60B When a company qualifies as small for a tax joint ventures (1) This section applies when determining for the purposes of section 60A(3) whether the small companies regime applies to a company for a financial (a) at the end of the financial year the company is jointly controlled by two or more other persons, and (b) one or more of those other persons are undertakings (“the joint (2) If the company is a parent company, the joint venturer undertakings are to be treated as members of the group headed by the company. (3) If the company is not a parent company, the company and the joint venturer undertakings are to be treated as constituting a group of which the company (4) In this section the expression “jointly controlled” is to be read in accordance with those provisions of international accounting standards which relate to (5) Expressions used in this section and in the Companies Act 2006 have the same meaning in this section as in that Act. 60C When a company qualifies as small for a tax subsidiaries (1) A company does not qualify as small for a tax year by reason of the condition in section 60A(3) being met if— (a) the company is a member of a group at the end of its last financial year that is relevant to the tax year, (b) the company is not the parent undertaking of that group at the end

SCHEDULE 1 – Workers’ services provided through intermediaries Document 2023-04-25 This is the original version (as it was originally enacted). (c) the undertaking that is the parent undertaking of that group at that time does not qualify as small in relation to its last financial year that is relevant to the tax year. (2) Where the parent undertaking mentioned in subsection (1)(c) is not a company, sections 382 and 383 of the Companies Act 2006 have effect for determining whether the parent undertaking qualifies as small in relation to its last financial year that is relevant to the tax year as if references in those sections to a company and a parent company included references to an undertaking and a parent undertaking. (3) For the purposes of subsections (1)(c) and (2) a financial year of an undertaking that is not a company is “relevant to” a tax year if it ends at least 9 months before the beginning of the tax year. (4) For the purposes of this section, a financial year of a company is “relevant to” a tax year if the period for filing the company’s accounts and reports for the financial year ends before the beginning of the tax year. (5) Expressions used in this section and in the Companies Act 2006 have the same meaning in this section as in that Act. 60D When a relevant undertaking qualifies as small for a tax year (1) Sections 60A to 60C apply in relation to a relevant undertaking as they apply in relation to a company, subject to any necessary modifications. (2) In this section “relevant undertaking” means an undertaking in respect of which regulations have effect under— (a) section 15(a) of the Limited Liability Partnerships Act 2000, (b) section 1043 of the Companies Act 2006 (unregistered companies), (c) section 1049 of the Companies Act 2006 (overseas companies). (3) Expressions used in this section and in the Companies Act 2006 have the same meaning in this section as in that Act. 60E When other undertakings qualify as small for a tax year (1) An undertaking that is not a company or a relevant undertaking qualifies as small for a tax year if one of the following conditions is met. (2) The first condition is that the undertaking’s first financial year is not relevant (3) The second condition is that the undertaking’s turnover for its last financial year that is relevant to the tax year is not more than the amount for the time (4) For the purposes of this section a financial year of an undertaking is “relevant to” a tax year if it ends at least 9 months before the beginning of the tax year. SCHEDULE 1 – Workers’ services provided through intermediaries Document 2023-04-25 This is the original version (as it was originally enacted). “relevant undertaking” has the meaning given by section 60D, “turnover”, in relation to an undertaking, means the amounts derived from the provision of goods or services after the deduction of trade discounts, value added tax and any other taxes based on the (6) Expressions used in this section and in the Companies Act 2006 have the same meaning in this section as in that Act. 60F When other persons qualify as small for a tax year (1) For the purposes of this Chapter, a person who is not a company, relevant undertaking or other undertaking qualifies as small for a tax year if the person’s turnover for the last calendar year before the tax year is not more than the amount for the time being specified in the second column of item 1 “company” and “undertaking” have the same meaning as in the “relevant undertaking” has the meaning given by section 60D, “turnover”, in relation to a person, means the amounts derived from the provision of goods or services after the deduction of trade discounts, value added tax and any other taxes based on the amounts 60G Sections 60A to 60F: connected persons (1) This section applies where— (a) it is necessary for the purposes of determining whether a person qualifies as small for a tax year (“the tax year concerned”) to first determine the person’s turnover for a financial year or calendar year (b) at the end of the assessment year the person is connected with one or more other persons (“the connected persons”).
(2) For the purposes of determining whether the person qualifies as small for the tax year concerned the person’s turnover for the assessment year is to be (a) the person’s turnover for the assessment year, and (b) the relevant turnover of each of the connected persons. (3) In subsection (2)(b) “the relevant turnover” of a connected person means— (a) in a case where the connected person is a company, relevant undertaking or other undertaking, its turnover for its last financial year that is relevant to the tax year concerned, and (b) in a case where the connected person is not a company, relevant undertaking or other undertaking, the turnover of the connected person for the last calendar year ending before the tax year

SCHEDULE 1 – Workers’ services provided through intermediaries Document 2023-04-25 This is the original version (as it was originally enacted). (4) For the purposes of subsection (3)(a)— (a) a financial year of a company or relevant undertaking is relevant to the tax year concerned if the period for filing accounts and reports for the financial year ends before the beginning of the tax year (b) a financial year of any other undertaking is relevant to the tax year concerned if it ends more than 9 months before the beginning of the (a) the person mentioned in subsection (1)(a) is a company or relevant (b) at the end of the assessment period the person is a member of a the person is to be treated for the purposes of this section as not being connected with any person that is a member of that group. “turnover”, in relation to a person, means the amounts derived from the provision of goods or services after the deduction of trade discounts, value added tax and any other taxes based on the amounts “relevant undertaking” has the meaning given by section 60D. (7) For provision determining whether one person is connected with another, see section 718 (connected persons). (8) Expressions used in this section and in the Companies Act 2006 have the same meaning in this section as in that Act. 60H Duty on client to state whether it qualifies as small for a tax year (1) This section applies if, in the case of an engagement that meets conditions (a) to (b) in section 49(1), the client receives from the client’s agent or the worker a request to state whether in the client’s opinion the client qualifies as small for a tax year specified in the request. (2) The client must provide to the person who made the request a statement as to whether in the client’s opinion the client qualifies as small for the tax year (3) If the client fails to provide the statement by the time mentioned in subsection (4) the duty to do so is enforceable by an injunction or, in Scotland, by an order for specific performance under section 45 of the Court (4) The time is whichever is the later of— (a) the end of the period of 45 days beginning with the date the client (b) the beginning of the period of 45 days ending with the start of the tax year specified in the request. SCHEDULE 1 – Workers’ services provided through intermediaries Document 2023-04-25 This is the original version (as it was originally enacted). (5) In this section “the client’s agent” means a person with whom the client entered into a contract as part of the arrangements mentioned in paragraph (b) of section 49(1). When a person has a UK connection 60I When a person has a UK connection for a tax year (1) For the purposes of this Chapter, a person has a UK connection for a tax year if (and only if) immediately before the beginning of that tax year the (a) is resident in the United Kingdom, or (b) has a permanent establishment in the United Kingdom. (2) In this section “permanent establishment”— (a) in relation to a company, is to be read (by virtue of section 1007A of ITA 2007) in accordance with Chapter 2 of Part 24 of CTA 2010, and (b) in relation to any other person, is to be read in accordance with that Chapter but as if references in that Chapter to a company were 6 In section 61(1) (interpretation), in the definition of company, before “means” insert “(except in sections 60A to 60G)”. 7 Chapter 10 of Part 2 of ITEPA 2003 (workers’ services provided to public sector through intermediaries) is amended as follows. 8 For the heading of the Chapter substitute “Workers’ services provided through intermediaries to public authorities or medium or large clients”. 9 (1) Section 61K (scope of Chapter) is amended as follows. (2) In subsection (1) for the words “to a public authority through an intermediary” substitute “through an intermediary in a case where the services are provided to a (b) qualifies as medium or large and has a UK connection for a tax year”. (3) After subsection (2) insert— “(3) For the purposes of this Chapter a person qualifies as medium or large for a tax year if the person does not qualify as small for the tax year for the purposes of Chapter 8 of this Part (see sections 60A to 60G). (4) Section 60I (when a person has a UK connection for a tax year) applies for the purposes of this Chapter.”

SCHEDULE 1 – Workers’ services provided through intermediaries Document 2023-04-25 This is the original version (as it was originally enacted). 10 In section 61L (meaning of “public authority”) in subsection (1)— (a) after paragraph (a) insert— “(aa) a body specified in section 23(3) of the Freedom of (b) omit the “or” at the end of paragraph (e), and (c) after paragraph (f) insert “, or (g) a company connected with any person mentioned in 11 (1) Section 61M (engagements to which the Chapter applies) is amended as follows.
(b) omit the “and” at the end of paragraph (c), and (c) after paragraph (c) insert— (ii) is a person who qualifies as medium or large and has a UK connection for one or more tax years during which the arrangements mentioned in paragraph (c) (3) After subsection (1) insert— “(1A) But sections 61N to 61R do not apply if— (a) the client is an individual, and (b) the services are provided otherwise than for the purposes of the 12 (1) Section 61N (worker treated as receiving earnings from employment) is amended (a) after “subsections (5) to (7)” insert “and (8A)”, and (b) after “61T” insert “, 61TA”. (3) For subsection (5) substitute— “(5) Unless and until the client gives a status determination statement to the worker (see section 61NA), subsections (3) and (4) have effect as if for any reference to the fee-payer there were substituted a reference to the client; but this is subject to section 61V. (5A) Subsections (6) and (7) apply, subject to sections 61T, 61TA and 61V, if— (a) the client has given a status determination statement to the worker, (b) the client is not the fee-payer, and (c) the fee-payer is not a qualifying person.” (4) In subsection (8) (meaning of “qualifying person”) before paragraph (a) insert— “(za) has been given by the person immediately above them in the chain the status determination statement given by the client to the (5) After subsection (8) insert—

SCHEDULE 1 – Workers’ services provided through intermediaries Document 2023-04-25 This is the original version (as it was originally enacted). “(8A) If the client is not a public authority, a person is to be treated by subsection (3) as making a deemed direct payment to the worker only if the chain payment made by the person is made in a tax year for which the client qualifies as medium or large and has a UK connection.” “61NA Meaning of status determination statement (1) For the purposes of section 61N “status determination statement” means a (a) states that the client has concluded that the condition in section 61M(1)(d) is met in the case of the engagement and explains the reasons for that conclusion, or (b) states (albeit incorrectly) that the client has concluded that the condition in section 61M(1)(d) is not met in the case of the engagement and explains the reasons for that conclusion. (2) But a statement is not a status determination statement if the client fails to take reasonable care in coming to the conclusion mentioned in it. (3) For further provisions concerning status determination statements, see section 61T (client-led status disagreement process) and section 61TA (duty for client to withdraw status determination statement if it ceases to be 14 In section 61O(1) (conditions where intermediary is a company) for paragraph (b) (i) the worker has a material interest in the intermediary, (ii) the worker has received a chain payment from the (iii) the worker has rights which entitle, or which in any circumstances would entitle, the worker to receive a chain payment from the intermediary.” 15 In section 61R (application of Income Tax Acts in relation to deemed employment) 16 For section 61T substitute— “61T Client-led status disagreement process (1) This section applies if, before the final chain payment is made in the case of an engagement to which this Chapter applies, the worker or the deemed employer makes representations to the client that the conclusion contained in a status determination statement is incorrect. (a) give a statement to the worker or (as the case may be) the deemed (i) states that the client has considered the representations and has decided that the conclusion contained in the status determination statement is correct, and

SCHEDULE 1 – Workers’ services provided through intermediaries Document 2023-04-25 This is the original version (as it was originally enacted). (ii) states the reasons for that decision, or (b) give a new status determination statement to the worker and the (i) contains a different conclusion from the conclusion contained in the previous status determination statement, (ii) states the date from which the client considers that the conclusion contained in the new status determination (iii) states that the previous status determination statement is (3) If the client fails to comply with the duty in subsection (2) before the end of the period of 45 days beginning with the date the client receives the representations, section 61N(3) and (4) has effect from the end of that period until the duty is complied with as if for any reference to the fee-payer there were substituted a reference to the client; but this is subject to section 61V. (4) A new status determination statement given to the deemed employer under subsection (2)(b) is to be treated for the purposes of section 61N(8)(za) as having been given to the deemed employer by the person immediately above the deemed employer in the chain. “the deemed employer” means the person who, assuming one of conditions A to C in section 61N were met, would be treated as making a deemed direct payment to the worker under section 61N(3) on the making of a chain payment; “status determination statement” has the meaning given by 61TA Duty for client to withdraw status determination statement if it ceases to (1) This section applies if in the case of an engagement to which this Chapter (a) the client is not a public authority, (b) the client gives a status determination statement to the worker, the (c) the client does not (but for this section) qualify as medium or large for a tax year beginning after the status determination statement is (2) Before the beginning of the tax year the client must give a statement to the relevant person, or (as the case may be) to both of the relevant persons, (a) that the client does not qualify as medium or large for the tax year, (b) that the status determination statement is withdrawn with effect from the beginning of the tax year.
(3) If the client fails to comply with that duty the following rules apply in relation to the engagement for the tax year—

SCHEDULE 1 – Workers’ services provided through intermediaries Document 2023-04-25 This is the original version (as it was originally enacted). (a) the client is to be treated as medium or large for the tax year, and (b) section 61N(3) and (4) have effect as if for any reference to the fee- payer there were substituted a reference to the client. (4) For the purposes of subsection (2)— (a) the worker is a relevant person if the status determination statement (b) the deemed employer is a relevant person if the status determination statement was given to the client’s agent. “client’s agent” means a person with whom the client entered into a contract as part of the arrangements mentioned in section 61M(1) “the deemed employer” means the person who, assuming one of conditions A to C in section 61N were met, would be treated as making a deemed direct payment to the worker under section 61N(3) on the making of a chain payment; “status determination statement” has the meaning given by 17 (1) Section 61W (prevention of double charge to tax and allowance of certain deductions) is amended as follows. (a) in paragraph (b) for “a public authority” substitute “another person (“the (b) in paragraph (d) for “that public authority” substitute “the client”. (3) In subsection (2)(b) for “public authority” substitute “client”. 18 In section 61D of ITEPA 2003 (managed service worker treated as receiving earnings from employment) for subsection (4A) substitute— “(4A) This section does not apply where the provision of the relevant services gives rise (directly or indirectly) to an engagement to which Chapter 10 applies (a) the client for the purposes of section 61M(1) is a public authority, or (b) the client for the purposes of section 61M(1)— (i) qualifies as medium or large for the tax year in which the payment or benefit mentioned in subsection (1)(b) is (ii) has a UK connection for the tax year in which the payment or benefit mentioned in subsection (1)(b) is received. (4B) Sections 60I (when a person has a UK connection for a tax year), 61K(3) (when a person qualifies as medium or large for a tax year) and 61L (meaning of public authority) apply for the purposes of subsection (4A). SCHEDULE 1 – Workers’ services provided through intermediaries Document 2023-04-25 This is the original version (as it was originally enacted). (4C) It does not matter for the purposes of subsection (4A) whether the client for the purposes of this Chapter is also “the client” for the purposes of 19 After section 688A of ITEPA 2003 insert— “688AA Workers’ services provided through recovery of (1) PAYE Regulations may make provision for, or in connection with, the recovery of a deemed employer PAYE debt from a relevant person. (2) “A deemed employer PAYE debt” means an amount— (a) that a person (“the deemed employer”) is liable to pay under PAYE regulations in consequence of being treated under section 61N(3) as having made a deemed direct payment to a worker, and (b) that an officer of Revenue and Customs considers there is no realistic prospect of recovering from the deemed employer within a (3) “Relevant person”, in relation to a deemed employer PAYE debt, means a person who is not the deemed employer and who— (a) is the highest person in the chain identified under section 61N(1) in determining that the deemed employer is to be treated as having made the deemed direct payment, or (b) is the second highest person in that chain and is a qualifying person (within the meaning given by section 61N(8)) at the time the deemed employer is treated as having made that deemed direct payment.” 20 In section 60 of FA 2004 (construction industry meaning of contract payments) after subsection (3) insert— “(3A) This exception applies in so far as— (a) the payment can reasonably be taken to be for the services of an (b) the provision of those services gives rise to an engagement to which Chapter 10 of Part 2 of ITEPA 2003 applies (workers’ services provided through intermediaries to public authorities or medium or (3B) But the exception in subsection (3A) does not apply if, in the case of the engagement mentioned in paragraph (b) of that subsection, the client for the purposes of section 61M(1) of ITEPA 2003— (a) is not a public authority, and (i) does not qualify as medium or large for the tax year in which the payment concerned is made, or (ii) does not have a UK connection for the tax year in which the (3C) Sections 60I (when a person has a UK connection for a tax year), 61K(3) (when a person qualifies as medium or large for a tax year) and 61L

SCHEDULE 1 – Workers’ services provided through intermediaries Document 2023-04-25 This is the original version (as it was originally enacted). (meaning of public authority) of ITEPA 2003 apply for the purposes of 21 For the italic heading before section 141A of CTA 2009 substitute “Worker’s services provided through intermediary to public authority or medium or large 22 In the heading of section 141A of CTA 2009 for “public sector” substitute “public authority or medium or large client”.
23 (1) Part 13 of CTA 2009 (additional relief for expenditure on research and development) (2) In section 1129 (qualifying expenditure on externally provided connected persons) after subsection (4) insert— “(4A) In subsection (2) the reference to the staff provision payment is to that payment before any deduction is made from the payment under— (a) section 61S of ITEPA 2003, (b) regulation 19 of the Social Security Contributions (Intermediaries) (c) regulation 19 of the Social Security Contributions (Intermediaries) (Northern Ireland) Regulations 2000.” (3) In section 1131 (qualifying expenditure on externally provided other cases) “(3) In subsection (2) the reference to the staff provision payment is to that payment before any deduction is made from the payment under— (a) section 61S of ITEPA 2003, (b) regulation 19 of the Social Security Contributions (Intermediaries) (c) regulation 19 of the Social Security Contributions (Intermediaries) (Northern Ireland) Regulations 2000.” (4) After section 1131 insert— “1131A Sections 1129 and 1131: secondary Class 1 NICS paid by company (a) a company makes a staff provision payment, (b) the company is treated as making a payment of deemed direct earnings the amount of which is calculated by reference to the amount of the staff provision payment, and (c) the company pays a secondary Class 1 national insurance contribution in respect of the payment of deemed direct earnings. (2) In determining the company’s qualifying expenditure on externally provided workers in accordance with section 1129(2) or section 1131(2) the amount of the staff payment provision is to be treated as increased by the amount (3) In determining the company’s qualifying expenditure on externally provided workers in accordance with section 1129(2) the aggregate of the relevant

SCHEDULE 1 – Workers’ services provided through intermediaries Document 2023-04-25 This is the original version (as it was originally enacted). expenditure of each staff controller is to be treated as increased by the amount (4) But subsection (2) does not apply to the extent that the expenditure incurred by the company in paying the contribution is met directly or indirectly by (5) “A payment of deemed direct earning” means a payment the company is treated as making by reason of regulation 14 of the Social Security Contributions (Intermediaries) Regulations 2000 or regulation 14 of the Social Security Contributions (Intermediaries) (Northern Ireland) 24 The amendments made by Part 1 of this Schedule have effect for the tax year 2021-22 25 The amendments made by Part 2 of this Schedule have effect in relation to deemed direct payments treated as made on or after 6 April 2021. 26 The amendment made by paragraph 18 of this Schedule has effect for the purposes of determining whether section 61D of ITEPA 2003 applies in a case where the payment or benefit mentioned in subsection (1)(b) of that section is received on or after 6 27 The amendment made by paragraph 20 of this Schedule has effect in relation to payments made under a construction contract on or after 6 April 2021. 28 The amendments made by paragraph 23 of this Schedule have effect in relation to expenditure incurred on or after 6 April 2021. 29 Sections 101 to 103 of FA 2009 (interest) come into force on 6 April 2021 in relation to amounts payable or paid to Her Majesty’s Revenue and Customs under regulations made by virtue of section 688AA of ITEPA 2003 (as inserted by paragraph 19 of 30 (1) This paragraph applies where— (a) the client in the case of an engagement to which Chapter 10 of Part 2 of ITEPA 2003 applies is not a public authority within the meaning given by section 61L of ITEPA 2003 (as that section had effect before the amendments made by paragraph 10 of this Schedule), and (b) a chain payment is made on or after 6 April 2021 that can reasonably be taken to be for services performed by the worker before 6 April 2021. (2) The chain payment is to be disregarded for the purposes of Chapter 10 of Part 2 of 31 (1) This paragraph applies where—

SCHEDULE 1 – Workers’ services provided through intermediaries Document 2023-04-25 This is the original version (as it was originally enacted). (a) the client in the case of an engagement to which Chapter 10 of Part 2 of ITEPA 2003 applies is not a public authority within the meaning given by section 61L of ITEPA 2003 (as that section had effect before the amendments made by paragraph 10 of this Schedule), and (b) one or more qualifying chain payments are made in the tax year 2021-22 or a subsequent tax year (“the tax year concerned”) to the intermediary. (2) A chain payment made to the intermediary is a qualifying chain payment if it can reasonably be taken to be for services performed by the worker before 6 April 2021. (3) A chain payment made to the intermediary is also a qualifying chain payment if— (a) another chain payment (“the earlier payment”) was made before 6 April 2021 to a person other than the intermediary, (b) the earlier payment can reasonably be taken to be for the same services as the chain payment made to the intermediary, and (c) the person who made the earlier payment would, but for paragraph 25 of this Schedule, have been treated by section 61N(3) and (4) of ITEPA 2003 as making a deemed direct payment to the worker at the same time as they (4) Chapter 8 of Part 2 of ITEPA 2003 applies in relation to the engagement for the tax year concerned (in addition to Chapter 10 of Part 2 of ITEPA 2003), but as if— (a) the amendments made by Part 1 of this Schedule had not been made, and (b) the qualifying chain payments received by the intermediary in the tax year concerned are the only payments and benefits received by the intermediary in that year in respect of the engagement.
32 (1) This paragraph applies for the purposes of paragraphs 30 and 31 where a chain payment (“the actual payment”) is made that can reasonably be taken to be for services of the worker performed during a period that begins before and ends on or (2) The actual payment is to be treated as two separate chain payments— (a) one consisting of so much of the amount or value of the actual payment as can on a just and reasonable apportionment be taken to be for services performed before 6 April 2021, and (b) another consisting of so much of the amount or value of the actual payment as can on a just and reasonable apportionment be taken to be for services performed on or after 6 April 2021. 33 For the purposes of section 61N(5), (5A)(a) and (8)(za) of ITEPA 2003 it does not matter whether the status determination statement concerned is given before 6 April 2021 or on or after that date. 34 For the purposes of section 61T of ITEPA 2003— (a) it does not matter whether the representations to the client mentioned in subsection (1) of that section were made before 6 April 2021 or on or after (b) in a case where the representations were made before 6 April 2021 that section has effect as if the reference in subsection (3) to the date the client receives the representations were to 6 April 2021. SCHEDULE 2 – The loan consequential amendments Document 2023-04-25 This is the original version (as it was originally enacted). 1 Schedule 11 to F(No.2)A 2017 (employment income provided through third loans etc outstanding on 5 April 2019) is amended as follows. 2 In paragraph 1 (application of Part 7A of ITEPA 2003: relevant step) in sub- paragraph (2) for the words from “before” to the end substitute “before the end of 3 For the italic heading before paragraph 2 substitute “Meaning of “loan” and “quasi 4 In paragraph 2 (meaning of “loan”, “quasi-loan” and “approved repayment date”) 5 (1) Paragraph 4 (when an amount of a loan is certain repayments to be disregarded) is amended as follows. (2) In sub-paragraph (1)(b)(ii) for “the relevant date” substitute “5 April 2019”. (3) In sub-paragraph (2) for “the relevant date” substitute “5 April 2019”. 6 In paragraph 5 (meaning of “outstanding”: loans where A or B acquires a right to payment of the loan) in sub-paragraph (1)(b) for “6 April 1999” substitute “9 7 In paragraph 13 (meaning of “outstanding”: quasi-loans where A or B acquires a right to the payment or transfer of assets) in sub-paragraph (1)(b) for “6 April 1999” 8 Omit paragraph 19 (meaning of “approved fixed term loan”) and the italic heading 9 For the heading of Part 2 substitute “Accelerated payments”. 10 Omit paragraphs 20 to 22 and the italic headings before each of those paragraphs. 11 Omit the italic heading before paragraph 23. 12 (1) Paragraph 23 (accelerated payments) is amended as follows. (a) in paragraph (d) for “the relevant date” substitute “5 April 2019”, and (b) in paragraph (e) for “the relevant date” substitute “5 April 2019”. 13 (1) Paragraph 35A (when the duty to provide loan charge information arises) is amended

SCHEDULE 2 – The loan consequential amendments Document 2023-04-25 This is the original version (as it was originally enacted). (3) In sub-paragraph (4) in the words before paragraph (a) for “third” substitute (a) in the words before paragraph (a) for “fourth” substitute “third”, (b) in paragraph (a) for the words from the beginning to “conditions” substitute “neither the first nor the second condition”, and (i) for “and (2)(b)” substitute “and (2)”, and (ii) omit the words from “(and if paragraph” to “omitted)”. (5) In sub-paragraph (6) in the words before paragraph (a) for “fourth” substitute “third”. (6) In sub-paragraph (7) omit paragraph (b). 14 In paragraph 35B (duty of appropriate third party to provide information to A) in 15 (1) Paragraph 35D (meaning of “loan charge information”) is amended as follows. (a) in paragraph (e) omit “, or the loan mentioned in paragraph 35A(3)(a),”, (b) in paragraph (j) omit “, Q”, and (c) in paragraph (k) omit “, or in a case within paragraph 35A(3)(a),”. (3) In sub-paragraph (2) omit paragraph (a). 16 (1) Paragraph 36 (duty to provide loan charge information to B) is amended as follows. (2) In sub-paragraph (1)(b) for “6 April 1999” substitute “9 December 2010”. (3) In sub-paragraph (2) for the words from “the period” to the end substitute “15 April 17 Schedule 12 to F(No.2)A 2017 (trading income provided through third loans etc outstanding on 5 April 2019) is amended as follows. 18 For the italic heading before paragraph 2 substitute “Meaning of “loan” and “quasi 19 In paragraph 2 (meaning of “loan”, “quasi-loan” and “approved repayment date”) 20 Omit paragraphs 15 to 18 and the italic heading before each of those paragraphs. 21 (1) Paragraph 19 (accelerated application of paragraph 20) is amended as (a) in paragraph (e) for “the relevant date” substitute “5 April 2019”, and (b) in paragraph (f) for “the relevant date” substitute “5 April 2019”. 22 In paragraph 23 (meaning of “loan charge information”) in sub-paragraph (2) omit

SCHEDULE 2 – The loan consequential amendments Document 2023-04-25 This is the original version (as it was originally enacted). 23 ITEPA 2003 is amended as follows. 24 (1) Section 554A (application of Chapter 2 of Part 7A: the main case) is amended as (2) In subsection (2) after “paragraph 1” insert “or 1A”.
(3) For subsection (4) substitute— “(4) Chapter 2 does not apply by reason of— (a) a relevant step taken on or after A’s death if— (i) the relevant step is within section 554B, or (ii) the relevant step is within section 554C by virtue of subsection (1)(ab) of that section, (b) a relevant step within paragraph 1 of Schedule 11 to F(No.2)A 2017 which is treated as being taken on or after A’s death, or (c) a relevant step within paragraph 1A of Schedule 11 to F(No.2)A 2017 in a case where the initial step (within the meaning given by sub-paragraph (1)(a) of that paragraph) is treated as being taken on 25 In section 554Z (interpretation: general) in subsection (10)(d) after “paragraph 1” 26 Schedule 11 to F(No.2)A 2017 (employment income provided through third loans etc outstanding on 5 April 2019) is amended as follows. 27 In paragraph 2 (meaning of “loan”, “quasi-loan” and “approved repayment date”)— (a) in sub-paragraph (2), in the words before paragraph (a), for “paragraph 1” substitute “paragraphs 1 and 1A”, (b) in sub-paragraph (4) for “paragraph 1” substitute “paragraphs 1 and 1A”, (c) in sub-paragraph (5) for “paragraph 1” substitute “paragraphs 1 and 1A”. 28 In paragraph 3(1) (meaning of “outstanding”: loans) for “paragraph 1” substitute 29 In paragraph 4 (when an amount of a loan is certain repayments to be disregarded) in sub-paragraph (6) for “the relevant step treated as taken by paragraph 1” substitute “a relevant step treated as taken by paragraph 1 or 1A”. 30 In paragraph 5 (meaning of “outstanding”: loans where A or B acquires a right to payment of the loan) in sub-paragraph (2)(b) for “paragraph 1(4)” substitute 31 In paragraph 7 (meaning of “outstanding”: loans in currencies other than stirling) in sub-paragraph (3) after “relevant step” insert “within paragraph 1”. SCHEDULE 3 – Entrepreneurs’ relief Document 2023-04-25 This is the original version (as it was originally enacted). 32 In paragraph 10 (meaning of “outstanding”: loans made in a depreciating currency) in sub-paragraph (1)(b) after “relevant step” insert “within paragraph 1”. 33 In paragraph 11(1) (meaning of “outstanding”: quasi-loans) for “paragraph 1” substitute “paragraphs 1 and 1A”. 34 In paragraph 12 (certain payments or transfers to be disregarded for the purposes of paragraph 11) in sub-paragraph (5) for “the relevant step treated as taken by paragraph 1” substitute “a relevant step treated as taken by paragraph 1 or 1A”. 35 In paragraph 13 (meaning of “outstanding”: quasi-loans where A or B acquires a right to the payment or transfer of assets) in sub-paragraph (2)(b) for “paragraph 1(4)” substitute “paragraphs 1(4) and 1A(5)”. 36 In paragraph 15 (meaning of “outstanding”: quasi-loans in currencies other than sterling) in sub-paragraph (3) after “relevant step” insert “within paragraph 1”. 37 In paragraph 18 (meaning of “outstanding”: quasi-loans made in a depreciating currency) in sub-paragraph (1)(b) after “relevant step” insert “within paragraph 1”. “Exclusion for relevant step within paragraph 1A where initial step excluded 35ZA Chapter 2 of Part 7A of ITEPA 2003 does not apply by reason of a relevant step within paragraph 1A if that Chapter does not apply by reason of the initial step (within the meaning given by sub-paragraph (1) Social Security (Contributions) Regulations 2001 39 (1) The Social Security (Contributions) Regulations 2001 (S.I. 2001/1004) are amended (2) In regulation 22B (amounts to be treated as Part 7A of ITEPA 2003) in paragraph (3A)(a) after “paragraph 1” insert “or 1A”. (3) In regulation 22C (amounts to be treated as earnings paid to or for the benefit of the Schedule 11 to F(No.2)A 2017) in paragraph (1)— (a) after “paragraph 1” insert “or 1A”, and (b) after “paragraph 1(2)” insert “or 1A(3) or (4)”. 1 In section 169N of TCGA 1992 (entrepreneurs’ amount of relief)—

SCHEDULE 3 – Entrepreneurs’ relief Document 2023-04-25 This is the original version (as it was originally enacted). (a) in subsection (4), for “£10 million” substitute “£1 million”; (b) in subsection (4A), for “£10 million” substitute “£1 million”. 2 The amendments made by paragraph 1 have effect in relation to disposals made on unconditional contracts 3 (1) This paragraph applies where an asset is conveyed or transferred on or after 11 March 2020 under a contract made before that date that is not conditional. (2) Despite section 28(1) of TCGA 1992 (disposal under unconditional contract made at time of contract and not at time of later conveyance or transfer), the disposal is to be treated for the purposes of paragraph 2 as taking place at the time the asset is conveyed or transferred, and not at the time the contract is made, unless the condition in sub-paragraph (3) or (4) is met. (3) The condition in this sub-paragraph is that— (a) the parties to the contract are not connected persons, (b) no purpose of entering into the contract was obtaining an advantage by reason of the application of section 28(1) of TCGA 1992, and (c) the person making the conveyance or transfer makes a claim which includes a statement that the condition in paragraph (b) is met. (4) The condition in this sub-paragraph is that— (a) the parties to the contract are connected persons, (b) the contract was entered into wholly for commercial reasons, (c) no purpose of entering into the contract was obtaining an advantage by reason of the application of section 28(1) of TCGA 1992, and (d) the person making the conveyance or transfer makes a claim which includes a statement that the conditions in paragraphs (b) and (c) are met. (5) Section 169M(2) and (3) of TCGA 1992 apply to a claim under sub-paragraph (3) (c) or (4)(d) as if it were a claim under that section.
reorganisations of share capital 4 (1) This paragraph applies where— (a) on or after 6 April 2019 but before 11 March 2020, there is a reorganisation, (i) the company is the relevant individual’s personal company and is either a trading company or the holding company of a trading group, (ii) the relevant individual is an officer or employee of the company or (if the company is a member of a trading group) of one or more companies which are members of the trading group. (2) In sub-paragraph (1) “the relevant individual” means—

SCHEDULE 3 – Entrepreneurs’ relief Document 2023-04-25 This is the original version (as it was originally enacted). (a) where a claim under section 169M of TCGA 1992 is made jointly by the trustees of a settlement and a qualifying beneficiary, the qualifying (b) where a claim under that section is made by an individual, the individual. (3) Where an election in respect of the reorganisation is made under section 169Q of TCGA 1992 (reorganisations: disapplication of section 127) on or after 11 March 2020, the disposal of the original shares is to be treated for the purposes of paragraph 2 as taking place at the time of the election and not at the time of the (4) References in this paragraph to a reorganisation do not include an exchange of shares or securities which is treated as a reorganisation by virtue of section 135 or 136 of TCGA 1992 (but see paragraph 5). exchanges of securities etc 5 (1) This paragraph applies where— (a) on or after 6 April 2019 but before 11 March 2020, there is an exchange of shares or securities within section 135(1) of TCGA 1992, and (b) the condition in sub-paragraph (2) or (3) is met. (2) The condition in this sub-paragraph is that— (a) the persons who hold shares or securities in company B immediately after the exchange are substantially the same as those who held shares or securities in company A immediately before the exchange, or (b) the persons who have control of company B immediately after the exchange are substantially the same as those who had control of company A immediately before the exchange. (3) The condition in this sub-paragraph is that— (a) the relevant shareholders, taken together, hold a greater percentage of the ordinary share capital in company B immediately after the exchange than they held in company A immediately before the exchange, and (i) company B is the relevant individual’s personal company and is either a trading company or the holding company of a trading group, (ii) the relevant individual is an officer or employee of company B or (if company B is a member of a trading group) of one or more companies which are members of the trading group. “the relevant individual” means— (a) where a claim under section 169M of TCGA 1992 is made jointly by the trustees of a settlement and a qualifying beneficiary, the qualifying (b) where a claim under that section is made by an individual, the “the relevant shareholders” means the persons who— (a) immediately after the exchange, hold shares or securities in company

SCHEDULE 3 – Entrepreneurs’ relief Document 2023-04-25 This is the original version (as it was originally enacted). (b) immediately before the exchange, also held shares or securities in (5) For the purposes of sub-paragraph (2)(a), connected persons are to be treated as the (6) Where an election in respect of the exchange is made under section 169Q of TCGA 1992 (reorganisations: disapplication of section 127) on or after 11 March 2020, the disposal of the original shares is to be treated for the purposes of paragraph 2 as taking place at the time of the election and not at the time of the exchange. (7) Where, before the exchange, the Commissioners for Her Majesty’s Revenue and Customs have issued a notification in respect of it under section 138(1) of TCGA 1992 (advance clearance procedure)— (a) sections 127 to 131 of that Act apply with the necessary adaptations as if— (i) company A and company B were the same company, and (ii) the exchange were a reorganisation; (b) section 169Q of that Act applies as if the exchange were treated as a reorganisation by virtue of section 135 of that Act. 6 (1) Paragraphs 2 to 5 are to be construed as if they were contained in Chapter 3 of Part 5 of TCGA 1992, subject to sub-paragraph (2). “company A” and “company B” have the same meanings as in section 135 “original shares” has the meaning given by section 126 of TCGA 1992; “reorganisation” has the meaning given by that section; “trading company” and “trading group” have the meanings given by paragraph 1 of Schedule 7ZA to TCGA 1992. 7 (1) In section 169H(1) of TCGA 1992 (relief under Chapter 3 of Part 5: introduction), for “to be known as “entrepreneurs’ relief”” substitute “to be known as “business (2) In consequence of that amendment— (a) in the rest of TCGA 1992, for “entrepreneurs’ relief”, wherever occurring, substitute “business asset disposal relief”; (b) in section 169V of TCGA 1992 (operation of deferred entrepreneurs’ relief), for “ER purposes”, wherever occurring, substitute “relevant purposes”. (3) Nothing in this paragraph affects the operation of Chapter 3 of Part 5 of TCGA 1992. 8 This Part of this Schedule has effect for the tax year 2020-21 and subsequent tax

SCHEDULE 4 – Corporate capital losses Document 2023-04-25 This is the original version (as it was originally enacted). Restriction on deduction from chargeable main provisions 1 Part 7ZA of CTA 2010 (restrictions on obtaining certain deductions) is amended as “269ZBA Restriction on deductions from chargeable gains (1) This section has effect for determining the taxable total profits of a company (2) The sum of any deductions made by the company for the accounting period under section 2A(1)(b) of TCGA 1992 (allowable losses accruing in earlier accounting periods) may not exceed the relevant maximum. But this is subject to subsection (7).
(3) In this section the “relevant maximum” means the sum of— (a) 50% of the company’s relevant chargeable gains for the accounting (b) the amount of the company’s chargeable gains deductions allowance (4) Section 269ZF contains provision for determining a company’s relevant chargeable gains for an accounting period. (5) A company’s “chargeable gains deductions allowance” for an accounting (a) is so much of the company’s deductions allowance for the period as is specified in the company’s tax return as its chargeable gains deductions allowance for the period, and (b) accordingly, is nil if no amount of the company’s deductions allowance for the period is so specified. (6) An amount specified under subsection (5)(a) as a company’s chargeable gains deductions allowance for an accounting period may not exceed the (a) the amount of the company’s deductions allowance for the period, (b) the total of any amounts specified for the period under— (i) section 269ZB(7)(a) (trading profits deductions allowance), (ii) section 269ZC(5)(a) (non-trading income profits

SCHEDULE 4 – Corporate capital losses Document 2023-04-25 This is the original version (as it was originally enacted). (iii) in the case of an insurance company, section 269ZFC(5)(a) (BLAGAB deductions allowance). (7) Subsection (2) does not apply in relation to a company for an accounting period where, in determining the company’s qualifying chargeable gains for the period, the amount given by step 1 in section 269ZF(3) is not greater 3 (1) Section 269ZC (restriction on deductions from non-trading profits) is amended in accordance with this paragraph. (2) In subsection (2), for “the relevant maximum” substitute “the difference between— (b) the amount of any deductions made by the company for the accounting period under section 2A(1)(b) of TCGA 1992 (allowable losses accruing in (3) For subsection (3) substitute— “(3) In this section the “relevant maximum” means the sum of— (a) 50% of the company’s total relevant non-trading profits for the (b) the amount of the company’s total non-trading profits deductions allowance for the accounting period. (3A) A company’s “total non-trading profits deductions allowance” for the accounting period is the sum of— (a) the company’s non-trading income profits deductions allowance (b) the company’s chargeable gains deductions allowance (see (4) In subsection (4), for “relevant non-trading profits” substitute “total relevant non- (5) In subsection (5) for ““non-trading profits deductions allowance””, in both places it occurs, substitute ““non-trading income profits deductions allowance””. (a) in the words before paragraph (a), for ““non-trading profits deductions allowance”” substitute ““non-trading income profits deductions (b) for paragraph (b) substitute— “(b) the total of any amounts specified for the period under— (i) section 269ZB(7)(a) (trading profits deductions (ii) section 269ZBA (5)(a) (chargeable gains (iii) in the case of an insurance company, section 269ZFC(5)(a) (BLAGAB deductions (7) In subsection (8), for “relevant non-trading profits” substitute “qualifying non- trading income profits and qualifying chargeable gains”. SCHEDULE 4 – Corporate capital losses Document 2023-04-25 This is the original version (as it was originally enacted). 4 In section 269ZD (restriction on deductions from total profits), in subsection (2)(b), after sub-paragraph (i) (before the “and”) insert— “(ia) any deductions made by the company for the accounting period under section 2A(1)(b) of TCGA 1992 (allowable losses accruing in earlier accounting periods),”. 5 In section 269ZF (relevant profits), after subsection (2) insert— “(2A) A company’s “relevant chargeable gains” for an accounting period are— (a) the company’s qualifying chargeable gains for the accounting period (b) the company’s chargeable gains deductions allowance for the accounting period (see section 269ZBA(5)). But if the allowance mentioned in paragraph (b) exceeds the qualifying chargeable gains mentioned in paragraph (a), the company’s “relevant chargeable gains” for the accounting period are nil. (2B) A company’s “total relevant non-trading profits” for an accounting period (i) the company’s qualifying non-trading income profits for the (ii) the company’s qualifying chargeable gains for the period, (b) the company’s total non-trading profits deductions allowance for the period (see section 269ZC(3A)).” 6 In section 269ZF, in subsection (3), for steps 3 to 5 substitute— “Step 3 - trading profits, non-trading income profits and chargeable gains Divide the company’s total profits for the accounting period (as modified under (a) profits of a trade of the company (the company’s “trading profits”), (b) profits, other than chargeable gains, that are not profits of a trade of the company (the company’s “non-trading income profits”), and (c) chargeable gains included in the total profits (the company’s Step 4 - apportionment of the step 2 amount (1) Allocate the whole of the step 2 amount to one of, or between two or (a) the company’s trading profits, (b) the company’s non-trading income profits, and (c) the company’s chargeable gains. (2) Reduce, but not below nil, each of the company’s trading profits, non- trading income profits and chargeable gains by the amount (if any) allocated to it under paragraph (1). Step 5 - amount of qualifying trading profits, qualifying non-trading income profits and qualifying chargeable gains The amounts resulting from step 3, after any reduction under step 4, are— (a) in the case of the amount in step 3(a), the company’s qualifying trading

SCHEDULE 4 – Corporate capital losses Document 2023-04-25 This is the original version (as it was originally enacted). (b) in the case of the amount in step 3(b), the company’s qualifying nontrading income profits, and (c) in the case of the amount in step 3(c), the company’s qualifying 7 In section 269ZF(4) (calculation of modified total profits)— (a) omit “and” at the end of paragraph (f), and (b) after paragraph (g) insert “; and (h) make no deductions under section 2A(1)(b) of TCGA 1992 (allowable losses accruing in earlier accounting “269ZWA Increase of deductions allowance for insolvent companies (1) This section applies in relation to a company if— (a) the company has gone into insolvent liquidation (see subsection (4)), (b) a corresponding situation exists in relation to the company in a country or territory outside the United Kingdom.
(2) The company’s deductions allowance for a winding up accounting period (as determined in accordance with section 269ZR or 269ZW) is to be treated (for all purposes) as increased by— (a) the amount of chargeable gains accruing to the company in the accounting period after deducting any allowable losses accruing to (b) if lower, the amount of any allowable losses previously accruing to the company, so far as not previously deducted under section 2A(1) (3) In determining the amount of chargeable gains accruing to the company in a winding up accounting period for the purposes of subsection (2), ignore— (a) any chargeable gains (but not any allowable losses) accruing to the company on the disposal of an asset if— (i) section 171(1) of TCGA 1992 (transfers within a no gain no loss) applied in relation to the disposal by which the company acquired the asset (the “no gain/no loss disposal”), (ii) the asset was acquired by the company, by virtue of the no gain/no loss disposal, in a winding up accounting period, (iii) the company making the no gain/no loss disposal has not, at that time, gone into insolvent liquidation, and (b) any chargeable gains (but not any allowable losses) transferred to the company in accordance with an election made under section 171A of TCGA 1992 (election to reallocate gain or loss to another member (i) the election is made in a winding up accounting period, and

SCHEDULE 4 – Corporate capital losses Document 2023-04-25 This is the original version (as it was originally enacted). (ii) the company from which the chargeable gain is transferred has not, at the time the election is made, gone into insolvent (4) For the purposes of this section, a company has gone into insolvent (a) it has gone into liquidation, within the meaning of section 247(2) of the Insolvency Act 1986 or article 6(2) of the Insolvency (Northern Ireland) Order 1989 (SI 1989/2405 (NI 19), and (b) at the time it goes into liquidation, its assets are insufficient for the payment of its debts and other liabilities and the expenses of the (5) In this section a “winding up accounting period” means— (a) the accounting period of the company that begins when the winding up starts (within the meaning of section 12(7) of CTA 2009), and (b) each subsequent accounting period.” 9 In section 269ZZ (company tax return to specify amount of deductions allowance), in subsection (1), after paragraph (a) (but before the “and”) insert— “(aa) if section 269ZWA (increase of deductions allowance for insolvent companies) applies, what that amount would be without the increase provided for by subsection (2) of that section,”. Companies without a source of chargeable income 10 After section 269ZY of CTA 2010 insert— “269ZYA Deductions allowance for company without a source of chargeable (1) This section applies in relation to a company and a financial year (“the (a) the company has no source of chargeable income (see subsection (2)) throughout the relevant financial year, and (b) if the company is a member of a group (see section 269ZZB) at any time during the relevant financial year, each other company that is, at any time during the relevant financial year, a member of the group has no source of chargeable income throughout the relevant (2) For the purposes of this section and section 269ZYB, a company “has no source of chargeable income” if the company is either— (a) not within the charge to corporation tax, or (b) chargeable to corporation tax only because of a chargeable gain accruing to the company on the disposal of an asset. (3) A company may make a claim under this section in respect of an accounting (a) the accounting period falls wholly within the relevant financial year,

SCHEDULE 4 – Corporate capital losses Document 2023-04-25 This is the original version (as it was originally enacted). (b) the company is chargeable to corporation tax for the accounting period only because of a chargeable gain accruing to the company (4) If a claim is made by a company under this section in respect of an accounting period (a “claim AP”), the company’s deductions allowance for the claim (a) the available deductions allowance amount (see subsection (9)), (b) the total amount of allowable losses accruing to the company in any previous accounting period, so far as not previously deducted under section 2A(1)(a) or (b) of TCGA 1992, and (c) the chargeable gains accruing to the company in the claim AP. (5) A claim under this section in respect of an accounting period— (a) must be made within the period of two years after the end of the (b) may not be made before the end of the relevant financial year. (6) Sections 269ZR to 269ZY (deductions allowances) do not apply to a claim (7) Subsection (8) applies if— (a) there is at least one claim AP falling wholly within the relevant (b) there is at least one accounting period falling wholly within the relevant financial year in respect of which no claim is made under this section (an “alternative AP”). (8) The company’s deductions allowance for an alternative AP is the lower of— (a) the deductions allowance that would be available, ignoring the effect of this section (see sections 269ZR to 269ZY), and (b) the available deductions allowance amount (see subsection (9)). (9) For the purposes of this section, the “available deductions allowance (b) the total of the deductions allowance amounts (if any) already (ii) if the company is a member of a group at any time during the relevant financial year, each other company that is, at any time during the relevant financial year, a member of the in respect of each claim AP and alternative AP that falls wholly within the relevant financial year.
(10) In this section, references to the deductions allowance amounts claimed by a company in respect of an accounting period— (a) for a claim AP, are references to any deductions allowance claimed by the company under this section in respect of the period, and

SCHEDULE 4 – Corporate capital losses Document 2023-04-25 This is the original version (as it was originally enacted). (b) for an alternative AP, are references to any other amount specified in the company’s tax return as its chargeable gains deductions (11) For the purposes of subsection (9)(b), in the cases listed in the first column order in which deductions allowance amounts are to be treated as claimed in respect of the accounting periods— 1. There is a claim AP and another claim AP starting on the same day or a different The order in which the claims under this 2. There is an alternative AP (“AP1”) and another alternative AP (“AP2”) starting on 3. There is an alternative AP and another alternative AP starting on the same day. The order in which the tax returns for the alternative APs are delivered. 4. There is a claim AP and an alternative AP starting on the same day, an earlier day The claim AP before the alternative AP. 269ZYB Provisional application of section 269ZYA (1) This section applies in relation to a company and an accounting period if— (a) the conditions in section 269ZYA(3)(a) and (b) are met in relation (b) the company’s tax return for the accounting period is delivered before the end of the financial year in which the accounting period falls (“the relevant financial year”). (2) The company may make a declaration in the return for the accounting period (a) at all earlier times in the relevant financial year— (i) the company had no source of chargeable income (see (ii) if the company is a member of a group, each other member of the group had no source of chargeable income, and (b) the person intends to make a claim under section 269ZYA(3) in respect of the accounting period. (3) Until the declaration ceases to have effect, section 269ZYA has effect as if the company had made a claim under that section. (4) The declaration ceases to have effect if— (b) it is superseded by a claim made under section 269ZYA, or (c) the company or, if the company is a member of a group, another member of the group, acquires a source of chargeable income before the end of the relevant financial year. SCHEDULE 4 – Corporate capital losses Document 2023-04-25 This is the original version (as it was originally enacted). (5) So far as not previously ceasing to have effect under subsection (4), the declaration ceases to have effect two years after the end of the accounting period in respect of which it is made. (6) If the declaration ceases to have effect, all necessary adjustments must be made, by assessment, amendment of returns or otherwise. (7) Subsection (6) applies despite any limitation on the time within which assessments or amendments may be made.” Offshore collective investment vehicles 11 In section 269ZZB of CTA 2010 (meaning of “group”), at the end insert— “(9) For the purposes of the application of this Part in relation to a collective investment vehicle to which paragraph 4 of Schedule 5AAA to TCGA 1992 applies, the reference in paragraph 4(2) of that Schedule to “relevant purposes” is to be treated as including a reference to the purposes of this Insurance ring fence 12 (1) Section 210A of TCGA 1992 (insurance: ring-fencing of losses) is amended as (2) In subsection (2), after “to the company”, in the first place it occurs, insert “as permitted by subsection (2A)”. (3) After subsection (2) insert— “(2A) The following deductions may be made from the shareholders’ share of the BLAGAB chargeable gains accruing to the company in an accounting (a) any available non-BLAGAB allowable losses accruing to the company in the period may be deducted under section 2A(1)(a), and (b) after making any deductions within paragraph (a), any available non-BLAGAB allowable losses previously accruing to the company, which have not been allowed as a deduction from chargeable gains accruing in the period or in any previous accounting period, may (subject to section 269ZFC of CTA 2010) be deducted under section 2A(1)(b). (2B) But those deductions may not reduce the shareholders’ share of BLAGAB (2C) The amount of “available non-BLAGAB allowable losses” accruing to a company in an accounting period is the amount by which the non-BLAGAB allowable losses accruing to the company in the accounting period exceed the non-BLAGAB chargeable gains so accruing.” (a) omit “amount by which”, and (b) omit “exceeds the shareholders’ share of BLAGAB chargeable gains so

SCHEDULE 4 – Corporate capital losses Document 2023-04-25 This is the original version (as it was originally enacted). (5) In subsection (8), in the words before paragraph (a)— (a) for “If the” substitute “If there are”, and (b) omit “exceed the BLAGAB allowable losses so accruing”. (6) In subsection (8)(b), after “deduction” insert “, under step 2 of section 75(1) of FA (7) For subsection (9) substitute— “(9) If there are BLAGAB allowable losses accruing to the company in the subsequent accounting period, the amount arrived at under subsection (7) (a) is increased by the shareholders’ share of the amount of those allowable (a) in the definition of “BLAGAB allowable losses”, at the end insert “but excluding any allowable losses deducted under step 2 of section 75(1) of FA 2012 in determining the BLAGAB chargeable gains of the company for an (b) in the definition of “BLAGAB chargeable gains”, after “means chargeable gains” insert “(as adjusted for allowable losses in accordance with section 75 13 After section 269ZFB of CTA 2010 insert— “269ZFC Restriction on deductions of non-BLAGAB allowable losses from (1) This section has effect for determining the taxable total profits of an insurance company for an accounting period.
(2) The sum of any deductions of non-BLAGAB allowable losses from the shareholders’ share of BLAGAB chargeable gains made by an insurance company for an accounting period under section 2A(1)(b) of TCGA 1992, as permitted by section 210A(2A)(b) of that Act, may not exceed the relevant (3) In this section, the “relevant maximum” means the sum of— (a) 50% of the company’s relevant BLAGAB chargeable gains for the (b) the amount of the company’s BLAGAB deductions allowance for (4) A company’s “relevant BLAGAB chargeable gains” for an accounting (a) the shareholders’ share of the BLAGAB chargeable gains for the accounting period, after any reduction under section 210A (2A)(a) (b) the amount of the company’s BLAGAB deductions allowance for But if the allowance mentioned in paragraph (b) exceeds the shareholders’ share of the BLAGAB chargeable gains mentioned in paragraph (a), the

SCHEDULE 4 – Corporate capital losses Document 2023-04-25 This is the original version (as it was originally enacted). company’s “relevant BLAGAB chargeable gains” for the accounting period (5) A company’s “BLAGAB deductions allowance” for an accounting period— (a) is so much of the company’s deductions allowance for the period as is specified in the company’s tax return as its BLAGAB deductions (b) accordingly, is nil if no amount of the company’s deductions allowance for the period is so specified. (6) An amount specified under subsection (5)(a) as the company’s BLAGAB deductions allowance for an accounting period may not exceed the difference (a) the amount of the company’s deductions allowance for the period, (b) the total of any amounts specified for the period under section 269ZB(7)(a) (trading profits deductions allowance), section 269ZBA (5)(a) (chargeable gains deductions allowance) and section 269ZC(5)(a) (non-trading income profits deductions (7) In this section, “BLAGAB chargeable gains”, “insurance company” and “the shareholders’ share of BLAGAB chargeable gains” have the same meaning as in section 210A of TCGA 1992.” 14 (1) Part 7ZA of CTA 2010 is amended in accordance with this paragraph. (a) omit the “and” after sub-paragraph (ia) (inserted by paragraph 4 of this (b) after sub-paragraph (ii) insert “and (iia) any deductions of non-BLAGAB allowable losses from the shareholders’ share of BLAGAB chargeable gains made for the accounting period under section 2A(1)(b) of TCGA 1992, as permitted by section 210A(2A)(b) of that Act.” (3) In section 269ZFB(2), at the end of paragraph (b) insert “and provided that no deductions of non-BLAGAB allowable losses from the shareholders’ share of BLAGAB chargeable gains are to be made under section 2A(1)(b) of TCGA 1992, as permitted by section 210A(2A)(b) of that Act.” 15 In section 95 of FA 2012 (use of non-BLAGAB allowable losses to reduce I-E profit) for “in accordance with section 210A(2) of TCGA 1992” substitute “under section 2A(1) of TCGA 1992, as permitted by section 210A(2) and (2A) of that Act,”. 16 In section 197 of TCGA 1992 (disposals of interests in oil fields ring fence provisions), after subsection (4) insert— “(4A) A deduction in respect of an aggregate loss accruing in a chargeable period that is (in accordance with subsection (4)(b) and (c)) allowable as a deduction against an aggregate gain treated as accruing in a later period is to be ignored

SCHEDULE 4 – Corporate capital losses Document 2023-04-25 This is the original version (as it was originally enacted). for the purposes of section 269ZBA of CTA 2010 (corporate capital loss restriction on deductions from chargeable gains).” 17 In section 18 of TCGA 1992 (transactions between connected persons) at the end “(9) If deductible clogged losses have accrued to a company, the company may make a claim in respect of an accounting period for— (a) an amount of the deductible clogged losses to be treated, for the purposes of section 2A(1)(a), as allowable losses accruing in the (b) the same amount of allowable losses accruing to the company in the period to be treated, for the purposes of section 2A(1)(b), as allowable losses previously accruing to the company while it was within the charge to corporation tax. (10) The amount in respect of which the claim is made may not exceed the total amount of any allowable losses accruing to the company in the accounting period for which the claim is made. (11) In subsection (9), “deductible clogged losses” means losses which would, apart from Part 7ZA of CTA 2010, be deductible under subsection (3) from chargeable gains accruing to the company in an accounting period. (12) A claim under subsection (9) must be made by being included in the company’s tax return for the accounting period for which the claim is made.” 18 (1) Schedule 7A to TCGA 1992 (restriction on set-off of pre-entry losses) is amended in accordance with this paragraph. (2) In paragraph 6(1)(b), after “from that gain” insert “(subject to sub-paragraphs (1A) (3) In paragraph 6(1)(c), after “section 2A(1)” insert “(subject to sub-paragraphs (1A) (4) After sub-paragraph (1) insert— “(1A) Sub-paragraph (1B) applies, in respect of an accounting period, if the amount of chargeable gains accruing to the company in the period exceeds (a) the amount of pre-entry losses accruing to the company in the period that are deductible under sub-paragraph (1)(a), and (b) the amount of allowable losses, other than pre-entry losses, accruing to the company in the period. (1B) Where this sub-paragraph applies in respect of an accounting period— (a) the sum of any deductions under sub-paragraph (1)(b) may not

SCHEDULE 4 – Corporate capital losses Document 2023-04-25 This is the original version (as it was originally enacted).
(i) the amount of pre-entry losses that, on the assumption in sub-paragraph (1C), would be deductible under sub- (ii) the amount of allowable losses (other than pre-entry losses) that, on the assumption in sub-paragraph (1C), would be deductible under section 2A(1), and (b) for the purposes of sub-paragraph (1)(c), the deductions made under section 2A(1) may not exceed the difference between— (i) the total of the amounts mentioned in paragraph (a)(i) (ii) the amount of pre-entry losses deducted under sub- (1C) The assumption is that deductions under sub-paragraph (1)(b) are treated for the purposes of Part 7ZA of CTA 2010 (restrictions on obtaining certain deductions) as if they were made under section 2A(1)(b) of this 19 Part 12 of CTA 2010 (real estate investment trusts) is amended as follows. 20 In section 535B (use of pre-April 2019 residual business losses or deficits) at the “(4) In determining, for the purposes of subsection (2)(a), the amount of allowable losses accruing on disposals made before 6 April 2019 which would otherwise have been deducted from gains accruing to residual business of the company, section 269ZBA (restriction on deductions) is to 21 In section 550 (attribution of distributions) at the end insert— “(4) In determining the amount of relevant non-chargeable gains for the purposes of this section, section 269ZBA (restriction on deductions) is to be ignored.” 22 In section 556 (disposal of assets) in subsection (7), for “and 535A” substitute “, Counteraction of avoidance arrangements 23 (1) Section 19 of F(No.2)A 2017 (losses: counteraction of avoidance arrangements) is amended in accordance with this paragraph. (2) In subsection (8), before paragraph (a) insert— “(za) section 2A(1) of TCGA 1992 (allowable capital losses);”. “(13) In the case of a tax advantage as a result of a deduction (or increased deduction) under section 2A(1) of TCGA 1992, subsections (10) and (11) have effect as if the references to 1 April 2017 were to 1 April 2020.”

SCHEDULE 4 – Corporate capital losses Document 2023-04-25 This is the original version (as it was originally enacted). Minor and consequential amendments to Part 7ZA of CTA 2010 24 Part 7ZA of CTA 2010 is amended as follows. 25 (1) Section 269ZB (restriction on deductions from trading profits) is amended in accordance with this paragraph. (2) In subsection (8), for paragraph (b) substitute— (i) the amount of the company’s total non-trading profits deductions allowance for the period (see (ii) in the case of an insurance company, any amount specified for the period under section 269ZFC(5)(a) (BLAGAB (3) Omit subsection (9) (meaning of a company’s “deductions allowance”). 26 In section 269ZC (restriction on deductions from non-trading profits) omit subsection (7) (meaning of a company’s “deductions allowance”). 27 In section 269ZD (restriction on deductions from total profits) omit subsection (6) (meaning of a company’s “deductions allowance”). 28 After section 269ZD insert— “269ZDA References to a company’s “deductions allowance” (1) This section applies for the purposes of sections 269ZB to 269ZD and (2) A company’s “deductions allowance” for an accounting period is to be determined in accordance with section 269ZR where, at any time in that (a) the company is a member of a group (see section 269ZZB), and (b) one or more other companies within the charge to corporation tax (3) Otherwise, a company’s “deductions allowance” for an accounting period is to be determined in accordance with section 269ZW. (4) But subsections (2) and (3) are subject to section 269ZYA (deductions allowance for company without a source of chargeable income).” 29 (1) Section 269ZF (“relevant trading profits” and “relevant non-trading profits”) is amended in accordance with this paragraph. (a) for ““relevant non-trading profits””, in both places it occurs, substitute ““relevant non-trading income profits””, (b) in paragraph (a), for “qualifying non-trading profits” substitute “qualifying non-trading income profits”, and (c) in paragraph (b) for “non-trading profits deductions allowance” substitute “non-trading income profits deductions allowance”. (3) In subsection (3), in the words before step 1, for “and qualifying non-trading profits” substitute “, qualifying non-trading income profits and qualifying chargeable gains”. SCHEDULE 4 – Corporate capital losses Document 2023-04-25 This is the original version (as it was originally enacted). (4) In subsection (3), in paragraph (3) of step 1— (a) for “and relevant non-trading profits” substitute “, qualifying non-trading income profits and qualifying chargeable gains”, and (b) for “both” substitute “each”. (5) In subsection (3), in paragraph (3) of step 2— (a) for “and the qualifying non-trading profits” substitute “, qualifying non- trading income profits and qualifying chargeable gains”, and (b) for “both” substitute “each”. (6) In the heading, for “and “relevant non-trading profits”” substitute “, “total relevant 30 (1) Section 269ZFA (“relevant profits”) is amended as follows. (2) In subsection (1)(b), for “section 269ZD(6)” substitute “section 269ZDA”. (a) in paragraph (a), for “qualifying trading profits and qualifying non-trading profits” substitute “modified total profits”, and (b) in paragraph (b), for “in determining” substitute “which could be relieved 31 In section 269ZG (general insurance excluded accounting periods), in subsection (1), for “269ZE” substitute “269ZD”. 32 In section 269ZR (deductions allowance for company in a group), at the end insert— “(5) See section 269ZYA for further provision about the deductions allowance for a company without a source of chargeable income which is a member 33 In section 269ZW (deductions allowance for company not in a group), at the end “(4) See section 269ZYA for further provision about the deductions allowance for a company without a source of chargeable income.” 34 In section 269ZZ (company tax return to specify amount of deductions allowance), (a) after “section 269ZB(2),” insert “269ZBA(2),”, and (b) for “or 269ZD(2) or section 124D(1) of FA 2012” substitute “, 269ZD(2) 35 (1) Section 269ZZA(1) (excessive specification of deductions application of section) is amended in accordance with this paragraph. (2) After paragraph (b) insert— “(ba) the company’s chargeable gains deductions allowance for the (3) In paragraph (c) for “non-trading profits deductions allowance” substitute “non- trading income profits deductions allowance”.
(4) After paragraph (d) insert— “(da) the company’s BLAGAB deductions allowance for the period.”

SCHEDULE 4 – Corporate capital losses Document 2023-04-25 This is the original version (as it was originally enacted). Minor and consequential amendments to Part 7A of CTA 2010 36 Part 7A of CTA 2010 (banking restrictions on obtaining certain deductions) is amended as follows. 37 (1) Section 269CB (restriction on deductions for non-trading deficits from loan relationships) is amended as follows. (a) for “relevant non-trading profits”, in both places it occurs, substitute “total relevant non-trading profits”, and (b) for “subsection (2)” substitute “subsection (2B)”. (3) In subsection (3), for “relevant non-trading profits”, in both places it occurs, substitute “total relevant non-trading profits”. 38 In section 269CN (definitions)— (a) omit the definition of “relevant non-trading profits”, and ““total relevant non-trading profits”, in relation to a company, has the meaning given by section 269ZF(2B).” Companies without a source of chargeable carry back of losses 39 In section 2A of TCGA 1992 (company’s total profits to include chargeable gains), “(3) Subsection (4) applies if— (a) a company has two or more accounting periods that fall wholly within the same financial year, (b) the company is chargeable to corporation tax for each of those accounting periods only because of a chargeable gain accruing to the company on the disposal of asset, and (c) in the period (if any) between each of those accounting periods, the company is not within the charge to corporation tax. (4) For the purposes of determining the amount of chargeable gains to be included in the company’s total profits for each of the accounting periods by reference to which this subsection applies, subsection (1) has effect as if after paragraph (a) (before the “and”) there were inserted— “(aa) so far as not otherwise deducted under this section, any allowable losses accruing to the company in another accounting period that falls wholly within the same financial year as the period mentioned in paragraph (a),”.”

SCHEDULE 4 – Corporate capital losses Document 2023-04-25 This is the original version (as it was originally enacted). Insurance minor amendments to TCGA 1992 and FA 2012 40 In section 210A of TCGA 1992, in subsection (10C), for the words from “In determining” to “an accounting period” substitute “For the purposes of subsections 41 In section 93 of FA 2012 (minimum profits test), at the end insert— “(6) For the purposes of this section, assume that non-BLAGAB allowable losses cannot be deducted to any extent from BLAGAB chargeable gains (and, accordingly, assume that section 95 is not included in this Act).” 42 The amendments made by this Schedule have effect in relation to accounting periods beginning on or after 1 April 2020. 43 (1) Paragraph 44 applies where a company has an accounting period beginning before 1 April 2020 and ending on or after that date (the “straddling period”). (2) For the purposes of paragraph 44— (a) the “pre-commencement period” means the part of the straddling period falling before 1 April 2020, and (b) the “post-commencement period” means the part of the straddling period falling on or after that date. 44 (1) The amount of chargeable gains to be included in the company’s total profits for the straddling period is the total of— (a) the chargeable gains accruing to the company in the pre-commencement period, after making any deductions under section 2A(1) of TCGA 1992, and (b) the chargeable gains accruing to the company in the post-commencement period, after making any deductions under that section. (2) For the purposes of sub-paragraph (1)(a) and (b), section 2A of TCGA 1992 applies as if the pre-commencement period and the post-commencement period were separate accounting periods, subject to the modification in sub-paragraph (3). (3) For the purposes of determining the amount to be included in the company’s total profits in respect of chargeable gains for a period, the reference in section 2A(1)(a) of TCGA 1992 to any allowable losses accruing to the company in the period is to (a) for the purposes of the pre-commencement period, a reference to any allowable losses accruing to the company in the post-commencement period so far as they exceed the chargeable gains accruing to the company in the (b) for the purposes of the post-commencement period, a reference to any available allowable losses accruing to the company in the pre- commencement period so far as they exceed the chargeable gains accruing to the company in the pre-commencement period. SCHEDULE 4 – Corporate capital losses Document 2023-04-25 This is the original version (as it was originally enacted). (4) For the purposes of applying Part 7ZA of CTA 2010 in relation to the straddling (a) section 269ZBA of that Act applies in relation to the post-commencement period as if it were a separate accounting period, (b) the reference in section 269ZF(4)(h) to deductions under section 2A(1)(b) of TCGA 1992 is to be treated as if it were a reference only to deductions under that provision from the chargeable gains of the post-commencement (c) the reference in step 3(c) of section 269ZF to the chargeable gains included in the company’s total profits is to be treated as if it were a reference to the (i) the chargeable gains accruing to the company in the pre- commencement period, after making any deductions under section 2A(1)(a) or (b) of TCGA 1992, and (ii) the chargeable gains accruing to the company in the post- commencement period, after making any deductions under 45 (1) This paragraph applies in relation to a non-UK resident company which carries on a UK property business or has other UK property income— (a) if the conditions in sub-paragraph (2) are met, and (b) unless the company has elected that this paragraph is not to apply.
(2) The conditions are met if the company— (a) is within the charge to income tax for the tax year 2019-20, (b) is chargeable to corporation tax for an accounting period falling wholly within the period beginning with 1 April 2020 and ending with 5 April 2020 because of a chargeable gain accruing to the company on the disposal of an (c) is within the charge to corporation tax on income for an accounting period (3) For the purposes of determining the amount to be included in the company’s total profits in respect of chargeable gains for an accounting period mentioned in sub- paragraph (2)(b) or (2)(c), the reference in section 2A(1)(a) of TCGA 1992 to any allowable losses accruing to the company in the period is to be treated as including— (a) for the purposes of an accounting period mentioned in sub-paragraph (2) (b), a reference to any allowable losses accruing to the company in the accounting period mentioned in sub-paragraph (2)(c) (so far as those losses are not otherwise deducted under section 2A(1) of TCGA 1992), and (b) for the purposes of the accounting period mentioned in sub-paragraph (2)(c), a reference to any allowable losses accruing to the company in an accounting period mentioned in sub-paragraph (2)(b) (so far as those losses are not otherwise deducted under section 2A(1) of TCGA 1992). (4) For the purposes of the application of Part 7ZA of CTA 2010 in relation to the accounting periods mentioned in sub-paragraphs (2)(b) and (2)(c)— (a) section 269ZYA of CTA 2010 (deductions allowance for company without a source of chargeable income) applies as if the company had made a claim under that section in respect of each accounting period mentioned in sub-

SCHEDULE 5 – Structures and buildings allowances Document 2023-04-25 This is the original version (as it was originally enacted). (b) the company’s deductions allowance for the accounting period mentioned in sub-paragraph (2)(c) is treated as being reduced by the amount of the company’s deductions allowance for each accounting period mentioned in 46 (1) This sub-paragraph applies if— (a) a company has an accounting period ending before 1 April 2020, (b) the company would, apart from this paragraph, obtain a tax advantage as a result of a deduction, or an increased deduction, under section 2A(1)(b) of (c) the tax advantage arises as a result of arrangements entered into on or after (d) the main purpose, or one of the main purposes, of the arrangements is to secure a tax advantage as a result of the fact that section 269ZBA of CTA 2010, inserted by this Schedule, is not to have effect for the accounting period for which the deduction would be made. (2) If sub-paragraph (1) applies, the deductions made by the company for the accounting period under section 2A(1)(b) of TCGA 1992 may not exceed 50% of the company’s qualifying chargeable gains for the period. (3) So far as necessary for the purposes of this paragraph, Part 7ZA of CTA 2010 is treated as having come into force on the same day as this paragraph. (4) This paragraph is treated as having come into force on 29 October 2018. (5) Where a company has a straddling period, the pre-commencement period and the post-commencement period are treated for the purposes of this paragraph as separate (a) “arrangements” includes any agreement, understanding, scheme transaction or series of transactions (whether or not legally enforceable), (b) “straddling period”, “pre-commencement period” and “post-commencement period” have the same meaning as they have for the purposes of (c) “tax advantage” has the meaning given by section 1139 of CTA 2010. 1 CAA 2001 is amended as follows. Research and development allowances 2 In Part 2A (structures and buildings allowances), for section 270EC substitute—

SCHEDULE 5 – Structures and buildings allowances Document 2023-04-25 This is the original version (as it was originally enacted). “270EC Research and development (1) This section applies if, at any time, a person sells the relevant interest in a building or structure to another. (2) The total amount of the allowances under this Part by reference to the building or structure that is available to the person buying the relevant interest is reduced (but not below nil) by the amount of any Part 6 allowance to which the person is entitled by reference to the building or structure. (3) There is another restriction on the total amount of those allowances which (a) the sale in question, or a sale of the relevant interest at an earlier time, is by a person entitled to a Part 6 allowance by reference to the (b) the amount paid for the relevant interest on any of those sales is less than the ordinary Part 2A amount (see subsection (6)). (4) The other restriction is that the total amount of the allowances under this Part by reference to the building or structure that is available to the person buying the relevant interest may not exceed the permitted maximum. (5) For this purpose “the permitted maximum” is— (a) the lowest sum paid for the relevant interest on the sale in question or any earlier sale within subsection (3)(a), less (b) the total amount of the allowances under this Part arising by reference to the building or structure since the earliest sale identified for the purposes of paragraph (a) of this subsection. (6) In this section “the ordinary Part 2A amount” means— (a) the amount of the qualifying expenditure, by reference to which an allowance can be made under this Part, incurred in relation to the building or structure before the time of the sale in question, less (b) the total amount of the allowances under this Part arising before that time by reference to the building or structure.
(7) In this section any reference to allowances under this Part is to allowances to which an entitlement has arisen under this Part or would have arisen under this Part if the building or structure had been in continuous qualifying use since it was first brought into non-residential use. (8) In this section “Part 6 allowance”, in relation to a person and a building or structure, means an allowance under Part 6 in respect of expenditure incurred by the person on its construction or acquisition.” 3 (1) Section 538A (contributions: buildings and structures) is amended as follows. (2) For subsection (3)(b) substitute— “(b) the building or structure were brought into qualifying use, for the purposes of the allowance in relation to the contribution, on—

SCHEDULE 5 – Structures and buildings allowances Document 2023-04-25 This is the original version (as it was originally enacted). (i) the day on which R first brought the building or structure (ii) if R is a public body, the earlier of the day mentioned in sub-paragraph (i) and the day on which R first brought the building or structure into non-residential use.” (3) For subsection (4) substitute— “(4) If, at any time in the period beginning with the day on which C made the contribution and ending with the day on which R first brought the building or structure into non-residential use, C did not have a relevant interest in the (a) C is to be treated for the purposes of allowances under Part 2A as having had a relevant interest in the building or structure when that (b) C is not to be treated for those purposes as ceasing to have that interest on any subsequent sale of R’s relevant interest in the (4) After subsection (6) insert— “(7) In determining, for the purposes of this section, the day on which R first brings a building or structure into non-residential use, ignore any use of the building or structure which is insignificant.” 4 In section 270AA(2) (entitlement to structures and buildings allowances), at the beginning of paragraph (b)(i) insert “on or”. 5 In section 270BB (capital expenditure incurred on construction), in subsection (2) (a), for “qualifying use” substitute “non-residential use”. 6 In section 270BL (apportionment of sums partly referable to non-qualifying assets), for “qualifying expenditure” substitute “expenditure for which an allowance can be 7 In section 270IA (evidence of qualifying expenditure etc), in subsection (4)(a), omit 8 The amendment made by paragraph 2 has effect in the case of any sale within subsection (1) of the substituted section 270EC(1) of CAA 2001 that takes place on 9 The amendments made by paragraph 3 have effect in relation to contributions made 10 Part 2A of CAA 2001 has effect, and is to be deemed always to have had effect, with the amendments made by paragraphs 4 to 7. SCHEDULE 6 – Non-UK resident companies carrying on UK property businesses etc Document 2023-04-25 This is the original version (as it was originally enacted). Calculation of non-trading profits and deficits from loan relationships or derivative contracts 1 In section 301 of CTA 2009 (calculation of non-trading profits and deficits from loan relationships), for the subsection (1A) inserted into that section by paragraph 15(3) of Schedule 5 to FA 2019 substitute— “(1A) In the case of a non-UK resident company, subsections (4) to (7) need to be read with section 5(3), (3A)(b) and (3B)(b) (territorial scope of charge to 2 In section 574 of CTA 2009 (derivative non-trading credits and debits to be brought into account), for the subsection (2A) inserted into that section by paragraph 18 of Schedule 5 to FA 2019 substitute— “(2A) In the case of a non-UK resident company, subsection (2) needs to be read with section 5(3), (3A)(b) and (3B)(b) (territorial scope of charge to Debits referable to times before UK property business etc is carried on 3 After section 330 of CTA 2009 insert— “Pre-commencement debits of property businesses etc of non-UK resident companies 330ZA Debits referable to times before UK property business etc carried on (a) a non-UK resident company has debits in respect of a loan relationship to which it is a party for the purposes of its UK property (b) the debits are referable to times (“the pre-rental times”) before (but not more than 7 years before) the date on which it starts to carry on (c) the debits are not otherwise brought into account for tax purposes. (2) If, on the assumption that the company had been carrying on the business at the pre-rental times, the debits— (a) would have been recognised in determining its profit or loss for a period consisting of or including those times, and (b) would have been brought into account for the purposes of this Part, the debits are (so far as they exceed relevant credits) treated for the purposes of this Part as if they were debits for the accounting period in which it started (3) For this purpose “relevant credits” means credits of the company in respect of the loan relationship which, on the assumption that the company had been carrying on the business at the pre-rental times—

SCHEDULE 6 – Non-UK resident companies carrying on UK property businesses etc Document 2023-04-25 This is the original version (as it was originally enacted). (a) would have been recognised in determining its profit or loss for a period consisting of or including those times, (b) would have been brought into account for the purposes of this Part, (c) would not otherwise have been brought into account for tax (4) This section is subject to section 327 (disallowance of imported losses etc).
(5) This section also applies in relation to a non-UK resident company which is a party to a loan relationship for the purpose of enabling it to generate other UK property income (within the meaning given by section 5(6)).” 4 After section 607 of CTA 2009 insert— “607ZA Debits referable to times before UK property business etc carried on (a) a non-UK resident company has debits in respect of a derivative contract to which it is a party for the purposes of its UK property (b) the debits are referable to times (“the pre-rental times”) before (but not more than 7 years before) the date on which it starts to carry on (c) the debits are not otherwise brought into account for tax purposes. (2) If, on the assumption that the company had been carrying on the business at the pre-rental times, the debits— (a) would have been recognised in determining its profit or loss for a period consisting of or including those times, and (b) would have been brought into account for the purposes of this Part, the debits are (so far as they exceed relevant credits) treated for the purposes of this Part as if they were debits for the accounting period in which it started (3) For this purpose “relevant credits” means credits of the company in respect of the derivative contract which, on the assumption that the company had been carrying on the business at the pre-rental times— (a) would have been recognised in determining its profit or loss for a period consisting of or including those times, (b) would have been brought into account for the purposes of this Part, (c) would not otherwise have been brought into account for tax (4) This section also applies in relation to a non-UK resident company which is a party to a derivative contract for the purpose of enabling it to generate other UK property income (within the meaning given by section 5(6)).” 5 In paragraph 40 of Schedule 5 to FA 2019 (transitional imported losses in respect of derivative contracts), at the end insert— “(7) Section 607ZA of CTA 2009 (debits referable to times before UK property business carried on) has effect subject to this paragraph.”

SCHEDULE 6 – Non-UK resident companies carrying on UK property businesses etc Document 2023-04-25 This is the original version (as it was originally enacted). Duty to notify chargeability to corporation exceptions 6 In paragraph 2 of Schedule 18 to FA 1998 (duty of company to notify HMRC that it is chargeable for an accounting period if it has not received a notice requiring a company tax return), in sub-paragraph (1A) (which provides an exception to that duty), as inserted into that paragraph by paragraph 6(2) of Schedule 5 to FA 2019— (a) omit the “and” before paragraph (b), and (b) after that paragraph insert “, and (c) having deducted the income tax mentioned in paragraph (a) at the fourth step in paragraph 8 (calculation of tax payable), the amount of tax payable for the period 7 In section 55A(1) of FA 2004 (exception to duty of company to give notice of coming within the charge to corporation tax), as inserted by paragraph 7 of Schedule 5 to (a) omit the “and” before paragraph (b), and (b) after that paragraph insert “, and (c) in consequence of the deduction of the income tax mentioned in paragraph (a) at the fourth step in paragraph 8 of Schedule 18 to the Finance Act 1998 (calculation of tax payable), the amount of tax payable for the period will Period for making election under regulation 6A of the Disregard Regulations 8 In regulation 6A of the Loan Relationships and Derivative Contracts (Disregard and Bringing into Account of Profits and Losses) Regulations 2004— (a) in paragraph (5)(b), after “fair value” insert “(but see paragraph (6))”, and “(6) For the purposes of the definition of “the first relevant period” an accounting period of a company is to be ignored if— (a) the accounting period begins solely as a result of a disposal of an asset by the company, and (b) any gain accruing to the company on the disposal would be chargeable to corporation tax as a result of section 2B(4) of the Taxation of Chargeable Gains Act 1992.” 9 In paragraph 44 of Schedule 5 to FA 2019, at the end insert— “(4) In determining for the purposes of this paragraph whether, on the commencement date, a company comes within the charge to corporation tax by reason of this Schedule, no account is to be taken of any disposal made by the company before that date where any gain accruing to the company on the disposal would be chargeable to corporation tax as a result of section 2B(4) of TCGA 1992.” 10 Schedule 5 to FA 2019 has effect as if the amendments made by paragraphs 1 to 7 had at all times been incorporated into the provision made by that Schedule. SCHEDULE 7 – CT payment plans for tax on certain transactions with EEA residents Document 2023-04-25 This is the original version (as it was originally enacted). 11 The amendments made by paragraphs 8 and 9 have effect in relation to disposals made on or after 6 April 2019. 1 In TMA 1970, after section 59FA insert— “59FB CT payment plans for tax on certain transactions with EEA residents Schedule 3ZC makes provision enabling a company that is liable to pay corporation tax arising in connection with certain transactions to defer payment of the tax by entering into a CT payment plan.” 2 After Schedule 3ZB to TMA 1970 insert— 1 This Schedule makes provision enabling a company that is liable to pay qualifying corporation tax for an accounting period to defer payment of the tax by entering into a CT payment plan.
2 (1) For the purposes of this Schedule a company is liable to pay qualifying corporation tax for an accounting period if CT1 is greater than CT2 CT1 is the corporation tax which the company is liable to pay for the accounting period, and CT2 is the corporation tax which the company would be liable to pay for the accounting period if any gains, credits, losses or debits arising in respect of qualifying transactions of (CT2 will be zero if the company would not be liable to pay any corporation tax for the period). (2) The amount of qualifying corporation tax which the company is liable to pay is the difference between CT1 and CT2. 3 (1) For the purposes of this Schedule each of the following is a qualifying transaction of a company (“the company concerned”)—

SCHEDULE 7 – CT payment plans for tax on certain transactions with EEA residents Document 2023-04-25 This is the original version (as it was originally enacted). (a) a disposal within sub-paragraph (2), (b) a transaction within sub-paragraph (3), (c) a transaction within sub-paragraph (4), and (d) a transfer within sub-paragraph (5). (2) A disposal is within this sub-paragraph if— (a) it is a disposal by the company concerned of an asset, (b) it is a disposal to a company (“the transferee”) that at the time of the disposal is resident outside the United Kingdom in an EEA (c) it is a disposal to which section 139 or 171 of TCGA 1992 would apply were the transferee resident at the time of the disposal in (3) A transaction is within this sub-paragraph if— (a) it is a transaction, or the first in a series of transactions, as a result of which the company concerned is directly or indirectly replaced as a party to a loan relationship by another company (b) at the time of the transaction the transferee is resident outside the United Kingdom in an EEA state, and (c) it is a transaction to which section 340(3) of CTA 2009 would apply were the transferee resident at the time of the transaction in the United Kingdom instead. (4) A transaction is within this sub-paragraph if— (a) it is a transaction, or the first in a series of transactions, as a result of which the company concerned is directly or indirectly replaced as a party to a derivative contract by another company (b) at the time of the transaction the transferee is resident outside the United Kingdom in an EEA state, and (c) it is a transaction to which section 625(3) of CTA 2009 would apply were the transferee resident at the time of the transaction in the United Kingdom instead. (5) A transfer is within this sub-paragraph if— (a) it is a transfer from the company concerned of an intangible (b) it is a transfer to a company (“the transferee”) that immediately after the transfer is resident outside the United Kingdom in an (c) it is a transfer to which section 775(1) of CTA 2009 would apply were the transferee resident immediately after the transfer in the (6) In this Schedule “transferee”, in relation to a qualifying transaction of a company, means the transferee referred to in sub-paragraph (2), (3), (4)

SCHEDULE 7 – CT payment plans for tax on certain transactions with EEA residents Document 2023-04-25 This is the original version (as it was originally enacted). Eligibility to enter a CT payment plan 4 (1) A company that is liable to pay qualifying corporation tax for an accounting period may enter into a CT payment plan in respect of the tax in accordance with this Schedule. (2) The CT payment plan may relate to— (a) all of the qualifying corporation tax that the company is liable to pay for the accounting period, or (b) only part of the qualifying corporation tax that the company is liable to pay for the accounting period. (3) In this Schedule “deferred tax”, in relation to a CT payment plan, means the qualifying corporation tax to which the plan relates. Application to enter a CT payment plan 5 A company that is liable to pay qualifying corporation tax for an accounting period may enter into a CT payment plan in respect of the tax (a) an application to enter into the plan is made to HMRC before the end of the period of 9 months beginning immediately after (b) the application contains details of all the matters which are required by paragraph 7 to be specified in the plan. Entering into a CT payment plan 6 (1) A company enters into a CT payment plan if— (a) the company agrees to pay, and an officer of Revenue and Customs agrees to accept payment of, the deferred tax in accordance with paragraphs 9 to 12, (b) the company agrees to pay interest on the deferred tax in accordance with paragraph 8(3) and (5), and (c) the plan meets the requirements of paragraph 7 as to the matters (2) The CT payment plan may, in the circumstances mentioned in sub- paragraph (3), contain appropriate provision regarding security for HMRC in respect of the payment of the deferred tax. (3) Those circumstances are where an officer of Revenue and Customs considers that agreeing to accept payment of the deferred tax in accordance with paragraphs 9 to 12 would present a serious risk as to collection of the tax in the absence of provision regarding security in (4) A CT payment plan is void if any information furnished by the company in connection with the plan does not fully and accurately disclose all facts and considerations material to the decision of the officer of Revenue and Customs to accept payment of the deferred tax in accordance with paragraphs 9 to 12. SCHEDULE 7 – CT payment plans for tax on certain transactions with EEA residents Document 2023-04-25 This is the original version (as it was originally enacted).
7 (1) A CT payment plan entered into by a company must— (a) specify the accounting period to which the plan relates (“the accounting period concerned”), (b) specify the amount of qualifying corporation tax which, in the company’s opinion, is payable by it in respect of the accounting (c) specify the amount of the deferred tax, (d) identify each qualifying transaction of the company in respect of which gains or credits arose in the accounting period concerned, (e) specify in relation to each of those qualifying transactions— (i) the name of the transferee, (ii) the EEA state in which the transferee was resident at the (iii) the amount of the deferred tax that is attributable to the (2) The amount of the deferred tax that is attributable to a qualifying transaction of the company in respect of which a gain or credit arose in the accounting period concerned is— A is the gain or credit that arose in the accounting period concerned in respect of the qualifying transaction, B is the total gains or credits that arose in the accounting period concerned in respect of all qualifying transactions of the T is the amount of the deferred tax. 8 (1) This paragraph applies where a CT payment plan is entered into by a company in accordance with this Schedule. (2) As regards when the deferred tax is payable— (a) the CT payment plan does not prevent the deferred tax becoming due and payable under section 59D or 59E, but (b) the Commissioners for Her Majesty’s Revenue and Customs— (i) may not seek payment of the deferred tax otherwise than in accordance with paragraphs 9 to 12; (ii) may make repayments in respect of any amount of the deferred tax paid, or any amount paid on account of the deferred tax, before the CT payment plan is entered into. SCHEDULE 7 – CT payment plans for tax on certain transactions with EEA residents Document 2023-04-25 This is the original version (as it was originally enacted). (a) the deferred tax carries interest in accordance with Part 9 as if the CT payment plan had not been entered into, and (b) each time a payment is made in accordance with paragraphs 9 to 12, it is to be paid together with any interest payable on it. (4) As regards penalties, the company will be liable to penalties for late payment of the deferred tax only if it fails to make payments in end of paragraph 1 of Schedule 56 to the Finance Act 2009). (5) Any of the deferred tax which is for the time being unpaid may be paid at any time before it becomes payable under paragraphs 9 to 12 together with interest payable on it to the date of payment. The payment instalments 9 (1) Where a CT payment plan is entered into by a company, the deferred tax is due in 6 instalments of equal amounts as follows— (a) the first instalment is due on the first day after the period of 9 months beginning immediately after the end of the accounting period to which the plan relates, and (b) the other 5 instalments are due one on each of the first 5 (2) But see paragraphs 10 to 12 for circumstances in which all or part of the outstanding balance of the deferred tax becomes due otherwise than by The payment all of outstanding balance due 10 (1) Where at any time after a CT payment plan is entered into by a company an event mentioned in sub-paragraph (2) occurs the outstanding balance of the deferred tax is due on the date on which the next instalment of that tax would otherwise be due. (a) the company becoming insolvent or entering administration; (b) the appointment of a liquidator in respect of the company; (c) an event under the law of a country or territory outside the United Kingdom corresponding to an event in paragraph (a) or (d) the company failing to pay any amount of the deferred tax for a period of 12 months after the date on which the amount becomes (e) the company ceasing to be within the charge to corporation tax. All of outstanding balance attributable to particular qualifying transaction 11 (1) This paragraph applies where— (a) a CT payment plan is entered into by a company,

SCHEDULE 7 – CT payment plans for tax on certain transactions with EEA residents Document 2023-04-25 This is the original version (as it was originally enacted). (b) during the instalments period a trigger event occurs in relation to a qualifying transaction identified in the plan, and (c) a trigger event has not previously occurred in relation to that qualifying transaction during the instalments period. (2) A trigger event occurs in relation to a qualifying transaction if the transferee ceases to be resident in an EEA state and, on so ceasing, does not become resident another EEA state. (3) A trigger event occurs in relation to a qualifying transaction if the company and the transferee cease to be members of the same group as (4) A trigger event occurs in relation to a qualifying transaction within sub- paragraph (2) or (5) of paragraph 3 if the transferee disposes of the asset that is the subject of the transaction. (5) A trigger event occurs in relation to a qualifying transaction within sub- paragraph (3) or (4) of paragraph 3 if the transferee ceases to be a party to the loan relationship or derivative contract concerned.
(6) On the occurrence of the trigger event an amount of the deferred tax is “A” is the amount of the deferred tax that is attributable to the qualifying transaction (see paragraph 7(2)), “B” is the amount of the deferred tax that has previously become due under paragraph 12 by reason of a partial trigger event occurring in relation to the qualifying transaction, “O” is the amount of the deferred tax that is outstanding at the time of the trigger event, and “T” is the amount of the deferred tax. (8) In this paragraph “the instalments period” means the period— (a) beginning with the time the CT payment plan is entered into, and (b) ending with the day on which the final instalment of the deferred Part of outstanding balance attributable to particular qualifying transaction 12 (1) This paragraph applies where— (a) a CT payment plan is entered into by a company, (b) during the instalments period a partial trigger event occurs in relation to a qualifying transaction listed in the plan, and (c) a trigger event has not previously occurred in relation to that qualifying transaction during the instalments period. SCHEDULE 7 – CT payment plans for tax on certain transactions with EEA residents Document 2023-04-25 This is the original version (as it was originally enacted). (2) A partial trigger event occurs in relation to a qualifying transaction within sub-paragraph (2) of paragraph 3 if the transferee disposes of part (but not all) of the asset that is the subject of the transaction. Section 21(2)(b) of TCGA 1992 (meaning of part disposal of an asset) applies for the purposes of this sub-paragraph as it applies for the (3) A partial trigger event occurs in relation to a qualifying transaction within sub-paragraph (3) or (4) of paragraph 3 if there is a disposal by the transferee of a right or liability under the loan relationship or derivative contract concerned which amounts to a related transaction (as defined in section 304 or 596 of CTA 2009 as the case may be). (4) A partial trigger event occurs in relation to a qualifying transaction within sub-paragraph (5) of paragraph 3 if the transferee enters into a subsequent transaction which results in a reduction in the accounting value of the intangible fixed asset that is the subject of the qualifying transaction but does not result in the intangible fixed asset ceasing to be recognised in the transferee’s balance sheet. (5) In relation to an intangible fixed asset that has no balance sheet value (or no longer has a balance sheet value) sub-paragraph (4) applies as if, immediately before the subsequent transaction, it did have a balance (6) On the occurrence of the partial trigger event an amount of the deferred (7) The amount due is the amount that is just and reasonable having regard to the amount that would have been due had a trigger event occurred in relation to the qualifying transaction instead. (8) In this paragraph “the instalments period” and “trigger event” have the same meaning as in paragraph 11.” 3 (1) Schedule 56 to FA 2009 (penalty for failure to make payments on time) is amended “6ZAA Corporation tax Amount payable (a) the first day after the period

SCHEDULE 8 – Digital services returns, enquiries, assessments and appeals Document 2023-04-25 This is the original version (as it was originally enacted). (3) In paragraph 4 (amount of penalty in respect of certain late payments) in sub- paragraph (1) for “6ZA” substitute “6ZAA”. 4 (1) The amendments made by this Schedule— (a) have effect in relation to accounting periods ending on or after 10 October (b) are to be treated as having come into force on 11 July 2019. (2) The condition for entering into a CT payment plan that is specified in paragraph (a) of paragraph 5 of Schedule 3ZC to TMA 1970 is to be treated as met if an application to enter into the plan is made to HMRC on or before 30 June 2020. 5 (1) The Treasury may by regulations— (a) repeal section 59FB of TMA 1970, (b) repeal Schedule 3ZC to TMA 1970, and (c) amend Schedule 56 to FA 2009 in consequence of those repeals. (2) Regulations under this paragraph may contain savings and transitional provisions. (3) Regulations under this paragraph are to be made by statutory instrument. (4) A statutory instrument containing regulations under this paragraph is subject to annulment in pursuance of a resolution of the House of Commons. 1 (1) References in this Schedule— (a) to the delivery of a DST return are to the delivery of a return by the responsible member for an accounting period where the return complies with the requirements of paragraph 2(2); (b) to the filing date, in relation to a DST return, are to the last day of the period within which the return must be delivered. “relevant person” has the same meaning as in section 47; “tax” means digital services tax; “tribunal” means the First-tier Tribunal, or where determined by or under Tribunal Procedure Rules, the Upper Tribunal. SCHEDULE 8 – Digital services returns, enquiries, assessments and appeals Document 2023-04-25 This is the original version (as it was originally enacted). 2 (1) A DST return for an accounting period must be delivered before the end of one year from the end of the accounting period. (b) contain specified information, (c) contain an assessment (“a self-assessment”) of the amount of tax payable by the group for the accounting period (including a breakdown showing the amount of tax payable by each relevant person), and (d) contain a declaration by the person making the return that the return is, to the best of the person’s knowledge, correct and complete. (3) In this paragraph “specified” means specified in a notice published by HMRC. Amendment of return by responsible member 3 (1) This paragraph applies where a DST return has been delivered. (2) The responsible member may amend the DST return by notice to HMRC.
(a) be in the specified form, and (b) contain specified information. (4) In this paragraph “specified” means specified in a notice published by HMRC. (5) No amendment may be made under this paragraph more than 12 months after the Duty to keep and preserve records 4 (1) This paragraph applies in relation to a group for an accounting period if the responsible member is required by section 56 to deliver a DST return for that period. (2) The responsible member must— (a) keep such records as may be needed to enable it to deliver a correct and (b) preserve those records in accordance with this paragraph. (3) The records must be preserved until the end of the relevant day. (4) In this paragraph “the relevant day” means— (a) the sixth anniversary of the last day of the accounting period, or

SCHEDULE 8 – Digital services returns, enquiries, assessments and appeals Document 2023-04-25 This is the original version (as it was originally enacted). (b) such earlier day as may be specified (and different days may be specified (5) In this paragraph “specified” means specified in a notice published by HMRC. Preservation of information etc 5 The duty under paragraph 4 to preserve records may be satisfied— (a) by preserving them in any form and by any means, or (b) by preserving the information contained in them in any form and by any subject to any conditions or exceptions specified in a notice published by HMRC. 6 (1) An officer of Revenue and Customs may enquire into a DST return if, within the time allowed, the officer gives notice to the responsible member of the officer’s intention (a) if the return was delivered on or before the filing date, up to the end of the period of 12 months after the filing date; (b) if the return was delivered after the filing date, up to and including the quarter day next following the first anniversary of the day on which the return was (c) if the return is amended under paragraph 3, up to and including the quarter day next following the first anniversary of the day on which the return was The quarter days are 31 January, 30 April, 31 July and 31 October. (3) A return that has been the subject of one notice of enquiry may not be the subject of another, except one given in consequence of an amendment (or another amendment) of the return under paragraph 3. (4) A notice under this paragraph is referred to as a “notice of enquiry”. 7 (1) An enquiry extends to anything contained in the return, or required to be contained in the return, including anything that relates— (a) to the question of whether tax is chargeable in respect of the accounting (b) to the amount of tax so chargeable. This is subject to the following exception. (2) If the notice of enquiry is given as a result of an amendment of the return under

SCHEDULE 8 – Digital services returns, enquiries, assessments and appeals Document 2023-04-25 This is the original version (as it was originally enacted). (a) at a time when it is no longer possible to give notice of enquiry under (b) after an enquiry into a return has been completed, the enquiry into the return is limited to matters to which the amendment relates or that are affected by the amendment. Amendment of self-assessment during enquiry to prevent loss of tax 8 (1) If at a time when an enquiry is in progress into a DST return an officer of Revenue and Customs forms the opinion— (a) that the amount stated in the self-assessment contained in the return as the amount of tax payable is insufficient, and (b) that unless the assessment is immediately amended there is likely to be a loss the officer may by notice in writing to the responsible member amend the assessment (2) In the case of an enquiry that under paragraph 7(2) is limited to matters arising from an amendment of the return, sub-paragraph (1) applies only so far as the deficiency is attributable to the amendment. (3) For the purposes of this paragraph the period during which an enquiry is in progress (a) beginning with the day on which notice of enquiry is given, and (b) ending with the day on which the enquiry is completed. Amendment of return by responsible member during enquiry 9 (1) This paragraph applies if a DST return is amended under paragraph 3 at a time when an enquiry is in progress into the return. (2) The amendment does not restrict the scope of the enquiry but may be taken into account (together with any matters arising) in the enquiry. (3) While the enquiry is in progress, so far as the amendment affects the amount stated in the self-assessment as the amount of tax payable, the amendment does not take effect in relation to any matter to which it relates or which is affected by it. (4) An amendment whose effect is deferred under sub-paragraph (3) takes effect as (a) if the conclusions in a closure notice state either— (i) that the amendment was not taken into account in the enquiry, or (ii) that no amendment of the return is required arising from the enquiry, the amendment takes effect when the closure notice is issued (see (b) in any other case, the amendment takes effect as part of the amendments (5) For the purposes of this paragraph the period during which an enquiry is in progress (a) beginning with the day on which notice of enquiry is given, and (b) ending with the day on which the enquiry is completed. SCHEDULE 8 – Digital services returns, enquiries, assessments and appeals Document 2023-04-25 This is the original version (as it was originally enacted).
Referral of questions to the tribunal during enquiry 10 (1) At any time when an enquiry is in progress into a DST return any question arising in connection with the subject-matter of the enquiry may be referred to the tribunal (2) Notice of referral must be given to the tribunal, jointly by the responsible member and an officer of Revenue and Customs. (3) More than one notice of referral may be given under this paragraph in relation to (4) For the purposes of this paragraph the period during which an enquiry is in progress (a) beginning with the day on which notice of enquiry is given, and (b) ending with the day on which the enquiry is completed. Withdrawal of notice of referral 11 An officer of Revenue and Customs or the responsible member may withdraw a notice of referral under paragraph 10. 12 (1) While proceedings on a referral under paragraph 10 are in progress in relation to an (a) no closure notice may be given in relation to the enquiry (see paragraph 14), (b) no application may be made for a direction to give such a notice. (2) For the purposes of this paragraph proceedings on a referral are in progress where— (a) notice of referral has been given, (b) the notice has not been withdrawn, and (c) the questions referred have not been finally determined. (3) For the purposes of sub-paragraph (2)(c) a question referred is finally determined (a) it has been determined by the tribunal, and (b) there is no further possibility of the determination being varied or set aside (disregarding any power to grant permission to appeal out of time). 13 (1) The determination of a question referred to the tribunal under paragraph 10 is binding on the parties to the referral in the same way, and to the same extent, as a decision on a preliminary issue in an appeal. (2) The determination must be taken into account by an officer of Revenue and (a) in reaching the officer’s conclusions on the enquiry, and (b) in formulating any amendments of the return required to give effect to those

SCHEDULE 8 – Digital services returns, enquiries, assessments and appeals Document 2023-04-25 This is the original version (as it was originally enacted). (3) The question determined may not be reopened on an appeal, except to the extent that it could be reopened if it had been determined as a preliminary issue in that appeal. 14 (1) An enquiry is completed when an officer of Revenue and Customs by notice (a “closure notice”) informs the responsible member that the enquiry is complete and states the conclusions reached in the enquiry. (2) A closure notice must either— (a) state that in the opinion of an officer of Revenue and Customs no amendment (b) make the amendments of the return required to give effect to the conclusions (3) A closure notice takes effect when it is issued. 15 (1) The responsible member may apply to the tribunal for a direction that an officer of Revenue and Customs give a closure notice under paragraph 14 within a specified (2) The tribunal hearing the application must give a direction unless satisfied that HMRC have reasonable grounds for not giving an enquiry closure notice within a specified (3) Paragraphs 44 (settling of appeals by agreement) and 51 (tribunal determinations) apply to an application under sub-paragraph (1) as they apply to an appeal under paragraph 33, subject to any necessary modifications. Determination of tax chargeable if no return delivered 16 (1) An officer of Revenue and Customs may determine to the best of the officer’s information and belief the total amount of tax payable by relevant persons for an accounting period (“an HMRC determination”) if the conditions in sub-paragraph (2) (2) The conditions in this sub-paragraph are met if— (a) no DST return for the accounting period has been delivered by the end of (b) the officer has reasonable grounds for believing the responsible member is under a duty to deliver a DST return for the accounting period. (3) Notice of an HMRC determination— (a) must state the date on which it is issued, and (b) must be served on the responsible member. SCHEDULE 8 – Digital services returns, enquiries, assessments and appeals Document 2023-04-25 This is the original version (as it was originally enacted). (4) No HMRC determination may be made more than 3 years after the filing date. Determination to have effect as a self-assessment 17 (1) An HMRC determination has effect for enforcement purposes as if it were a self- assessment (within the meaning of paragraph 2(2)).
(2) In sub-paragraph (1) “for enforcement purposes” means for the purposes of (b) collection and recovery of tax, and (3) Nothing in this paragraph affects any liability to a penalty for failure to deliver a Determination superseded by actual self-assessment 18 (1) If, after an HMRC determination has been made, a DST return is delivered for the accounting period, the self-assessment included in the return supersedes the (2) Sub-paragraph (1) does not apply to a return delivered— (a) more than 3 years after the day on which the power to make the determination (b) more than 12 months after the date of the determination, (a) proceedings have been begun for the recovery of any tax charged by an (b) before the proceedings are concluded the determination is superseded by a the proceedings may be continued as if they were proceedings for the recovery of so much of the tax charged by the self-assessment as is due and payable and has not (a) action is being taken under Part 1 of Schedule 8 to F(No.2)A 2015 (enforcement of deduction from accounts) for the recovery of an amount (“the original amount”) of tax charged by an HMRC determination, and (b) before that action is concluded, the determination is superseded by a self- that action may be continued as if it were an action for the recovery of so much of the tax charged by the self-assessment as is due and payable, has not been paid and does not exceed the original amount. SCHEDULE 8 – Digital services returns, enquiries, assessments and appeals Document 2023-04-25 This is the original version (as it was originally enacted). Assessments where loss of tax discovered 19 (1) If, in respect of an accounting period of a group, an officer of Revenue and Customs (a) an amount of tax that ought to have been assessed has not been assessed, or (b) an assessment to tax is or has become insufficient, the officer may make an assessment (a “discovery assessment”) in the amount or further amount which ought in the officer’s opinion to be charged in order to make good to the Crown the loss of tax. (2) This is subject to the restrictions in paragraph 20. 20 (1) If a DST return has been delivered in respect of the accounting period, the power to (a) may only be made in the two cases specified in sub-paragraphs (2) and (3), (b) may not be made in the circumstances specified in sub-paragraph (5). (2) The first case is where the situation mentioned in paragraph 19(1) was brought about carelessly or deliberately on the part of— (b) a person acting on behalf of a relevant person. (3) The second case is where an officer of Revenue and Customs, at the time the officer— (a) ceased to be entitled to give a notice of enquiry into the return, or (b) completed an enquiry into the return, could not have been reasonably expected, on the basis of the information made available to the officer before that time, to be aware of the situation mentioned in (4) For this purpose information is regarded as made available to the officer of Revenue (a) it is contained in the DST return for the accounting period in question or either of the two immediately preceding accounting periods, (b) it is contained in any documents produced or information provided by the responsible member for the purposes of an enquiry into any such return, or (c) it is information the existence of which, and the relevance of which as regards the situation mentioned in paragraph 19(1)— (i) could reasonably be expected to be inferred by the officer of Revenue and Customs from information falling within paragraph (a) (ii) are notified in writing to an officer of Revenue and Customs by the responsible member or another person acting on the responsible (5) No discovery assessment may be made if—

SCHEDULE 8 – Digital services returns, enquiries, assessments and appeals Document 2023-04-25 This is the original version (as it was originally enacted). (a) the situation mentioned in paragraph 19(1) is attributable to a mistake in the return as to the basis on which the tax liability ought to have been calculated, (b) the return was in fact made on the basis or in accordance with the practice generally prevailing at the time it was made. Time limits for discovery assessments 21 (1) The general rule is that no discovery assessment may be made more than 4 years after the end of the accounting period to which it relates. (2) An assessment in a case involving a loss of tax brought about carelessly by a relevant person (or a person acting on their behalf) may be made at any time not more than 6 years after the end of the accounting period to which it relates. (3) An assessment in a case involving a loss of tax— (a) brought about deliberately by a relevant person (or a person acting on their (b) attributable to a failure by the responsible member to comply with an may be made at any time not more than 20 years after the end of the accounting 22 (1) Where notice of a discovery assessment is issued, the notice must be served on the (b) the date on which the notice is issued, and (c) the time within which any appeal against the assessment must be made. (3) After notice of the assessment has been served under this paragraph, the assessment may not be altered except as provided for by or under this Part of this Act.
(4) Where an officer of Revenue and Customs has— (a) decided to make an assessment to tax, and (b) taken all other decisions needed for arriving at the amount of the assessment, the officer may entrust to some other officer of Revenue and Customs the responsibility for completing the assessing procedure, whether by means involving the use of a computer or otherwise, including responsibility for serving notice of the Liability to amounts charged by way of discovery assessment 23 (1) This paragraph applies where— (a) notice of a discovery assessment has been issued under paragraph 22, and (b) no appeal has been brought against the assessment under paragraph 33(1)(c). (2) The responsible member is liable to the tax due, subject as follows. SCHEDULE 8 – Digital services returns, enquiries, assessments and appeals Document 2023-04-25 This is the original version (as it was originally enacted). (3) The responsible member may make a request to an officer of Revenue and Customs for one or more other relevant persons to be liable to the tax due (or any part of it). (4) The request must be made within 30 days of the date of issue of the notice of (5) Within 30 days of receiving the request, the officer must— (a) either agree to the request or refuse it, (b) notify the responsible member of the decision, and (c) if the officer agrees to the request, give effect to it by making all necessary (6) An officer may not agree to the request unless satisfied it is reasonable in all the (7) A request or notification under this paragraph must be in writing. Claim for relief for overpaid tax 24 (1) This paragraph applies where, in relation to a group, an amount has been paid by way of tax for an accounting period which was not tax due. (2) The responsible member may make a claim to the Commissioners for repayment of (3) The Commissioners must give effect to such a claim; but this is subject to— (a) paragraph 26 (cases where no liability to give effect to claim), and (b) paragraph 27 (power to enquire into claims). (4) Except as provided for by or under this Part of this Act, the Commissioners are not liable to repay any amount paid by way of tax by reason of the fact it was not tax due. (5) This paragraph is to be read with paragraph 25. 25 (1) A claim under paragraph 24 may not be made— (a) if the amount paid is excessive by reason of a mistake in a DST return or returns, more than 4 years after the end of the accounting period to which the return (or, if more than one, the first return) relates, and (b) otherwise, more than 4 years after the end of the accounting period in respect (a) be in the specified form, and (b) contain specified information. (3) A claim may not be made by being included in a DST return. SCHEDULE 8 – Digital services returns, enquiries, assessments and appeals Document 2023-04-25 This is the original version (as it was originally enacted). (4) In this paragraph “specified” means specified in a notice published by HMRC. Cases in which Commissioners not liable to give effect to claim 26 (1) If, or to the extent that, a claim under paragraph 24 falls within any of Cases A to D, the Commissioners are not liable to give effect to the claim. (2) Case A is where, in relation to the group, there is unpaid DST liability for the (3) Case B is where the responsible member is or will be able to seek relief by taking other steps under this Part of this Act. (4) Case C is where the responsible member— (a) could have sought relief by taking such steps within a period that has now (b) knew, or ought reasonably to have known, before the end of that period that (a) the amount paid is excessive by reason of a mistake in calculating the amount of tax payable by the group for the accounting period, and (b) the amount was calculated in accordance with the practice generally (6) In this paragraph “DST liability” has the same meaning as in section 66. 27 (1) An officer of Revenue and Customs may enquire into a claim under paragraph 24 if the officer gives notice to the responsible member of the officer’s intention to do (2) The time allowed is the period ending with the quarter day next following the first anniversary of the day on which the claim was made. The quarter days are 31 January, 30 April, 31 July and 31 October. (3) A claim enquired into under sub-paragraph (1) may not be the subject of a further notice under that sub-paragraph. Completion of enquiry into claim etc 28 (1) An enquiry under paragraph 27 is completed when the officer by notice (a “closure notice”) informs the responsible member that the enquiry is complete and states the conclusions reached in the enquiry. (2) A closure notice must either— (a) state that in the opinion of an officer of Revenue and Customs no amendment (b) make the amendments of the claim required to give effect to the conclusions (3) A closure notice takes effect when it is issued. SCHEDULE 8 – Digital services returns, enquiries, assessments and appeals Document 2023-04-25 This is the original version (as it was originally enacted). (4) The officer must give effect to any amendments made by the closure notice by making such adjustments as may be necessary whether— (b) by discharge or repayment of tax. (5) The adjustments must be made within 30 days of the date of issue of the closure (6) Paragraph 15 (direction to complete enquiry) applies in relation to an enquiry under paragraph 27 as it applies in relation to an enquiry under paragraph 6.
Assessment for excessive repayment etc 29 (1) This paragraph applies where— (a) an amount has been paid by way of a repayment of tax, and (b) the amount paid exceeded the amount which the Commissioners were liable (a) to the best of their judgment, assess the amount of the excess, and (b) notify the amount to the responsible member. 30 (1) This paragraph applies where— (a) an assessment has been notified under paragraph 29, and (b) it appears to the Commissioners that the amount which ought to have been assessed as due exceeds the amount that has already been assessed. (a) on or before the last day on which the assessment under paragraph 29 could have been made, make a supplementary assessment of the amount of tax (b) notify the amount to the responsible member. Further provision about assessments under paragraphs 29 and 30 31 (1) An amount assessed and notified under paragraph 29 or 30 counts as a liability to digital services tax for the purposes of this Part of this Act. (2) But sub-paragraph (1) does not have effect if, or to the extent that, the assessment has been withdrawn or reduced. 32 An assessment under paragraph 29 or 30 may not be made more than 4 years after the end of the accounting period in which evidence of facts sufficient in the opinion of the Commissioners to justify making the assessment comes to their knowledge. SCHEDULE 8 – Digital services returns, enquiries, assessments and appeals Document 2023-04-25 This is the original version (as it was originally enacted). 33 (1) An appeal may be brought against— (a) an amendment of a DST return under paragraph 8 (amendment during enquiry to prevent loss of tax); (b) an amendment made by a closure notice under paragraph 14; (c) a discovery assessment (under paragraph 19); (d) an amendment made by a closure notice under paragraph 28; (e) an assessment made under paragraph 29 or 30. (2) Any such appeal is to be brought by the responsible member (“the appellant”). (3) If an appeal under sub-paragraph (1)(a) against an amendment of a self-assessment is made while an enquiry into the return is in progress none of the steps mentioned in paragraph 36(2)(a) to (c) may be taken in relation to the appeal until the enquiry 34 (1) Notice of appeal under paragraph 33 must be given to HMRC— (b) within 30 days after the specified date. (2) In sub-paragraph (1) “specified date” means— (a) in relation to an appeal under paragraph 33(1)(a), the date on which the notice (b) in relation to an appeal under paragraph 33(1)(b) or (d), the date on which the closure notice was issued; (c) in relation to an appeal under paragraph 33(1)(c) or (e), the date on which the notice of assessment was issued. (3) The notice of appeal must specify the grounds of appeal. 35 (1) This paragraph applies in a case where— (a) notice of appeal may be given to HMRC under this Schedule, but (b) no notice is given before the relevant time limit. (2) Notice may be given after the relevant time limit if— (b) where HMRC do not agree, the tribunal gives permission. (3) HMRC must agree to notice being given after the relevant time limit if the appellant has requested in writing that HMRC do so and HMRC are satisfied— (a) that there was a reasonable excuse for not giving the notice before the (b) that the request has been made without unreasonable delay. SCHEDULE 8 – Digital services returns, enquiries, assessments and appeals Document 2023-04-25 This is the original version (as it was originally enacted). (4) If a request of the kind mentioned in sub-paragraph (3) is made, HMRC must notify the appellant whether or not HMRC agree to the request. (5) In this paragraph “relevant time limit”, in relation to notice of appeal, means the time before which the notice must be given (disregarding this paragraph). Steps that may be taken following notice of appeal 36 (1) This paragraph applies if notice of appeal has been given to HMRC. (a) the appellant may notify HMRC that the appellant requires HMRC to review the matter in question (see paragraph 37), (b) HMRC may notify the appellant of an offer to review the matter in question (c) the appellant may notify the appeal to the tribunal. (3) This paragraph does not prevent the matter in question from being dealt with in accordance with paragraph 44(1) and (2) (settling of appeals by agreement). Right of appellant to require review 37 (1) If the appellant notifies HMRC that it requires them to review the matter in question, (a) notify the appellant of HMRC’s view of the matter in question within the (b) review the matter in question in accordance with paragraph 39. (2) Sub-paragraph (1) does not apply if— (a) the appellant has already given a notification under this paragraph in relation (b) HMRC have given a notification under paragraph 40 in relation to the matter (c) the appellant has notified the appeal to the tribunal. (3) In this paragraph “the relevant period” means— (a) the period of 30 days beginning with the day on which HMRC receive the notification from the appellant, or (b) such longer period as is reasonable. 38 (1) Sub-paragraphs (2) to (5) apply if HMRC notify the appellant of an offer to review (2) The notification must include a statement of HMRC’s view of the matter in question. (3) If the appellant notifies HMRC within the acceptance period that it accepts the offer, HMRC must review the matter in question in accordance with paragraph 39. (4) If the appellant does not accept the offer in accordance with sub-paragraph (3)— (a) HMRC’s view of the matter in question is treated as if it were contained in a settlement agreement (see paragraph 44(1)), but

SCHEDULE 8 – Digital services returns, enquiries, assessments and appeals Document 2023-04-25 This is the original version (as it was originally enacted).
(b) paragraph 44(3) (right to withdraw from agreement) does not apply in relation to that notional agreement. (5) Sub-paragraph (4) does not apply to the matter in question if, or to the extent that, the appellant notifies the appeal to the tribunal under paragraph 42. (6) HMRC may not take the action mentioned in sub-paragraph (1) at any time if before (a) HMRC have given a notification under this paragraph in relation to the (b) the appellant has given a notification under paragraph 37 in relation to the (c) the appellant has notified the appeal to the tribunal. (7) In this paragraph “acceptance period” means the period of 30 days beginning with the date of the document by which HMRC notify the appellant of the offer to review 39 (1) This paragraph applies if HMRC are required by paragraph 37 or 38 to review the (2) The nature and extent of the review are to be such as appear appropriate to HMRC (3) For the purpose of sub-paragraph (2), HMRC must, in particular, have regard to steps taken before the beginning of the review— (a) by HMRC in deciding the matter in question, and (b) by any person in seeking to resolve disagreement about the matter in (4) The review must take account of any representations made by the appellant at a stage which gives HMRC a reasonable opportunity to consider them. (5) The review may conclude that HMRC’s view of the matter in question is to be— (6) HMRC must notify the appellant of the conclusions of the review and their reasoning (a) the period of 45 days beginning with the relevant day, or (b) such other period as may be agreed. (7) In sub-paragraph (6) “relevant day” means— (a) in a case where the appellant required the review, the day when HMRC notified the appellant of HMRC’s view of the matter in question; (b) in a case where HMRC offered the review, the day when HMRC received notification of the appellant’s acceptance of the offer. (8) If HMRC do not give notice of the conclusions of the review within the period specified in sub-paragraph (6), the review is treated as having concluded that HMRC’s view of the matter in question is upheld. SCHEDULE 8 – Digital services returns, enquiries, assessments and appeals Document 2023-04-25 This is the original version (as it was originally enacted). (9) If sub-paragraph (8) applies, HMRC must notify the appellant of the conclusions which the review is treated as having reached. Effect of conclusions of review 40 (1) If HMRC give notice of the conclusions of a review (see paragraph 39)— (a) the conclusions are to be treated as if they were contained in a settlement agreement (see paragraph 44(1)), but (b) paragraph 44(3) (withdrawal from agreement) does not apply in relation to (2) Sub-paragraph (1) does not apply to the matter in question if, or to the extent that, the appellant notifies the appeal to the tribunal (see paragraphs 41 and 42). Notifying appeal to tribunal after appellant has required review 41 (1) Where HMRC have notified an appellant under paragraph 37(1)(a) of their view of a matter to which an appeal under paragraph 33 relates, the appellant— (a) may not notify the appeal to the tribunal before the beginning of the post- (b) may notify the appeal to the tribunal after the end of that period only if the (2) Except where sub-paragraph (3) applies, the post-review period is the period of 30 days beginning with the date of the document in which HMRC give notice of the conclusions of the review in accordance with paragraph 39(6). (3) If the period specified in paragraph 39(6) ends without HMRC having given notice of the conclusions of the review, the post-review period is the period that— (a) begins with the day following the last day of the period specified in (b) ends 30 days after the date of the document in which HMRC give notice of the conclusions of the review in accordance with paragraph 39(9). Notifying appeal to tribunal after HMRC have offered review 42 (1) Where HMRC have offered to review the matter to which a notice of an appeal under paragraph 33 relates, the right of the appellant at any time to notify the appeal to the tribunal depends on whether or not the appellant has accepted the offer at that time. (2) If the appellant has accepted the offer, the appellant— (a) may not notify the appeal to the tribunal before the beginning of the post- (b) may notify the appeal to the tribunal after the end of that period only if the (3) If the appellant has not accepted the offer, the appellant— (a) may notify the appeal to the tribunal within the acceptance period; (b) may notify the appeal to the tribunal after the end of that period only if the

SCHEDULE 8 – Digital services returns, enquiries, assessments and appeals Document 2023-04-25 This is the original version (as it was originally enacted). (a) “acceptance period” has the same meaning as in paragraph 38; (b) “post-review period” has the same meaning as in paragraph 41. Interpretation of paragraphs 36 to 42 43 (1) In paragraphs 36 to 42— (a) “matter in question” means the matter to which an appeal relates; (b) a reference to a notification is to a notification in writing. (2) In paragraphs 36 to 42, a reference to the appellant includes a person acting on behalf of the appellant except in relation to— (a) notification of HMRC’s view under paragraph 37(1)(a); (b) notification by HMRC of an offer of review (and of their view of the matter) (c) notification of the conclusions of a review under paragraph 39(6) or (9). (3) But if a notification falling within any of paragraphs (a) to (c) of sub-paragraph (2) is given to the appellant, a copy of the notification may also be given to a person acting on behalf of the appellant.
Settling of appeals by agreement 44 (1) In relation to an appeal of which notice has been given under paragraph 34, “settlement agreement” means an agreement in writing between the appellant and an officer of Revenue and Customs that is— (a) entered into before the appeal is determined, and (b) to the effect that the decision appealed against should be upheld without variation, varied in a particular manner or discharged or cancelled. (2) Where a settlement agreement is entered into in relation to an appeal, the consequences are to be the same (for all purposes) as if, at the time the agreement was entered into, the tribunal had decided the appeal and had upheld the decision without variation, varied it in that manner or discharged or cancelled it, as the case may be. (3) Sub-paragraph (2) does not apply if, within 30 days beginning with the date on which the settlement agreement was entered into, the appellant gives notice in writing to HMRC that it wishes to withdraw from the agreement. (4) Sub-paragraph (5) applies where notice of an appeal has been given under (a) the appellant notifies HMRC, orally or in writing, that the appellant does not wish to proceed with the appeal, and (b) HMRC do not, within 30 days after that notification, give the appellant notice in writing indicating that they are unwilling that the appeal should be (5) Sub-paragraphs (1) to (3) have effect as if, at the date of the appellant’s notification, the appellant and an officer of Revenue and Customs had agreed that the decision under appeal should be upheld without variation. SCHEDULE 8 – Digital services returns, enquiries, assessments and appeals Document 2023-04-25 This is the original version (as it was originally enacted). Appeal does not postpone recovery of tax 45 (1) Where there is an appeal under paragraph 33, the tax in question remains due and payable as if there had been no appeal. (2) That is subject to paragraphs 46 and 47. Application for payment of tax to be postponed 46 (1) If the appellant has grounds for believing that the amendment or assessment overcharges a relevant person to tax, the appellant may— (a) first apply by notice in writing to HMRC within 30 days after the specified date for a determination by them of the amount of tax the payment of which should be postponed pending the determination of the appeal, and (b) if the appellant does not agree with a determination made by HMRC under paragraph (a), refer the application for postponement to the tribunal within 30 days from the date of the document notifying HMRC’s determination. An application under paragraph (a) must state the amount believed to be overcharged to tax and the grounds for that belief. (2) An application under sub-paragraph (1) may be made more than 30 days after the specified date if there is a change in the circumstances of the case as a result of which the appellant has grounds for believing that the relevant person is overcharged to tax by the decision appealed against. (3) If, after an application under sub-paragraph (1) has been determined, there is a change in the circumstances of the case as a result of which either party has grounds for believing that the amount determined has become either excessive or insufficient, that party may (if the parties cannot agree on a revised determination) apply to the tribunal for a revised determination of that amount. (4) An application under sub-paragraph (3) may be made at any time before the (5) Paragraphs 35 (late notice of appeal) and 44 (settling of appeals by agreement) apply to an application under this paragraph as they apply to an appeal under paragraph 33, subject to any necessary modifications. (6) The amount of tax of which payment is to be postponed pending the determination of the appeal is the amount (if any) by which it appears that there are reasonable grounds for believing that the relevant person is overcharged. (7) A decision of the tribunal under this paragraph is final and conclusive (despite the provisions of sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007). (8) In this paragraph “specified date” has the meaning given by paragraph 34. Agreement to postpone payment of tax 47 (1) If the appellant and HMRC agree that payment of an amount of tax should be postponed pending the determination of the appeal, the consequences are to be the same (for all purposes) as if the tribunal had, at the time when the agreement was entered into, made a direction to the same effect as the agreement. This is without prejudice to the making of a further agreement or further direction. SCHEDULE 8 – Digital services returns, enquiries, assessments and appeals Document 2023-04-25 This is the original version (as it was originally enacted). (2) Where the agreement is not in writing— (a) sub-paragraph (1) does not apply unless the fact that an agreement was entered into, and the terms agreed, are confirmed by notice in writing given by HMRC to the appellant or by the appellant to HMRC, and (b) the reference in sub-paragraph (1) to the time when the agreement was entered into is to be read as a reference to the time when notice of (3) References in this paragraph to an agreement being entered into with an appellant, and to the giving of notice to or by the appellant, include references to an agreement being entered into, or notice being given to or by, a person acting on behalf of the appellant in relation to the appeal. Assessments and self-assessments 48 (1) This paragraph applies where an appeal under paragraph 33 has been notified to the (2) If the tribunal decides that a relevant person is overcharged by a self-assessment or any other assessment, the assessment must be reduced accordingly.
(3) If the tribunal decides that a relevant person is undercharged to tax by a self- assessment or any other assessment, the assessment must be increased accordingly. (4) In a case where neither sub-paragraph (2) or (3) apply, the assessment is to stand Payment of tax where appeal has been determined 49 (1) This paragraph applies where an appeal under paragraph 33 has been notified to the (2) On the determination of the appeal, any tax overpaid must be repaid. (3) On the determination of the appeal, section 51 has effect in relation to any relevant (4) The reference to “relevant tax” is to any tax payable in accordance with the determination, so far as it is tax— (a) the payment of which had been postponed, or (b) which would not have been charged by the amendment or assessment if there Payment of tax where there is a further appeal 50 (1) Where a party to an appeal to the tribunal under paragraph 33 makes a further appeal, tax is to be payable or repayable in accordance with the determination of the tribunal or court (as the case may be), even though the further appeal is pending. (2) But if the amount charged by the assessment is altered by the order or judgment of the Upper Tribunal or court, then— (a) if too much tax has been paid, the amount overpaid must be refunded, with any interest allowed by the order or judgment, and

SCHEDULE 8 – Digital services returns, enquiries, assessments and appeals Document 2023-04-25 This is the original version (as it was originally enacted). (b) if too little tax has been charged, section 51 has effect in relation to the 51 The determination of the tribunal in relation to any proceedings under this Part of this Schedule is final and conclusive except as otherwise provided in sections 9 to 14 of the Tribunals, Courts and Enforcement Act 2007 (or in this Part of this Act). Failure to deliver flat-rate penalty 52 (1) A person who is required to file a DST return and fails to do so by the filing date is liable to a penalty under this paragraph. The person may also be liable to a penalty under paragraph 53 (tax-related penalties). (a) £100, if the return is delivered within 3 months after the filing date; (3) The amounts are increased to £500 and £1,000 (respectively) for a third successive (4) For this purpose, a “third successive failure” occurs where— (a) the duty under section 56 (duty to file returns) applies in relation to a group for 3 successive accounting periods, (b) a person was liable to a penalty under this paragraph in respect of each of the first 2 accounting periods, and (c) a person is liable to a penalty under this paragraph in respect of the third Failure to deliver tax-related penalty 53 (1) A person who is required to file a DST return for an accounting period and fails to do so within 18 months from the end of that period is liable to a penalty under this This is in addition to any penalty under paragraph 52 (flat-rate penalty). (a) 10% of the unpaid tax, if the return is filed within 2 years from the end of (b) 20% of the unpaid tax, in any other case. (3) The “unpaid tax” means the total amount of tax payable by members of the group for the accounting period which remains unpaid on the date when the liability to the penalty under this paragraph arises. SCHEDULE 8 – Digital services returns, enquiries, assessments and appeals Document 2023-04-25 This is the original version (as it was originally enacted). Failure to deliver a reasonable excuse 54 (1) Liability to a penalty under paragraph 52 or 53 in relation to a failure to make a return does not arise if the person (“P”) satisfies HMRC or (on appeal) the tribunal that there is a reasonable excuse for the failure. (a) an insufficiency of funds is not a reasonable excuse, (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. Failure to keep and preserve penalty 55 (1) A person who fails to comply with paragraph 4 in relation to an accounting period is liable to a penalty not exceeding £3,000, subject to the following exception. (2) No penalty is incurred if HMRC are satisfied that any facts which they reasonably require to be proved, and which would have been proved by the records, are proved by other documentary evidence provided to HMRC. 56 (1) If a person is liable to a penalty under this Part of this Schedule, HMRC must— (2) The assessment of a penalty— (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. (3) A supplementary assessment may be made in respect of a penalty if an earlier assessment is based on an amount of tax due and payable that is found by HMRC to be an underestimate or insufficient. (4) Sub-paragraph (5) 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. (5) HMRC may by notice amend the assessment so it is based on the correct amount.
(6) An amendment under sub-paragraph (5)— (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 sub-paragraph (7)). (7) An assessment of a penalty must be made before the end of the period of 12 months

SCHEDULE 8 – Digital services returns, enquiries, assessments and appeals Document 2023-04-25 This is the original version (as it was originally enacted). (a) the end of the appeal period for the assessment of the liability to tax which would have been shown in the return, 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. (8) In sub-paragraph (7) “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. (9) A penalty must be paid before the end of the period of 30 days beginning with the day on which notification of the penalty is issued. 57 (1) If HMRC think it right because of special circumstances, they may reduce a penalty under this Part of this Schedule. (2) In sub-paragraph (1) “special circumstances” does not include— (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— (b) agreeing a compromise in relation to proceedings in respect of a penalty. Right to appeal against penalty 58 A person may appeal against— (a) a decision of HMRC that a penalty under this Part of this Schedule is (b) a decision of HMRC as to the amount of any such penalty. Procedure on appeal against penalty 59 (1) Part 8 of this Schedule (apart from paragraphs 33, 45 to 47, and 49) applies in relation to an appeal under paragraph 58 as it applies in relation to an appeal under (2) On an appeal under paragraph 58, payment of the penalty is postponed pending (3) On an appeal under paragraph 58(a) that is notified to the tribunal, the tribunal may confirm or cancel the decision. (4) On an appeal under paragraph 58(b) that is notified to the tribunal, the tribunal may— (b) substitute for the decision another decision that HMRC had power to make. (5) If the tribunal substitutes its decision for HMRC’s, the tribunal may rely on (a) to the same extent as HMRC (which may mean applying the same percentage reduction as HMRC to a different starting point), or

SCHEDULE 9 – DST payment notices Document 2023-04-25 This is the original version (as it was originally enacted). (b) to a different extent, but only if the tribunal thinks that HMRC’s decision in respect of the application of that paragraph was flawed. (6) In sub-paragraph (5)(b) “flawed” means flawed when considered in the light of the principles applicable in proceedings for judicial review. (7) On determination of an appeal under paragraph 58, where a penalty is payable it is to be paid before the end of 30 days beginning with the day on which the determination Payments in respect of penalties 60 (1) This paragraph applies if— (a) a person liable to a penalty under this Part of this Schedule has an agreement in relation to the penalty with one or more companies within the charge to (b) as a result of the agreement, the person receives a payment or payments in respect of the penalty that do not, in total, exceed the amount of the penalty. (a) is not to be taken into account in calculating the profits for corporation tax purposes of either the person or the company making the payment, and (b) is not to be regarded as a distribution for corporation tax purposes. 1 (1) This Schedule applies where a payment notice has been given to a person (“the “DST liability”, “payment notice” and “relevant person” have the same “relevant liability” means any DST liability in relation to the group for 2 (1) For the purposes of the recovery from the recipient of any unpaid digital services tax, penalty or interest (including interest accruing after the date of the payment notice) the recipient is treated as if— (a) any relevant liability of a person other than the recipient were a liability of the recipient (“the deemed liability”), (b) the deemed liability became due and payable when the relevant liability (c) any payments made in respect of the relevant liability were made in respect

SCHEDULE 10 – Digital services minor and consequential amendments Document 2023-04-25 This is the original version (as it was originally enacted). (2) Nothing in this paragraph gives the recipient a right to appeal against any assessment, determination or other decision giving rise to a relevant liability (or against the 3 (1) The recipient may appeal against the notice, within the period of 30 days beginning with the date on which it is given, on the ground that the person is not a relevant (2) Where an appeal is made, anything required by the notice to be paid is due and payable as if there had been no appeal. Payment effect of making payment etc 4 (1) If the recipient pays any amount in pursuance of the notice the recipient may recover that amount from the person liable to pay it. (2) In calculating the recipient’s income, profits or losses for any tax purposes— (a) a payment in pursuance of the notice is not allowed as a deduction, and (b) the reimbursement of any such payment is not regarded as a receipt.
(3) Any amount paid by the recipient in pursuance of the notice is to be taken into account (b) the amount due by virtue of any other payment notice relating to the amount (4) Similarly, any payment by the person liable to pay it of any of the amount unpaid is to be taken into account in calculating the amount due by virtue of the payment notice (or by virtue of any other payment notice relating to the amount unpaid). Provisional Collection of Taxes Act 1968 1 In section 1(1) of the Provisional Collection of Taxes Act 1968 (temporary statutory effect of House of Commons resolutions affecting income tax etc) after “the apprenticeship levy,” insert “digital services tax,”. 2 (1) Section 178(2) of FA 1989 (setting of interest rates) is amended as follows. (2) Omit the “and” at the end of paragraph (u). (3) After paragraph (v) insert— “(w) sections 67 and 68 of the Finance Act 2020.”

SCHEDULE 11 – Private pleasure craft Document 2023-04-25 This is the original version (as it was originally enacted). 3 (1) Schedule 24 to FA 2007 (penalties for errors) is amended as follows. ascertaining liability to corporation tax insert— “Digital services tax DST return under paragraph 2 of Schedule 8 4 FA 2008 is amended as follows. 5 (1) Schedule 36 (information and inspection powers) is amended as follows. (2) In paragraph 63(1) after paragraph (cb) insert— 6 (1) Schedule 41 (penalties for failure to notify etc) is amended as follows. “Digital services tax Obligation under section 54 of FA 2020 (obligation to notify HMRC when threshold conditions for digital services tax are met).” (3) In paragraph 7 after sub-paragraph (4A) insert— “(4B) In the case of a relevant obligation relating to digital services tax and an accounting period, the potential lost revenue is so much of any digital services tax payable by members of the group for the accounting period as by reason of the failure is unpaid 12 months after the end of the accounting 1 HODA 1979 is amended as follows. 2 In section 6AB(4A) after “vehicles” insert “etc”. 3 (1) Section 12 is amended as follows. (2) In subsection (1) after “vehicle” insert “or as fuel for propelling a private pleasure (3) After subsection (2) insert— “(2A) For provision relating to private pleasure craft that corresponds to subsection (2), and for the meaning of “private pleasure craft”, see

SCHEDULE 11 – Private pleasure craft Document 2023-04-25 This is the original version (as it was originally enacted). (4) In the heading at the end insert “etc”. 4 In section 13ZB(5), in paragraph (b) of the definition of “prohibited use” after “vehicle” insert “or as fuel for a private pleasure craft”. 5 In section 14A for subsection (4) substitute— “(4) For the meaning of “private pleasure craft”, see section 14E.” 6 (1) Section 14B is amended as follows. (a) at the end of sub-paragraph (i) (but before the “or”) insert— “(ia) used as fuel for propelling a private pleasure craft,”; (b) in sub-paragraph (ii) for “so used” substitute “used as mentioned in sub- (3) In the heading at the end insert “etc”. 7 (1) Section 14C is amended as follows. (a) at the end of paragraph (b) insert “or”; (b) omit the “or” at the end of paragraph (c); “14E Restrictions on use of certain fuel for private pleasure craft (a) be used as fuel for propelling a private pleasure craft, (b) be used as an additive or extender in any substance so used, or (c) be taken into the fuel supply of an engine provided for propelling a vessel that is being used as a private pleasure craft. (b) marked oil that is not rebated fuel. (3) “Rebated fuel” means rebated heavy oil, rebated biodiesel or rebated (4) “Marked oil” means any hydrocarbon oil in which a marker is present which is for the time being designated by regulations made by the Commissioners under subsection (5) below, other than marked oil which is in the fuel supply of an engine provided for propelling a vessel having been taken in to that supply in accordance with the law of the place where it was taken in. (5) The Commissioners may for the purposes of this section designate any marker which appears to them to be used for the purposes of the law of any place (whether within or outside the United Kingdom) for identifying hydrocarbon oil that is not to be used as fuel for propelling private pleasure

SCHEDULE 11 – Private pleasure craft Document 2023-04-25 This is the original version (as it was originally enacted). (6) In this Act “private pleasure craft” has the same meaning as in Article 14(1) (c) of Council Directive 2003/96/EC (taxation of energy products etc). (7) The Treasury may by regulations provide for cases in which a vessel is treated as not being a private pleasure craft for the purposes of this Act (which may include cases in which the vessel is used in accordance with instructions given by an officer of HMRC for the purposes of removing restricted fuel from the vessel).” “14F Penalties for contravention of section 14E (1) Conduct within any of the following paragraphs attracts a penalty under section 9 of the Finance Act 1994 (civil penalties)— (a) using restricted fuel in contravention of section 14E(1); (b) becoming liable for restricted fuel being taken into the fuel supply (i) in contravention of section 14E(1), or (ii) having reason to believe that it will be put to a particular use (c) supplying restricted fuel, having reason to believe that it will be put to a particular use that is a prohibited use.
(2) An offence is committed if— (a) a person intentionally uses restricted fuel in contravention of (b) a person is liable for restricted fuel being taken into the fuel supply of an engine, and the restricted fuel was taken in with the intention by the person that restrictions imposed by section 14E(1) should be (c) a person supplies restricted fuel, intending that it will be put to a particular use that is a prohibited use. (3) A person guilty of an offence under this section is liable— (a) on summary conviction, to a fine not exceeding the maximum fine or imprisonment for a term not exceeding the maximum term (or (b) on conviction on indictment, to a fine or imprisonment for a term not exceeding 7 years (or both). (4) For the purposes of subsection (3)(a) the “maximum fine” is— (a) in England and Wales, £20,000 or (if greater) 3 times the value of the heavy oil, biodiesel or bioblend in question; (b) in Scotland or Northern Ireland, the statutory maximum or (if greater) 3 times the value of the heavy oil, biodiesel or bioblend in (5) For the purposes of subsection (3)(a) the “maximum term” is— (a) in England or Wales (subject to subsection (6)) or Scotland, 12 (b) in Northern Ireland, 6 months. SCHEDULE 11 – Private pleasure craft Document 2023-04-25 This is the original version (as it was originally enacted). (6) In relation to an offence committed before the commencement of section 282 of the Criminal Justice Act 2003 (increase in maximum term that may be imposed on summary conviction of offence triable either way), subsection (5)(a) has effect in England and Wales as if for “12 months” there (7) Restricted fuel is liable to forfeiture if it is— (a) taken into the fuel supply of an engine as mentioned in (b) supplied as mentioned in subsection (1)(c) or (2)(c) above, or (c) taken into the fuel supply of an engine provided for propelling a vessel at a time when it is not a private pleasure craft and remains in the vessel as part of that fuel supply at a later time when it becomes (8) If rebated fuel is used or taken into the fuel supply of an engine in contravention of section 14E(1), the Commissioners may— (a) assess an amount equal to the rebate on like fuel at the rate in force at the time of the contravention as being excise duty due from any (ii) was liable for it being taken into the fuel supply, and (b) notify the person or the person’s representative accordingly. “prohibited use” means a use that contravenes section 14E(1); “rebated fuel” has the meaning given by section 14E(3); “restricted fuel” has the meaning given by section 14E(2).” 10 In section 20AAA(4)(a) after “vehicle” insert “or as fuel for propelling a private 11 In section 24 (control of use of duty-free and rebated oil) after subsection (3) insert— “(3A) Subsection (3) does not apply to heavy oil, biodiesel or bioblend used for propelling a private pleasure craft if it is proved to the satisfaction of the Commissioners that the heavy oil, biodiesel or bioblend was taken into the vessel in accordance with the laws of the place where it was taken in.” 12 In section 27(1) at the appropriate place insert— ““private pleasure craft” has the meaning given by section 14E;”. 13 (1) Schedule 4 (regulations under section 24) is amended as follows. (2) In paragraph 19 after “vehicle” insert “or a vessel”. (3) In paragraph 20 after “vehicle” insert “or a vessel”. (a) the existing provision becomes sub-paragraph (1) of that paragraph; (i) after “vehicles” insert “or vessels”; (ii) after “vehicle” insert “or vessel”; (c) after that sub-paragraph insert—

SCHEDULE 11 – Private pleasure craft Document 2023-04-25 This is the original version (as it was originally enacted). “(2) In this paragraph “premises” includes any floating structure. (3) Nothing in sub-paragraph (1) enables regulations to be made authorising the examination of the interior of part of a vessel if that part is used as a dwelling.” 14 (1) Schedule 5 (sampling) is amended as follows. (i) for “motor vehicle” substitute “vehicle or a vessel”; (ii) after “the vehicle” insert “or the vessel”; (b) in sub-paragraph (b) for “motor vehicle” substitute “vehicle or a vessel”. (3) In paragraph 2(3) after “vehicle” insert “or the vessel”. (4) In paragraph 4 after sub-paragraph (6) insert— “(6A) In sub-paragraphs (5) and (6) “land” includes any floating structure.” (5) In paragraph 7 after “vehicle” insert “or a vessel”. 15 In Schedule 7A to VATA 1994, in Group 1, in Note 1(3) omit paragraph (b) (and the section 14F(2) of HODA 1979 substitute— “HODA 1979 section 14F(8) Rebated heavy oil, biodiesel or 17 In Schedule 9 to TCTA 2018, in paragraph 6 omit sub-paragraphs (3) and (4). 18 Paragraphs 1 to 17 of this Schedule come into force on such day or days as the Treasury may by regulations appoint. 19 Different days may be appointed for different purposes or different areas. 20 The Treasury may by regulations make such transitional, transitory or saving provision as they consider appropriate in connection with the coming into force of any of those paragraphs (including provision conferring functions on the Commissioners for Her Majesty’s Revenue and Customs). 21 The Treasury may by regulations make such amendments of any enactment as they consider appropriate in consequence of the coming into force of any of paragraphs 1 22 A statutory instrument containing regulations under paragraph 21 is subject to annulment in pursuance of a resolution of the House of Commons. 23 Any power to make regulations under this Schedule is exercisable by statutory

SCHEDULE 12 – Carbon emissions tax Document 2023-04-25 This is the original version (as it was originally enacted). 1 Part 3 of FA 2019 (carbon emissions tax) is amended in accordance with paragraphs 2 Power to set emissions allowance 2 (1) Section 73 (emissions allowance) is amended in accordance with this paragraph.
(2) The existing text becomes subsection (1). (3) After that subsection insert— “(2) Regulations under this section— (a) may have effect in relation to the reporting period during which they (b) may make provision by reference to data relating to times before Power to make further provision by regulations 3 In section 70 (charge to carbon emission tax), at the end insert— “(4) The Treasury may by regulations provide that carbon emissions tax is not charged in relation to regulated installations of a specified description.” 4 (1) Section 75 (power to make further provision about carbon emissions tax) is amended in accordance with this paragraph. (2) In subsection (1)(d) (enforcement) after “tax” insert “(including provision for the imposition of civil penalties for failure to comply with a requirement of regulations (3) In subsection (2)(d) (review and appeal), omit “of a regulator”. (4) In subsection (3) (regulations), for paragraph (b) substitute— (i) the Monitoring and Reporting Regulation; (ii) the Verification Regulation; (iii) subordinate legislation relating to the monitoring or 5 In section 76 (consequential provision), in subsection (5), for the words from “amend” to the end substitute “modify— (a) any enactment (whenever passed or made); (b) the Monitoring and Reporting Regulation; (c) the Verification Regulation.” 6 (1) Section 78 (regulations) is amended in accordance with this paragraph. SCHEDULE 12 – Carbon emissions tax Document 2023-04-25 This is the original version (as it was originally enacted). (a) in paragraph (a) (conferral of functions etc), after “discretions on” insert “HMRC, the Secretary of State,”; (b) in paragraph (b) (charges), after “regulations” insert “or in anticipation of the conferral of such a function”. (3) For subsection (3) (procedure) substitute— “(3) A statutory instrument containing regulations under section 76(4) that make provision amending or repealing any provision of an Act of Parliament must be laid before the House of Commons after being made and, unless approved by that House before the end of the period of 40 days beginning with the date on which the instrument is made, ceases to have effect at the end of (4) After subsection (5) insert— “(6) The fact that a statutory instrument ceases to have effect as a result of subsection (3) does not affect— (a) anything previously done under the instrument, or (b) the making of a new instrument. (7) In calculating the period of 40 days mentioned in subsection (3), no account (a) during which Parliament is dissolved or prorogued, or (b) during which the House of Commons is adjourned for more than 7 (1) Section 77 (interpretation) is amended in accordance with this paragraph. (a) after the definition of “installation” insert— ““modify” includes amend, repeal or revoke;”; (b) for the definition of “the Monitoring and Reporting Regulation” substitute— ““the Monitoring and Reporting Regulation” means Commission Implementing Regulation (EU) 2018/2066 of 19 December 2018 on the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC of the European Parliament and of the Council and amending Commission Regulation (EU) No 601/2012 (as amended (c) in the definition of “reporting period” omit “(subject to section 79(4))”; (d) for the definition of “the Verification Regulation” substitute— ““the Verification Regulation” means Commission Implementing Regulation (EU) No 2018/2067 of 19 December 2018 on the verification of data and on the accreditation of verifiers pursuant to Directive 2003/87/EC of the European Parliament and of the Council (as amended from time to time).” (3) For subsection (4) substitute— “(4) For the purposes of this Part, the Monitoring and Reporting Regulation is to be treated for the purposes of section 3 of the European Union (Withdrawal)

SCHEDULE 13 – Joint and several liability of company directors etc Document 2023-04-25 This is the original version (as it was originally enacted). Act 2018 as if it is fully in force immediately before IP completion day (even Commencement and transitional provision 8 (1) Section 79 (commencement and transitional provision) is amended in accordance (2) For subsection (1) substitute— “(1) This Part comes into force— (a) for the purposes of making regulations under section 70, 73, 75 or 76, on the day after the day on which paragraphs 1 to 8 of Schedule 12 to FA 2020 come into force, and (b) for all other purposes, on such day as the Commissioners may by (3) Omit subsections (3) to (5). Penalty for failure to make payments on time 9 In Schedule 56 to FA 2009 (penalty for failure to make payments on time), in the “10B Carbon emissions tax Amount payable under 10 Paragraph 9 comes into force on such day as the Treasury may by regulations made by statutory instrument appoint. 1 (1) This Schedule provides for an individual to be jointly and severally liable to the Commissioners for Her Majesty’s Revenue and Customs, in certain circumstances involving insolvency or potential insolvency, for amounts payable to the Commissioners by a company. (2) Such liability arises where the individual is given a notice under— (a) paragraph 2(1) (tax avoidance and tax evasion cases), (b) paragraph 3(1) (repeated insolvency and non-payment cases), or

SCHEDULE 13 – Joint and several liability of company directors etc Document 2023-04-25 This is the original version (as it was originally enacted). (c) paragraph 5(1) (cases involving penalty for facilitating avoidance or A notice under paragraph 2(1), 3(1) or 5(1) is referred to in this Schedule as a “joint (3) In this Schedule “company” has the same meaning as in the Corporation Tax Acts (see section 1121 of CTA 2010), except that it also includes a limited liability (4) Paragraph 18 makes provision about the application of this Schedule in relation to limited liability partnerships. Tax avoidance and tax evasion cases 2 (1) An authorised HMRC officer may give a notice under this sub-paragraph to an individual if it appears to the officer that conditions A to E are met. (2) Condition A is that a company has— (a) entered into tax-avoidance arrangements, or (b) engaged in tax-evasive conduct.
(a) the company is subject to an insolvency procedure, or (b) there is a serious possibility of the company becoming subject to an (i) was responsible (whether alone or with others) for the company entering into the tax-avoidance arrangements or engaging in the tax- (ii) received a benefit which, to the individual’s knowledge, arose (wholly or partly) from those arrangements or that conduct, at a time when the individual was a director or shadow director of the company or a participator in it, or (b) the individual took part in, assisted with or facilitated the tax-avoidance arrangements or the tax-evasive conduct at a time when the individual— (i) was a director or shadow director of the company, or (ii) was concerned, whether directly or indirectly, or was taking part, in the management of the company. (5) For the purposes of sub-paragraph (4)(a)(ii)— (a) an individual is treated as knowing anything that the individual could reasonably be expected to know; (b) an individual is treated as receiving anything that is received by a person with whom the individual is connected (within the meaning given by section 993 (6) Condition D is that there is, or is likely to be, a tax liability referable to the tax- avoidance arrangements or to the tax-evasive conduct (“the relevant tax liability”). SCHEDULE 13 – Joint and several liability of company directors etc Document 2023-04-25 This is the original version (as it was originally enacted). (7) Condition E is that there is a serious possibility that some or all of the relevant tax (8) A notice under sub-paragraph (1) must— (a) specify the company to which the notice relates; (b) set out the reasons for which it appears to the officer that conditions A to (c) state the effect of the notice; (d) offer the individual a review of the decision to give the notice, and explain the effect of paragraph 11 (right of review); (e) explain the effect of paragraph 13 (right of appeal). (a) specify the amount of the relevant tax liability, if the existence and amount of that liability have been established; (b) if not, indicate that the amount will be specified in a further notice. (10) Once the existence and amount of the relevant tax liability have been established in a case to which sub-paragraph (9)(b) applies, an authorised HMRC officer must give a further notice specifying that amount. (11) A notice under sub-paragraph (10) must— (a) be given to the individual to whom the notice under sub-paragraph (1) was (b) offer the individual a review of the decision to give the notice, and explain the effect of paragraph 11 (right of review); (c) explain the effect of paragraph 13 (right of appeal). (12) An individual who is given a notice under sub-paragraph (1) is jointly and severally liable with the company (and with any other individual who is given such a notice) for the relevant tax liability. This is subject to paragraph 9 (interaction with penalties). (13) The amount of the individual’s liability under sub-paragraph (12) is taken to be the amount specified under sub-paragraph (9)(a) or (10). For provision under which the amount so specified may be varied, see— (a) paragraph 10 (modification etc), (b) paragraphs 11 and 12 (review), and (c) paragraphs 13 and 14 (appeal). Repeated insolvency and non-payment cases 3 (1) An authorised HMRC officer may give a notice under this sub-paragraph to an individual if it appears to the officer that conditions A to D are met. (2) A notice under sub-paragraph (1) may not be issued after the end of the period of two years beginning with the day on which HMRC first became aware of facts sufficient for them reasonably to conclude that conditions A to D are met. (3) Condition A is that there are at least two companies (“the old companies”) in the

SCHEDULE 13 – Joint and several liability of company directors etc Document 2023-04-25 This is the original version (as it was originally enacted). (a) the individual had a relevant connection with the company at any time during the period of five years ending with the day on which the notice is given (b) the company became subject to an insolvency procedure during the five-year (c) at the time when the company became subject to that procedure— (i) the company had a tax liability, or (ii) the company had failed to submit a relevant return or other document, or to make a relevant declaration or application, that it was required to submit or make, or (iii) the company had submitted a relevant return or other document, or had made a relevant declaration or application, but an act or omission on the part of the company had prevented HMRC from In sub-paragraphs (ii) and (iii) “relevant” means relevant to the question whether the company had a tax liability or how much its tax liability was. (4) Condition B is that another company (“the new company”) is or has been carrying on a trade or activity that is the same as, or is similar to, a trade or activity previously (a) each of the old companies (if there are two of them), or (b) any two of the old companies (if there are more than two). (5) Condition C is that the individual has had a relevant connection with the new company at any time during the five-year period.
(6) Condition D is that at the time when the notice is given— (a) at least one of the old companies referred to in sub-paragraph (4)(a) or (b) (b) the total amount of the tax liabilities of those companies— (ii) is more than 50% of the total amount of those companies’ liabilities (7) An individual who is given a notice under sub-paragraph (1) is jointly and severally liable with the new company (and with any other individual who is given such a (a) for any tax liability that the new company has on the day on which the notice (b) for any tax liability of the new company that arises— (i) during the period of five years beginning with that day, and (ii) while the notice continues to have effect. (8) If an old company referred to in sub-paragraph (4)(a) or (b) has a tax liability on the day on which an individual is given a notice under sub-paragraph (1), the individual is also jointly and severally liable with that company (and with any other individual who is given such a notice) for that liability. (9) Sub-paragraphs (7) and (8) are subject to paragraph 9 (interaction with penalties). (10) For the purposes of this paragraph—

SCHEDULE 13 – Joint and several liability of company directors etc Document 2023-04-25 This is the original version (as it was originally enacted). (a) an individual has a “relevant connection” with one of the old companies if (i) is a director or shadow director of the company, or (ii) is a participator in the company; (b) an individual has a “relevant connection” with the new company if the (i) is a director or shadow director of the company, (ii) is a participator in the company, or (iii) is concerned, whether directly or indirectly, or takes part, in the (11) A notice under sub-paragraph (1) must— (a) set out the reasons for which it appears to the officer giving the notice that (b) state the effect of the notice; (c) specify any amounts for which the individual is liable under sub- (d) offer the individual a review of the decision to give the notice, and explain the effect of paragraph 11 (right of review); (e) explain the effect of paragraph 13 (right of appeal). (12) The amount of the individual’s liability under sub-paragraph (7)(a) or (8) is taken to be the amount specified under sub-paragraph (11)(c). For provision under which the amount so specified may be varied, see— (a) paragraph 10 (modification etc), (b) paragraphs 11 and 12 (review), and (c) paragraphs 13 and 14 (appeal). 4 (1) The Treasury may by regulations made by statutory instrument— (a) amend paragraph 3(6)(b)(i) by substituting a different amount for the one that is for the time being specified there; (b) amend paragraph 3(6)(b)(ii) by substituting a different percentage for the one that is for the time being specified there. (2) A statutory instrument containing regulations under this paragraph— (a) is subject to annulment in pursuance of a resolution of the House of Commons, if the regulations increase the specified amount by no more than is necessary to reflect changes in the value of money; (b) otherwise, may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons. Cases involving penalty for facilitating avoidance or evasion 5 (1) An authorised HMRC officer may give a notice under this sub-paragraph to an individual if it appears to the officer that conditions A to D are met. (a) a penalty under any of the specified provisions (see sub-paragraph (6)) has been imposed on a company by HMRC, or (b) proceedings have been commenced before the First-tier Tribunal for a penalty under any of those provisions to be imposed on a company. SCHEDULE 13 – Joint and several liability of company directors etc Document 2023-04-25 This is the original version (as it was originally enacted). (a) the company is subject to an insolvency procedure, or (b) there is a serious possibility of the company becoming subject to an (4) Condition C is that the individual was a director or shadow director of the company, or a participator in it, at the time of any act or omission in respect of which— (a) the penalty was imposed, or (b) the proceedings for the penalty were commenced. (5) Condition D is that there is a serious possibility that some or all of the penalty will (6) The specified provisions are— (a) section 98C(1) of the TMA 1970 (penalties for breach of certain obligations relating to disclosure of tax avoidance schemes by promoters etc of (b) paragraphs 2 and 3 of Schedule 35 to FA 2014 (promoters of tax avoidance (c) paragraph 1 of Schedule 20 to FA 2016 (penalties for enablers of offshore tax evasion or non-compliance); (d) Part 1 of Schedule 16 to F(No.2)A 2017 (penalties for enablers of defeated (e) Part 2 of Schedule 17 to that Act (penalties for breach of certain obligations relating to disclosure of tax avoidance schemes by promoters etc of (7) A notice under sub-paragraph (1) must— (a) specify the company to which the notice relates; (b) set out the reasons for which it appears to the officer that conditions A to (c) state the effect of the notice; (d) offer the individual a review of the decision to give the notice, and explain the effect of paragraph 11 (right of review); (e) explain the effect of paragraph 13 (right of appeal).
(a) specify the amount of the penalty, if sub-paragraph (2)(a) applies; (b) if sub-paragraph (2)(b) applies, indicate that the amount will be specified in (9) Once the existence and amount of the penalty have been established in a case where sub-paragraph (2)(b) applies, an authorised HMRC officer must give a further notice (10) A notice under sub-paragraph (9) must— (a) be given to the individual to whom the notice under sub-paragraph (1) was (b) offer the individual a review of the decision to give the notice, and explain the effect of paragraph 11 (right of review); (c) explain the effect of paragraph 13 (right of appeal). SCHEDULE 13 – Joint and several liability of company directors etc Document 2023-04-25 This is the original version (as it was originally enacted). (11) An individual who is given a notice under sub-paragraph (1) is jointly and severally liable with the company (and with any other individual who is given such a notice) for the amount of the penalty. (12) The amount of the individual’s liability under sub-paragraph (11) is taken to be the amount specified under sub-paragraph (8)(a) or (9). For provision under which the amount so specified may be varied, see— (a) paragraph 10 (modification etc), (b) paragraphs 11 and 12 (review), and (c) paragraphs 13 and 14 (appeal). 6 (1) In this Schedule “tax-avoidance arrangements” means— (a) arrangements in respect of which a notice has been given under paragraph 12 of Schedule 43 to FA 2013, paragraph 8 or 9 of Schedule 43A to that Act or paragraph 8 of Schedule 43B to that Act (notice of final decision after considering opinion of GAAR Advisory Panel) stating that a tax advantage is to be counteracted under the general anti-abuse rule; (b) arrangements in respect of which a notice has been given under section 204 of FA 2014 (follower notice) and not withdrawn; (c) DOTAS arrangements within the meaning given by subsection (5) of section 219 of that Act (circumstances in which an accelerated payment (d) arrangements to which HMRC have allocated a reference number under paragraph 22 of Schedule 17 to F(No.2)A 2017 (disclosure of tax avoidance VAT and other indirect taxes) or in respect of which the promoter must provide prescribed information under paragraph 23 of that Schedule; (e) arrangements in relation to which a relevant tribunal order has been made; (i) are substantially the same as arrangements in relation to which a relevant tribunal order has been made (whether involving the same (ii) have as their promoter the person specified as the promoter in the (2) For the purposes of sub-paragraph (1)(e) and (f) a relevant tribunal order is made in relation to arrangements if the tribunal— (i) subsection (1)(a) of section 314A of FA 2004 (order to disclose), or (ii) paragraph 4(1)(a) of Schedule 17 to F(No.2)A 2017 (corresponding provision for indirect taxes), that a proposal for the arrangements is notifiable; (i) subsection (1)(b) of that section, or (ii) paragraph 4(1)(b) of that Schedule, that the arrangements are notifiable;

SCHEDULE 13 – Joint and several liability of company directors etc Document 2023-04-25 This is the original version (as it was originally enacted). (i) subsection (1)(a) of section 306A of FA 2004 (doubt as to (ii) paragraph 5(1)(a) of Schedule 17 to F(No.2)A 2017, that a proposal for the arrangements is to be treated as notifiable; (i) subsection (1)(b) of that section, or (ii) paragraph 5(1)(b) of that Schedule, that the arrangements are to be treated as notifiable. (3) Section 307 of FA 2004 (meaning of “promoter”) applies for the purposes of sub- In that section as it so applies— (a) references to a notifiable proposal are to be read as references to the proposal mentioned in sub-paragraph (2)(a) or (c); (b) references to notifiable arrangements are to be read as references to the arrangements mentioned in sub-paragraph (2)(b) or (d). 7 In this Schedule “tax-evasive conduct” means— (a) giving to HMRC any deliberately inaccurate return, claim, document or paragraph 1 of Schedule 41 to FA 2008 (obligations to notify liability to 8 (1) For the purposes of this Schedule a company is “subject to an insolvency procedure” (a) it is undergoing, or has undergone, a relevant winding up (see sub- (b) it is in administration (see sub-paragraph (4)) or is a company to which sub- (c) it is in receivership (see sub-paragraph (6)), (d) a relevant scheme (see sub-paragraph (7)) has effect in relation to it, or (e) its name has been struck off the register under section 1000 or 1003 of the (2) A company is “undergoing a relevant winding up” for the purposes of this paragraph (a) it is being wound up under— (i) the Insolvency Act 1986 (“the 1986 Act”), or (ii) the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. otherwise than by way of a members’ voluntary winding up, (b) it is being wound up by way of a members’ voluntary winding up under the 1986 Act, or the 1989 Order, and the period of 12 months beginning with the

SCHEDULE 13 – Joint and several liability of company directors etc Document 2023-04-25 This is the original version (as it was originally enacted).