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Finance Bill


Finance Bill
Part 7 — Administration

49

 

(b)   

make provision modifying an enactment or instrument (whenever

passed or made).

(5)   

“Modifying” includes amending, repealing or revoking.

(6)   

An order under this section is to be made by statutory instrument.

(7)   

A statutory instrument containing an order under this section is subject to

5

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

Interest

100     

Late payment interest on sums due to HMRC

(1)   

This section applies to any amount that is payable by a person to HMRC under

or by virtue of an enactment.

10

(2)   

But this section does not apply to—

(a)   

an amount of corporation tax,

(b)   

an amount of petroleum revenue tax, or

(c)   

an amount of any description specified in an order made by the

Treasury.

15

(3)   

An amount to which this section applies carries interest at the late payment

interest rate from the late payment interest start date until the date of payment.

(4)   

The late payment interest start date in respect of any amount is the date on

which that amount becomes due and payable.

(5)   

In Schedule 53

20

(a)   

Part 1 makes special provision as to the amount on which late payment

interest is calculated,

(b)   

Part 2 makes special provision as to the late payment interest start date,

(c)   

Part 3 makes special provision as to the date to which late payment

interest runs, and

25

(d)   

Part 4 makes provision about the effect that the giving of a relief has on

late payment interest.

(6)   

Subsection (3) applies even if the late payment interest start date is a non-

business day within the meaning of section 92 of the Bills of Exchange Act 1882.

(7)   

Late payment interest is to be paid without any deduction of income tax.

30

(8)   

Late payment interest is not payable on late payment interest.

(9)   

For the purposes of this section any reference to the payment of an amount to

HMRC includes a reference to its being set off against an amount payable by

HMRC (and, accordingly, the reference to the date on which an amount is paid

includes a reference to the date from which the set-off takes effect).

35

101     

Repayment interest on sums to be paid by HMRC

(1)   

This section applies to—

(a)   

any amount that is payable by HMRC to any person under or by virtue

of an enactment, and

 
 

Finance Bill
Part 7 — Administration

50

 

(b)   

a relevant amount paid by a person to HMRC that is repaid by HMRC

to that person or to another person.

(2)   

But this section does not apply to—

(a)   

an amount constituting a repayment of corporation tax,

(b)   

an amount constituting a repayment of petroleum revenue tax, or

5

(c)   

an amount of any description specified in an order made by the

Treasury.

(3)   

An amount to which this section applies carries interest at the repayment

interest rate from the repayment interest start date until the date on which the

payment or repayment is made.

10

(4)   

In Schedule 54

(a)   

Parts 1 and 2 define the repayment interest start date, and

(b)   

Part 3 makes supplementary provision.

(5)   

Subsection (3) applies even if the repayment interest start date is a non-

business day within the meaning of section 92 of the Bills of Exchange Act 1882.

15

(6)   

Repayment interest is not payable on an amount payable in consequence of an

order or judgment of a court having power to allow interest on the amount.

(7)   

Repayment interest is not payable on repayment interest.

(8)   

For the purposes of this section—

(a)   

“relevant amount” means any sum that was paid in connection with

20

any liability (including any purported or anticipated liability) to make

a payment to HMRC under or by virtue of an enactment, and

(b)   

any reference to the payment or repayment of an amount by HMRC

includes a reference to its being set off against an amount owed to

HMRC (and, accordingly, the reference to the date on which an amount

25

is paid or repaid by HMRC includes a reference to the date from which

the set-off takes effect).

102     

Rates of interest

(1)   

The late payment interest rate is the rate provided for in regulations made by

the Treasury under this subsection.

30

(2)   

The repayment interest rate is the rate provided for in regulations made by the

Treasury under this subsection.

(3)   

Regulations under subsection (1) or (2)—

(a)   

may make different provision for different purposes,

(b)   

may either themselves specify a rate of interest or make provision for

35

such a rate to be determined (and to change from time to time) by

reference to such rate, or the average of such rates, as may be referred

to in the regulations,

(c)   

may provide for rates to be reduced below, or increased above, what

they otherwise would be by specified amounts or by reference to

40

specified formulae,

(d)   

may provide for rates arrived at by reference to averages to be rounded

up or down,

(e)   

may provide for circumstances in which alteration of a rate of interest

is or is not to be take place, and

45

 
 

Finance Bill
Part 7 — Administration

51

 

(f)   

may provide that alterations of rates are to have effect for periods

beginning on or after a day determined in accordance with the

regulations in relation to interest running from before that day as well

as from or from after that day.

103     

Supplementary

5

(1)   

In sections 100 to 102

“HMRC” means Her Majesty’s Revenue and Customs;

“late payment interest” means interest payable under section 100;

“repayment interest” means interest payable under section 101;

“revenue” has the meaning given in section 5(4) of CRCA 2005.

10

(2)   

A reference to the date on which an amount becomes due and payable is a

reference to the date (however described) on or before which the amount must

be paid.

(3)   

Sections 100 to 102 come into force on such day as the Treasury may by order

appoint.

15

(4)   

An order under subsection (3)—

(a)   

may commence a provision generally or only for specified purposes,

and

(b)   

may appoint different days for different provisions or for different

purposes.

20

(5)   

The Treasury may by order make any incidental, supplemental, consequential,

transitional, transitory or saving provision which may appear appropriate in

consequence of, or otherwise in connection with, those sections.

(6)   

An order under subsection (5) may include provision amending, repealing or

revoking any provision of any Act or subordinate legislation whenever passed

25

or made (including this Act and any Act amended by it).

(7)   

An order under subsection (5) may make different provision for different

purposes.

(8)   

The following are to be made by statutory instrument—

(a)   

orders under section 100(2) or 101(2),

30

(b)   

regulations under section 102(1) or (2), and

(c)   

orders under subsection (3) or (5).

(9)   

A statutory instrument containing—

(a)   

an order under section 100(2) or 101(2),

(b)   

regulations under section 102(1) or (2),

35

(c)   

an order under subsection (5) which includes provision amending or

repealing any provision of an Act,

   

is subject to annulment in pursuance of a resolution of the House of Commons.

104     

Miscellaneous amendments

(1)   

Section 239 of ITA 2007 (date from which interest is chargeable when EIS relief

40

is withdrawn or reduced) is amended as follows.

(2)   

In subsection (1)—

 
 

Finance Bill
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52

 

(a)   

for “in column 1 of the following table” substitute “in subsection (2)”,

(b)   

for “given by the corresponding entry in column 2 of the table”

substitute “31 January next following the tax year for which the

assessment is made”, and

(c)   

omit the table.

5

(3)   

For subsection (2) substitute—

“(2)   

The provisions are—

section 163,

section 164,

section 173A,

10

any of sections 181 to 188,

section 209,

section 212(1),

section 213,

section 224,

15

section 232, and

section 233.”

(4)   

The following provisions (which require HMRC to make an order specifying

the new rate of interest when that rate is changed by operation of regulations)

are omitted—

20

(a)   

section 178(5) of FA 1989, and

(b)   

section 197(5) of FA 1996.

Penalties

105     

Penalties for failure to make returns etc

(1)   

Schedule 55 contains provision for imposing penalties on persons in respect of

25

failures to make returns and other documents relating to liabilities for tax.

(2)   

That Schedule comes into force on such day as the Treasury may by order

appoint.

(3)   

An order under subsection (2)—

(a)   

may commence a provision generally or only for specified purposes,

30

and

(b)   

may appoint different days for different provisions or for different

purposes.

(4)   

The Treasury may by order make any incidental, supplemental, consequential,

transitional, transitory or saving provision which may appear appropriate in

35

consequence of, or otherwise in connection with, Schedule 55.

(5)   

An order under subsection (4) may include provision amending, repealing or

revoking any provision of any Act or subordinate legislation whenever passed

or made (including this Act and any Act amended by it).

(6)   

An order under subsection (4) may make different provision for different

40

purposes.

(7)   

An order under this section is to be made by statutory instrument.

 
 

Finance Bill
Part 7 — Administration

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(8)   

A statutory instrument containing an order under subsection (4) which

includes provision amending or repealing any provision of an Act is subject to

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

106     

Penalties for failure to pay tax

(1)   

Schedule 56 contains provision for imposing penalties on persons in respect of

5

failures to comply with obligations to pay tax.

(2)   

That Schedule comes into force on such day as the Treasury may by order

appoint.

(3)   

An order under subsection (2)—

(a)   

may commence a provision generally or only for specified purposes,

10

and

(b)   

may appoint different days for different provisions or for different

purposes.

(4)   

The Treasury may by order make any incidental, supplemental, consequential,

transitional, transitory or saving provision which may appear appropriate in

15

consequence of, or otherwise in connection with, Schedule 56.

(5)   

An order under subsection (4) may include provision amending, repealing or

revoking any provision of any Act or subordinate legislation whenever passed

or made (including this Act and any Act amended by it).

(6)   

An order under subsection (4) may make different provision for different

20

purposes.

(7)   

An order under this section is to be made by statutory instrument.

(8)   

A statutory instrument containing an order under subsection (4) which

includes provision amending or repealing any provision of an Act is subject to

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

25

107     

Suspension of penalties during currency of agreement for deferred payment

(1)   

This section applies if—

(a)   

a person (“P”) fails to pay an amount of tax falling within the Table in

subsection (5) when it becomes due and payable,

(b)   

before the date on which P becomes liable to any penalty for that

30

failure, P makes a request to an officer of Revenue and Customs that

payment of the amount of tax be deferred, and

(c)   

whether before or after that date, an officer of Revenue and Customs

agrees that payment of that amount may be deferred for a period (“the

deferral period”).

35

(2)   

P is not liable to a penalty for failing to pay the amount mentioned in

subsection (1) if—

(a)   

the penalty falls within the Table, and

(b)   

P would (apart from this subsection) become liable to it during the

deferral period.

40

(3)   

But if—

(a)   

P breaks the agreement (see subsection (4)), and

 
 

Finance Bill
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54

 

(b)   

an officer of Revenue and Customs serves on P a notice specifying any

penalty to which P would become liable apart from subsection (2),

   

P becomes liable, at the date of the notice, to that penalty.

(4)   

P breaks an agreement if—

(a)   

P fails to pay the amount of tax in question when the deferral period

5

ends, or

(b)   

the deferral is subject to P complying with a condition (including a

condition that part of the amount be paid during the deferral period)

and P fails to comply with it.

(5)   

The taxes and penalties referred to in subsections (1) and (2) are—

10

 

Tax

Penalty

 
 

Income tax or capital gains tax

Surcharge under section 59C(2) or (3) of TMA

 
  

1970

 
 

Value added tax

Surcharge under section 59(4) or 59A(4) of

 
  

VATA 1994

 

15

 

Aggregates levy

Penalty interest under paragraph 5 of Schedule

 
  

5 to FA 2001

 
 

Climate change levy

Penalty interest under paragraph 82 of

 
  

Schedule 6 to FA 2000

 
 

Landfill tax

Penalty interest under paragraph 27(2) of

 

20

  

Schedule 5 to FA 1996

 
 

Insurance premium tax

Penalty under paragraph 15(2) or (3) of

 
  

Schedule 7 to FA 1994 which is payable by

 
  

virtue of paragraph 15(1)(a) of that Schedule.

 
 

Any duty of excise

Penalty under section 9(2) or (3) of FA 1994

 

25

  

which is imposed for a failure to pay an amount

 
  

of any duty of excise or an amount payable on

 
  

account of any such duty.

 

(6)   

If the agreement mentioned in subsection (1)(c) is varied at any time by a

further agreement between P and an officer of Revenue and Customs, this

30

section applies from that time to the agreement as varied.

(7)   

The Treasury may by order amend the Table by adding or removing a tax or a

penalty.

(8)   

An order under subsection (7) is to be made by statutory instrument.

(9)   

A statutory instrument containing an order under subsection (7) is subject to

35

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

(10)   

In this section, except in the entries in the Table, “penalty” includes surcharge

and penalty interest.

(11)   

This section has effect where the agreement mentioned in subsection (1)(c) is

made on or after 24 November 2008.

40

 
 

 
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