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(9) After section 468P insert— | |
“468PA Section 468O(1A): consequences of reasonable but incorrect belief | |
Where— | |
(a) an interest distribution is made to a unit holder by the trustees | |
of an authorised unit trust, | 5 |
(b) the trustees, in reliance on the reputable intermediary condition | |
being fulfilled with respect to the unit holder, do not comply | |
with the obligation under section 349(2) to make a deduction | |
from the interest distribution, | |
(c) that obligation would apply but for that condition being so | 10 |
fulfilled, and | |
(d) (contrary to the belief of the trustees) the unit holder is in fact | |
ordinarily resident in the United Kingdom, | |
section 350 and Schedule 16 have effect as if that obligation applied. | |
468PB Regulations supplementing sections 468M to 468PA | 15 |
(1) The Board may by regulations make provision for giving effect to | |
sections 468M to 468PA. | |
(2) The regulations may, in particular, include provision modifying the | |
application of those sections in relation to interest distributions made to | |
or received under a trust. | 20 |
(3) The regulations may, in particular, include provision for the giving by | |
officers of the Board of notices requiring trustees of authorised unit | |
trusts to supply information and make available books, documents and | |
other records for inspection on behalf of the Board. | |
(4) The regulations may— | 25 |
(a) make provision in relation to times before they are made, | |
(b) make different provision for different cases, and | |
(c) make such supplementary, incidental, consequential or | |
transitional provision as appears to the Board to be | |
appropriate.”. | 30 |
(10) Section 98 of the Taxes Management Act 1970 (c. 9) (penalties: provisions | |
requiring information etc in response to notices) is amended as follows. | |
(11) In subsection (4A)(b), for “or (4D)” substitute “, (4D) or (4E)”. | |
(12) After subsection (4D) insert— | |
“(4E) A payment is within this subsection if— | 35 |
(a) it is an interest distribution made to a unit holder by the trustees | |
of an authorised unit trust, | |
(b) the trustees, in purported reliance on the reputable | |
intermediary condition being fulfilled with respect to the unit | |
holder, do not comply with the obligation under section 349(2) | 40 |
of the principal Act to make a deduction from the interest | |
distribution, | |
(c) that obligation would apply if that condition were not so | |
fulfilled, and | |
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| |
|
| |
| |
(d) the trustees did not believe that the unit holder was not | |
ordinarily resident in the United Kingdom or could not | |
reasonably have so believed (so that that condition was not so | |
fulfilled). | |
Expressions used in this subsection have the same meaning as in | 5 |
Chapter 3 of Part 12 of the principal Act.”. | |
(13) In the first column of the Table, after the entry relating to regulations under | |
section 431E(1) or 441A(3) of the principal Act, insert— | |
“section 468P(6); | |
regulations under section 468PB(3);”. | 10 |
(14) This section has effect in relation to interest distributions made on or after 16th | |
October 2002. | |
201 Mandatory electronic payment by large employers | |
(1) The Commissioners of Inland Revenue (“the Commissioners”) may make | |
regulations requiring large employers, subject to such exceptions as may be | 15 |
specified, to use electronic means for the making of specified payments under | |
legislation relating to any tax under the care and management of the | |
Commissioners. | |
(2) In subsection (1) “large employer” means a person paying PAYE income to 250 | |
or more recipients. | 20 |
Regulations under this section may make provision as to the date or period by | |
reference to which this is to be determined and the circumstances in which a | |
person is to be treated as paying PAYE income to a recipient. | |
(3) Regulations under this section may make provision— | |
(a) as to conditions that must be complied with in connection with the use | 25 |
of electronic means for the making of any payment; | |
(b) for treating a payment as not having been made unless conditions | |
imposed by any of the regulations are satisfied; | |
(c) for determining the time when payment is to be taken to have been | |
made. | 30 |
(4) Regulations under this section may also make provision (which may include | |
provision for the application of conclusive or other presumptions) as to the | |
manner of proving for any purpose— | |
(a) whether any use of electronic means for making a payment is to be | |
taken as having resulted in the payment being made; | 35 |
(b) the time of the making of any payment for the making of which | |
electronic means have been used; | |
(c) any other matter for which provision may be made by regulations | |
under this section. | |
(5) Regulations under this section may— | 40 |
(a) allow any authorisation or requirement for which the regulations may | |
provide to be given or imposed by means of a specific or general | |
direction given by the Commissioners; | |
(b) provide that the conditions of any such authorisation or requirement | |
are to be taken to be satisfied only where the Inland Revenue are | 45 |
satisfied as to specified matters. | |
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(6) Regulations under this section may contain provision— | |
(a) requiring the Inland Revenue to notify persons appearing to them to be, | |
or to have become, a person required to use electronic means for the | |
making of any payments in accordance with the regulations; | |
(b) enabling a person so notified to have the question whether he is such a | 5 |
person determined in the same way as an appeal. | |
(7) Regulations under this section may confer power on the Commissioners to | |
give specific or general directions— | |
(a) suspending, for any period during which the use of electronic means | |
for the making of payments is impossible or impractical, any | 10 |
requirements imposed by the regulations relating to the use of such | |
means; | |
(b) substituting alternative requirements for the suspended ones; | |
(c) making any provision that is necessary in consequence of the | |
imposition of the substituted requirements. | 15 |
(8) The power to make provision by regulations under this section includes | |
power— | |
(a) to provide for a contravention of, or any failure to comply with, the | |
regulations (a “default”) to attract a surcharge of a specified amount; | |
(b) to provide that specified enactments relating to penalties imposed for | 20 |
the purposes of any taxation matter within the care and management of | |
the Commissioners (including enactments relating to assessments, | |
review and appeal) apply, with or without modifications, in relation to | |
surcharges under the regulations. | |
(9) The regulations may specify the surcharge for each default as— | 25 |
(a) a specified percentage, depending on the circumstances but not | |
exceeding 10%, of the amount of the payment to which the default | |
relates, or | |
(b) a specified percentage, depending on the circumstances but not | |
exceeding 0.83%, of the total amount of tax due for the accounting | 30 |
period, year of assessment or other specified period of twelve months | |
during which the default occurred; | |
but, in either case, they may specify £30 if it is more. | |
(10) Regulations under this section may— | |
(a) make different provision for different cases; | 35 |
(b) make such incidental, supplemental, consequential and transitional | |
provision in connection with any provision contained in any of the | |
regulations as the Commissioners think fit. | |
(11) Regulations under this section shall be made by statutory instrument subject to | |
annulment in pursuance of a resolution of the House of Commons. | 40 |
(12) In this section— | |
“the Inland Revenue” means— | |
(a) the Commissioners, | |
(b) any officer of the Commissioners, or | |
(c) any other person who for the purposes of electronic means of | 45 |
payment is acting under the authority of the Commissioners; | |
“legislation” means any enactment, Community legislation or | |
subordinate legislation; | |
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| |
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| |
“specified” means specified by or under regulations under this section; | |
“subordinate legislation” has the same meaning as in the Interpretation | |
Act 1978 (c. 30). | |
202 Use of electronic means of payment under other provisions | |
(1) Any power to make subordinate legislation for or in connection with the | 5 |
making of payments conferred in relation to a taxation matter on— | |
(a) the Commissioners of Inland Revenue, or | |
(b) the Treasury, | |
includes power to make any such provision in relation to the making of those | |
payments as could be made in exercise of the power conferred by section 201. | 10 |
(2) Provision as to means of payment made in exercise of the powers conferred by | |
section 201 or subsection (1) above has effect notwithstanding so much of any | |
enactment or subordinate legislation as would otherwise allow payment to be | |
made by any other means. | |
(3) Expressions used in this section and section 201 have the same meaning in this | 15 |
section as in that section. | |
(4) Nothing in this section shall be read as restricting the generality of the power | |
conferred by section 201. | |
203 Admissibility of evidence not affected by offer of settlement etc | |
(1) In section 105(1) of the Taxes Management Act 1970 (c. 9) (evidence in cases of | 20 |
fraudulent conduct), for paragraphs (a) and (b) and the word “that” preceding | |
them substitute— | |
“(a) that where serious tax fraud has been committed the Board may | |
accept a money settlement and that the Board will accept such a | |
settlement, and will not pursue a criminal prosecution, if he | 25 |
makes a full confession of all tax irregularities, or | |
(b) that the extent to which he is helpful and volunteers | |
information is a factor that will be taken into account in | |
determining the amount of any penalty,”. | |
(2) For the heading to that section substitute “Admissibility of evidence not | 30 |
affected by offer of settlement etc”. | |
(3) In paragraph 3(1) of Schedule 18 to the Finance Act 1999 (c. 16) (which makes | |
corresponding provision in relation to stamp duty), for paragraphs (a) and (b) | |
substitute— | |
“(a) that where serious stamp duty fraud has been committed the | 35 |
Board may accept a money settlement and that the Board will | |
accept such a settlement, and will not pursue a criminal | |
prosecution, if he makes a full confession of all stamp duty | |
irregularities, or | |
(b) that the extent to which he is helpful and volunteers | 40 |
information is a factor that will be taken into account in | |
determining the amount of any penalty,”. | |
(4) For the heading before that paragraph substitute “Admissibility of evidence not | |
affected by offer of settlement etc”. | |
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(5) The above amendments have effect in relation to statements made, or | |
documents produced, after the passing of this Act. | |
204 Consequential claims etc | |
(1) In Part 4 of the Taxes Management Act 1970 (c. 9) (assessment and claims), after | |
section 43B insert— | 5 |
“43C Consequential claims etc | |
(1) Where— | |
(a) a return is amended under section 28A(2)(b), 28B(2)(b) or | |
28B(4), and | |
(b) the amendment is made for the purpose of making good to the | 10 |
Crown any loss of tax attributable to fraudulent or negligent | |
conduct on the part of the taxpayer or a person acting on his | |
behalf, | |
sections 36(3) and 43(2) apply in relation to the amendment as they | |
apply in relation to any assessment under section 29. | 15 |
(2) Where— | |
(a) a return is amended under section 28A(2)(b), 28B(2)(b) or | |
28B(4), and | |
(b) the amendment is not made for the purpose mentioned in | |
subsection (1)(b) above, | 20 |
sections 43(2), 43A and 43B apply in relation to the amendment as they | |
apply in relation to any assessment under section 29. | |
(3) References to an assessment in sections 36(3), 43(2), 43A and 43B, as | |
they apply by virtue of subsection (1) or (2) above, shall accordingly be | |
read as references to the amendment of the return. | 25 |
(4) Where it is necessary to make any adjustment by way of an assessment | |
on any person— | |
(a) in order to give effect to a consequential claim, or | |
(b) as a result of allowing a consequential claim, | |
the assessment is not out of time if it is made within one year of the final | 30 |
determination of the claim. | |
For this purpose a claim is not taken to be finally determined until it, or | |
the amount to which it relates, can no longer be varied, on appeal or | |
otherwise. | |
(5) In subsection (4) above “consequential claim” means any claim, | 35 |
supplementary claim, election, application or notice that may be made | |
or given under section 36(3), 43(2) or 43A (as it applies by virtue of | |
subsection (1) or (2) above or otherwise).”. | |
(2) In section 43A of that Act (further assessments: claims etc), in subsection (2A) | |
(elections to which extension of time limit does not apply) for the words from | 40 |
“an election under” to the end substitute “an election under— | |
(a) section 257BA of the principal Act (election as to transfer of | |
married couple’s allowance), | |
(b) Schedule 13B to that Act (elections as to transfer of children’s | |
tax credit), or | 45 |
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(c) section 35(5) of the Taxation of Chargeable Gains Act 1992 | |
(election for assets to be re-based to 1982).”. | |
(3) So far as it applies in relation to an amendment of a return, this section applies | |
only where the notice of the amendment is issued after the day on which this | |
Act is passed. | 5 |
National Savings | |
205 Ordinary accounts and investment accounts | |
(1) The National Savings Bank Act 1971 (c. 29) is amended as follows. | |
(2) In section 3 (ordinary and investment deposits), after subsection (1) insert— | |
“(1A) But subsection (1) is subject to any provision made in relation to | 10 |
ordinary accounts or ordinary deposits by regulations under section 2 | |
of this Act made by virtue of section 8(3) of this Act.”. | |
(3) Section 6 (interest on investment deposits) is amended as follows. | |
(4) In subsection (2), for “Director of Savings may from time to time determine | |
with the consent of the Treasury” substitute “Treasury may from time to time | 15 |
determine”. | |
(5) After that subsection insert— | |
“(2ZA) The Treasury may determine that a rate of interest payable on | |
investment deposits, or investment deposits of a particular description, | |
is to be a rate produced by the operation of a formula involving the | 20 |
movement of an index or indices or any other factor.”. | |
(6) In subsection (3), after “description” insert “(other than one occasioned by the | |
operation of a formula)”. | |
(7) After that subsection insert— | |
“(4) In the case of an alteration in a rate of interest not affecting deposits | 25 |
received before it is made, any notice of the alteration required to be | |
given by subsection (3) above may be given after the alteration is | |
made.”. | |
(8) Section 8 (regulations as to particular matters) is amended as follows. | |
(9) In subsection (1), after paragraph (b) insert— | 30 |
“(ba) for the issuing of cards for use in making investment deposits or | |
in withdrawing cash from investment accounts (or both) and | |
regulating the use of such cards;”. | |
(10) After subsection (2) insert— | |
“(3) Regulations under subsection (2) of this Act may also make provision— | 35 |
(a) prohibiting the opening of ordinary accounts after a prescribed | |
date; | |
(b) prohibiting the opening of investment accounts of a prescribed | |
description after a date prescribed in relation to that description | |
of accounts; | 40 |
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(c) prohibiting the making of ordinary deposits after a prescribed | |
date; | |
(d) prohibiting the making of deposits in investment accounts of a | |
prescribed description after a date prescribed in relation to that | |
description of accounts; | 5 |
(e) requiring the withdrawal of all of the money deposited in any | |
dormant account of a prescribed description if any of the money | |
deposited in it is withdrawn after a date prescribed in relation | |
to that description of account; | |
(f) for the transfer to investment accounts of a prescribed | 10 |
description of deposits in dormant accounts of a prescribed | |
description; | |
(g) for the transfer to a special Director’s account of deposits in | |
dormant accounts of a prescribed description or in accounts to | |
which deposits have been transferred pursuant to provision | 15 |
made by virtue of paragraph (f) above. | |
(4) In subsection (3) above— | |
“dormant account” means an account in which deposits may not | |
be made because of provision made by virtue of paragraph (c) | |
or (d) of that subsection; and | 20 |
“special Director’s account” means an investment account in the | |
name of the Director of Savings in which deposits are held on | |
behalf of the persons entitled to them.”. | |
(11) After section 9 insert— | |
“9A Investment account terms and conditions | 25 |
(1) Any provision which may be made in relation to investment deposits | |
by regulations under section 2 of this Act may, in the case of deposits in | |
investment accounts of any description first made available after the | |
passing of the Finance Act 2003, be included instead in the terms and | |
conditions of the accounts. | 30 |
(2) Any provision included in the terms and conditions of investment | |
accounts under subsection (1) above has effect subject to regulations | |
under section 2 of this Act and orders under section 4 of this Act. | |
(3) In this section “terms and conditions” means terms and conditions set | |
by the Treasury and published by Director of Savings in a manner | 35 |
approved by the Treasury.”. | |
206 Abolition of accounting requirements relating to investment deposits | |
In section 120 of the Finance Act 1980 (c. 48) (investment deposits with | |
National Savings Bank: accounting provisions etc), omit subsections (4) and (5) | |
(which require the Director of Savings to keep an account of investment | 40 |
deposits etc and transmit annual statements to Comptroller and Auditor | |
General for examination etc). | |
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