Finance (No. 2) Bill (151)

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) Section 70 (interpretation) is amended as follows.

(2) 5In 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);”;

• ““operator”, in relation to a landfill site, means the person who
  10at the relevant time is the holder of the permit (where section
  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) 15Omit 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
20anything 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) 25Before 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
30information 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
35regulations and not withdrawn by a further notice.””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) 40material”;”

(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
waste by way of landfill”.

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

(7) 5In paragraph 46 (adjustment of construction contracts), in sub-paragraph
(1)(b) omit “landfill”.

Registration

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

(2) In subsections (2)(a), (5) and (6), after “taxable activities” insert “at a landfill
10site”.

(3) After subsection (3) insert—

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

(4) 15After 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
person with effect from the date when the person begins carrying out
those activities.

(5B) 20Subsections (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) In subsection (6), for “a person” substitute “a registered person”.

(6) For subsection (9) substitute—

“(9) 25For 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
grant an extension of time);

(b) provision as to the form and manner in which any
30notification 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
apply in deciding whether to register a person under
subsection (5A);

(d) 35provision 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
landfill site;

(e) provision requiring a person who has made a notification to
40notify 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
(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
supplemented by provision made by notice published by the
5Commissioners 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
or not.””

(7) 10For subsection (10) substitute—

“(10) In this Part—

• “registered person” means—

  (a)

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

  (b)

  a person who was registered under this section before
  15the 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
  subsection, would not be treated as carrying out taxable
  20activities.””

Registration: supplementary and consequential amendments

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

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

(2) 25In 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
are that—

“(a) 30each 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) Schedule 5 is amended as follows.

(2) 35In 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)
and (4), for “registrable person” substitute “registered person”.

(4) 40In 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) In the heading, for “assess” substitute “assess: registered persons”.

(3) In subsection (1)(a), (b), (c) and (d) and subsection (2), for “a person”
5substitute “a registered person”.

23 After that section insert—

“50A Power to assess: unregistered persons

(1) Where—

(a) it appears to the Commissioners that a person is liable to pay
10tax on a taxable disposal, and

(b) the person is not a registered person,

the Commissioners may assess the amount of tax due from the
person to the best of their judgment and notify it to the person.

(2) An assessment under this section must be accompanied by a notice—

(a) 15identifying the land where the disposal was made;

(b) indicating the date on which the disposal was made or
treated as made, or the date on which (or period within
which) the Commissioners believe it was made;

(c) explaining why the Commissioners believe that the person to
20whom the notification is sent is liable to pay tax on the
disposal;

(d) describing the methods used to calculate the amount of tax,
including the method used by the Commissioners to
determine the weight of the material disposed of;

(e) 25containing any other information prescribed by regulations.

(3) An assessment under this section is not invalidated by any
inaccuracy in the information given in the notice under subsection
(2).

(4) An assessment under this section—

(a) 30may relate to more than one taxable disposal;

(b) may relate to an unascertained number of taxable disposals;

(c) may relate to taxable disposals at more than one location.

(5) An assessment under this section shall not be made more than two
years after evidence of facts, sufficient in the Commissioners’
35opinion to justify the making of the assessment, comes to their
knowledge.

But where further such evidence comes to their knowledge after the
making of an assessment under this section another assessment may
be made under this section in addition to any earlier assessment.

(6) 40Where an amount has been assessed and notified to a person under
this section it shall be deemed to be an amount of tax due from the
person and may be recovered accordingly unless, or except to the
extent that, the assessment has subsequently been withdrawn or
reduced.””

Assessment: supplementary and consequential amendments

24 In section 54 (appeals), in subsection (2)—

(a) for “it is an assessment” substitute “it is—

(a) an assessment”;”

(b) 5at the end insert “, or

an assessment under section 50A.””

25 (1) Schedule 5 is amended as follows.

(2) In paragraph 27 (interest on unpaid tax etc)—

(a) after sub-paragraph (8) insert—

“(8A) 10Sub-paragraph (8B) below applies where under section
50A of this Act the Commissioners assess an amount as
being due from a person who is not a registered person in
respect of a taxable disposal and notify it to the person.

(8B) The amount shall carry interest for the period which—

(a) 15begins with the day (or the last day of the period)
notified under section 50A(2)(b), and

(b) ends with the day before that on which the amount
is paid.”;”

(b) in sub-paragraph (13)—

(i) 20in paragraph (a), after “or (7)” insert “or (8A)”;

(ii) in the words after paragraph (c), after “or (8)” insert “or (8B)”.

(3) In paragraph 33 (assessments: time limits)—

(a) in sub-paragraph (1)(a), after “section 50” insert “or 50A”;

(b) in sub-paragraph (1A), omit the word “or” at the end of paragraph
25(a) and after that paragraph insert—

“(aa) in the case of an assessment under section 50A,
evidence of facts, sufficient in the Commissioners’
opinion to justify the making of the assessment,
coming to their knowledge, or”.”

(4) 30In paragraph 36 (the register: publication)—

(a) for the heading substitute “Publication of information by
Commissioners”;

(b) after sub-paragraph (2) insert—

“(2A) The Commissioners may publish, by such means as they
35think fit—

(a) the names of persons assessed to tax under section
50A in respect of taxable disposals not made at a
landfill site;

(b) the addresses of any places used by persons within
40paragraph (a) for making taxable disposals or
otherwise for carrying on business.

This sub-paragraph does not apply where the assessment
in question is subject to an outstanding appeal.””

Part 2 Amendments of other Acts

FA 2008

26 (1) Schedule 36 to FA 2008 (information and inspection powers) is amended as
5follows.

(2) In paragraph 60 (business), after sub-paragraph (1) insert—

“(1A) A person who under section 41 of FA 1996 is liable to pay landfill
tax charged on a taxable disposal is treated for the purposes of this
Schedule (subject to regulations under this paragraph) as carrying
10on a business.””

(3) In paragraph 61A (involved third parties), in entry 12 of the table, for
“landfill disposal” substitute “disposal of material”.

27 (1) Schedule 41 to that Act (penalties: failure to notify etc) is amended as
follows.

(2) 15In the table in paragraph 1, in the entry for landfill tax, for “section 47(2) and
(3)” substitute “section 47(2), (3) and (3A)”.

(3) After paragraph 3 insert—

““Involvement in landfill disposal by unregistered person

3A A penalty is payable by a person (“P”) where P does an act which
20enables HMRC to assess an amount as landfill tax due from P
under section 50A of FA 1996.”

(4) In paragraph 5 (degrees of culpability), in sub-paragraph (3), after “a
relevant excise provision” insert “, or to assess an amount of landfill tax as
due from P under section 50A of FA 1996,”.

(5) 25After paragraph 6C insert—

“6CA (1) The penalty payable under paragraph 3A is—

(a) for a deliberate and concealed act or failure, 100% of the
potential lost revenue, and

(b) for a deliberate but not concealed act or failure, 70% of the
30potential lost revenue.

(2) No penalty is payable under paragraph 3A in any other case.””

(6) In paragraph 7 (potential lost revenue)—

(a) after sub-paragraph (8) insert—

“(8A) In the case of a relevant obligation under section 47 of FA
351996 (which relates to landfill tax), the potential lost
revenue is the amount of tax (if any) for which P is liable
for the period—

(a) beginning with the date with effect from which P is
required in accordance with that section to be
40registered or (as the case may be) from which the

Commissioners may register P under that section,
and

(b) ending with the day on which HMRC received
notification of, or otherwise became fully aware of,
5P’s liability to be registered or (as the case may be)
the Commissioners’ power to register P.”;”

(b) in sub-paragraph (9) omit “, landfill tax”.

(7) After paragraph 9 insert—

“9A In the case of the doing of an act which enables HMRC to assess an
10amount of landfill tax as due under section 50A of FA 1996, the
potential lost revenue is the amount of the tax which may be
assessed as due.””

FA 2011

28 In FA 2011, in Schedule 23 (data-gathering powers), in paragraph 25(c), for
15“landfill disposal” substitute “disposal of material”.

Part 3 Commencement and transitional provisions

Commencement

29 (1) The amendments made by this Schedule have effect in relation to disposals
20that are made (or treated as made) on or after 1 April 2018.

(2) Sub-paragraph (1) does not apply to the amendments made by paragraph 17
(as to which, see paragraph 30).

Registration

30 (1) In section 47 of FA 1996 as it has effect following the amendments made by
25this Schedule—

(a) the reference to taxable activities in subsection (3)(a) does not include
taxable activities that are to be carried out elsewhere than at a landfill
site before 1 April 2018;

(b) subsection (3A) has effect only where the intention of carrying out
30taxable activities elsewhere than at a landfill site is formed on or after
1 April 2018;

(c) subsection (4), as it applies in relation to taxable activities carried out
elsewhere than at a landfill site, has effect only where the person
ceases on or after 1 April 2018 to have the intention of carrying out
35the activities;

(d) subsection (5A), as it applies in relation to taxable activities carried
out before 1 April 2018, has effect as if “1 April 2018” were
substituted for “the date when the person begins carrying out those
activities”.

(2) 40Where a person is registered under section 47 of FA 1996 immediately before
the day on which this Act is passed, the registration continues after that day
until terminated in accordance with that section (as amended by paragraph
17) or otherwise.

Disposals before April 2018 at places other than landfill sites

31 (1) Where the Commissioners become aware of a disposal that—

(a) has been made at a place other than a landfill site,

(b) would, if made on or after 1 April 2018, require a permit or licence
5mentioned in subsection (4) of section 40 of FA 1996 (as that section
has effect on that day), and

(c) is not chargeable to tax apart from this paragraph,

the disposal is treated for the purposes of Part 3 of FA 1996 as having been
made at that place on 1 April 2018.

(2) 10But a person cannot be guilty of an offence, or liable to a civil penalty, solely
as a result of the retrospective effect of this paragraph.

32 (1) A person who is liable (by virtue of paragraph 31) to pay tax on a disposal
made before 1 April 2018 at a place other than a landfill site must—

(a) notify the Commissioners of the disposal, and

(b) 15provide the Commissioners with the required information,

no later than 30 April 2018.

(2) The required information is—

(a) the place where the disposal was made;

(b) the nature and weight of the material disposed of;

(c) 20any other information prescribed by regulations.

(3) Subsections (2), (3), (6), (8) and (9) of section 71 of FA 1996 (orders and
regulations) apply to regulations under sub-paragraph (2)(c) as they apply
to regulations under Part 3 of that Act.

33 Schedule 41 to FA 2008 (penalties: failure to notify etc) has effect as if—

(a) 25the obligation under paragraph 32 above were an obligation
specified in the Table in paragraph 1 of that Schedule;

(b) a reference in paragraph 6CA (inserted by paragraph 27(5) above) to
paragraph 3A included a reference to paragraph 1 as it has effect by
virtue of paragraph (a) above.

34 30Paragraphs 31 to 33 come into force on 1 April 2018.

Interpretation

35 Expressions used in this Part of this Schedule that are defined for the
purposes of Part 3 of FA 1996 have the same meaning in this Part of this
Schedule as in Part 3 of that Act (as amended by this Schedule).