Finance Bill (HL Bill 123)

Part 4 continued    

(3)For the purposes of sub-paragraph (1)(b) a deduction is “relevant”
if—

(a)the debtor is required, by virtue of an enactment, to make the
deduction from a payment made to another person and to
5pay an amount to the Commissioners on account of the
deduction,

(b)the payment to the Commissioners is credited against any
liabilities of the other person, and

(c)the deduction is of a kind specified in regulations under
10section 99(3) of the Finance Act 2020.

(4)In this paragraph “the Commissioners” means the Commissioners
for Her Majesty’s Revenue and Customs.”

(5)In Article 346 of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405
(N.I. 19)) (preferential debts)—

(a)15in paragraph (1) after “other deposits” insert “; certain HMRC debts”;

(b)in paragraph (1B) for “or 20” substitute “, 20 or 22”.

(6)In Schedule 4 to that Order (preferential debts) after paragraph 21 insert—

“Category 9: Certain HMRC debts

22 (1) Any amount owed at the relevant date by the debtor to the
20Commissioners in respect of—

(a)value added tax, or

(b)a relevant deduction.

(2)In sub-paragraph (1), the reference to “any amount” is subject to any
regulations under section 99(1) of the Finance Act 2020.

(3)25For the purposes of sub-paragraph (1)(b) a deduction is “relevant”
if—

(a)the debtor is required, by virtue of an enactment, to make the
deduction from a payment made to another person and to
pay an amount to the Commissioners on account of the
30deduction,

(b)the payment to the Commissioners is credited against any
liabilities of the other person, and

(c)the deduction is of a kind specified in regulations under
section 99(3) of the Finance Act 2020.

(4)35In this paragraph “the Commissioners” means the Commissioners
for Her Majesty’s Revenue and Customs.”

(7)The amendments made by this section do not apply in relation to any case
where the relevant date is before 1 December 2020.

99 HMRC debts: regulations

(1)40The Treasury may by regulations provide that only the following amounts are
secondary preferential debts (or, in relation to Scotland, secondary preferred
debts) for the purpose of a relevant provision—

(a)in the case of amounts owed in respect of value added tax, amounts
referable to such period as is specified in the regulations;

(b)in the case of amounts owed in respect of a relevant deduction,
amounts owed in respect of a deduction from a payment made during
such period as is specified in the regulations.

(2)In subsection (1) “relevant provision” means—

(a)5paragraph 15D(1) of Schedule 6 to the Insolvency Act 1986 (preferential
debts: certain HMRC debts);

(b)paragraph 8A(1) of Schedule 3 to the Bankruptcy (Scotland) Act 2016
(asp 21) (list of preferred debts: certain HMRC debts);

(c)paragraph 22(1) of Schedule 4 to the Insolvency (Northern Ireland)
10Order 1989 (S.I. 1989/2405 (N.I. 19)) (preferential debts: certain HMRC
debts).

(3)The Treasury may by regulations specify kinds of deductions for the purposes
of—

(a)paragraph 15D(3)(c) of Schedule 6 to the Insolvency Act 1986;

(b)15paragraph 8A(3)(c) of Schedule 3 to the Bankruptcy (Scotland) Act 2016
(asp 21);

(c)paragraph 22(3)(c) of Schedule 4 to the Insolvency (Northern Ireland)
Order 1989 (S.I. 1989/2405 (N.I. 19)).

(4)Regulations under this section may contain transitional or supplementary
20provision.

(5)Regulations under this section—

(a)are to be made by statutory instrument;

(b)are subject to annulment in pursuance of a resolution of the House of
Commons.

25Joint and several liability

100 Joint and several liability of company directors etc

(1)Schedule 13 makes provision for individuals to be jointly and severally liable,
in certain circumstances involving insolvency or potential insolvency, for
amounts payable to the Commissioners for Her Majesty’s Revenue and
30Customs by bodies corporate or unincorporate.

(2)A reference in Schedule 13 to a tax liability of a company does not include—

(a)any tax liability that relates to a period ending before the day on which
this Act is passed;

(b)any tax liability (other than one that relates to a period) arising from an
35event or default occurring before that day.

(3)For the purposes of subsection (2), a tax liability relates to a period if—

(a)the liability arises in respect of a particular tax year, accounting period
or other period, or

(b)the amount of the liability is calculated by reference to a particular
40period.

(4)A reference in paragraph 5 of Schedule 13 to a penalty does not include any
penalty in respect of which the determination to impose the penalty, or (as the
case may be) the commencement of proceedings before the tribunal for the
penalty to be imposed, occurs before the day on which this Act is passed.

General anti-abuse rule

101 Amendments relating to the operation of the GAAR

Schedule 14 makes—

(a)provision about the procedural requirements and time limits for the
5making of adjustments by virtue of section 209 of FA 2013, and

(b)provision amending paragraph 5 of Schedule 43C to that Act.

Compensation schemes etc

102 Tax relief for scheme payments etc

Schedule 15 makes provision for tax relief in respect of—

(a)10payments made under or otherwise referable to the Windrush
Compensation Scheme,

(b)payments under the Troubles Permanent Disablement Payment
Scheme, and

(c)other compensation payments made by or on behalf of a government,
15public authority or local authority.

Administration

103 HMRC: exercise of officer functions

(1)Anything capable of being done by an officer of Revenue and Customs by
virtue of a function conferred by or under an enactment relating to taxation
20may be done by HMRC (whether by means involving the use of a computer or
otherwise).

(2)Accordingly, it follows that HMRC may (among other things)—

(a)give a notice under section 8, 8A or 12AA of TMA 1970 (notice to file
personal, trustee or partnership return);

(b)25amend a return under section 9ZB of that Act (correction of personal or
trustee return);

(c)make an assessment to tax in accordance with section 30A of that Act
(assessing procedure);

(d)make a determination under section 100 of that Act (determination of
30penalties);

(e)give a notice under paragraph 3 of Schedule 18 to FA 1998 (notice to file
company tax return);

(f)make a determination under paragraph 2 or 3 of Schedule 14 to FA 2003
(SDLT: determination of penalties).

(3)35Anything done by HMRC in accordance with subsection (1) has the same effect
as it would have if done by an officer of Revenue and Customs (or, where the
function is conferred on an officer of a particular kind, an officer of that kind).

(4)In this section—

• “HMRC” means Her Majesty’s Revenue and Customs;

• references to an officer of Revenue and Customs include an officer of a
  particular kind, such as an officer authorised for the purposes of an
  enactment.

(5)This section is treated as always having been in force.

(6)5However, this section does not apply in relation to anything mentioned in
subsection (1) done by HMRC if—

(a)before 11 March 2020, a court or tribunal determined that the relevant
act was of no effect because it was not done by an officer of Revenue
and Customs (or an officer of a particular kind), and

(b)10at the beginning of 11 March 2020, the order of the court or tribunal
giving effect to that determination had not been set aside or overturned
on appeal.

104 Returns relating to LLP not carrying on business etc with view to profit

(1)In TMA 1970 after section 12ABZA insert—

“12ABZAA 15 Returns relating to LLP not carrying on business etc with view
to profit

(1)This section applies where—

(a)a person delivers a purported partnership return (“the relevant
return”) in respect of a period (“the relevant period”),

(b)20the relevant return—

(i)is made on the basis that the activities of a limited
liability partnership (“the LLP”) are treated, under
section 863 of ITTOIA 2005 or section 1273 of CTA 2009,
as carried on in partnership by its members (“the
25purported partnership”), and

(ii)relates to the purported partnership, but

(c)the LLP does not carry on a business with a view to profit in the
relevant period (and, accordingly, its activities are not treated as
mentioned in paragraph (b)(i)).

(2)30For the purposes of the relevant enactments, treat the relevant return as
a partnership return (and, accordingly, anything done under a relevant
enactment in connection with the relevant return has the same effect as
it would have if done in connection with a partnership return in a
corresponding partnership case).

(3)35“Relevant enactment” means—

(a)any of the following—

(i)sections 12AC and 28B (enquiries into partnership
returns),

(ii)Part 4 of FA 2014 (follower notices and accelerated
40payment notices), and

(b)any enactment relating to, or applying for the purposes of, an
enactment within paragraph (a).

(4)In relation to the relevant return, the relevant enactments apply with
the necessary modifications, including in particular the following—

(a)45“partner” includes purported partner, and

(b)“partnership” includes the purported partnership.

(5)In this section—

• “business” includes trade or profession;

• “corresponding partnership case” means a corresponding case in
  which the limited liability partnership in question carries on a
  5business with a view to profit in the relevant period;

• “purported partner” means any person who was a member of the
  LLP in the relevant period;

• “purported partnership return” means anything that—

  (a)

  purports to be a partnership return, and

  (b)

  10is in a form, and is delivered in a way, that a partnership
  return could have been made and delivered in a
  corresponding partnership case.”

(2)The amendment made by subsection (1) is treated as always having been in
force.

(3)15However, that amendment does not apply in relation to a purported
partnership return if—

(a)before 11 March 2020, a court or tribunal determined, in proceedings to
which a limited liability partnership was a party, that the purported
partnership return was not a return under section 12AA of TMA 1970,
20and

(b)at the beginning of 11 March 2020, the order of the court or tribunal
giving effect to that determination had not been set aside or overturned
on appeal.

(4)In Part 1 of Schedule 14 to F(No.2)A 2017 (digital reporting and record-keeping
25for income tax etc: amendments of TMA 1970), after paragraph 10B insert—

“10BA (1) Section 12ABZAA (returns relating to LLP not carrying on business
etc with view to profit) is amended as follows.

(2)For subsection (2) substitute—

“(2)For the purposes of the relevant enactments—

(a)30where the relevant return purports to be a
section 12AA partnership return, treat it as a
section 12AA partnership return;

(b)where the relevant return purports to be a
Schedule A1 partnership return, treat it as a
35Schedule A1 partnership return,

(and, accordingly, anything done under a relevant
enactment in connection with the relevant return has the
same effect as it would have if done in connection with a
section 12AA or Schedule A1 partnership return (as the
40case may be) in a corresponding partnership case).”

(3)In subsection (5), in the definition of “purported partnership
return”—

(a)in paragraph (a), for “partnership return” substitute “section
12AA or Schedule A1 partnership return”;

(b)45in paragraph (b), for “partnership return” substitute “section
12AA or Schedule A1 partnership return (as the case may
be)”.”

(5)The reference in section 61(6) of F(No.2)A 2017 (commencement) to Schedule
14 to that Act is to be read as a reference to that Schedule as amended by
subsection (4) of this section.

105 Interest on unpaid tax in case of disaster etc of national significance

(1)5Section 135 of FA 2008 (interest on unpaid tax in case of disaster etc of national
significance) is amended as follows.

(2)In subsection (2), for the words from “arising” to the end substitute “that—

(a)arises under or by virtue of an enactment or a contract
settlement, and

(b)10is of a description (if any) specified in the order.”

(3)In subsection (4)—

(a)after “relief period” insert “, in relation to a deferred amount,”;

(b)in paragraph (b), after “revoked” insert “or amended so that it ceases to
have effect in relation to the deferred amount”.

(4)15In subsection (10)—

(a)at the end of paragraph (a), omit “and”;

(b)at the end of paragraph (b) insert “, and

(c)may specify different dates in relation to liabilities of
different descriptions.”

(5)20The amendments made by this section have effect from 20 March 2020.

Coronavirus

106 Taxation of coronavirus support payments

(1)Schedule 16 makes provision about the taxation of coronavirus support
payments.

(2)25In this section, and in that Schedule, “coronavirus support payment” means a
payment made (whether before or after the passing of this Act) under any of
the following schemes—

(a)the coronavirus job retention scheme;

(b)the self-employment income support scheme;

(c)30any other scheme that is the subject of a direction given under section
76 of the Coronavirus Act 2020 (functions of Her Majesty’s Revenue
and Customs in relation to coronavirus or coronavirus disease);

(d)the coronavirus statutory sick pay rebate scheme;

(e)a coronavirus business support grant scheme;

(f)35any scheme specified or described in regulations made under this
section by the Treasury.

(3)The Treasury may by regulations make provision about the application of
Schedule 16 to a scheme falling within subsection (2)(c) to (f) (including
provision modifying paragraph 8 of that Schedule so that it applies to
40payments made under a coronavirus business support grant scheme).

(4)Regulations under this section may make provision about coronavirus support
payments made before (as well as after) the making of the regulations.

(5)In this section, and in that Schedule—

• “coronavirus” and “coronavirus disease” have the meaning they have in
  the Coronavirus Act 2020 (see section 1 of that Act);

• “coronavirus business support grant scheme” means any scheme
  5(whether announced or operating before or after the passing of this
  Act), other than a scheme within subsection (2)(a) to (d), under which a
  public authority makes grants to businesses with the object of
  providing support to those businesses in connection with any effect or
  anticipated effect (direct or indirect) of coronavirus or coronavirus
  10disease;

• “the coronavirus job retention scheme” means the scheme (as it has effect
  from time to time) that is the subject of the direction given by the
  Treasury on 15 April 2020 under section 76 of the Coronavirus Act 2020;

• “the coronavirus statutory sick pay rebate scheme” means the scheme (as
  15it has effect from time to time) given effect to by the Statutory Sick Pay
  (Coronavirus) (Funding of Employers’ Liabilities) Regulations 2020
  (S.I. 2020/512);

• “employment-related scheme” means the coronavirus job retention
  scheme or the coronavirus statutory sick pay rebate scheme;

• 20“the self-employment income support scheme” means the scheme (as it
  has effect from time to time) that is the subject of the direction given by
  the Treasury on 30 April 2020 under section 76 of the Coronavirus Act
  2020.

(6)Examples of coronavirus business support grant schemes as at 24 June 2020
25include—

(a)the small business grant fund that is the subject of the guidance about
that scheme and the retail, hospitality and leisure grant fund published
by the Department for Business, Energy & Industrial Strategy on 1
April 2020;

(b)30the retail, hospitality and leisure grant fund that is the subject of that
guidance;

(c)the local authority discretionary grants fund that is the subject of the
guidance about that scheme published by the Department for Business,
Energy & Industrial Strategy on 13 May 2020;

(d)35the schemes corresponding to the small business grant fund, retail and
hospitality grant fund and local authority discretionary grants fund in
Scotland, Wales and Northern Ireland.

107 Enterprise management incentives: disqualifying events

(1)The modifications made by this section apply for the purposes of determining
40whether a disqualifying event occurs or is treated as occurring in relation to an
employee in accordance with section 535 of ITEPA 2003 (enterprise
management incentives: disqualifying events relating to employee).

(2)Paragraph 26 of Schedule 5 to ITEPA 2003 (requirement as to commitment of
working time) has effect as if, in sub-paragraph (3)—

(a)45the “or” at the end of paragraph (c) were omitted, and

(b)at the end of paragraph (d), there were inserted “, or

(e)not being required to work for reasons connected
with coronavirus disease (within the meaning given
by section 1(1) of the Coronavirus Act 2020).”

(3)Paragraph 27 of that Schedule (meaning of “working time”) has effect as if, in
sub-paragraph (1)(b), for “(d)” there were substituted “(e)”.

(4)Section 535 of ITEPA 2003 has effect as if, in the closing words of subsection (3),
for “(d)” there were substituted “(e)”.

(5)5The modifications made by this section have effect in relation to the period—

(a)beginning with 19 March 2020, and

(b)ending with 5 April 2021.

(6)The Treasury may by regulations made in the tax year 2020-21 amend
subsection (5)(b) by replacing “2021” with “2022”.

108 10Protected pension age of members re-employed as a result of coronavirus

(1)In FA 2004, in Schedule 36 (pension schemes etc), paragraph 22 (rights to take
benefit before normal minimum pension age) is amended as follows.

(2)In sub-paragraph (7F), at the end of paragraph (b) insert “, and

(c)that the member is or was employed as mentioned in sub-
15paragraph (7B)(a) where—

(i)the employment began at any time during the
coronavirus period, and

(ii)the only or main reason that the member was taken into
employment was to help the employer to respond to the
20public health, social, economic or other effects of
coronavirus.”

(3)After sub-paragraph (7J) insert—

“(7K)In sub-paragraph (7F)(c)—

• “coronavirus” has the same meaning as in the Coronavirus Act
  252020 (see section 1(1) of that Act);

• “the coronavirus period” means the period beginning with 1
  March 2020 and ending with 1 November 2020.

(7L)The Treasury may by regulations amend the definition of “the
coronavirus period” in sub-paragraph (7K) so as to replace the later
30of the dates specified in it with another date falling before 6 April
2021.

(7M)The power in sub-paragraph (7L) may be exercised on more than one
occasion.”

(4)The amendments made by this section are treated as having come into force on
351 March 2020.

109 Modifications of the statutory residence test in connection with coronavirus

(1)This section applies for the purposes of determining—

(a)whether an individual was or was not resident in the United Kingdom
for the tax year 2019-20 for the purposes of relevant tax, and

(b)40if an individual was not so resident in the United Kingdom for the tax
year 2019-20 (including as a result of this section), whether the
individual was or was not resident in the United Kingdom for the tax
year 2020-21 for the purposes of relevant tax.

“Relevant tax” has the meaning given by paragraph 1(4) of Schedule 45 to FA
2013 (statutory residence test).

(2)That Schedule is modified in accordance with subsections (3) to (13).

(3)Paragraph 8 (second automatic UK test: days at overseas homes) has effect as
5if after sub-paragraph (5) there were inserted—

“(5A)For the purposes of sub-paragraphs (1)(b) and (4), a day does not
count as a day when P is present at a home of P’s in the UK if it is a
day that would fall within the third case in paragraph 22(7) (if P were
present in the UK at the end of it).”

(4)10Paragraph 22 (key concepts: days spent) has effect as if—

(a)in sub-paragraph (2), for “two cases” there were substituted “three
cases”;

(b)after sub-paragraph (6) there were inserted—

“(7)The third case is where—

(a)15that day falls within the period beginning with 1
March 2020 and ending with 1 June 2020,

(b)on that day P is present in the UK for an applicable
reason related to coronavirus disease, and

(c)in the tax year in question, P is resident in a territory
20outside the UK (“the overseas territory”).

(8)The following are applicable reasons related to coronavirus
disease—

(a)that P is present in the UK as a medical or healthcare
professional for purposes connected with the
25detection, treatment or prevention of coronavirus
disease;

(b)that P is present in the UK for purposes connected
with the development or production of medicinal
products (including vaccines), devices, equipment or
30facilities related to the detection, treatment or
prevention of coronavirus disease.

(9)For the purposes of paragraph (7)(c), P is resident in an
overseas territory in the tax year in question if P is considered
for tax purposes to be a resident of that territory in
35accordance with the laws of that territory.

(10)The Treasury may by regulations made by statutory
instrument—

(a)amend sub-paragraph (7)(a) so as to replace the later
of the dates specified in it with another date falling
40before 6 April 2021;

(b)amend this paragraph so as to add one or more
applicable reasons related to coronavirus disease.

(11)The powers under sub-paragraph (10) may be exercised on
more than one occasion.

(12)45A statutory instrument containing regulations under sub-
paragraph (10) is subject to annulment in pursuance of a
resolution of the House of Commons.”

(5)Paragraph 23 (key concepts: days spent and the deeming rule) has effect as if
after sub-paragraph (5) there were inserted—

“(5A)For the purposes of sub-paragraph (3)(b) and (4), a day does not
count as a qualifying day if it is a day that would fall within the third
5case in paragraph 22(7) (if P were present in the UK at the end of it).”

(6)Paragraph 28(2) (rules for calculating the reference period) has effect as if—

(a)in paragraph (b) the “and” at the end were omitted;

(b)after paragraph (b) there were inserted—

“(ba)absences from work at times during the period
10specified in an emergency volunteering certificate
issued to P under Schedule 7 to the Coronavirus Act
2020 (emergency volunteering leave), and”;

(c)in paragraph (c), for “or (b)” there were substituted “, (b) or (ba)”.

(7)Paragraph 29 (significant breaks from UK or overseas work) has effect as if in
15sub-paragraphs (1)(b) and (2)(b), for “or parenting leave” there were
substituted “, parenting leave or emergency volunteering leave under
Schedule 7 to the Coronavirus Act 2020”.

(8)Paragraph 32 (family tie) has effect as if after sub-paragraph (4) there were
inserted—

“(4A)20But a day does not count as a day on which P sees the child if the day
on which P sees the child would be a day falling within the third case
in paragraph 22(7) (if P were present in the UK at the end of it).”

(9)Paragraph 34 (accommodation tie) has effect as if after sub-paragraph (1) there
were inserted—

“(1A)25For the purposes of sub-paragraph (1)—

(a)if the place is available to P on a day that would fall within
the third case in paragraph 22(7) (if P were present in the UK
at the end of that day), that day is to be disregarded for the
purposes of sub-paragraph (b), and

(b)30a night spent by P at the place immediately before or after a
day that would fall within the third case in paragraph 22(7)
(if P were present in the UK at the end of that day) is to be
disregarded for the purposes of sub-paragraph (c).”

(10)Paragraph 35 (work tie) has effect as if after sub-paragraph (2) there were
35inserted—

“(3)But a day that would fall within the third case in paragraph 22(7) (if
P were present in the UK at the end of it) does not count as a day on
which P works in the UK.”

(11)Paragraph 37 (90-day tie) has effect as if—

(a)40the existing text were sub-paragraph (1);

(b)after that sub-paragraph, there were inserted—

“(2)For the purposes of sub-paragraph (1), a day that would fall
within the third case in paragraph 22(7) (if P were present in
the UK at the end of it) does not count as a day P has spent in
45the UK in the year in question.”

(12)Paragraph 38 (country tie) has effect as if after sub-paragraph (3) there were