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Finance Bill
Schedule 2 — Climate change levy: reduced-rate supplies etc

89

 

7          

For paragraph 44 substitute—

“44   (1)  

For the purposes of this Schedule, a taxable supply is a reduced-

rate supply if—

(a)   

the taxable commodity is supplied to a facility specified in

a certificate given by the Secretary of State to the

5

Commissioners as a facility which is to be taken as being

covered by a climate change agreement for a period

specified in the certificate, and

(b)   

the supply is made at a time falling in that period.

      (2)  

Sub-paragraph (1) has effect subject to paragraph 45.

10

      (3)  

The Commissioners may by regulations make provision for giving

effect to sub-paragraph (1).

      (4)  

Regulations under this paragraph may, in particular, include

provision for determining whether any taxable commodity is

supplied to a facility.

15

      (5)  

The provision that may be made by virtue of sub-paragraph (4)

includes, in particular, provision for a taxable commodity of any

description specified in the regulations to be taken as supplied to

a facility only if the commodity is delivered to the facility.”

8     (1)  

Paragraph 45 (reduced-rate supplies: variation of notices under paragraph

20

44) is amended as follows.

      (2)  

Omit sub-paragraphs (2) to (4).

      (3)  

In sub-paragraph (5)—

(a)   

in paragraph (b), for “the variation notice is published” substitute

“the variation certificate is given”, and

25

(b)   

for the words following that paragraph substitute “the original

certificate has effect as if the facility had never been specified in it”.

      (4)  

In sub-paragraph (6)—

(a)   

in paragraph (b), for “the variation notice is published” substitute

“the variation certificate is given”, and

30

(b)   

for the words following that paragraph substitute “the original

certificate has effect as if the last day of the period specified for the

facility in the original certificate were the day on which the variation

certificate is given”.

      (5)  

In sub-paragraph (7), for the words from “the original notice” to the end

35

substitute “the original certificate has effect as if the last day of the period

specified for the facility in the original certificate were the later of—

(a)   

the day on which the variation certificate is given, and

(b)   

the day specified in the variation certificate.”

      (6)  

The italic heading before that paragraph accordingly becomes “Reduced-rate

40

supplies: variation of certificates under paragraph 44”.

9          

After that paragraph insert—

“Reduced-rate supplies: deemed supply

45A   (1)  

This paragraph applies where—

 

 

Finance Bill
Schedule 2 — Climate change levy: reduced-rate supplies etc

90

 

(a)   

a taxable supply has been made to any person (“the

recipient”),

(b)   

the supply was made on the basis that it was a reduced-

rate supply, and

(c)   

it is later determined that the supply was not a reduced-

5

rate supply.

      (2)  

For the purposes of this Schedule—

(a)   

the recipient is deemed to make a taxable supply to itself of

the taxable commodity, and

(b)   

the amount payable by way of levy on that deemed supply

10

is 80 per cent. of the amount that would be payable if the

supply were not a reduced-rate supply.”

10         

In paragraph 147 (interpretation), in the definition of “reduced-rate

supply”—

(a)   

for “44(3)” substitute “44(1)”, and

15

(b)   

for “44(4)” substitute “44(2)”.

Notifications and certificates

11    (1)  

Paragraph 11 (exemption: supply not for burning in UK) is amended as

follows.

      (2)  

In sub-paragraph (1)—

20

(a)   

omit “has, before the supply is made, notified the supplier”, and

(b)   

omit “that he” (in both places).

      (3)  

In sub-paragraph (3)—

(a)   

omit “has, before the supply is made, notified the supplier that”, and

(b)   

omit “he”.

25

12    (1)  

Paragraph 101 (civil penalties: incorrect notifications etc) is amended as

follows.

      (2)  

Omit sub-paragraph (1).

      (3)  

In sub-paragraph (2)—

(a)   

after “paragraphs” insert “11,” and

30

(b)   

after “the certificate is” insert “(or becomes)”.

      (4)  

In sub-paragraph (3)—

(a)   

for “sub-paragraph (1) or (2)” substitute “this paragraph”, and

(b)   

omit “notification or”.

      (5)  

In sub-paragraph (4)—

35

(a)   

for “notification or certificate” substitute “certificate (or not revoking

or varying it)”,

(b)   

for “the person who gave it” substitute “the person concerned”, and

(c)   

for the words from “there is” to the end substitute “the person has a

reasonable excuse”.

40

      (6)  

In sub-paragraph (5)—

(a)   

for “notification or certificate” substitute “certificate (or not revoking

or varying it)”, and

 

 

Finance Bill
Schedule 3 — Managed service companies
Part 1 — Amendments of ITEPA 2003

91

 

(b)   

for “the giving of the notification or certificate” substitute “that”.

      (7)  

The italic heading before paragraph 101 accordingly becomes “Civil penalties:

incorrect certificates”.

Commencement

13    (1)  

Paragraphs 2 to 10 come into force on such day as the Treasury may by order

5

made by statutory instrument appoint.

      (2)  

But any power to make regulations under any provision inserted or

amended by any of those paragraphs may be exercised at any time after this

Act is passed.

      (3)  

The power to make an order under sub-paragraph (1)—

10

(a)   

may be exercised so as to bring a provision into force only in such

cases as may be described in the order,

(b)   

may be exercised so as to make different provision for different cases

or descriptions of case,

(c)   

includes power to make incidental, consequential, supplemental or

15

transitional provision or savings.

Schedule 3

Section 25

 

Managed service companies

Part 1

Amendments of ITEPA 2003

20

1          

ITEPA 2003 is amended as follows.

2          

In section 7(5) (meaning of “employment income” etc), for paragraph (a)

substitute—

“(a)   

Chapters 7 to 9 of this Part (agency workers, workers under

arrangements made by intermediaries, and workers

25

providing services through managed service companies),”.

3          

In section 48(2) (workers under arrangements made by intermediaries:

scope of Chapter) for “or” at the end of paragraph (a) substitute—

“(aa)   

applies to services provided by a managed service company

(within the meaning of Chapter 9 of this Part), or”.

30

4          

After section 61 insert—

Chapter 9

Managed service companies

Application of this Chapter

61A     

Scope of this Chapter

35

(1)   

This Chapter has effect with respect to the provision of services by a

managed service company.

 

 

Finance Bill
Schedule 3 — Managed service companies
Part 1 — Amendments of ITEPA 2003

92

 

(2)   

Nothing in this Chapter—

(a)   

affects the operation of Chapter 7 of this Part (agency

workers), or

(b)   

applies to payments or transfers to which section 966(3) or (4)

of ITA 2007 applies (visiting performers: duty to deduct and

5

account for sums representing income tax).

61B     

Meaning of “managed service company”

(1)   

A company is a “managed service company” if—

(a)   

its business consists wholly or mainly of providing (directly

or indirectly) the services of an individual to other persons,

10

(b)   

payments are made (directly or indirectly) to the individual

(or associates of the individual) of an amount equal to the

greater part or all of the consideration for the provision of the

services,

(c)   

the way in which those payments are made would result in

15

the individual (or associates) receiving payments of an

amount (net of tax and national insurance) exceeding that

which would be received (net of tax and national insurance)

if every payment in respect of the services were employment

income of the individual, and

20

(d)   

a person who carries on a business of promoting or

facilitating the use of companies to provide the services of

individuals (“an MSC provider”) is involved with the

company.

(2)   

An MSC provider is “involved with the company” if the MSC

25

provider or an associate of the MSC provider—

(a)   

benefits financially on an ongoing basis from the provision of

the services of the individual,

(b)   

influences or controls the provision of those services,

(c)   

influences or controls the way in which payments to the

30

individual (or associates of the individual) are made,

(d)   

influences or controls the company’s finances or any of its

activities, or

(e)   

gives or promotes an undertaking to make good any tax loss.

(3)   

A person does not fall within subsection (1)(d) merely by virtue of

35

providing legal or accountancy services in a professional capacity.

(4)   

A person does not fall within subsection (1)(d) merely by virtue of

carrying on a business consisting only of placing individuals with

persons who wish to obtain their services (including by contracting

with companies which provide their services).

40

(5)   

Subsection (4) does not apply if the person or an associate of the

person—

(a)   

does anything within subsection (2)(c) or (e), or

(b)   

does anything within subsection (2)(d) other than influencing

the company’s finances or activities by doing anything

45

within subsection (2)(b).

 

 

 
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