|
| |
|
(6) | In section 204 of FA 2003 (electronic payment), insert at the end— |
| |
“(13) | Regulations under section 94(1) of the Finance Act 2007 (payment by |
| |
cheque) may, in particular, provide for a payment which is made by |
| |
cheque in contravention of regulations under this section to be treated |
| |
as made when the cheque clears, as defined in the regulations under |
| 5 |
| |
(7) | In section 70A of TMA 1970 (payments by cheque), insert at the end— |
| |
“(3) | This section is subject to regulations under section 94(1) of the Finance |
| |
Act 2007 (payment by cheque).” |
| |
(8) | In VATA 1994, after section 58A insert— |
| 10 |
| |
Regulations under section 94(1) of the Finance Act 2007 (payment by |
| |
cheque) may, in particular, provide for a payment which is made by |
| |
cheque in contravention of regulations under section 25(1) above to be |
| |
treated as made when the cheque clears, as defined in the regulations |
| 15 |
under section 94(1) of that Act.” |
| |
| |
(1) | In section 9A(2)(a) of TMA 1970 (period during which HMRC can open |
| |
enquiry into return), for “after the filing date;” substitute “after the day on |
| |
which the return was delivered;”. |
| 20 |
(2) | In section 12AC(2)(a) of TMA 1970 (period during which HMRC can open |
| |
enquiry into partnership return), for “after the filing date;” substitute “after the |
| |
day on which the return was delivered;”. |
| |
(3) | In paragraph 24(2) of Schedule 18 to FA 1998 (period during which HMRC can |
| |
open enquiry into company tax return), for “from the filing date.” substitute |
| 25 |
“from the day on which the return was delivered (subject to sub-paragraph |
| |
| |
(4) | In paragraph 24 of that Schedule, insert at the end— |
| |
“(6) | In the case of a company which is a member of a group other than a |
| |
small group, the 12-month period in sub-paragraph (2) shall start not |
| 30 |
from the day on which the return was delivered but from the filing |
| |
| |
(7) | In sub-paragraph (6) “group” and “small group” have the same |
| |
meaning as in sections 383(2) and 474(1) of the Companies Act 2006 |
| |
(or, until their commencement, as in the provisions that they |
| 35 |
| |
(5) | The amendments made by subsections (1) and (2) apply to returns which relate |
| |
to the tax year 2007-08 or a later tax year. |
| |
(6) | The amendments made by subsections (3) and (4) apply to returns which relate |
| |
to accounting periods ending after 31st March 2008. |
| 40 |
| |
(1) | Schedule 24 contains provisions imposing penalties on taxpayers who— |
| |
|
| |
|
| |
|
(a) | make errors in certain documents sent to HMRC, or |
| |
(b) | unreasonably fail to report errors in assessments by HMRC. |
| |
(2) | That Schedule comes into force in accordance with provision made by the |
| |
| |
| 5 |
(a) | may commence a provision generally or only for specified purposes, |
| |
(b) | may make different provision for different purposes, and |
| |
(c) | may include incidental, consequential or transitional provision. |
| |
(4) | The power to make an order is exercisable by statutory instrument. |
| |
| 10 |
| |
Value added tax and insurance premium tax |
| |
97 | VAT: joint and several liability of traders in supply chain where tax unpaid |
| |
In section 77A of VATA 1994 (joint and several liability of traders in supply |
| |
chain where tax unpaid), for subsection (9) substitute— |
| 15 |
“(9) | The Treasury may by order amend subsection (1) above. |
| |
(9A) | The Treasury may by order amend this section in order to extend or |
| |
otherwise alter the circumstances in which a person shall be presumed |
| |
to have reasonable grounds for suspecting matters to be as mentioned |
| |
in subsection (2)(b) above. |
| 20 |
(9B) | Any order under this section may make such incidental, supplemental, |
| |
consequential or transitional provision as the Treasury think fit.” |
| |
98 | VAT: non-business use etc of business goods |
| |
(1) | Schedule 4 to VATA 1994 (matters to be treated as supply of goods or services) |
| |
| 25 |
(2) | In paragraph 5 (non-business use etc of business goods), omit sub-paragraph |
| |
(4A) (exception to rule in case of interests in land and buildings etc that non- |
| |
business use of business assets treated as supply of services). |
| |
(3) | In paragraph 9 (application of paragraphs 5 to 8 where land forms part of assets |
| |
of business), insert at the end— |
| 30 |
“(4) | In this paragraph “grant” includes surrender.” |
| |
(4) | Paragraph 7 of Schedule 6 to VATA 1994 (valuation of supply of services |
| |
otherwise than for consideration by virtue of paragraph 5(4) of Schedule 4 etc) |
| |
| |
(5) | The existing provision becomes sub-paragraph (1) and after that sub- |
| 35 |
| |
“(2) | Regulations may, in relation to a supply of services by virtue of |
| |
paragraph 5(4) of Schedule 4 (but otherwise than for a |
| |
|
| |
|
| |
|
consideration), make provision for determining how the full cost to |
| |
the taxable person of providing the services is to be calculated. |
| |
(3) | The regulations may, in particular, make provision for the |
| |
calculation to be made by reference to any prescribed period. |
| |
(4) | The regulations may make— |
| 5 |
(a) | different provision for different circumstances; |
| |
(b) | such incidental, supplementary, consequential or transitional |
| |
provision as the Commissioners think fit.” |
| |
(6) | The amendment made by subsection (2) comes into force on 1st September |
| |
| 10 |
(7) | The amendment made by subsection (3) has effect in relation to surrenders on |
| |
or after 21st March 2007. |
| |
99 | VAT: transfers of going concerns |
| |
(1) | Section 49 of VATA 1994 (transfers of going concern) is amended as follows. |
| |
(2) | In subsection (1) (transferor’s supplies treated as transferee’s supplies for |
| 15 |
purposes of registration and transferor’s records to be kept by transferee after |
| |
| |
(a) | after “Where a business” insert “, or part of a business,”, |
| |
(b) | after “on the business” insert “or part of the business”, and |
| |
(c) | omit paragraph (b) (together with the “and” before it). |
| 20 |
(3) | In subsection (2) (regulations for securing continuity of Act in case of transfers |
| |
of going concerns), after “a business” insert “, or part of a business,”. |
| |
(4) | After that subsection insert— |
| |
“(2A) | Regulations under subsection (2) above may, in particular, provide for |
| |
the duties under this Act of the transferor to preserve records relating |
| 25 |
to the business or part of the business for any period after the transfer |
| |
to become duties of the transferee unless the Commissioners, at the |
| |
request of the transferor, otherwise direct.” |
| |
(5) | In subsection (3) (provision which may be made by regulations), in paragraph |
| |
(a), after “the transferor” insert “(other than the duties mentioned in subsection |
| 30 |
| |
(6) | After that subsection insert— |
| |
“(4) | Subsection (5) below applies where— |
| |
(a) | a business, or part of a business, carried on by a taxable person |
| |
is transferred to another person as a going concern, and |
| 35 |
(b) | the transferor continues to be required under this Act to |
| |
preserve for any period after the transfer any records relating to |
| |
the business or part of the business. |
| |
(5) | So far as is necessary for the purpose of complying with the transferee’s |
| |
duties under this Act, the transferee (“E”) may require the transferor— |
| 40 |
(a) | to give to E, within such time and in such form as E may |
| |
reasonably require, such information contained in the records |
| |
as E may reasonably specify, |
| |
|
| |
|
| |
|
(b) | to give to E, within such time and in such form as E may |
| |
reasonably require, such copies of documents forming part of |
| |
the records as E may reasonably specify, and |
| |
(c) | to make the records available for E’s inspection at such time and |
| |
place as E may reasonably require (and permit E to take copies |
| 5 |
of, or make extracts from, them). |
| |
(6) | Where a business, or part of a business, carried on by a taxable person |
| |
is transferred to another person as a going concern, the Commissioners |
| |
may disclose to the transferee any information relating to the business |
| |
when it was carried on by the transferor for the purpose of enabling the |
| 10 |
transferee to comply with the transferee’s duties under this Act.” |
| |
(7) | In section 94(6) of VATA 1994 (meaning of “business” etc)— |
| |
(a) | after “a business” insert “, or part of a business,”, and |
| |
(b) | for “its assets or liabilities” substitute “the assets or liabilities of the |
| |
business or part of the business”. |
| 15 |
(8) | In paragraph 1(2) of Schedule 1 to that Act (registration in respect of taxable |
| |
supplies), after “Where a business” insert “, or part of a business,”. |
| |
(9) | In paragraph 8(2)(b) of Schedule 4 to that Act (matters to be treated as supply |
| |
of goods or services), after “a business” insert “, or part of a business,”. |
| |
(10) | The amendments made by this section have effect in relation to transfers |
| 20 |
pursuant to contracts entered into on or after 1st September 2007. |
| |
100 | IPT: meaning of “premium” |
| |
(1) | In section 72 of FA 1994 (interpretation: “premium”), after subsection (1A) |
| |
| |
| 25 |
(a) | an amount is charged (to the insured or any other person) in |
| |
respect of the acquisition of a right (whether of the insured or |
| |
any other person) to require the insurer to provide, or offer to |
| |
provide, any of the cover included in a taxable insurance |
| |
| 30 |
(b) | any payment in respect of that amount is not regarded as a |
| |
payment received under that contract by the insurer by virtue |
| |
of subsection (1A) above, |
| |
| the payment is to be regarded as a payment received under that |
| |
contract by the insurer unless it is chargeable to tax at the higher rate by |
| 35 |
virtue of section 52A above.” |
| |
(2) | The amendment made by subsection (1) has effect in relation to amounts |
| |
charged on or after 22nd March 2007. |
| |
| |
101 | Abolition of PRT for fields recommissioned after earlier decommissioning |
| 40 |
(1) | Section 185 of FA 1993 (abolition of PRT for oil fields with development |
| |
consents on or after 16th March 1993) is amended as follows. |
| |
|
| |
|
| |
|
(2) | In subsection (1) (meaning of “non-taxable field” and “taxable field”), after |
| |
paragraph (b) insert “or an oil field which does not meet the conditions in |
| |
paragraphs (a) and (b) above but which does meet the conditions in subsection |
| |
| |
(3) | After that subsection insert— |
| 5 |
“(1A) | An oil field meets the conditions in this subsection if— |
| |
(a) | the Secretary of State has at any time approved one or more |
| |
abandonment programmes under Part 4 of the Petroleum Act |
| |
1998 (or Part 1 of the Petroleum Act 1987) in relation to all assets |
| |
of the field which are relevant assets; |
| 10 |
(b) | those programmes have been carried out to the satisfaction of |
| |
| |
(c) | a development decision is made in relation to the field; and |
| |
(d) | that decision is made on or after 16th March 1993 and after those |
| |
programmes have been so carried out. |
| 15 |
(1B) | For the purposes of subsection (1A)(a) above, an asset is a relevant asset |
| |
| |
(a) | it has at any time been a qualifying asset (within the meaning of |
| |
the 1983 Act) in relation to any participator in the field; and |
| |
(b) | it has at any time been used for the purpose of winning oil from |
| 20 |
| |
(1C) | For the purposes of subsection (1A)(c) and (d) above, a development |
| |
decision is made in relation to an oil field when— |
| |
(a) | consent for development is granted to a licensee by the |
| |
Secretary of State in respect of the whole or part of the field; or |
| 25 |
(b) | a programme of development is served on a licensee or |
| |
approved by the Secretary of State for the whole or part of the |
| |
| |
(4) | In subsection (7) (meaning of “development” etc), for “subsections (1) and (2)” |
| |
substitute “this section”. |
| 30 |
(5) | An oil field which meets the conditions in subsection (1A) of section 185 of FA |
| |
1993 (as inserted by subsection (3) above) becomes a non-taxable field for the |
| |
purposes of any enactment relating to petroleum revenue tax— |
| |
(a) | in any case where the development decision is made before 1st July |
| |
| 35 |
(b) | in any other case, on the date on which the development decision is |
| |
| |
102 | Tax-exempt tariffing receipts |
| |
(1) | Section 6A of the Oil Taxation Act 1983 (c. 56) (tax-exempt tariffing receipts) is |
| |
| 40 |
(2) | In subsection (4), insert at the end “or |
| |
(c) | use in relation to a UK recommissioned field (see subsection (5) |
| |
below) or oil won from such a field.” |
| |
(3) | In subsection (5), insert at the end— |
| |
““UK recommissioned field” means any oil field which is not a |
| 45 |
new field or qualifying existing field but as respects which the |
| |
|
| |
|
| |
|
conditions in section 185(1A) of the Finance Act 1993 are |
| |
satisfied (fields recommissioned after earlier |
| |
| |
(4) | The amendments made by this section are deemed to have come into force on |
| |
| 5 |
103 | Allowance of unrelievable loss from abandoned field |
| |
(1) | In section 6 of the Oil Taxation Act 1975 (c. 22) (allowance of unrelievable loss |
| |
from abandoned field), after subsection (4) insert— |
| |
“(4A) | For the purposes of this section and Schedule 8 to this Act, the winning |
| |
of oil from an oil field shall not be regarded as having permanently |
| 10 |
ceased until all the oil wells in the field have been permanently |
| |
| |
(2) | The amendment made by subsection (1) is deemed to have come into force on |
| |
| |
Other miscellaneous measures |
| 15 |
104 | Amendments connected with Gambling Act 2005 |
| |
Schedule 25 contains amendments that are consequential on, or otherwise |
| |
connected with, the Gambling Act 2005 (c. 19). |
| |
| |
(1) | In section 5 of VERA 1994 (exempt vehicles), after subsection (2) insert— |
| 20 |
“(3) | The Secretary of State may by order amend Schedule 2 in order to make |
| |
provision about the descriptions of— |
| |
| |
(b) | vehicles used for purposes relating to agriculture, horticulture |
| |
| 25 |
| that are to be exempt vehicles. |
| |
(4) | An order under subsection (3) may in particular repeal any of |
| |
paragraphs 20A to 20D of Schedule 2.” |
| |
(2) | In section 60(3) of that Act (orders subject to affirmative procedure), after |
| |
“under” insert “section 5(3) or”. |
| 30 |
106 | Limitation period in old actions for mistake of law relating to direct tax |
| |
(1) | Section 32(1)(c) of the Limitation Act 1980 (c. 58) (extended period for bringing |
| |
action in case of mistake) does not apply in relation to any action brought |
| |
before 8th September 2003 for relief from the consequences of a mistake of law |
| |
relating to a taxation matter under the care and management of the |
| 35 |
Commissioners of Inland Revenue. |
| |
(2) | Subsection (1) has effect regardless of how the grounds on which the action |
| |
was brought were expressed and of whether it was also brought otherwise |
| |
| |
|
| |
|
| |
|
(3) | But subsection (1) does not have effect in relation to an action, or so much of an |
| |
action as relates to a cause of action, if— |
| |
(a) | the action, or cause of action, has been the subject of a judgment of the |
| |
House of Lords given before 6th December 2006 as to the application of |
| |
section 32(1)(c) in relation to such relief, or |
| 5 |
(b) | the parties to the action are, in accordance with a group litigation order, |
| |
bound in relation to the action, or cause of action, by a judgment of the |
| |
House of Lords in another action given before that date as to the |
| |
application of section 32(1)(c) in relation to such relief. |
| |
(4) | If the judgment of any court was given on or after 6th December 2006 but |
| 10 |
before the day on which this Act is passed, the judgment is to be taken to have |
| |
been what it would have been had subsections (1) to (3) been in force at all |
| |
times since the action was brought (and any defence of limitation which would |
| |
have been available had been raised). |
| |
(5) | And any payment made to satisfy a liability under the judgment which (in |
| 15 |
consequence of subsection (4)) is to be taken not to have been imposed is |
| |
repayable (with interest from the date of the payment). |
| |
| |
“group litigation order” means an order of a court providing for the case |
| |
management of actions which give rise to common or related issues of |
| 20 |
| |
“judgment” includes order (and “given” includes made). |
| |
107 | Disclosure of tax avoidance schemes |
| |
(1) | Part 7 of FA 2004 (disclosure of tax avoidance schemes) is amended as follows. |
| |
(2) | After section 306 insert— |
| 25 |
“306A | Doubt as to notifiability |
| |
(1) | HMRC may apply to the Special Commissioners for an order that— |
| |
(a) | a proposal is to be treated as notifiable, or |
| |
(b) | arrangements are to be treated as notifiable. |
| |
(2) | An application must specify— |
| 30 |
(a) | the proposal or arrangements in respect of which the order is |
| |
| |
| |
(3) | On an application the Special Commissioners may make the order only |
| |
| 35 |
(a) | have taken all reasonable steps to establish whether the |
| |
proposal or arrangements are notifiable, and |
| |
(b) | have reasonable grounds for suspecting that the proposal or |
| |
arrangements may be notifiable. |
| |
(4) | Reasonable steps under subsection (3)(a) may (but need not) include |
| 40 |
taking action under section 313A or 313B. |
| |
(5) | Grounds for suspicion under subsection (3)(b) may include— |
| |
(a) | the fact that the relevant arrangements fall within a description |
| |
prescribed under section 306(1)(a); |
| |
|
| |
|