Finance Bill

House of Commons

Session 2008 - 09
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Other Bills before Parliament

Finance Bill

Finance Bill
Part 5 — Stamp taxes
42

81
Rent to shared ownership
(1)
In Schedule 9 to FA 2003 (stamp duty land tax: right to buy etc), insert at the
end—
“Rent to shared ownership lease: charge to tax
13    (1)
The chargeable consideration for transactions forming part of a rent
5
to shared ownership lease scheme is determined in accordance with
this paragraph.
      (2)
A “rent to shared ownership lease scheme” means a scheme or
arrangement under which a qualifying body—
(a)
grants an assured shorthold tenancy of a dwelling to a person
10
(“the tenant”) or persons (“the tenants”), and
(b)
subsequently grants a shared ownership lease of the
dwelling or another dwelling to the tenant or one or more of
the tenants.
      (3)
The following transactions are to be treated as if they were not linked
15
to each other—
(a)
the grant of the assured shorthold tenancy,
(b)
the grant of the shared ownership lease, and
(c)
any other land transaction between the qualifying body and
the tenant, or any of the tenants, entered into as part of the
20
scheme.
      (4)
For the purpose of determining the effective date of the grant of the
shared ownership lease, the possession of the dwelling by the tenant
or tenants pursuant to the assured shorthold tenancy is to be
disregarded.
25
      (5)
In this paragraph—
“assured shorthold tenancy” has the same meaning as in Part 1
of the Housing Act 1988;
“qualifying body” has the same meaning as in paragraph 5;
“shared ownership lease” has the same meaning as in
30
paragraph 4A.
Rent to shared ownership trust: charge to tax
14    (1)
The chargeable consideration for transactions forming part of a rent
to shared ownership trust scheme is determined in accordance with
this paragraph.
35
      (2)
A “rent to shared ownership trust scheme” means a scheme or
arrangement under which—
(a)
a qualifying body grants an assured shorthold tenancy of a
dwelling to a person (“the tenant”) or persons (“the tenants”),
and
40
(b)
the tenant, or one or more of tenants, subsequently becomes
the purchaser under a shared ownership trust of the
dwelling, or another dwelling, under which the qualifying
body is the social landlord.

Finance Bill
Part 6 — Oil
43

      (3)
The following transactions are to be treated as if they were not linked
to each other—
(a)
the grant of the assured shorthold tenancy,
(b)
the declaration of the shared ownership trust, and
(c)
any other land transaction between the qualifying body and
5
the tenant, or any of the tenants, entered into as part of the
scheme.
      (4)
For the purpose of determining the effective date of the declaration
of the shared ownership trust, the possession of the dwelling by the
tenant or tenants pursuant to the assured shorthold tenancy is to be
10
disregarded.
      (5)
In this paragraph—
“assured shorthold tenancy” has the same meaning as in Part 1
of the Housing Act 1988;
“qualifying body” has the same meaning as in paragraph 5;
15
“social landlord” and “purchaser”, in relation to a shared
ownership trust, have the same meaning as in paragraph 7.”
(2)
The amendment made by this section has effect in relation to cases in which the
effective date of the grant of the shared ownership lease or the declaration of
the shared ownership trust is on or after 22 April 2009.
20
(3)
Paragraphs 13(4) and 14(4) of Schedule 9 to FA 2003 (inserted by this section)
have effect for the purposes of subsection (2).
Stock lending arrangements
82
Stamp taxes in the event of insolvency
(1)
Schedule 37 contains provision amending Part 3 (stamp duty) and Part 4
25
(stamp duty reserve tax) of FA 1986 in respect of repurchase and stock lending
arrangements in the event of the insolvency of one of the parties.
(2)
The amendments made by that Schedule have effect where the insolvency in
question occurs on or after 1 September 2008.
(3)
This section and that Schedule cease to have effect—
30
(a)
in relation to the amendments made to Part 3 of FA 1986, when the
repeal of sections 80 to 85 of that Act (by Part 6 of Schedule 19 to, and
in accordance with sections 107 to 109 of, FA 1990) comes into force,
and
(b)
in relation to the amendments made to Part 4 of FA 1986, when the
35
repeal of that Part (by Part 7 of Schedule 19 to, and in accordance with
section 110 of, FA 1990) comes into force.
Part 6
Oil
83
Capital allowances for oil decommissioning expenditure
40
Schedule 38 contains provision about capital allowances for oil
decommissioning expenditure.

Finance Bill
Part 7 — Administration
44

84
Blended oil
Schedule 39 contains provision about the treatment of blended oil for the
purposes of petroleum revenue tax.
85
Chargeable gains
Schedule 40 contains provision about chargeable gains in oil trades.
5
86
Oil assets put to other uses
Schedule 41 contains provision about oil production assets put to certain other
uses.
87
Former licensees and former oil fields
Schedule 42 contains provision about the treatment of certain former licensees
10
and former oil fields for the purposes of petroleum revenue tax.
88
Abolition of provisional expenditure allowance
Schedule 43 contains provision abolishing provisional expenditure allowance.
89
Supplementary charge: reduction for certain new oil fields
(1)
Schedule 44 contains provision for the reduction of the supplementary charge
15
under section 501A of ICTA on companies that are, or have been, licensees in
new oil fields.
(2)
In section 501A of ICTA, after subsection (11) insert—
“(12)
This section is subject to Schedule 44 to the Finance Act 2009.”
(3)
This section and Schedule 44 have effect in relation to accounting periods
20
ending on or after 22 April 2009.
90
Miscellaneous amendments
Schedule 45 contains miscellaneous amendments relating to oil taxation.
Part 7
Administration
25
Standards and values
91
HMRC Charter
(1)
In CRCA 2005, after section 16 insert—
“16A
Charter of standards and values
(1)
The Commissioners must prepare a Charter.
30

Finance Bill
Part 7 — Administration
45

(2)
The Charter must include standards of behaviour and values to which
Her Majesty’s Revenue and Customs will aspire when dealing with
people in the exercise of their functions.
(3)
The Commissioners must—
(a)
regularly review the Charter, and
5
(b)
publish revisions, or revised versions, of it when they consider
it appropriate to do so.
(4)
The Commissioners must, at least once every year, make a report
reviewing the extent to which Her Majesty’s Revenue and Customs
have demonstrated the standards of behaviour and values included in
10
the Charter.”
(2)
The duty imposed by section 16A(1) of CRCA 2005 must be complied with
before the end of 2009.
92
Duties of senior accounting officers of large companies
(1)
Schedule 46 contains provision about the duties of senior accounting officers of
15
large companies.
(2)
That Schedule has effect in relation to financial years (within the meaning of
the Companies Act 2006) beginning on or after the day on which this Act is
passed.
93
Publishing details of deliberate tax defaulters
20
(1)
The Commissioners may publish information about any person if—
(a)
in consequence of an investigation conducted by the Commissioners,
one or more relevant tax penalties is found to have been incurred by the
person, and
(b)
the potential lost revenue in relation to the penalty (or the aggregate of
25
the potential lost revenue in relation to each of the penalties) exceeds
£25,000.
(2)
A “relevant tax penalty” is—
(a)
a penalty under paragraph 1 of Schedule 24 to FA 2007 (inaccuracy in
taxpayer’s document) in respect of a deliberate inaccuracy on the part
30
of the person,
(b)
a penalty under paragraph 1A of that Schedule (inaccuracy in
taxpayer’s document attributable to deliberate supply of false
information or deliberate withholding of information by person),
(c)
a penalty under paragraph 1 of Schedule 41 to FA 2008 (failure to
35
notify) in respect of a deliberate failure on the part of the person, or
(d)
a penalty under paragraph 2 (unauthorised VAT invoice), 3 (putting
product to use attracting higher duty etc) or 4 (handling goods subject
to unpaid excise duty) of that Schedule in respect of deliberate action
by the person.
40
(3)
“Potential lost revenue”, in relation to a penalty, has the meaning given by—
(a)
paragraphs 5 to 8 of Schedule 24 to FA 2007, or
(b)
paragraphs 7 to 11 of Schedule 41 to FA 2008,

in relation to the inaccuracy, failure or action to which the penalty relates.

Finance Bill
Part 7 — Administration
46

(4)
The information that may be published is—
(a)
the person’s name (including any trading name, previous name or
pseudonym),
(b)
the person’s address (or registered office),
(c)
the nature of any business carried on by the person,
5
(d)
the amount of the penalty or penalties and the potential lost revenue in
relation to the penalty (or the aggregate of the potential lost revenue in
relation to each of the penalties),
(e)
the periods or times to which the inaccuracy, failure or action giving
rise to the penalty (or any of the penalties) relates, and
10
(f)
any such other information as the Commissioners consider it
appropriate to publish in order to make clear the person’s identity.
(5)
The information may be published in any manner that the Commissioners
consider appropriate.
(6)
Before publishing any information the Commissioners—
15
(a)
must inform the person that they are considering doing so, and
(b)
afford the person reasonable opportunity to make representations
about whether it should be published.
(7)
No information may be published before the day when the penalty becomes
final (or the latest day when any of the penalties becomes final).
20
(8)
No information may be published for the first time after the end of the period
of one year beginning with that day (or that latest day).
(9)
No information may be published (or continue to be published) after the end
of the period of one year beginning with the day on which it is first published.
(10)
No information may be published if the amount of the penalty is reduced
25
under—
(a)
paragraph 10(3) or (5) of Schedule 24 to FA 2007, or
(b)
paragraph 13(1) or (3) of Schedule 41 to FA 2008,

(unprompted disclosure) to the full extent permitted.
(11)
No information may be published if—
30
(a)
the amount of the penalty is reduced under paragraph 10(4) or (6) of
Schedule 24 to FA 2007 or paragraph 13(2) or (4) of Schedule 41 to FA
2008 (prompted disclosure) to the full extent permitted, and
(b)
the reduction is attributable to a disclosure made at such time as the
Commissioners, having regard to the circumstances of the case,
35
consider makes it inappropriate to publish the information.
(12)
For the purposes of this section, a penalty becomes final—
(a)
if it has been assessed, when the time for any appeal or further appeal
relating to it expires or, if later, any appeal or final appeal relating to it
is finally determined, or
40
(b)
if a contract is made between the Commissioners and the person under
which the Commissioners undertake not to assess the penalty or (if it
has been assessed) not to take proceedings to recover it, at the time
when the contract is made.
(13)
The Treasury may by order vary the amount for the time being specified in
45
subsection (1).

Finance Bill
Part 7 — Administration
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(14)
This section comes into force on a day appointed by order made by the
Treasury.
(15)
Orders under this section are to be made by statutory instrument.
(16)
A statutory instrument containing an order under subsection (13) is subject to
annulment in pursuance of a resolution of the House of Commons.
5
(17)
In this section “the Commissioners” means the Commissioners for Her
Majesty’s Revenue and Customs.
Information etc
94
Amendment of information and inspection powers
(1)
Schedule 47 contains amendments of Schedule 36 to FA 2008 (information and
10
inspection powers).
(2)
The Treasury may by order make any incidental, supplemental, consequential,
transitional or transitory provision or saving which appears appropriate in
consequence of, or otherwise in connection with, Schedule 36 to FA 2008 or
Schedule 47.
15
(3)
An order under this section may—
(a)
make different provision for different purposes, and
(b)
make provision amending, repealing or revoking an enactment or
instrument (whenever passed or made).
(4)
An order under this section is to be made by statutory instrument.
20
(5)
A statutory instrument containing an order under this section is subject to
annulment in pursuance of a resolution of the House of Commons.
95
Extension of information and inspection powers to further taxes
(1)
In paragraph 63(1) of Schedule 36 to FA 2008 (information and inspection
powers: meaning of “tax”), for paragraph (e) (and the “and” before it)
25
substitute—
“(e)
insurance premium tax,
(f)
inheritance tax,
(g)
stamp duty land tax,
(h)
stamp duty reserve tax,
30
(i)
petroleum revenue tax,
(j)
aggregates levy,
(k)
climate change levy,
(l)
landfill tax, and
(m)
relevant foreign tax,”.
35
(2)
Schedule 48 contains further amendments of that Schedule.
(3)
The amendments made by this section and Schedule 48 come into force on such
day as the Treasury may by order appoint.
(4)
An order under subsection (3) may—
(a)
appoint different days for different purposes, and
40

Finance Bill
Part 7 — Administration
48

(b)
contain transitional provision and savings.
(5)
The Treasury may by order make any incidental, supplemental, consequential,
transitional or transitory provision or saving which appears appropriate in
consequence of, or otherwise in connection with, this section and Schedule 48.
(6)
An order under subsection (5) may—
5
(a)
make different provision for different purposes, and
(b)
make provision amending, repealing or revoking an enactment or
instrument (whenever passed or made).
(7)
An order under this section is to be made by statutory instrument.
(8)
A statutory instrument containing an order under subsection (5) is subject to
10
annulment in pursuance of a resolution of the House of Commons.
96
Powers to obtain contact details for debtors
Schedule 49 contains provision about the powers of officers of Revenue and
Customs to obtain contact details of debtors.
97
Record-keeping
15
(1)
Schedule 50 contains provision about the obligations to keep records.
(2)
The amendments made by that Schedule come into force on such day as the
Treasury may by order made by statutory instrument appoint.
Assessments, claims etc
98
Time limits for assessments, claims etc
20
(1)
Schedule 51 contains provision about time limits for assessments, claims etc.
(2)
The amendments made by that Schedule come into force on such day as the
Treasury may by order made by statutory instrument appoint.
(3)
An order under subsection (2)—
(a)
may make different provision for different purposes, and
25
(b)
may include transitional provision and savings.
99
Recovery of overpaid tax etc
(1)
Schedule 52 contains provision for and in connection with the recovery of
overpaid income tax, capital gains tax and corporation tax.
(2)
The amendments made by that Schedule have effect in relation to claims made
30
on or after 1 April 2010.
(3)
The Treasury may by order make any incidental, supplemental, consequential,
transitional or transitory provision or saving which appears appropriate in
consequence of, or otherwise in connection with, that Schedule.
(4)
An order under this section may—
35
(a)
make different provision for different purposes, and