|
| |
|
(4) | A person is not liable to a penalty under— |
| |
(a) | section 95 of the Taxes Management Act 1970 (c. 9) (incorrect return or |
| |
accounts for income tax or capital gains tax), |
| |
(b) | paragraph 8 of Schedule 2 to the Oil Taxation Act 1975 (c. 22) (incorrect |
| |
returns and accounts for purposes of petroleum revenue tax), |
| 5 |
(c) | section 247 of the Inheritance Tax Act 1984 (c. 51) (provision of incorrect |
| |
information for purposes of inheritance tax), |
| |
(d) | any provision relating to incorrect or uncorrected returns made under |
| |
section 98 of the Finance Act 1986 (c. 41) (administration of stamp duty |
| |
| 10 |
(e) | paragraph 20 of Schedule 18 to the Finance Act 1998 (c. 36) (incorrect or |
| |
uncorrected return for corporation tax), |
| |
(f) | paragraph 8 of Schedule 10 to the Finance Act 2003 (incorrect or |
| |
uncorrected return for purposes of stamp duty land tax), or |
| |
(g) | any other prescribed provision, |
| 15 |
| by reason of any failure to include in any return or account any reference |
| |
number or other information required by virtue of subsection (3)(a) (but see |
| |
section 98C of the Taxes Management Act 1970 for the penalty for failure to |
| |
comply with this section). |
| |
298 | Legal professional privilege |
| 20 |
(1) | Nothing in this Part requires any person to disclose to the Board any privileged |
| |
| |
(2) | In this Part “privileged information” means information with respect to which |
| |
a claim to legal professional privilege, or, in Scotland, to confidentiality of |
| |
communications, could be maintained in legal proceedings. |
| 25 |
| |
(1) | After section 98B of the Taxes Management Act 1970 insert— |
| |
“98C | Notification under Part 7 of Finance Act 2004 |
| |
(1) | A person who fails to comply with any of the provisions of Part 7 of the |
| |
Finance Act 2004 (disclosure of tax avoidance schemes) mentioned in |
| 30 |
subsection (2) below shall be liable— |
| |
(a) | to a penalty not exceeding £5,000, and |
| |
(b) | if the failure continues after a penalty is imposed under |
| |
paragraph (a) above, to a further penalty or penalties not |
| |
exceeding £600 for each day on which the failure continues after |
| 35 |
the day on which the penalty under paragraph (a) was imposed |
| |
(but excluding any day for which a penalty under this |
| |
paragraph has already been imposed). |
| |
(2) | Those provisions are— |
| |
(a) | section 292(1) and (3) (duty of promoter in relation to notifiable |
| 40 |
proposals and notifiable arrangements), |
| |
(b) | section 293(1) (duty of person dealing with promoter outside |
| |
| |
(c) | section 294 (duty of parties to notifiable arrangements not |
| |
| 45 |
|
| |
|
| |
|
(d) | section 296(1) (duty of promoter to notify client of reference |
| |
| |
(3) | A person who fails to comply with section 297(1) of the Finance Act |
| |
2004 (duties of parties to notifiable arrangements to notify Board of |
| |
reference number, etc.) shall be liable to a penalty of the relevant sum. |
| 5 |
(4) | In subsection (3) above “the relevant sum” means— |
| |
(a) | in relation to a person not falling within paragraph (b) or (c) |
| |
below, £100 in respect of each scheme to which the failure |
| |
| |
(b) | in relation to a person who has previously failed to comply with |
| 10 |
section 297(1) on one (and only one) occasion during the period |
| |
of 36 months ending with the date on which the current failure |
| |
to comply with that provision began, £500 in respect of each |
| |
scheme to which the current failure relates (whether or not the |
| |
same as the scheme to which the previous failure relates), or |
| 15 |
(c) | in relation to a person who has previously failed to comply with |
| |
section 297(1) on two or more occasions during the period of 36 |
| |
months ending with the date on which the current failure to |
| |
comply with that provision began, £1,000 in respect of each |
| |
scheme to which the current failure relates (whether or not the |
| 20 |
same as the schemes to which any of the previous failures |
| |
| |
(5) | In subsection (4) above “scheme” means any notifiable arrangements |
| |
within the meaning of Part 7 of the Finance Act 2004.” |
| |
(2) | In section 100 of that Act (determination of penalties by officer of Board) at the |
| 25 |
end of subsection (2) (penalties to which subsection (1) of the section does not |
| |
| |
(f) | section 98C(1)(a) above.” |
| |
(3) | In section 100C of that Act (penalty proceedings before Commissioners) after |
| |
| 30 |
“(1A) | In its application to a penalty under section 98C(1)(a) above, subsection |
| |
(1) above has effect with the omission of the words “General or”.” |
| |
300 | Regulations under Part 7 |
| |
(1) | Any power of the Treasury or the Board to make regulations under this Part is |
| |
exercisable by statutory instrument. |
| 35 |
(2) | Regulations made by the Treasury or the Board under this Part may contain |
| |
transitional provisions and savings. |
| |
(3) | A statutory instrument containing regulations made by the Treasury or the |
| |
Board under any provision of this Part is subject to annulment in pursuance of |
| |
a resolution of the House of Commons. |
| 40 |
301 | Interpretation of Part 7 |
| |
| |
| “advantage”, in relation to any tax, means— |
| |
|
| |
|
| |
|
(a) | relief or increased relief from, or repayment or increased |
| |
repayment of, that tax, or the avoidance or reduction of a charge |
| |
to that tax or an assessment to that tax or the avoidance of a |
| |
possible assessment to that tax, |
| |
(b) | the deferral of any payment of tax or the advancement of any |
| 5 |
| |
(c) | the avoidance of any obligation to deduct or account for any tax; |
| |
| “arrangements” includes any scheme, transaction or series of transactions; |
| |
| “corporation tax” includes any amount which, by virtue of any of the |
| |
provisions mentioned in paragraph 1 of Schedule 18 to the Finance Act |
| 10 |
1998 (c. 36) (company tax returns, assessments and related matters) is |
| |
assessable and chargeable as if it were corporation tax; |
| |
| “notifiable arrangements” has the meaning given by section 290(1); |
| |
| “notifiable proposal” has the meaning given by section 290(2); |
| |
| “prescribed”, except in section 290, means prescribed by regulations made |
| 15 |
| |
| “promoter”, in relation to notifiable arrangements or a notifiable |
| |
proposal, has the meaning given by section 291; |
| |
| “reference number”, in relation to notifiable arrangements, has the |
| |
meaning given by section 295(2); |
| 20 |
| |
| |
| |
| |
(d) | petroleum revenue tax, |
| 25 |
| |
(f) | stamp duty land tax, or |
| |
(g) | stamp duty reserve tax. |
| |
(2) | Subject to subsection (1), expressions which are defined in the Taxes Act 1988 |
| |
for the purposes of the Tax Acts, as defined in section 831(2) of that Act, have |
| 30 |
the same meaning in this Part. |
| |
302 | Part 7: commencement and savings |
| |
(1) | The following provisions of this Part come into force on the passing of this |
| |
| |
| sections 290 to 299, so far as is necessary for enabling the making of any |
| 35 |
regulations for which they provide, and |
| |
| sections 300 and 301 and this section. |
| |
(2) | Except as provided by subsection (1), the provisions of this Part come into force |
| |
| |
(3) | Section 292 does not apply to a promoter in the case of— |
| 40 |
(a) | any notifiable proposal as respects which the relevant date, as defined |
| |
by subsection (2) of that section, fell before 18th March 2004, |
| |
(b) | any notifiable arrangements which implement such a proposal, or |
| |
(c) | any notifiable arrangements which include any transaction entered into |
| |
| 45 |
(4) | Sections 293 and 294 do not apply in relation to notifiable arrangements which |
| |
include any transaction entered into before 23rd April 2004. |
| |
|
| |
|
| |
|
(5) | Section 297 does not apply in relation to any notifiable arrangements in respect |
| |
of which, by virtue of subsection (3) or (4), none of the duties imposed by |
| |
| |
| |
| 5 |
303 | Exclusion of extended limitation period in England, Wales and Northern |
| |
| |
(1) | Section 32(1)(c) of the Limitation Act 1980 (c. 58) or, in Northern Ireland, |
| |
Article 71(1)(c) of the Limitation (Northern Ireland) Order 1989 (S.I. 1989/1339 |
| |
(N.I. 11)) (extended period for bringing an action in case of mistake) does not |
| 10 |
apply in relation to a mistake of law relating to a taxation matter under the care |
| |
and management of the Commissioners of Inland Revenue. |
| |
| This subsection has effect in relation to actions brought on or after 8th |
| |
| |
| 15 |
(a) | section 35(5)(a) of the Limitation Act 1980 or, in Northern Ireland, |
| |
Article 73(4)(a) of the Limitation (Northern Ireland) Order 1989 |
| |
(circumstances in which time-barred claim may be brought in course of |
| |
| |
(b) | rules of court or county court rules having effect for the purposes of |
| 20 |
| |
| as they apply to claims in respect of mistakes of the kind mentioned in |
| |
subsection (1), a new claim shall not be regarded as arising out of the same |
| |
facts, or substantially the same facts, if it is brought in respect of a different |
| |
payment, transaction, period or other matter. |
| 25 |
| This subsection has effect in relation to claims made on or after 20th November |
| |
| |
(3) | If before the passing of this Act— |
| |
(a) | an action is brought in relation to which a defence of limitation would |
| |
have been available if subsection (1) had been in force, or |
| 30 |
(b) | a claim is made on or after 20th November 2003 that by virtue of section |
| |
35(1)(b) of the Limitation Act 1980 or, in Northern Ireland, Article |
| |
73(1)(b) of the Limitation (Northern Ireland) Order 1989 is treated as an |
| |
action brought before 8th September 2003 and that claim would not |
| |
have been allowed if subsections (1) and (2) above had been in force, |
| 35 |
| the action (or so much of it as relates to a cause of action in respect of which a |
| |
defence of limitation would have been available or, as the case may be, a claim |
| |
would not have been allowed) shall be deemed to be discontinued on the |
| |
passing of this Act and any payment made by the Commissioners in or |
| |
towards meeting their liability in the action (or so much of the action as so |
| 40 |
relates) may be recovered by them (with interest from the date of the payment). |
| |
(4) | Nothing in this section affects a claim made before 20th November 2003 that by |
| |
virtue of section 35(1)(b) of the Limitation Act 1980 (c. 58) or, in Northern |
| |
Ireland, Article 73(1)(b) of the Limitation (Northern Ireland) Order 1989 is |
| |
treated as an action brought before 8th September 2003. |
| 45 |
(5) | For the purposes of this section a claim is treated as made before 20th |
| |
| |
|
| |
|
| |
|
(a) | the Commissioners have before that date consented in writing to the |
| |
| |
(b) | immediately before that date— |
| |
(i) | the consent of the Commissioners has been sought and has not |
| |
| 5 |
(ii) | an application to the court for permission to make the claim has |
| |
been made and has not been refused. |
| |
(6) | The provisions of this section apply to any action or claim for relief from the |
| |
consequences of a mistake of law, whether expressed to be brought on the |
| |
ground of mistake or on some other ground (such as unlawful demand or ultra |
| 10 |
| |
(7) | This section shall be construed as one with the Limitation Act 1980 or, in |
| |
Northern Ireland, the Limitation (Northern Ireland) Order 1989. |
| |
304 | Exclusion of extended prescriptive period in Scotland |
| |
(1) | Section 6(4)(a)(ii) of the Prescription and Limitation (Scotland) Act 1973 (c. 52) |
| 15 |
(extinction of obligations by prescriptive period: exclusion of period during |
| |
which creditor induced by error to refrain from making claim) does not apply |
| |
in relation to an obligation based on redress of unjustified enrichment arising |
| |
from an error of law relating to a taxation matter under the care and |
| |
management of the Commissioners of Inland Revenue. |
| 20 |
(2) | Subsection (1) has effect in relation to an obligation in respect of which no |
| |
relevant claim has been made before 8th September 2003. |
| |
(3) | In the case of a relevant claim made on or after that date and before the passing |
| |
of this Act relating to an obligation that would have been extinguished if |
| |
subsections (1) and (2) had been in force— |
| 25 |
(a) | proceedings on the claim (or so much of the proceedings as relates to |
| |
such an obligation) shall be deemed to be discontinued on the passing |
| |
| |
(b) | any payment made by the Commissioners in or towards meeting their |
| |
liability on the claim (or so much of it as so relates) may be recovered |
| 30 |
by them (with interest from the date of the payment). |
| |
(4) | The provisions of this section apply in relation to any relevant claim for redress |
| |
of unjustified enrichment arising from an error of law, whether expressed to be |
| |
made on the ground of error or on some other ground. |
| |
(5) | In this section “relevant claim” has the same meaning as in section 6 of the |
| 35 |
Prescription and Limitation (Scotland) Act 1973. |
| |
305 | Mutual assistance: customs union with the Principality of Andorra |
| |
(1) | The UK mutual assistance provisions have effect for the purposes of giving |
| |
effect to the EC-Andorra Mutual Assistance Recovery Decision as they have |
| |
effect for the purposes of giving effect to the Mutual Assistance Recovery |
| 40 |
| |
| |
| “the EC-Andorra Mutual Assistance Recovery Decision” means Chapter |
| |
2 of Title 1 of, and Annex 1 to, Decision No 1/2003 of the EC-Andorra |
| |
Joint Committee of 3 September 2003 (on the laws, regulations and |
| 45 |
|
| |
|
| |
|
administrative provisions necessary for the proper functioning of the |
| |
Customs Union between the European Community and the |
| |
Principality of Andorra); |
| |
| “the Mutual Assistance Recovery Directive” has the same meaning as in |
| |
the UK mutual assistance provisions; |
| 5 |
| “the UK mutual assistance provisions” means the provisions of section |
| |
134 of the Finance Act 2002 (c. 23) (recovery of taxes etc due in other |
| |
member States) and Schedule 39 to that Act. |
| |
(3) | In the UK mutual assistance provisions as they have effect in accordance with |
| |
| 10 |
(a) | references (except those in section 134(2) and paragraph 1(2)(a) of |
| |
Schedule 39) to the Mutual Assistance Recovery Directive shall be read |
| |
as references to the EC-Andorra Mutual Assistance Recovery Decision, |
| |
(b) | references to another member State shall be read as references to the |
| |
| 15 |
(c) | references to the competent authority of another member State shall be |
| |
read as references to the competent authority of the Principality of |
| |
| |
(d) | references to a tax authority in the United Kingdom, or to the relevant |
| |
UK authority, shall be read as references to the Commissioners of |
| 20 |
| |
(e) | the following provisions shall be treated as omitted— |
| |
(i) | in section 134, subsections (3)(a), (4) and (5), and |
| |
(ii) | in Schedule 39, paragraphs 2(2) and 3(3). |
| |
(4) | The powers in section 134(6) of the Finance Act 2002 and paragraph 3 of |
| 25 |
Schedule 39 to that Act may be exercised so as to make provision for the |
| |
purposes of giving effect to the EC-Andorra Mutual Assistance Recovery |
| |
Decision (or amendments of the Decision) which is different to that made for |
| |
the purposes of giving effect to the Mutual Assistance Recovery Directive (or |
| |
amendments of the Directive). |
| 30 |
306 | Ending of shipbuilders’ relief |
| |
(1) | Relief under section 2 of the Finance Act 1966 (c. 18) (relief for shipbuilders in |
| |
respect of certain taxes and duties) is not available, and shall be regarded as |
| |
never having been available, in any case where the contract mentioned in |
| |
subsection (2) of that section is— |
| 35 |
(a) | a contract made on or after 1st January 2001 relating to a self-propelled |
| |
sea-going commercial vessel, within the meaning of the 1998 |
| |
| |
(b) | in a case not falling within paragraph (a), a contract made on or after |
| |
| 40 |
(2) | In this section “the 1998 Regulation” means Council Regulation (EC) No 1540/ |
| |
98 of 29 June 1998 establishing new rules on aid to shipbuilding (under which |
| |
operating aid for shipbuilding ended on 31st December 2000). |
| |
307 | Government borrowing: preparations for possible adoption of Euro |
| |
(1) | The Treasury may incur expenditure with a view to securing that they would |
| 45 |
be able to exercise their functions under sections 12 to 20A of (and Schedule 5A |
| |
to) the National Loans Act 1968 (c. 13) (national debt and government |
| |
|
| |
|
| |
|
accounting) if the United Kingdom were to adopt the single currency in |
| |
accordance with the Treaty establishing the European Communities. |
| |
(2) | The Director of Savings may incur expenditure with a view to securing that he |
| |
would be able to exercise his functions if the United Kingdom were to adopt |
| |
the single currency in accordance with the Treaty establishing the European |
| 5 |
| |
| |
| |
| |
(1) | The enactments mentioned in Schedule 40 to this Act (which include |
| 10 |
provisions that are spent or of no practical utility) are repealed to the extent |
| |
| |
(2) | The repeals specified in that Schedule have effect subject to the commencement |
| |
provisions and savings contained or referred to in the notes set out in that |
| |
| 15 |
| |
In this Act “the Taxes Act 1988” means the Income and Corporation Taxes Act |
| |
| |
| |
This Act may be cited as the Finance Act 2004. |
| 20 |
|
| |
|