Finance Bill

House of Commons

Session 2008 - 09
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Other Bills before Parliament

Finance Bill

Finance Bill
Schedule 51 — Time limits for assessments, claims etc
372

(b)
if the inaccuracy was deliberate, the permitted period is
extended to 20 years.”
      (5)
Omit sub-paragraph (11).
      (6)
Insert at the end—
   “(12)
For the purposes of this section, an inaccuracy in a statement or
5
declaration made by the responsible person (or a person acting on
behalf of the responsible person) is careless if it is due to a failure
by the person to take reasonable care.
     (13)
An inaccuracy in a statement or declaration made by the
responsible person (or a person acting on behalf of the responsible
10
person) is to be treated as careless if—
(a)
the responsible person, the person who acted on behalf of
the responsible person or any person who becomes the
responsible person for the oil field after the statement or
declaration is made discovers the inaccuracy some time
15
after it is made, and
(b)
that person fails to take reasonable steps to inform Her
Majesty’s Revenue and Customs.”
25    (1)
Schedule 6 (allowance of expenditure (other than abortive exploration
expenditure) on claim by participator) is amended as follows.
20
      (2)
In paragraph 1(2) (claim period), for “six years” substitute “4 years”.
      (3)
In paragraph 2 (applying provisions of Schedule 5), in the Table, in the entry
relating to paragraph 9 of Schedule 5, omit the words in the second column.
26
In paragraph 1(3) of Schedule 7 (allowance of abortive exploration
expenditure), in the Table, in the entry relating to paragraph 9 of Schedule 5,
25
in the second column omit—
(a)
the words “In sub-paragraph (1C) omit paragraph (c)” and “omit
sub-paragraph (2A)”, and
(b)
the words from “and in sub-paragraph (11)” to the end.
Aggregates levy
30
27
Part 2 of FA 2001 (aggregates levy) is amended as follows.
28
In section 32(1) (repayments of overpaid aggregates levy), for “three years”
substitute “4 years”.
29    (1)
Paragraph 4 of Schedule 5 (time limits for assessments) is amended as
follows.
35
      (2)
In sub-paragraph (1)(b), for “three years” substitute “4 years”.
      (3)
For sub-paragraph (3) substitute—
    “(3)
An assessment of an amount due from a person in a case involving
a loss of aggregates levy—
(a)
brought about deliberately by the person (or by another
40
person acting on that person’s behalf), or

Finance Bill
Schedule 51 — Time limits for assessments, claims etc
373

(b)
attributable to a failure by the person to comply with an
obligation under section 24(2) or paragraph 1 of Schedule
4,

may be made at any time not more than 20 years after the end of
the accounting period to which it relates (subject to sub-paragraph
5
(4)).
     (3A)
In sub-paragraph (3)(a) the reference to a loss brought about
deliberately by the person includes a loss brought about as a result
of a deliberate inaccuracy in a document given to Her Majesty’s
Revenue and Customs by or on behalf of that person.”
10
      (4)
In sub-paragraph (4)—
(a)
in paragraph (a), for “three years” substitute “4 years”, and
(b)
omit paragraph (b) (and the “and” before it).
30
In paragraph 2(10) of Schedule 8 (interest payable by Commissioners), for
“three years” substitute “4 years”.
15
31    (1)
Paragraph 4 of Schedule 10 (time limits on penalty assessments) is amended
as follows.
      (2)
In sub-paragraph (1), for “three years” substitute “4 years”.
      (3)
For sub-paragraph (2) substitute—
    “(2)
An assessment of a person to a civil penalty in a case involving a
20
loss of aggregates levy—
(a)
brought about deliberately by the person (or by another
person acting on that person’s behalf), or
(b)
attributable to a failure by the person to comply with an
obligation under section 24(2) or paragraph 1 of Schedule
25
4,

may be made at any time not more than 20 years after the conduct
to which the penalty relates (subject to sub-paragraph (3)).
     (2A)
In sub-paragraph (2)(a) the reference to a loss brought about
deliberately by the person includes a loss brought about as a result
30
of a deliberate inaccuracy in a document given to Her Majesty’s
Revenue and Customs by or on behalf of that person.”
      (4)
In sub-paragraph (3)—
(a)
in paragraph (a), for “three years” substitute “4 years”, and
(b)
omit paragraph (b) (and the “and” before it).
35
Climate change levy
32
Schedule 6 to FA 2000 (climate change levy) is amended as follows.
33
In paragraph 64(1) (repayments of overpaid climate change levy), for “three
years” substitute “4 years”.
34
In paragraph 66(10) (interest payable by the Commissioners), for “three
40
years” substitute “4 years”.
35    (1)
Paragraph 80 (time limits for assessments) is amended as follows.
      (2)
In sub-paragraph (1)(b), for “three years” substitute “4 years”.

Finance Bill
Schedule 51 — Time limits for assessments, claims etc
374

      (3)
For sub-paragraph (3) substitute—
    “(3)
An assessment of an amount due from a person in a case involving
a loss of levy—
(a)
brought about deliberately by the person (or by another
person acting on that person’s behalf), or
5
(b)
attributable to a failure by the person to comply with an
obligation under paragraph 53 or 55,

may be made at any time not more than 20 years after the end of
the accounting period to which it relates (subject to sub-paragraph
(4)).
10
     (3A)
In sub-paragraph (3)(a) the reference to a loss brought about
deliberately by the person includes a loss brought about as a result
of a deliberate inaccuracy in a document given to Her Majesty’s
Revenue and Customs by or on behalf of that person.”
      (4)
In sub-paragraph (4)—
15
(a)
in paragraph (a), for “three years” substitute “4 years”, and
(b)
omit paragraph (b) (and the “and” before it).
36    (1)
Paragraph 108 (time limits on penalty assessments) is amended as follows.
      (2)
In sub-paragraph (1), for “three years” substitute “4 years”.
      (3)
For sub-paragraph (2) substitute—
20
    “(2)
An assessment of a person to a penalty in a case involving a loss of
levy—
(a)
brought about deliberately by the person (or by another
person acting on that person’s behalf), or
(b)
attributable to a failure by the person to comply with an
25
obligation under paragraph 53 or 55,

may be made at any time not more than 20 years after the conduct
to which the penalty relates (subject to sub-paragraph (3)).
     (2A)
In sub-paragraph (2)(a) the reference to a loss brought about
deliberately by the person includes a loss brought about as a result
30
of a deliberate inaccuracy in a document given to Her Majesty’s
Revenue and Customs by or on behalf of that person.”
      (4)
In sub-paragraph (3)—
(a)
in paragraph (a), for “three years” substitute “4 years”, and
(b)
omit paragraph (b) (and the “and” before it).
35
Landfill tax
37
Schedule 5 to FA 1996 (landfill tax) is amended as follows.
38
In paragraph 14(4) (recovery of overpaid tax), for “three years” substitute “4
years”.
39
In paragraph 29(8) (interest payable by Commissioners), for “three years”
40
substitute “4 years”.
40    (1)
Paragraph 33 (assessments: time limits) is amended as follows.
      (2)
In sub-paragraph (1)—

Finance Bill
Schedule 51 — Time limits for assessments, claims etc
375

(a)
for “three years” (in the first place) substitute “4 years”, and
(b)
for the words from “the end of” to the end substitute “the relevant
event”.
      (3)
After that sub-paragraph insert—
   “(1A)
In this paragraph “the relevant event”, in relation to an
5
assessment, means—
(a)
the end of the accounting period concerned, or
(b)
in the case of an assessment under paragraph 32 of an
amount due by way of a penalty other than a penalty
referred to in paragraph 32(2), the event giving rise to the
10
penalty.”
      (4)
In sub-paragraph (3), for “sub-paragraph (1)” substitute “sub-paragraph
(1A)”.
      (5)
For sub-paragraph (4) substitute—
    “(4)
An assessment of an amount due from a person in a case involving
15
a loss of tax—
(a)
brought about deliberately by the person (or by another
person acting on that person’s behalf), or
(b)
attributable to a failure by the person to comply with an
obligation under section 47(2) or (3),
20

may be made at any time not more than 20 years after the relevant
event (subject to sub-paragraph (5)).
     (4A)
In sub-paragraph (4)(a) the reference to a loss brought about
deliberately by the person includes a loss brought about as a result
of a deliberate inaccuracy in a document given to Her Majesty’s
25
Revenue and Customs by or on behalf of that person.”
      (6)
In sub-paragraph (5)—
(a)
in paragraph (a), for “three years” substitute “4 years”, and
(b)
omit paragraph (b) (and the “and” before it).
Minor and consequential provision
30
41
In section 36 of TMA 1970 (loss of tax brought about carelessly or
deliberately etc), in subsections (2) and (3), for “for the purpose” substitute
“in a case”.
42
In Schedule 39 to FA 2008, omit paragraph 66 (saving for provisions of TMA
1970 as applied by OTA 1975).
35
43
In consequence of the amendments made by this Schedule, omit—
(a)
in FA 1990, section 122, and
(b)
in FA 1997, in Schedule 5, paragraph 6(2)(b) and (c).