Savings (Government Contributions) Bill (HL Bill 85)

Savings (Government Contributions) BillPage 10

(c) the form or manner in which a return is to be submitted;

(d) the period to which a return must relate;

(e) the period within which a return must be made;

(f) enquiries into, and amendments of, a submitted return.

(3) 5The provision that may be made under sub-paragraph (1)(e) includes (in
particular) provision applying or incorporating, with or without
modifications, any enactment relating to the payment, collection or
management of a tax.

(4) In this paragraph “withdrawal charge” means an amount payable under
10paragraph 8.

(5) Treasury regulations may authorise HMRC to specify any of the matters
mentioned in sub-paragraph (2)(a) to (d).

Information notice may require information related to withdrawals

10 (1) This paragraph applies if there is a time when any investments held under a
15Lifetime ISA are attributable, directly or indirectly, to an amount paid by
way of bonus for any qualifying additions.

(2) An officer of Revenue and Customs may by notice require a relevant
person—

(a) to provide the officer with any information, or

(b) 20to produce a document to the officer,

if the officer reasonably requires the information or document in connection
with establishing whether there have been any withdrawals from the
Lifetime ISA and, if so, the details of any such withdrawals.

(3) Each of the following is a “relevant person” for the purposes of sub-
25paragraph (2)—

(a) the person (if any) who is the plan manager of the Lifetime ISA at the
time mentioned in sub-paragraph (1),

(b) any person who is the plan manager of the Lifetime ISA at any later
time,

(c) 30the investor, and

(d) any other person who appears to an officer of Revenue and Customs
to be a person who may have received the whole or part of a
withdrawal from the Lifetime ISA.

(4) Paragraphs 6(2), 7, 8, 18 to 20, 23 to 27, 42 and 43 of Schedule 36 to the
35Finance Act 2008 (information notices etc) apply in relation to notices under
sub-paragraph (2) as they apply in relation to notices under paragraph 1 of
that Schedule (see the definition of “information notice” in paragraph 6(1) of
that Schedule).

(5) Where a notice under sub-paragraph (2) is given to a person other than the
40plan manager of the Lifetime ISA at the time the notice is given, an officer of
Revenue and Customs must give a copy of the notice to that plan manager.

(6) A person who is given a notice under sub-paragraph (2) may appeal against
the notice or any requirement in the notice.

(7) Paragraph 32 of Schedule 36 to the Finance Act 2008 (procedure for appeals
45against information notices) applies for the purposes of an appeal under

Savings (Government Contributions) BillPage 11

sub-paragraph (6) as it applies for the purposes of an appeal under Part 5 of
that Schedule, except that a reference to an information notice has effect as a
reference to a notice under sub-paragraph (2).

Meaning of “investor” and “withdrawal”

11 5Treasury regulations may make provision about—

(a) who, for purposes of this Schedule, is (or is not) “the investor” in
relation to a Lifetime ISA;

(b) what, for purposes of this Schedule, counts (or does not count) as “a
withdrawal” in relation to a Lifetime ISA.

10Part 4 Enforcement of information requirements

Penalties for inaccuracies in information provided in response to requirements

12 (1) This paragraph applies where—

(a) in complying with a notice under paragraph 6(2) or 10(2), or with a
15requirement imposed under paragraph 9(1)(a), a person provides
inaccurate information or produces a document that contains an
inaccuracy,

(b) the inaccuracy is material, and

(c) condition A, B or C is met.

(2) 20Condition A is that the inaccuracy is careless or deliberate.

(3) An inaccuracy is careless if it is due to a failure by the person to take
reasonable care.

(4) Condition B is that the person knows of the inaccuracy at the time the
information is provided, or the document is produced, but does not inform
25an officer of Revenue and Customs at that time.

(5) Condition C is that the person—

(a) discovers the inaccuracy some time later, and

(b) fails to take reasonable steps to inform an officer of Revenue and
Customs.

(6) 30The person is liable to a penalty not exceeding the amount for the time being
specified in paragraph 40A(5) of Schedule 36 to the Finance Act 2008
(penalties for inaccurate information and documents).

(7) Where the information or document contains more than one material
inaccuracy, a penalty is payable for each inaccuracy.

(8) 35Paragraphs 46 to 49 and 52 of Schedule 36 to the Finance Act 2008 (penalties:
assessment, appeals and enforcement) apply in relation to a penalty under
this paragraph as they apply in relation to a penalty under paragraph 40A of
that Schedule.

Power to inspect documents relating to claims

13 (1) 40This paragraph applies where a claim is made for a bonus for any qualifying
additions.

Savings (Government Contributions) BillPage 12

(2) An officer of Revenue and Customs may—

(a) enter any business premises of a relevant plan manager, and

(b) inspect documents that are on the premises,

if the officer reasonably requires to inspect the documents in connection
5with the claim.

(3) A person is a “relevant plan manager” for the purposes of this paragraph if
the person—

(a) is the plan manager of any Lifetime ISA to which any of the
qualifying additions was made,

(b) 10was the plan manager of a Lifetime ISA at or after the time any of the
qualifying additions was made to that Lifetime ISA, or

(c) is the plan manager of the Lifetime ISA to which the bonus would be
or has been paid.

(4) See also paragraph 15.

15Power to inspect documents relating to withdrawals

14 (1) This paragraph applies if there is a time when any investments held under a
Lifetime ISA are attributable, directly or indirectly, to an amount paid by
way of bonus for any qualifying additions.

(2) An officer of Revenue and Customs may—

(a) 20enter any business premises of a relevant person, and

(b) inspect documents that are on the premises,

if the officer reasonably requires to inspect the documents in connection
with establishing whether there have been any withdrawals from the
Lifetime ISA and, if so, the details of any such withdrawals.

(3) 25Each of the following is a “relevant person” for the purposes of sub-
paragraph (2)—

(a) the person (if any) who is the plan manager of the Lifetime ISA at the
time mentioned in sub-paragraph (1),

(b) any person who is the plan manager of the Lifetime ISA at any later
30time, and

(c) any other person who appears to an officer of Revenue and Customs
to be a person who may have received the whole or part of a
withdrawal from the Lifetime ISA.

(4) See also paragraph 15.

35Supplementary provisions about inspections

15 (1) The powers under paragraph 13(2) or 14(2)—

(a) do not include power to enter any part of the premises that is used
solely as a dwelling, but

(b) do include power to obtain and record information (whether
40electronically or otherwise) relating to the documents that have been
inspected.

(2) In paragraphs 13(2) and 14(2) “business premises”, in relation to a person,
means premises (or any part of premises) that an officer of Revenue and
Customs has reason to believe are (or is) used in connection with the
45carrying on of a business by or on behalf of the person.

Savings (Government Contributions) BillPage 13

(3) Paragraph 12 of Schedule 36 to the Finance Act 2008 (timing of inspections)
applies in relation an inspection under paragraph 13(2) or 14(2) as it applies
in relation to an inspection under paragraph 10 of that Schedule.

(4) An officer of Revenue and Customs may not inspect a document under
5paragraph 13 or 14 if or to the extent that, by virtue of a provision of Part 4
of Schedule 36 to the Finance Act 2008 (restrictions on powers) applied by
paragraph 6(3) or 10(4), a notice under paragraph 6(2) or 10(2) given at the
time of the inspection to the occupier of the premises could not require the
occupier to produce the document.

(5) 10An officer of Revenue and Customs may ask the tribunal to approve an
inspection under paragraph 13(2) or 14(2).

(6) Paragraph 13(1A), (2) and (3) of Schedule 36 to the Finance Act 2008
(approval of tribunal for inspections) applies in relation to an application
under sub-paragraph (5) as it applies in relation to an application under
15paragraph 13 of that Schedule relating to an inspection under paragraph 10
of that Schedule.

(7) In this paragraph “the tribunal” means the First-tier Tribunal or, where
determined by or under Tribunal Procedure Rules, the Upper Tribunal.

Penalties for non-compliance with information requirements

16 (1) 20Sub-paragraph (2) applies to a person who—

(a) fails to make a claim in accordance with a requirement imposed on
the person under paragraph 3(1)(b),

(b) fails to comply with a notice under paragraph 6(2) or 10(2) given to
the person,

(c) 25fails to comply with a requirement imposed on the person under
paragraph 9(1)(a), or

(d) deliberately obstructs an officer of Revenue and Customs in the
course of an inspection under paragraph 13 or 14 that has been
approved by the tribunal.

(2) 30The person is liable to a penalty of the amount for the time being specified
in paragraph 39(2) of Schedule 36 to the Finance Act 2008.

(3) If the failure or obstruction mentioned in sub-paragraph (1) continues after
the date on which a penalty is imposed under sub-paragraph (2) in respect
of the failure or obstruction, the person is liable to a further penalty or
35penalties not exceeding the amount for the time being specified in paragraph
40(2) of that Schedule for each subsequent day on which the failure or
obstruction continues.

(4) The reference in sub-paragraph (1)(b) to a person who fails to comply with
a notice under paragraph 6(2) or 10(2) includes a person who conceals,
40destroys or otherwise disposes of, or arranges for the concealment,
destruction or disposal of, a document in breach of paragraph 42 or 43 of
Schedule 36 to the Finance Act 2008 as applied by (as the case may be)
paragraph 6(3) or 10(4).

(5) Paragraphs 44 to 49 and 52 of Schedule 36 to the Finance Act 2008 (penalties:
45liability, amount, assessment, appeals and enforcement) apply in relation to
a penalty under sub-paragraph (2) or (3) as they apply in relation to a
penalty under paragraph 39 or 40 of that Schedule, except that the reference

Savings (Government Contributions) BillPage 14

in paragraph 46(3) to an information notice has effect as a reference to a
notice under paragraph 6(2) or 10(2) of this Schedule.

(6) In sub-paragraph (1)(d) “the tribunal” means the First-tier Tribunal or,
where determined by or under Tribunal Procedure Rules, the Upper
5Tribunal.

Part 5 Further provision about penalties

Penalties for dishonesty

17 (1) Sub-paragraph (2) applies to a person who dishonestly does anything, or
10dishonestly omits to do anything, either—

(a) for the purpose of obtaining an amount by way of bonus to which the
person is not entitled, or

(b) for the purpose of assisting another person to obtain an amount by
way of bonus to which that other person is not entitled.

(2) 15The person is liable to a penalty not exceeding the greater of—

(a) £3,000, and

(b) the amount mentioned in paragraph (a) or (b), as the case may be, of
sub-paragraph (1).

(3) Sub-paragraph (4) applies to a person who dishonestly does anything, or
20dishonestly omits to do anything, for the purpose of—

(a) securing that a withdrawal from a Lifetime ISA, other than a
withdrawal specified under paragraph 7(4), is made without
deduction of any amount that under paragraph 8(3)(b) should be
deducted from the withdrawal, or

(b) 25concealing that an amount has become payable under paragraph 8.

(4) The person is liable to a penalty of an amount not exceeding the greater of—

(a) £3,000, and

(b) the amount that should have been deducted or (as the case may be)
the amount concealed.

(5) 30Treasury regulations may substitute a different amount for the amount for
the time being specified in sub-paragraph (2)(a) or (4)(a).

(6) Paragraphs 46 to 49 and 52 of Schedule 36 to the Finance Act 2008 (penalties:
assessment, appeals and enforcement) apply in relation to a penalty under
this paragraph as they apply in relation to a penalty under paragraph 40A of
35that Schedule, except that the reference in paragraph 46(4) to the inaccuracy
has effect as a reference to the dishonest act or omission.

Part 6 Information sharing

Information sharing between HMRC and others

18 (1) 40Sub-paragraph (2) applies to information which—

(a) is held as mentioned in section 18(1) of the Commissioners for
Revenue and Customs Act 2005 (confidentiality),

Savings (Government Contributions) BillPage 15

(b) relates to withdrawals from a Lifetime ISA, and

(c) is relevant to whether an individual is eligible for a bonus under the
Help to Buy: ISA Scheme.

(2) Information to which this sub-paragraph applies may be disclosed to the
5Administrator for use for the purpose of establishing whether or not an
individual is eligible for a bonus under the Help to Buy: ISA Scheme.

(3) In this paragraph—

  • “the Administrator” means the person who for the time being is the
    Administrator under the Scheme Rules (as from time to time
    10amended or supplemented) of the Help to Buy: ISA Scheme, and

  • “the Help to Buy: ISA Scheme” means the scheme of that name—

    (a)

    announced by the Treasury in March 2015,

    (b)

    launched on 1 December 2015,

    (c)

    for which Scheme Rules were published on that date by the
    15Treasury, and

    (d)

    which is governed by those Scheme Rules (as from time to
    time amended or supplemented),

and paragraph 1(1) (meaning of “bonus”) does not apply for the purposes of
this paragraph.

(4) 20Information disclosed in reliance on sub-paragraph (2) may not be further
disclosed to any other person without the authority of HMRC (which may
be general or specific).

(5) If revenue and customs information relating to a person is disclosed in
contravention of sub-paragraph (4) and the identity of the person—

(a) 25is specified in the disclosure, or

(b) can be deduced from it,

section 19 of the Commissioners for Revenue and Customs Act 2005
(wrongful disclosure) applies in relation to the disclosure as it applies in
relation to a disclosure of such information in contravention of section 20(9)
30of that Act.

(6) In sub-paragraph (5) “revenue and customs information relating to a
person” has the meaning given by section 19(2) of the Commissioners for
Revenue and Customs Act 2005.

(7) A person who holds any information may disclose that information to
35HMRC or an officer of Revenue and Customs if the disclosure is made for
the purposes of the exercise of any of the functions of HMRC, or an officer
of Revenue and Customs, under section 1 and this Schedule.

(8) This paragraph does not limit the circumstances in which information may
be disclosed apart from this paragraph.

Savings (Government Contributions) BillPage 16

Section 2

SCHEDULE 2 Help-to-Save accounts: further provision

Part 1 Introductory

5Interpretation: meaning of “bonus”

1 In this Schedule “bonus” means a government bonus under section 2.

HMRC responsibility for administration of bonuses

2 HMRC are responsible for the payment and management of bonuses,
subject to section 2.

10Interpretation: meaning of “Help-to-Save account”

3 (1) For the purposes of this Act, an account is a “Help-to-Save account” if—

(a) it is an account for money savings,

(b) a single individual is beneficially entitled to all money in the account,

(c) the account is held—

(i) 15by the individual alone, or

(ii) in some other way authorised by Treasury regulations,

(d) the individual is an eligible person (see paragraph 4) on the
eligibility reference dates,

(e) the account is provided by an authorised account provider (see
20paragraph 9),

(f) the requirements imposed by and under paragraph 10 are met in
relation to the account,

(g) the account has been opened in accordance with the requirements
imposed by and under paragraph 11, and

(h) 25the account has not ceased to be a Help-to-Save account.

(2) An account which is a Help-to-Save account ceases to be a Help-to-Save
account—

(a) at the end of the maturity period for the account, or

(b) if the requirements imposed by and under paragraph 10 cease to be
30met in relation to the account before the end of that period.

(3) Treasury regulations may make provision for an account to be treated as a
Help-to-Save account.

(4) In this Schedule “the eligibility reference dates”, in relation to an account,
means the following dates—

(a) 35the date on which the application for the account is made, and

(b) the date on which the application is accepted.

(5) For the purposes of this Schedule, a Help-to-Save account is opened for an
individual if the account is opened and the individual is the person
beneficially entitled to all money in the account.

Savings (Government Contributions) BillPage 17

(6) In this Schedule “the maturity period”, in relation to a Help-to-Save account,
means—

(a) the period of 48 calendar months, or such other period as may be
specified in Treasury regulations, beginning with the calendar
5month in which the account is opened, or

(b) if the individual for whom the account is opened becomes terminally
ill or dies before the end of the period given by paragraph (a), the
period—

(i) beginning with the calendar month in which the account is
10opened, and

(ii) ending with the individual’s becoming terminally ill or (as
the case may be) the individual’s death.

(7) Treasury regulations may make provision for the purposes of sub-
paragraph (6)(b) about when an individual is to be considered to become
15terminally ill.

Part 2 Eligibility

“Eligible person”

4 (1) For the purposes of this Schedule, an individual is an “eligible person” on a
20particular day if—

(a) the individual meets one of the benefit entitlement conditions (see
paragraphs 5, 6 and 8(1)(a)) on that day, and

(b) the individual meets the UK connection condition (see paragraph 7)
on that day.

(2) 25Treasury regulations may make provision for an individual to be treated as
an eligible person for purposes of this Schedule.

Benefit entitlement conditions: working tax credit

5 (1) The first benefit entitlement condition is that—

(a) specified conditions relating to working tax credit are met in relation
30to the individual, and

(b) any other specified conditions are met in relation to the individual.

(2) In sub-paragraph (1) “specified” means specified in Treasury regulations.

Benefit entitlement conditions: universal credit

6 (1) The second benefit entitlement condition is that—

(a) 35specified conditions relating to universal credit are met in relation to
the individual, and

(b) any other specified conditions are met in relation to the individual.

(2) Conditions specified under sub-paragraph (1)(b) may (in particular) be
framed by reference to the single hourly rate for the time being prescribed
40under section 1(3) of the National Minimum Wage Age 1998.

(3) In sub-paragraph (1) “specified” means specified in Treasury regulations.

Savings (Government Contributions) BillPage 18

UK connection condition

7 (1) The individual meets the “UK connection condition” if the individual is in
the United Kingdom.

(2) Treasury regulations may—

(a) 5specify circumstances in which a person is to be treated as being, or
not being, in the United Kingdom;

(b) specify circumstances in which temporary absence from the United
Kingdom is disregarded;

(c) modify the application of this Schedule, or regulations under it, in
10relation to persons of a description specified in the regulations who
are treated as being in the United Kingdom for the purposes of this
Schedule.

Power to make further provision about eligibility

8 (1) Treasury regulations may—

(a) 15specify benefit entitlement conditions other than those for the time
being specified in paragraphs 5 and 6;

(b) make provision about deciding whether an individual is an eligible
person.

(2) Regulations under sub-paragraph (1)(a) may (in particular) frame a benefit
20entitlement condition by reference to having a notice of eligibility issued by
HMRC and, in that event, the regulations may make provision—

(a) requiring HMRC to issue such notices;

(b) about the effect of such notices;

(c) about the duration, expiry or withdrawal of such notices;

(d) 25otherwise in connection with such notices.

Part 3 Account providers and features of accounts

Authorised account providers

9 (1) Help-to-Save accounts may be provided only by an authorised account
30provider.

(2) In this Act “authorised account provider” means—

(a) a person who has been approved, for the purposes of the provision
of Help-to-Save accounts, by HMRC;

(b) a person or body with whom HMRC or the Treasury have entered
35into arrangements for the provision of Help-to-Save accounts;

(c) if the Treasury so determine, the Director of Savings.

(3) Treasury regulations may make provision about approvals under sub-
paragraph (2)(a), including (in particular) provision as to—

(a) conditions which must be satisfied before approval may be given;

(b) 40conditions which must be complied with by an approved person;

(c) the withdrawal of approval to provide Help-to-Save accounts, or
Help-to-Save accounts of a particular description.

Savings (Government Contributions) BillPage 19

(4) In sub-paragraph (5) “retiring provider” means a person or body that—

(a) expects, or wishes, to cease to be an authorised account provider, or

(b) has ceased to be an authorised account provider,

whether the cessation is total or partial, and whether or not it is on account
5of withdrawal of approval.

(5) Treasury regulations may make provision requiring a retiring provider to
provide—

(a) specified information to HMRC or an officer of Revenue and
Customs;

(b) 10specified information to account holders of a specified description.

Required features of Help-to-Save accounts

10 (1) An account is not a Help-to-Save account unless—

(a) under its terms, the amount that may be added to the account each
calendar month (excluding interest or other sums paid by the
15account provider under the terms of the account and excluding any
bonus) does not exceed the maximum monthly amount, and

(b) any requirements imposed by Treasury regulations are met in
relation to the account.

(2) In sub-paragraph (1)(a) “the maximum monthly amount” means £50, or
20such other amount (which may be nil) as may be specified in Treasury
regulations.

(3) Treasury regulations may specify whether the requirement imposed by sub-
paragraph (1)(a) relates to—

(a) the gross amount added in a calendar month (ignoring withdrawals
25and the mentioned exclusions), or

(b) the net amount added in a calendar month after taking account of
withdrawals (but ignoring those exclusions).

(4) Treasury regulations made for the purposes of sub-paragraph (1)(b) may
include provision about deciding whether requirements imposed by the
30regulations are met.

Opening a Help-to-Save account

11 (1) A Help-to-Save account may be opened for an individual if—

(a) an application to open the account is made in accordance with
regulations under sub-paragraph (2),

(b) 35the individual is an eligible person on the eligibility reference dates,
and

(c) no Help-to-Save account has previously been opened for the
individual.

(2) Treasury regulations may make provision about applications to open a
40Help-to-Save account, including (in particular)—

(a) provision about the form and manner in which applications may be
made;

(b) provision specifying, or enabling HMRC to specify, information
which applicants must provide and the persons to whom it must be
45provided;