Finance Bill

House of Commons

Session 2006 - 07
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Finance Bill

Finance Bill
Part 5 — SDLT, stamp duty and SDRT
53

78
Certain transfers of school land
(1)
In Chapter 7 of Part 2 of the School Standards and Framework Act 1998 (c. 31)
(“the 1998 Act”) (new framework for maintained schools), omit sections 79 and
79A (no stamp duty or SDLT payable in respect of certain transfers).
(2)
The repeal of—
5
(a)
section 79A of the 1998 Act, and
(b)
section 79 of that Act as it applies for the purposes of section 79A,

has effect in relation to any land transaction of which the effective date is on or
after the day on which this Act is passed.
(3)
Subject to that, the repeal of section 79 of the 1998 Act has effect in relation to
10
any instrument executed on or after that day.
SDLT: administration
79
Payment of tax
(1)
FA 2003 is amended as follows.
(2)
In section 76(3) (payment to accompany land transaction return), omit
15
paragraph (b).
(3)
In section 80(2) (adjustment for change of circumstance: payment to
accompany return), for paragraph (d) substitute—
“(d)
the tax or additional tax payable must be paid not later than the
filing date for the return.”
20
(4)
In section 81 (withdrawal of relief: further return)—
(a)
in subsection (2), omit paragraph (b), and
(b)
after that subsection insert—
“(2A)
Tax payable must be paid not later than the filing date for the
return.”
25
(5)
In section 81A(1) (later linked transaction: return), for paragraph (d)
substitute—
“(d)
the tax or additional tax payable must be paid not later than the
filing date for the return.”
(6)
In section 86 (payment of tax)—
30
(a)
in subsection (1), for “at the same time that a land transaction return is
made in respect of the transaction.” substitute “not later than the filing
date for the land transaction return relating to the transaction.”, and
(b)
in subsection (2), for “at the same time that a return is made in respect
of the withdrawal” substitute “not later than the filing date for the
35
return relating to the withdrawal”.
(7)
In paragraph 2 of Schedule 10 (payment to accompany land transaction
return), omit sub-paragraph (2)(b).
(8)
For each of paragraphs 3(3)(d), 4(3)(d) and 8(3)(d) of Schedule 17A (leases)
substitute—
40
“(d)
the tax or additional tax payable must be paid not later than
the filing date for the return.”

Finance Bill
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(9)
The amendments made by this section have effect as follows—
(a)
the amendment made by subsection (2) has effect in relation to land
transactions with an effective date on or after the day on which this Act
is passed,
(b)
the amendment made by subsection (3) has effect in relation to returns
5
where the event as a result of which the return is required occurs on or
after the day on which this Act is passed,
(c)
the amendment made by subsection (4) has effect in relation to returns
where the disqualifying event occurs on or after the day on which this
Act is passed,
10
(d)
the amendment made by subsection (5) has effect in relation to returns
where the effective date of the later transaction is on or after the day on
which this Act is passed,
(e)
the amendment made by subsection (6) has effect in relation to land
transactions with an effective date on or after the day on which this Act
15
is passed,
(f)
the amendment made by subsection (7) has effect in relation to land
transactions with an effective date on or after the day on which this Act
is passed, and
(g)
the amendment made by subsection (8) has effect in respect of
20
requirements to deliver a return or further return which arise on or
after the day on which this Act is passed.
80
Self-certificate declarations
(1)
Schedule 11 to FA 2003 (self-certificates) is amended as follows.
(2)
After paragraph 2 insert—
25
“Declaration by Agent
2A    (1)
The requirement in paragraph 2(1)(c) shall be deemed to be met
where—
(a)
the purchaser (or each of them) authorises an agent to
complete a self-certificate,
30
(b)
the purchaser (or each of them) makes a declaration that,
with the exception of the effective date, the information
provided in the self-certificate is to the best of the purchaser’s
knowledge correct and complete, and
(c)
the self-certificate includes a declaration by the agent that the
35
effective date provided in the self-certificate is to the best of
the agent’s knowledge correct.
      (2)
Sub-paragraph (1) applies only where the self-certificate is in a form
specified by Her Majesty’s Revenue and Customs for the purposes of
that sub-paragraph.
40
      (3)
Nothing in this paragraph affects the liability of the purchaser (or
each of them) under this Part of this Act.
Declaration by the relevant Official Solicitor
2B    (1)
The requirement in paragraph 2(1)(c) shall be deemed to be met
where—
45

Finance Bill
Part 6 — Investigation, administration etc
55

(a)
the purchaser (or any of them) is a person under a disability,
(b)
the Official Solicitor is acting for the purchaser (or any of
them), and
(c)
the self-certificate includes a declaration by the Official
Solicitor that the self-certificate is correct and complete to the
5
best of the Official Solicitor’s knowledge.
      (2)
Sub-paragraph (1) applies only where the self-certificate is in a form
specified by Her Majesty’s Revenue and Customs for the purposes of
that sub-paragraph.
      (3)
Nothing in this paragraph affects the liability of the purchaser (or
10
each of them) under this Part of this Act.
      (4)
In this paragraph “the Official Solicitor” means the Official Solicitor
to the Supreme Court of England and Wales or the Official Solicitor
to the Supreme Court of Northern Ireland.”
(3)
In paragraph 3(1), for “person” substitute “purchaser”.
15
(4)
The amendments made by this section have effect in relation to transactions
with an effective date on or after the day on which this Act is passed.
Part 6
Investigation, administration etc
Investigation etc
20
81
Criminal investigations: powers of Revenue and Customs
(1)
Section 114 of the Police and Criminal Evidence Act 1984 (c. 60) (application of
Act to customs and excise) is amended as follows.
(2)
In paragraph (a) of subsection (2)—
(a)
for “investigations conducted by officers of Customs and Excise of
25
offences which relate to assigned matters, as defined in section 1 of the
Customs and Excise Management Act 1979,” substitute “investigations
conducted by officers of Revenue and Customs”, and
(b)
for “persons detained by officers of Customs and Excise;” substitute
“persons detained by officers of Revenue and Customs;”.
30
(3)
In the opening words of paragraph (b) of that subsection, for “investigations of
offences conducted by officers of Customs and Excise” substitute
“investigations of offences conducted by officers of Revenue and Customs”.
(4)
In sub-paragraph (i) of that paragraph, for “section” substitute “sections”.
(5)
In the section 14A deemed to be inserted by that sub-paragraph—
35
(a)
for “and which relates to an assigned matter, as defined in section 1 of
the Customs and Excise Management Act 1979,” substitute “and which
relates to a matter in relation to which Her Majesty’s Revenue and
Customs have functions,” and
(b)
in the heading, for “Customs and Excise” substitute “Revenue and
40
Customs”.

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(6)
After that section insert—
“14B
Revenue and Customs: restriction on other powers to apply for
production of documents
(1)
An officer of Revenue and Customs may make an application for the
delivery of, or access to, documents under a provision specified in
5
subsection (3) only if the condition in subsection (2) is satisfied.
(2)
The condition is that the officer thinks that an application under
Schedule 1 would not succeed because the material required does not
consist of or include special procedure material.
(3)
The provisions are—
10
(a)
section 20BA and Schedule 1AA of the Taxes Management Act
1970 (serious tax fraud);
(b)
paragraph 11 of Schedule 11 to the Value Added Tax Act 1994
(VAT);
(c)
paragraph 4A of Schedule 7 to the Finance Act 1994 (insurance
15
premium tax);
(d)
paragraph 7 of Schedule 5 to the Finance Act 1996 (landfill tax);
(e)
paragraph 131 of Schedule 6 to the Finance Act 2000 (climate
change levy);
(f)
paragraph 8 of Schedule 7 to the Finance Act 2001 (aggregates
20
levy);
(g)
Part 6 of Schedule 13 to the Finance Act 2003 (stamp duty land
tax).”
(7)
In paragraph (c) of subsection (2)—
(a)
for “customs detention” substitute “Revenue and Customs detention”,
25
and
(b)
for “an officer of Customs and Excise” substitute “an officer of Revenue
and Customs”.
(8)
After that paragraph (c) insert—
“(d)
that where an officer of Revenue and Customs searches
30
premises in reliance on a warrant under section 8 of, or
paragraph 12 of Schedule 1 to, this Act (as applied by an order
under this subsection) the officer shall have the power to search
persons found on the premises—
(i)
in such cases and circumstances as are specified in the
35
order, and
(ii)
subject to any conditions specified in the order; and
(e)
that powers and functions conferred by a provision of this Act
(as applied by an order under this subsection) may be exercised
only by officers of Revenue and Customs acting with the
40
authority (which may be general or specific) of the
Commissioners for Her Majesty’s Revenue and Customs.”
(9)
After that subsection insert—
“(2A)
A certificate of the Commissioners that an officer of Revenue and
Customs had authority under subsection (2)(e) to exercise a power or
45
function conferred by a provision of this Act shall be conclusive
evidence of that fact.”

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(10)
For subsection (3) substitute—
“(3)
An order under subsection (2)—
(a)
may make provision that applies generally or only in specified
cases or circumstances,
(b)
may make different provision for different cases or
5
circumstances,
(c)
may, in modifying a provision, in particular impose conditions
on the exercise of a function, and
(d)
shall not be taken to limit a power under section 164 of the
Customs and Excise Management Act 1979.”
10
(11)
The heading of section 114 accordingly becomes “Application of Act to
Revenue and Customs”.
82
Northern Ireland criminal investigations
(1)
Article 85 of the Police and Criminal Evidence (Northern Ireland) Order 1989
(S.I. 1989/1341 (N.I. 12)) (application of Order to customs and excise) is
15
amended as follows.
(2)
In sub-paragraph (a) of paragraph (1)—
(a)
for “investigations conducted by officers of Customs and Excise of
offences which relate to assigned matters, as defined in section 1 of the
Customs and Excise Management Act 1979,” substitute “investigations
20
conducted by officers of Revenue and Customs”, and
(b)
for “persons detained by officers of Customs and Excise;” substitute
“persons detained by officers of Revenue and Customs;”.
(3)
In the opening words of sub-paragraph (b) of that paragraph, for
“investigations of offences conducted by officers of Customs and Excise”
25
substitute “investigations of offences conducted by officers of Revenue and
Customs”.
(4)
In paragraph (i) of that sub-paragraph, for “Article” substitute “Articles”.
(5)
In the Article 16A deemed to be inserted by that paragraph—
(a)
for “and which relates to an assigned matter, as defined in section 1 of
30
the Customs and Excise Management Act 1979,” substitute “and which
relates to a matter in relation to which Her Majesty’s Revenue and
Customs have functions,” and
(b)
in the heading, for “Customs and Excise” substitute “Revenue and
Customs”.
35
(6)
After that Article insert—
“16B
Revenue and Customs: restriction on other powers to apply for
production of documents
(1)
An officer of Revenue and Customs may make an application for the
delivery of, or access to, documents under a provision specified in
40
paragraph (3) only if the condition in paragraph (2) is satisfied.
(2)
The condition is that the officer thinks that an application under
Schedule 1 would not succeed because the material required does not
consist of or include special procedure material.

Finance Bill
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(3)
The provisions are—
(a)
section 20BA and Schedule 1AA of the Taxes Management Act
1970 (serious tax fraud);
(b)
paragraph 11 of Schedule 11 to the Value Added Tax Act 1994
(VAT);
5
(c)
paragraph 4A of Schedule 7 to the Finance Act 1994 (insurance
premium tax);
(d)
paragraph 7 of Schedule 5 to the Finance Act 1996 (landfill tax);
(e)
paragraph 131 of Schedule 6 to the Finance Act 2000 (climate
change levy);
10
(f)
paragraph 8 of Schedule 7 to the Finance Act 2001 (aggregates
levy);
(g)
Part 6 of Schedule 13 to the Finance Act 2003 (stamp duty land
tax).”
(7)
After sub-paragraph (b) of paragraph (1) insert—
15
“(c)
that where an officer of Revenue and Customs searches
premises in reliance on a warrant under Article 10 of, or
paragraph 9 of Schedule 1 to, this Order (as applied by an order
under this paragraph) the officer shall have the power to search
persons found on the premises—
20
(i)
in such cases and circumstances as are specified in the
order, and
(ii)
subject to any conditions specified in the order; and
(d)
that powers and functions conferred by a provision of this
Order (as applied by an order under this paragraph) may be
25
exercised only by officers of Revenue and Customs acting with
the authority (which may be general or specific) of the
Commissioners for Her Majesty’s Revenue and Customs.”
(8)
After that paragraph insert—
“(1A)
A certificate of the Commissioners that an officer of Revenue and
30
Customs had authority under paragraph (1)(d) to exercise a power or
function conferred by a provision of this Order shall be conclusive
evidence of that fact.”
(9)
For paragraph (2) substitute—
“(2)
An order under paragraph (1)—
35
(a)
may, in modifying a provision, in particular impose conditions
on the exercise of a function, and
(b)
shall not be taken to limit a power under section 164 of the
Customs and Excise Management Act 1979.”
(10)
The heading of Article 85 accordingly becomes “Application of Order to
40
Revenue and Customs”.
83
Sections 81 and 82: supplementary
(1)
In Schedule 2 to CRCA 2005 (restrictions on the exercise of functions), omit—
(a)
paragraph 7 (Police and Criminal Evidence Act 1984 (c. 60), and
(b)
paragraph 9 (Police and Criminal Evidence (Northern Ireland) Order
45
1989 (S.I. 1989/1341 (N.I. 12))).

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(2)
Nothing in section 6 or 7 of CRCA 2005 (initial functions) restricts the functions
in connection with which officers of Revenue and Customs may exercise a
power under—
(a)
the Police and Criminal Evidence Act 1984 (c. 60) by virtue of section
114 of that Act (as amended by section 81 above), or
5
(b)
the Police and Criminal Evidence (Northern Ireland) Order 1989 (S.I.
1989/1341 (N.I. 12)) by virtue of Article 85 of that Order (as amended
by section 82 above).
(3)
But neither an order under section 114 of the Police and Criminal Evidence Act
1984 nor an order under Article 85 of the Police and Criminal Evidence
10
(Northern Ireland) Order 1989 has effect in relation to a matter specified in
section 54(4)(b) or (f) of, or in paragraphs 3, 7, 10, 13 to 15, 19 or 24 to 29 of
Schedule 1 to, CRCA 2005 (former Inland Revenue matters).
(4)
Schedule 22 contains amendments and repeals consequential on extension of
police powers to Revenue and Customs.
15
(5)
Sections 81 and 82 and this section come into force in accordance with
provision made by the Treasury by order.
(6)
The power to make an order under subsection (5) is exercisable by statutory
instrument.
84
Criminal investigations: Scotland
20
Schedule 23 contains provision for Scotland about the investigation of offences
by Her Majesty’s Revenue and Customs.
85
Search warrants
In section 8 of the Police and Criminal Evidence Act 1984, after subsection (6)
insert—
25
“(7)
Section 4 of the Summary Jurisdiction (Process) Act 1881 (execution of
process of English courts in Scotland) shall apply to a warrant issued on
the application of an officer of Revenue and Customs under this section
by virtue of section 114 below.”
86
Cross-border exercise of powers
30
(1)
This section relates to the Criminal Justice and Public Order Act 1994 (c. 33).
(2)
Sections 136 to 139 (execution of warrants and powers of arrest and search)
shall apply to an officer of Revenue and Customs as they apply to a constable;
and for that purpose—
(a)
a reference to a constable (including a reference to a constable of a
35
police force in England and Wales, a constable of a police force in
Scotland or a constable of a police force in Northern Ireland) shall be
treated as a reference to an officer of Revenue and Customs, and
(b)
a reference to a police station, or a designated police station, includes a
reference to an office of Revenue and Customs or (in England and
40
Wales and Northern Ireland) a designated office of Revenue and
Customs.
(3)
In the application of section 138 to an officer of Revenue and Customs—