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Finance Bill
Part 7 — Administration
Chapter 2 — Time limits for claims and assessments etc

72

 

VAT

115     

VAT: time limits for assessments of excess credits etc

(1)   

In section 73 of VATA 1994 (assessment of overpaid VAT credits etc), after

subsection (6) insert—

“(6A)   

In the case of an assessment under subsection (2), the prescribed

5

accounting period referred to in subsection (6)(a) and in section 77(1)(a)

is the prescribed accounting period in which the repayment or refund

of VAT, or the VAT credit, was paid or credited.”

(2)   

Section 80 of that Act (credit for, or repayment of, overstated or overpaid VAT)

is amended as follows.

10

(3)   

After subsection (4A) insert—

“(4AA)   

An assessment under subsection (4A) shall not be made more than 2

years after the later of—

(a)   

the end of the prescribed accounting period in which the

amount was credited to the person, and

15

(b)   

the time when evidence of facts sufficient in the opinion of the

Commissioners to justify the making of the assessment comes to

the knowledge of the Commissioners.”

(4)   

In subsection (4C), for “(2)” substitute “(3)”.

(5)   

The amendments made by this section are treated as having come into force on

20

19 March 2008.

116     

Old VAT claims: extended time limits

(1)   

The requirement in section 80(4) of VATA 1994 that a claim under that section

be made within 3 years of the relevant date does not apply to a claim in respect

of an amount brought into account, or paid, for a prescribed accounting period

25

ending before 4 December 1996 if the claim is made before 1 April 2009.

(2)   

The requirement in section 25(6) of VATA 1994 that a claim for deduction of

input tax be made at such time as may be determined by or under regulations

does not apply to a claim for deduction of input tax that became chargeable,

and in respect of which the claimant held the required evidence, in a prescribed

30

accounting period ending before 1 May 1997 if the claim is made before 1 April

2009.

(3)   

In this section—

“input tax” and “prescribed accounting period” have the same meaning as

in VATA 1994 (see section 96 of that Act), and

35

“the required evidence” means the evidence of the charge to value added

tax specified in or under regulation 29(2) of the Value Added Tax

Regulations 1995 (S.I. 1995/2518).

(4)   

This section is treated as having come into force on 19 March 2008.

 
 

Finance Bill
Part 7 — Administration
Chapter 3 — Penalties

73

 

Chapter 3

Penalties

117     

Penalties for errors

(1)   

Schedule 40 contains provisions amending Schedule 24 to FA 2007 (penalties

for errors in returns etc).

5

(2)   

That Schedule comes into force on such day as the Treasury may by order

appoint.

(3)   

An order under subsection (2)—

(a)   

may commence a provision generally or only for specified purposes,

and

10

(b)   

may appoint different days for different provisions or for different

purposes.

(4)   

The Treasury may by order make any incidental, supplemental, consequential,

transitional, transitory or saving provision which may appear appropriate in

consequence of, or otherwise in connection with, Schedule 24 to FA 2007 or

15

Schedule 40.

(5)   

An order under subsection (4) may include provision amending, repealing or

revoking any provision of any Act or subordinate legislation whenever passed

or made (including this Act and any Act amended by it).

(6)   

An order under subsection (4) may make different provision for different

20

purposes.

(7)   

The power to make an order under this section is exercisable by statutory

instrument.

(8)   

A statutory instrument containing an order under subsection (4) which

includes provision amending or repealing any provision of an Act is subject to

25

annulment in pursuance of a resolution of the House of Commons.

118     

Penalties for failure to notify etc

(1)   

Schedule 41 contains provisions for imposing penalties on persons in respect

of failures to notify HMRC that they are chargeable to tax etc and certain

wrongdoings relating to invoices showing VAT and excise duties.

30

(2)   

That Schedule comes into force on such day as the Treasury may by order

appoint.

(3)   

An order under subsection (2)—

(a)   

may commence a provision generally or only for specified purposes,

and

35

(b)   

may appoint different days for different provisions or for different

purposes.

(4)   

The Treasury may by order make any incidental, supplemental, consequential,

transitional, transitory or saving provision which may appear appropriate in

consequence of, or otherwise in connection with, Schedule 41.

40

 
 

Finance Bill
Part 7 — Administration
Chapter 4 — Appeals etc

74

 

(5)   

An order under subsection (4) may include provision amending, repealing or

revoking any provision of any Act or subordinate legislation whenever passed

or made (including this Act and any Act amended by it).

(6)   

An order under subsection (4) may make different provision for different

purposes.

5

(7)   

The power to make an order under this section is exercisable by statutory

instrument.

(8)   

A statutory instrument containing an order under subsection (4) which

includes provision amending or repealing any provision of an Act is subject to

annulment in pursuance of a resolution of the House of Commons.

10

Chapter 4

Appeals etc

Reviews and appeals etc: general

119     

HMRC decisions etc: reviews and appeals

(1)   

The Treasury may by order made by statutory instrument make provision—

15

(a)   

for and in connection with reviews by the Commissioners, or by an

officer of Revenue and Customs, of HMRC decisions, and

(b)   

in connection with appeals against HMRC decisions.

(2)   

An order under subsection (1) may, in particular, contain provision about—

(a)   

the circumstances in which, or the time within which—

20

(i)   

a right to a review may be exercised, or

(ii)   

an appeal may be made, and

(b)   

the circumstances in which, or the time at which, an appeal or review

is, or may be treated as, concluded.

(3)   

An order under subsection (1) may, in particular, contain provision about the

25

payment of sums by, or to, the Commissioners in cases where—

(a)   

a right to a review is exercised, or

(b)   

an appeal is made or determined.

(4)   

That includes provision about payment of sums where an appeal has been

determined, but a further appeal may be or has been made, including

30

provision—

(a)   

requiring payments to be made,

(b)   

enabling payments to be postponed, or

(c)   

imposing conditions in connection with the making or postponement

of payments.

35

(5)   

An order under subsection (1) may, in particular, contain provision about

interest on any sum that is payable by, or to, the Commissioners in accordance

with a decision made on the determination of an appeal.

(6)   

Provision under subsection (1) may be made by amending, repealing or

revoking any provision of any Act or subordinate legislation (whenever passed

40

or made, including this Act and any Act amended by it).

 
 

Finance Bill
Part 7 — Administration
Chapter 4 — Appeals etc

75

 

(7)   

An order under subsection (1) may—

(a)   

provide that any provision contained in the order comes into force on a

day appointed by an order of the Treasury made by statutory

instrument (and may provide that different days may be appointed for

different purposes),

5

(b)   

contain incidental, supplemental, consequential, transitional,

transitory and saving provision, and

(c)   

make different provision for different purposes.

(8)   

A statutory instrument containing an order under subsection (1) may not be

made unless a draft of it has been laid before and approved by resolution of the

10

House of Commons.

(9)   

But if the order, or any other order under subsection (1) contained in the

statutory instrument, is made in connection with a transfer of functions carried

out under the Tribunals, Courts and Enforcement Act 2007 (c. 15), the statutory

instrument may only be made if a draft of it has been laid before and approved

15

by resolution of each House of Parliament.

(10)   

In this section—

(a)   

references to appeals against HMRC decisions include any other kind

of proceedings relating to an HMRC matter, and

(b)   

references to the making, determination or conclusion of appeals are to

20

be read accordingly.

(11)   

In this section—

“the Commissioners” means the Commissioners for Her Majesty’s

Revenue and Customs;

“HMRC decision” means—

25

(a)   

any decision of the Commissioners relating to an HMRC matter,

or

(b)   

any decision of an officer of Revenue and Customs relating to

an HMRC matter,

and references to an HMRC decision include references to anything

30

done by such a person in connection with making such a decision or in

consequence of such a decision;

“HMRC matter” means any matter connected with a function of the

Commissioners or an officer of Revenue and Customs.

Customs and excise decisions subject to review and appeal

35

120     

Alcoholic liquor duties

(1)   

Schedule 42 contains amendments of FA 1994 making certain decisions about

alcoholic liquor duties subject to review and appeal.

(2)   

The amendments made by that Schedule have effect in relation to decisions

made on or after the day on which this Act is passed.

40

121     

Security under CEMA 1979

(1)   

In paragraph 2(1)(s) of Schedule 5 to FA 1994 (decisions under section 157 of

CEMA 1979 subject to review and appeal)—

(a)   

after “any security” insert “(or further security)”, and

 
 

Finance Bill
Part 7 — Administration
Chapter 5 — Payment and enforcement

76

 

(b)   

insert at the end “, guarantee or other security”.

(2)   

The amendments made by subsection (1) have effect in relation to decisions

made on or after the day on which this Act is passed.

Chapter 5

Payment and enforcement

5

Taking control of goods etc

122     

Enforcement by taking control of goods: England and Wales

(1)   

This section applies if a person does not pay a sum that is payable by that

person to the Commissioners under or by virtue of an enactment or under a

contract settlement.

10

(2)   

The Commissioners may use the procedure in Schedule 12 to the Tribunals,

Courts and Enforcement Act 2007 (c. 15) (taking control of goods) to recover

that sum.

(3)   

This section extends to England and Wales only.

123     

Summary warrant: Scotland

15

(1)   

This section applies if a person does not pay a sum that is payable by that

person to the Commissioners under or by virtue of any enactment or under a

contract settlement.

(2)   

An officer of Revenue and Customs may apply to the sheriff for a summary

warrant.

20

(3)   

An application under subsection (2) must be accompanied by a certificate

which—

(a)   

complies with subsection (4), and

(b)   

is signed by the officer.

(4)   

A certificate complies with this subsection if—

25

(a)   

it states that—

(i)   

none of the persons specified in the application has paid the

sum payable by that person,

(ii)   

the officer has demanded payment from each such person of the

sum payable by that person, and

30

(iii)   

the period of 14 days beginning with the day on which the

demand is made has expired without payment being made, and

(b)   

it specifies the sum payable by each person specified in the application.

(5)   

Subsection (4)(a)(iii) does not apply to an application under subsection (2)

insofar as it relates to—

35

(a)   

sums payable in respect of value added tax,

(b)   

sums payable in respect of deductions required to be made under

section 61 of FA 2004 (sub-contractors in the construction industry),

and

(c)   

sums payable by a person in that person’s capacity as an employer.

40

 
 

Finance Bill
Part 7 — Administration
Chapter 5 — Payment and enforcement

77

 

(6)   

The sheriff must, on an application by an officer of Revenue and Customs

under subsection (2), grant a summary warrant in, or as nearly as may be in,

the form prescribed by Act of Sederunt.

(7)   

A summary warrant granted under subsection (6) authorises the recovery of

the sum payable by—

5

(a)   

attachment,

(b)   

money attachment,

(c)   

earnings arrestment,

(d)   

arrestment and action of furthcoming or sale.

(8)   

Subject to subsection (9) and without prejudice to section 39(1) of the Debt

10

Arrangement and Attachment (Scotland) Act 2002 (asp 17) (expenses of

attachment)—

(a)   

the sheriff officer’s fees, and

(b)   

any outlays necessarily incurred by that officer,

in connection with the execution of a summary warrant are to be chargeable

15

against the person in relation to whom the warrant was granted.

(9)   

No fees are to be chargeable by the sheriff officer against the person in relation

to whom the summary warrant was granted for collecting, and accounting to

the Commissioners for, sums paid to that officer by that person in respect of the

sum payable.

20

(10)   

This section extends to Scotland only.

124     

Consequential provision and commencement

(1)   

Part 1 of Schedule 43 contains provision consequential on section 122.

(2)   

Part 2 of that Schedule contains provision consequential on section 123.

(3)   

The extent of the amendments and repeals in Schedule 43 is the same as the

25

provision amended or repealed.

(4)   

Sections 122 and 123 and Schedule 43 come into force on such day as the

Commissioners may by order made by statutory instrument appoint.

(5)   

An order under subsection (4) may—

(a)   

make different provision for different purposes, and

30

(b)   

contain transitional provision and savings.

Set off

125     

Set-off: England and Wales and Northern Ireland

(1)   

This section applies where there is both a credit and a debit in relation to a

person.

35

(2)   

The Commissioners may set the credit against the debit (subject to section 126).

(3)   

The obligations of the Commissioners and the person concerned are

discharged to the extent of any set-off under subsection (2).

(4)   

“Credit”, in relation to a person, means—

 
 

Finance Bill
Part 7 — Administration
Chapter 5 — Payment and enforcement

78

 

(a)   

a sum that is payable by the Commissioners to the person under or by

virtue of an enactment, or

(b)   

a relevant sum that may be repaid to the person by the Commissioners.

(5)   

For the purposes of subsection (4), in relation to a person—

(a)   

any assignment of the person’s entitlement to a sum shall be

5

disregarded, with the exception of an assignment by means of a

direction under section 429 of ITA 2007 (giving through self-assessment

returns), and

(b)   

“relevant sum” means a sum that was paid in connection with any

liability (including any purported or anticipated liability) of that person

10

to make a payment to the Commissioners under or by virtue of an

enactment or under a contract settlement.

(6)   

“Debit”, in relation to a person, means a sum that is payable by the person to

the Commissioners under or by virtue of an enactment or under a contract

settlement.

15

(7)   

This section has effect without prejudice to any other power of the

Commissioners to set off amounts.

(8)   

In section 429(5) of ITA 2007 (giving through self-assessment)—

(a)   

in the definition of “tax repayment”, for “set-off that falls to be made

against the individual’s liabilities” substitute “relevant set-off”, and

20

(b)   

insert at the end—

““relevant set-off”, in relation to an individual, means any

set-off that falls to be made against the individual’s

liabilities, other than any set-off under section 125 of FA

2008.”

25

(9)   

Subsections (1) to (7) extend to England and Wales and Northern Ireland only.

126     

No set-off where insolvency procedure has been applied

(1)   

This section applies where—

(a)   

an insolvency procedure has been applied to a person, and

(b)   

that person is entitled to a post-insolvency credit.

30

(2)   

The Commissioners may not use the power under section 125 to set that post-

insolvency credit against a pre-insolvency debit.

(3)   

“Post-insolvency credit” means a credit that—

(a)   

became due after the insolvency procedure was applied to the person,

and

35

(b)   

relates to, or to matters occurring at, times after it was so applied.

(4)   

“Pre-insolvency debit” means a debit that—

(a)   

arose before the insolvency procedure was applied to the person, or

(b)   

arose after that procedure was so applied but relates to, or to matters

occurring at, times before it was so applied.

40

(5)   

Subject to subsection (6), an insolvency procedure is to be taken, for the

purposes of this section, to be applied to a person when—

(a)   

a bankruptcy order or winding up order is made or an administrator is

appointed in relation to that person,

(b)   

that person is put into administrative receivership,

45

 
 

 
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