day on which that winding up commenced has expired without the company having paid its debts in full together with interest at the official rate, or (c) a corresponding situation to a winding up under the 1986 Act or the 1989 Order exists in relation to the company under the law of a country or territory (3) A company has “undergone a relevant winding up” for the purposes of this paragraph (a) it has been wound up under the 1986 Act, or the 1989 Order, otherwise than by way of a members’ voluntary winding up, (b) it has been wound up by way of a members’ voluntary winding up under the 1986 Act, or the 1989 Order, without having paid its debts in full together with interest at the official rate, or (c) it has been wound up or dissolved under the law of a country or territory (4) A company is “in administration” for the purposes of this paragraph if— (a) it is in administration within the meaning given by paragraph 1 of Schedule B1 to the 1986 Act or paragraph 2 of Schedule B1 to the 1989 Order, or (b) there is in force in relation to it under the law of a country or territory outside the United Kingdom any appointment corresponding to the appointment of an administrator under either of those Schedules. (5) This sub-paragraph applies to a company in respect of which— (a) a notice under sub-paragraph (1) of paragraph 84 of Schedule B1 to the 1986 Act (moving from administration to dissolution) has been registered under sub-paragraph (3) of that paragraph, or (b) a notice under sub-paragraph (1) of paragraph 85 of Schedule B1 to the 1989 Order (corresponding provision for Northern Ireland) has been registered under sub-paragraph (3) of that paragraph, unless an order has been made in relation to that notice under sub-paragraph (7)(c) (6) A company is “in receivership” for the purposes of this paragraph if— (a) there is (or, but for a temporary vacancy, would be) a person who in relation (i) is acting as administrative receiver in accordance with Chapter 1 of Part 3 of the 1986 Act or Part 4 of the 1989 Order, or (ii) is acting as receiver by virtue of section 51 of the 1986 Act, or (b) a corresponding situation under the law of a country or territory outside the United Kingdom exists in relation to the company. (7) In this paragraph “relevant scheme” means a compromise or arrangement— (a) under Part 1 of the 1986 Act or Part 2 of the 1989 Order (company voluntary (b) under Part 26 of the Companies Act 2006 (arrangements and (c) under any corresponding provision of a country or territory outside 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). 9 The amount for which an individual is jointly and severally liable under paragraph 2 or 3 in respect of a company’s tax liability is reduced by the amount of any penalty that the individual has paid in relation to that liability under any of the following (a) section 61 of VATA 1994 (VAT liability of directors etc); (b) section 28 of FA 2003 (liability of directors etc where body corporate liable to penalty for evasion of customs duty etc); (c) paragraph 19 of Schedule 24 to FA 2007 (liability of company officer where company liable to penalty under that Schedule); (d) paragraph 22 of Schedule 41 to FA 2008 (liability of company officer where company liable to penalty under that Schedule). Withdrawal or modification of notice 10 (1) HMRC must withdraw a joint liability notice given to an individual, by giving a further notice to the individual, if— (a) any of the relevant conditions were not met when the joint liability notice (b) it is not necessary for the protection of the revenue for the notice to continue (2) In this Schedule “relevant conditions” means— (a) conditions A to E in paragraph 2, in the case of a notice under paragraph 2(1); (b) conditions A to D in paragraph 3, in the case of a notice under paragraph 3(1); (c) conditions A to D in paragraph 5, in the case of a notice under paragraph 5(1). (3) HMRC must withdraw a notice given to an individual under paragraph 3(1), by giving a further notice to the individual, if— (a) at least one of the old companies (see paragraph 3(3)) is a company that— (i) became subject to an insolvency procedure on the basis that it was being wound up by way of a members’ voluntary winding up, and (ii) pays its debts in full, together with interest at the official rate, after the end of the period of 12 months beginning with the day on which the members’ voluntary winding up commenced but before the end (b) condition A in paragraph 3 would not have been met if that company, or each of them (if more than one), had not been subject to an insolvency procedure. (4) For the purposes of sub-paragraph (3)(a)(ii), the end of a members’ voluntary winding up of a company happens when— (a) the company is dissolved in pursuance of the members’ voluntary winding (b) the members’ voluntary winding up becomes a creditors’ voluntary winding (5) HMRC may withdraw a notice given to an individual under this Schedule, by giving a further notice to the individual, if they think it appropriate to do so even though sub-paragraph (1) or (3) does not apply. SCHEDULE 13 – Joint and several liability of company directors etc Document 2023-04-25 This is the original version (as it was originally enacted).
(6) Where an individual has been given a joint liability notice, HMRC may by further notice to the individual vary an amount specified— (a) under paragraph 2(9)(a) or (10), paragraph 3(11)(c) or paragraph 5(8)(a) if it seems to them that the amount so specified is, or has become, too much or not (7) Subject to sub-paragraph (8), a joint liability notice that is withdrawn under this (8) Where a joint liability notice is withdrawn under sub-paragraph (1)(b) or (3), the withdrawal of the notice does not give the individual a right to recover any amount that the individual has already paid to HMRC in response to the notice. (a) an individual is given a joint liability notice or a notice under paragraph 2(10) (b) before the end of the permitted period the individual communicates to HMRC written acceptance of the offer of a review contained in the notice, HMRC must review the decision to give the notice. (2) For the purposes of this paragraph “the permitted period” begins with the day on which the notice mentioned in sub-paragraph (1)(a) is given, and ends— (a) with the 30th day after that day, or (b) if HMRC give the individual a further notice specifying a later day (an “extension notice”), with that day. (a) must be given before the permitted period would (but for the notice) have (b) must specify a day that is at least 30 days after the date of the extension (c) may be given even if one or more extension notices have already been given. (4) If the individual does not accept the offer of a review within the permitted period, HMRC must nevertheless review the decision in question if— (a) after the end of the permitted period, the individual gives HMRC a notice requesting a review out of time, and (b) HMRC are satisfied that the individual had a reasonable excuse for not accepting the offer within the permitted period, and that the individual made the request without unreasonable delay after the excuse ceased to apply. (5) HMRC are not required to undertake or continue a review under this paragraph if the individual appeals under paragraph 13 against the notice in question. SCHEDULE 13 – Joint and several liability of company directors etc Document 2023-04-25 This is the original version (as it was originally enacted). 12 (1) This paragraph applies where HMRC are required to undertake a review under (2) The nature and extent of the review are to be such as appear appropriate to HMRC (3) HMRC must, in particular, have regard to steps taken before the beginning of the (a) by HMRC in reaching the decision, and (b) by any person in seeking to resolve disagreement about the decision. (4) The review must take account of any representations made by the individual at a stage which gives HMRC a reasonable opportunity to consider them. (5) But it is not open to the individual to challenge the existence or amount of any tax liability of a company to which the joint liability notice in question relates. (6) At the conclusion of the review— (a) HMRC must set aside the notice to which the review relates if it appears to (i) any of the relevant conditions were not met when the notice was (ii) it is not necessary for the protection of the revenue for the notice to (b) HMRC must set aside the notice or vary an amount specified under paragraph 2(9)(a), 3(11)(c) or 5(8)(a), or (as the case may be) paragraph 2(10) or 5(9), if it appears to HMRC that the amount specified (c) otherwise, HMRC must uphold the notice. (7) HMRC must give the individual notice of the conclusions of the review and their (a) within the period of 45 days beginning with the relevant date, or (b) within any other period that HMRC and the individual may agree. (8) In sub-paragraph (7) “relevant date” means— (a) the date on which HMRC received the individual’s notification accepting the offer of a review (in a case falling within paragraph 11(1)), or (b) the date on which HMRC decided to undertake the review (in a case falling (9) Where HMRC do not give notice of the conclusions within the time period specified (a) the notice to which the review relates is treated as upheld, and (b) HMRC must notify the individual accordingly. (10) Where a joint liability notice is set aside under sub-paragraph (6)(a)(ii), the setting aside of the notice does not give the individual a right to recover any amount that the individual has already paid to HMRC in response to the notice. SCHEDULE 13 – Joint and several liability of company directors etc Document 2023-04-25 This is the original version (as it was originally enacted). 13 (1) An individual who has been given— (a) a joint liability notice, or (b) a notice under paragraph 2(10) or 5(9), may appeal against the notice to the First-tier Tribunal. (2) An appeal under this paragraph must be made before— (a) the end of the period of 30 days beginning with the day on which the notice (b) if later, the end of the permitted period (within the meaning given by This is subject to sub-paragraphs (3) to (5). (3) Where HMRC are required to undertake a review under paragraph 11 in respect of a notice, any appeal in respect of that notice must be made within the period of 30 days beginning with the date of the notice under paragraph 12(7) communicating the conclusions of the review (“the conclusion date”).
(4) Where HMRC are requested to undertake a review in accordance with (a) no appeal may be made unless HMRC have notified the individual as to whether or not a review will be undertaken; (b) if HMRC have notified the individual that a review will be undertaken, any appeal must be made within the period of 30 days beginning with the (c) if HMRC have notified the individual that a review will not be undertaken, an appeal may be made only if the tribunal gives permission. (5) Where paragraph 12(9) applies, any appeal must be made— (a) after the end of the period specified in paragraph 12(7), and (b) before the end of the period of 30 days beginning with the date of the notice (6) An appeal may be made after the end of the period specified in sub- paragraph (2), (3), (4)(b) or (5)(b) if the tribunal gives permission. 14 (1) On an appeal under paragraph 13— (a) the tribunal must set aside the notice appealed against if it appears to the (i) any of the relevant conditions were not met when the notice was (ii) it is not necessary for the protection of the revenue for the notice to (b) the tribunal must set aside the notice or vary an amount specified under paragraph 2(9)(a), 3(11)(c) or 5(8)(a), or (as the case may be) paragraph 2(10) or 5(9), if it appears to the tribunal that the amount specified (c) otherwise, the tribunal must uphold the notice. SCHEDULE 13 – Joint and several liability of company directors etc Document 2023-04-25 This is the original version (as it was originally enacted). (2) It is not open to an individual appealing under paragraph 13 to challenge the existence or amount of any tax liability of a company to which the joint liability notice in (But see paragraph 15, under which the individual may in certain circumstances pursue an appeal in place of the company.) (3) Where a notice is set aside under sub-paragraph (1)(a)(ii), the setting aside of the notice does not give the individual a right to recover any amount that the individual has already paid to HMRC in response to the notice. Appeal in respect of liability of company (a) an individual is made jointly and severally liable by a joint liability notice for a tax liability of a company, (b) an appeal by the company in respect of that liability has been commenced (whether before or after the joint liability notice is given) but has not been (c) the company is subject to an insolvency procedure, the individual is entitled to be a party to the proceedings, and may continue the appeal if the company is unable or unwilling to do so. (a) an individual is made jointly and severally liable by a joint liability notice for a tax liability of a company, and (b) the company is subject to an insolvency procedure and does not make an appeal in respect of that liability, an appeal in respect of that liability may be made in the name of the individual. (3) An appeal made under sub-paragraph (2) may be commenced within the period of 30 days beginning with the day on which the joint liability notice is given (even if a time limit for the company to appeal has expired). Proceedings for determination of penalty to be imposed on company 16 Where an individual is given a notice under paragraph 5(1) in a case where paragraph 5(2)(b) applies (proceedings commenced before First-tier Tribunal for penalty to be imposed on company), the individual is entitled to be a party to the proceedings referred to in that provision. Cases where company has ceased to exist 17 (1) Where a joint liability notice is given to an individual at a time when the company to which the notice relates has ceased to exist, a reference in this Schedule to the individual being jointly and severally liable with the company for an amount is to (a) a reference to the individual being solely liable for that amount (where no other individual is given a joint liability notice in respect of it), or (b) a reference to the individual being jointly and severally liable for that amount with each other individual who is given a joint liability notice in respect of it. SCHEDULE 13 – Joint and several liability of company directors etc Document 2023-04-25 This is the original version (as it was originally enacted). (2) The tax liability at a particular time of a company which no longer exists at that time is treated for the purposes of this Schedule as being whatever it was immediately before the company ceased to exist. Application to limited liability partnerships 18 (1) This paragraph has effect for the purposes of this Schedule as it applies in relation to a limited liability partnership. (2) A reference to a director or shadow director of a company, or a participator in it, is to be read as a reference to a member or shadow member of the limited liability (3) A reference in paragraph 8 to the Insolvency Act 1986 or the Insolvency (Northern Ireland) Order 1989 is to that Act or Order as applied or incorporated by regulations under section 14 of the Limited Liability Partnerships Act 2000.
(4) A reference in paragraph 8 to the Companies Act 2006 is to that Act as applied or incorporated by regulations under section 15 of the Limited Liability Partnerships “authorised HMRC officer” means an officer of Revenue and Customs who is, or is a member of a class of officers who are, authorised by the Commissioners for Her Majesty’s Revenue and Customs for the purpose of “company” has the meaning given by paragraph 1(3); “contract settlement” means an agreement in connection with a person’s liability to make a payment to HMRC under or by virtue of an enactment; “creditors’ voluntary winding up” has the meaning given by— (a) section 90 of the Insolvency Act 1986 (“the 1986 Act”) (in relation to England and Wales and Scotland), or (b) Article 76 of the Insolvency (Northern Ireland) Order 1989 ( S.I. 1989/2405 (N.I. 19) ) (“the 1989 Order”) (in relation to Northern “director” has the meaning given by section 250 of the Companies Act “joint liability notice” has the meaning given by paragraph 1(2); “HMRC” means Her Majesty’s Revenue and Customs; “insolvency procedure” has the meaning given by paragraph 8; “limited liability partnership” means a body incorporated under the Limited Liability Partnerships Act 2000; “member”, in relation to a limited liability partnership, has the same meaning as in the Limited Liability Partnerships Act 2000 (see section 4 of “members’ voluntary winding up” has the meaning given by— (a) section 90 of the 1986 Act (in relation to England and Wales and (b) Article 76 of the 1989 Order (in relation to Northern Ireland);

SCHEDULE 14 – Amendments relating to the operation of the GAAR Document 2023-04-25 This is the original version (as it was originally enacted). “notice” means notice in writing; “notify” means notify in writing; “the official rate”, in relation to interest, means the rate payable under section 189 of the 1986 Act or (as the case may be) Article 160 of the 1989 “participator” has the meaning given by section 454 of CTA 2010; “relevant conditions” has the meaning given by paragraph 10(2); “shadow director” has the meaning given by section 251 of the Companies “shadow member”, in relation to a limited liability partnership, means a person in accordance with whose directions or instructions the members of the partnership are accustomed to act (except that a person is not treated as a shadow member by reason only that the members of the partnership act on advice given by the person in a professional capacity); “tax-avoidance arrangements” has the meaning given by paragraph 6; “tax-evasive conduct” has the meaning given by paragraph 7; “tax liability”, in relation to a company, means any amount payable to the Commissioners for Her Majesty’s Revenue and Customs by the company under or by virtue of an enactment or under a contract settlement; “unsecured creditor” has the meaning given by— (a) section 248 of the 1986 Act (in relation to England and Wales and (b) Article 5(1) of the 1989 Order (in relation to Northern Ireland). 1 Part 5 of FA 2013 (the general anti-abuse rule) is amended as follows. Protecting adjustments under the GAAR before time limits expire 2 In section 209 (counteracting the tax advantage), for subsection (6) substitute— (a) the effect of adjustments made by an officer of Revenue and Customs by virtue of this section is suspended until the procedural requirements of Schedule 43, 43A or 43B have been complied with, (b) the power to make adjustments by virtue of this section is subject to any time limit imposed by or under any enactment other than this The provision made by this subsection needs to be read with sections 209AA to 209AC and has no effect on adjustments so far as made otherwise than

SCHEDULE 14 – Amendments relating to the operation of the GAAR Document 2023-04-25 This is the original version (as it was originally enacted). “209AA Protective GAAR notices (1) An officer of Revenue and Customs may give a written notice (a “protective GAAR notice”) to a person stating that the officer considers— (a) that a tax advantage might have arisen to the person from tax arrangements that are abusive, and (b) that, on the assumption that the advantage does arise from tax arrangements that are abusive, it ought to be counteracted under (2) The protective GAAR notice must be given within the ordinary assessing time limit applicable to the proposed adjustments. (a) a tax enquiry is in progress into a return made by the person, and (b) the return relates to the tax in respect of which the specified adjustments under the protective GAAR notice are made, the protective GAAR notice must instead be given no later than the time when the enquiry is completed. (4) The protective GAAR notice must— (a) specify the arrangements and the tax advantage, and (b) specify the adjustments that, on the assumption that the advantage does arise from tax arrangements that are abusive, the officer (5) The adjustments specified in the protective GAAR notice have effect as if they are made by virtue of section 209. (6) Notice of appeal may be given against the adjustments specified in the protective GAAR notice (whether or not the adjustments are also made otherwise than by virtue of section 209). (7) Any appeal against the specified adjustments (whether made by virtue of section 209 or otherwise) is, as a result of this subsection, stayed— (a) for a period of 12 months beginning with the day on which the protective GAAR notice is given, or (b) if a final GAAR counteraction notice is given before the end of that period, for a period ending with the day on which the final GAAR counteraction notice is given.
(8) If, in the case of the specified adjustments (whether made by virtue of (a) notice of appeal is not given or notice of appeal is given but the appeal is subsequently withdrawn or determined by agreement, and (b) no final GAAR counteraction notice is given, the protective GAAR notice has effect for all purposes (other than the purposes of section 212A) as if it had been given as a final GAAR counteraction notice (and, accordingly, as if the GAAR procedural requirements had been complied with). SCHEDULE 14 – Amendments relating to the operation of the GAAR Document 2023-04-25 This is the original version (as it was originally enacted). (9) In any case not falling within subsection (8)— (a) the specified adjustments have no effect (so far as they are made by virtue of section 209) unless they (or lesser adjustments) are subsequently specified in a final GAAR counteraction notice, but (b) the giving of the protective GAAR notice is treated as meeting the requirements of section 209(6)(b) in the case of that final GAAR 4 After section 209AA (as inserted by paragraph 3) insert— “209AB Adjustments under section 209: notices under Schedule 43 or 43A (1) This section applies in the case of any particular adjustments in respect of a particular period or matter (“the adjustments concerned”) if— (a) a person is given a notice under paragraph 3 of Schedule 43 or a pooling notice or notice of binding under Schedule 43A (“the Schedule 43 or 43A notice”) that specifies the adjustments concerned (whether or not other adjustments are specified), (b) the Schedule 43 or 43A notice is given within the relevant time limit applicable to the adjustments concerned, and (c) the adjustments concerned have not been specified in a provisional counteraction notice under section 209A, or a protective GAAR notice under section 209AA, given before the time at which the Schedule 43 or 43A notice is given. (2) The Schedule 43 or 43A notice is given within the relevant time limit if— (a) it is given within the ordinary assessing time limit applicable to the (b) if a tax enquiry is in progress into a return made by the person and the particular adjustments concerned relate to the matters contained in the return, it is given no later than the time when the enquiry is (3) The adjustments concerned have effect as if they are made by virtue of (4) If, in the case of the specified adjustments (whether made by virtue of (a) notice of appeal is not given or notice of appeal is given but the appeal is subsequently withdrawn or determined by agreement, and (b) no final GAAR counteraction notice is given, the Schedule 43 or 43A notice has effect for all purposes (other than the purposes of section 212A) as if it had been given as a final GAAR counteraction notice (and, accordingly, as if the GAAR procedural requirements had been complied with). (5) In any case not falling within subsection (4)— (a) the adjustments concerned have no effect (so far as they are made by virtue of section 209) unless they (or lesser adjustments) are subsequently specified in a final GAAR counteraction notice, but

SCHEDULE 14 – Amendments relating to the operation of the GAAR Document 2023-04-25 This is the original version (as it was originally enacted). (b) the giving of the Schedule 43 or 43A notice is treated as meeting the requirements of section 209(6)(b) in the case of that final GAAR 5 After section 209AB (as inserted by paragraph 4) insert— “209AC Sections 209AA and 209AB: definitions (1) In sections 209AA and 209AB— “final GAAR counteraction notice” means a notice given under— (a) paragraph 12 of Schedule 43, (b) paragraph 8 or 9 of Schedule 43A, or (c) paragraph 8 of Schedule 43B, “GAAR procedural requirements” means the procedural requirements of Schedule 43, 43A or 43B, “lesser adjustments” means adjustments specified in the final GAAR counteraction notice which assume a smaller tax advantage than was assumed in the protective GAAR notice or (as the case may be) the Schedule 43 or 43A notice, and “ordinary assessing time limit”, in relation to any adjustments, means the time limit imposed by or under any enactment other than this Part for the making of the adjustments. (2) Expressions which are used in section 202 of FA 2014 (“tax enquiry”, and its being “in progress”, and “return”) have the same meaning in sections 209AA and 209AB as they have in that section (and references to completing a tax enquiry are to be read accordingly).” 6 Omit sections 209A to 209F (provisional counteraction notices). 7 In section 214(1) (interpretation of Part 5 of FA 2013), omit— (a) the definition of “notified adjustments”, and (b) the definition of “provisional counteraction notice”. 8 In paragraph 11 of Schedule 43A (meaning of “equivalent arrangements”), omit “For the purposes of paragraph 1,”. 9 In paragraph 5 of Schedule 43C (penalty under section 212A), for sub-paragraphs “(5) An assessment of a penalty under this paragraph must be made before the end of the period of 12 months beginning with the date (or the latest of the dates) on which the counteraction mentioned in section 212A(1)(d) becomes final (within the meaning of section 210(8)).” 10 The amendment made by paragraph 2 has effect in relation to adjustments made by an officer of Revenue and Customs by virtue of section 209 of FA 2013 on or after

SCHEDULE 15 – Tax relief for scheme payments etc Document 2023-04-25 This is the original version (as it was originally enacted). 11 The amendment made by paragraph 3 has effect in relation to notices given under section 209AA of FA 2013 on or after the commencement date (whenever the arrangements are entered into) but no notice may be given under that section in relation to any adjustments if a provisional counteraction notice has been given under section 209A of that Act before that date in respect of those adjustments.
12 The amendment made by paragraph 4 has effect in relation to notices given under Schedule 43 or 43A to FA 2013 on or after the commencement date (whenever the arrangements are entered into). 13 The amendment made by paragraph 6 does not affect the operation of sections 209A to 209F of FA 2013 in relation to provisional counteraction notices given under section 209A of that Act before the commencement date. 14 The amendment made by paragraph 9 has effect in relation to cases where a person becomes liable to a penalty under section 212A of FA 2013 on or after the 15 In paragraphs 10 to 14 “the commencement date” means the date on which this Act 1 (1) This Schedule provides for the following in respect of qualifying payments— (a) an exemption from income tax, and (b) an exemption from capital gains tax. (2) This Schedule also provides for a relief from inheritance tax in respect of qualifying payments (but see paragraph 5(4), which contains an excepted case). 2 (1) In this Schedule “qualifying payment” means a payment within any of sub- (2) A payment is within this sub-paragraph if it is a payment under the Windrush (3) A payment is within this sub-paragraph if— (a) it is made otherwise than under the Windrush Compensation Scheme, (b) it is made to, or in respect of, a person who made a claim under that Scheme (which the person was eligible to make), (c) it is made in connection with the same circumstances as gave rise to that person’s eligibility to make that claim, and (d) it is made by or on behalf of— (i) the government of the United Kingdom, (ii) the government of a part of the United Kingdom, or (iii) a local or other public authority in the United Kingdom. SCHEDULE 15 – Tax relief for scheme payments etc Document 2023-04-25 This is the original version (as it was originally enacted). (4) A payment is within this sub-paragraph if it is a payment under the Troubles Permanent Disablement Payment Scheme established by the Victims’ Payments Regulations 2020 (S.I. 2020/103) (as that scheme is amended from time to time). (5) A payment is within this sub-paragraph if— (a) it is a compensation payment of a description specified in regulations made by the Treasury by statutory instrument, and (b) it is a payment made by or on behalf of— (i) the government of the United Kingdom, (ii) the government of a part of the United Kingdom, (iii) the government of any other country or territory, (iv) a local or other public authority in the United Kingdom, or (v) a local or other public authority of a territory outside the United (6) Regulations under sub-paragraph (5) may provide that a compensation payment of a description specified in the regulations is a qualifying payment only for the purposes of particular provisions of this Schedule. (7) A statutory instrument containing regulations under sub-paragraph (5) is subject to annulment in pursuance of a resolution of the House of Commons. (8) In this paragraph “the Windrush Compensation Scheme” means the scheme published by the Home Office on 3 April 2019 which provides compensation for certain categories of persons in recognition of difficulties arising out of an inability to demonstrate lawful immigration status (as that scheme is amended from time to 3 (1) No liability to income tax arises in respect of a qualifying payment. (2) A qualifying payment is to be ignored for all other income tax purposes. (3) This paragraph has effect in relation to qualifying payments within paragraph 2(2) or (3) that are received on or after 3 April 2019. (4) This paragraph has effect in relation to qualifying payments within paragraph 2(4) that are received on or after 29 May 2020. (5) This paragraph has effect in relation to qualifying payments within paragraph 2(5) that are received on or after such date as is specified in the regulations concerned (which may be a date before the regulations are made). Exemptions from capital gains tax 4 (1) A gain accruing on a disposal is not a chargeable gain if it accrues on— (a) a disposal arising as a result of the forfeiture or surrender of rights, or as a result of refraining from exercising rights, in return for a qualifying payment, (b) a disposal of the right to receive the whole or any part of a qualifying (c) a disposal of an interest in any such right. SCHEDULE 15 – Tax relief for scheme payments etc Document 2023-04-25 This is the original version (as it was originally enacted). (2) In sub-paragraph (1)(c) “interest”, in relation to a right, means an interest as a co- owner of the right (whether it is owned jointly or in common and whether or not the interests of the co-owners are equal). (3) This paragraph has effect— (a) in a case where the qualifying payment concerned is within paragraph 2(2) or (3), in relation to disposals made on or after 3 April 2019, (b) in a case where the qualifying payment concerned is within paragraph 2(4), in relation to disposals made on or after 29 May 2020, and (c) in a case where the qualifying payment concerned is within paragraph 2(5), in relation to disposals made on or after such date as is specified in the regulations concerned (which may be a date before the regulations are made). 5 (1) This paragraph applies where a qualifying payment is at any time received by a person or the personal representatives of a person (but see sub-paragraph (4)). (2) The inheritance tax chargeable on the value transferred by the transfer made on the person’s death is to be reduced by an amount equal to— (a) the relevant percentage of the amount of the payment, or (b) if lower, the amount of inheritance tax that would, apart from this paragraph, be chargeable on the value transferred.
(3) The “relevant percentage” means the percentage in the last row of the third column (4) This paragraph does not apply in a case where— (a) the qualifying payment is within paragraph 2(3), (b) the payment is made after the death of the person mentioned in paragraph (b) (c) the payment is made otherwise than to the personal representatives of that (5) This paragraph has effect, in a case where the qualifying payment is within paragraph 2(2) or (3), in relation to deaths occurring on or after 3 April 2019. (6) This paragraph has effect, in a case where the qualifying payment is within paragraph 2(4), in relation to deaths occurring on or after 29 May 2020. (7) This paragraph has effect, in a case where the qualifying payment is within paragraph 2(5), in relation to deaths occurring on or after such date as is specified in the regulations concerned (which may be a date before the regulations are made). SCHEDULE 16 – Taxation of coronavirus support payments Document 2023-04-25 This is the original version (as it was originally enacted). Accounting for coronavirus support payments referable to a business 1 (1) This paragraph applies if a person carrying on, or who carried on, a business (whether alone or in partnership) receives a coronavirus support payment that is referable to (2) So much of the coronavirus support payment as is referable to the business is a receipt of a revenue nature for income tax or corporation tax purposes and is to be brought into account in calculating the profits of that business— (a) under the applicable provisions of the Income Tax Acts, or (b) under the applicable provisions of the Corporation Tax Acts. (3) Subject to paragraph 2(5), sub-paragraph (2) does not apply to an amount of a coronavirus support payment if— (a) the business to which the amount is referable is no longer carried on by the (b) the amount is not referable to activities of the business undertaken at a time when it was being carried on by the recipient of the amount. (4) If an amount of the coronavirus support payment is referable to more than one business or business activity, the amount is to be allocated between those businesses or activities on a just and reasonable basis. (5) Paragraph 3 contains provision about when, in certain cases, an amount of a coronavirus support payment is, or is not, referable to a business for the purposes of this paragraph and paragraph 2. (6) In this Schedule “business” includes— (a) a trade, profession or vocation; (b) a UK property business or an overseas property business; (c) a business consisting wholly or partly of making investments. Amounts not referable to activities of a business which is being carried on 2 (1) This paragraph applies if a person who carried on a business (whether alone or in partnership) receives a coronavirus support payment that— (a) is referable to the business, and (b) is not wholly referable to activities of the business undertaken while the business was being carried on by the recipient of the payment. (2) So much of the coronavirus support payment as is referable to the business but which is not referable to activities of the business undertaken while the business was being carried on by the recipient of the payment is to be treated as follows. (3) An amount referable to a trade, profession or vocation is to be treated as a post- cessation receipt for the purposes of Chapter 18 of Part 2 of ITTOIA 2005 or Chapter 15 of Part 3 of CTA 2009 (trading post-cessation receipts), and— (a) in the application of Chapter 18 of Part 2 of ITTOIA 2005 to that amount, section 243 (extent of charge to tax) is omitted, and

SCHEDULE 16 – Taxation of coronavirus support payments Document 2023-04-25 This is the original version (as it was originally enacted). (b) in the application of Chapter 15 of Part 3 of CTA 2009 to that amount, section 189 (extent of charge to tax) is omitted. (4) An amount referable to a UK property business or an overseas property business is to be treated (in either case) as a post-cessation receipt from a UK property business for the purposes of Chapter 10 of Part 3 of ITTOIA 2005 or Chapter 9 of Part 4 of CTA 2009 (property post- cessation receipts), and— (a) in the application of Chapter 10 of Part 3 of ITTOIA 2005 to that amount, section 350 (extent of charge to tax) is omitted, and (b) in the application of Chapter 9 of Part 4 of CTA 2009 to that amount, section 281 (extent of charge to tax) is omitted. (5) In any other case, for the purposes of paragraph 1(3)— (a) the recipient of the amount is to be treated as if carrying on the business to which the amount is referable at the time of the receipt of the amount, and (b) the amount is to be treated as if it were referable to activities undertaken by (6) Where the recipient of the amount has incurred expenses that— (a) are referable to the amount, and (b) would be deductible in calculating the profits of the business if it were being carried on at the time of receipt of the amount, the amount brought into account under paragraph 1(2) by virtue of sub-paragraph (5) is to be reduced by the amount of those expenses. (7) But sub-paragraph (6) does not apply to expenses of a person that arise directly or indirectly from the person ceasing to carry on business.
Amounts referable to businesses in certain cases 3 (1) An amount of a coronavirus support payment made under an employment-related (a) is referable to the business of the person entitled to the payment as an employer (even if the person is not for other purposes the employer of the employees to whom the payment relates), and (b) is not referable to any other business (and no deduction for any expenses in respect of the same employment costs which are the subject of the payment is allowed in calculating the profits of any other business or in calculating the liability of any other person to tax charged under section 242 or 349 of ITTOIA 2005 or section 188 or 280 of CTA 2009 (post-cessation receipts)). (2) A coronavirus support payment made under the self-employment income support scheme is referable to the business of the individual to whom the payment relates. (3) Where an amount of a coronavirus support payment made under the self-employment income support scheme is brought into account under paragraph 1(2), the whole of the amount is to be treated as a receipt of a revenue nature of the tax year 2020-21 (irrespective of its treatment for accounting purposes). (4) But sub-paragraph (3) does not apply to an amount of a coronavirus support payment made under the self-employment income support scheme in respect of a partner of a firm where the amount is distributed amongst the partners (rather than being retained

SCHEDULE 16 – Taxation of coronavirus support payments Document 2023-04-25 This is the original version (as it was originally enacted). (5) An amount of a coronavirus support payment made under the self-employment income support scheme in respect of a partner of a firm that is retained by the partner (rather than being distributed amongst the partners) is not to be treated as a receipt (a) the receipt is not to be included in the calculation of the firm’s profits for the purposes of determining the share of profits or losses for each partner of the firm (see sections 849 to 850E of ITTOIA 2005 and sections 1259 to (b) the receipt is then to be added to the partner’s share. Exemptions, reliefs and deductions 4 (1) An amount of a coronavirus support payment that relates only to mutual activities of a business that carries on a mutual trade is to be treated as if it were income arising from those activities (and accordingly the amount is not taxable). (2) A coronavirus support payment is to be ignored when carrying out the calculation— (a) in section 528(1) of ITA 2007 (incoming resources limit for charitable (b) in section 482(1) of CTA 2010 (incoming resources limit for charitable (c) in section 661CA(1) of CTA 2010 (income condition for community amateur (3) A coronavirus support payment made under an employment-related scheme is to be ignored when carrying out the calculation— (a) in section 662(2) of CTA 2010 (exemption from corporation tax for UK trading income of community amateur sports clubs); (b) in section 663(2) of that Act (exemption from corporation tax for UK property income of community amateur sports clubs). (4) No relief under Chapter 1 of Part 6A of ITTOIA 2005 (trading allowance) is given to an individual on an amount of a coronavirus support payment made under the self- employment income support scheme brought into account under paragraph 1(2) as (5) For the purposes of that Part, such an amount is to be ignored when calculating the individual’s “relevant income” for that tax year under Chapter 1 of that Part. (6) Neither section 57 of ITTOIA 2005 nor section 61 of CTA 2009 (deductions for pre-trading expenses) (including as they apply by virtue of sections 272 and 272ZA of ITTOIA 2005 and section 210 of CTA 2009) apply to employment costs where an amount of a coronavirus support payment made under an employment-related scheme relates to those costs. Charge where employment costs deductible by another 5 (1) Income tax is charged on an amount of a coronavirus support payment made under an employment-related scheme if conditions A and B are met. SCHEDULE 16 – Taxation of coronavirus support payments Document 2023-04-25 This is the original version (as it was originally enacted). (2) Condition A is that the amount is neither brought into account under paragraph 1(2) in calculating the profits of a business carried on by the person entitled to the payment as an employer nor treated, by virtue of paragraph 2(3) or (4), as a post-cessation receipt arising from the carrying on of such a business. (3) Condition B is that expenses incurred by another person in respect of the same employment costs which are the subject of the coronavirus support payment and to which the amount relates are deductible— (a) in calculating the profits of a business carried on by that other person (for income or corporation tax purposes), or (b) in calculating the liability of that other person to tax charged under section 242 or 349 of ITTOIA 2005 or section 188 or 280 of CTA 2009 (post- (4) Tax is charged under sub-paragraph (1) on the whole of the amount to which that (5) The person liable for tax charged under sub-paragraph (1) is the person entitled to the coronavirus support payment as an employer. (6) Section 3(1) of CTA 2009 (exclusion of charge to income tax) does not apply to an amount of a coronavirus support payment that is charged under this paragraph.
Charge where no business carried on 6 (1) Tax is charged on an amount of a coronavirus support payment, other than a payment made under an employment-related scheme or the self-employment income support (a) the amount is neither brought into account under paragraph 1(2) in calculating the profits of a business nor treated as a post-cessation receipt by virtue of paragraph 2(3) or (4), and (b) at the time the coronavirus support payment was received, the recipient did not carry on a business whose profits are charged to tax and to which the (2) In this paragraph “tax” means— (a) corporation tax, in the case of a company that (apart from this paragraph) is chargeable to corporation tax, or to any amount chargeable as if it was (b) income tax, in any other case. (3) Tax is charged under sub-paragraph (1) on the whole of the amount to which that (4) The person liable for tax charged under sub-paragraph (1) is the recipient of that (5) Where income tax is charged under sub-paragraph (1), sections 527 and 528 of ITA 2007 (exemption and income condition for charitable trusts) have effect as if sub- paragraph (1) were a provision to which section 1016 of that Act applies. (6) Where corporation tax is charged under sub-paragraph (1), sections 481 and 482 of CTA 2010 (exemption and income condition for charitable companies) have effect as if sub-paragraph (1) were a provision to which section 1173 of that Act applies. SCHEDULE 16 – Taxation of coronavirus support payments Document 2023-04-25 This is the original version (as it was originally enacted). 7 The Treasury may by regulations modify the application of any provision of the Tax Acts that affects (or that otherwise would affect) the treatment of— (a) receipts brought into account under paragraph 1(2), (b) amounts treated as post-cessation receipts under paragraph 2(3) or (4), or (c) amounts charged under paragraph 5(1) or 6(1). Charge if person not entitled to coronavirus support payment 8 (1) A recipient of an amount of a coronavirus support payment is liable to income tax under this paragraph if the recipient is not entitled to the amount in accordance with the scheme under which the payment was made. (2) But sub-paragraph (1) does not apply to an amount of a coronavirus support payment made under a coronavirus business support grant scheme or the coronavirus statutory (3) For the purposes of this Schedule, references to a person not being entitled to an amount include, in the case of an amount of a coronavirus support payment made under the coronavirus job retention scheme, a case where the person ceases to be entitled to retain the amount after it was received— (a) because of a change in circumstances, or (b) because the person has not, within a reasonable period, used the amount to pay the costs which it was intended to reimburse. (4) Income tax becomes chargeable under this paragraph— (a) in a case where the person was entitled to an amount of a coronavirus support payment paid under the coronavirus job retention scheme but subsequently ceases to be entitled to retain it, at the time the person ceases to be entitled (b) in any other case, at the time the coronavirus support payment is received. (5) The amount of income tax chargeable under this paragraph is the amount equal to so much of the coronavirus support payment— (a) as the recipient is not entitled to, and (b) as has not been repaid to the person who made the coronavirus support (6) Where income tax which is chargeable under this paragraph is the subject of an assessment (whether under paragraph 9 or otherwise)— (a) paragraphs 1 to 6 do not apply to the amount of the coronavirus support payment that is the subject of the assessment, (b) that amount is not, for the purposes of Step 1 of the calculation in section 23 of ITA 2007 (calculation of income tax liability), to be treated as an amount of income on which the taxpayer is charged to income tax (but see paragraph 10 which makes further provision about the application of that (c) that amount is not to be treated as income of a company for the purposes of section 3 of CTA 2009 (and accordingly the exclusion of the application of the provisions of the Income Tax Acts to the income of certain companies does not apply to the receipt of an amount charged under this paragraph). SCHEDULE 16 – Taxation of coronavirus support payments Document 2023-04-25 This is the original version (as it was originally enacted). (7) No loss, deficit, expense or allowance may be taken into account in calculating, or may be deducted from or set off against, any amount of income tax charged under (8) In calculating profits or losses for the purposes of corporation tax, no deduction is allowed in respect of the payment of income tax charged under this paragraph. (9) For the purposes of this paragraph and paragraphs 9(4) and 14, a firm is not to be regarded as receiving an amount of a coronavirus support payment made under the self-employment income support scheme in respect of a partner of that firm that is retained by the partner (rather than being distributed amongst the partners). Assessments of income tax chargeable under paragraph 8 9 (1) If an officer of Revenue and Customs considers (whether on the basis of information or documents obtained by virtue of the exercise of powers under Schedule 36 to FA 2008 or otherwise) that a person has received an amount of a coronavirus support payment to which the person is not entitled, the officer may make an assessment in the amount which ought in the officer’s opinion to be charged under paragraph 8. (2) An assessment under sub-paragraph (1) may be made at any time, but this is subject to sections 34 and 36 of TMA 1970.
(3) Parts 4 to 6 of TMA 1970 contain other provisions that are relevant to an assessment under sub-paragraph (1) (for example, section 31 makes provision about appeals and section 59B(6) makes provision about the time to pay income tax payable by virtue (4) Where income tax is chargeable under paragraph 8 in relation to an amount of a coronavirus support payment received by a firm— (a) an assessment (under sub-paragraph (1) or otherwise) may be made on any of the partners in respect of the total amount of tax that is chargeable, (b) each of the partners is jointly and severally liable for the tax so assessed, and (c) if the total amount of tax that is chargeable is included in a return under section 8 of TMA 1970 made by one of the partners, the other partners are not required to include the tax in returns made by them under that section. Calculation of income tax liability 10 (1) Section 23 of ITA 2007 (calculation of income tax liability) applies in relation to a person liable to income tax charged under paragraph 8 as if that paragraph were included in the lists of provisions in subsections (1) and (2) of section 30 of that Act (amounts of tax added at step 7). (2) For the purposes of paragraph 7(2) of Schedule 41 to FA 2008, a relevant obligation relating to income tax charged under paragraph 8 of this Schedule relates to a tax year if the income tax became chargeable in that tax year. (3) But this paragraph does not apply to a company to which paragraph 11 (companies chargeable to corporation tax) applies. SCHEDULE 16 – Taxation of coronavirus support payments Document 2023-04-25 This is the original version (as it was originally enacted). Calculation of tax companies chargeable to corporation tax 11 (1) This paragraph applies where a person liable to income tax charged under paragraph 8 is a company that is chargeable to corporation tax, or to any amount chargeable as if it was corporation tax, in relation to a period within which the income tax became (2) Part 5A of TMA 1970 (payment of tax) applies in relation to that company as if— (a) the reference to “corporation tax” in subsection (1) of section 59D (general rule as to when corporation tax is due and payable) included income tax charged under paragraph 8 of this Schedule; (b) an amount of income tax charged under paragraph 8 of this Schedule were an amount within subsection (6) of section 59F (arrangements for paying tax (c) any reference in section 59G (managed payment plans) to “corporation tax” included income tax charged under paragraph 8 of this Schedule. (3) Part 9 of that Act (interest on overdue tax) applies in relation to that company as if— (a) the references in section 86 (interest on overdue income tax and capital gains tax) to “income tax” did not include income tax charged under paragraph 8 (b) in subsection (1) of section 87A (interest on overdue corporation tax) the reference to “corporation tax” included income tax charged under (4) Schedule 18 to FA 1998 (company tax returns etc.) applies in relation to that company (a) any reference in that Schedule to “tax”, other than the references in paragraph 2 of that Schedule (duty to give notice of chargeability), included income tax charged under paragraph 8 of this Schedule, and (b) in paragraph 8(1) of that Schedule (calculation of tax payable), at the end Add any amount of income tax chargeable under paragraph 8 of Schedule 16 to the Finance Act 2020.” (5) But the modifications of that Schedule are to be ignored for the purposes of the Corporation Tax (Instalment Payments) Regulations 1998 (S.I. 1998/3175). (6) Schedule 41 to FA 2008 applies in relation to that company as if — (a) the references to “income tax” in paragraph 7(2) did not include income tax charged under paragraph 8 of this Schedule; (b) the reference to “corporation tax” in paragraph 7(3) included income tax charged under paragraph 8 of this Schedule; (but see paragraph 13(5) of this Schedule which has the effect that paragraph 7 of that Schedule does not apply in certain circumstances). (7) For the purposes of paragraph 7(3) of Schedule 41 to FA 2008 (as modified by sub- paragraph (6)), a relevant obligation relating to income tax charged under paragraph 8 of this Schedule relates to an accounting period if the income tax became chargeable

SCHEDULE 16 – Taxation of coronavirus support payments Document 2023-04-25 This is the original version (as it was originally enacted). Notification of liability under paragraph 8 12 (1) Section 7 of TMA 1970 (notice of liability to income tax and capital gains tax) applies in relation to income tax chargeable under paragraph 8 as provided for in (2) Subsection (1) has effect as if paragraph (b) (and the “and” before it) were omitted. (3) Subsection (1) has effect as if the reference to “the notification period” were to the period commencing on the day on which the income tax became chargeable and (a) the 90th day after the day on which this Act is passed, or (b) the 90th day after the day on which the income tax became chargeable. (4) Subsection (3)(c) has effect as if after “child benefit charge” there were inserted “or to income tax under paragraph 8 of Schedule 16 to the Finance Act 2020”. (5) In relation to income tax chargeable under paragraph 8 in relation to an amount of a coronavirus support payment received by a firm, the duty in subsection (1) (as it has effect by virtue of sub-paragraphs (2) and (3)) is taken to have been complied with by each of the partners if one of the partners has complied with it.
(6) The reference in section 36(1A)(b) of TMA 1970 (20 year period for assessment in a case involving a loss of income tax) to a failure to comply with an obligation under section 7 of that Act is not to be taken as including a failure arising by virtue of the modification of that section by this paragraph, unless the failure is one to which Penalty for failure to knowledge of non-entitlement to payment 13 (1) This paragraph applies to a failure of a person to notify, under section 7 of TMA 1970 (as modified by paragraph 12), a liability to income tax chargeable under paragraph 8 where the person knew, at the time the income tax first became chargeable, that the person was not entitled to the amount of the coronavirus support payment in relation to which the tax is chargeable. (2) Schedule 41 to FA 2008 (failure to notify) applies to a failure described in sub- (3) The failure is to be treated as deliberate and concealed. (4) Accordingly, paragraph 6 of that Schedule has effect as if the references to a penalty for “a deliberate but not concealed failure” or for “any other case” were omitted. (5) For the purposes of that Schedule (except in a case falling within paragraph 14 of this Schedule), the “potential lost revenue” is to be treated as being the amount of income tax which would have been assessable on the person at the end of the last day of the notification period (see paragraph 12(3)). 14 (1) This paragraph applies to a failure to notify, under section 7 of TMA 1970 (as modified by paragraph 12), a liability to income tax chargeable under paragraph 8 by a partner of a firm that received the amount of the coronavirus support payment in relation to which the tax is chargeable. SCHEDULE 16 – Taxation of coronavirus support payments Document 2023-04-25 This is the original version (as it was originally enacted). (2) For the purposes of paragraph 13(1) of this Schedule, each partner is taken to know anything that any of the other partners knows. (3) Where a partner would be liable to a penalty under Schedule 41 to FA 2008 (whether in a case falling within paragraph 13 or otherwise), the partner is instead jointly and severally liable with the other partners to a single penalty under that Schedule for the failures by each of them to notify. (4) In a case not falling within paragraph 13, if the failure of at least one of the partners— (a) was deliberate and concealed, the single penalty is to be treated as a penalty for a deliberate and concealed failure; (b) was deliberate but not concealed, the single penalty is to be treated as a penalty for a deliberate but not concealed failure. (5) For the purposes of Schedule 41 to FA 2008, the “potential lost revenue” is to be treated as being the amount of income tax which would have been assessable on any one of the partners (see paragraph 9(4)(a))— (a) in a case falling within paragraph 13, at the end of the last day of the (b) in any other case, at the end of 31 January following the tax year in which the amount of coronavirus support payment was received by the firm. (6) Paragraph 22 of that Schedule (limited liability members’ liability) Liability of officers of insolvent companies (a) provides for an individual to be jointly and severally liable to the Commissioners for Her Majesty’s Revenue and Customs for a liability of a company to income tax charged under paragraph 8, where a notice under sub-paragraph (2) is given to the individual, and (b) applies paragraphs 10 to 15 and 17 of Schedule 13 (joint liability tax avoidance, tax evasion and repeated insolvency and non-payment) to such (2) An officer of Revenue and Customs 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) the company is subject to an insolvency procedure, or (b) there is a serious possibility of the company becoming subject to an (4) Condition B is that the company is liable to income tax under paragraph 8. (5) Condition C is that the individual was responsible for the management of the company at the time the income tax first became chargeable and the individual knew (at that time) that the company was not entitled to the amount of the coronavirus support payment in relation to which the tax is chargeable. (6) Condition D is that there is a serious possibility that some or all of the income tax

SCHEDULE 16 – Taxation of coronavirus support payments Document 2023-04-25 This is the original version (as it was originally enacted). (7) For the purposes of sub-paragraph (5) the individual is responsible for the management of a company if the individual— (a) is a director or shadow director of the company, or (b) is concerned (whether directly or indirectly) in, or takes part in, the (8) A notice under sub-paragraph (2) 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) specify the amount of the income tax liability; (d) state the effect of the notice; (e) offer the individual a review of the decision to give the notice and explain the effect of paragraph 11 of Schedule 13 (right of review); (f) explain the effect of paragraph 13 of that Schedule (right of appeal). (9) An individual who is given a notice under sub-paragraph (2) is jointly and severally liable with the company (and with any other individual who is given such a notice) to the amount of the income tax liability specified under sub-paragraph (8)(c).
For provision under which the amount so specified may be varied, see— (a) paragraph 10 of Schedule 13 (modification etc), (b) paragraphs 11 and 12 of that Schedule (review), and (c) paragraphs 13 and 14 of that Schedule (appeal). (10) Paragraphs 10 to 15 and 17 of Schedule 13 apply to a notice under sub-paragraph (2) as they apply to a joint liability notice (see paragraph 1(2) of that Schedule) as if— (a) the references in those paragraphs to “relevant conditions” were to conditions A to D in this paragraph; (b) sub-paragraphs (3) and (4) of paragraph 10 were omitted (and references to sub-paragraph (3) in that paragraph were omitted); (c) in paragraph 10(6)(a), after “or (9)” there were inserted “or paragraph 15(8) (d) in paragraph 12(6)(b) after “5(9)” there were inserted “or paragraph 15(8) (11) Expressions used in this paragraph and in Schedule 13 have the same meaning in this paragraph as they have in that Schedule (subject to the modification made by