(5) Regulations under this section are to be made by statutory instrument.

(6) A statutory instrument containing regulations under this section which amend
or repeal an enactment contained in an Act may not be made unless a draft of
the instrument has been laid before, and approved by resolution of, the House
5of Commons.

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

Payment of unlawful advance corporation tax

84 Interest in respect of unlawful ACT

(1) 10This section applies where—

(a) on any date before 12 December 2012, a person started proceedings
against the Commissioners in the High Court or the Court of Session,

(b) the proceedings include a claim arising out of a relevant payment, and

(c) the claim has not been settled, discontinued or finally determined.

(2) 15“Relevant payment” means a payment of unlawful ACT that—

(a) was made by the person on or after 1 January 1996 or in the period of 6
years ending immediately before the date the proceedings were started,
and

(b) was set off or repaid (wholly or in part) before the proceedings were
20started.

(3) The person is entitled to an order requiring the Commissioners to pay to the
person—

(a) an amount (“the principal amount”) equal to the amount of interest that
would have accrued if simple interest had accrued on the relevant
25payment at the appropriate rate for the period beginning with the date
the payment was made and ending with—

(i) the date as regards which the unlawful ACT was set off, or

(ii) the date the unlawful ACT was repaid, and

(b) simple interest at the appropriate rate on the principal amount for the
30period beginning with the day after the date mentioned in paragraph
(a)(i) or (ii) and ending with the date the principal amount is paid.

(4) “The appropriate rate” is, in relation to any day, the rate specified in the
following table in respect of that day.

(5) Where the unlawful ACT was repaid, any amount of interest or repayment
20supplement paid by the Commissioners on the making of the repayment is to
be deducted from the principal amount (and subsection (3)(b) has effect
accordingly).

(6) Where part of the unlawful ACT has been set off or repaid at one time, and part
of it has been set off or repaid at another time or has not been set off or repaid,
25for the purposes of this section treat each part as a separate payment.

(7) In this section—

• “the Commissioners” means the Commissioners for Her Majesty’s
  Revenue and Customs (or, in relation to any time before the
  commencement of section 5 of the Commissioners for Revenue and
  30Customs Act 2005, the Commissioners of Inland Revenue);

• “set off or repaid”: references to a payment of unlawful ACT being set off
  or repaid are—

  (a)

  to it being set against a liability to corporation tax of any person,
  or

  (b)

  35to it being repaid by the Commissioners;

• “settled” means settled by agreement;

• “unlawful ACT” means advance corporation tax that was unlawfully
  levied.

(8) The Treasury may by regulations substitute for the date for the time being
specified in subsection (1)(a) such later date as they consider appropriate.

(9) Regulations under this section are to be made by statutory instrument.

(10) A statutory instrument containing regulations under this section is subject to
5annulment in pursuance of a resolution of the House of Commons.

85 Section 84: supplementary

(1) This section supplements section 84.

(2) Nothing in section 84 limits the remedies that a court may award in respect of
the claim.

(3) 10However—

(a) a person is not entitled to an order under section 84 in respect of a
relevant payment if the person has obtained any other relevant remedy
in respect of the relevant payment, and

(b) a person who has obtained an order under section 84 in respect of a
15relevant payment is not entitled to any other relevant remedy in respect
of the relevant payment.

(4) In subsection (3) “relevant remedy” means a remedy for the loss of use of the
amount of the relevant payment during the period mentioned in section
84(3)(a) (or during some similar period).

(5) 20Any interest or repayment supplement paid by the Commissioners on the
making of—

(a) a repayment of a relevant payment, or

(b) a repayment of corporation tax occurring as a result of a relevant
payment,

25is not regarded as a relevant remedy in respect of the relevant payment.

(6) Where the right to bring a claim arising out of a payment of unlawful ACT has
been transferred from the person who made the payment (“the payor”) to
another person (“the successor”)—

(a) in section 84(1) the reference to “a person” is to the payor or the
30successor;

(b) in section 84(2) the reference to “the person” is to the payor;

(c) in section 84(3) the reference to “the person” is to the successor.

(7) Any amount paid by the Commissioners to a person on a day by virtue of
section 84 is to be brought into account when calculating, for tax purposes, the
35profits (or income) of the person for any period which includes that day.

Voluntary returns

86 Voluntary returns

(1) In Part 2 of TMA 1970 (returns of income and gains), after section 12C insert—

““Voluntary returns

12D 5Returns made otherwise than pursuant to a notice

(1) This section applies where—

(a) a person delivers a purported return (“the relevant return”)
under section 8, 8A or 12AA (“the relevant section”) for a year
of assessment or other period (“the relevant period”),

(b) 10no notice under the relevant section has been given to the
person in respect of the relevant period, and

(c) HMRC treats the relevant return as a return made and delivered
in pursuance of such a notice.

(2) For the purposes of the Taxes Acts—

(a) 15treat a relevant notice as having been given to the person on the
day the relevant return was delivered, and

(b) treat the relevant return as having been made and delivered in
pursuance of that notice (and, accordingly, treat it as if it were a
return under the relevant section).

(3) 20“Relevant notice” means—

(a) in relation to section 8 or 8A, a notice under that section in
respect of the relevant period;

(b) in relation to section 12AA, a notice under section 12AA(3)
requiring the person to deliver a return in respect of the relevant
25period, on or before the day the relevant return was delivered
(or, if later, the earliest day that could be specified under section
12AA).

(4) In subsection (1)(a) “purported return” means anything that—

(a) is in a form, and is delivered in a way, that a corresponding
30return could have been made and delivered had a relevant
notice been given, and

(b) purports to be a return under the relevant section.

(5) Nothing in this section affects sections 34 to 36 or any other provisions
of the Taxes Acts specifying a period for the making or delivering of
35any assessment (including self-assessment) to income tax or capital
gains tax.”

(2) In Schedule 18 to FA 1998 (company tax returns etc) at the end of Part 2 insert—

““Voluntary returns

20A (1) This paragraph applies where—

(a) 40a company delivers a purported return (“the relevant
return”) for a period (“the relevant period”),

(b) no notice under paragraph 3 has been given to the company
in respect of the relevant period, and

(c) Her Majesty’s Revenue and Customs treats the relevant
return as a return made and delivered in pursuance of such a
notice.

(2) For the purposes of the Taxes Acts—

(a) 5treat a relevant notice as having been given to the company
on the day the relevant return was delivered, and

(b) treat the relevant return as having been made and delivered
in pursuance of that notice (and, accordingly, treat it as if it
were a company tax return under paragraph 3).

(3) 10“Relevant notice” means a notice under paragraph 3 requiring the
company to deliver a return for the relevant period.

(4) In sub-paragraph (1)(a) “purported return” means anything that—

(a) is in a form, and is delivered in a way, that a corresponding
return could have been made and delivered had a relevant
15notice been given, and

(b) purports to be a company tax return.

(5) Nothing in this paragraph affects paragraph 46 or any other
provisions of the Taxes Acts specifying a time limit for the making of
an assessment.”

(3) 20The amendments made by this section are treated as always having been in
force.

(4) However, those amendments do not apply in relation to a purported return
delivered by a person if, before 29 October 2018—

(a) the person made an appeal under the Taxes Acts, or a claim for judicial
25review, and

(b) the ground (or one of the grounds) for the making of the appeal or claim
was that the purported return was not a return under section 8, 8A or
12AA of TMA 1970 or paragraph 3 of Schedule 18 to FA 1998 because
no relevant notice was given.

(5) 30The Treasury may by regulations—

(a) make such amendments of relevant tax legislation as they consider
appropriate in consequence of subsection (1) or (2);

(b) make such amendments of section 12D of TMA 1970 (inserted by
subsection (1) of this section) as they consider appropriate in
35connection with the coming into force of section 61 of, and Schedule 14
to, F(No.2)A 2017 (digital reporting and record keeping for income tax
etc).

(6) In subsection (5)(a) “relevant tax legislation” means—

(a) TMA 1970,

(b) 40Schedule 18 to FA 1998, or

(c) any other enactment relating to income tax, corporation tax or capital
gains tax.

(7) Regulations under this section are to be made by statutory instrument.

(8) A statutory instrument containing regulations under this section is subject to
45annulment in pursuance of a resolution of the House of Commons.

Interest

87 Interest under section 178 of FA 1989 and section 101 of FA 2009

(1) Where, before the day on which this Act is passed—

(a) regulations under subsection (1) of section 178 of FA 1989 provide for a
5rate of interest for the purposes of an enactment to which that section
applies, but

(b) no order was made under subsection (7) of that section appointing a
day for that enactment,

the rate has effect for any period of time beginning on or after the day on which
10the regulations came into force even though no such order was made.

(2) In section 178 of FA 1989 (setting of rates of interest)—

(a) in subsection (2), omit paragraph (u);

(b) in subsection (3)(f), after “provide that” insert “rates or”;

(c) omit subsection (7) (but this repeal does not affect any order already
15made under that subsection).

(3) In Schedule 35 to FA 2014 (promoters of tax avoidance schemes), in paragraph
11 (interest on penalties)—

(a) in sub-paragraph (1), for the words from “at the rate” to the end
substitute “in accordance with section 101 of FA 2009”;

(b) 20omit sub-paragraph (2).

(4) In the Taxes (Interest Rate) Regulations 1989 (S.I. 1989/1297S.I. 1989/1297)—

(a) in regulation 3(1), after paragraph (e) insert—

“(f) section 14(4) of the Ports Act 1991 (for any period of time
beginning on or after the day on which the Finance Act
252019 is passed), and

(g) paragraph 8 of Schedule 1 to the Employment Act 2002
(for any period of time beginning on or after the day on
which the Finance Act 2019 is passed),”;

(b) after regulation 5 insert—

“5A 30Applicable rate of interest for diverted profits tax

For the purposes of section 79 of the Finance Act 2015, the rate
applicable under section 178 of the Finance Act 1989 is—

(a) 3% per annum for the period beginning with 1 October
2015 and ending with 5 April 2017, and

(b) 352.5% per annum thereafter.”

(5) Regulations under section 178(1) of FA 1989 may revoke or amend the
provision made in the Taxes (Interest Rate) Regulations 1989 by subsection (4).

(6) Section 101 of FA 2009 is to be regarded as having come into force on 6 May
2014 for the purposes of—

(a) 40penalties under paragraphs 6B to 6D of Schedule 55 to FA 2009, in the
case of returns falling within item 4 in the Table in paragraph 1 of that
Schedule (real time information for PAYE);

(b) penalties under paragraphs 5 to 8 of Schedule 56 to FA 2009, in the case
of payments of tax falling within item 2 or 4 of the Table in paragraph
451 of that Schedule (PAYE and CIS amounts);

(c) a penalty under section 208 or 226 of FA 2014 (penalties relating to
follower notices, accelerated payment notices and partner payment
notices), where the penalty relates to income tax payable under PAYE
regulations.

5Part 5 Miscellaneous and final

Regulatory capital securities

88 Regulatory capital securities and hybrid capital instruments

Schedule 19—

(a) 10makes provision revoking the previous rules that applied in relation to
regulatory capital securities, and

(b) makes new provision in relation to hybrid capital instruments.

EU withdrawal

89 Minor amendments in consequence of EU withdrawal

(1) 15The Treasury may by regulations make such provision as they consider
appropriate—

(a) for the purpose of maintaining the effect of any relevant tax legislation
on the withdrawal of the United Kingdom from the EU (and,
accordingly, on the United Kingdom ceasing to be an EEA state);

(b) 20for the purposes of any relevant tax, in connection with any provision
made by regulations under section 8 of the European Union
(Withdrawal) Act 2018 (power to remedy deficiencies);

(c) in connection with any reference in relevant tax legislation to euros;

(d) amending paragraph 2(4) of Schedule 5 to FA 1997 (indirect taxes:
25overpayments etc) for the purposes of removing the reference to EU
legislation;

(e) amending section 173 of FA 2006 (international tax enforcement) to
permit the disclosure of information to the Commissioners by other
public authorities and by the Commissioners (subject to conditions
30about its use) to persons outside the United Kingdom.

(2) The regulations may—

(a) amend any enactment;

(b) contain incidental, transitional or saving provision;

(c) make different provision for different purposes.

(3) 35Where—

(a) regulations under this section are made after exit day, and

(b) a provision of the regulations is made by virtue of any of paragraphs (a)
to (d) of subsection (1),

the regulations may provide that the provision has effect from exit day.

(4) 40Regulations under this section are to be made by statutory instrument.

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

(6) In this section—

• “the Commissioners” means the Commissioners for Her Majesty’s
  5Revenue and Customs;

• “enactment” includes an enactment comprised in subordinate legislation;

• “relevant tax” means any tax (including stamp duty) except—

  (a)

  value added tax,

  (b)

  any duty of customs, or

  (c)

  10any excise duty under the Alcoholic Liquor Duties Act 1979, the
  Hydrocarbon Oil Duties Act 1979 or the Tobacco Products Duty
  Act 1979;

• “relevant tax legislation” means any enactment relating to a relevant tax.

Preparatory expenditure

90 15Emissions reduction trading scheme: preparatory expenditure

(1) The Secretary of State may incur expenditure in preparing for the introduction
of a scheme for charges to be imposed for the allocation of emissions
allowances.

(2) In subsection (1), “emissions allowance” means an allowance under paragraph
205 of Schedule 2 to the Climate Change Act 2008 relating to a trading scheme
dealt with under Part 1 of that Schedule (schemes limiting activities relating to
emissions of greenhouse gas).

Other

91 Interpretation

25In this Act the following abbreviations are references to the following Acts.

92 Short title

This Act may be cited as the Finance Act 2019.

SCHEDULES

Section 13

SCHEDULE 1 Chargeable gains accruing to non-residents etc

Part 1 5Extending cases in which non-residents are charged to tax etc

1 TCGA 1992 is amended as follows.

2 For the sections contained in Part 1 substitute—

““Part 1 Capital gains tax and corporation tax on chargeable gains

CHAPTER 1 10Capital gains tax

Charge to capital gains tax

1 Capital gains tax

(1) Capital gains tax is charged for a tax year on chargeable gains
accruing in the year to a person on the disposal of assets.

(2) 15As a result of section 4 of CTA 2009, capital gains tax is not charged
on gains accruing to a company, but corporation tax is chargeable
instead in accordance with—

(a) section 2 of CTA 2009,

(b) Chapter 2 of this Part, and

(c) 20other relevant provisions of the Corporation Tax Acts.

(3) Capital gains tax is charged on the total amount of chargeable gains
accruing to a person in a tax year after deducting—

(a) any allowable losses accruing to the person in the tax year,
and

(b) 25so far as not previously deducted under this subsection, any
allowable losses accruing to the person in any previous tax
year.