) The amendments made by this Schedule (other than those made by
paragraphs 13 and 14(2), (3), (4)(a) and (5)(a)) have effect in relation to any
land transaction of which the effective date is, or is after, 22 November 2017.

(2) 35But the amendments made by paragraph 2 do not have effect in relation to a
transaction—

(a) effected in pursuance of a contract entered into and substantially
performed before 22 November 2017, or

(b) effected in pursuance of a contract entered into before that date and
40not excluded by sub-paragraph (3).

(3) A transaction effected in pursuance of a contract entered into before 22
November 2017 is excluded by this sub-paragraph if—

(a) there is any variation of the contract, or assignment of rights under
the contract, on or after 22 November 2017,

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(b) the transaction is effected in consequence of the exercise on or after
that date of any option, right of pre-emption or similar right, or

(c) on or after that date there is an assignment, subsale or other
transaction relating to the whole or part of the subject-matter of the
5contract as a result of which a person other than the purchaser under
the contract becomes entitled to call for a conveyance.

(4) The amendments made by paragraphs 13 and 14(2), (3), (4)(a) and (5)(a)
have effect in relation to any land transaction in relation to which the
amendment made by section 16(2) of the Wales Act 2014 (disapplication of
10UK stamp duty land tax) has effect.

Section 42

SCHEDULE 12 Landfill tax: disposals not made at landfill sites, etc

Part 1 Amendments of Part 3 of FA 1996

15Introduction

1 Part 3 of FA 1996 (landfill tax) is amended as set out in the following
provisions of this Part of this Schedule.

Taxable disposals

2 (1) Section 40 (charge to tax) is amended as follows.

(2) 20For subsection (2) substitute—

(2) A taxable disposal takes place where material is disposed of and
either—

(a) the disposal is made at a landfill site (see subsection (4)), or

(b) the disposal requires a permit or licence mentioned in
25subsection (4) but is not made at a landfill site.”

(3) After subsection (3) insert—

(4) Land is a landfill site at a given time if at that time—

(a) a permit under regulations made under—

(i) section 2 of the Pollution Prevention and Control Act
301999, or

(ii) Article 4 of the Environment (Northern Ireland)
Order 2002 (S.I. 2002/3153 (N.I. 7)S.I. 2002/3153 (N.I. 7)),

is in force in relation to the land and authorises deposits or
disposals in or on the land,

(b) 35a waste management licence issued under Part 2 of the Waste
and Contaminated Land (Northern Ireland) Order 1997
(S.I. 1997/2778 (N.I. 19)S.I. 1997/2778 (N.I. 19)) (waste on land) is in force in relation
to the land and authorises deposits in or on the land, or

(c) a licence under any provision for the time being having effect
40in Northern Ireland and corresponding to section 35 of the

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Environmental Protection Act 1990 (waste management
licences) is in force in relation to the land and authorises
disposals in or on the land.”

3 After section 40 insert—

40A 5Disposals of material

(1) For the purposes of this Part, there is a disposal of material if—

(a) material is disposed of on the surface of land or on a structure
set into the surface, or

(b) material is disposed of under the surface of land.

(2) 10For the purposes of subsection (1)(a) and (b) it does not matter
whether the material is placed in a container before it is disposed of.

(3) For the purposes of subsection (1)(b) it does not matter whether the
material—

(a) is covered after it is disposed of, or

(b) 15is disposed of in a cavity (such as a cavern or mine).

(4) If material is disposed of on the surface of land or on a structure set
into the surface with a view to the material being covered, the
disposal is to be treated as made when the material is disposed of
and not when it is covered.

(5) 20An order may for the purposes of this Part provide for—

(a) material to be treated as disposed of in circumstances where
it would not otherwise be so treated;

(b) material to be treated as not disposed of in circumstances
where it would otherwise be so treated.

(6) 25An order under subsection (5) may, among other things, make
provision by reference to—

(a) descriptions of material;

(b) the quantities disposed of;

(c) the nature of the site at which material is disposed of;

(d) 30the location of material in a site (for example, whether it is in
a discrete unit within the site).

(7) An order may for the purposes of this Part provide for a prohibited
disposal to be treated as a disposal falling within paragraph (b) of
section 40(2).

35“Prohibited disposal” here means a disposal of material the disposal
of which at a landfill site is prohibited by or by virtue of a prescribed
enactment.

(8) An order under this section may make provision subject to
exceptions, conditions or other qualifications.”

40Liability to pay landfill tax

4 (1) Section 41 (liability to pay tax) is amended as follows.

(2) In subsection (1), after “a taxable disposal” insert “made at a landfill site”.

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(3) After subsection (2) insert—

(3) A person is liable to pay tax charged on a taxable disposal not made
at a landfill site if the person—

(a) makes the disposal, or

(b) 5knowingly causes or knowingly permits the disposal to be
made.

(4) Every such person is jointly and severally liable to pay the tax
charged.

(5) In the case of a taxable disposal not made at a landfill site, a person
10within subsection (6) or (7) is taken for the purposes of this Part to be
a person who knowingly causes or knowingly permits the disposal
to be made, unless it is shown to the satisfaction of the
Commissioners that the person did not do so.

(6) A person is within this subsection if, before the time of the disposal
15of the material in question, the person—

(a) took any action with a view to the disposal of the material,

(b) was party to a contract for the sale of the material, or

(c) facilitated the transport or storage of the material.

(7) A person is within this subsection if at the time of the disposal the
20person—

(a) is the owner, or a lessee or occupier, of the land at which the
disposal is made,

(b) controls, or is able to control, a vehicle or trailer from which
the disposal is made, or

(c) 25is an officer of a body corporate or unincorporated
association that is within subsection (3)(a) or (3)(b).

(8) In subsection (7)(c) “officer”—

(a) in relation to a body corporate, means a director, manager,
secretary, chief executive or member of the committee of
30management, or a person purporting to act in such a capacity;

(b) in relation to an unincorporated association, means an officer
of the association or a member of its governing body, or a
person purporting to act in such a capacity.”

Exemptions

5 35In section 43 (material removed from water), in subsections (1), (3), (4) and
(5), after “A disposal” insert “made at a landfill site”.

6 In section 44 (mining and quarrying), in subsection (1), after “A disposal”
insert “made at a landfill site”.

7 (1) Section 45 (pet cemeteries) is amended as follows.

(2) 40In subsection (1), after “A disposal” insert “made at a landfill site”.

(3) In subsection (2)—

(a) in paragraph (a), for “landfill disposal” substitute “disposal of
material”;

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(b) in paragraph (b), for “landfill disposals” substitute “disposals of
material”.

8 In section 46 (power to vary), in subsection (2), before paragraph (a) insert—

(za) confer exemption by reference to guidance (as it has effect
5from time to time) issued by—

(i) a body established by or under any enactment, or

(ii) a government department or an agency of a
government department,

to the effect that particular kinds of disposal do not require a
10permit or licence mentioned in section 40(4);”.

Taxable activities

9 (1) Section 69 (taxable activities) is amended as follows.

(2) For subsection (1) substitute—

(1) A person carries out a taxable activity if the person—

(a) 15makes a taxable disposal (whether or not at a landfill site),

(b) permits a taxable disposal to be made at a landfill site, or

(c) knowingly causes or knowingly permits a taxable disposal to
be made elsewhere than at a landfill site,

and the person is liable to pay tax in respect of the disposal.”

(3) 20In subsection (2)—

(a) in paragraph (a), after “is made” insert “at a landfill site”;

(b) for “this section” substitute “subsection (1)(b)”.

Taxable disposals etc: supplementary and consequential amendments

10 In section 42 (amount of tax), in subsection (2)—

(a) 25for “Where the” substitute Where—

(a) the”;

(b) for “fines this section” substitute fines, and

(b) the disposal is made at a landfill site,

this section”.

11 30In section 51 (credit: general), in subsection (1)(a), after “liable to pay tax”
insert “in respect of the disposal of material at a landfill site”.

12 In section 52 (bad debts), in subsection (1)(a), after “taxable activity” insert
“at a landfill site”.

13 Omit sections 64 to 67.

14 (1) 35Section 70 (interpretation) is amended as follows.

(2) In subsection (1), at the appropriate places insert—

  • ““disposal” and “dispose of” shall be construed in accordance
    with section 40A;”;

  • ““landfill site” has the meaning given by section 40(4);”;

  • 40““operator”, in relation to a landfill site, means the person who
    at the relevant time is the holder of the permit (where section

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    40(4)(a) applies) or the licence (where section 40(4)(b) or (c)
    applies);”;

  • ““taxable person” means a person who is liable to pay tax on a
    taxable disposal.”

(3) 5Omit subsections (2) and (2A).

(4) In subsection (4), for “sections 64 to” substitute “sections 68 and”.

15 In section 71 (orders and regulations), in subsection (7)—

(a) before paragraph (a) insert—

(za) an order under section 40A which has the result that
10anything which would not otherwise be a taxable
disposal is a taxable disposal;”;

(b) omit paragraphs (ca), (cb) and (d).

16 (1) Schedule 5 (landfill tax) is amended as follows.

(2) Omit paragraph 1B (information: site restoration).

(3) 15Before paragraph 2 insert—

“Site information

1C (1) Regulations may require the operator of a landfill site—

(a) to retain plans, permits and licences relating to the site;

(b) to provide the Commissioners with copies of, or
20information relating to, plans, permits and licences
retained under paragraph (a).

(2) Regulations under sub-paragraph (1)(b) may be framed by
reference to such copies or information as may be stipulated in any
notice published by the Commissioners in pursuance of the
25regulations and not withdrawn by a further notice.”

(4) In paragraph 2A (records: material at landfill sites)—

(a) in the heading, after “landfill” insert “and other”;

(b) in sub-paragraph (1), for “relating to material” substitute “relating
to—

(a) 30material”;

(c) at the end of that sub-paragraph insert , and

(b) material disposed of elsewhere than at a landfill
site.”

(5) In paragraph 10 (power to take samples), in sub-paragraph (1) omit “as
35waste by way of landfill”.

(6) In paragraph 45 (adjustment of disposal contracts), in sub-paragraphs (1)(a)
and (c) and (2) omit “landfill”.

(7) In paragraph 46 (adjustment of construction contracts), in sub-paragraph
(1)(b) omit “landfill”.

40Registration

17 (1) Section 47 (registration) is amended as follows.

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(2) In subsections (2)(a), (5) and (6), after “taxable activities” insert “at a landfill
site”.

(3) After subsection (3) insert—

(3A) A registered person who forms the intention of carrying out taxable
5activities elsewhere than at a landfill site shall notify the
Commissioners of that intention.”

(4) After subsection (5) insert—

(5A) Where a person who is not registered carries out taxable activities
elsewhere than at a landfill site, the Commissioners may register the
10person with effect from the date when the person begins carrying out
those activities.

(5B) Subsections (2) to (5A) do not apply to a person within subsection (6)
of section 41 who, but for that subsection, would not be treated as
carrying out taxable activities.”

(5) 15In subsection (6), for “a person” substitute “a registered person”.

(6) For subsection (9) substitute—

(9) For the purposes of this section regulations may make—

(a) provision as to the time within which a notification is to be
made (including provision enabling the Commissioners to
20grant an extension of time);

(b) provision as to the form and manner in which any
notification is to be made and as to the information to be
contained in or provided with it;

(c) provision as to the criteria that the Commissioners are to
25apply in deciding whether to register a person under
subsection (5A);

(d) provision under which, in prescribed circumstances, taxable
activities at a site within subsection (9B) may, on a
provisional or conditional basis, be treated as carried out at a
30landfill site;

(e) provision requiring a person who has made a notification to
notify the Commissioners if any information contained in or
provided in connection with it is or becomes inaccurate;

(f) provision as to the correction of entries in the register
35(including provision for a person provisionally or
conditionally registered by virtue of paragraph (d) to be
treated, in prescribed circumstances, as never having been so
registered).

(9A) Provision made by regulations under subsection (9)(c) may be
40supplemented by provision made by notice published by the
Commissioners in accordance with the regulations.

(9B) A site is within this subsection if—

(a) it is not a landfill site, or

(b) it not known at the relevant time whether it is a landfill site
45or not.”

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(7) For subsection (10) substitute—

(10) In this Part—

  • “registered person” means—

    (a)

    a person registered under subsection (5) or (5A), and

    (b)

    5a person who was registered under this section before
    the passing of FA 2018 and who remains registered;

  • “registrable person” means a person who carries out taxable
    activities (whether registered or not), excluding a person
    within subsection (6) of section 41 who, but for that
    10subsection, would not be treated as carrying out taxable
    activities.”

Registration: supplementary and consequential amendments

18 In section 49 (accounting for tax and time for payment), for “registrable
person” substitute “registered person”.

19 (1) 15Section 59 (groups of companies) is amended as follows.

(2) In subsection (2)—

(a) for “condition” substitute “conditions”;

(b) for “is fulfilled” substitute “are fulfilled”.

(3) In subsection (3), for “The condition is that the” substitute “The conditions
20are that—

(a) each of the bodies corporate is a registered person, and

(b) the”.

20 In section 70 (interpretation), in subsection (1), for ““registrable person” has”
substitute ““registered person” and “registrable person” have”.

21 (1) 25Schedule 5 is amended as follows.

(2) In paragraph 2 (records: registrable persons), in the heading and in sub-
paragraphs (1) and (3)(a), for “registrable persons” substitute “taxable
persons”.

(3) In paragraph 26 (interest on under-declared tax), in sub-paragraphs (1)(a)
30and (4), for “registrable person” substitute “registered person”.

(4) In paragraph 27 (interest on unpaid tax etc), in sub-paragraphs (1)(a), (3)(a),
(5)(a) and (7), for “registrable person” substitute “registered person”.

Assessment

22 (1) Section 50 (power to assess) is amended as follows.

(2) 35In the heading, for “assess” substitute “assess: registered persons”.

(3) In subsection (1)(a), (b), (c) and (d) and subsection (2), for “a person”
substitute “a registered person”.

23 After that section insert—

50A Power to assess: unregistered persons

(1) 40Where—