Finance (No. 3) Bill (HL Bill 304)

Oil activities and petroleum revenue tax

36 Oil activities: transferable tax history

Schedule 14 makes provision for a company which sells an interest in an oil
licence and a company which buys that interest to make a joint election for an
5amount of the seller’s profits to be treated, in accordance with the provisions
of the Schedule, as if it were an amount of the purchaser’s profits.

37 Petroleum revenue tax: post-transfer decommissioning expenditure

(1) Schedule 3 to OTA 1975 (petroleum revenue tax: miscellaneous provisions) is
amended in accordance with this section.

(2) 10After paragraph 11 insert—

““Transfers of interests in oil fields: post-transfer decommissioning expenditure

11A (1) This paragraph applies if—

(a) there is, for the purposes of Schedule 17 to FA 1980, a transfer
by a participator in an oil field of the whole or part of an
15interest in the field, and

(b) on or after 1 November 2018, the OGA gives consent for the
transfer.

(2) Paragraph 8(1) (certain subsidised expenditure to be disregarded)
does not apply to any decommissioning expenditure that—

(a) 20is incurred by the new participator, and

(b) has been, or is to be, met directly or indirectly out of a
payment made by the old participator.

(3) Sub-paragraph (4) applies if, at the end of the transfer period, the old
participator is no longer a licensee or a participator in respect of any
25licensed area wholly or partly included in the oil field.

(4) Decommissioning expenditure that is incurred by the old
participator, after the end of the transfer period, is to be treated for
the purposes of this Act as having been incurred by the new
participator (and paragraph 8(1) does not apply to any such
30expenditure).

(5) If the old participator has transferred the whole or part of another
interest in the oil field to the new participator, but the condition in
sub-paragraph (1)(b) was not met in respect of the transfer,
references in sub-paragraphs (2) and (4) to decommissioning
35expenditure are references to such proportion of that expenditure as
is just and reasonable.

(6) In this paragraph—

(a) “decommissioning expenditure” means—

(i) expenditure that is incurred, in relation to the oil field
40mentioned in sub-paragraph (1)(a), for a purpose
within section 3(1)(i) or (j) (decommissioning or
restoration), and

(ii) is allowable under that section;

(b) “the old participator”, “the new participator” and “the
transfer period” have the same meaning as in Schedule 17 to
FA 1980 (see paragraph 1(3) of that Schedule).

(7) If there is, for the purposes of Schedule 17 to FA 1980, a subsequent
5transfer of the whole or part of an interest in the oil field mentioned
in sub-paragraph (1)(a), references in this paragraph to “the old
participator” include references to each participator whose interest,
or part of it, in the oil field is the subject of a transfer to which this
paragraph applies.”

(3) 10In paragraph 8, at the end insert—

“(3) This paragraph is subject to paragraph 11A (transfers of interests in
oil fields: post-transfer decommissioning expenditure).”

Miscellaneous reliefs

38 Entrepreneurs’ relief

15Schedule 15 contains provision amending Part 5 of TCGA 1992 (transfer of
business assets, entrepreneurs’ relief and investors’ relief) in connection with
entrepreneurs’ relief.

39 Gift aid etc: restrictions on associated benefits

(1) In section 418 of ITA 2007 (gifts to charities by individuals: restrictions on
20associated benefits) in subsection (2) (the variable limit) for paragraphs (a) to
(c) substitute—

“(a) in a case where the amount of the gift is £100 or less, 25% of that
amount, and

(b) in a case where the amount of the gift exceeds £100, the sum of
25£25 and 5% of the amount of the excess.”

(2) The amendment made by subsection (1) has effect in relation to gifts made on
or after 6 April 2019.

(3) In section 197 of CTA 2010 (payments to charities by companies: restrictions on
associated benefits) in subsection (2) (the variable limit) for paragraphs (a) to
30(c) substitute—

“(a) in a case where the amount of the payment is £100 or less, 25%
of that amount, and

(b) in a case where the amount of the payment exceeds £100, the
sum of £25 and 5% of the amount of the excess.”

(4) 35The amendment made by subsection (3) has effect in relation to payments
made on or after 6 April 2019.

40 Charities: exemption for small trades etc

(1) In section 528 of ITA 2007 (exemption for small trades of charitable trust:
condition that trading incoming resources etc do not exceed requisite limit) in
40subsection (6)(b) (the requisite limit)—

(a) for “£5,000” substitute £8,000”, and

(b) for “£50,000” substitute “£80,000”.

(2) The amendments made by subsection (1) have effect for the tax year 2019-20
and subsequent tax years.

(3) Section 482 of CTA 2010 (exemption for small trades of charitable company:
condition that trading incoming resources etc do not exceed requisite limit) is
5amended as follows.

(4) In subsection (6)(b) (the requisite limit)—

(a) for “£5,000” substitute “£8,000”, and

(b) for “£50,000” substitute “£80,000”.

(5) In subsection (7)—

(a) 10for “£5,000” substitute £8,000”, and

(b) for “£50,000” substitute “£80,000”.

(6) The amendments made by subsections (3) to (5) have effect in relation to
accounting periods beginning on or after 1 April 2019.

Part 2 15Other taxes

Stamp duty land tax

41 Relief for first-time buyers in cases of shared ownership

(1) Schedule 9 to FA 2003 (stamp duty land tax: shared ownership leases etc) is
amended as follows.

(2) 20In paragraph 4 (shared ownership lease: election where staircasing allowed),
after sub-paragraph (4) insert—

“(4A) See paragraph 15 for further provision in connection with relief for
first-time buyers.”

(3) After paragraph 14 insert—

25““Relief for first-time buyers: shared ownership lease where election made

15 Where—

(a) paragraph 4 applies, and

(b) relief is claimed under paragraph 1 of Schedule 6ZA in
respect of the grant of the lease concerned,

30no tax is chargeable in respect of so much of the chargeable
consideration for the grant as consists of rent.”

(4) After paragraph 15 (as inserted by subsection (3)) insert—

““Relief for first-time buyers: shared ownership lease where no election made

15A (1) This paragraph applies where—

(a) 35a shared ownership lease is granted, and

(b) no election is made for tax to be charged in accordance with
paragraph 2 or 4.

(2) For the purpose of determining whether the second condition in
paragraph 1 of Schedule 6ZA is met in respect of the grant, the
chargeable consideration for the grant is to be treated as being the
amount stated in the lease in accordance with paragraph 2(2)(e) or
5paragraph 4(2)(e)(i) or (ii).

(3) If relief is claimed in respect of the grant under paragraph 1 of
Schedule 6ZA no tax is chargeable in respect of so much of the
chargeable consideration for the grant as consists of rent.

(4) In this paragraph “shared ownership lease” has the same meaning as
10in paragraph 4A.

Relief for first-time buyers: shared ownership trust where no election made

15B (1) This paragraph applies where—

(a) a shared ownership trust is declared, and

(b) no election is made for tax to be charged in accordance with
15paragraph 9.

(2) For the purpose of determining whether the second condition in
paragraph 1 of Schedule 6ZA is met in respect of the declaration, the
chargeable consideration for the declaration is to be treated as being
the sum specified in the trust in accordance with paragraph 7(4)(f).

(3) 20If relief is claimed in respect of the declaration under paragraph 1 of
Schedule 6ZA no tax is chargeable in respect of any rent-equivalent
payment treated by reason of paragraph 11(b) as rent.”

(5) For the italic cross-heading before paragraph 16 substitute “No relief for first-
time buyers for staircasing transactions etc”.

(6) 25In paragraph 16 (cases where first-time buyer’s relief is not available)—

(a) in sub-paragraph (1), omit paragraphs (a), (b) and (d) (but not “or” at
the end of paragraph (d)), and

(b) in sub-paragraph (2), omit paragraphs (a) and (c) (but not “or” at the
end of paragraph (c)).

(7) 30The amendments made by this section have effect in relation to—

(a) any land transaction of which the effective date is on or after 29 October
2018, and

(b) any land transaction of which the effective date is before 29 October
2018 and in respect of which a land transaction return has not been
35given by that date.

42 Repayment to first-time buyers in cases of shared ownership

(1) Until 29 October 2019, a claim for the repayment of tax may be made in respect
of a land transaction within subsection (2) or (3).

(2) A transaction is within this subsection if the amount of tax chargeable in
40respect of the transaction would have been less had the amendment made by
section 41(3) been in force from the effective date of the transaction.

(3) A transaction is within this subsection if first-time buyer’s relief—

(a) could not have been claimed for the transaction, but

(b) could have been claimed had the amendments made by section 41(4),
(5) and (6) been in force from the effective date of the transaction.

(4) Where a claim is made under this section, HMRC must repay—

(a) in a case where the transaction is within subsection (2), so much of the
5tax paid as exceeds the amount that would have been chargeable had
the amendment made by section 41(3) been in force from the effective
date of the transaction, and

(b) in a case where the transaction is within subsection (3), so much of the
tax paid as exceeds the amount that would have been chargeable had
10the amendments made by section 41(4), (5) and (6) been in force from
the effective date of the transaction and had a claim for first-time
buyer’s relief been made.

(5) A claim under this section must be made by amendment of the land transaction
return.

(6) 15Sub-paragraphs (2A) and (3) of paragraph 6 of Schedule 10 to FA 2003 do not
apply in the case of an amendment of a land transaction return made for the
purpose of making a claim under this section.

(7) In this section—

(a) the expressions used have the same meaning as in Part 4 of FA 2003;

(b) 20“first-time buyer’s relief” means relief under Schedule 6ZA to FA 2003.

43 Higher rates of tax for additional dwellings etc

(1) Schedule 4ZA to FA 2003 (stamp duty land tax: higher rates for additional
dwellings and dwellings purchased by companies) is amended as follows.

(2) In paragraph 2 (meaning of “higher rates transaction” etc) after sub-paragraph
25(4) insert—

“(5) References in this Schedule to a major interest in a dwelling include an
undivided share in a major interest in a dwelling.”

(3) The amendment made by subsection (2) has effect in relation to any land
transaction of which the effective date is on or after 29 October 2018.

(4) 30In paragraph 8(3) (period during which land transaction return may be
amended to take account of subsequent disposal of main residence) for the
words from “whichever” to the end substitute “the period of 12 months
beginning with—

(a) the effective date of the subsequent transaction, or

(b) 35if later, the filing date for the return.”

(5) The amendment made by subsection (4) has effect in a case where the effective
date of the subsequent transaction is on or after 29 October 2018.

44 Exemption in respect of financial institutions in resolution

(1) In FA 2003, after section 66 insert—

“66A 40Resolution of financial institutions

(1) A land transaction is exempt from charge if it is effected by—

(a) an instrument listed in subsection (2), or

(b) an instrument made under an instrument listed in subsection
(2).

(2) The instruments are—

(a) a property transfer instrument made in accordance with section
512(2) of the Banking Act 2009 (transfer to a bridge bank),

(b) a property transfer instrument made in accordance with section
12ZA(3) of that Act (transfer to asset management vehicle),

(c) a supplemental property transfer instrument made in
accordance with section 42(2) of that Act where the original
10instrument was made in accordance with section 12(2), 12ZA(3)
or 41A(2) of that Act,

(d) a property transfer instrument made in accordance with section
41A(2) of that Act (transfer of property subsequent to resolution
instrument),

(e) 15a bridge bank supplemental property transfer instrument made
in accordance with section 44D(2) of that Act,

(f) a property transfer order made in accordance with section 45(2)
of that Act (temporary public ownership: property transfer), or

(g) a third-country instrument made in accordance with section
2089H(2) or 89I(4) of that Act.

(3) References in subsection (2) to a provision of the Banking Act 2009
include references to that provision as applied by or under any other
provision of that Act (including where it is applied with modifications
or in a substituted form).”

(2) 25The amendment made by this section has effect in relation to any land
transaction the effective date of which is on or after the day on which this Act
is passed.

45 Changes to periods for delivering returns and paying tax

(1) FA 2003 is amended as follows.

(2) 30In section 76(1) (duty to deliver land transaction return), for “30 days”
substitute “14 days”.

(3) For section 80(2) (adjustment where contingency ceases or consideration is
ascertained) substitute—

“(2) If the effect of the new information is that a transaction becomes
35notifiable, the purchaser must make a return to HMRC within 14 days.

(2A) If the effect of the new information is that—

(a) tax is payable in respect of a transaction where none was
payable before and subsection (2) does not apply, or

(b) additional tax is payable in respect of a transaction,

40the purchaser must make a further return to HMRC within 30 days.

(2B) For the purposes of subsections (2) and (2A), any tax or additional tax
payable is calculated according to the effective date of the transaction.

(2C) If a purchaser is required to make a return under subsection (2) or a
further return under subsection (2A)—

(a) that return must contain a self-assessment of the tax chargeable
in respect of the transaction on the basis of the information
contained in the return, and

(b) the tax or additional tax payable must be paid not later than the
5filing date for that return.”

(4) In section 81 (further return where relief withdrawn)—

(a) in subsection (1B)—

(i) after paragraph (c) insert—

“(ca) in the case of relief under paragraph 5CA of that
10Schedule (acquisition under a regulated home
reversion plan), the first day in the period
mentioned in paragraph 5IA(2) of that Schedule
on which the purchaser holds the higher
threshold interest otherwise than for the
15purposes of the regulated home reversion plan,
unless paragraph 5IA(3)(a) and (b) applies;”, and”

(ii) after paragraph (d) insert—

“(da) in the case of relief under paragraph 5EA of that
Schedule (acquisition by management company
20of flat for occupation by caretaker), the first day
in the period mentioned in paragraph 5JA(2) of
that Schedule on which the purchaser holds the
higher threshold interest otherwise than for the
purpose of making the flat available for use as
25caretaker accommodation;”, and”

(b) in subsection (2A), after “subsection (1)” insert “or (1A)”.

(5) For section 81A(1) (return or further return in consequence of later linked
transaction) substitute—

“(1) Where the effect of a transaction (“the later transaction”) that is linked
30to an earlier transaction is that the earlier transaction becomes
notifiable, the purchaser under the earlier transaction must deliver a
return in respect of that transaction before the end of the period of 14
days after the effective date of the later transaction.

(1A) Where the effect of a transaction (“the later transaction”) that is linked
35to an earlier transaction is that—

(a) tax is payable in respect of the earlier transaction where none
was payable before and subsection (1) does not apply, or

(b) additional tax is payable in respect of the earlier transaction,

the purchaser under the earlier transaction must deliver a further
40return in respect of that transaction before the end of the period of 30
days after the effective date of the later transaction.

(1B) For the purposes of subsections (1) and (1A), any tax or additional tax
payable is calculated according to the effective date of the earlier
transaction.

(1C) 45Where a purchaser is required to deliver a return under subsection (1)
or a further return under subsection (1A)—

(a) that return must include a self-assessment of the amount of tax
chargeable as a result of the later transaction, and

(b) the tax or additional tax payable must be paid not later than the
filing date for that return.”

(6) In section 86(2) (payment of tax), before paragraph (a) insert—

“(za) any of paragraphs 5G to 5K of Schedule 4A (higher rate for
5certain transactions),”.

(7) In section 87 (interest on unpaid tax)—

(a) after subsection (1) insert—

“(1A) But where the relevant date is determined by subsection (3)(aa),
(aaa), (ab) or (c), and a return is required to be delivered before
10the end of the period of 14 days after that relevant date, interest
is instead payable on the amount of any unpaid tax from the
end of that period until the tax is paid.”,”

(b) in subsection (2), after “subsection (1)” insert “or (1A)”, and

(c) in subsection (3), before paragraph (a) insert—

“(za) 15in the case of an amount payable because relief is
withdrawn under any of paragraphs 5G to 5K of
Schedule 4A (higher rate for certain transactions), the
date which is the relevant date for the purposes of
section 81(1A);”.

(8) 20In Schedule 17A (further provisions relating to leases)—

(a) for paragraph 3(3) substitute—

“(3) Where the effect of sub-paragraph (2) in relation to the
continuation of the lease for a period (or further period) of
one year after the end of a fixed term is that a transaction
25becomes notifiable, the purchaser must deliver a return in
respect of that transaction before the end of the period of 14
days after the end of that one year period.

(3ZA) Where the effect of sub-paragraph (2) in relation to the
continuation of the lease for a period (or further period) of
30one year after the end of a fixed term is that—

(a) tax is payable in respect of a transaction where none
was payable before and sub-paragraph (3) does not
apply, or

(b) additional tax is payable in respect of a transaction,

35the purchaser must deliver a further return in respect of that
transaction before the end of the period of 30 days after the
end of that one year period.

(3ZB) For the purposes of sub-paragraphs (3) and (3ZA), any tax or
additional tax payable is calculated according to the effective
40date of the transaction.

(3ZC) Where a purchaser is required to deliver a return under sub-
paragraph (3) or a further return under sub-paragraph
(3ZA)—

(a) that return must include a self-assessment of the
45amount of tax chargeable in respect of the transaction
on the basis of the information contained in the
return, and

(b) the tax or additional tax payable must be paid not
later than the filing date for that return.”,”

(b) for paragraph 4(3) substitute—

“(3) Where the effect of sub-paragraph (1) in relation to the
5continuation of the lease after the end of a deemed fixed term
is that a transaction becomes notifiable, the purchaser must
deliver a return in respect of that transaction before the end
of the period of 14 days after the end of that term.

(3A) Where the effect of sub-paragraph (1) in relation to the
10continuation of the lease after the end of a deemed fixed term
is that—

(a) tax is payable in respect of a transaction where none
was payable before and sub-paragraph (3) does not
apply, or

(b) 15additional tax is payable in respect of a transaction,

the purchaser must deliver a further return in respect of that
transaction before the end of the period of 30 days after the
end of that term.

(3B) For the purposes of sub-paragraphs (3) and (3A), any tax or
20additional tax payable is calculated according to the effective
date of the transaction.

(3C) Where a purchaser is required to deliver a return under sub-
paragraph (3) or a further return under sub-paragraph
(3A)—

(a) 25that return must include a self-assessment of the
amount of tax chargeable in respect of the transaction
on the basis of the information contained in the
return, and

(b) the tax or additional tax payable must be paid not
30later than the filing date for that return.”, and”

(c) for paragraph 8(3) substitute—

“(3) If the result as regards the rent paid or payable in respect of
the first five years of the term of the lease is that a transaction
becomes notifiable, the purchaser must make a return to
35HMRC within 14 days of the date referred to in sub-
paragraph (1)(a) or (b).

(3A) If the result as regards the rent paid or payable in respect of
the first five years of the term of the lease is that—

(a) tax is payable in respect of a transaction where none
40was payable before and sub-paragraph (3) does not
apply, or

(b) additional tax is payable in respect of a transaction,

the purchaser must make a further return to HMRC within 30
days of the date referred to in sub-paragraph (1)(a) or (b).

(3B) 45If a purchaser is required to make a return under sub-
paragraph (3) or a further return under sub-paragraph
(3A)—

(a) that return must contain a self-assessment of the tax
chargeable in respect of the transaction on the basis of
the information contained in the return,

(b) the tax so chargeable is to be calculated by reference
5to the rates in force at the effective date of the
transaction, and

(c) the tax or additional tax payable must be paid not
later than the filing date for that return.”

(9) In Schedule 61 to FA 2009 (alternative finance investment bonds)—

(a) 10in paragraph 7(5) (interest due on first transaction where relief is
withdrawn) for “30 days” substitute “14 days”, and

(b) in paragraph 20(3)(a) (no relief where bond-holder acquires control of
underlying asset) for “30 days” substitute “14 days”.

(10) The amendments made by this section are to be treated as having effect in
15relation to—

(a) any land transaction with an effective date on or after 1 March 2019,
and

(b) any land transaction with an effective date before 1 March 2019 which
becomes notifiable on or after 1 March 2019.

20Stamp duty and SDRT

46 Stamp duty: transfers of listed securities and connected persons

(1) This section applies if—

(a) an instrument transfers listed securities to a company or a company’s
nominee (whether or not for consideration), and

(b) 25the person transferring the securities is connected with the company or
is the nominee of a person connected with the company.

(2) “Listed securities” are stock or marketable securities which are regularly
traded on—

(a) a regulated market,

(b) 30a multilateral trading facility, or

(c) a recognised foreign exchange,

and expressions used in paragraphs (a) to (c) have the same meaning as in
section 80B of FA 1986 (intermediaries: supplementary).

(3) For the purposes of the enactments relating to stamp duty—

(a) 35in a case where listed securities are transferred for consideration which
consists of money or any stock or security, or to which section 57 of the
Stamp Act 1891 applies, the amount or value of the consideration is to
be treated as being equal to—

(i) the amount or value of the consideration for the transfer, or

(ii) 40if higher, the value of the listed securities;

(b) in any other case, the transfer of listed securities effected by the
instrument is to be treated as being for an amount of consideration in
money equal to the value of the listed securities.

(4) For the purposes of subsection (3)—