Schedule 55 · Finance Act 2009

Contents

Schedule 55 · Penalty for failure to make returns etc

Penalty for failure to make returns etc

(1)

(1)A penalty is payable by a person (“P”) where P fails to make or deliver a return, or to deliver any other document, specified in the Table below on or before the filing date.

(2)Paragraphs 2 to 1313J set out—

(a)the circumstances in which a penalty is payable, and

(b)subject to paragraphs 14 to 17, the amount of the penalty.

(3)If P's failure falls within more than one paragraph of this Schedule, P is liable to a penalty under each of those paragraphs (but this is subject to paragraph 17(3)).

(4)In this Schedule—• “filing date”, in relation to a return or other document, means the date by which it is required to be made or delivered to HMRC ^note...;• “penalty date”, in relation to a return or other document falling within any of items 1 to 32A and 5 to 13B in the Table, means the date on which a penalty is first payable for failing to make or deliver it (that is to say, the day after the filing date).

(4A)The Treasury may by order make such amendments to item 4 in the Table as they think fit in consequence of any amendment, revocation or re-enactment of the regulations mentioned in that item.

(5)In the provisions of this Schedule which follow the Table—

(a)any reference to a return includes a reference to any other document specified in the Table, and

(b)any reference to making a return includes a reference to delivering a return or to delivering any such document.

Amount of penalty: occasional returns and annual returnsAmount of penalty: occasional returns and returns for periods of 6 months or more

(2)

(3)P is liable to a penalty under this paragraph of £100.

(4)

(1)P is liable to a penalty under this paragraph if (and only if)—

(a)P's failure continues after the end of the period of 3 months beginning with the penalty date,

(b)HMRC decide that such a penalty should be payable, and

(c)HMRC give notice to P specifying the date from which the penalty is payable.

(2)The penalty under this paragraph is £10 for each day that the failure continues during the period of 90 days beginning with the date specified in the notice given under sub-paragraph (1)(c).

(3)The date specified in the notice under sub-paragraph (1)(c)—

(a)may be earlier than the date on which the notice is given, but

(b)may not be earlier than the end of the period mentioned in sub-paragraph (1)(a).

(5)

(1)P is liable to a penalty under this paragraph if (and only if) P's failure continues after the end of the period of 6 months beginning with the penalty date.

(2)The penalty under this paragraph is the greater of—

(a)5% of any liability to tax which would have been shown in the return in question, and

(b)£300.

(6)

(1)P is liable to a penalty under this paragraph if (and only if) P's failure continues after the end of the period of 12 months beginning with the penalty date.

(2)Where, by failing to make the return, P deliberately withholds information which would enable or assist HMRC to assess P's liability to tax, the penalty under this paragraph is determined in accordance with sub-paragraphs (3) and (4).

(3)If the withholding of the information is deliberate and concealed, the penalty is the greater of—

(a)100% of any liability to tax which would have been shown in the return in question, and

(b)£300.

(3A)For the purposes of sub-paragraph (3)(a), the relevant percentage is—

(a)for the withholding of category 1 information, the relevant percentage,

(b)for the withholding of category 2 information, 150%, and

(c)for the withholding of category 3 information, 200%.

(4)If the withholding of the information is deliberate but not concealed, the penalty is the greater of—

(a)the relevant percentage of any liability to tax which would have been shown in the return in question, and

(b)£300.

(4A)For the purposes of sub-paragraph (4)(a), the relevant percentage is—

(a)for the withholding of category 1 information, 70%,

(b)for the withholding of category 2 information, 105%, and

(c)for the withholding of category 3 information, 140%.

(5)In any case not falling within sub-paragraph (2), the penalty under this paragraph is the greater of—

(a)5% of any liability to tax which would have been shown in the return in question, and

(b)£300.

(6)Paragraph 6A explains the 3 categories of information.

(6A)

(1)Information is category 1 information if—

(a)it involves an offshore matter or an offshore transfer ,

(b)the territory in question is a category 1 territory, and

(c)it is information which would enable or assist HMRC to assess P's liability to income tax, capital gains tax or inheritance tax.

(2)Information is category 2 information if—

(a)it involves an offshore matter or an offshore transfer ,

(b)the territory in question is a category 2 territory, and

(c)it is information which would enable or assist HMRC to assess P's liability to income tax, capital gains tax or inheritance tax.

(3)Information is category 3 information if—

(a)it involves an offshore matter or an offshore transfer ,

(b)the territory in question is a category 3 territory, and

(c)it is information which would enable or assist HMRC to assess P's liability to income tax, capital gains tax or inheritance tax.

(4)Information “involves an offshore matter” if the liability to tax which would have been shown in the return includes a liability to tax charged on or by reference to—

(a)income arising from a source in a territory outside the UK,

(b)assets situated or held in a territory outside the UK,

(c)activities carried on wholly or mainly in a territory outside the UK, or

(d)anything having effect as if it were income, assets or activities of a kind described above.

(4A)If the liability to tax which would have been shown in the return is a liability to inheritance tax, assets are treated for the purposes of sub-paragraph (4) as situated or held in a territory outside the UK if they are so situated or held immediately after the transfer of value by reason of which inheritance tax becomes chargeable.

(4B)Information “involves an offshore transfer” if—

(a)it does not involve an offshore matter,

(b)it is information which would enable or assist HMRC to assess P's liability to income tax, capital gains tax or inheritance tax,

(c)by failing to make the return, P deliberately withholds the information (whether or not the withholding of the information is also concealed), and

(d)the applicable condition in paragraph 6AA is satisfied.

(5)Information “involves a domestic matter” if it does not involve an offshore matter or an offshore transfer.

(6)If the information which P withholds falls into more than one category—

(a)P's failure to make the return is to be treated for the purposes of this Schedule as if it were separate failures, one for each category of information according to the matters or transfers which the information involves, and

(b)for each separate failure, the liability to tax which would have been shown in the return in question is taken to be such share of the liability to tax which would have been shown in the return mentioned in paragraph (a) as is just and reasonable.

(7)For the purposes of this Schedule—

(a)paragraph 21A of Schedule 24 to FA 2007 (classification of territories) has effect, but

(b)an order under that paragraph does not apply to a failure if the filing date is before the date on which the order comes into force.

(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9)In this paragraph and paragraph 6AA—• “assets” has the meaning given in section 21(1) of TCGA 1992, but also includes sterling;• “UK” means the United Kingdom, including the territorial sea of the United Kingdom.

(A1)Information is category 0 information if—

(a)it involves a domestic matter,

(b)it involves an offshore matter or an offshore transfer, the territory in question is a category 0 territory and it is information which would enable or assist HMRC to assess P's liability to income tax, capital gains tax or inheritance tax, or

(c)it involves an offshore matter and it is information which would enable or assist HMRC to assess P's liability to a tax other than income tax, capital gains tax or inheritance tax.

(6AA)

(1)This paragraph makes provision in relation to offshore transfers.

(2)Where the liability to tax which would have been shown in the return is a liability to income tax, the applicable condition is satisfied if the income on or by reference to which the tax is charged, or any part of the income—

(a)is received in a territory outside the UK, or

(b)is transferred before the relevant date to a territory outside the UK.

(3)Where the liability to tax which would have been shown in the return is a liability to capital gains tax, the applicable condition is satisfied if the proceeds of the disposal on or by reference to which the tax is charged, or any part of the proceeds—

(a)are received in a territory outside the UK, or

(b)are transferred before the relevant date to a territory outside the UK.

(4)Where the liability to tax which would have been shown in the return is a liability to inheritance tax, the applicable condition is satisfied if—

(a)the disposition that gives rise to the transfer of value by reason of which the tax becomes chargeable involves a transfer of assets, and

(b)after that disposition but before the relevant date the assets, or any part of the assets, are transferred to a territory outside the UK.

(5)In the case of a transfer falling within sub-paragraph (2)(b), (3)(b) or (4)(b), references to the income, proceeds or assets transferred are to be read as including references to any assets derived from or representing the income, proceeds or assets.

(6)In relation to an offshore transfer, the territory in question for the purposes of paragraph 6A is the highest category of territory by virtue of which the information involves an offshore transfer.

(7)“Relevant date” means the date on which P becomes liable to a penalty under paragraph 6.

(6AB)Regulations under paragraph 21B of Schedule 24 to FA 2007 (location of assets etc) apply for the purposes of paragraphs 6A and 6AA of this Schedule as they apply for the purposes of paragraphs 4A and 4AA of that Schedule.

Amount of penalty: real time information for PAYE and apprenticeship levy

(6B)Paragraphs 6C and 6D apply in the case of a return falling within item 4 or 4A in the Table.

(6C)

(1)If P fails during a tax month to make a return on or before the filing date, P is liable to a penalty under this paragraph in respect of that month.

(2)But this is subject to sub-paragraphs (3) and (4).

(3)P is not liable to a penalty under this paragraph in respect of a tax month as a result of any failure to make a return on or before the filing date which occurs during the initial period.

(4)P is not liable to a penalty under this paragraph in respect of a tax month falling in a tax year if the month is the first tax month in that tax year during which P fails to make a return on or before the filing date (disregarding for this purpose any failure which occurs during the initial period).

(5)In sub-paragraphs (3) and (4) “the initial period” means the period which—

(a)begins with the day in the first tax year on which P is first required to make a return, and

(b)is of such duration as is specified in regulations made by the Commissioners,

and for this purpose “the first tax year” means the first tax year in which P is required to make returns.

(6)P may be liable under this paragraph to no more than one penalty in respect of each tax month.

(7)The penalty under this paragraph is to be calculated in accordance with regulations made by the Commissioners.

(8)Regulations under sub-paragraph (7) may provide for a penalty under this paragraph in respect of a tax month to be calculated by reference to either or both of the following matters—

(a)the number of persons employed by P, or treated as employed by P for the purposes of PAYE regulations;

(b)the number of previous penalties incurred by P under this paragraph in the same tax year.

(9)The Commissioners may by regulations disapply sub-paragraph (3) or (4) in such circumstances as are specified in the regulations.

(10)If P has elected under PAYE regulations to be treated as different employers in relation to different groups of employees, this paragraph applies to P as if—

(a)in respect of each group P were a different person, and

(b)each group constituted all of P's employees.

(11)Regulations made by the Commissioners under this paragraph may—

(a)make different provision for different cases, and

(b)include incidental, consequential and supplementary provision.

(6D). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(1)P may be liable to one or more penalties under this paragraph in respect of extended failures.

(2)In this paragraph an “extended failure” means a failure to make a return on or before the filing date which continues after the end of the period of 3 months beginning with the day after the filing date.

(3)P is liable to a penalty or penalties under this paragraph if (and only if)—

(a)HMRC decide at any time that such a penalty or penalties should be payable in accordance with sub-paragraph (4) or (6), and

(b)HMRC give notice to P specifying the date from which the penalty, or each penalty, is payable.

(4)HMRC may decide under sub-paragraph (3)(a) that a separate penalty should be payable in respect of each unpenalised extended failure in the tax year to date.

(5)In that case the amount of the penalty in respect of each failure is 5% of any liability to make payments which would have been shown in the return in question.

(6)HMRC may decide under sub-paragraph (3)(a) that a single penalty should be payable in respect of all the unpenalised extended failures in the tax year to date.

(7)In that case the amount of the penalty in respect of those failures is 5% of the sum of the liabilities to make payments which would have been shown in each of the returns in question.

(8)For the purposes of this paragraph, an extended failure is unpenalised if a penalty has not already been imposed in respect of it under this paragraph (whether in accordance with sub-paragraph (4) or (6)).

(9)The date specified in the notice under sub-paragraph (3)(b) in relation to a penalty—

(a)may be earlier than the date on which the notice is given, but

(b)may not be earlier than the end of the period mentioned in sub-paragraph (2) in relation to the relevant extended failure.

(10)In sub-paragraph (9)(b) “the relevant extended failure” means—

(a)the extended failure in respect of which the penalty is payable, or

(b)if the penalty is payable in respect of more than one extended failure (in accordance with sub-paragraph (6)), the extended failure with the latest filing date.

Amount of penalty: CIS returns

(7)Paragraphs 8 to 13 apply in the case of a return falling within item 6 in the Table.

(8)P is liable to a penalty under this paragraph of £100.

(9)

(1)P is liable to a penalty under this paragraph if (and only if) P's failure continues after the end of the period of 2 months beginning with the penalty date.

(2)The penalty under this paragraph is £200.

(10)

(1)P is liable to a penalty under this paragraph if (and only if) P's failure continues after the end of the period of 6 months beginning with the penalty date.

(2)The penalty under this paragraph is the greater of—

(a)5% of any liability to make payments which would have been shown in the return in question, and

(b)£300.

(11)

(1)P is liable to a penalty under this paragraph if (and only if) P's failure continues after the end of the period of 12 months beginning with the penalty date.

(2)Where, by failing to make the return, P deliberately withholds information which would enable or assist HMRC to assess the amount that P is liable to pay to HMRC in accordance with Chapter 3 of Part 3 of FA 2004, the penalty under this paragraph is determined in accordance with sub-paragraphs (3) and (4).

(3)If the withholding of the information is deliberate and concealed, the penalty is the greater of—

(a)100% of any liability to make payments which would have been shown in the return in question, and

(b)£3,000.

(4)If the withholding of the information is deliberate but not concealed, the penalty is the greater of—

(a)70% of any liability to make payments which would have been shown in the return in question, and

(b)£1,500.

(5)In any case not falling within sub-paragraph (2), the penalty under this paragraph is the greater of—

(a)5% of any liability to make payments which would have been shown in the return in question, and

(b)£300.

(12)

(1)P is liable to a penalty under this paragraph if (and only if)—

(a)P's failure continues after the end of the period of 12 months beginning with the penalty date, and

(b)the information required in the return relates only to persons registered for gross payment (within the meaning of Chapter 3 of Part 3 of FA 2004).

(2)Where, by failing to make the return, P deliberately withholds information which relates to such persons, the penalty under this paragraph is—

(a)if the withholding of the information is deliberate and concealed, £3,000, and

(b)if the withholding of the information is deliberate but not concealed, £1,500.

(13)

(1)This paragraph applies—

(a)at any time before P first makes a return falling within item 6 in the Table, to any return falling within that item, and

(b)at any time after P first makes a return falling within that item, to that return and any earlier return.

(2)In respect of any return or returns to which this paragraph applies—

(a)paragraphs 10(2)(b) and 11(5)(b) do not apply, and

(b)P is not liable to penalties under paragraphs 8 and 9 which exceed, in total, £3,000.

(3)In sub-paragraph (1)(b) “earlier return” means any return falling within item 6 which has a filing date earlier than the date on which P first made a return.

Amount of penalty: returns for periods of between 2 and 6 months

(13A)

(1)Paragraphs 13B to 13E apply in the case of a return falling within any of items 7A, 7B, 13A, 13B and 14 to 2829 in the Table which relates to a period of less than 6 months but more than 2 months.

(2)But those paragraphs do not apply in the case of a return mentioned in paragraph 2(1)(c).

(13B)

(1)P is liable to a penalty under this paragraph of £100.

(2)In addition, a penalty period begins to run on the penalty date for the return.

(3)The penalty period ends with the day 12 months after the filing date for the return, unless it is extended under paragraph 13C(2)(c) or 13H(2)(c).

(13C)

(1)This paragraph applies if—

(a)a penalty period has begun under paragraph 13B or 13G because P has failed to make a return (“return A”), and

(b)before the end of the period, P fails to make another return (“return B”) falling within the same item in the Table as return A.

(2)In such a case—

(a)paragraph 13B(1) and (2) do not apply to the failure to make return B, but

(b)P is liable to a penalty under this paragraph for that failure, and

(c)the penalty period that has begun is extended so that it ends with the day 12 months after the filing date for return B.

(3)The amount of the penalty under this paragraph is determined by reference to the number of returns that P has failed to make during the penalty period.

(4)If the failure to make return B is P's first failure to make a return during the penalty period, P is liable, at the time of the failure, to a penalty of £200.

(5)If the failure to make return B is P's second failure to make a return during the penalty period, P is liable, at the time of the failure, to a penalty of £300.

(6)If the failure to make return B is P's third or a subsequent failure to make a return during the penalty period, P is liable, at the time of the failure, to a penalty of £400.

(7)For the purposes of this paragraph—

(a)in accordance with sub-paragraph (1)(b), the references in sub-paragraphs (3) to (6) to a return are references to a return falling within the same item in the Table as returns A and B, and

(b)a failure to make a return counts for the purposes of those sub-paragraphs if (but only if) the return relates to a period of less than 6 months.

(8)A penalty period may be extended more than once under sub-paragraph (2)(c).

(13D)

(1)P is liable to a penalty under this paragraph if (and only if) P's failure continues after the end of the period of 6 months beginning with the penalty date.

(2)The penalty under this paragraph is the greater of—

(a)5% of any liability to tax which would have been shown in the return in question, and

(b)£300.

(13E)

(1)P is liable to a penalty under this paragraph if (and only if) P's failure continues after the end of the period of 12 months beginning with the penalty date.

(3)If the withholding of the information is deliberate and concealed, the penalty is the greater of—

(a)100% of any liability to tax which would have been shown in the return in question, and

(b)£300.

(4)If the withholding of the information is deliberate but not concealed, the penalty is the greater of—

(a)70% of any liability to tax which would have been shown in the return in question, and

(b)£300.

(5)In any case not falling within sub-paragraph (2), the penalty under this paragraph is the greater of—

(a)5% of any liability to tax which would have been shown in the return in question, and

(b)£300.

Amount of penalty: returns for periods of 2 months or less

(13F)

(1)Paragraphs 13G to 13J apply in the case of a return falling within any of items 7A, 7B and 14 to 2829 in the Table which relates to a period of 2 months or less.

(2)But those paragraphs do not apply in the case of a return mentioned in paragraph 2(1)(c).

(13G)

(1)P is liable to a penalty under this paragraph of £100.

(2)In addition, a penalty period begins to run on the penalty date for the return.

(3)The penalty period ends with the day 12 months after the filing date for the return, unless it is extended under paragraph 13C(2)(c) or 13H(2)(c).

(13H)

(1)This paragraph applies if—

(a)a penalty period has begun under paragraph 13B or 13G because P has failed to make a return (“return A”), and

(b)before the end of the period, P fails to make another return (“return B”) falling within the same item in the Table as return A.

(2)In such a case—

(a)paragraph 13G(1) and (2) do not apply to the failure to make return B, but

(b)P is liable to a penalty under this paragraph for that failure, and

(c)the penalty period that has begun is extended so that it ends with the day 12 months after the filing date for return B.

(3)The amount of the penalty under this paragraph is determined by reference to the number of returns that P has failed to make during the penalty period.

(4)If the failure to make return B is P's first, second, third, fourth or fifth failure to make a return during the penalty period, P is liable, at the time of the failure, to a penalty of £100.

(5)If the failure to make return B is P's sixth or a subsequent failure to make a return during the penalty period, P is liable, at the time of the failure, to a penalty of £200.

(6)For the purposes of this paragraph—

(a)in accordance with sub-paragraph (1)(b), the references in sub-paragraphs (3) to (5) to a return are references to a return falling within the same item in the Table as returns A and B, and

(b)a failure to make a return counts for the purposes of those sub-paragraphs if (but only if) the return relates to a period of less than 6 months.

(7)A penalty period may be extended more than once under sub-paragraph (2)(c).

(13I)

(1)P is liable to a penalty under this paragraph if (and only if) P's failure continues after the end of the period of 6 months beginning with the penalty date.

(2)The penalty under this paragraph is the greater of—

(a)5% of any liability to tax which would have been shown in the return in question, and

(b)£300.

(13J)

(1)P is liable to a penalty under this paragraph if (and only if) P's failure continues after the end of the period of 12 months beginning with the penalty date.

(3)If the withholding of the information is deliberate and concealed, the penalty is the greater of—

(a)100% of any liability to tax which would have been shown in the return in question, and

(b)£300.

(4)If the withholding of the information is deliberate but not concealed, the penalty is the greater of—

(a)70% of any liability to tax which would have been shown in the return in question, and

(b)£300.

(5)In any case not falling within sub-paragraph (2), the penalty under this paragraph is the greater of—

(a)5% of any liability to tax which would have been shown in the return in question, and

(b)£300.

Reductions for disclosure

(14)

(1)Paragraph 15 provides for reductions in the penalty under paragraph 6(3) or (4) where P discloses relevant information that involves a domestic matteror 11(3) or (4), 11(3) or (4), 13E(3) or (4) or 13J(3) or (4) where P discloses relevant information.

(1A)Paragraph 15A provides for reductions in the penalty under paragraph 6(3) or (4) where P discloses relevant information that involves an offshore matter or an offshore transfer.

(1B)Sub-paragraph (2) applies where—

(a)P is liable to a penalty under paragraph 6(3) or (4) and P discloses relevant information that involves a domestic matter, or

(b)P is liable to a penalty under any of the other provisions mentioned in sub-paragraph (1) and P discloses relevant information.

(2)P discloses relevant information by—

(a)telling HMRC about it,

(b)giving HMRC reasonable help in quantifying any tax unpaid by reason of its having been withheld, and

(c)allowing HMRC access to records for the purpose of checking how much tax is so unpaid.

(2A)Sub-paragraph (2B) applies where P is liable to a penalty under paragraph 6(3) or (4) and P discloses relevant information that involves an offshore matter or an offshore transfer.

(2B)P discloses relevant information by—

(a)telling HMRC about it,

(b)giving HMRC reasonable help in quantifying any tax unpaid by reason of its having been withheld,

(c)allowing HMRC access to records for the purpose of checking how much tax is so unpaid, and

(d)providing HMRC with additional information.

(2C)The Treasury must make regulations setting out what is meant by “additional information” for the purposes of sub-paragraph (2B)(d).

(2D)Regulations under sub-paragraph (2C) are to be made by statutory instrument.

(2E)An instrument containing regulations under sub-paragraph (2C) is subject to annulment in pursuance of a resolution of the House of Commons.

(3)Disclosure of relevant information—

(a)is “unprompted” if made at a time when P has no reason to believe that HMRC have discovered or are about to discover the relevant information, and

(b)otherwise, is “prompted”.

(4)In relation to disclosure “quality” includes timing, nature and extent.

(5)Paragraph 6A(4) to (5) applies to determine whether relevant information involves an offshore matter, an offshore transfer or a domestic matter for the purposes of this paragraph.

(A1)In this paragraph, “relevant information” means information which has been withheld by a failure to make a return.

(15)

Standard %	Minimum % for prompted disclosure	Minimum % for unprompted disclosure
70%	35%	20%
100%	50%	30%

(1)

(2)

(3)

(4)

(5)But HMRC must not under this paragraph—

(a)reduce a penalty under paragraph 6(3) or (4) below £300, or

(b)reduce a penalty under paragraph 11(3) or (4)sub-paragraph (3) or (4) of any of paragraphs 11, 13E and 13J below the amount set by paragraph 11(3)(b) or (4)(b) (as the case may be)paragraph (b) of that sub-paragraph.

(15A)

(1)If a person who would otherwise be liable to a penalty of a percentage shown in column 1 of the Table (a “standard percentage”) has made a disclosure, HMRC must reduce the standard percentage to one that reflects the quality of the disclosure.

(2)But the standard percentage may not be reduced to a percentage that is below the minimum shown for it—

(a)in the case of a prompted disclosure, in column 2 of the Table, and

(b)in the case of an unprompted disclosure, in column 3 of the Table.

(3)But HMRC must not under this paragraph reduce a penalty below £300.

Special reduction

(16)

(1)If HMRC think it right because of special circumstances, they may reduce a penalty under any paragraph of this Schedule.

(2)In sub-paragraph (1) “special circumstances” does not include—

(a)ability to pay, or

(b)the fact that a potential loss of revenue from one taxpayer is balanced by a potential over-payment by another.

(3)In sub-paragraph (1) the reference to reducing a penalty includes a reference to—

(a)staying a penalty, and

(b)agreeing a compromise in relation to proceedings for a penalty.

Interaction with other penalties and late payment surcharges

(17)

(1)Where P is liable for a penalty under any paragraph of this Schedule which is determined by reference to a liability to tax, the amount of that penalty is to be reduced by the amount of any other penalty incurred by P, if the amount of the penalty is determined by reference to the same liability to tax.

(2)In sub-paragraph (1) the reference to “any other penalty” does not include—

(a)a penalty under any other paragraph of this Schedule, or

(b)a penalty under Schedule 56 (penalty for late payment of tax), or

(c)a penalty under Part 4 of FA 2014 (penalty where corrective action not taken after follower notice etc)or

(d)a penalty under Schedule 22 to FA 2016 (asset-based penalty).

(3)Where P is liable for a penalty under more than one paragraph of this Schedule which is determined by reference to a liability to tax, the aggregate of the amounts of those penalties must not exceed 100%the relevant percentage of the liability to tax.

(4)The relevant percentage is—

(a)if one of the penalties is a penalty under paragraph 6(3) or (4) and the information withheld is category 3 information, 200%,

(b)if one of the penalties is a penalty under paragraph 6(3) or (4) and the information withheld is category 2 information, 150%, and

(c)in all other cases, 100%.

Cancellation of penalty

(17A)

(1)

(a)

(b)

(2)

(17B)

(1)

(a)

(b)

(2)

Assessment

(18)

(1)Where P is liable for a penalty under any paragraph of this Schedule HMRC must—

(a)assess the penalty,

(b)notify P, and

(c)state in the notice the period in respect of which the penalty is assessed.

(2)A penalty under any paragraph of this Schedule must be paid before the end of the period of 30 days beginning with the day on which notification of the penalty is issued.

(3)An assessment of a penalty under any paragraph of this Schedule—

(a)is to be treated for procedural purposes in the same way as an assessment to tax (except in respect of a matter expressly provided for by this Schedule),

(b)may be enforced as if it were an assessment to tax, and

(c)may be combined with an assessment to tax.

(4)A supplementary assessment may be made in respect of a penalty if an earlier assessment operated by reference to an underestimate of the liability to tax which would have been shown in a return.

(5)Sub-paragraph (6) applies if—

(a)an assessment in respect of a penalty is based on a liability to tax that would have been shown in a return, and

(b)that liability is found by HMRC to be excessive.

(6)HMRC may by notice to P amend the assessment so that it is based upon the correct amount.

(7)An amendment under sub-paragraph (6)—

(a)does not affect when the penalty must be paid;

(b)may be made after the last day on which the assessment in question could have been made under paragraph 19.

(19)

(1)An assessment of a penalty under any paragraph of this Schedule in respect of any amount must be made on or before the later of date A and (where it applies) date B.

(2)Date A is —

(a)in the case of an assessment of a penalty under paragraph 6C, the last day of the period of 2 years beginning with the end of the tax month in respect of which the penalty is payable,

(b)in the case of an assessment of a penalty under paragraph 6D, the last day of the period of 2 years beginning with the filing date for the relevant extended failure (as defined in paragraph 6D(10)), and

(c)in any other case,

the last day of the period of 2 years beginning with the filing date.

(3)Date B is the last day of the period of 12 months beginning with—

(a)the end of the appeal period for the assessment of the liability to tax which would have been shown in the return or returns (as the case may be in relation to penalties under section 6C or 6D), or

(b)if there is no such assessment, the date on which that liability is ascertained or it is ascertained that the liability is nil.

(4)In sub-paragraph (3)(a) “appeal period” means the period during which—

(a)an appeal could be brought, or

(b)an appeal that has been brought has not been determined or withdrawn.

(5)Sub-paragraph (1) does not apply to a re-assessment under paragraph 24(2)(b).

Appeal

(20)

(1)P may appeal against a decision of HMRC that a penalty is payable by P.

(2)P may appeal against a decision of HMRC as to the amount of a penalty payable by P.

(21)

(1)An appeal under paragraph 20 is to be treated in the same way as an appeal against an assessment to the tax concerned (including by the application of any provision about bringing the appeal by notice to HMRC, about HMRC review of the decision or about determination of the appeal by the First-tier Tribunal or Upper Tribunal).

(2)Sub-paragraph (1) does not apply—

(a)so as to require P to pay a penalty before an appeal against the assessment of the penalty is determined, or

(b)in respect of any other matter expressly provided for by this Act.

(22)

(1)On an appeal under paragraph 20(1) that is notified to the tribunal, the tribunal may affirm or cancel HMRC's decision.

(2)On an appeal under paragraph 20(2) that is notified to the tribunal, the tribunal may—

(a)affirm HMRC's decision, or

(b)substitute for HMRC's decision another decision that HMRC had power to make.

(3)If the tribunal substitutes its decision for HMRC's, the tribunal may rely on paragraph 16—

(a)to the same extent as HMRC (which may mean applying the same percentage reduction as HMRC to a different starting point), or

(b)to a different extent, but only if the tribunal thinks that HMRC's decision in respect of the application of paragraph 16 was flawed.

(4)In sub-paragraph (3)(b) “flawed” means flawed when considered in the light of the principles applicable in proceedings for judicial review.

(5)In this paragraph “tribunal” means the First-tier Tribunal or Upper Tribunal (as appropriate by virtue of paragraph 21(1)).

Reasonable excuse

(23)

(1)

(2)For the purposes of sub-paragraph (1)—

(a)an insufficiency of funds is not a reasonable excuse, unless attributable to events outside P's control,

(b)where P relies on any other person to do anything, that is not a reasonable excuse unless P took reasonable care to avoid the failure, and

(c)where P had a reasonable excuse for the failure but the excuse has ceased, P is to be treated as having continued to have the excuse if the failure is remedied without unreasonable delay after the excuse ceased.

Determination of penalty geared to tax liability where no return made

(24)

(1)References to a liability to tax which would have been shown in a return are references to the amount which, if a complete and accurate return had been delivered on the filing date, would have been shown to be due or payable by the taxpayer in respect of the tax concerned for the period to which the return relates.

(2)In the case of a penalty which is assessed at a time before P makes the return to which the penalty relates—

(a)HMRC is to determine the amount mentioned in sub-paragraph (1) to the best of HMRC's information and belief, and

(b)if P subsequently makes a return, the penalty must be re-assessed by reference to the amount of tax shown to be due and payable in that return (but subject to any amendments or corrections to the return).

(3)In calculating a liability to tax which would have been shown in a return, no account is to be taken of any relief under section 458 of CTA 2010 (relief in respect of repayment etc of loan) which is deferred under subsection (5) of that section.

Partnerships

(25)

(1)

(a)

(b)

(2)

(3)

(4)

(a)

(b)

(5)

(6)In this paragraph—• “relevant partner” means a person who was a partner in the partnership to which the return relates at any time during the period in respect of which the return was required;• “representative partner” means a person who has been required by a notice served under or for the purposes of section 12AA(2) or (3) of TMA 1970 to deliver any return;• “successor” has the meaning given by section 12AA(11) of TMA 1970.

Double jeopardy

(26)P is not liable to a penalty under any paragraph of this Schedule in respect of a failure or action in respect of which P has been convicted of an offence.

Interpretation

(27)

(1)This paragraph applies for the construction of this Schedule.

(2)The withholding of information by P is—

(a)“deliberate and concealed” if P deliberately withholds the information and makes arrangements to conceal the fact that the information has been withheld, and

(b)“deliberate but not concealed” if P deliberately withholds the information but does not make arrangements to conceal the fact that the information has been withheld.

(2A)The Commissioners” means the Commissioners for Her Majesty's Revenue and Customs.

(3)“HMRC” means Her Majesty's Revenue and Customs.

(3A)Tax month” means the period beginning with the 6th day of a month and ending with the 5th day of the following month.

(4)References to a liability to tax, in relation to a return falling within item 6 in the Table (construction industry scheme), are to a liability to make payments in accordance with Chapter 3 of Part 3 of FA 2004.

(5)References to an assessment to tax, in relation to inheritance tax and stamp duty reserve tax, are to a determination.

Contains public sector information licensed under the Open Government Licence v3.0.

Defined terms · 200

Show every defined term

a car that has low CO2 emissions
has the same meaning as in section 104AA of CAA 2001 (special rate expenditure: main rate car);
Accounting arrangements
includes arrangements for keeping accounting records.
Acquisition cost
means the total of the consideration, costs and expenditure described in section 38(1)(a) and (b) of TCGA 1992 (acquisition and disposal costs etc).
alternative finance investment bond
means arrangements to which section 564G of ITA 2007 or section 151N of TCGA 1992 (investment bond arrangements) applies;
an equivalent manual car
means a car which— a is first registered at or about the same time as the automatic car, and b does not have automatic transmission, but otherwise is the closest variant available of the make and model of the automatic car. 4 For the purposes of this section a car has automatic transmission if— a the driver of the car is not provided with any means by which the driver may vary the gear ratio between the engine and the road wheels independently of the accelerator and the brakes, or b the driver is provided with such means, but they do not include— i a clutch pedal, or ii a lever which the driver may operate manually. 5 For the purposes of this section a car is avail
Ancillary transport services
means loading, unloading handling and similar activities. 14 A supply to a person who is not a relevant business person of services consisting of the valuation of, or carrying out of work on, goods is to be treated as made where the services are physically performed. 15 A supply consisting of the provision by a person who belongs in a country which is not a member State (other than the Isle of Man) of electronically supplied services (as to the meaning of which see paragraph 9(3) and (4)) to a person (“the recipient”) who— a is not a relevant business person, and b belongs in a member State, is to be treated as made in the country in which the recipient belongs
appeal period
means the period during which—
appropriate pool
means— a in the case of expenditure incurred on the provision of a car that is not a main rate car (as defined by section 104AA), the special rate pool, and b in any other case, the main pool.”
Appropriate tax accounting arrangements
means accounting arrangements that enable the company's relevant liabilities to be calculated accurately in all material respects.
arrangement
includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable), other than one which constitutes a finance lease (within the meaning given by section 219 of CAA 2001). 486C 1 This Chapter does not apply to an arrangement which produces a return for a company if or to the extent that the return— a is charged to corporation tax as income of the company or brought into account as income of the company for corporation tax purposes no later than the time when amounts are brought into account in relation to the return in accordance with section 486B, b arises from anything that would produce credits or debits in relation to t
arrangements
includes any arrangements, scheme or understanding of any kind, whether or not legally enforceable and whether involving a single transaction or two or more transactions;
assessment
has the same meaning as in paragraph 3 of Schedule 53;
assets
has the meaning given in section 21(1) of TCGA 1992, but also includes sterling;
assured shorthold tenancy
has the same meaning as in Part 1 of the Housing Act 1988;
authorised unit trust scheme
means a unit trust scheme (within the meaning given by section 237 of FISMA 2000) in relation to which a order under section 243 of that Act (authorisation orders) is in force;
balancing payment
means an amount payable— (a) in accordance with section 59B(3), (4) or (5) of TMA 1970, or (b) in accordance with section 59B(6) of that Act in respect of income tax assessed under section 29 of that Act;
bingo
includes any version of that game, whatever name it is called. 6 The Treasury may by order amend this section.”
blended oil
means oil that consists of oil from two or more oil fields that has been mixed;
break clause
means a provision of a lease that gives a person a right to terminate it so that its term is shorter than it otherwise would be, and b a break clause contained in the original lease is “relevant” if the right to terminate the lease that it confers is capable of being exercised in such a way that the term of the original lease is 10 years or less. 3 For the purposes of section 105A— a the term of the original lease, and b the net amount payable by P in relation to the lease by way of lease premium, are to be determined on the assumption that any relevant break clause is exercised in such a way that the term of the lease is as short as possible. 4 If a relevant break clause is n
business
includes— (a) a profession, and (b) a property business;
car
has the meaning given in section 268A;
carrying value
has the same meaning as it has for the purposes of section 316 (see section 317).”
certificate
means such a certificate as is mentioned in sub-paragraph (1)(a).”
collateral
means an amount of money or other property which is payable to, or made available for the benefit of, a party to an arrangement or that party's nominee for the purpose of securing the discharge of the requirement to transfer securities to that party or the nominee;
commercial arrangements
means arrangements the terms of which are such as would reasonably have been expected if the parties to the arrangements had been dealing at arm's length.”
company
has the same meaning as in Chapter 4 of Part 24 of CTA 2010 (see section 1165(1) of that Act) (investment trusts);
connected provision
means provision which appears to the Treasury to be necessary or expedient in connection with provision made under subsection (1);
contract settlement
means an agreement made in connection with any person's liability to make a payment to the Commissioners under or by virtue of an enactment;
corporate member
means a body corporate which is a member of Lloyd's;
Counteraction provision
means— a section 703 of ICTA (company liable to counteraction of corporation tax advantage), or b section 684 of ITA 2007 (person liable to counteraction of income tax advantage).”
derivative contract
has the same meaning as in Part 7 of CTA 2009 (see section 576 of that Act);
designated area
means an area of a landfill site designated in accordance with— (a) an order under this section, or (b) regulations under Part 1 of Schedule 5;
diesel
means any diesel fuel within the definition in Article 2 of Directive 98/70/EC of the European Parliament and of the Council;
Disabled person
means a person in receipt of— a a disability living allowance under— i the Social Security Contributions and Benefits Act 1992, or ii the Social Security Contributions and Benefits (Northern Ireland) Act 1992, because of entitlement to the mobility component, b a mobility supplement under a scheme made under the Personal Injuries (Emergency Provisions) Act 1939, c a mobility supplement under an Order in Council made under section 12 of the Social Security (Miscellaneous Provisions) Act 1977, or d a payment that appears to the Treasury to be similar to those mentioned in paragraphs (a) to (c) and that is specified by order made by the Treasury.”
Discovery assessment or determination
means— a an assessment under section 29(1), or b a discovery assessment or discovery determination under Schedule 18 to the Finance Act 1998 (company tax return etc). 3 The following are relevant restrictions— a the conditions in section 29(3) to (5), b the restrictions in paragraphs 42 to 45 of Schedule 18 to the Finance Act 1998, and c the expiry of a time limit for making a discovery assessment or determination. 4 Where this paragraph applies— a the relevant restrictions are to be disregarded, and b the discovery assessment or determination is not out of time if it is made before the final determination of the claim. 7 1 This paragraph applies where— a a claim is made under this Schedule, b the claimant is one of two or more persons carrying on a trade, profession or business in partnership, c the grounds for giving effect to the claim also provide grounds for amending, under section 30B(1) (discovery of loss of tax from partnership), a return made by the partnership or any of the partners in respect of any period, and d such an amendment could be made but for a relevant restriction. 2 The following are relevant restrictions— a the conditi
disposal consideration
means the whole of the consideration obtained on the disposal made by P. 198B 1 This section applies if a person (“P”) makes a disposal and acquisition which— a is a ring fence reinvestment, and b qualifies for section 153 relief. 2 P may make a claim under this section in relation to the disposal and acquisition. 3 If P makes a claim under this section— a section 153(1)(a) applies in relation to P and the disposal, but b section 153(1)(b) does not apply to P and the acquisition. 198C 1 This section applies where a person (“P”) carrying on a ring fence trade who for a consideration disposes of, or of an interest in, any assets (“the old assets”) declares, in P's return for the chargeable period in which the disposal takes place— a that the whole or any specified part of the consideration will be applied in the acquisition of, or of an interest in, other assets (“the new assets”), b that the acquisition will take place as mentioned in section 152(3), c that the disposal and acquisition will be a ring fence reinvestment, d that P intends to make a claim under section 198A or 198B in relation to the disposal and acquisition, and e that P has not made, and will
dividend
includes any distribution that (but for this section) would be treated as a dividend for income tax purposes;
earlier return
means any return falling within item 6 which has a filing date earlier than the date on which P first made a return.
electrically propelled
has the meaning given in section 268B of that Act.”
electrically-propelled
has the meaning given in section 268B.”
employer-financed retirement benefits scheme
has the same meaning as in Chapter 2 of Part 6 of ITEPA 2003 (see sections 393A and 393B of that Act);
enactment
includes subordinate legislation (within the meaning of the Interpretation Act 1978);
equalisation reserves rules
has the same meaning as in section 444BA of ICTA (see subsection (11) of that section);
error
includes—
extended failure
means a failure to make a return on or before the filing date which continues after the end of the period of 3 months beginning with the day after the filing date.
film
has the same meaning as in Part 15 of CTA 2009 (see section 1181 of that Act),
flawed
means flawed when considered in the light of the principles applicable in proceedings for judicial review.
foreign
means resident outside the United Kingdom;
foreign field
means an area which is a foreign field for the purposes of section 12 of the Oil Taxation Act 1983;
Foreign tax
means any tax chargeable under the law of a territory outside the United Kingdom. 5 “Relevant foreign earnings”, in relation to an individual, means what would be the individual's relevant foreign earnings for the purposes of Chapter A1 of this Part if section 809B applied to the individual (see section 809Z7(3)).”
friendly society
has the meaning given by section 466(2) of ICTA. 931T In this Part— • “the payer”, in relation to a distribution, means the company that makes the distribution;
future chargeable period
means a chargeable period beginning after 30 June 2009;
game of chance
has the meaning given by section 6(2) of that Act, and g “bingo” includes any version of that game, whatever name it is called. 6 The Treasury may by order amend this section.”
gaming machine
means a machine which is designed or adapted for use by individuals for gambling (whether or not it can also be used for other purposes). 1B But a machine is not a gaming machine to the extent that— a it is designed or adapted for use to bet on future real events, b it is designed or adapted for the playing of bingo and bingo duty is, or but for paragraphs 1 to 5 of Schedule 3 would be, charged under section 17 on the playing of the bingo, or c it is designed or adapted for the playing of a real game of chance and the playing of the game is dutiable gaming for the purposes of section 10 of the Finance Act 1997, or would be dutiable gaming but for subsections (3) and (4) of t
group
has the meaning for the time being given by international accounting standards.
group relief company
means— (a) a company to which group relief under Chapter 4 of Part 10 of ICTA would be available (on the making of a claim) in respect of balancing allowances surrendered by the taxpayer in the taxpayer's final chargeable period, and (b) a company to which such relief would be available (on the making of a claim) in respect of balancing allowances surrendered by a company within paragraph (a);
health-screening assessment
means an assessment to identify employees who might be at particular risk of ill-health, and • “medical check-up” means a physical examination of the employee by a health professional for (and only for) determining the employee's state of health.”
Herd basis election
means an election under Chapter 8 of Part 2 of ITTOIA 2005 or Chapter 8 of Part 3 of CTA 2009. 37B 1 This paragraph applies to a taxpayer notice given to a person if— a it appears to an officer of Revenue and Customs that a counteraction provision may apply to the person by reason of one or more transactions, and b the notice refers only to information or documents relating to the transaction (or, if there are two or more transactions, any of them). 2 Paragraph 21 (restrictions on giving taxpayer notice where taxpayer has made tax return) does not apply in relation to the notice. 3 “Counteraction provision” means— a section 703 of ICTA (company liable to counteraction o
HMRC
means Her Majesty's Revenue and Customs;
holiday accommodation
includes any accommodation in a building, hut (including a beach hut or chalet), caravan, houseboat or tent which is advertised or held out as holiday accommodation or as suitable for holiday or leisure use. 4 In sub-paragraph (2)(d) “similar establishment” includes premises in which there is provided furnished sleeping accommodation, whether with or without the provision of board or facilities for the preparation of food, which are used by, or held out as being suitable for use by, visitors or travellers. 2 1 A supply of services consisting of the transportation of passengers (or of any luggage or motor vehicles accompanying passengers) is to be treated as made in the country in which the transportation takes place, and (in a case where it takes place in more than one country) in proportion to the distances covered in each. 2 For the purposes of sub-paragraph (1) transportation which takes place partly outside the territorial jurisdiction of a country is to be treated as taking place wholly in the country if— a it takes place in the course of a journey between two points in the country (whether or not as part of a longer journey involving travel to or from
ICTA
means the Income and Corporation Taxes Act 1988, • “IHTA 1984” means the Inheritance Tax Act 1984, • “ITA 2007” means the Income Tax Act 2007, • “ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003, • “ITTOIA 2005” means the Income Tax (Trading and Other Income) Act 2005, • “OTA 1975” means the Oil Taxation Act 1975, • “OTA 1983” means the Oil Taxation Act 1983, • “PRTA 1980” means the Petroleum Revenue Tax Act 1980, • “TCGA 1992” means the Taxation of Chargeable Gains Act 1992, • “TIOPA 2010” means the Taxation (International and Other Provisions) Act 2010, • “TMA 1970” means the Taxes Management Act 1970, • “TPDA 1979” means the Tobacco Products Duty Act 1979, • “VATA 1994” means the Value Added Tax Act 1994, and • “VERA 1994” means the Vehicle Excise and Registration Act 1994.
insurance company
has the meaning given by section 431 of ICTA;
investment trust
means an investment trust within the meaning of section 1158 of CTA 2010;
involved third party
means a person described in the first column of the Table below. 2 In this Schedule, in relation to an involved third party, “relevant information”, “relevant document” and “relevant tax” have the meaning given in the corresponding entries in that Table.
landfill site activity
means any of the following descriptions of activity, or an activity that falls within any of the following descriptions— (a) using or otherwise dealing with material at a landfill site;
late payment interest
means interest payable under section 101;
lease premium
means any premium payable— a under a lease, or b otherwise under the terms on which a lease is granted. 6 In the application of this section to Scotland “premium” includes a grassum. 105B 1 This section applies to a lease (“the original lease”) that contains one or more relevant break clauses. 2 For the purposes of this section— a “break clause” means a provision of a lease that gives a person a right to terminate it so that its term is shorter than it otherwise would be, and b a break clause contained in the original lease is “relevant” if the right to terminate the lease that it confers is capable of being exercised in such a way that the term of the original lease is 10 ye
licence-consideration swap
means a case where conditions A, B, C and D are met;
listed supply
means a supply falling within sub-paragraph (2)—
loan relationship
has the same meaning as in the Corporation Tax Acts (see section 302(1) and (2) of CTA 2009);
local authority
has the meaning given in section 999 of ITA 2007;
local authority association
has the meaning given in section 1000 of that Act;
machine
has the same meaning as in the Gambling Act 2005 (see section 235(3)(a)), c a reference to a machine being designed or adapted for a purpose includes a reference to a machine to which anything has been done as a result of which it can reasonably be expected to be used for that purpose, d a reference to a machine being adapted includes a reference to computer software being installed on it, e “real” has the meaning given by section 353(1) of the Gambling Act 2005, f “game of chance” has the meaning given by section 6(2) of that Act, and g “bingo” includes any version of that game, whatever name it is called. 6 The Treasury may by order amend this section.”
main rate car
has the meaning given in section 104AA;
manufactured overseas dividend
has the same meaning as in Chapter 2 of Part 11 of ITA 2007;
material disposal
has the meaning given in section 197;
medical check-up
means a physical examination of the employee by a health professional for (and only for) determining the employee's state of health.”
member
means underwriting member;
method of allocation
means a method for making an allocation of blended oil for the purposes of section 63 that has been selected by the participators in the originating fields (including such a method that has been amended in accordance with this Schedule). 2 In this Schedule a reference to a suitable method of allocation is a reference to a method which secures that allocation of blended oil is just and reasonable (for the purposes of the oil taxation legislation). 2 1 This paragraph applies if it appears to HMRC that— a a method of allocation that has been used in respect of a chargeable period was not suitable, or b a method of allocation that is proposed to be used in respect of a cha
mixed-consideration swap
has the meaning given in section 195A(2);
modify
includes amend, repeal or revoke;
Modifying
includes amending, repealing or revoking.
motor cycle
has the meaning given by section 185(1) of the Road Traffic Act 1988. 268B For the purposes of this Part a vehicle is electrically-propelled only if— a it is propelled solely by electrical power, and b that power is derived from— i a source external to the vehicle, or ii an electrical storage battery which is not connected to any source of power when the vehicle is in motion. 268C 1 In this Part “qualifying emissions certificate”, in relation to a vehicle, means an EC certificate of conformity, or a UK approval certificate, that specifies— a in the case of a vehicle other than a bi-fuel vehicle, a CO2 emissions figure in terms of grams per kilometre driven, or b in the case of a bi-fuel vehicle, separate CO2 emissions figures in terms of grams per kilometre driven for different fuels. 2 For the purposes of this Part, in relation to a vehicle other than a bi-fuel vehicle, the applicable CO2 emissions figure is— a where the qualifying emissions certificate specifies only one CO2 emissions figure, that figure, and b where the certificate specifies more than one CO2 emissions figure, the figure specified as the CO2 emissions (combined) figure. 3 For the purposes of this P
Mutual fund
means arrangements with respect to property of any description, including money, that meet conditions A to C, subject to— a sections 40C and 40D, and b the exceptions made by or under sections 40E to 40G. 2 Condition A is that the purpose or effect of the arrangements is to enable the participants— a to participate in the acquisition, holding, management or disposal of the property, or b to receive profits or income arising from the acquisition, holding, management or disposal of the property or sums paid out of such profits or income. 3 Condition B is that the participants do not have day-to-day control of the management of the property. 4 For the purpose of condition B a part
Mutual society
means—
new expenditure
means— and expenditure that is not new expenditure is “old expenditure”.
non-licence consideration
means consideration that does not consist of disposal of a UK licence, as determined at the time the swap arrangements are entered into;
non-qualifying gross income
means gross income that does not satisfy the test in paragraph 6(3), (4) or (4A) of Schedule 25 to ICTA;
non-qualifying territory
has the meaning given by paragraph 5E of Schedule 28AA to ICTA, b a non-qualifying territory is “non-taxing” if companies are not under its law liable to tax by reason of domicile, residence or place of management, and c “resident for tax purposes” means liable, under the law of the non-qualifying territory, to tax there by reason of domicile, residence or place of management.”
non-taxable distribution
means— a a distribution that is exempt for the purposes of Part 9A of the Corporation Tax Act 2009 (company distributions), and b does not include any amount withheld from the distribution on account of tax payable under the laws of a territory outside the United Kingdom.”
normal commercial practice
means normal commercial practice at a time when an increase in the rate of VAT in force under section 2 of VATA 1994 is not expected.
notice of enquiry
means a notice under paragraph 12 of Schedule 10, or paragraph 7 of Schedule 11A, to FA 2003. 5 Condition B is that, as regards the person, an officer of Revenue and Customs has reason to suspect that— a an amount that ought to have been assessed to stamp duty land tax in respect of the transaction may not have been assessed, b an assessment to stamp duty land tax in respect of the transaction may be or have become insufficient, or c relief from stamp duty land tax in respect of the transaction may be or have become excessive. 6 Condition C is that the notice is given for the purpose of obtaining any information or document that is also required for the purpose of checkin
Notional accounting period
means each of the following periods— a the period that— i begins with the day following the last day on which the former trader carried on the ring fence trade, and ii ends with the day on which the first termination event subsequently occurs, and b each period that— i begins with the day following the last day of a period determined under paragraph (a) or this paragraph, and ii ends with the day on which the first termination event subsequently occurs;
notional carrying value
has the same meaning as in section 521F(2) of CTA 2009 (see subsection (3) of that section).
Nuclear site
means— a any site in respect of which a nuclear site licence is for the time being in force, or b any site in respect of which, after the revocation or surrender of a nuclear site licence, the period of responsibility of the licensee has not yet come to an end. 3 In subsection (2) “nuclear site licence”, “licensee” and “period of responsibility” have the same meaning as in the Nuclear Installations Act 1965.”
obtain a relevant tax advantage
means secure that the return (or any part of it) is produced in a way which means that its treatment for corporation tax purposes is more advantageous to the company than it would be if it were— a charged to corporation tax as income of the company, or b brought into account as income of the company for corporation tax purposes, at the time when amounts would be brought into account in relation to the return in accordance with section 486B. 5 Nothing in this section applies in relation to a company for an accounting period if the company is an excluded controlled foreign company. 6 For this purpose a company is an excluded controlled foreign company if any o
officer
means a member.”
Offshore fund
means— a a mutual fund constituted by a body corporate resident outside the United Kingdom, b a mutual fund under which property is held on trust for the participants where the trustees of the property are not resident in the United Kingdom, or c a mutual fund constituted by other arrangements that create rights in the nature of co-ownership where the arrangements take effect by virtue of the law of a territory outside the United Kingdom (but see subsection (3)). 3 Subsection (2)(c) does not include a mutual fund constituted by two or more persons carrying on a trade or business in partnership. 4 “This group of sections” means this section and sections 40B to 42A. 5 References to participants in arrangements (or a fund) are to persons taking part in the arrangements (or the arrangements constituting the fund), whether by becoming the owner of, or of any part of, the property that is the subject of the arrangements or otherwise (and references to participation in arrangements or a fund, however expressed, are to be read accordingly). 6 In this section— • “body corporate” does not include a limited liability partnership;
oil
includes any substance which would be oil if the enactments mentioned in section 1(1) of the principal Act extended to a foreign field;
oil field
includes a foreign field;
oil taxation legislation
means Part 1 of the principal Act and any enactment construed as one with that Part;
open-ended investment company
has the meaning given by section 236 of FISMA 2000;
ordinary share
means a share that does not carry any present or future preferential right to dividends or to a company's assets on its winding up. 2 A share is regarded as “redeemable” for the purposes of this Part only if it is redeemable as a result of its terms of issue (or any collateral arrangements)— a requiring redemption, b entitling the holder to require redemption, or c entitling the issuing company to redeem. 931V “ For the purposes of this Part— • “scheme” includes any scheme, arrangements or understanding of any kind whatever, whether or not legally enforceable, involving a single transaction or two or more transactions;
overpayment
means an amount repayable in accordance with section 59B(3), (4) or (5) of TMA 1970;
partnership
includes an entity established under the law of a country or territory outside the United Kingdom of a similar character to a partnership, and “partner” is to be read accordingly;
partnership member
means a limited partnership formed under the law of Scotland, or a limited liability partnership formed under the law of any part of the United Kingdom, which is a member of Lloyd's.
payment on account
means a payment on account required under section 28 of VATA 1994;
Payment representing interest
means a payment calculated in the same way as interest which would have been paid to the recipient but for the circumstances giving rise to the making of payments under the FSCS. 3 Where a payment representing interest is made net of an amount equal to a sum representing income tax that would have been deducted on the payment of interest, the amount treated as interest by this section is the aggregate of the payment representing interest and that sum. 4 This section applies to payments made under the FSCS whether or not they are made (in whole or in part) on behalf of the Treasury or any other person. 5 In this section “the FSCS” means the Financial Services C
penalty
includes surcharge and penalty interest.
pension scheme
has the same meaning as in Part 4 of FA 2004;
Pensions matter
means any matter relating to— a a registered pension scheme, b an annuity purchased with sums or assets held for the purposes of a registered pension scheme or a pre-2006 pension scheme, or c an employer-financed retirement benefits scheme. 3 In relation to such a third party notice— a paragraph 3(1) (approval etc of third party notices) does not apply, b paragraph 4(1) (copying third party notices to taxpayer) does not apply, and c paragraph 30(1) (appeal) has effect as if it permitted an appeal on any grounds. 4 In relation to such a notice under paragraph 5— a sub-paragraphs (3) and (4) of that paragraph (approval of tribunal) have effect as if they permitted, but did not require, an authorised officer of Revenue and Customs to obtain the approval of the tribunal, and b paragraph 31 (appeal) has effect as if it permitted an appeal on any grounds. 5 A person may not appeal against a requirement in the notice to provide any information, or produce any document, that forms part of any person's statutory records. 6 Where the notice relates to a matter within sub-paragraph (2)(a) or (b), the officer of Revenue and Customs who gives the notice must give a copy of the
penultimate chargeable period
means the chargeable period preceding the final chargeable period;
permitted period
means the period of 4 years beginning with the date on which the notice of the decision under paragraph 3 was given (but see sub-paragraph (2C)). 2C Where the relevant amount was overstated in the notice of decision as a result of an inaccuracy in a statement or declaration made by the responsible person (or a person acting on behalf of the responsible person) in connection with the claim— a if the inaccuracy was careless, the permitted period is extended to 6 years, and b if the inaccuracy was deliberate, the permitted period is extended to 20 years.”
petrol
has the meaning given by Article 2 of Directive 98/70/EC of the European Parliament and of the Council;
pleasure cruise
includes a cruise wholly or partly for education or training. 3 1 A supply of services consisting of the short-term hiring of a means of transport is to be treated as made in the country in which the means of transport is actually put at the disposal of the person by whom it is hired.
pre-2006 pension scheme
means a scheme that, at or in respect of any time before 6 April 2006, was— (a) a retirement benefits scheme approved for the purposes of Chapter 1 of Part 14 of ICTA, (b) a former approved superannuation fund (as defined in paragraph 1(3) of Schedule 36 to FA 2004), (c) a relevant statutory scheme (as defined in section 611A of ICTA) or a pension scheme treated as if it were such a scheme, or (d) a personal pension scheme approved under Chapter 4 of Part 14 of ICTA;
pre-abolition chargeable period
means a chargeable period that begins before 30 June 2009;
Pre-commencement acquisition cost
means the total of the consideration, costs and expenditure that would have been allowable as a deduction under section 38(1)(a) and (b) of TCGA 1992 if the participant had disposed of the rights immediately before the effective date.
pre-control profits
means any profits available for distribution at the time the dividend is paid that arose at a time when neither condition A nor condition B in section 931E was met. 7 Where— a the condition in subsection (2)(a) is met, and b by virtue of subsection (5) part of a dividend is treated as paid in respect of pre-control profits and part is treated as paid in respect of profits other than pre-control profits, the two parts are treated for the purposes of this Part and Part 18 of ICTA (double taxation relief) as separate dividends. 931K 1 This section applies to a dividend or other distribution that would, apart from this section, fall into an exempt class by virtue of section 931F. 2 The distribution does not fall into an exempt class by virtue of that section if— a the distribution is made as part of a scheme the main purpose, or one of the main purposes, of which is to secure that distributions of the payer received by the recipient fall into an exempt class by virtue of that section, and b the following condition is met. 3 The condition is that the distribution is made in respect of a share that— a would not be an ordinary share, or b would be redeemable, were th
premium
includes a grassum. 105B 1 This section applies to a lease (“the original lease”) that contains one or more relevant break clauses. 2 For the purposes of this section— a “break clause” means a provision of a lease that gives a person a right to terminate it so that its term is shorter than it otherwise would be, and b a break clause contained in the original lease is “relevant” if the right to terminate the lease that it confers is capable of being exercised in such a way that the term of the original lease is 10 years or less. 3 For the purposes of section 105A— a the term of the original lease, and b the net amount payable by P in relation to the lease by way of lease premium, ar
prescribed
means prescribed in regulations made by HMRC;
prescribed accounting period
has the same meaning as in VATA 1994;
Produce a broadly compensatory amount
means give rise to a sum or sums payable as mentioned in subsection (3) of an amount (or aggregate amount) which, after making the appropriate tax adjustments, is not significantly less than the relevant amount. 7 For the purposes of subsections (3) and (6) causing the value of an asset to be obtainable, directly or indirectly, by a person is to be treated as equivalent to giving rise to a sum payable to the person of an amount equal to that value. 8 To make the appropriate tax adjustments for the purpose of subsection (3) or (6)— a if A exceeds B, deduct the amount of the excess from the amount (or aggregate amount), and b if B exceeds A, add the amount of the excess to the amount (or aggregate amount). 9 For the purposes of subsection (8)— • A is the amount of any income tax, any capital gains tax and any tax under the law of a territory outside the United Kingdom to which the borrower is liable in consequence of the arrangements, and • B is the amount by which the borrower's liability to income tax and capital gains tax is (or apart from subsection (1) would be) reduced in consequence of the arrangements. 10 Arrangements seem to have been
Produce a post-tax advantage
means give rise to a sum or sums— a payable to the borrower or a person connected with the borrower, or b payable to any other person for the benefit of the borrower or a person connected with the borrower, of an amount (or aggregate amount) which, after making the appropriate tax adjustments, is equal to or greater than the relevant amount. 4 “The relevant amount” is the aggregate of— a the amount required to meet the borrower's obligations in respect of the loan, and b any amount which is used by the borrower in the same way as that which entitles the borrower to relief under this Chapter in respect of the loan and is not money lent to the borrower under any loan. 5 If, with a view to securing that the condition in subsection (1)(a) is not met, the arrangements make provision for securing that, in all or any circumstances in which they do not produce a post-tax advantage, they will produce a broadly compensatory amount, the arrangements are to be regarded for the purposes of subsection (2) as making provision for securing the production of a post-tax advantage in those circumstances. 6 “Produce a broadly compensatory amount” means give rise to a sum
property business
has the same meaning as in ITTOIA 2005 (see section 263(6) of that Act).
prospective investment trust
means a company that— (a) intends to seek approval under section 1158 of CTA 2010 (meaning of “investment trust”), and (b) has a reasonable belief that such approval will be obtained;
provisional expenditure allowance
means an amount calculated under section 2(9)(a) of OTA 1975.
qualifying assets
means assets that are qualifying assets within the meaning of OTA 1983;
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 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 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. 9 Section
qualifying distribution
has the meaning given in section 989 of ITA 2007.
qualifying flat
means a flat that is held by a qualifying tenant who is participating in the exercise of the right.”
qualifying holding company
means a controlled foreign company that was an exempt holding company in relation to the last accounting period to end before 1 July 2009.
qualifying interest
means— except that it does not include a lease for a term of years, or (in Scotland) for a period, of 21 years or less.
qualifying investments
has the meaning given in section 494 of CTA 2009.”
qualifying lease payments
means the minimum payments under the lease (including any initial payment), excluding the following— a so much of any payment as, under generally accepted accounting practice, falls (or would fall) to be treated as the gross return on investment in respect of the lease, b so much of any payment as represents charges for services, and c so much of any payment as represents qualifying UK or foreign tax (within the meaning of section 70YE) to be paid by the lessor.”
quality
includes timing, nature and extent.
real
has the meaning given by section 353(1) of the Gambling Act 2005, f “game of chance” has the meaning given by section 6(2) of that Act, and g “bingo” includes any version of that game, whatever name it is called. 6 The Treasury may by order amend this section.”
registered pension scheme
means a pension scheme that is or has been a registered pension scheme within the meaning of Part 4 of FA 2004 or in relation to which an application for registration under that Part of that Act has been made;
related transactions
means transactions in the case of which it is reasonable to assume from either or both of— a the likely effect of the transactions, and b the circumstances in which the transactions are entered into or effected, that the transactions would not have been entered into or effected independently of the arrangements. 13 Transactions are not prevented from being related transactions just because the transactions— a are not between the same parties, or b are not between parties to the arrangements.”
relevant accounting period
means an accounting period beginning on or after 1 April 2003 but before the day appointed under paragraph 12(2)(b);
relevant acquisition
means the acquisition of the new assets that is comprised in the disposal and acquisition to which a claim under section 198A or 198B or declaration under section 198C relates;
relevant admissible value
means the value reflected in line 89 of Form 13 of the periodical return for the current period of account. 8 Condition C is that the surplus arising since the last valuation shown in line 34 of the Form 58 of the non-profit fund, or any of the non-profit funds, in relation to which condition A or B is met in the periodical return for the current period of account is a negative amount. 434AZB 1 The amount of the relief allowable as mentioned in section 434AZA(1) is reduced by whichever of the following is the least— a the amount of the loss, b the amount specified in subsection (2), and c the amount specified in subsection (4). 2 The amount mentioned in subsection
relevant amount
means any sum that was paid in connection with any liability (including any purported or anticipated liability) to make a payment to HMRC under or by virtue of an enactment, and
relevant area
means an area that is treated as being an oil field, or part of an oil field, under paragraph 6;
relevant balance sheet total
means the company's balance sheet total.
relevant body
means a company or other body corporate but does not include a limited liability partnership;
Relevant chargeable period
means— a in the case of a further assessment under paragraph 12(2), the chargeable period in which the excessive allowable loss accrued, and b in any other case, the chargeable period to which the assessment relates. 5 Where the participator carried on a trade or business with one or more other persons at any time in the chargeable period for which the assessment under sub-paragraph (1) or (2) is made, an assessment to tax in respect of the profits of that trade or business may also be made on any of the participator's partners. 6 In determining the amount of the tax to be charged on a person for a chargeable period in an assessment in a case mentioned in sub-par
Relevant claim
means a claim within paragraph 3(2)(a) of Schedule 1AB to TMA 1970 that—
Relevant consideration
means— but does not include any amount in respect of VAT.
Relevant date
means the date on which P becomes liable to a penalty under paragraph 6.
relevant deduction
has the meaning given in section 479(3A).”
Relevant disposal value
means— a in relation to a long funding finance lease, the disposal value described in item 5A of the table in section 61(2) of the Capital Allowances Act (disposal values), and b in relation to a long funding operating lease, the disposal value described in item 5B of that table.”
Relevant enactment
means— a PAYE regulations, b Chapter 3 of Part 3 of the Finance Act 2004 or regulations under that Chapter (construction industry scheme), or c any other provision of or made under the Taxes Acts. 5 1 This paragraph applies where— a a trade, profession or business is carried on by two or more persons in partnership, b an amount is paid, or liable to be paid, by one or more of those persons in accordance with a self-assessment, and c the amount is excessive by reason of a mistake in a partnership return. 2 A claim under this Schedule in respect of the amount— a may be made by the relevant partner nominated to make the claim by all of the relevant partners, and b may not be made by any other person. 3 In relation to such a claim, references in this Schedule to the claimant are to any of the relevant partners. 4 “Relevant partner” means— a a person who was a partner in the partnership at any time during the period in respect of which the partnership return was made, or b the personal representative of such a person. 6 1 This paragraph applies where— a a claim is made under this Schedule, b the grounds for giving effect to the claim also provide grounds for a disco
relevant enactments
means— (a) the Corporation Tax Acts, and (b) the enactments relating to petroleum revenue tax;
relevant establishment
means whichever of the person's business establishment, or other fixed establishments, is most directly concerned with the supply. 5 A person who is not a relevant business person is to be treated as belonging in the country in which the person's usual place of residence is. 6 In this section “usual place of residence”, in relation to a body corporate, means the place where it is legally constituted.”
relevant harm
means— a death of living organisms or significant injury or damage to living organisms, b significant pollution of controlled waters, c a significant adverse impact on the ecosystem, or d structural or other significant damage to buildings or other structures or interference with buildings or other structures that significantly compromises their use. 1145A For the purposes of this Part land is in a derelict state if (and only if) the land— a is not in productive use, and b cannot be put into productive use without the removal of buildings or other structures. 1145B 1 A nuclear site is not land in a contaminated state or land in a derelict state for the purposes of this Part.
Relevant income-producing assets
means assets that produce income on which, if they were held directly by an individual resident in the United Kingdom, the individual would be charged to income tax (subject to the following provisions of this section). 2 An asset is not a relevant income-producing asset if the asset is hedged, provided that no income is expected to arise from— a the asset (taking account of the hedging), or b any product of the hedging arrangements. 3 Cash awaiting investment is not a relevant income-producing asset, provided that the cash, and any income that it produces while awaiting investment, is invested as soon as reasonably practicable in assets that are not releva
relevant information
means information which has been withheld by a failure to make a return.
Relevant intervention
means—
relevant participator
means the participator in respect of which the relevant allowance has been calculated;
Relevant partner
means— a a person who was a partner in the partnership at any time during the period in respect of which the partnership return was made, or b the personal representative of such a person. 6 1 This paragraph applies where— a a claim is made under this Schedule, b the grounds for giving effect to the claim also provide grounds for a discovery assessment or determination on the claimant in respect of any chargeable period, and c such an assessment or determination could be made but for a relevant restriction. 2 “Discovery assessment or determination” means— a an assessment under section 29(1), or b a discovery assessment or discovery determination under Schedule 18 to the Finance Act 1998 (company tax return etc). 3 The following are relevant restrictions— a the conditions in section 29(3) to (5), b the restrictions in paragraphs 42 to 45 of Schedule 18 to the Finance Act 1998, and c the expiry of a time limit for making a discovery assessment or determination. 4 Where this paragraph applies— a the relevant restrictions are to be disregarded, and b the discovery assessment or determination is not out of time if it is made before the final determination of the claim
Relevant person
means— a the occupier of the premises, or b if the occupier cannot be identified or the premises are vacant, a person who controls the premises. 4 Condition B is that— a the inspection has been approved by the tribunal, and b any relevant person specified by the tribunal has been given at least 7 days' notice in writing of the time of the inspection. 5 A notice under sub-paragraph (4)(b) must state the possible consequences of obstructing the officer in the exercise of the power. 6 If a notice is given under this paragraph in respect of an inspection approved by the tribunal (see paragraph 13), it must state that the inspection has been so approved. 7 An officer of Revenue
relevant preparatory activity
has the same meaning as for the purposes of subsection (1)(b) of section 1146 (see subsection (4) of that section, but reading the reference to subsection (1)(a) of that section as a reference to subsection (1)(a) of this section).”
relevant profits
means any profits available for distribution at the time that the dividend is paid, other than profits that reflect the results of a transaction, or of one or more of a series of transactions, where— a the transaction or series of transactions achieve a reduction (other than a negligible reduction) in United Kingdom tax, and b the purpose or one of the main purposes of that transaction or series of transactions is to achieve that reduction. 3 A dividend that falls into an exempt class otherwise than by virtue of this section is for the purposes of this section treated, so far as possible, as paid in respect of relevant profits. 4 Any other dividend is for the purposes of this section treated, so far as possible, as paid in respect of profits other than relevant profits. 5 Where by virtue of subsection (4) part of a dividend is treated as paid in respect of relevant profits and part is treated as paid in respect of profits other than relevant profits, the two parts are treated for the purposes of this Part and Part 18 of ICTA (double taxation relief) as separate dividends. 931I A dividend falls into an exempt class if the dividend is paid in respect of a share to
Relevant rebate
means— a in a case falling within subsection (1A)(a), any amount calculated by reference to the termination value that is payable for the benefit (directly or indirectly) of the person or another person connected with that person, or b in a case falling within subsection (1A)(b) or (c), any such amount that would have been so payable if, when the relevant event occurred, the lease had terminated and the plant or machinery had been sold for its market value at that time. 2G In the case of a lease that is not a transaction at arm's length, “relevant rebate” includes any amount that would reasonably be expected to have fallen within subsection (2F) if the lease had been such a
Relevant receipts
means any income— a which (but for the transfer) would be charged to income tax as income of the transferor, or b which (but for the transfer) would be brought into account in calculating profits of the transferor for the purposes of income tax. 3 Despite paragraph (b) of subsection (1), this Chapter applies if the transfer of the right is a consequence of the transfer to the transferee of all rights under an agreement for annual payments;
relevant shares
means shares which, throughout the relevant period, are— a fully paid-up shares of a relevant company, or b shares of a company, other than a relevant company, which would be accounted for as a liability by the company in which they are shares in accordance with generally accepted accounting practice and which produce for the holding company a return in relation to any amount which is economically equivalent to interest (as to which see Chapter 6A). 6 For the purposes of subsection (5)(a) shares are fully paid-up if there are no actual or contingent obligations— a to meet unpaid calls on the shares, or b to make a contribution to the capital of the company in which they are
Relevant situation
means a situation in which— a there is a loss of tax, b the assessable profit charged to tax by or stated in an assessment for a chargeable period ought to be or to have been larger, c the allowable loss stated in an assessment or a determination of loss for a chargeable period ought to be or to have been smaller, or d an assessment to tax should have been made for a chargeable period but was not made. 4 “Relevant chargeable period” means— a in the case of a further assessment under paragraph 12(2), the chargeable period in which the excessive allowable loss accrued, and b in any other case, the chargeable period to which the assessment relates. 5 Where the participator
relevant tax year
means the tax year 2003-04 and any subsequent tax year up to and including the tax year 2009-2010.
relevant transaction
means any of the transactions giving rise to the distribution. 931R 1 This section applies where, apart from this section, a distribution (“the distribution”) would be exempt. 2 If the recipient so elects, the distribution is not exempt. 3 An election under this section must be made on or before the second anniversary of the end of the accounting period in which the distribution is received. 4 Subsection (5) applies where the distribution is a dividend that is treated for certain purposes of Part 18 of ICTA (double taxation relief) as two separate dividends by virtue of section 801C of that Act (separate streaming of dividend so far as representing an ADP dividend of a CFC). 5 If the recipient so elects— a the distribution is to be treated for the purposes of this Part as if it were an ADP dividend and a separate residual dividend as provided for in that section of that Act, and b the ADP dividend is not exempt. 6 The reference in subsection (4) to section 801C of ICTA is to that section as it continues to have effect in accordance with paragraph 8(1) of Schedule 16 to FA 2009 in relation to dividends paid on or after 1 July 2009 for accounting periods beginn
relevant turnover
means the aggregate turnover of the company (“C”) and any other company that was a member of the same group as C at the end of C's previous financial year, and
relevant VAT return
means the VAT return for the prescribed accounting period to which the VAT credit relates;
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 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— 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. 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— • “assured shorthold tenancy” has the same meaning as in Part 1 of the Housing Act 1988;
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 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. 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 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 disregarded. 5 In this paragraph— • “assured shorthold tenancy” has the same meaning as in Part 1 of the Housing Act 1988;
rental earnings
has the same meaning as in... section 148A of ITTOIA 2005, and
repayment interest
means interest payable under section 102;
resident for tax purposes
means liable, under the law of the non-qualifying territory, to tax there by reason of domicile, residence or place of management.”
restoration
means work, other than capping waste, which is required by a relevant instrument to be carried out to restore a landfill site to use on completion of waste disposal operations. 3 The following are relevant instruments— a a planning consent, b a waste management licence, and c a permit authorising the disposal of waste on or in land.”
return period
means a period for which a return is required to be made under Chapter 15 of Part 15 of ITA 2007.
revenue
has the meaning given in section 5(4) of CRCA 2005.
ring fence profits
has the meaning given by section 276 of CTA 2010.
ring fence trade
has the meaning given in section 198. 198F 1 This section applies for the purposes of sections 198A and 198B and section 198G. 2 A disposal and acquisition qualifies for roll-over relief if— a the consideration for the disposal is applied in an acquisition as mentioned in section 152(1), and b section 152(1)(a) and (b) would apply to the disposal and acquisition if the appropriate claim were made. 3 Subsections (4) to (6) apply in deciding whether a disposal and acquisition is one that qualifies for roll-over relief. 4 Section 152(8) is to be disregarded. 5 Section 198A is to be disregarded. 6 Subject to subsections (4) to (5), all the circumstances are to be taken into ac
road fuel gas
has the same meaning as in section 171(1) of ITEPA 2003;
Scheme
includes any arrangements, transaction or series of transactions.
shared ownership lease
has the same meaning as in paragraph 4A. 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 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 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. 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 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 disregarded. 5 In this paragraph
similar establishment
includes premises in which there is provided furnished sleeping accommodation, whether with or without the provision of board or facilities for the preparation of food, which are used by, or held out as being suitable for use by, visitors or travellers. 2 1 A supply of services consisting of the transportation of passengers (or of any luggage or motor vehicles accompanying passengers) is to be treated as made in the country in which the transportation takes place, and (in a case where it takes place in more than one country) in proportion to the distances covered in each. 2 For the purposes of sub-paragraph (1) transportation which takes place partly outside the territorial jurisdiction of a country is to be treated as taking place wholly in the country if— a it takes place in the course of a journey between two points in the country (whether or not as part of a longer journey involving travel to or from another country), and b the means of transport used does not (except in an emergency or involuntarily) stop, put in or land in another country in the course of the journey between those two points. 3 For the purposes of sub-paragraph (1) a pleasure cruise is
specified
means specified in the regulations.
straddling accounting period
means an accounting period that—
structural assets
has the same meaning as in section 83XA of the Finance Act 1989 (see subsection (3) of that section and any regulations made under it).”
sub-contractor payment
means a payment made by the company to the sub-contractor in respect of relevant land remediation contracted out by the company to the sub-contractor.”
subsidiary
has the meaning for the time being given by international accounting standards.
Supporting documents
includes accounts, books, deeds, contracts, vouchers and receipts.”
tax
includes stamp duty;
tax advantage
has the meaning given by section 208 of FA 2013.
tax advantage scheme
means a scheme the main purpose, or one of the main purposes, of which is to obtain a tax advantage (other than a negligible tax advantage). 2 In this section “tax advantage” has the meaning given by section 840ZA of ICTA. 931W 1 Any income so far as it falls within— a this Part, and b Chapter 2 of Part 3 (income taxed as trade profits), is dealt with under Part 3. 2 Any income so far as it falls within— a this Part, and b Chapter 3 of Part 4 (profits of property businesses) so far as the Chapter relates to a UK property business, is dealt with under Part 4. 3 Any income so far as it falls within— a this Part, and b Chapter 1 of Part 12 of ICTA (insurance companies), i
tax relief
means— (a) a reduction (by any means) of P's liability to any tax, or (b) a payable tax credit.
taxed investment income
means UK income or gains consisting of payments within section 946 from which a sum representing income tax has been deducted.”
telecommunication services
means services relating to the transmission, emission or reception of signals, writing, images and sounds or information of any nature by wire, radio, optical or other electromagnetic systems, including— a the related transfer or assignment of the right to use capacity for such transmission, emission or reception, and b the provision of access to global information networks. 3 Where— a a supply of services to which this paragraph applies would otherwise be treated as made in the United Kingdom, and b the services are to any extent effectively used and enjoyed in a country which is not a member State, the supply is to be treated to that extent as made in that coun
the 1971 Act
means the National Savings Bank Act 1971;
the commencement date
means—