Finance Bill

House of Commons

Session 2008 - 09
Internet Publications
Other Bills before Parliament

Finance Bill

Finance Bill
Part 5 — Stamp taxes
42

80
Registered providers of social housing
(1)
Part 4 of FA 2003 (stamp duty land tax) is amended as follows.
(2)
Section 71 (certain acquisitions by registered social landlord) is amended as
follows.
(3)
Insert at the beginning—
5
“(A1)
A land transaction under which the purchaser is a profit-making
registered provider of social housing is exempt from charge if the
transaction is funded with the assistance of a public subsidy.”
(4)
In subsection (4), for “subsection (1)(c)” substitute “this section”.
(5)
Schedule 9 (right to buy etc) is amended as follows.
10
(6)
In paragraph 5 (shared ownership leases: “qualifying body” etc)—
(a)
in sub-paragraph (2), insert at the end—
“(g)
a registered provider of social housing that is not
within paragraph (b) (subject to sub-paragraph
(2A)).”, and
15
(b)
after that sub-paragraph insert—
   “(2A)
A registered provider of social housing within sub-
paragraph (2)(g) (“R”) is only a qualifying body in relation to
a lease of premises if the following has been funded with the
assistance of a grant or other financial assistance under
20
section 19 of the Housing and Regeneration Act 2008—
(a)
the purchase or construction of the premises by R (or
a person connected with R), or
(b)
the adaptation of the premises by R (or a person
connected with R) for use as a dwelling.
25
     (2B)
Section 839 of the Taxes Act 1988 (connected persons) has
effect for the purposes of sub-paragraph (2A).”
(7)
In paragraph 7 (shared ownership trusts: introduction)—
(a)
in sub-paragraph (3), omit “(within the meaning of paragraph 5(2))”,
and
30
(b)
insert at the end—
    “(7)
In Condition 2 “qualifying body” means—
(a)
a qualifying body within the meaning of paragraph
5(2)(a) to (f), or
(b)
a registered provider of social housing within
35
paragraph 5(2)(g) (subject to sub-paragraph (8)).
      (8)
A registered provider of social housing within paragraph
5(2)(g) (“R”) is only a qualifying body in relation to a shared
ownership trust if the following has been or is being funded
with the assistance of a grant or other financial assistance
40
under section 19 of the Housing and Regeneration Act 2008—
(a)
the purchase or construction of the trust property by
R (or a person connected with R), or
(b)
the adaptation of the trust property by R (or a person
connected with R) for use as a dwelling.
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Finance Bill
Part 5 — Stamp taxes
43

      (9)
Section 839 of the Taxes Act 1988 (connected persons) has
effect for the purposes of sub-paragraph (8).”
(8)
The amendments made by this section have effect in relation to transactions
with an effective date on or after the day on which this Act is passed.
81
Rent to shared ownership
5
(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
to shared ownership lease scheme is determined in accordance with
10
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
(“the tenant”) or persons (“the tenants”), and
15
(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
to each other—
20
(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
scheme.
25
      (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.
      (5)
In this paragraph—
30
“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
paragraph 4A.
35
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.
      (2)
A “rent to shared ownership trust scheme” means a scheme or
40
arrangement under which—

Finance Bill
Part 5 — Stamp taxes
44

(a)
a qualifying body grants an assured shorthold tenancy of a
dwelling to a person (“the tenant”) or persons (“the tenants”),
and
(b)
the tenant, or one or more of tenants, subsequently becomes
the purchaser under a shared ownership trust of the
5
dwelling, or another dwelling, under which the qualifying
body is the social landlord.
      (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,
10
(b)
the declaration of the shared ownership trust, and
(c)
any other land transaction between the qualifying body and
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
15
of the shared ownership trust, the possession of the dwelling by the
tenant or tenants pursuant to the assured shorthold tenancy is to be
disregarded.
      (5)
In this paragraph—
“assured shorthold tenancy” has the same meaning as in Part 1
20
of the Housing Act 1988;
“qualifying body” has the same meaning as in paragraph 5;
“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
25
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.
(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
30
82
Stamp taxes in event of insolvency
(1)
Schedule 37 contains provision amending Part 3 (stamp duty) and Part 4
(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
35
question occurs on or after 1 September 2008.
(3)
This section and that Schedule cease to have effect—
(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,
40
and
(b)
in relation to the amendments made to Part 4 of FA 1986, when the
repeal of that Part (by Part 7 of Schedule 19 to, and in accordance with
section 110 of, FA 1990) comes into force.

Finance Bill
Part 6 — Oil
45

Part 6
Oil
83
Capital allowances for oil decommissioning expenditure
Schedule 38 contains provision about capital allowances for oil
decommissioning expenditure.
5
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.
10
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
15
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
20
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
25
ending on or after 22 April 2009.
90
Miscellaneous amendments
Schedule 45 contains miscellaneous amendments relating to oil taxation.

Finance Bill
Part 7 — Administration
46

Part 7
Administration
Standards and values
91
HMRC Charter
(1)
In CRCA 2005, after section 16 insert—
5
“16A
Charter of standards and values
(1)
The Commissioners must prepare a Charter.
(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.
10
(3)
The Commissioners must—
(a)
regularly review the Charter, and
(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
15
reviewing the extent to which Her Majesty’s Revenue and Customs
have demonstrated the standards of behaviour and values included in
the Charter.”
(2)
The duty imposed by section 16A(1) of CRCA 2005 must be complied with
before the end of 2009.
20
92
Duties of senior accounting officers of large companies
(1)
Schedule 46 contains provision about the duties of senior accounting officers of
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
25
passed.
93
Publishing details of deliberate tax defaulters
(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
30
person, and
(b)
the potential lost revenue in relation to the penalty (or the aggregate of
the potential lost revenue in relation to each of the penalties) exceeds
£25,000.
(2)
A “relevant tax penalty” is—
35
(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
of the person,

Finance Bill
Part 7 — Administration
47

(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
notify) in respect of a deliberate failure on the part of the person, or
5
(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.
(3)
“Potential lost revenue”, in relation to a penalty, has the meaning given by—
10
(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.
(4)
The information that may be published is—
(a)
the person’s name (including any trading name, previous name or
15
pseudonym),
(b)
the person’s address (or registered office),
(c)
the nature of any business carried on by the person,
(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
20
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
(f)
any such other information as the Commissioners consider it
appropriate to publish in order to make clear the person’s identity.
25
(5)
The information may be published in any manner that the Commissioners
consider appropriate.
(6)
Before publishing any information the Commissioners—
(a)
must inform the person that they are considering doing so, and
(b)
afford the person reasonable opportunity to make representations
30
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).
(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).
35
(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
under—
(a)
paragraph 10 of Schedule 24 to FA 2007, or
40
(b)
paragraph 13 of Schedule 41 to FA 2008,

(reductions for disclosure) to the full extent permitted.
(11)
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
45
is finally determined, or

Finance Bill
Part 7 — Administration
48

(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.
(12)
The Treasury may by order vary the amount for the time being specified in
5
subsection (1).
(13)
This section comes into force on a day appointed by order made by the
Treasury.
(14)
Orders under this section are to be made by statutory instrument.
(15)
A statutory instrument containing an order under subsection (12) is subject to
10
annulment in pursuance of a resolution of the House of Commons.
(16)
In this section “the Commissioners” means the Commissioners for Her
Majesty’s Revenue and Customs.
Information etc
94
Amendment of information and inspection powers
15
(1)
Schedule 47 contains amendments of Schedule 36 to FA 2008 (information and
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
20
Schedule 47.
(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).
25
(4)
An order under this section is to be made by statutory instrument.
(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
30
powers: meaning of “tax”), for paragraph (e) (and the “and” before it)
substitute—
“(e)
insurance premium tax,
(f)
inheritance tax,
(g)
stamp duty land tax,
35
(h)
stamp duty reserve tax,
(i)
petroleum revenue tax,
(j)
aggregates levy,
(k)
climate change levy,
(l)
landfill tax, and
40
(m)
relevant foreign tax,”.