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Finance Bill (Volume I)
Part 7 — Administration
Chapter 5 — Payment and enforcement

82

 

129     

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.

(2)   

The Commissioners may not use the power under section 128 to set that post-

5

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

(b)   

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

10

(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.

(5)   

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

15

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,

(c)   

if the person is a corporation, that person passes a resolution for

20

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

person do not include—

25

(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.

(7)   

For the purposes of this section—

30

(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

(b)   

the reference in subsection (5) to a person being put into administrative

35

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)

of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I.

40

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,

“credit” and “debit” have the same meaning as in section 128,

45

“deed of arrangement” means a deed of arrangement registered in

accordance with the Deeds of Arrangement Act 1914 (c. 47) or Chapter

 
 

Finance Bill (Volume I)
Part 7 — Administration
Chapter 5 — Payment and enforcement

83

 

1 of Part 8 the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405

(N.I. 19)), and

“voluntary arrangement” means a voluntary arrangement approved in

accordance with Part 1 or Part 8 of the Insolvency Act 1986 (c. 45) or

Part 2 or Chapter 2 of Part 8 of the Insolvency (Northern Ireland) Order

5

1989.

(9)   

This section extends to England and Wales and Northern Ireland only.

130     

VAT: requirement to set-off

(1)   

Section 81 of VATA 1994 (set-off of credits etc) is amended as follows.

(2)   

For subsection (4C) substitute—

10

“(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

(b)   

the application of an insolvency procedure to a person

15

immediately upon another insolvency procedure ceasing to

have effect.”

(3)   

In subsection (5)—

(a)   

omit paragraph (a),

(b)   

in paragraph (b)—

20

(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

25

the affairs, business and property of another person

under Schedule B1 to that Act or to that Order;”.

131     

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.

30

(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

35

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

40

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—

 
 

Finance Bill (Volume I)
Part 7 — Administration
Chapter 5 — Payment and enforcement

84

 

(a)   

tendered in accordance with that subsection, or

(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—

5

“940A   

  No appropriate bond or combination of bonds

(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),

10

(b)   

the Commissioners wish to tender bonds in accordance with

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

15

amount payable.

(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.

20

(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.

25

(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

30

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

35

(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

40

132     

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

 
 

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Part 7 — Administration
Chapter 5 — Payment and enforcement

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as a result of a disaster or emergency specified in an order under this section

(an “agreement for deferred payment”).

(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.

5

(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

period.

(4)   

The relief period is the period—

(a)   

beginning with a date specified in the order or, if the Commissioners so

10

direct, a later date from which the agreement for deferred payment has

effect, and

(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.

15

(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

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.

20

(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

25

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.

30

(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.

35

(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

40

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.

45

(12)   

A statutory instrument containing such an order is subject to annulment in

pursuance of a resolution of the House of Commons.

 
 

Finance Bill (Volume I)
Part 7 — Administration
Chapter 5 — Payment and enforcement

86

 

(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.

133     

Fee for payment

(1)   

The Commissioners may by regulations provide that, where a person makes a

5

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.

(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

10

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—

(a)   

may make provision about the time and manner in which the fee must

or may be paid,

15

(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.

(5)   

A statutory instrument containing regulations under this section is subject to

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

20

134     

County court proceedings

(1)   

In section 25 of CRCA 2005 (conduct of civil proceedings)—

(a)   

after subsection (1) insert—

“(1A)   

An officer of Revenue and Customs or a person authorised by

the Commissioners may conduct county court proceedings for

25

the recovery of an amount payable to the Commissioners under

or by virtue of an enactment or under a contract settlement.”,

and

(b)   

after subsection (5) insert—

“(6)   

In this section “contract settlement” means an agreement made

30

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)—

(a)   

in subsection (1), omit “commenced in the name of a collector”, and

(b)   

omit subsection (2).

35

(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

Functions, etc.) Act 1999 (c. 2) (recovery of contributions where income tax

recovery provisions not applicable)—

40

(a)   

in sub-paragraph (1), omit “commenced in the name of an authorised

officer”, and

(b)   

omit sub-paragraph (2).

 
 

Finance Bill (Volume I)
Part 8 — Miscellaneous

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(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.

5

135     

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

10

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

15

it were such a certificate until the contrary is proved.

(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

20

136     

Interpretation of Chapter

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

25

person’s liability to make a payment to the Commissioners under or by

virtue of an enactment.

Part 8

Miscellaneous

Inheritance tax

30

137     

Charge on termination of interest in possession where new interest acquired

(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

35

possession in the property only if that other interest is—

(a)   

a disabled person’s interest, or

 
 

Finance Bill (Volume I)
Part 8 — Miscellaneous

88

 

(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.”

(2)   

The amendment made by subsection (1) is treated as having come into force on

5

22 March 2006 (so that paragraph 14(3) of Schedule 20 to FA 2006 is treated as

never having had effect).

138     

Interest in possession settlements: extension of transitional period

(1)   

In Chapter 2 of Part 3 of IHTA 1984 (interests in possession etc)—

(a)   

in section 49C (transitional serial interest: interest to which person

10

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

2008), in subsection (3) and in the heading, and

15

(c)   

in section 49E (transitional serial interest: contracts of life insurance), in

subsection (3),

   

for “April” substitute “October”.

(2)   

The amendments made by subsection (1) are treated as having come into force

on 6 April 2008.

20

Insurance premium tax

139     

Tax representatives

(1)   

In Part 3 of FA 1994 (insurance premium tax), omit the following provisions

(which relate to tax representatives)—

(a)   

sections 57 and 58,

25

(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)”.

(2)   

In consequence of the repeals made by subsection (1), omit sections 27(4) and

(5) of FA 1997.

30

140     

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.

(2)   

In subsection (1), for the words after “time” substitute “the insurer—

(a)   

does not have any business establishment or other fixed

35

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

(1A) below is met.”

(3)   

After that subsection insert—

40

“(1A)   

The condition mentioned in subsection (1)(b) above is that—

 
 

 
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