Finance Bill

House of Commons

Session 2002 - 03
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Other Bills before Parliament

Finance Bill

Finance Bill
Part 6 — Other taxes
246

(a)
if collected or received in Great Britain, be placed to the general
account of the Commissioners of Customs and Excise kept at
the Bank of England under section 17 of the Customs and Excise
Management Act 1979;
(b)
if collected or received in Northern Ireland, be paid into the
5
Consolidated Fund of the United Kingdom in such manner as
the Treasury may direct.”.
Inheritance tax
287
Delivery of accounts etc
(1)
Section 256 of the Inheritance Tax Act 1984 (c. 51) (regulations about
10
information to be furnished to the Board) is amended as follows.
(2)
In subsection (1)—
(a)
in paragraph (a), after “specified in” insert “or determined under”;
(b)
after paragraph (a) insert—
“(aa)
requiring persons who by virtue of regulations under
15
paragraph (a) above are not required to deliver accounts
under section 216 above to produce to the Board, in such
manner as may be specified in or determined under the
regulations, such information or documents as may be
so specified or determined”;
20
(c)
in paragraph (b), after “so specified” insert “or determined”;
(d)
paragraph (c) shall cease to have effect.
(3)
After subsection (1) insert—
“(1A)
Regulations under subsection (1)(aa) may in particular—
(a)
provide that information or documents must be produced to the
25
Board by producing it or them to—
(i)
a probate registry in England and Wales;
(ii)
the sheriff in Scotland;
(iii)
the Probate and Matrimonial Office in Northern Ireland;
(b)
provide that information or documents produced as specified
30
in paragraph (a) is or are to be treated for any or all purposes of
this Act as produced to the Board;
(c)
provide for the further transmission to the Board of information
or documents produced as specified in paragraph (a).”
(4)
Subsection (2) shall cease to have effect.
35
(5)
In subsection (3), at the end insert “and may make different provision for
different cases”.
(6)
After subsection (3) insert—
“(3A)
Regulations under this section may only be made—
(a)
in relation to England and Wales or Northern Ireland, after
40
consulting the Lord Chancellor;
(b)
in relation to Scotland, after consulting the Scottish Ministers.”

Finance Bill
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288
Grant of probate
(1)
In section 109 of the Supreme Court Act 1981 (c. 54) (refusal of grant of probate
where inheritance tax unpaid)—
(a)
for subsection (1) substitute—
“(1)
No grant shall be made, and no grant made outside the United
5
Kingdom shall be resealed, except—
(a)
on the production of information or documents under
regulations under section 256(1)(aa) of the Inheritance
Tax Act 1984 (excepted estates); or
(b)
on the production of an account prepared in pursuance
10
of that Act showing by means of such receipt or
certification as may be prescribed by the Commissioners
either—
(i)
that the inheritance tax payable on the delivery
of the account has been paid; or
15
(ii)
that no such tax is so payable.”;
(b)
in subsection (2), for “this section” substitute “subsection (1)(b)”;
(c)
after subsection (2) insert—
“(2A)
In this section and the following section, “the Commissioners”
means the Commissioners of Inland Revenue”;
20
(d)
subsection (3) shall cease to have effect.
(2)
In section 42 of the Probate and Legacy Duties Act 1808 (c. 149) (grant of
confirmation)—
(a)
the existing text shall become subsection (1) of that section;
(b)
at the beginning of that subsection, for “And” substitute “Subject to
25
subsection (2) below,”; and
(c)
after that subsection insert—
“(2)
In a case to which regulations under section 256(1)(aa) of the
Inheritance Tax Act 1984 (c. 51) apply (excepted estates), it shall not be
lawful to grant confirmation such as is mentioned in subsection (1)
30
above except on the production of information or documents in
accordance with those regulations.”
(3)
In Article 20 of the Administration of Estates (Northern Ireland) Order 1979
(S.I.1979/1575 (N.I.14)) (inheritance tax accounts)—
(a)
for paragraph (1) substitute—
35
“(1)
The High Court shall not make any grant, or reseal any grant
made outside the United Kingdom, except—
(a)
on the production of information or documents under
regulations under section 256(1)(aa) of the Inheritance
Tax Act 1984 (excepted estates); or
40
(b)
on the production of an account prepared in pursuance
of that Act showing by means of such receipt or
certification as may be prescribed by the Commissioners
of Inland Revenue either—
(i)
that the inheritance tax payable on the delivery
45
of the account has been paid; or
(ii)
that no such tax is so payable.”;

Finance Bill
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(b)
in paragraph (2) of that Article, for “this Article” substitute “paragraph
(1)(b)”.
(4)
Subsection (1) shall come into force on such day as the Treasury may after
consulting the Lord Chancellor by order made by statutory instrument
appoint.
5
(5)
Subsection (2) shall come into force on such day as the Treasury may after
consulting the Scottish Ministers by order made by statutory instrument
appoint.
(6)
Subsection (3) shall come into force on such day as the Treasury may after
consulting the Lord Chancellor by order made by statutory instrument
10
appoint.
289
Amendments to penalty regime
(1)
The Inheritance Tax Act 1984 is amended as specified in subsections (2) to (4).
(2)
In section 245 (failure to deliver accounts)—
(a)
in subsections (2)(a) and (3), for “not exceeding” substitute “of”;
15
(b)
after subsection (4) insert—
“(4A)
Without prejudice to any penalties under subsections (2) and (3)
above, if—
(a)
the failure by the taxpayer to deliver the account
continues after the anniversary of the end of the period
20
given by section 216(6) or (7) (whichever is applicable),
and
(b)
there would have been a liability to tax shown in the
account,

the taxpayer shall be liable to a penalty of an amount not
25
exceeding £3,000.”
(3)
In section 245A (failure to provide information etc)—
(a)
after subsection (1A) insert—
“(1B)
Without prejudice to any penalties under subsection (1A)
above, if a person continues to fail to comply with the
30
requirements of section 218A after the anniversary of the end of
the period of six months referred to in section 218A(1), he shall
be liable to a penalty of an amount not exceeding £3,000.”;
(b)
in subsection (5)—
(i)
after “failing to make a return” insert “, to comply with the
35
requirements of section 218A”;
(ii)
after “fails to make the return” insert “, to comply with the
requirements of section 218A”.
(4)
In section 247 (provision of incorrect information)—
(a)
in subsection (1), for the words from “, in the case of fraud” to the end
40
substitute “to a penalty not exceeding the difference mentioned in
subsection (2) below”;
(b)
in subsection (3), for the words from “, in the case of fraud” to the end
substitute “to a penalty not exceeding £3,000”.

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(5)
Subsection (2)(a) above has effect in relation to a failure by any person to
deliver an account under section 216 or 217 of the Inheritance Tax Act 1984
(c. 51) where the period under section 216(6) or (7) or 217 of that Act
(whichever is applicable) within which the person is required to deliver the
account expires after six months from the day on which this Act is passed.
5
(6)
Subsection (2)(b) above has effect—
(a)
in relation to a failure by any person to deliver an account under section
216 of the Inheritance Tax Act 1984 where the period under section
216(6) or (7) of that Act (whichever is applicable) within which the
person is required to deliver the account expires after the day on which
10
this Act is passed; and
(b)
in relation to such a failure to deliver such an account where that period
expires on or before the day on which this Act is passed, as if, in the
subsection (4A) inserted in section 245 of that Act by subsection (2)(b)
above, for the words “anniversary of the end of the period given by
15
section 216(6) or (7) (whichever is applicable)” there were substituted
“end of the period of twelve months beginning with the day on which
the Finance Act 2004 is passed”.
(7)
Subsection (3)(a) above has effect—
(a)
in relation to a failure to comply with the requirements of section 218A
20
of the Inheritance Tax Act 1984 (c. 51) where the period of six months
referred to in subsection (1) of that section expires after the day on
which this Act is passed; and
(b)
in relation to such a failure to comply with those requirements where
that period expires on or before the day on which this Act is passed, as
25
if, in the subsection(1B) inserted in section 245A of that Act by
subsection (3)(a) above, for the words “anniversary of the end of the
period of six months referred to in section 218A(1)” there were
substituted “end of the period of twelve months beginning with the day
on which the Finance Act 2004 is passed”.
30
(8)
Subsection (3)(b) above has effect in relation to a failure to comply with the
requirements of section 218A of the Inheritance Tax Act 1984 where the period
of six months referred to in subsection (1) of that section expires after the day
on which this Act is passed.
(9)
Subsection (4) above has effect in relation to incorrect accounts, information or
35
documents delivered, furnished or produced after the day on which this Act is
passed.
Stamp duty land tax and stamp duty
290
Miscellaneous amendments
Schedule 37 to this Act, which makes amendments to Part 4 (stamp duty land
40
tax) and Part 5 (stamp duty) of the Finance Act 2003, has effect.