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4 | Schedule 11 to VATA 1994 (administration, collection and enforcement) is |
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5 (1) | Paragraph 6 (duty to keep records) is amended as follows. |
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(2) | In sub-paragraph (3), for the second “require” substitute “specify in writing |
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(and different periods may be specified for different cases)”. |
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(3) | For sub-paragraphs (4) to (6) substitute— |
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“(4) | The duty under this paragraph to preserve records may be |
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(a) | by preserving them in any form and by any means, or |
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(b) | by preserving the information contained in them in any |
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| subject to any conditions or exceptions specified in writing by the |
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Commissioners for Her Majesty’s Revenue and Customs.” |
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6 | In paragraph 6A(7) (application of provisions of paragraph 6 where |
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directions under paragraph 6A require records to be kept)— |
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(a) | for “Sub-paragraphs (4) to (6) of paragraph 6 (preservation of |
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information by means approved by the Commissioners) apply” |
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substitute “Sub-paragraph (4) of paragraph 6 (preservation of |
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information) applies”, and |
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(b) | for “they apply” substitute “it applies”. |
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7 | Schedule 18 to FA 1998 (company tax returns) is amended as follows. |
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8 (1) | Paragraph 21 (duty to keep and preserve records) is amended as follows. |
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(2) | In sub-paragraph (2), for the words from “for six years” to the end substitute |
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“until the end of the relevant day.” |
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(3) | After that sub-paragraph insert— |
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“(2A) | In this paragraph “relevant day” means— |
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(a) | the sixth anniversary of the end of the period for which the |
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company may be required to deliver a company tax return, |
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(b) | such earlier day as may be specified in writing by the |
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Commissioners for Her Majesty’s Revenue and Customs |
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(and different days may be specified for different cases).” |
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(4) | In sub-paragraph (3), for “that six year period” substitute “the relevant day”. |
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(5) | In sub-paragraph (4), for “that six year period” substitute “the relevant day”. |
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(6) | After sub-paragraph (5) insert— |
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“(5A) | The Commissioners for Her Majesty’s Revenue and Customs may |
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(a) | provide that the records required to be kept and preserved |
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under this paragraph include, or do not include, records |
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specified in the regulations, and |
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(b) | provide that those records include supporting documents |
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(5B) | Regulations under this paragraph may— |
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(a) | make different provision for different cases, and |
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(b) | make provision by reference to things specified in a notice |
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published by the Commissioners for Her Majesty’s |
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Revenue and Customs in accordance with the regulations |
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(and not withdrawn by a subsequent notice).” |
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(7) | In sub-paragraph (6), omit the first sentence. |
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9 (1) | Paragraph 22 (preservation of information instead of original records) is |
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(2) | For sub-paragraph (1) substitute— |
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“(1) | The duty under paragraph 21 to preserve records may be |
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(a) | by preserving them in any form and by any means, or |
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(b) | by preserving the information contained in them in any |
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| subject to sub-paragraph (3) and any conditions or exceptions |
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specified in writing by the Commissioners for Her Majesty’s |
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(3) | Omit sub-paragraph (2). |
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(4) | In sub-paragraph (3), for “The records excluded from sub-paragraph (1) are” |
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substitute “Sub-paragraph (1)(b) does not apply in the case of the following |
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(5) | Accordingly, in the heading before that paragraph, for “instead of original |
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records” substitute “etc”. |
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10 | In section 13(6) of FA 1999 (VAT and gold)— |
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(a) | for “(6)” substitute “(4)”, |
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(b) | after “above” insert “, and to records kept in pursuance of such |
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(c) | insert at the end “and to records kept in pursuance of that |
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11 | In consequence of the amendments made by paragraph 2 omit— |
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(a) | section 105(4)(b) of FA 1995, and |
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(b) | section 124(2) and (6) of FA 1996. |
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Disclosure of tax avoidance schemes |
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Amendments of Part 7 of FA 2004 |
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1 | Part 7 of FA 2004 (disclosure of tax avoidance schemes) is amended as |
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2 (1) | Section 308 (duties of promoter) is amended as follows. |
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(a) | for “The promoter” substitute “A person who is a promoter in |
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relation to a notifiable proposal”, and |
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(b) | for “any” substitute “the”. |
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(3) | In subsection (2)(a), for “a” substitute “the”. |
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(a) | for “The promoter” substitute “A person who is a promoter in |
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relation to notifiable arrangements”, and |
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(b) | for “any notifiable” substitute “the notifiable”. |
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(5) | For subsection (4) substitute— |
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“(4) | Subsection (4A) applies where a person complies with subsection (1) |
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in relation to a notifiable proposal for arrangements and another |
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(a) | also a promoter in relation to the notifiable proposal or is a |
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promoter in relation to a notifiable proposal for |
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arrangements which are substantially the same as the |
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proposed arrangements (whether they relate to the same or |
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(b) | a promoter in relation to notifiable arrangements |
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implementing the notifiable proposal or notifiable |
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arrangements which are substantially the same as notifiable |
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arrangements implementing the notifiable proposal |
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(whether they relate to the same or different parties). |
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(4A) | Any duty of the other person under subsection (1) or (3) in relation |
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to the notifiable proposal or notifiable arrangements is discharged |
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(a) | the person who complied with subsection (1) has notified the |
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identity and address of the other person to HMRC or the |
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other person holds the reference number allocated to the |
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proposed notifiable arrangements under section 311, and |
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(b) | the other person holds the information provided to HMRC in |
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compliance with subsection (1). |
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(4B) | Subsection (4C) applies where a person complies with subsection (3) |
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in relation to notifiable arrangements and another person is— |
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(a) | a promoter in relation to a notifiable proposal for |
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arrangements which are substantially the same as the |
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notifiable arrangements (whether they relate to the same or |
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(b) | also a promoter in relation to the notifiable arrangements or |
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notifiable arrangements which are substantially the same |
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(whether they relate to the same or different parties). |
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(4C) | Any duty of the other person under subsection (1) or (3) in relation |
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to the notifiable proposal or notifiable arrangements is discharged |
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(a) | the person who complied with subsection (3) has notified the |
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identity and address of the other person to HMRC or the |
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other person holds the reference number allocated to the |
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notifiable arrangements under section 311, and |
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(b) | the other person holds the information provided to HMRC in |
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compliance with subsection (3).” |
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3 | In section 311(1) (arrangements to be given reference number)— |
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(a) | after “complies” insert “or purports to comply”, |
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(b) | omit “may within 30 days”, |
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(c) | before “allocate” insert “may within 30 days”, and |
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(d) | for “notify the person of that number” substitute “must notify that |
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number to the person and (where the person is one who has |
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complied or purported to comply with section 308(1) or (3)) to any |
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(i) | who is a promoter in relation to the notifiable |
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proposal (or arrangements implementing the |
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notifiable proposal) or the notifiable |
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arrangements (or proposal implemented by |
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the notifiable arrangements), and |
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(ii) | whose identity and address has been notified |
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4 | For section 312 substitute— |
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“312 | Duty of promoter to notify client of number |
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(1) | This section applies where a person who is a promoter in relation to |
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notifiable arrangements is providing (or has provided) services to |
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any person (“the client”) in connection with the notifiable |
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(2) | The promoter must, within 30 days after the relevant date, provide |
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the client with prescribed information relating to any reference |
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number (or, if more than one, any one reference number) that has |
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been notified to the promoter (whether by HMRC or any other |
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(a) | the notifiable arrangements, or |
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(b) | any arrangements substantially the same as the notifiable |
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arrangements (whether involving the same or different |
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(3) | In subsection (2) “the relevant date” means the later of— |
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(a) | the date on which the promoter becomes aware of any |
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transaction which forms part of the notifiable arrangements, |
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(b) | the date on which the reference number is notified to the |
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(4) | But where the conditions in subsection (5) are met the duty imposed |
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on the promoter under subsection (2) to provide the client with |
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information in relation to notifiable arrangements is discharged. |
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(5) | Those conditions are— |
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(a) | that the promoter is also a promoter in relation to a notifiable |
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proposal and provides services to the client in connection |
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(b) | the notifiable proposal and the notifiable arrangements are |
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substantially the same, and |
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(c) | the promoter has provided to the client, in a form and |
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manner specified by HMRC, prescribed information relating |
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to the reference number that has been notified to the |
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promoter in relation to the proposed notifiable |
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(6) | HMRC may give notice that, in relation to notifiable arrangements |
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specified in the notice, promoters are not under the duty under |
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subsection (2) after the date specified in the notice. |
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312A | Duty of client to notify parties of number |
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(1) | This section applies where a person (a “client”) to whom a person |
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who is a promoter in relation to notifiable arrangements or a |
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notifiable proposal is providing (or has provided) services in |
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connection with the notifiable arrangements or notifiable proposal |
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receives prescribed information relating to the reference number |
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allocated to the notifiable arrangements or proposed notifiable |
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(2) | The client must, within the prescribed period, provide prescribed |
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information relating to the reference number to any other person— |
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(a) | who the client might reasonably be expected to know is or is |
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likely to be a party to the arrangements or proposed |
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(b) | who might reasonably be expected to gain a tax advantage in |
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relation to any relevant tax by reason of the arrangements or |
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(3) | For the purposes of subsection (1) a tax is a “relevant tax” in relation |
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to arrangements or arrangements proposed in a proposal of any |
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description if it is prescribed in relation to arrangements or proposals |
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of that description by regulations under section 306. |
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(4) | HMRC may give notice that, in relation to notifiable arrangements or |
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a notifiable proposal specified in the notice, persons are not under |
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the duty under subsection (2) after the date specified in the notice. |
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(5) | The duty under subsection (2) does not apply in prescribed |
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5 (1) | Section 313 (duty of parties to notifiable arrangements to notify HMRC of |
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number etc) is amended as follows. |
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(2) | In subsection (1)(a), omit “under section 311 by the Board or under section |
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(a) | for “under subsection (1)” substitute “made by HMRC”, |
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(b) | in paragraph (a), for “number and other information” substitute |
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“information prescribed under subsection (1)”, and |
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(c) | in paragraph (b), for “number and other information” substitute |
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“information prescribed under subsection (1) and such other |
| |
information as is prescribed”. |
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“(5) | HMRC may give notice that, in relation to notifiable arrangements |
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specified in the notice, persons are not under the duty under |
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subsection (1) after the date specified in the notice.” |
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6 | For section 316 substitute— |
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“316 | Information to be provided in form and manner specified by HMRC |
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(1) | HMRC may specify the form and manner in which information |
| |
required to be provided by any of the information provisions must |
| |
be provided if the provision is to be complied with. |
| |
(2) | The “information provisions” are sections 308(1) and (3), 309(1), 310, |
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312(2), 312A(2) and 313(1) and (3).” |
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7 (1) | Section 98C of TMA 1970 (penalties for failure to comply with duties under |
| |
Part 7 of FA 2004) is amended as follows. |
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(a) | in paragraph (d), for “312(1)” substitute “312(2)”, and |
| |
(b) | after that paragraph (but before the “and”) insert— |
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“(da) | section 312A(2) (duty of client to notify parties of |
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(a) | for “section 313(1)” substitute “subsection (1) of section 313”, and |
| |
(b) | after “etc.)” insert “or regulations under subsection (3) of that |
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(4) | In subsection (4), for “313(1)” (in both places) substitute “subsection (1) of |
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section 313 or regulations under subsection (3) of that section”. |
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Time limits for assessments, claims etc. |
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| |
1 | TMA 1970 is amended as follows. |
| |
2 | In section 28C(5)(a) (time limit for determination of tax where no return |
| |
delivered and self-assessment superseding determination), for “five years” |
| |
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|
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|
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|
3 | In section 29(4) (assessment where loss of tax discovered), for “is attributable |
| |
to fraudulent or negligent conduct on the part of” substitute “was brought |
| |
about carelessly or deliberately by”. |
| |
4 | In section 30B(5) (amendment of partnership statement where loss of tax |
| |
discovered), for “is attributable to fraudulent or negligent conduct on the |
| |
part of” substitute “was brought about carelessly or deliberately by”. |
| |
5 | In section 33(1) (claim for error or mistake), for “not later than five years after |
| |
the 31st January next following” substitute “not more than 4 years after the |
| |
| |
6 | In section 33A(2) (error or mistake in partnership return), for “not later than |
| |
31st January of Year 6” substitute “not more than 4 years after the end of the |
| |
year of assessment in question, or in which the relevant period ends,”. |
| |
7 (1) | Section 34 (ordinary time limit for assessments) is amended as follows. |
| |
(2) | In subsection (1), for “not later than five years after the 31st January next |
| |
following” substitute “not more than 4 years after the end of”. |
| |
(3) | Accordingly, in the heading, for “six years” substitute “4 years”. |
| |
8 | In section 35 (time limit: income received after year for which it is |
| |
assessable), for “within six years after” substitute “not more than 4 years |
| |
| |
9 (1) | Section 36 (fraudulent or negligent conduct) is amended as follows. |
| |
(2) | For subsection (1) substitute— |
| |
“(1) | An assessment on a person in a case involving a loss of income tax or |
| |
capital gains tax brought about carelessly by the person may be |
| |
made at any time not more than 6 years after the end of the year of |
| |
assessment to which it relates (subject to subsection (1A) and any |
| |
other provision of the Taxes Acts allowing a longer period). |
| |
(1A) | An assessment on a person in a case involving a loss of income tax or |
| |
| |
(a) | brought about deliberately by the person, |
| |
(b) | attributable to a failure by the person to comply with an |
| |
obligation under section 7, or |
| |
(c) | attributable to arrangements in respect of which the person |
| |
has failed to comply with an obligation under section 309, 310 |
| |
or 313 of the Finance Act 2004 (obligation of parties to tax |
| |
avoidance schemes to provide information to Her Majesty’s |
| |
| |
| may be made at any time not more than 20 years after the end of the |
| |
year of assessment to which it relates (subject to any provision of the |
| |
Taxes Acts allowing a longer period). |
| |
(1B) | In subsections (1) and (1A), references to a loss brought about by the |
| |
person who is the subject of the assessment include a loss brought |
| |
about by another person acting on behalf of that person.” |
| |
| |
(a) | for “Where the person in default” substitute “Where the person |
| |
mentioned in subsection (1) or (1A) (“the person in default”)”, and |
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|
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|