Finance Bill (HC Bill 114)

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(6)In relation to an offence committed before the commencement of
section 282 of the Criminal Justice Act 2003 (increase in maximum
term that may be imposed on summary conviction of offence triable
either way), subsection (5)(a) has effect in England and Wales as if for
5“12 months” there were substituted “6 months”.

(7)Restricted fuel is liable to forfeiture if it is—

(a)taken into the fuel supply of an engine as mentioned in
section 14E(1),

(b)supplied as mentioned in subsection (1)(c) or (2)(c) above, or

(c)10taken into the fuel supply of an engine provided for
propelling a vessel at a time when it is not a private pleasure
craft and remains in the vessel as part of that fuel supply at a
later time when it becomes a private pleasure craft.

(8)If rebated fuel is used or taken into the fuel supply of an engine in
15contravention of section 14E(1), the Commissioners may—

(a)assess an amount equal to the rebate on like fuel at the rate in
force at the time of the contravention as being excise duty due
from any person who—

(i)used the rebated fuel, or

(ii)20was liable for it being taken into the fuel supply, and

(b)notify the person or the person’s representative accordingly.

(9)In this section—

  • “prohibited use” means a use that contravenes section 14E(1);

  • “rebated fuel” has the meaning given by section 14E(3);

  • 25“restricted fuel” has the meaning given by section 14E(2).”

10In section 20AAA(4)(a) after “vehicle” insert “or as fuel for propelling a
private pleasure craft”.

11In section 24 (control of use of duty-free and rebated oil) after subsection (3)
insert—

(3A)30Subsection (3) does not apply to heavy oil, biodiesel or bioblend used
for propelling a private pleasure craft if it is proved to the satisfaction
of the Commissioners that the heavy oil, biodiesel or bioblend was
taken into the vessel in accordance with the laws of the place where
it was taken in.”

1235In section 27(1) at the appropriate place insert—

  • ““private pleasure craft” has the meaning given by section
    14E;”.

13(1)Schedule 4 (regulations under section 24) is amended as follows.

(2)In paragraph 19 after “vehicle” insert “or a vessel”.

(3)40In paragraph 20 after “vehicle” insert “or a vessel”.

(4)In paragraph 21—

(a)the existing provision becomes sub-paragraph (1) of that paragraph;

(b)in that sub-paragraph—

(i)after “vehicles” insert “or vessels”;

(ii)45after “vehicle” insert “or vessel”;

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(c)after that sub-paragraph insert—

(2)In this paragraph “premises” includes any floating
structure.

(3)Nothing in sub-paragraph (1) enables regulations to be
5made authorising the examination of the interior of part of
a vessel if that part is used as a dwelling.”

14(1)Schedule 5 (sampling) is amended as follows.

(2)In paragraph 1—

(a)in sub-paragraph (a)—

(i)10for “motor vehicle” substitute “vehicle or a vessel”;

(ii)after “the vehicle” insert “or the vessel”;

(b)in sub-paragraph (b) for “motor vehicle” substitute “vehicle or a
vessel”.

(3)In paragraph 2(3) after “vehicle” insert “or the vessel”.

(4)15In paragraph 4 after sub-paragraph (6) insert—

(6A)In sub-paragraphs (5) and (6) “land” includes any floating
structure.”

(5)In paragraph 7 after “vehicle” insert “or a vessel”.

Other amendments

1520In Schedule 7A to VATA 1994, in Group 1, in Note 1(3) omit paragraph (b)
(and the “or” immediately before it).

16In Schedule 41 to FA 2008, in the table in paragraph 3(1) for the entry relating
to section 14F(2) of HODA 1979 substitute—

HODA 1979 section 14F(8)Rebated heavy oil, biodiesel or bioblend”.

1725In Schedule 9 to TCTA 2018, in paragraph 6 omit sub-paragraphs (3) and (4).

General

18Paragraphs 1 to 17 of this Schedule come into force on such day or days as
the Treasury may by regulations appoint.

19Different days may be appointed for different purposes or different areas.

2030The Treasury may by regulations make such transitional, transitory or
saving provision as they consider appropriate in connection with the
coming into force of any of those paragraphs (including provision
conferring functions on the Commissioners for Her Majesty’s Revenue and
Customs).

2135The Treasury may by regulations make such amendments of any enactment
as they consider appropriate in consequence of the coming into force of any
of paragraphs 1 to 17.

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22A statutory instrument containing regulations under paragraph 21 is subject
to annulment in pursuance of a resolution of the House of Commons.

23Any power to make regulations under this Schedule is exercisable by
statutory instrument.

Section 92

5Schedule 11 Carbon emissions tax

Introduction

1Part 3 of FA 2019 (carbon emissions tax) is amended in accordance with
paragraphs 2 to 8.

10Power to set emissions allowance

2(1)Section 73 (emissions allowance) is amended in accordance with this
paragraph.

(2)The existing text becomes subsection (1).

(3)After that subsection insert—

(2)15Regulations under this section—

(a)may have effect in relation to the reporting period during
which they are made, and

(b)may make provision by reference to data relating to times
before they are made.”

20Power to make further provision by regulations

3In section 70 (charge to carbon emission tax), at the end insert—

(4)The Treasury may by regulations provide that carbon emissions tax
is not charged in relation to regulated installations of a specified
description.”

4(1)25Section 75 (power to make further provision about carbon emissions tax) is
amended in accordance with this paragraph.

(2)In subsection (1)(d) (enforcement) after “tax” insert “(including provision for
the imposition of civil penalties for failure to comply with a requirement of
regulations under this Part)”.

(3)30In subsection (2)(d) (review and appeal), omit “of a regulator”.

(4)In subsection (3) (regulations), for paragraph (b) substitute—

(b)modify—

(i)the Monitoring and Reporting Regulation;

(ii)the Verification Regulation;

(iii)35subordinate legislation relating to the monitoring or
regulation of emissions.”

5In section 76 (consequential provision), in subsection (5), for the words from



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“amend” to the end substitute “modify—

(a)any enactment (whenever passed or made);

(b)the Monitoring and Reporting Regulation;

(c)the Verification Regulation.”

6(1)5Section 78 (regulations) is amended in accordance with this paragraph.

(2)In subsection (1)—

(a)in paragraph (a) (conferral of functions etc), after “discretions on”
insert “HMRC, the Secretary of State,”;

(b)in paragraph (b) (charges), after “regulations” insert “or in
10anticipation of the conferral of such a function”.

(3)For subsection (3) (procedure) substitute—

(3)A statutory instrument containing regulations under section 76(4)
that make provision amending or repealing any provision of an Act
of Parliament must be laid before the House of Commons after being
15made and, unless approved by that House before the end of the
period of 40 days beginning with the date on which the instrument
is made, ceases to have effect at the end of that period.”

(4)After subsection (5) insert—

(6)The fact that a statutory instrument ceases to have effect as a result
20of subsection (3) does not affect—

(a)anything previously done under the instrument, or

(b)the making of a new instrument.

(7)In calculating the period of 40 days mentioned in subsection (3), no
account is to be taken of any time—

(a)25during which Parliament is dissolved or prorogued, or

(b)during which the House of Commons is adjourned for more
than four days.”

Interpretation

7(1)Section 77 (interpretation) is amended in accordance with this paragraph.

(2)30In subsection (1)—

(a)after the definition of “installation” insert—

  • ““modify” includes amend, repeal or revoke;”;

(b)for the definition of “the Monitoring and Reporting Regulation”
substitute—

  • 35““the Monitoring and Reporting Regulation” means
    Commission Implementing Regulation (EU) 2018/
    2066 of 19 December 2018 on the monitoring and
    reporting of greenhouse gas emissions pursuant to
    Directive 2003/87/EC of the European Parliament
    40and of the Council and amending Commission
    Regulation (EU) No 601/2012 (as amended from time
    to time);”;

(c)in the definition of “reporting period” omit “(subject to section
79(4))”;

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(d)for the definition of “the Verification Regulation” substitute—

  • ““the Verification Regulation” means Commission
    Implementing Regulation (EU) No 2018/2067 of 19
    December 2018 on the verification of data and on the
    5accreditation of verifiers pursuant to Directive 2003/
    87/EC of the European Parliament and of the Council
    (as amended from time to time).”

(3)For subsection (4) substitute—

(4)For the purposes of this Part, the Monitoring and Reporting
10Regulation is to be treated for the purposes of section 3 of the
European Union (Withdrawal) Act 2018 as if it is fully in force
immediately before IP completion day (even if it is not).”

Commencement and transitional provision

8(1)Section 79 (commencement and transitional provision) is amended in
15accordance with this paragraph.

(2)For subsection (1) substitute—

(1)This Part comes into force—

(a)for the purposes of making regulations under section 70, 73,
75 or 76, on the day after the day on which paragraphs 1 to 8
20of Schedule 11 to FA 2020 come into force, and

(b)for all other purposes, on such day as the Commissioners
may by regulations appoint.”

(3)Omit subsections (3) to (5).

Penalty for failure to make payments on time

925In Schedule 56 to FA 2009 (penalty for failure to make payments on time), in
the Table in paragraph 1, after item 10A insert—

“10BCarbon emissions taxAmount payable
under section 70(3) of
FA 2019
The date determined
by or under
regulations under
30section 75 of FA 2019
as the date by which
the amount must be paid”

Commencement

10Paragraph 9 comes into force on such day as the Treasury may by
35regulations made by statutory instrument appoint.

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Section 97

Schedule 12 Joint and several liability of company directors etc

Introduction

1(1)This Schedule provides for an individual to be jointly and severally liable to
5the Commissioners for Her Majesty’s Revenue and Customs, in certain
circumstances involving insolvency or potential insolvency, for amounts
payable to the Commissioners by a company.

(2)Such liability arises where the individual is given a notice under—

(a)paragraph 2(1) (tax avoidance and tax evasion cases),

(b)10paragraph 3(1) (repeated insolvency and non-payment cases), or

(c)paragraph 5(1) (cases involving penalty for facilitating avoidance or
evasion).

A notice under paragraph 2(1), 3(1) or 5(1) is referred to in this Schedule as
a “joint liability notice”.

(3)15In this Schedule “company” has the same meaning as in the Corporation Tax
Acts (see section 1121 of CTA 2010), except that it also includes a limited
liability partnership.

(4)Paragraph 18 makes provision about the application of this Schedule in
relation to limited liability partnerships.

20Tax avoidance and tax evasion cases

2(1)An authorised HMRC officer may give a notice under this sub-paragraph to
an individual if it appears to the officer that conditions A to E are met.

(2)Condition A is that a company has—

(a)entered into tax-avoidance arrangements, or

(b)25engaged in tax-evasive conduct.

(3)Condition B is that—

(a)the company is subject to an insolvency procedure, or

(b)there is a serious possibility of the company becoming subject to an
insolvency procedure.

(4)30Condition C is that—

(a)the individual—

(i)was responsible (whether alone or with others) for the
company entering into the tax-avoidance arrangements or
engaging in the tax-evasive conduct, or

(ii)35received a benefit which, to the individual’s knowledge,
arose (wholly or partly) from those arrangements or that
conduct,

at a time when the individual was a director or shadow director of
the company or a participator in it, or

(b)40the individual took part in, assisted with or facilitated the tax-
avoidance arrangements or the tax-evasive conduct at a time when
the individual—

(i)was a director or shadow director of the company, or

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(ii)was concerned, whether directly or indirectly, or was taking
part, in the management of the company.

(5)For the purposes of sub-paragraph (4)(a)(ii)

(a)an individual is treated as knowing anything that the individual
5could reasonably be expected to know;

(b)an individual is treated as receiving anything that is received by a
person with whom the individual is connected (within the meaning
given by section 993 of ITA 2007).

(6)Condition D is that there is, or is likely to be, a tax liability referable to the
10tax-avoidance arrangements or to the tax-evasive conduct (“the relevant tax
liability”).

(7)Condition E is that there is a serious possibility that some or all of the
relevant tax liability will not be paid.

(8)A notice under sub-paragraph (1) must—

(a)15specify the company to which the notice relates;

(b)set out the reasons for which it appears to the officer that conditions
A to E are met;

(c)state the effect of the notice;

(d)offer the individual a review of the decision to give the notice, and
20explain the effect of paragraph 11 (right of review);

(e)explain the effect of paragraph 13 (right of appeal).

(9)It must also—

(a)specify the amount of the relevant tax liability, if the existence and
amount of that liability have been established;

(b)25if not, indicate that the amount will be specified in a further notice.

(10)Once the existence and amount of the relevant tax liability have been
established in a case to which sub-paragraph (9)(b) applies, an authorised
HMRC officer must give a further notice specifying that amount.

(11)A notice under sub-paragraph (10) must—

(a)30be given to the individual to whom the notice under sub-paragraph
(1) was given;

(b)offer the individual a review of the decision to give the notice, and
explain the effect of paragraph 11 (right of review);

(c)explain the effect of paragraph 13 (right of appeal).

(12)35An individual who is given a notice under sub-paragraph (1) is jointly and
severally liable with the company (and with any other individual who is
given such a notice) for the relevant tax liability.

This is subject to paragraph 9 (interaction with penalties).

(13)The amount of the individual’s liability under sub-paragraph (12) is taken to
40be the amount specified under sub-paragraph (9)(a) or (10).

For provision under which the amount so specified may be varied, see—

(a)paragraph 10 (modification etc),

(b)paragraphs 11 and 12 (review), and

(c)paragraphs 13 and 14 (appeal).

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Repeated insolvency and non-payment cases

3(1)An authorised HMRC officer may give a notice under this sub-paragraph to
an individual if it appears to the officer that conditions A to D are met.

(2)A notice under sub-paragraph (1) may not be issued after the end of the
5period of two years beginning with the day on which HMRC first became
aware of facts sufficient for them reasonably to conclude that conditions A
to D are met.

(3)Condition A is that there are at least two companies (“the old companies”)
in the case of each of which—

(a)10the individual had a relevant connection with the company at any
time during the period of five years ending with the day on which
the notice is given (“the five-year period”),

(b)the company became subject to an insolvency procedure during the
five-year period, and

(c)15at the time when the company became subject to that procedure—

(i)the company had a tax liability, or

(ii)the company had failed to submit a relevant return or other
document, or to make a relevant declaration or application,
that it was required to submit or make, or

(iii)20the company had submitted a relevant return or other
document, or had made a relevant declaration or application,
but an act or omission on the part of the company had
prevented HMRC from dealing with it.

In sub-paragraphs (ii) and (iii) “relevant” means relevant to the
25question whether the company had a tax liability or how much its tax
liability was.

(4)Condition B is that another company (“the new company”) is or has been
carrying on a trade or activity that is the same as, or is similar to, a trade or
activity previously carried on by—

(a)30each of the old companies (if there are two of them), or

(b)any two of the old companies (if there are more than two).

(5)Condition C is that the individual has had a relevant connection with the
new company at any time during the five-year period.

(6)Condition D is that at the time when the notice is given—

(a)35at least one of the old companies referred to in sub-paragraph (4)(a)
or (b) has a tax liability, and

(b)the total amount of the tax liabilities of those companies—

(i)is more than £10,000, and

(ii)is more than 50% of the total amount of those companies’
40liabilities to their unsecured creditors.

(7)An individual who is given a notice under sub-paragraph (1) is jointly and
severally liable with the new company (and with any other individual who
is given such a notice)—

(a)for any tax liability that the new company has on the day on which
45the notice is given, and

(b)for any tax liability of the new company that arises—

(i)during the period of five years beginning with that day, and

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(ii)while the notice continues to have effect.

(8)If an old company referred to in sub-paragraph (4)(a) or (b) has a tax liability
on the day on which an individual is given a notice under sub-paragraph (1),
the individual is also jointly and severally liable with that company (and
5with any other individual who is given such a notice) for that liability.

(9)Sub-paragraphs (7) and (8) are subject to paragraph 9 (interaction with
penalties).

(10)For the purposes of this paragraph—

(a)an individual has a “relevant connection” with one of the old
10companies if the individual—

(i)is a director or shadow director of the company, or

(ii)is a participator in the company;

(b)an individual has a “relevant connection” with the new company if
the individual—

(i)15is a director or shadow director of the company,

(ii)is a participator in the company, or

(iii)is concerned, whether directly or indirectly, or takes part, in
the management of the company.

(11)A notice under sub-paragraph (1) must—

(a)20set out the reasons for which it appears to the officer giving the notice
that conditions A to D are met;

(b)state the effect of the notice;

(c)specify any amounts for which the individual is liable under sub-
paragraph (7)(a) or (8);

(d)25offer the individual a review of the decision to give the notice, and
explain the effect of paragraph 11 (right of review);

(e)explain the effect of paragraph 13 (right of appeal).

(12)The amount of the individual’s liability under sub-paragraph (7)(a) or (8) is
taken to be the amount specified under sub-paragraph (11)(c).

30For provision under which the amount so specified may be varied, see—

(a)paragraph 10 (modification etc),

(b)paragraphs 11 and 12 (review), and

(c)paragraphs 13 and 14 (appeal).

4(1)The Treasury may by regulations made by statutory instrument—

(a)35amend paragraph 3(6)(b)(i) by substituting a different amount for
the one that is for the time being specified there;

(b)amend paragraph 3(6)(b)(ii) by substituting a different percentage
for the one that is for the time being specified there.

(2)A statutory instrument containing regulations under this paragraph—

(a)40is subject to annulment in pursuance of a resolution of the House of
Commons, if the regulations increase the specified amount by no
more than is necessary to reflect changes in the value of money;

(b)otherwise, may not be made unless a draft of the instrument has been
laid before and approved by a resolution of the House of Commons.

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Cases involving penalty for facilitating avoidance or evasion

5(1)An authorised HMRC officer may give a notice under this sub-paragraph to
an individual if it appears to the officer that conditions A to D are met.

(2)Condition A is that—

(a)5a penalty under any of the specified provisions (see sub-paragraph
(6)) has been imposed on a company by HMRC, or

(b)proceedings have been commenced before the First-tier Tribunal for
a penalty under any of those provisions to be imposed on a company.

(3)Condition B is that—

(a)10the company is subject to an insolvency procedure, or

(b)there is a serious possibility of the company becoming subject to an
insolvency procedure.

(4)Condition C is that the individual was a director or shadow director of the
company, or a participator in it, at the time of any act or omission in respect
15of which—

(a)the penalty was imposed, or

(b)the proceedings for the penalty were commenced.

(5)Condition D is that there is a serious possibility that some or all of the
penalty will not be paid.

(6)20The specified provisions are—

(a)section 98C(1) of the TMA 1970 (penalties for breach of certain
obligations relating to disclosure of tax avoidance schemes by
promoters etc of schemes);

(b)paragraphs 2 and 3 of Schedule 35 to FA 2014 (promoters of tax
25avoidance schemes: penalties);

(c)paragraph 1 of Schedule 20 to FA 2016 (penalties for enablers of
offshore tax evasion or non-compliance);

(d)Part 1 of Schedule 16 to F(No.2)A 2017 (penalties for enablers of
defeated tax avoidance);

(e)30Part 2 of Schedule 17 to that Act (penalties for breach of certain
obligations relating to disclosure of tax avoidance schemes by
promoters etc of schemes).

(7)A notice under sub-paragraph (1) must—

(a)specify the company to which the notice relates;

(b)35set out the reasons for which it appears to the officer that conditions
A to D are met;

(c)state the effect of the notice;

(d)offer the individual a review of the decision to give the notice, and
explain the effect of paragraph 11 (right of review);

(e)40explain the effect of paragraph 13 (right of appeal).

(8)It must also—

(a)specify the amount of the penalty, if sub-paragraph (2)(a) applies;

(b)if sub-paragraph (2)(b) applies, indicate that the amount will be
specified in a further notice.