Finance Bill

House of Commons

Session 2007 - 08
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Finance Bill

Finance Bill
Part 7 — Administration
Chapter 5 — Payment and enforcement
79

(c)
if the person is a corporation, that person passes a resolution for
voluntary winding up,
(d)
a voluntary arrangement comes into force in relation to that person, or
(e)
a deed of arrangement takes effect in relation to that person.
(6)
In this section, references to the application of an insolvency procedure to a
5
person do not include—
(a)
the application of an insolvency procedure to a person at a time when
another insolvency procedure applies to the person, or
(b)
the application of an insolvency procedure to a person immediately
upon another insolvency procedure ceasing to have effect.
10
(7)
For the purposes of this section—
(a)
a person shall be treated as being in administrative receivership
throughout any continuous period for which there is an administrative
receiver of that person (disregarding any temporary vacancy in the
office of receiver), and
15
(b)
the reference in subsection (5) to a person being put into administrative
receivership shall be interpreted accordingly.
(8)
In this section—
“administrative receiver” means an administrative receiver within the
meaning of section 251 of the Insolvency Act 1986 (c. 45) or Article 5(1)
20
of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I.
19)),
“administrator” means a person appointed to manage the affairs, business
and property of another person under Schedule B1 to that Act or to that
Order,
25
“credit” and “debit” have the same meaning as in section 125,
“deed of arrangement” means a deed of arrangement registered in
accordance with the Deeds of Arrangement Act 1914 (c. 47) or Chapter
1 of Part 8 the Insolvency (Northern Ireland) Order 1989, and
“voluntary arrangement” means a voluntary arrangement approved in
30
accordance with Part 1 or Part 8 of the Insolvency Act 1986 or Part 2 or
Chapter 2 of Part 8 of the Insolvency (Northern Ireland) Order 1989.
(9)
This section extends to England and Wales and Northern Ireland only.
127
VAT: requirement to set-off
(1)
Section 81 of VATA 1994 (set-off of credits etc) is amended as follows.
35
(2)
For subsection (4C) substitute—
“(4C)
In this section, references to the application of an insolvency procedure
to a person do not include—
(a)
the application of an insolvency procedure to a person at a time
when another insolvency procedure applies to the person, or
40
(b)
the application of an insolvency procedure to a person
immediately upon another insolvency procedure ceasing to
have effect.”
(3)
In subsection (5)—
(a)
omit paragraph (a),
45
(b)
in paragraph (b)—

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Part 7 — Administration
Chapter 5 — Payment and enforcement
80

(i)
for “that Act of 1986” substitute “the Insolvency Act 1986”, and
(ii)
for “that Order of 1989” substitute “the Insolvency (Northern
Ireland) Order 1989”, and
(c)
before the “and” at the end of paragraph (b) insert—
“(ba)
“administrator” means a person appointed to manage
5
the affairs, business and property of another person
under Schedule B1 to that Act or to that Order;”.
128
Retained funding bonds: tender by Commissioners
(1)
Section 939 of ITA 2007 (duty to retain bonds where issue treated as payment
of interest) is amended as follows.
10
(2)
After subsection (4) insert—
“(4A)
If bonds are tendered in accordance with subsection (4), the
Commissioners for Her Majesty’s Revenue and Customs may tender
the bonds in satisfaction of any amount that is payable by the
Commissioners to the relevant creditor in connection with the relevant
15
debt.
(4B)
For the purposes of subsection (4A)—
(a)
“relevant creditor” and “relevant debt” mean the creditor and
the debt mentioned in subsection (1)(a), and
(b)
a bond is to be taken to have the same value that it had at the
20
time of its issue.
(4C)
If bonds that are to be tendered in accordance with subsection (4) or
(4A) are subject to restrictions on their tender or transfer, the
restrictions do not prevent the bonds from being—
(a)
tendered in accordance with that subsection, or
25
(b)
transferred from the person tendering them to the person to
whom they are tendered.”
(3)
Omit subsection (5).
(4)
In ITA 2007, after section 940 insert—
“940A
  No appropriate bond or combination of bonds
30
(1)
This section applies if—
(a)
the Commissioners for Her Majesty’s Revenue and Customs
hold one or more bonds tendered in accordance with section
939(4),
(b)
the Commissioners wish to tender bonds in accordance with
35
section 939(4A) in satisfaction of an amount payable to the
relevant creditor, and
(c)
the Commissioners consider that they do not hold a bond, or
combination of bonds, that is appropriate for satisfying the
amount payable.
40
(2)
If requested to do so by the Commissioners, the bond issuer must
secure that the Commissioners hold a bond, or combination of bonds,
that the Commissioners consider to be appropriate for satisfying the
amount payable.

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Part 7 — Administration
Chapter 5 — Payment and enforcement
81

(3)
If requested to do so by the bond issuer, a person must assist the bond
issuer to comply with subsection (2).
(4)
The duty under subsection (2), or under subsection (3), does not apply
if it would be impracticable for the bond issuer, or the other person, to
comply with the duty.
5
(5)
The matters which the Commissioners may take into account when
considering whether or not a bond or combination of bonds is
appropriate for satisfying the amount payable include—
(a)
the value of a bond at the time of its issue,
(b)
the interest which the relevant creditor, or any other person, has
10
in a bond (including the nature or size of the interest), and
(c)
the terms on which a bond is issued.
(6)
For the purposes of this section—
(a)
“bond issuer” means the person by or through whom bonds
were issued, and
15
(b)
“relevant creditor” and “relevant debt” have the same meanings
as in section 939(4A).”
(5)
The amendments made by this section have effect in relation to funding bonds
issued on or after 12 March 2008.
Other measures
20
129
Interest on unpaid tax in case of disaster etc of national significance
(1)
This section applies in any case where the Commissioners agree that the
payment of a relevant sum may be deferred by reason of circumstances arising
as a result of a disaster or emergency specified in an order under this section
(an “agreement for deferred payment”).
25
(2)
In subsection (1) “relevant sum” means a sum to meet any liability to the
Commissioners arising under or by virtue of an enactment or a contract
settlement.
(3)
No interest on the amount deferred is chargeable in respect of the relief period
and no liability to a surcharge on the deferred amount arises during that
30
period.
(4)
The relief period is the period—
(a)
beginning with a date specified in the order or, if the Commissioners so
direct, a later date from which the agreement for deferred payment has
effect, and
35
(b)
ending with the date on which the agreement for deferred payment
ceases to have effect or, if earlier, the date on which the order is
revoked.
(5)
The agreement for deferred payment ceases to have effect at the end of the
period of deferment specified in the agreement or, if the Commissioners agree
40
to extend (or further extend) that period by reason of circumstances arising as
a result of the disaster or emergency, with the end of that extended (or further
extended) period.

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Chapter 5 — Payment and enforcement
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(6)
If the agreement for deferred payment is an agreement for payment by
instalments, the period of deferment in relation to each instalment ends with
the date on or before which that instalment is to be paid; but if an instalment is
not paid by the agreed date and the Commissioners do not agree to extend the
period of deferment, the whole of the agreement for deferred payment is to be
5
treated as ceasing to have effect on that date.
(7)
This section applies whether the agreement for deferred payment was made—
(a)
before or after the amount to which it relates becomes due and payable,
or
(b)
before or after the making of the order concerned.
10
(8)
If in any case the Commissioners are satisfied that, although no agreement for
deferred payment was made, one could have been made, this section applies
as if one had been made; and the terms of the notional agreement for deferred
payment are to be assumed to be such as the Commissioners are satisfied
would have been agreed in the circumstances.
15
(9)
An order under this section may be made only in relation to a disaster or
emergency which the Treasury consider to be of national significance.
(10)
Such an order—
(a)
may specify a disaster or emergency which has begun (or both begun
and ended) before it is made (including one which has begun, or both
20
begun and ended, before the passing of this Act), and
(b)
may specify a date before the date on which it is made (including a date
before the passing of this Act).
(11)
The power to make an order under this section is exercisable by the Treasury
by statutory instrument.
25
(12)
A statutory instrument containing such an order is subject to annulment in
pursuance of a resolution of the House of Commons.
(13)
In FA 2001, omit section 107 (interest on unpaid tax etc: foot and mouth
disease); but the repeal of that section does not affect any agreement for
deferred payment made before this Act is passed.
30
130
Fee for payment
(1)
The Commissioners may by regulations provide that, where a person makes a
payment to the Commissioners or a person authorised by the Commissioners
using a method of payment specified in the regulations, the person must also
pay a fee specified in, or determined in accordance with, the regulations.
35
(2)
A method of payment may only be specified in regulations made under this
section if the Commissioners expect that they, or the person authorised by
them, will be required to pay a fee or charge (however described) in connection
with amounts paid using that method of payment.
(3)
Regulations under this section—
40
(a)
may make provision about the time and manner in which the fee must
or may be paid,
(b)
may make provision generally or only for specified purposes, and
(c)
may make different provision for different purposes.
(4)
Regulations under this section are to be made by statutory instrument.
45

Finance Bill
Part 7 — Administration
Chapter 5 — Payment and enforcement
83

(5)
A statutory instrument containing regulations under this section is subject to
annulment in pursuance of a resolution of the House of Commons.
131
County court proceedings
(1)
In section 25 of CRCA 2005 (conduct of civil proceedings)—
(a)
after subsection (1) insert—
5
“(1A)
An officer of Revenue and Customs or a person authorised by
the Commissioners may conduct county court proceedings for
the recovery of an amount payable to the Commissioners under
or by virtue of an enactment or under a contract settlement.”,
and
10
(b)
after subsection (5) insert—
“(6)
In this section, “contract settlement” means an agreement made
in connection with any person’s liability to make a payment to
the Commissioners under or by virtue of an enactment.”
(2)
In section 66 of TMA 1970 (county court proceedings)—
15
(a)
in subsection (1), omit “commenced in the name of a collector”, and
(b)
omit subsection (2).
(3)
Accordingly, in FA 1984, omit section 57(2).
(4)
In section 244 of IHTA 1984 (right to address court), omit “county court or”.
(5)
In paragraph 3 of Schedule 4 to the Social Security Contributions (Transfer of
20
Functions, etc.) Act 1999 (c. 2) (recovery of contributions where income tax
recovery provisions not applicable)—
(a)
in sub-paragraph (1), omit “commenced in the name of an authorised
officer”, and
(b)
omit sub-paragraph (2).
25
(6)
In paragraph 5 of Schedule 12 to FA 2003 (stamp duty land tax)—
(a)
in sub-paragraph (1), omit “brought in the name of the collector”, and
(b)
omit sub-paragraph (2).
(7)
Nothing in subsections (2) to (6) affects proceedings commenced or brought in
the name of a collector or authorised officer before this Act is passed.
30
132
Certificates of debt
(1)
In CRCA 2005, after section 25 insert—
“25A
Certificates of debt
(1)
A certificate of an officer of Revenue and Customs that, to the best of
that officer’s knowledge and belief, a relevant sum has not been paid is
35
sufficient evidence that the sum mentioned in the certificate is unpaid.
(2)
In subsection (1), “relevant sum” means a sum payable to the
Commissioners under or by virtue of an enactment or under a contract
settlement (within the meaning of section 25).
(3)
Any document purporting to be such a certificate shall be treated as if
40
it were such a certificate until the contrary is proved.

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Part 8 — Miscellaneous
84

(4)
Subsection (1) has effect subject to any provision treating the certificate
as conclusive evidence.”
(2)
Schedule 44 contains provisions consequential on this section.
Supplementary
133
Interpretation of Chapter
5
In this Chapter—
“the Commissioners” means the Commissioners for Her Majesty’s
Revenue and Customs, and
“contract settlement” means an agreement made in connection with any
person’s liability to make a payment to the Commissioners under or by
10
virtue of an enactment.
Part 8
Miscellaneous
Inheritance tax
134
Charge on termination of interest in possession where new interest acquired
15
(1)
In section 53 of IHTA 1984 (exceptions from charge on termination of interest
in possession), for subsection (2A) substitute—
“(2A)
Subsection (2) above applies by virtue of the person becoming
beneficially entitled on or after 12 March 2008 to another interest in
possession in the property only if that other interest is—
20
(a)
a disabled person’s interest, or
(b)
a transitional serial interest;

and that is the case irrespective of whether the person’s beneficial
entitlement to the interest in possession in the property which comes to
an end is one which began before, or on or after, 22 March 2006.”
25
(2)
The amendment made by subsection (1) is treated as having come into force on
22 March 2006 (so that paragraph 14(3) of Schedule 20 to FA 2006 is treated as
never having had effect).
135
Interest in possession settlements: extension of transitional period
(1)
In Chapter 2 of Part 3 of IHTA 1984 (interests in possession etc)—
30
(a)
in section 49C (transitional serial interest: interest to which person
becomes entitled on or after 22 March 2006 and before 6 April 2008), in
subsection (3) and in the heading,
(b)
in section 49D (transitional serial interest: interest to which person
becomes entitled on death of spouse or civil partner on or after 6 April
35
2008), in subsection (3) and in the heading, and
(c)
in section 49E (transitional serial interest: contracts of life insurance), in
subsection (3),

for “April” substitute “October”.

Finance Bill
Part 8 — Miscellaneous
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(2)
The amendments made by subsection (1) are treated as having come into force
on 6 April 2008.
Insurance premium tax
136
Tax representatives
(1)
In Part 3 of FA 1994 (insurance premium tax), omit the following provisions
5
(which relate to tax representatives)—
(a)
sections 57 and 58,
(b)
in section 65(1), paragraph (b) and the “and” before it,
(c)
in section 73(1), the definition of “tax representative”, and
(d)
in Schedule 7, paragraph 18 and, in paragraph 20, “, 18(2)”.
10
(2)
In consequence of the repeals made by subsection (1), omit sections 27(4) and
(5) of FA 1997.
137
Overseas insurers
(1)
Section 65 of FA 1994 (insurance premium tax: liability of insured where
insurer not established in United Kingdom) is amended as follows.
15
(2)
In subsection (1), for the words after “time” substitute “the insurer—
(a)
does not have any business establishment or other fixed
establishment in the United Kingdom, and
(b)
is established in a country or territory in respect of which it
appears to the Commissioners that the condition in subsection
20
(1A) below is met.”
(3)
After that subsection insert—
“(1A)
The condition mentioned in subsection (1)(b) above is that—
(a)
the country or territory is neither a member State nor a part of a
member State, and
25
(b)
there is no provision for mutual assistance between the United
Kingdom and the country or territory similar in scope to the
assistance provided for between the United Kingdom and each
other member State by the mutual assistance provisions.
(1B)
In subsection (1A) above “the mutual assistance provisions” means—
30
(a)
section 134 of, and Schedule 39 to, the Finance Act 2002
(recovery of taxes etc due in other member States), and
(b)
section 197 of the Finance Act 2003 (exchange of information
between tax authorities of member States).”
Vehicle excise duty
35
138
Rebates
(1)
VERA 1994 is amended as follows.
(2)
In section 10 (transfer and surrender of vehicle licences), omit subsections (2)
and (3) and, in the heading, “and surrender”.