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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 | |
specified, to use electronic means for the making of specified payments under | |
legislation relating to any tax under the care and management of the | 5 |
Commissioners. | |
(2) In subsection (1) “large employer” means a person paying PAYE income to 250 | |
or more recipients. | |
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 | 10 |
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 | |
of electronic means for the making of any payment; | |
(b) for treating a payment as not having been made unless conditions | 15 |
imposed by any of the regulations are satisfied; | |
(c) for determining the time when payment is to be taken to have been | |
made. | |
(4) Regulations under this section may also make provision (which may include | |
provision for the application of conclusive or other presumptions) as to the | 20 |
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; | |
(b) the time of the making of any payment for the making of which | |
electronic means have been used; | 25 |
(c) any other matter for which provision may be made by regulations | |
under this section. | |
(5) Regulations under this section may— | |
(a) allow any authorisation or requirement for which the regulations may | |
provide to be given or imposed by means of a specific or general | 30 |
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 | |
satisfied as to specified matters. | |
(6) Regulations under this section may contain provision— | 35 |
(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 | |
person determined in the same way as an appeal. | 40 |
(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 | |
requirements imposed by the regulations relating to the use of such | 45 |
means; | |
(b) substituting alternative requirements for the suspended ones; | |
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(c) making any provision that is necessary in consequence of the | |
imposition of the substituted requirements. | |
(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 | 5 |
regulations (a “default”) to attract a surcharge of a specified amount; | |
(b) to provide that specified enactments relating to penalties imposed for | |
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 | 10 |
surcharges under the regulations. | |
(9) The regulations may specify the surcharge for each default as— | |
(a) a specified percentage, depending on the circumstances but not | |
exceeding 10%, of the amount of the payment to which the default | |
relates, or | 15 |
(b) a specified percentage, depending on the circumstances but not | |
exceeding 0.83%, of the total amount of tax due for the accounting | |
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. | 20 |
(10) Regulations under this section may— | |
(a) make different provision for different cases; | |
(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. | 25 |
(11) Regulations under this section shall be made by statutory instrument subject to | |
annulment in pursuance of a resolution of the House of Commons. | |
(12) In this section— | |
“the Inland Revenue” means— | |
(a) the Commissioners, | 30 |
(b) any officer of the Commissioners, or | |
(c) any other person who for the purposes of electronic means of | |
payment is acting under the authority of the Commissioners; | |
“legislation” means any enactment, Community legislation or | |
subordinate legislation; | 35 |
“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 | 40 |
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. | 45 |
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(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 | 5 |
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 | 10 |
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 | 15 |
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 | 20 |
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 | 25 |
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 | 30 |
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”. | |
(5) The above amendments have effect in relation to statements made, or | 35 |
documents produced, after the passing of this Act. | |
204 Consequential claims etc | |
(1) In Part 4 of the Taxes Management Act 1970 (assessment and claims), after | |
section 43B insert— | |
“43C Consequential claims etc | 40 |
(1) Where— | |
(a) a return is amended under section 28A(2)(b), 28B(2)(b) or | |
28B(4), and | |
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(b) the amendment is made for the purpose of making good to the | |
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 | 5 |
apply in relation to any assessment under section 29. | |
(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 | 10 |
subsection (1)(b) above, | |
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 | 15 |
read as references to the amendment of the return. | |
(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, | 20 |
the assessment is not out of time if it is made within one year of the final | |
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. | 25 |
(5) In subsection (4) above “consequential claim” means any claim, | |
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) | 30 |
(elections to which extension of time limit does not apply) for the words from | |
“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 | 35 |
tax credit), or | |
(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 | 40 |
Act is passed. | |
National Savings | |
205 Ordinary accounts and investment accounts | |
(1) The National Savings Bank Act 1971 (c. 29) is amended as follows. | |
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(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 | |
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. | 5 |
(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 | |
determine”. | |
(5) After that subsection insert— | |
“(2ZA) The Treasury may determine that a rate of interest payable on | 10 |
investment deposits, or investment deposits of a particular description, | |
is to be a rate produced by the operation of a formula involving the | |
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)”. | 15 |
(7) After that subsection insert— | |
“(4) In the case of an alteration in a rate of interest not affecting deposits | |
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.”. | 20 |
(8) Section 8 (regulations as to particular matters) is amended as follows. | |
(9) In subsection (1), after paragraph (b) insert— | |
“(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;”. | 25 |
(10) After subsection (2) insert— | |
“(3) Regulations under section 2 of this Act may also make provision— | |
(a) prohibiting the opening of ordinary accounts after a prescribed | |
date; | |
(b) prohibiting the opening of investment accounts of a prescribed | 30 |
description after a date prescribed in relation to that description | |
of accounts; | |
(c) prohibiting the making of ordinary deposits after a prescribed | |
date; | |
(d) prohibiting the making of deposits in investment accounts of a | 35 |
prescribed description after a date prescribed in relation to that | |
description of accounts; | |
(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 | 40 |
to that description of account; | |
(f) for the transfer to investment accounts of a prescribed | |
description of deposits in dormant accounts of a prescribed | |
description; | |
(g) for the transfer to a special Director’s account of deposits in | 45 |
dormant accounts of a prescribed description or in accounts to | |
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which deposits have been transferred pursuant to provision | |
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) | 5 |
or (d) of that subsection; and | |
“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— | 10 |
“9A Investment account terms and conditions | |
(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 | 15 |
conditions of the accounts. | |
(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 | 20 |
by the Treasury and published by Director of Savings in a manner | |
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) | 25 |
(which require the Director of Savings to keep an account of investment | |
deposits etc and transmit annual statements to the Comptroller and Auditor | |
General for examination etc). | |
Other financial matters | |
207 Payments for service of national debt | 30 |
(1) Section 15 of the National Loans Act 1968 (c. 13) (payments for service of | |
national debt) is amended as follows. | |
(2) In subsection (1) (payments to be made out of Consolidated Fund into National | |
Loans Fund), for “charges on the National Loans Fund for the service of | |
national debt over” substitute “payments out of the National Loans Fund— | 35 |
(a) which represent interest on liabilities of the National Loans | |
Fund, or | |
(b) which, in the opinion of the Treasury, ought to be treated in the | |
same way as payments which represent such interest, | |
over”. | 40 |
(3) Omit subsection (3) (which defines “charges on the National Loans Fund for | |
the service of national debt”). | |
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(4) In paragraph 13 of Schedule 5A to that Act (Debt Management Account: | |
payments to be made out of National Loans Fund into Debt Management | |
Account), omit sub-paragraph (2) (payments to be treated as charges on the | |
National Loans Fund for the service of national debt). | |
208 Definition of liabilities and assets of National Loans Fund | 5 |
In section 19(4) of the National Loans Act 1968 (c. 13) (which defines as the | |
liabilities of the National Loans Fund the nominal amount of the debt | |
outstanding to it and as its assets its balance and loans etc outstanding to it), | |
for the words from “of the National Loans Fund” onwards substitute “and | |
assets of the National Loans Fund shall be as determined by the Treasury.”. | 10 |
209 Accounts of Consolidated Fund and National Loans Fund | |
(1) Section 21 of the National Loans Act 1968 (accounts of Consolidated Fund and | |
National Loans Fund) is amended as follows. | |
(2) In subsection (1) (annual accounts of payments in and out), for the words from | |
“in such form” onwards substitute “an account relating to the Consolidated | 15 |
Fund, and an account relating to the National Loans Fund, in such form and | |
containing such information as the Treasury consider appropriate.”. | |
(3) Omit subsection (3) (statements of additional information regarding | |
transactions, assets and liabilities of Consolidated Fund and National Loans | |
Fund). | 20 |
(4) Subsection (2) has effect for the financial year ending with 31st March 2004 and | |
subsequent financial years. | |
(5) Subsection (3) has effect for such financial year as the Treasury may by order | |
made by statutory instrument appoint and subsequent financial years. | |
210 Debt Management Account: abolition of borrowing cap | 25 |
In Schedule 5A to the National Loans Act 1968 (Debt Management Account), | |
omit paragraph 8 (borrowings otherwise than from National Loans Fund not | |
to exceed total standing to credit of that Account in that Fund and at Bank of | |
England). | |
211 Payments in error from or to National Loans Fund | 30 |
In paragraph 11 of Schedule 5A to the National Loans Act 1968 (payments | |
between National Loans Fund and Debt Management Account in respect of | |
difference between assets and liabilities of that Account), insert at the end— | |
“(4) If any amount paid under sub-paragraph (1A) or (3) above should | |
not have been paid, the Treasury may repay the whole or any part of | 35 |
it.”. | |
Supplementary | |
212 Interpretation | |
In this Act “the Taxes Act 1988” means the Income and Corporation Taxes Act | |
1988 (c. 1). | 40 |
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