Finance Act 2022 PART 1 Income tax, corporation tax and capital gains tax Income tax charge, rates etc Income tax charge for tax year 2022-23 1 Income tax is charged for the tax year 2022-23. Main rates of income tax for tax year 2022-23 2 For the tax year 2022-23 the main rates of income tax are as follows— a the basic rate is 20%, b the higher rate is 40%, and c the additional rate is 45%. Default and savings rates of income tax for tax year 2022-23 3 1 For the tax year 2022-23 the default rates of income tax are as follows— a the default basic rate is 20%, b the default higher rate is 40%, and c the default additional rate is 45%. 2 For the tax year 2022-23 the savings rates of income tax are as follows— a the savings basic rate is 20%, b the savings higher rate is 40%, and c the savings additional rate is 45%. Increase in rates of tax on dividend income 4 1 In section 8 of ITA 2007 (which provides, among other things, for the dividend ordinary rate, dividend upper rate and dividend additional rate)— a in subsection (1) (the dividend ordinary rate), for “7.5%” substitute “8.75%” , b in subsection (2) (the dividend upper rate), for “32.5%” substitute “33.75%” , and c in subsection (3) (the dividend additional rate), for “38.1%” substitute “39.35%” . 2 In section 9(2) of ITA 2007 (the dividend trust rate), for “38.1%” substitute “39.35%” . 3 The amendments made by this section have effect for the tax year 2022-23 and subsequent tax years. Freezing starting rate limit for savings for tax year 2022-23 5 1 For the tax year 2022-23 the amount specified in section 12(3) of ITA 2007 (the starting rate limit for savings) is “£5,000”. 2 Accordingly, section 21 of that Act (indexation) does not apply in relation to the starting rate limit for savings for that tax year. Banking surcharge Rate of surcharge and surcharge allowance 6 1 In section 269DA(1) of CTA 2010 (surcharge on banking companies), for “8%” substitute “3%” . 2 In each of the following provisions of Part 7A of CTA 2010 (which make provision in relation to the surcharge allowance), for “£25,000,000” substitute “£100,000,000” — a section 269DE(3) and (4), b section 269DF(2) and (3), and c section 269DJ(3). 3 The amendments made by this section have effect for accounting periods beginning on or after 1 April 2023. 4 The remaining provisions of this section deal with a case where a company has an accounting period (a “straddling period”) beginning before 1 April 2023 and ending on or after that date. 5 For the purpose of calculating— a the amount of surcharge chargeable on a company for the straddling period, and b the sum chargeable on a company at step 5 in section 371BC(1) of TIOPA 2010 (and see, in particular, section 371BI of that Act) for the straddling period, so much of the straddling period as falls before 1 April 2023, and so much of it as falls on or after that date, are to be treated as separate accounting periods. 6 If it is necessary to apportion an amount for the straddling period to the two separate accounting periods, see section 1172 of CTA 2010 (which applies as a result of section 269DL of CTA 2010). Trading and property income Abolition of basis periods 7 Schedule 1 makes provision for and in connection with the abolition of basis periods under Chapter 15 of Part 2 of ITTOIA 2005. Profits of property businesses: late accounting date rules 8 1 Chapter 3 of Part 3 of ITTOIA 2005 (profits of property businesses: basic rules) is amended as follows. 2 In section 275 (apportionment etc of profits to tax year)— a in subsection (1), for “This section applies” substitute “This section and sections 275A to 275C apply” ; b at the end insert— 5 Sections 275A and 275B contain rules for the purpose of avoiding the need to apportion profits or losses under this section (and section 275C makes provision for the person carrying on the business to elect for those rules not to apply). 3 After section 275 insert— Rule if person starts to carry on business after 31 March 275A 1 This section applies if, in a tax year (“the relevant tax year”), the person carrying on the business— a starts to carry it on after 31 March, and b does not permanently cease to carry it on. 2 For the purposes of this Part— a the profits or losses of the business of the relevant tax year are treated as nil, and b the actual profits or losses of the business of the relevant tax year are treated as arising in the following tax year. Rule if there is a late accounting date 275B 1 This section applies if, in a tax year (“the relevant tax year”), the person carrying on the business— a does not start to carry it on or starts to carry it on before 1 April, b does not permanently cease to carry it on, and c has an accounting date that is 31 March or 1, 2, 3 or 4 April. 2 For the purposes of this Part— a the profits or losses of the business of the period beginning with the day after the accounting date and ending with 5 April in the relevant tax year are treated as nil, and b the actual profits or losses of the business of that period are treated as arising in the following tax year. 3 In this section, “ accounting date ” in relation to a tax year means— a the date in the tax year to which accounts are drawn up, or b if there are two or more such dates, the latest of them. Election to disapply late accounting date rules 275C 1 The person carrying on the business may make an election under this section. 2 If an election under this section has effect for a tax year, neither of sections 275A and 275B apply in relation to the business for that tax year. 3 An election under this section— a must be made on or before the first anniversary of the normal self-assessment filing date for the first tax year for which it is to have effect, and b has effect for that tax year and the four tax years following that tax year (subject to subsection (4) ). 4 If the person permanently ceases to carry on the business before the end of the last of the tax years mentioned in subsection (3)(b) , the election has effect for each tax year up to and including the tax year immediately before the tax year in which the person permanently ceases to carry on the business. 4 The amendments made by this section have effect for the tax year 2023-24 and subsequent tax years. Pensions Liability of scheme administrator for annual allowance charge 9 1 Part 4 of FA 2004 (pension schemes etc) is amended as follows. 2 In section 237B(5)(a) (liability of scheme administrator for annual allowance charge), for “not later than 31 July in the year following that in which the tax year ends” substitute “in accordance with the time limit in section 237BA” . 3 After that section insert— Time limit for notices under section 237B 237BA 1 This section specifies the time limit for an individual to give a notice under section 237B(3) in relation to a pension scheme for a tax year (see section 237B(5)(a)). 2 Except where subsection (5) applies, the individual must give the notice not later than 31 July in the year following the year in which the tax year ends. 3 Subsection (5) applies where— a at a relevant time, the scheme administrator gives the individual information about a change to the pension scheme input amount in relation to the pension scheme for the tax year, b the scheme administrator is required to give the individual the information by regulations under section 251, and c section 237B applies to the individual, in relation to the pension scheme and the tax year, as a result of that change. 4 In subsection (3), “ relevant time ” means a time falling— a on or after 2 May in the year following that in which the tax year in question ends, and b before the end of the period of 6 years beginning with the end of the tax year in question. 5 Where this subsection applies, the individual must give the notice before whichever is the earlier of the following— a the end of the period of 3 months beginning with the day on which the scheme administrator gives the individual the information described in subsection (3)(a) , and b the end of the period of 6 years beginning with the end of the tax year in question. 6 In this section, “ pension scheme input amount ” has the meaning given in section 237B(2). 4 In section 254 (accounting for tax by scheme administrators)— a in subsection (7A), for the words from “the period ending” to the end substitute the later of— a the period ending with 31 December in the year following that in which that tax year ended, and b the period following the period in which the scheme administrator receives the notice which gives rise to the liability, subject to subsections (7AA) and (7B). , b after that subsection insert— 7AA The tax described in subsection (7A) is to be taken for the purposes of subsection (2) to be charged in an earlier period if the scheme administrator makes an election to that effect in the return for the earlier period. , and c in subsection (7B)— i omit “But”, and ii after “(7A)” insert “or (7AA)” . Increase of normal minimum pension age 10 1 Part 4 of FA 2004 (pension schemes etc) is amended in accordance with subsections (2) to (6) . 2 In section 279(1) (other definitions), for the definition of “normal minimum pension age” substitute— “ normal minimum pension age ” means— in relation to, and to a member of, a pension scheme that is not a uniformed services pension scheme— before 6 April 2010, 50, on and after that date but before 6 April 2028, 55, and on and after 6 April 2028, 57, and in relation to, and to a member of, a uniformed services pension scheme— before 6 April 2010, 50, and on and after that date, 55, . 3 In that section, after subsection (3) insert— 4 In this section “ uniformed services pension scheme ” means a pension scheme that— a is established by or under an enactment or Royal Warrant for the benefit of persons described in subsection (5) (whether or not other persons may be members of such a scheme), or b is established solely for the receipt of additional voluntary contributions from members of a scheme falling within paragraph (a) , subject to any regulations made under subsection (6) . 5 Those persons are persons who are or were— a members of the naval, military or air forces of the Crown (including members of any reserve force); b members of a police force other than the Civil Nuclear Constabulary; c firefighters. 6 The Treasury may by regulations — a amend subsection (5) by adding to, varying or omitting descriptions of persons; b provide for a pension scheme not falling within subsection (4)(a) or (b) that is specified, or is of a specified description, to be treated as a uniformed services pension scheme; c provide for a pension scheme falling within subsection (4)(a) or (b) that is specified, or is of a specified description, to be treated as not being a uniformed services pension scheme. “ Specified ” means specified in the regulations. 7 Regulations under subsection (6) may make transitional provision and savings. 4 In Schedule 36 (pension schemes etc: transitional provisions and savings), in paragraph 21 (member’s protected pension age applies instead of normal minimum pension age)— a in sub-paragraph (1), for “or 23” substitute “, 23 or 23ZB ” ; b in sub-paragraph (2), for “and 23(8)” substitute “, 23(8) and 23ZB(7) ” . 5 In that Schedule, after paragraph 23ZA insert— Protected pension age: scheme rights existing before 4 November 2021 23ZB 1 This paragraph applies in relation to a relevant registered pension scheme and a member of the pension scheme if— a neither paragraph 22 nor 23 applies in relation to them, and b the entitlement condition or the block transfer condition is met in relation to the scheme and the member. 2 A registered pension scheme is “relevant” if it is not a uniformed services pension scheme (as defined in section 279(4)). 3 The entitlement condition is met if— a immediately before 4 November 2021 the member had an actual or prospective right under the pension scheme to any benefit from an age of less than 57, b the rules of the pension scheme on 11 February 2021 included provision conferring such a right on some or all of the persons who were then members of the pension scheme, and c the member either had such a right under the scheme on 11 February 2021 or would have had such a right had the member been a member of the scheme on 11 February 2021. 4 Where— a a recognised transfer is made on or after 4 November 2021 in execution of a request made before that date, and b that transfer would, if executed before that date, have resulted in the member having an actual or prospective right under a pension scheme to any benefit from the age of less than 57 immediately before that date, the member is, for the purposes of this paragraph, to be treated as having that right under that scheme at that time. 5 The block transfer condition is met if the member is a member of the pension scheme (the “transferee pension scheme”) as a result of— a a block transfer to the transferee pension scheme on or after 4 November 2021 from a pension scheme (the “original pension scheme”) where the entitlement condition is met in relation to the original scheme and the member, b a block transfer to the transferee pension scheme from a pension scheme (the “original pension scheme”) on or before 3 November 2021 where— i immediately before the transfer the member had an actual or prospective right under the original pension scheme to any benefit from an age of less than 57, ii the rules of the original pension scheme met paragraph (b) of the entitlement condition, and iii paragraph (c) of that condition is met in relation to the original pension scheme and the member, or c a block transfer to the transferee pension scheme from a pension scheme (the “transferor pension scheme”) that was a transferee pension scheme in relation to an original pension scheme or another transferor pension scheme by virtue of the previous application of paragraph (a) or (b) or the previous application (on one or more occasions) of this paragraph. 6 For the purposes of sub-paragraph (5) , a transfer is a “block transfer”, if it involves the transfer, in a single transaction, of all of the sums and assets held for the purposes of, or representing accrued rights under, the arrangements under a pension scheme which relate to the member and at least one other member of the scheme. 7 The member’s protected pension age is the higher of 55 and the age from which the member had an actual or prospective right to any benefit immediately before 4 November 2021 under— a in a case where the entitlement condition is met in relation to the member and the scheme, that scheme, or b in a case where the block transfer condition is met in relation to the member and the scheme and the entitlement condition is not so met, whichever of that scheme, the original scheme or the transferor scheme that the member was a member of at that time. 8 But this paragraph does not have effect so as to give the member a protected pension age of more than 55 at any time before 6 April 2028. 23ZC 1 This paragraph applies in relation to sums or assets of a relevant registered pension scheme and the member of the scheme to which those sums and assets relate if— a none of paragraphs 22, 23 or 23ZB apply in relation to the scheme and the member, and b those sums or assets were subject to a relevant transfer to the scheme. 2 Sums or assets relate to a member of a pension scheme if they are held by that scheme for the purposes of, or represent accrued rights under, an arrangement relating to the member under the pension scheme. 3 Sums or assets were subject to a relevant transfer to a relevant registered pension scheme if they were transferred to that scheme from another relevant registered pension scheme (“ the transferor scheme ”) as a result of a recognised transfer and, immediately before the transfer— a they were sums or assets held by the transferor scheme for the purposes of, or representing accrued rights under, an arrangement relating to a member of the transferor scheme, and b paragraph 23ZB applied in relation to the transferor scheme and that member or this paragraph applied to those sums or assets and that member as a result of a relevant transfer to the transferor scheme. 4 If this paragraph applies in relation to sums or assets (“transferred sums or assets”) and a member of a relevant registered pension scheme, this Part of this Act (except for section 218(6) and paragraph 19) applies in relation to— a the transferred sums or assets while held for the purposes of, or representing accrued rights under, an arrangement under the scheme, and b any sums or assets held for the purposes of, or representing accrued rights under, such an arrangement that arise, or (directly or indirectly) derive, from— i any of the transferred sums or assets, or ii sums or assets which so arise or derive, as if references to normal minimum pension age were to the member’s protected pension age under the first relevant registered pension scheme from which there was a relevant transfer of the sums or assets (see paragraph 23ZB(7) ). 5 In this paragraph “ relevant registered pension scheme ” means a pension scheme that is not a uniformed services pension scheme (as defined in section 279(4)). Lump sums before normal minimum pension age . 6 In that Schedule— a before paragraph 22 insert— Protected pension age: scheme rights existing before 6 April 2006 ; b in paragraph 23ZA(2), in the words before paragraph (a), after “This Part” insert “of this Act” . 7 In section 308C(9) of ITEPA 2003 (provision of pensions advice: limited exemption), for paragraph (a) substitute— a if any of paragraphs 22, 23, 23ZB or 23ZC of Schedule 36 to FA 2004 apply in relation to the employee, the lowest protected pension age that applies as a result of those paragraphs (in relation to the employee or, as the case may be, to sums or assets that relate to the employee), or . Public service pension schemes: rectification of unlawful discrimination 11 1 The Treasury may by regulations made by statutory instrument make provision of the kind mentioned in subsection (2) in consequence of, or otherwise in connection with, the discrimination rectification provisions. 2 The provision referred to in subsection (1) is provision modifying any relevant tax enactment in its application in relation to a relevant person. 3 In subsection (2) — “ relevant tax enactment ” means— an enactment contained in or made under Part 4 of FA 2004 (pension schemes etc), an enactment contained in or made under Schedule 15 to FA 2020 (tax relief for scheme payments etc), or an enactment contained in the Income Tax Acts, or relating to capital gains tax, that is not within paragraph (a) or (b); “ relevant person ” means a person— who has any remediable service in an employment or office, who has any rights or obligations under or in relation to a public service pension scheme that are determined by reference to, or are otherwise affected by, another person’s remediable service in an employment or office, or to whom, or by whom, any amounts are paid or payable under the discrimination rectification provisions. 4 Regulations under this section may— a make retrospective provision; b make different provision for different cases; c make consequential, incidental or supplemental provision. 5 A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons. 6 In this section “ the discrimination rectification provisions ” means— a Chapters 1 to 3 of Part 1 of PSPJOA 2022 and any provision made under those Chapters, b any provision made under Chapter 4 of that Part of that Act, and c any provision contained in scheme regulations that is made— i under provision contained in Part 1 of PSPJOA 2022, or ii under section 3(2)(c) of PSPA 2013 or section 3(2)(c) of PSPA(NI) 2014 (consequential etc provision in relation to Part 1 of PSPJOA 2022). 7 In this section— “ modifying ” includes disapplying or supplementing; “ PSPA 2013 ” means the Public Service Pensions Act 2013; “ PSPA(NI) 2014 ” means the Public Service Pensions Act (Northern Ireland) 2014 (c. 2 (N.I.)) ; “ PSPJOA 2022 ” means the Public Service Pensions and Judicial Offices Act 2022; “ public service pension scheme ” has the same meaning as in Part 4 of FA 2004 (see section 150 of that Act); “ remediable service ” means remediable service within the meaning of Chapter 1, 2 or 3 of Part 1 of PSPJOA 2022; “ scheme regulations ” means scheme regulations within the meaning of PSPA 2013 or PSPA(NI) 2014. Capital allowances Extension of temporary increase in annual investment allowance 12 1 In section 32(1) of FA 2019 (which increases the maximum amount of the annual investment allowance to £1,000,000 until 31 December 2021), for “the period of three years beginning with 1 January 2019” substitute “the period beginning with 1 January 2019 and ending with 31 March 2023” . 2 In consequence of the amendment made by subsection (1)— a in section 32(2) of that Act, for “1 January 2022” substitute “1 April 2023” , b in paragraph 2 of Schedule 13 to that Act and the heading before that paragraph, for “ 1 January 2022 ” (in each place) substitute “1 April 2023” , c in paragraph 3(3)(b) of that Schedule, for “the period of three years beginning with 1 January 2019” substitute “the period beginning with 1 January 2019 and ending with 31 March 2023” , and d in the heading for that Schedule, for “1 January 2022” substitute “1 April 2023” . Structures and buildings allowances: allowance statements 13 1 In section 270IA(4) of CAA 2001 (definition of “allowance statement”)— a in paragraph (b), for “purchase, and” substitute “acquisition,” , and b after paragraph (c) insert , and d where qualifying expenditure is incurred on the construction or acquisition of the building or structure after the date mentioned in paragraph (c), the date on which the expenditure is incurred. 2 The amendments made by this section have effect in relation to cases in which qualifying expenditure— a is incurred on the construction or acquisition of the building or structure on or after the day on which this Act is passed, or b in reliance on section 270BB(3) of CAA 2001, is treated as being so incurred on or after that day for the purposes of Part 2A of that Act. Reliefs for investments Qualifying asset holding companies 14 1 Schedule 2 makes provision in order to facilitate the use of certain companies that carry on an investment business by investment funds and other entities to hold investments for the purposes of those funds and entities. 2 Those companies are referred to in that Schedule as “qualifying asset holding companies” or “QAHCs”. Real Estate Investment Trusts 15 Schedule 3 makes changes to Part 12 of CTA 2010 in relation to— a the conditions for companies in relation to UK REITs in section 528 and 528A of that Act; b the requirement to prepare financial statements under section 532 of that Act; c the balance of business test in section 531 of that Act; d the meaning of “holder of excessive rights” in section 553 of that Act. Creative reliefs Film tax relief: films produced to be television programmes 16 1 Part 15 of CTA 2009 (film production) is amended as follows. 2 In section 1195 (availability and overview of film tax relief)— a in subsection (2)— i omit paragraph (a), and ii after that paragraph insert— aa section 1196A (intended release or broadcast), , and b in subsection (3A)— i omit “or” at the end of paragraph (a), and ii at the end insert , or c relief is available to the company under Chapter 3 of Part 15A (television tax relief) in respect of the expenditure. 3 Omit section 1196 (intended theatrical release). 4 After that section insert— Intended release or broadcast 1196A 1 The film must— a be intended for theatrical release, or b be a television programme intended for broadcast to the general public that meets conditions A to D in section 1216AB (meaning of “ relevant programme ”). 2 For this purpose— a “ theatrical release ” means exhibition to the paying public at the commercial cinema, b a film is not regarded as intended for theatrical release unless it is intended that a significant proportion of the earnings from the film should be obtained by such exhibition, and c “ television programme ” has the same meaning as in Part 15A (see section 1216AA). 3 Whether the condition in subsection (1) is met is determined for each accounting period of the company during which film-making activities are carried on in relation to the film, in accordance with the following rules. 4 If the condition in subsection (1) is met at the end of an accounting period, it is treated as having been met throughout that period (subject to subsection (5)(b) ). 5 If the condition in subsection (1) is not met at the end of an accounting period— a it is treated as having been not met throughout that period, and b it cannot be met in any subsequent accounting period. This does not affect any entitlement of the company to relief in an earlier accounting period for which the condition in subsection (1) was met. 5 The amendments made by this section have effect in relation to accounting periods ending on or after 1 April 2022, subject to subsection (6) . 6 The amendments made by this section do not have effect in relation to a film in relation to which film-making activities are carried on before 1 April 2022 if— a the principal photography of the film is completed before that date, or b film tax relief is not available in connection with the film for an accounting period ending before that date by virtue of section 1196(5) of CTA 2009 (films not intended for theatrical release at the end of an accounting period). Temporary increase in theatre tax credit 17 1 This section applies where— a a company’s activities in relation to a theatrical production are treated for corporation tax purposes as a trade separate from any other activities of the company by virtue of section 1217H of CTA 2009 (claim for additional deduction), and b the production phase for the theatrical production begins on or after 27 October 2021. 2 In relation to the separate theatrical trade and an accounting period beginning on or after 27 October 2021 and ending on or before 31 March 2025 , section 1217K(4) of CTA 2009 (amount of theatre tax credit) has effect as if— a in paragraph (a), for “25%” there were substituted “50%” , and b in paragraph (b), for “20%” there were substituted “45%” . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 For the purposes of Part 15C of CTA 2009 (theatrical productions), where the company has an accounting period which begins before, but ends on or after, 27 October 2021 or 1 April 2025 (a “straddling period”)— a so much of the straddling period as falls before the date in question, and so much of that period as falls on or after that date, are to be treated as separate accounting periods, and b any amounts brought into account for the purposes of calculating for corporation tax purposes the profits of a trade for a straddling period are to be apportioned to the two separate accounting periods on a just and reasonable basis. Theatrical productions tax relief 18 1 Part 15C of CTA 2009 (theatrical productions tax relief) is amended as follows. 2 In section 1217FA (meaning of “ theatrical production ”)— a in subsection (2)— i in the words before paragraph (a), for “other” substitute “relevant” , ii after paragraph (b) (but before the “and” at the end) insert— ba each performance is intended to be given to an audience of not less than five individuals, , b in subsection (3), omit “also”, and c after subsection (3) insert— 3A “ Relevant dramatic piece ” means a dramatic piece (other than a play, opera or musical) that tells a story or a number of related or unrelated stories. 3 In section 1217FB(1) (productions not regarded as theatrical), before paragraph (a) insert— za it is produced for training purposes, . 4 In section 1217GA (the commercial purpose condition), after subsection (2) insert— 2A A performance to members of the general public is not regarded as being to paying members unless— a it is separately ticketed, and b it is intended that a significant proportion of the earnings from the performance should be obtained by such ticketing. 2B For the purposes of subsection (2A), the fact that a ticket covers things reasonably incidental to the performance (such as, for example, a programme or food to be consumed during the course of the performance) does not prevent the performance from being separately ticketed, provided that the price paid can reasonably be apportioned between the performance and those other things. 2C A performance is only regarded as provided for educational purposes if it is provided mainly for the purpose of educating the audience. 5 In section 1217GC (meaning of “ core expenditure ”), at the end insert— 3 For the purposes of subsection (2)(a), expenditure by an educational body on teaching or training participants in a production is expenditure on a matter not directly involved in producing the production, except to the extent that the teaching or training takes place as part of a rehearsal for the production. 4 For the purposes of subsection (2)(b), a performance to the general public is not regarded as being to paying members unless it satisfies section 1217GA(2A). 5 In this section, “ educational body ” includes a body mentioned in section 71. 6 The amendments made by this section have effect in relation to a theatrical production only where the production phase begins on or after 1 April 2022. Temporary increase in orchestra tax credit 19 1 This section applies where— a a company’s activities in relation to a concert, or a series of concerts, are treated for corporation tax purposes as a trade separate from any other activities of the company by virtue of section 1217Q of CTA 2009 (separate orchestral trade), and b the production process for the concert, or series of concerts, starts on or after 27 October 2021. 2 In relation to the separate orchestral trade and an accounting period beginning on or after 27 October 2021 and ending on or before 31 March 2025 , section 1217RG(4) of CTA 2009 (amount of orchestra tax credit) has effect as if for “25%” there were substituted “50%” . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 For the purposes of Part 15D of CTA 2009 (orchestra tax relief), where the company has an accounting period which begins before, but ends on or after, 27 October 2021 or 1 April 2025 (a “straddling period”)— a so much of the straddling period as falls before the date in question, and so much of that period as falls on or after that date, are to be treated as separate accounting periods, and b any amounts brought into account for the purposes of calculating for corporation tax purposes the profits of a trade for a straddling period are to be apportioned to the two separate accounting periods on a just and reasonable basis. Orchestra tax relief 20 1 Part 15D of CTA 2009 (orchestra tax relief) is amended as follows. 2 In section 1217PA(2) (meaning of “ orchestral concert ”), before paragraph (a) insert— za it is produced for training purposes, . 3 In section 1217RA (companies qualifying for orchestra tax relief), after subsection (6) insert— 6A A concert performed before the public is not regarded as being performed before the paying public unless— a it is separately ticketed, and b it is intended that a significant proportion of the earnings from the concert should be obtained by such ticketing. 6B For the purposes of subsection (6A), the fact that a ticket covers things reasonably incidental to the concert (such as, for example, a programme or food to be consumed during the course of the performance) does not prevent the concert from being separately ticketed, provided that the price paid can reasonably be apportioned between the concert and those other things. 6C A concert is only regarded as performed for educational purposes if it is performed entirely or mainly for the purpose of educating the audience. 4 In section 1217RC (meaning of “ core expenditure ”), at the end insert— 4 For the purposes of subsection (3)(a), expenditure by an educational body on teaching or training participants in a concert or concerts is expenditure on a matter not directly involved with putting on the concert or concerts, except to the extent that the teaching or training takes place as part of a rehearsal for the concert or concerts. 5 In this section, “ educational body ” includes a body mentioned in section 71. 5 The amendments made by this section have effect in relation to a concert or series of concerts only where the production process starts on or after 1 April 2022. Temporary increase in museums and galleries exhibition tax credit 21 1 This section applies where— a a company’s activities in relation to the production of an exhibition are treated for corporation tax purposes as a trade separate from any other activities of the company by virtue of section 1218ZB of CTA 2009 (separate exhibition trade), and b the production stage for the exhibition begins on or after 27 October 2021. 2 In relation to the separate exhibition trade and an accounting period beginning on or after 27 October 2021 and ending on or before 31 March 2025 , section 1218ZCH(4) of CTA 2009 (amount of museums and galleries exhibition tax credit) has effect as if— a in paragraph (a), for “25%” there were substituted “50%” , and b in paragraph (b), for “20%” there were substituted “45%” . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 For the purposes of Part 15E of CTA 2009 (museums and galleries exhibition tax relief), where the company has an accounting period which begins before, but ends on or after, 27 October 2021 or 1 April 2025 (a “straddling period”)— a so much of the straddling period as falls before the date in question, and so much of that period as falls on or after that date, are to be treated as separate accounting periods, and b any amounts brought into account for the purposes of calculating for corporation tax purposes the profits of a trade for a straddling period are to be apportioned to the two separate accounting periods on a just and reasonable basis. Museums and galleries exhibition tax relief 22 1 Part 15E of CTA 2009 (museums and galleries exhibition tax relief) is amended as follows. 2 In section 1218ZAA (meaning of “ exhibition ”)— a at the end of subsection (1) insert “(but see subsections (2) to (3A))” , b in subsection (2), omit “But”, and c after subsection (3) insert— 3A A display of an object or work is not an exhibition to the extent that the public display of the object or work is subordinate to the use of the object or work (or of anything of which it forms part) for another purpose. 3 In section 1218ZAC(3)(b) (primary production company: responsibility for production of the exhibition at a venue), for “(at least) the first” substitute “one or more” . 4 In section 1218ZCA (companies qualifying for museums and galleries exhibition tax relief), after subsection (6) insert— 6A For the purposes of subsection (3), the fact that a person is responsible for an exhibition at a venue does not, by itself, mean that the person maintains a museum or gallery. 5 In section 1218ZCG(1)(c) of CTA 2009 (date before which qualifying expenditure must be incurred), for “2022” substitute “2024” . 6 The amendments made by subsections (2) to (4) have effect in relation to an exhibition only where the production stage begins on or after 1 April 2022. Capital gains tax: disposals of UK land etc Returns for disposals of UK land etc 23 1 Schedule 2 to FA 2019 (returns for disposals of UK land etc) is amended as follows. 2 In paragraph 3(1)(b) (obligation to deliver a return on or before the 30th day following completion), for “30th” substitute “60th” . 3 In paragraph 7 (calculation of capital gains tax notionally chargeable), after sub-paragraph (3) insert— 3A In the case of a disposal to which this Schedule applies as a result of paragraph 1(1)(b) where a proportion of the chargeable gain accruing on the disposal is not a residential property gain, ignore that proportion for the purposes of this paragraph. 4 The amendments made by this section have effect in relation to disposals which have a completion date on or after 27 October 2021. International matters Cross-border group relief 24 1 CTA 2010 is amended as follows. 2 In section 107 (restriction on losses etc surrenderable by non-UK resident)— a omit subsections (1A), (6A), (6B), (10) and (11); b in subsection (2) omit “In any other case,”; c in subsection (7) omit “or (6B)”. 3 In Part 5 (group relief), omit Chapter 3 (surrenders made by non-UK resident company resident or trading in the EEA). 4 In section 188BI (restriction on surrender of losses made when non-UK resident)— a omit subsections (2), (8), (9), (13) and (14); b in subsection (3) omit “In any other case,”; c in subsection (10) omit “or (9)”. 5 In Schedule 4— a Part 1 makes amendments consequential on this section, and b Part 2 makes provision as to commencement. Tonnage tax 25 1 Schedule 22 to FA 2000 (tonnage tax) is amended as follows. 2 In paragraph 10 (when election may be made)— a in sub-paragraph (2), at the end insert “, subject to sub-paragraph (3A)” , b in sub-paragraph (3), at the end insert “, subject to sub-paragraph (3A)” , and c after sub-paragraph (3) insert— 3A An election under sub-paragraph (2) or (3) may be made after the end of the period specified in that sub-paragraph with the consent of an officer of Revenue and Customs. 3B An officer of Revenue and Customs may not give consent for the purposes of sub-paragraph (3A) unless satisfied that— a there was a reasonable excuse for the failure to make the election before the end of the period specified in sub-paragraph (2) or (3) (as appropriate), and b after the end of that period, the consent was requested without delay or there is a reasonable excuse for any further delay. 3 In paragraph 13 (period for which election is in force)— a in sub-paragraph (1), for “ten years” substitute “the relevant number of years” , b in that sub-paragraph, omit the final sentence, and c after that sub-paragraph insert— 1A “ The relevant number of years ” means— a in relation to a tonnage tax election made before 1 April 2022, ten years; b in relation to a tonnage tax election made on or after 1 April 2022, eight years. 1B Sub-paragraph (1) is subject to the following exceptions. 4 In paragraph 15 (renewal election), for sub-paragraph (1) substitute— 1 A further tonnage tax election (a “renewal election”) may be made in respect of a single company or group if— a at the time it is made, a tonnage tax election is in force in respect of the company or group, or b it is a bridging renewal election (see paragraph 15ZA). 5 After paragraph 15 insert— Bridging renewal election 15ZA 1 A renewal election in respect of a single company or a group is a bridging renewal election if— a the last tonnage tax election in force in respect of the company or group (“the previous election”) expired (rather than ceasing to be in force for another reason), b in the period beginning with the expiry of the previous election and ending with the time from which the renewal election would have effect, nothing has happened which, if a tonnage tax election had been force in respect of the company or group, would have caused it to cease to be in force, and c the renewal election is made with the consent of an officer of Revenue and Customs. 2 An officer of Revenue and Customs may not give consent for the purposes of this paragraph unless satisfied that— a the consent was requested without delay after the company or (as appropriate) a company in the group first became aware that the previous election had expired, and b the conduct of the company or group in connection with tonnage tax has not at any time involved conduct the main purpose (or one of the main purposes) of which was the avoidance of tax. 3 Where a bridging renewal election is made, the previous election is to be treated as having remained in force until the time when the bridging renewal election takes effect. 6 In paragraph 19(3) (qualifying ships), omit paragraph (c). 7 Omit paragraphs 22A to 22F (flagging) (and the italic headings before each of those paragraphs). 8 In paragraph 43A(1)(a) (requirement to prove compliance with safety etc standards), for “any relevant register (see paragraph 22B(6A))” substitute “the United Kingdom” . 9 In paragraph 49(2)(b) (relevant shipping income: distributions of overseas shipping companies), omit “, Gibraltar or a member State” in both places. 10 In paragraph 147 (index of defined expressions)— a at the appropriate place insert— bridging renewal election paragraph 15ZA ; b omit the entry for “relevant register”. 11 The amendments made by this section come into force on 1 April 2022. 12 The amendment made by subsection (9) has effect for accounting periods beginning on or after 1 April 2022. Amendments of section 259GB of TIOPA 2010 26 1 Section 259GB of TIOPA 2010 (hybrid payee deduction/non-inclusion mismatches and their extent) is amended as follows. 2 In subsection (4A)— a in the words before paragraph (a), after “partnership” insert “or a relevant transparent entity” ; b in paragraph (a), after “partnership” insert “, or a member of the entity,” ; c in paragraph (b)— i in sub-paragraph (i), after “partnership” insert “or entity” ; ii in sub-paragraph (ii), after “partner”, in each place it occurs, insert “or member” . 3 After that subsection insert— 4AA Subsection (4AB) applies in relation to a payment or quasi-payment if— a one or more of the payees is a partnership or a relevant transparent entity, b there is a territory under the law of which an amount of ordinary income would arise, or would potentially arise, to a hybrid entity as a result of the circumstances giving rise to the relevant deduction if the entity were a person resident in that territory for the purposes of a tax charged under the law of that territory, and c that hybrid entity is not (ignoring subsection (4AB)(b) ) a payee. 4AB Where this subsection applies— a if any such hybrid entity is not either a partnership or a relevant transparent entity, subsection (4A) does not apply, or b otherwise, every such hybrid entity is to be treated as a payee for the purposes of determining, for the purposes of subsection (1)(b), if an excess arises by reason of one or more payees being hybrid entities. 4 In subsection (4B), for “subsection (4A)” substitute “subsections (4A) to (4AB) and (4C) ” . 5 After that subsection insert— 4C An entity is a “relevant transparent entity” if— a the entity is not a partnership, b the entity is legally constituted in a territory outside the United Kingdom, c all of the entity’s income or profits for the purposes of a tax charged under the law of that territory are treated (or would be if there were any) for the purposes of that tax as the income or profits of its members, and d any such tax that is, or that would be, charged on such a member that is resident for tax purposes in that territory is not charged at a nil rate. 4D For the purposes of subsection (4C) , a person is a “member” of an entity if the person is entitled to a proportion of the profits of the entity as a result of— a where the entity has share capital, holding shares forming part of that capital, or b where the entity does not have share capital, an entitlement similar to that which would be enjoyed if the entity had share capital and the person held shares forming part of that capital. 6 Section 259GB of TIOPA 2010 has effect, and is to be deemed always to have had effect, with the amendments made by this section. 7 But that section has effect — a in relation to payments made before the day on which this Act is passed, or b in relation to quasi-payments in relation to which the payment period had begun before that date, with the modifications set out in subsection (8) . 8 Those modifications are that subsections (4AA) and (4AB) of TIOPA 2010 (as inserted by subsection (3) ) have effect as if— a any reference in those subsections to a hybrid entity did not include a partnership (within the meaning given by section 259NE(4) of TIOPA 2010), b in paragraph (a) of subsection (4AA) , “a partnership or” were omitted, and c in paragraph (a) of subsection (4AB) — i “either a partnership or” were omitted, and ii after “apply” there were inserted “in relation to any payee that is a relevant transparent entity” . 9 A taxpayer may, in consequence of the amendments made by this section, make reasonable adjustments to claims, returns and elections made before the day on which this Act is passed. 10 Any such adjustments must be made on or before 31 December 2022 but, subject to that, the time limits otherwise applicable to amending or withdrawing the claim, return or election in question do not prevent an adjustment being made under subsection (9) . Application of section 124 of TIOPA 2010 in relation to diverted profits tax 27 1 In Part 3 of FA 2015 (diverted profits tax) before section 115 (but after the heading “Final provisions”) insert— Application of section 124 of TIOPA 2010 in relation to diverted profits tax 114A A solution or mutual agreement mentioned in subsection (1)(b) of section 124 of TIOPA 2010 (giving effect to solutions to cases and mutual agreements resolving cases) may include provision related to diverted profits tax (and, accordingly, the duty in subsection (2) of that section includes a duty to make any such adjustment as is appropriate in relation to diverted profits tax). 2 In section 124 of TIOPA 2010 (giving effect to solutions to cases and mutual agreements resolving cases), after subsection (4) insert— 5 See section 114A of FA 2015 for provision applying this section in relation to diverted profits tax. 3 The amendments made by this section apply in relation to solutions arrived at, or mutual agreements made, by the Commissioners on or after 27 October 2021. Diverted profits tax: closure notices etc 28 1 Part 3 of FA 2015 (diverted profits tax) is amended as follows. 2 In section 101A (amendment of CT return during review period: section 80 or 81 case)— a in subsection (2) (amendment during first 12 months of review period)— i omit “the first 12 months of”, and ii after “review period” insert “except the last 30 days of that period” ; b after subsection (2) insert— 3 Paragraph 31(3) of Schedule 18 to FA 1998 (amendment not to take effect during enquiry) does not apply in relation to an amendment made under subsection (2). 3 In section 101B (amendment of CT return during review period: section 86 case)— a in subsection (2) (amendment during first 12 months of review period)— i omit “the first 12 months of”, and ii after “review period” insert “except the last 30 days of that period” ; b after subsection (2) insert— 3 Paragraph 31(3) of Schedule 18 to FA 1998 (amendment not to take effect during enquiry) does not apply in relation to an amendment made under subsection (2). 4 After section 101B insert— Closure notices: rules during review period 101C 1 This section applies where— a a charging notice is issued to a company for an accounting period, and b the review period for that charging notice has not ended. 2 In relation to a relevant enquiry— a a final closure notice may not be given under paragraph 32 of Schedule 18 to FA 1998, and b a partial closure notice may not be given under that paragraph in relation to any matter which is, or could be, relevant to the charging notice mentioned in subsection (1)(a). 3 Accordingly, a relevant tribunal direction has no effect until the review period has ended. 4 In subsection (2), “ relevant enquiry ” means— a an enquiry into the company tax return for the accounting period mentioned in subsection (1)(a); b where the charging notice mentioned in subsection (1)(a) is issued to a company (“the foreign company”) for an accounting period by reason of section 86 applying in relation to it for that accounting period, an enquiry into any company tax return for the avoided PE (within the meaning of section 86) that may be amended by virtue of section 101B(2) so as to reduce the taxable diverted profits arising to the foreign company in that accounting period. 5 In subsection (3) “ relevant tribunal direction ” means a direction given— a under paragraph 33 of Schedule 18 to FA 1998, b in relation to a closure notice that may not be given by virtue of subsection (2), and c during the review period mentioned in subsection (1)(b) . 5 This section is treated as having come into force on 27 October 2021; and the new section 101C of FA 2015 inserted by subsection (4) has effect in relation to any relevant tribunal direction which is given on or after that date unless the application for the direction was made before 27 September 2021. Changes in accounting standards etc Insurance contracts: change in accounting standards 29 Schedule 5 makes provision in connection with International Financial Reporting Standard 17 (insurance contracts) issued by the International Accounting Standards Board. Deductions allowance in connection with onerous or impaired leases 30 1 Part 7ZA of CTA 2010 (restrictions on obtaining certain deductions) is amended in accordance with subsections (2) to (15) . 2 Section 269ZX (increase of deductions allowance where provision for onerous lease reversed) is amended in accordance with subsections (3) to (6) . 3 In the heading, for “where provision for onerous lease reversed” substitute “in connection with onerous or impaired leases” . 4 In subsection (1)(a), for “relevant reversal credit (see section 269ZY)” substitute “relevant credit” . 5 After subsection (1) insert— 1A In this section “ relevant credit ” means a relevant reversal credit, a relevant remeasurement credit or a relevant variable lease payment (see sections 269ZY and 269ZYZA). 6 In subsection (3)(a), for “relevant reversal credit” substitute “relevant credit (or, if there is more than one, the sum of the relevant credits)” . 7 Section 269ZY (meaning of “ relevant reversal credit ”) is amended in accordance with subsections (8) to (13) . 8 In subsection (1), for “a relevant onerous lease provision” substitute — a a relevant onerous lease provision (see subsection (2)), or b a relevant right-of-use asset impairment loss (see subsection (2A)). 9 In subsection (2)(b), for “accountancy” substitute “accounting” . 10 After subsection (2) insert— 2A A loss in the accounts of a company (“ C ”) is a “relevant right-of-use asset impairment loss” if— a the loss relates to an asset (a “right-of-use asset”) recognised in the accounts to reflect C’s right to use land as the tenant under a lease (where “L” is the landlord), b the loss is required to be recognised, for accounting purposes, because the right-of-use asset is impaired, and c the lease was entered into at arm’s length. 11 In subsection (3)— a after “provision” insert “or a relevant right-of-use asset impairment loss” , and b in paragraph (a), for “accountancy” substitute “accounting” . 12 In subsection (5), after “provision” insert “or a relevant right-of-use asset impairment loss” . 13 After subsection (9) insert— 9A For the purposes of subsection (2A)(b), where a company’s accounts previously included provision for an onerous lease, any right-of-use asset included in the accounts in respect of that lease is to be treated as impaired, unless there has been a material change of circumstances. 14 After section 269ZY insert— Other relevant credits 269ZYZA 1 For the purposes of section 269ZX a “relevant remeasurement credit” is a credit, or other income, brought into account in respect of a relevant remeasurement excess. 2 There is a “relevant remeasurement excess” where— a a company (“ C ”) is the tenant under a lease of land (and “L” is the landlord), b C’s accounts include a relevant right-of-use asset impairment loss in connection with the lease, c under an arrangement (“C’s arrangement”) made at arm’s length, C’s obligations under the lease are varied or cancelled, d as a result of C’s arrangement, C is required, for accounting purposes, to remeasure the lease liability in relation to the lease, e the remeasurement results in the lease liability being reduced by an amount which exceeds the amount of the right-of-use asset recognised in relation to the lease (taking account of any right-of-use asset impairment loss), and f the relevant requirements are met (see subsection (5) ). 3 For the purposes of section 269ZX a variable lease payment is “relevant” if it is a credit, or other income, brought into account in circumstances described in subsection (4) . 4 Those circumstances are where— a a company (“ C ”) is the tenant under a lease of land (and “L” is the landlord), b C’s accounts include a relevant right-of-use asset impairment loss in connection with the lease, c under an arrangement (“C’s arrangement”) made at arm’s length, there is a change in the payments that would have been payable by C under the lease on or before 30 June 2022, d the change would not have been made if it were not for coronavirus, e for accounting purposes, C opts to record the change by means of variable lease payments (rather than by remeasuring its lease liability in relation to the lease), and f the relevant requirements are met (see subsection (5) ). 5 For the purposes of subsections (2) and (4) , the relevant requirements are met if— a the requirements in section 269ZY(3)(b) and (c), or b the requirements in section 269ZY(3)(c) and (5)(a), (b), (d) and (e), are met in relation to C, L and C’s arrangement (as defined in subsection (2) or (4) , as appropriate). 6 In determining whether a company is required to account as described in subsection (2)(d) , ignore any option the company has to account as described in subsection (4)(e) . 7 The Treasury may by regulations substitute for the date for the time being specified in subsection (4)(c) such later date as they consider appropriate. 8 In this section— “ coronavirus ” means severe acute respiratory syndrome coronavirus 2; “ lease liability ”, in relation to a company and a lease, means a liability recognised in the company’s accounts to reflect the company’s obligations as tenant under the lease; “ right-of-use asset ”, in relation to a company and a lease, means an asset recognised in the company’s accounts to reflect the company’s right to use land as the tenant under the lease; “ relevant right-of-use impairment loss ” has the meaning given in section 269ZY(2A). 15 In section 269ZZ(1)(b) (company tax return to specify amount of deductions allowance), for “where provision for onerous lease reversed” substitute “in connection with onerous or impaired leases” . 16 In section 371SKA(3) of TIOPA 2010 (restrictions on certain deductions by controlled foreign companies: deductions allowances), for “where provision for onerous lease reversed” substitute “in connection with onerous or impaired leases” . 17 The amendments made by this section have effect in relation to accounting periods beginning on or after 1 January 2019. 18 An amendment of a company tax return falling within subsection (19) may be made at any time before 1 January 2023. 19 An amendment of a company tax return falls within this subsection to the extent that— a the amendment is made in consequence of the amendments of CTA 2010 made by this section, and b the time limits otherwise applicable would require the amendment to be made (or to have been made) by a date falling before 1 January 2023. Expanded dormant assets Provision in connection with the Dormant Assets Act 2022 31 Schedule 6 makes provision about the treatment of dormant assets in consequence of, or otherwise in connection with, the Dormant Assets Act 2022. PART 2 Residential property developer tax Introduction Introduction 32 This Part provides for a tax (to be known as “ residential property developer tax ” or “RPDT”) to be charged on residential property developer profits of a residential property developer arising in an accounting period. Charge to tax Charge to RPDT 33 1 A sum equal to 4% of the residential property developer profits for an accounting period of a residential property developer, so far as exceeding the developer’s allowance for the period, is to be charged on the developer as if it were an amount of corporation tax chargeable on it. 2 The allowance for the period is to be determined in accordance with section 43. 3 In accordance with section 45, the charging of RPDT as if it were an amount of corporation tax is to be taken as applying all enactments applying generally to corporation tax. Key concepts Meaning of “residential property developer” 34 1 A company is a residential property developer (“RP developer”) for the purposes of this Part if— a the company carries on residential property development activities, or b the company, or the company together with any other company which is a member of the same group as it, has or have a substantial interest in a relevant joint venture company. 2 See section 40 for the meaning of “relevant joint venture company” and the meaning of “substantial interest” in a relevant joint venture company. 3 A non-profit housing company is not an RP developer. 4 A company is a “ non-profit housing company ” for the purposes of this Part if it is— a a non-profit registered provider of social housing; b a registered social landlord under Part 1 of the Housing Act 1996 (registered social landlords in Wales); c a registered social landlord under Part 2 of the Housing (Scotland) Act 2010 (asp 17) ; d a registered housing association under Chapter 2 of Part 2 of the Housing (Northern Ireland) Order 1992 ( S.I. 1992/1725 (N.I.) ); e a wholly owned subsidiary of a company within paragraphs (a) to (d) . 5 The Treasury may by regulations make provision amending the definition of a non-profit housing company; and the regulations may make consequential provision amending this Part. Meaning of “residential property development activities” 35 1 Activities are residential property development activities (“RPD activities”) for the purposes of this Part if they are carried on by a company— a on, or in connection with, land in the United Kingdom in which the company has, or, where subsection (3) applies, had, an interest, and b for the purposes of, or in connection with, the development of residential property. 2 For the purposes of this Part activities that are carried on for the purposes of, or in connection with, the development of residential property include— a dealing in residential property; b designing it; c seeking planning permission in relation to it; d constructing or adapting it; e marketing it; f managing it; g any activities ancillary to any of these other activities. 3 This subsection applies where— a a company carries on activities within subsection (2)(b) , (c) or (d) , or within subsection (2)(g) so far as relating to those activities, in relation to land after ceasing to have an interest in the land, b the activities were planned or anticipated at the time the company ceased to have the interest in the land, and c the activities are not carried on solely in connection with areas of the land that do not constitute residential property. Residential property development activities: “interest in land” 36 1 A company has an interest in land for the purposes of this Part if— a the company or a related company has— i an estate, interest, right or power in or over the land, or ii the benefit of an obligation, restriction or condition affecting the value of an estate, interest, right or power in or over the land, other than an excluded interest, and b that estate, interest, right or power forms part of the company’s, or the related company’s, trading stock of a trade which includes the carrying on of activities for the purposes of, or in connection with, the development of residential property. 2 The following interests are “excluded interests”— a any interest or right held for securing the payment of money or the performance of any other obligation, and b a licence to use or occupy land. 3 But where a company (C) has an interest within subsection (2)(b), that interest is not an excluded interest if it is granted as a result of arrangements to which C or a related company is party and under which an estate in the land in question is to be conveyed by another party to the arrangements at the direction or request of C or a related company to any of— a a person who is not party to the arrangements, b C, or c a company related to C. 4 For the purposes of subsection (3) — a “ arrangements ” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable); b a conveyance by a person as nominee or bare trustee is to be treated as also being a conveyance by the person or persons for whom they are the nominee or trustee. 5 For the purposes of this section, a company (A) is related to another company (B) if— a A is a member of a group of which B is a member; b A is a relevant joint venture company and B, or B together with any other company which is a member of a group of which B is a member, has or have a substantial interest in A. 6 In this section “ trading stock ”, in relation to a trade, means an estate, interest, right or power in or over land— a which is disposed of in the ordinary course of the trade, or b which would be so disposed of on the completion of activities that are carried on for the purposes of, or in connection with, the development of residential property. 7 For the purposes of subsection (6), a licence falling within subsection (3) to use or occupy land is to be treated as being disposed of when an estate in the land is, or would be, conveyed under the arrangements as a result of which the licence is granted. 8 In this section, references to a disposal have the same meaning as in TCGA 1992 (see section 21 of that Act (assets and disposals)). 9 If a relevant joint venture company is related to a company and is a member of a group, the relevant joint venture company is treated for the purposes of this section— a as having any asset which any other member of the group has, and b as if anything done by or in relation to any other member of the group were done by or in relation to it. Residential property development activities: “residential property” 37 1 For the purposes of this Part “ residential property ” means— a a building or part of a building that is designed or adapted, or is in the process of being constructed or adapted, for use as a dwelling, b land that is or forms part of the garden or grounds of a building or part within paragraph (a) (including any building or structure on such land), c an interest in or right over land that subsists for the benefit of a building or part within paragraph (a) or of land within paragraph (b) , or d land in respect of which planning permission is being sought or has been granted so that it, or a building or part of a building on, interest in or right over it, will fall within any of paragraphs (a) to (c) . 2 A building is not within subsection (1)(a) if it is designed or adapted, or in the process of being constructed or adapted, for use primarily as— a a home or other institution providing residential accommodation for children; b a home or other institution providing residential accommodation with personal care for persons in need of personal care because of old age, disability, past or present dependence on alcohol or drugs or past or present mental disorder; c residential accommodation for members of the armed forces; d residential accommodation for members of the emergency services or persons working in a hospital; e a hospital or hospice; f temporary sheltered accommodation; g a prison or similar establishment; h a hotel or inn or similar establishment; i a monastery, nunnery or similar establishment; j student accommodation. 3 For the purposes of subsection (2)(j) use primarily as “ student accommodation ” means use by persons who will occupy the building wholly or mainly for undertaking a course of education (including school pupils) where it is reasonable to expect that the building will be occupied by such persons on at least 165 days a year. Meaning of “residential property developer profits or losses” 38 An RP developer’s residential property developer profits or losses (“RPD profits” or “RPD losses”) for an accounting period are calculated as follows (with a positive figure being RPD profits and a negative figure being RPD losses)— A + B - C - D - E where— “A” is the amount of the RP developer’s adjusted trading profits, or as the case may be, adjusted trading losses (expressed as a negative figure) for the accounting period (see section 39); “B” is the amount of any joint venture profits, or as the case may be, losses (expressed as a negative figure) that are attributable to the RP developer for the accounting period (see section 40); “C” is the amount of allowable RPDT loss relief which the RP developer is given for the accounting period (see Part 1 of Schedule 7); “D” is the amount of allowable RPDT group relief claimed by the RP developer for the accounting period (see Part 2 of Schedule 7); “E” is the amount of allowable RPDT group relief for carried-forward losses claimed by the RP developer for the accounting period (see Part 3 of Schedule 7). Profits and losses Adjusted trading profits and losses 39 1 For the purposes of this Part “adjusted trading profits” and “adjusted trading losses” mean the amounts that would be the RP developer’s trading profits or trading losses (as the case may be) for corporation tax purposes for an accounting period if the matters mentioned in subsection (2) were ignored. 2 The matters referred to in subsection (1) are— a so far as they are derived from or related to activities other than RPD activities— i profits and losses, and ii allowances or charges under CAA 2001; b profits of a charitable trade carried on by a charitable company (within the meanings of Part 11 of CTA 2010) so far as they are applied to the purposes of the charitable company only; c any amounts of loss relief, group relief or group relief for carried forward losses under Parts 4 to 5A of CTA 2010 that would otherwise be available to the RP developer; d any credits or debits that would otherwise be brought into account in relation to loan relationships as a result of Part 5 of CTA 2009; e any credits or debits that would otherwise be brought into account in accordance with Part 7 of CTA 2009 (derivative contracts). 3 For the purposes of subsection (2)(a) an RP developer may apportion profits and losses, or amounts of allowances or charges, derived from or related to RPD activities and other activities on a just and reasonable basis. Attributable joint venture profits and losses 40 1 For the purposes of section 38, the amount of any joint venture profits or losses attributable to an RP developer for an accounting period is determined in accordance with this section and— a joint venture profits means the RPD profits of a relevant joint venture company so far as they fall below the joint venture company’s allowance for that period (and, accordingly, the joint venture company is not charged to the tax in respect of them), and b joint venture losses means the RPD losses of a relevant joint venture company. 2 A company (“ C ”) is a relevant joint venture company for the purposes of this Part if— a C is an RP developer or a company which is a member of the same group as C is an RP developer, b C is not a 75% subsidiary of another company, and c there are five or fewer persons who between them— i hold 75% or more of C’s ordinary share capital, or ii in a case where C does not have ordinary share capital, are beneficially entitled to 75% or more of C’s profits available for distribution to equity holders of C. 3 In determining whether there are five or fewer such persons as are mentioned in subsection (2)(c) , members of a group are treated as if they were a single person. 4 Joint venture profits or losses are attributable to an RP developer if the RP developer, or the RP developer together with any other company which is member of the same group as the RP developer, has or have a substantial interest in the relevant joint venture company; but, in relation to the attribution of joint venture losses, this is subject to subsection (5) . 5 Joint venture losses are attributable to an RP developer only if the RP developer and the relevant joint venture company both so elect by notice to an officer of Revenue and Customs no later than the end of the period of 2 years beginning with the last day of the accounting period of the RP developer for which the losses are to be attributed. Any payment made in consequence of the election is (so far as not exceeding the amount attributed) not to be taken into account in determining the profits or losses of either company under section 39 (adjusted trading profits and losses). 6 The amount that is attributable to the RP developer is an amount equal to the percentage of the joint venture company’s profits that are available for distribution to equity holders and to which the RP developer is entitled. 7 If a relevant joint venture company’s accounting period does not coincide with the RP developer’s accounting period— a for the purposes of subsection (1)(a) , the joint venture company’s allowance for a period, and b the amount of joint venture profits or losses allocated to the RP developer under subsection (6) , are to be apportioned on a time basis according to the lengths of the periods falling in different accounting periods of the RP developer. 8 Where a relevant joint venture company is a member of a group, the references in subsection (1) to the RPD profits or losses of the relevant joint venture company are to the net amounts of RPD profits or losses of the members of the group. 9 For the purposes of subsection (8) , if the accounting period of a member of the group does not coincide with the relevant joint venture company’s accounting period, the net amount of its RPD profits or losses is to be apportioned on a time basis according to the lengths of the periods falling in different accounting periods of the relevant joint venture company. 10 Subsection (11) applies where joint venture company losses of a relevant joint venture company are attributed to an RP developer under this section. 11 For the purposes of this Part— a the amount that is available to be carried forward or surrendered by the relevant joint venture company under Schedule 7 is reduced by the amount that is attributed to the RP developer; b the amount that is available to be carried forward or surrendered by any other member of the same group under Schedule 7 is reduced by so much of the amount within paragraph (a) as is derived from the losses of that member. 12 For the purposes of this Part a company or companies has or have “a substantial interest” in a relevant joint venture company (“the JV”) if— a the company or companies hold at least 10% of the ordinary share capital of the JV, or b in a case where the JV does not have ordinary share capital, the company or companies are beneficially entitled to at least 10% of the profits of the JV that are available for distribution to equity holders of the JV. RPDT reliefs 41 In Schedule 7— a Part 1 makes provision about RPDT loss relief for adjusted trading losses; b Part 2 makes provision about RPDT group relief for adjusted trading losses; c Part 3 makes provision about RPDT group relief for carried-forward adjusted trading losses; d Part 4 makes supplementary provision in connection with Parts 2 and 3. Restrictions on RPDT reliefs 42 1 For the purposes of section 38, the amount that may be deducted in respect of C and E for an accounting period may not exceed the relevant maximum. 2 In a case where the calculation of A+B in section 38 gives an amount in respect of the RP developer that is less than or equal to the RP developer’s allowance, the relevant maximum is the amount that would reduce that amount to £0. 3 In a case where the calculation of A+B in section 38 gives an amount in respect of the RP developer that is greater than the RP developer’s allowance for the accounting period, the relevant maximum is calculated as follows— ( A + B - Z ) 2 - D where— “ A ”, “ B ” and “ D ” have the same meanings as in section 38; “Z” is the RP developer’s allowance for the accounting period. (If the formula gives a negative amount, the relevant maximum is £0.) 4 Subsection (5) applies where the effect of subsection (3) is to reduce the amount that would otherwise have been available to be deducted in respect of C and E in relation to an accounting period (“the total amount”). 5 For the purposes of this Part the amount that is available to be carried forward under Schedule 7 is— a where the total amount is greater than the RP developer’s allowance for the accounting period, an amount equal to the total amount minus that allowance, or b where the total amount is less than or equal to the RP developer’s allowance for the accounting period, £0. Allowance Allowance 43 1 A company within the charge to corporation tax— a is the allocating member of a group (“group G”) in respect of the allowance for an accounting period (“period A”) if it has been nominated to be the allocating member in accordance with regulations made under subsection (8) , and b if the company is an RP developer, may allocate some or all of the allowance for that period to itself. 2 The allowance for period A to be allocated to members of group G is— a where that period is 12 months, £25,000,000, and b where that period is less than 12 months, £25,000,000 reduced by a pro rata amount. 3 Where— a an RP developer is a member of group G for an accounting period (“period B”), b period B ends at the same time as, or during, period A, and c the RP developer is a member of group G at the end of period A, its allowance for period B is such amount (if any) as the allocating member of group G may allocate to it out of the allocating member’s allowance in respect of period A and as has not been allocated to another RP developer which is a member of group G. 4 Where— a an RP developer is a member of a group at any time in an accounting period, and b an allocating member of the group has not been nominated for that period, the RP developer’s allowance for that period is the amount determined in accordance with subsection (5) . 5 The amount is— a where the accounting period is 12 months, £25,000,000 divided by the number of companies within the charge to corporation tax that are members of the group at the end of the accounting period of the ultimate parent of the group in which the end of the accounting period of the RP developer falls, and b where the accounting period is less than 12 months, the sum determined under paragraph (a) reduced by a pro-rata amount. 6 In any case not falling within the preceding subsections, an RP developer’s allowance for an accounting period is— a where the accounting period is 12 months, £25,000,000, and b where the accounting period is less than 12 months, £25,000,000 reduced by a pro-rata amount. 7 A member of group G is entitled to an allowance in respect of period B only if— a an allowance allocation statement has been submitted on behalf of the group in accordance with regulations under subsection (8) , and b the allowance in question is for the amount allocated to it in that statement. 8 HMRC Commissioners may by regulations make provision for and about— a the nomination of a company in a group to be the allocating member of the group; b changing the allocating member of a group; c the submission by the allocating member to HMRC of an allowance allocation statement specifying how much of its allowance in respect of period A it has allocated to a member of the group in respect of period B. 9 Regulations under subsection (8) may, among other things, make provision about— a the contents of an allowance allocation statement; b when an allowance allocation statement is to be submitted; c when and how an allowance allocation statement may or must be amended on behalf of a group; d when and how an allowance allocation statement may be amended by an officer of Revenue and Customs; e the amendment of company tax returns in consequence of an allowance allocation statement or any amendment to such a statement (including provision altering time limits that would otherwise apply); f the consequences for any RP developer that is a member of a group of the group not having an allocating member. 10 This section is subject to section 44. Allowance: joint venture companies 44 1 This section applies for the purposes of calculating the allowance of a relevant joint venture company for an accounting period where an excluded body (“ B ”) has a substantial interest in the relevant joint venture company. 2 The relevant joint venture company’s allowance for an accounting period that is the same as or overlaps with a specific financial year (“year X”) is— a the amount that would otherwise have been the relevant joint venture company’s allowance for that accounting period in accordance with section 43 (6) , reduced by the relevant percentage, or b where B allocates an allowable amount to the relevant joint venture company out of B’s notional allowance for year X, the sum of that amount and the amount calculated in accordance with paragraph (a) . 3 For the purposes of subsection (2) — a the relevant percentage is the percentage of the relevant joint venture company’s profits that are available for distribution to equity holders and to which B is entitled; b B’s notional allowance for year X is £25,000,000; c an amount is allowable if it does not exceed— A 365 × P where— “A” is the number of days in the relevant joint venture company’s accounting period that fall within year X; “P” is an amount equal to the relevant percentage of B’s notional allowance. 4 The relevant joint venture company’s allowance is determined in accordance with subsection (2)(b) only if— a B has submitted a notional allowance statement in respect of the relevant joint venture company in accordance with regulations under subsection (5) , and b the allowance in question is for an amount calculated in accordance with subsection (2)(b) , on the basis of that notional allowance statement. 5 HMRC Commissioners may by regulations make provision for and about— a the disapplication of any provision of this section in circumstances set out in the regulations; b the submission by B to HMRC of a notional allowance statement specifying how much of its notional allowance in respect of year X it has allocated to a relevant joint venture company in respect of any of the company’s accounting periods that end during or at the same time as year X. 6 Regulations made in reliance on subsection (5)(b) may, among other things, make provision about— a the contents of a notional allowance statement; b when a notional allowance statement is to be submitted; c when and how the notional allowance statement may or must be amended by B; d the nomination by B of any other member of a group of which it is a member to carry out obligations imposed by or under this section on B; e when and how a notional allowance statement may be amended by an officer of Revenue and Customs; f the amendment of company tax returns in consequence of a notional allowance statement or any amendment to such a statement (including provision altering time limits that would otherwise apply). 7 Where B is a member of a group, the references to “B” in the following provisions are to be read as references to the ultimate parent of the group— a subsection (2)(b) ; b subsection (3)(b) ; c the definition of “P” in subsection (3)(c) ; d subsection (4)(a) . 8 The power to make regulations under subsection (5) is exercisable in relation to the ultimate parent of a group of which B is a member as it is exercisable in relation to B. 9 In this section an “ excluded body ” means a company that is not liable to RPDT otherwise than as a result of being a non-profit housing company. Application of corporation tax provisions, management etc Application of corporation tax provisions and management of RPDT 45 1 The provisions of section 33 (1) relating to the charging of a sum as if it were an amount of corporation tax is to be taken as applying all enactments applying generally to corporation tax. 2 But this is subject to— a the provisions of the Corporation Tax Acts, b any necessary modifications, and c subsection (5) . 3 The enactments mentioned in subsection (1) include— a those relating to returns of information and the supply of accounts, statements and reports, b those relating to the assessing, collecting and receiving of corporation tax, c those conferring or regulating a right of appeal, and d those concerning administration, penalties, interest on unpaid tax and priority of tax in cases of insolvency under the law of any part of the United Kingdom. 4 Accordingly, TMA 1970 is to have effect as if any reference to corporation tax included a sum chargeable under section 33 (1) as if it were an amount of corporation tax (but this does not limit subsections (1) to (3) ). 5 In the Corporation Tax (Treatment of Unrelieved Surplus Advance Corporation Tax) Regulations 1999 ( SI 1999/358 ) or any further regulations made under section 32 of FA 1998 (unrelieved surplus advance corporation tax)— a references to corporation tax do not include a sum chargeable on a company under section 33 (1) as if it were corporation tax, and b references to profits charged to corporation tax do not include RPD profits. 6 Schedule 8 makes further provision about the management of RPDT. Requirement to provide information about payments 46 1 This section applies if— a a sum is chargeable on an RP developer under section 33, for an accounting period as if it were an amount of corporation tax, and b a payment is made (whether or not by the RP developer) that is wholly or partly in respect of that sum. 2 The responsible company must give notice to an officer of Revenue and Customs, on or before the date the payment is made, of the amount of the payment that is in respect of that sum. 3 The “responsible company” is— a in a case where the RP developer is party to relevant group payment arrangements, the company that is, under those arrangements, to discharge the liability of the RP developer to pay RPDT for the accounting period; b in any other case, the RP developer. 4 “ Relevant group payment arrangements ” means arrangements under section 59F(1) of TMA 1970 (arrangements for paying corporation tax on behalf of group members) that relate to the accounting period. 5 The requirement in subsection (2) is to be treated, for the purposes of Part 7 of Schedule 36 to FA 2008 (information and inspection powers: penalties), as a requirement in an information notice. 6 This section is subject to any provision to the contrary in regulations under section 59E of TMA 1970 (further provision as to when corporation tax is due and payable). Non-profit housing companies: exit charge 47 1 This section applies where— a a company (“ A ”) ceases to be a non-profit housing company by virtue of any of paragraphs (a) to (d) of section 34 (4) , and b not all of the assets of the company have been distributed to another non-profit housing company or companies before the end of the relevant period. 2 For the purposes of subsection (1) the relevant period is the period beginning with the day on which A ceases to be a non-profit housing company and ending on— a the first anniversary of the last day of the accounting period in which A ceased to be a non-profit housing company, or b such later day as an officer of Revenue and Customs may allow. 3 This section also applies where— a a non-profit housing company (“ A ”) ceases to be a non-profit housing company by virtue of section 34 (4)(e) when it ceases to be a wholly owned subsidiary of another non-profit housing company (“ B ”), and b an interest in A is acquired by a company that— i controls, or is under the same control as, B, and ii is not a non-profit housing company. 4 For the purposes of RPDT— a A is not to be treated as a non-profit housing company for the accounting period (“the exit period”) in which it ceased to be a non-profit housing company or a wholly owned subsidiary of another non-profit housing company, b A’s RPD profits for the exit period are the total of what would have been A’s, and (subject to subsection (5)(b) ) any of A’s wholly owned subsidiaries’, chargeable amounts for accounting periods ending in the period (“the exit charge period”)— i beginning with the day (“the starting day”) four years before the day on which A ceased to be a non-profit housing company or a wholly owned subsidiary of another non-profit housing company, and ii ending with the last day of the exit period, if, throughout the exit charge period, A had not been a non-profit housing company, and c A’s allowance in respect of the exit period is £0. 5 For the purposes of subsection (4)(b) — a “ chargeable amount ” means the amount of RPD profits in excess of what would have been A’s, or A’s wholly owned subsidiaries’, allowance, but b RPD profits of any of A’s wholly owned subsidiaries (“subsidiary profits”) are not to be taken into account for the purposes of calculating A’s chargeable amount so far as those subsidiary profits are separately charged to RPDT as a result of this section applying by virtue of subsection (3) . 6 Where A, or any of A’s wholly owned subsidiaries, has an accounting period beginning before the starting day and ending on or after that date (“the straddling period”), the following subsections apply for the purposes of subsection (4)(b) . 7 For the purposes of determining what would have been A’s, or A’s wholly owned subsidiaries’, RPD profits for the straddling period and, if so, in what amount— a so much of the straddling period as falls before the starting day, and b so much of that period as falls on or after that date, are to be treated as separate accounting periods. 8 If it is necessary to apportion an amount for the straddling period to the two separate accounting periods, see section 1172 of CTA 2010 (which applies as a result of section 45). Miscellaneous Groups 48 1 In this Part, other than in Schedule 7, “ group ” means two or more companies which together meet the following condition. 2 The condition is that one of the companies is— a the ultimate parent of each of the other companies, and b is not the ultimate parent of any other company. 3 A company (“ A ”) is the “ultimate parent” of another company (“ B ”) if— a A is the parent of B, and b no company is the parent of both A and B. 4 A company (“ A ”) is the “parent” of another company (“ B ”) if— a B is a 75% subsidiary of A, b A is beneficially entitled to at least 75% of any profits available for distribution to equity holders of B, or c A would be beneficially entitled to at least 75% of any assets of B available for distribution to its equity holders on a winding up. Miscellaneous provision 49 Schedule 9 makes miscellaneous provision in connection with RPDT. Interpretation etc 50 1 In this Part— “adjusted trading losses” and “adjusted trading profits” have the meaning given by section 39; “ control ” has the same meaning as in section 1124 of CTA 2010 (“control”); “ development of residential property ”, in relation to any activities, has the meaning given by section 35; “group”, and terms related to groups, have the meanings given by section 48; “ HMRC ” means Her Majesty’s Revenue and Customs; “ HMRC Commissioners ” means the Commissioners for Her Majesty’s Revenue and Customs; “ interest in land ”, in relation to an RP developer, has the meaning given by section 36; “ non-profit housing company ” has the meaning given by section 34; “ relevant joint venture company ” has the meaning given by section 40; “ residential property ” has the meaning given by section 37; “residential property developer” or “ RP developer ” has the meaning given by section 34; “residential property developer losses” or “ RPD losses ” has the meaning given by section 38; “residential property developer profits” or “ RPD profits ” has the meaning given by section 38; “residential property development activities” or “ RPD activities ” has the meaning given by section 35; “ RPDT ” has the meaning given by section 32; “ substantial interest ”, in relation to a relevant joint venture company, has the meaning given by section 40; “ ultimate parent ” has the meaning given by section 48; “ wholly owned subsidiary ” has the same meaning as in section 1159 of the Companies Act 2006 (meaning of “subsidiary” etc). 2 Chapter 6 of Part 5 of CTA 2010 (equity holders and profits or assets available for distribution), other than sections 169 to 182, applies for the purposes of references in this Part to equity holders and beneficial entitlement to assets or profits of a company available for distribution to its equity holders, subject to subsection (3) . 3 In applying Chapter 6 of Part 5 (other than sections 169 to 182) and Chapter 3 of Part 24 of CTA 2010 for the purposes mentioned in subsection (2) , they are to be read with all modifications necessary to ensure that— a they apply to a company which does not have share capital, and to holders of corresponding ordinary holdings in such a company, in a way which corresponds to the way they apply to companies with ordinary share capital and holders of ordinary shares in such companies, b they apply to a company which is an unincorporated association in a way which corresponds to the way they apply to companies which are bodies corporate, c they apply in relation to ownership through an entity (other than a company), or any trust or other arrangement, in a way which corresponds to the way they apply to ownership through a company, and d for the purposes of achieving paragraphs (a) to (c) , profits or assets are attributed to holders of corresponding ordinary holdings in unincorporated associations, entities, trusts or other arrangements in a manner which corresponds to the way profits or assets are attributed to holders of ordinary shares in a company which is a body corporate. 4 In subsection (3) “corresponding ordinary holding” in an unincorporated association, entity, trust or other arrangement means a holding or interest which provides the holder with economic rights corresponding to those provided by a holding of ordinary shares in a body corporate. 5 Chapter 3 of Part 24 of CTA 2010 (subsidiaries) applies for the purposes of references in this Part to subsidiaries, subject to subsection (6) . 6 In applying Chapter 3 of Part 24 of CTA 2010 for the purposes mentioned in subsection (5) — a share capital of a registered society is to be treated as if it were ordinary share capital, and b a company (“the shareholder“) that directly owns shares in another company is to be treated as not owning those shares if a profit on their sale would be a trading receipt of the shareholder. Commencement and transitional provisions Commencement 51 1 This Part has effect in relation to accounting periods beginning on or after 1 April 2022. 2 If an RP developer has an accounting period beginning before 1 April 2022 and ending on or after that date (“the straddling period”), for the purpose of determining whether RPDT is chargeable on the RP developer for the straddling period and, if so, in what amount— a so much of the straddling period as falls before 1 April 2022, and b so much of that period as falls on or after that date, are to be treated as separate accounting periods. 3 If it is necessary to apportion an amount for the straddling period to the two separate accounting periods, see section 1172 of CTA 2010 (which applies as a result of section 45). 4 If— a RPDT is chargeable on an RP developer for the straddling period, and b under the Instalment Payment Regulations one or more instalment payments in respect of the total liability of the RP developer for that period are treated as becoming due and payable before 1 April 2022 (“pre-commencement instalments”), the RPDT chargeable for that period is to be ignored for the purposes of determining the amount of any pre-commencement instalment. 5 The first instalment in respect of that liability which is treated as becoming due and payable on or after 1 April 2022 is to be increased by the following amount, namely the difference between— a the aggregate amount of the pre-commencement instalments determined in accordance with subsection (4) , and b the aggregate amount of those instalments determined ignoring that subsection (and so taking into account the tax chargeable on the RP developer for the straddling period). 6 In the Instalment Payment Regulations— a in regulations 6(1)(a), 7(2), 8(1)(a) and (2)(a), 9(5), 10(1), 11(1) and 13, references to those Regulations are to be read as including a reference to subsections (4) and (5) (and in regulation 7(2) “the regulation in question”, and in regulation 8(2) “that regulation”, are to be read accordingly), and b in regulation 9(3), the reference to those Regulations is to be read as including a reference to those subsections. 7 In section 59D of TMA 1970 (general rule as to when corporation tax is due and payable), in subsection (5), the reference to section 59E of that Act is to be read as including a reference to subsections (4) and (5) of this section. 8 In this section “ the Instalment Payment Regulations ” means the Corporation Tax (Instalment Payments) Regulations 1998 ( S.I. 1998/3175 ). Anti-forestalling: accelerated profits 52 1 This section applies if— a trading profits derived from RPD activities arise to an RP developer in an accounting period ending before 1 April 2022, b the profits arise in that accounting period instead of an accounting period ending on or after that date as a result of arrangements entered into on or after 29 April 2021, and c the main purpose, or one of the main purposes, of the arrangements is to secure that, but for this section, the profits would not be taken into account for the purposes of section 38. 2 The profits are to be taken into account for the purposes of that section as if they arose to the RP developer in the RP developer’s first accounting period ending on or after 1 April 2022. 3 In this section “ arrangements ” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable), but does not include a change in the RP developer’s accounting date for the purposes of section 10 of CTA 2009 (end of accounting period). PART 3 Economic crime (anti-money laundering) levy Economic crime (anti-money laundering) levy 53 1 A tax called the “ economic crime (anti-money laundering) levy ” (referred to in this Part as “ the levy ”) is charged in accordance with this Part. 2 The appropriate collection authority is responsible for the collection and management of the levy. 3 In this Part, “ appropriate collection authority ” means— a in the case of a person for whom the Financial Conduct Authority is a supervisory authority, the Financial Conduct Authority; b in the case of a person for whom the Gambling Commission is a supervisory authority, the Gambling Commission; c in any other case, the HMRC Commissioners. Charge to the levy 54 1 The levy is charged for a financial year if— a a person carries on a regulated business at any point during the financial year, and b the person’s UK revenue for the financial year is medium, large or very large (see section 55). 2 The amount charged for a financial year is— a in the case of a person whose UK revenue for the financial year is medium, £10,000; b in the case of a person whose UK revenue for the financial year is large, £36,000; c in the case of a person whose UK revenue for the financial year is very large, £500,000 . 3 The amounts specified in subsection (2) are to be proportionately reduced in the case of a person who carries on a regulated business only for part of the financial year. 4 No amount of payment made in respect of the levy is to be taken into account in calculating profits or losses for the purposes of income tax or corporation tax. UK revenue: amount 55 1 A person’s UK revenue— a is medium for a financial year if the person’s UK revenue for the relevant accounting period is more than £10.2 million but not more than £36 million; b is large for a financial year if the person’s UK revenue for the relevant accounting period is more than £36 million but not more than £1 billion; c is very large for a financial year if the person’s UK revenue for the relevant accounting period is more than £1 billion. 2 To determine the “relevant accounting period”, see section 56. 3 The sums in subsection (1) are to be proportionately adjusted if the relevant accounting period of the person is a period other than 12 months. Relevant accounting period 56 1 This section applies for the purposes of section 55. 2 The “ relevant accounting period ”, in relation to the UK revenue of a person for a financial year, is the person’s accounting period that ends in the financial year. 3 For this purpose, an accounting period that ends at the same time as the end of the financial year is an accounting period ending in that year. 4 Where there is more than one accounting period of a person ending in a financial year— a the person’s UK revenue for the relevant accounting period is to be taken as the sum of the UK revenue for each of the accounting periods ending in the financial year, and b the length of the relevant accounting period is to be taken as the combined length of those periods. 5 Where there is no accounting period of a person ending in a financial year— a in the case of a person who has an accounting period that ends during the period of 3 months beginning with the end of the financial year, the relevant accounting period is to be taken as that period; b in any other case, the relevant accounting period is to be taken as the person’s accounting period ending last before the start of the financial year. 6 If there is no relevant accounting period of a person capable of being determined in accordance with this section, the UK revenue amounts in section 55 are to be determined for that person by reference to the amount of the person’s UK revenue that, on a just and reasonable apportionment, is attributable to the financial year. UK revenue: determination 57 1 This section applies for the purposes of determining a person’s UK revenue in a relevant accounting period. 2 In the case of a UK resident person, the person’s UK revenue is all of that person’s revenue after deducting so much of their revenue as, on a just and reasonable apportionment, is attributable to the activities of any permanent establishment of the person in a territory outside the United Kingdom. 3 In the case of a non-UK resident person, the person’s UK revenue is so much of the person’s revenue as, on a just and reasonable apportionment, is attributable to activities of any permanent establishment of the person in the United Kingdom (subject to subsections (4) and (5) ). 4 Subsection (5) applies to a non-UK resident person who, by virtue of regulation 9(4) of the Money Laundering Regulations (casinos which provide facilities for remote gambling), is regarded for the purpose of those regulations as carrying on business in the United Kingdom. 5 The person’s UK revenue also includes so much of the person’s revenue as— a is attributable, on a just and reasonable apportionment, to activities in respect of which a charge to remote gaming duty arises (see section 155 of FA 2014), and b is not included in the person’s UK revenue by virtue of subsection (3) . 6 References in this section to a “permanent establishment” of a person are to be read— a in the case of a company, in accordance with Chapter 2 of Part 24 of CTA 2010; b in any other case, in accordance with that Chapter but as if the person were a company. 7 References in this Part to a person’s “revenue” in a relevant accounting period are (subject to subsection (9)) references to— a the person’s turnover for that period, and b any other amounts (not included within turnover) which, in accordance with generally accepted accounting practice (“ GAAP ”), are recognised as revenue in the person’s profit and loss account or income statement for the accounting period. 8 Where a person does not draw up accounts for a relevant accounting period in accordance with GAAP, the reference in subsection (7)(b) to any amounts which in accordance with GAAP are recognised as revenue in the person’s profit and loss account or income statement for the accounting period is to be read as a reference to any amounts which would be so recognised if the person had drawn up such accounts for that accounting period. 9 The following are to be ignored in determining a person’s revenue for the purposes of this Part— a a distribution within the meaning of CTA 2010 that— i is received from a company that is connected with that person in accordance with sections 1122 and 1123 of CTA 2010, and ii is not made in respect of shares or other assets, profits on the sale of which would be a trading receipt of that person; b such other descriptions of revenue as may be specified in regulations made by the Treasury. Assessment, payment, collection and recovery 58 1 The levy is recoverable as a debt due to the Crown. 2 The Treasury may by regulations— a make provision about the assessment, payment and collection of the levy; b make further provision about the recovery of the levy (in addition to subsection (1)). 3 Regulations under subsection (2) may— a make provision about the times at which payments are to be made and the methods of payment; b require persons liable to pay the levy to notify the appropriate collection authority of that liability and to make returns; c make provision for determining, in relation to persons for whom there is more than one appropriate collection authority with power to exercise functions under this Part, the authority that is to exercise those functions; d make provision in relation to a business which is carried on by a partnership or by another unincorporated body specifying by what person anything required to be done in connection with the levy is to be done; e make provision for interest (at a rate specified in, or determined under, the regulations) to be charged in respect of unpaid amounts of the levy; f permit or require persons liable to pay the levy to supply the appropriate collection authority such information or documents as the authority may request in connection with the levy; g require bodies (other than appropriate collection authorities) that are supervisory authorities to co-operate with appropriate collection authorities in the collection of the levy or otherwise in matters relating to the levy; h make provision for the making of decisions by appropriate collection authorities as to any matter required to be decided for the purposes of the regulations; i make provision about the form, manner and content of notifications or any other notices or communications with appropriate collection authorities in connection with the levy; j make provision for the review of, and a right of appeal to the tribunal against, specified decisions of appropriate collection authorities in connection with the levy; k make provision about the enforcement of the levy (including provision for the imposition of civil penalties or other sanctions for a failure to comply with a requirement imposed by or under this Part); l make provision about the recovery of overpayments of the levy; m make provision in relation to cases where an individual liable to pay the levy dies or becomes incapacitated, or where a person (whether or not an individual) is subject to an insolvency procedure. 4 Provision under subsection (3)(b) may include provision about— a the periods by reference to which returns are to be made; b the information to be included in returns; c the timing for making returns; d the form of, and the method of making, returns. 5 Provision under subsection (3)(i) may include provision about communications in electronic form. 6 Regulations under subsection (2) may confer functions on— a the HMRC Commissioners or anyone acting on their behalf, or b another appropriate collection authority or anyone acting on its behalf. 7 Regulations made by virtue of subsection (6)(a) may in particular provide— a for functions in relation to the enforcement of the levy to be functions of the HMRC Commissioners in cases where another appropriate collection authority is otherwise responsible for the collection and management of the levy, and b for the HMRC Commissioners to be responsible for the collection and management of the levy, in place of the other appropriate collection authority, in the cases where it exercises such functions, and section 53(2) and (3) is to be read as subject to regulations made by virtue of this subsection. Payments into Consolidated Fund 59 1 Subject to subsection (2), money received by the Financial Conduct Authority and the Gambling Commission in the exercise of functions under this Part as appropriate collection authorities is to be paid into the Consolidated Fund. 2 Before making payment under subsection (1) a deduction may be made for reasonable administrative costs associated with the exercise of such functions. 3 See further section 44 of CRCA 2005 for payments of money by the HMRC Commissioners into the Consolidated Fund. Application to partnerships 60 1 This section applies where a person liable to pay the levy for a financial year is a partnership. 2 In the case of a partnership that is a body of persons forming a legal person that is distinct from themselves, the person liable to pay the levy is that legal person. 3 In the case of any other partnership— a the person liable to pay the levy is the responsible partners, and b the liability of the responsible partners to do so is joint and several. 4 The references in subsection (3) to “the responsible partners” are to all the persons who are members of the partnership at any time during the financial year. 5 A partnership is to be regarded for the purposes of this Part as continuing to be the same partnership regardless of a change in membership, provided that a person who was a member before the change remains a member after the change. Collection of information 61 In Schedule 36 to FA 2008 (powers to obtain information etc), in paragraph 63(1) (meaning of “ tax ”), after paragraph (iza) insert— izb economic crime (anti-money laundering) levy, . Disclosure of information 62 1 An appropriate collection authority may disclose information obtained or held by them for, or in connection with, their functions under this Part to— a another appropriate collection authority; b a supervisory authority that is not an appropriate collection authority; c the Secretary of State; d the Treasury; e an authorised officer of a person listed in paragraphs (a) to (d) . 2 Information disclosed by an appropriate collection authority in reliance on subsection (1) may not be further disclosed without the consent of that appropriate collection authority (which may be general or specific). 3 A supervisory authority that is not an appropriate collection authority may disclose information obtained or held by them to an appropriate collection authority or to an authorised officer of an appropriate collection authority. 4 Information may only be disclosed under this section for the purpose of assisting the person to whom it is disclosed to carry out functions in relation to the levy. 5 Section 19 of CRCA 2005 (offence of wrongful disclosure) applies in relation to a disclosure of information in contravention of subsection (2) which relates to a person whose identify is specified in, or can be deduced from, the disclosure as it applies in relation to the disclosure of information in contravention of section 20(9) of that Act. 6 No charge may be made for any disclosure made under this section. 7 Except as provided by subsection (8) , the disclosure of information under this section does not breach— a any obligation of confidence owed by the person making the disclosure, or b any other restriction on the disclosure of information (however imposed). 8 The powers conferred by this section to disclose information do not operate to authorise a disclosure that would contravene the data protection legislation (but those powers are to be taken into account in determining whether the disclosure would contravene that legislation). 9 References in this section to an authorised officer of any person are to any person who has been designated by the principal as a person to and by whom information may be disclosed under this section. 10 For the purposes of subsection (9) , any officer of Revenue and Customs is to be treated as having been designated by the HMRC Commissioners as a person to and by whom information may be disclosed under this section. 11 Nothing in this section (other than subsection (2)) limits the circumstances in which information may be disclosed under any other enactment or rule of law. 12 In this section “ data protection legislation ” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act). Power to make consequential provision 63 1 The Treasury may by regulations make provision that is consequential on this Part. 2 Regulations under this section may amend, repeal, revoke or otherwise modify any enactment (whenever passed or made). Regulations 64 1 Regulations under this Part— a may make different provision for different purposes; b may include incidental, consequential, supplementary, transitional or transitory provision; c may have effect in relation to the financial year during which the regulations are made. 2 Regulations under this Part may make provision by reference to things specified in a notice that is— a published by the HMRC Commissioners, or another appropriate collection authority, in accordance with the regulations, and b not withdrawn by a further notice. 3 The power of the Treasury to make regulations under this Part may instead be exercised by the HMRC Commissioners. 4 Before making regulations under this Part the Treasury must consult each appropriate collection authority. 5 Before making regulations under this Part the HMRC Commissioners must consult the Treasury and each of the other appropriate collection authorities. 6 Regulations under this Part are to be made by statutory instrument. 7 Except as provided by subsection (8), a statutory instrument containing regulations under this Part is subject to annulment in pursuance of a resolution of the House of Commons. 8 A statutory instrument containing (whether alone or with other provision) regulations of the following kinds may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons— a regulations under section 58(2) that make provision falling within section 58(3)(k); b regulations under section 63 that amend or repeal any provision of an Act of Parliament. Interpretation 65 1 In this Part— “accounting period”— in relation to a company within the charge to corporation tax, is to be read in accordance with Chapter 2 of Part 2 of CTA 2009, and in relation to any other person, means a period for which the person’s accounts are drawn up; “ appropriate collection authority ” has the meaning given by section 53(3) (subject to section 58(7)); “ company ” has the meaning given by section 1121(1) of CTA 2010; “ economic crime (anti-money laundering) levy ” has the meaning given in section 53; “ generally accepted accounting practice ” has the meaning given by section 1127(1) and (3) of CTA 2010; “ HMRC Commissioners ” means the Commissioners for Her Majesty’s Revenue and Customs; “ the levy ” means the economic crime (anti-money laundering) levy (see section 53 (1) ); “ Money Laundering Regulations ” means the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 ( S.I. 2017/692 ) (as amended from time to time); “ non-UK resident person ” means a person who is not resident in the United Kingdom; “ regulated business ” means a business carried on by a person by virtue of being a relevant person within the meaning of regulation 8(1) of the Money Laundering Regulations; “ relevant accounting period ” is to be read in accordance with section 56; “ revenue ” has the meaning given in section 57(7); “ supervisory authority ” means an authority that is a supervisory authority under the Money Laundering Regulations (see regulation 7 of those Regulations); “ tribunal ” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal; “ turnover ” means the amounts derived from the provision of goods and services after deduction of trade discounts, value added tax and any other taxes (other than the levy) based on the amounts so derived; “ UK resident person ” means a person who is resident in the United Kingdom. 2 For the purposes of this Part— a the territory in which a company is resident is to be determined as for corporation tax purposes, and b the territory in which a partnership is resident is the territory in which the control and management of the activities of the partnership take place. Commencement 66 This Part has effect for the financial year beginning with April 2022 and subsequent financial years. PART 4 Public interest business protection tax Public interest business protection tax 67 1 Schedule 10 makes provision about a tax charged in circumstances where a business for which there is a special administration regime becomes subject to special administration or to other special measures in connection with insolvency. 2 In this section “ special administration ”, “ special administration regime ” and “ special measures ” have the meanings given by paragraph 2 of that Schedule. PART 5 Other taxes Stamp duty and stamp duty reserve tax Securitisation companies and qualifying transformer vehicles 68 1 The Treasury may by regulations make provision for stamp duty or stamp duty reserve tax (or both) not to be chargeable in connection with, or with a particular description of, the following— a transfers of relevant securities issued or raised by a securitisation company or a qualifying transformer vehicle, and b transfers of relevant securities to or by a securitisation company. 2 In this section, “ relevant securities ” means— a stock or marketable securities (as defined in section 122 of the Stamp Act 1891), and b chargeable securities (as defined in section 99 of FA 1986, subject to subsection (8) ). 3 Regulations under this section may, among other things— a make provision for stamp duty not to be chargeable on a written document relating to a transfer; b make provision for stamp duty reserve tax not to be chargeable on a transfer or an agreement for a transfer; c provide that a transfer is exempt from all stamp duties; d make provision subject to conditions; e make different provision for different purposes; f contain incidental, consequential, transitional and transitory provision and savings. 4 The provision that may be made under subsection (3)(f) includes provision amending an enactment. 5 Regulations under this section are to be made by statutory instrument. 6 A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons. 7 In this section— “ enactment ” includes subordinate legislation (as defined in section 21 of the Interpretation Act 1978); “qualifying transformer vehicle” has same meaning as in the Risk Transformation (Tax) Regulations 2017 ( S.I. 2017/1271 ) (see regulation 3 of those Regulations); “ securitisation company ” has the same meaning as in the Taxation of Securitisation Companies Regulations 2006 ( S.I. 2006/3296 ) (see regulation 4 of those Regulations); “ transfer ” includes issue or appropriation under arrangements involving the issue of depositary receipts or the provision of clearance services for the purchase and sale of relevant securities. 8 For the purposes of this section, “ chargeable securities ” includes securities that are not chargeable securities for the purposes of Part 4 of FA 1986 by virtue of an exemption under regulations made under this section (see section 99(5) and (5ZA) of that Act). Value added tax Interim operation of margin schemes for used cars etc: Northern Ireland 69 1 Subsection (2) applies where a person supplies a margin scheme motor vehicle in the following circumstances— a the vehicle was first registered before IP completion day, b the person took possession of it in Great Britain or the Isle of Man, c it was then removed to Northern Ireland, and d in respect of the supply, the person is prevented from exercising a margin scheme option by, and only by, a Northern Ireland exclusion. 2 The person may exercise the margin scheme option in respect of the supply (despite the Northern Ireland exclusion), subject to any regulations under subsection (3) and any direction given under subsection (4) (and not withdrawn). 3 The Treasury may by regulations made by statutory instrument provide that a margin scheme option may not be exercised in reliance on subsection (2) where the vehicle was removed to Northern Ireland after a date specified in the regulations (the “end date”). 4 The Commissioners for Her Majesty’s Revenue and Customs may, in a notice published by them, direct that a margin scheme option may not be exercised in reliance on subsection (2) after a date specified in the notice. 5 Regulations under subsection (3) and notices under subsection (4) may specify different dates in relation to different cases. 6 The date specified in relation to a case in a notice under subsection (4) must fall after the end date specified in relation to the case. 7 A statutory instrument containing regulations under subsection (3) is subject to annulment in pursuance of a resolution of the House of Commons. 8 In this section— “ the 1992 Order ” means the Value Added Tax (Cars) Order 1992 ( S.I. 1992/3122 ); “ the 1995 Order ” means the Value Added Tax (Special Provisions) Order 1995 ( S.I. 1995/1268 ); “ margin scheme motor vehicle ” means a mechanically propelled vehicle that is— a used motor car, or second-hand goods; “ margin scheme option ” means the option under article 8(1) of the 1992 Order (relief for used motor cars) or article 12(1) of the 1995 Order (relief for second-hand goods etc); “ motor car ” has the meaning given in the 1992 Order; “ Northern Ireland exclusion ” means article 8(3)(e) of the 1992 Order (used motor car removed to Northern Ireland) or article 12(3)(aa) of the 1995 Order (second-hand goods etc removed to Northern Ireland); “ registered ” means registered under— VERA 1994, or the Licensing and Registration of Vehicles Act 1985 of the Isle of Man; “ second-hand goods ” has the meaning given in the 1995 Order; “ used ”, in relation to a motor car, has the same meaning as in the 1992 Order. 9 Subsections (1) to (8) come into force on such day as the Treasury may by regulations made by statutory instrument appoint. 10 Regulations under subsection (9) — a may specify different days in relation to different cases, and b may provide for subsections (1) , (2) and (8) to be treated as having come into force on IP completion day. 11 The Treasury may by regulations made by statutory instrument make transitional, transitory or saving provision in connection with the coming into force of subsections (1) to (8) , including provision making different provision in relation to different cases. Margin schemes and removal or export of goods: VAT-related payments 70 In VATA 1994, after section 50A (margin schemes) insert— Margin schemes and export or removal of goods 50B 1 The Treasury may by order provide that, on making a claim, a person is entitled to a VAT-related payment in respect of relevant supplies or of a description of relevant supply specified in the order. 2 “ Relevant supply ”, in relation to a person making a claim, means a supply of goods to the person where— a the person took possession of the goods in Great Britain or the Isle of Man in the course of carrying on a business, b the goods were then removed to Northern Ireland or exported, c at the time of the removal or export (“ the relevant time ”), the person intended to resell the goods outside Great Britain and the Isle of Man in the course of carrying on the business, and d if the circumstances of, and following, the supply to the person had been altered as described in subsection (3) , the person would have been entitled to exercise an option under an order made under section 50A in respect of the resale of the goods. 3 The alterations mentioned in subsection (2)(d) are— a that (if it was not in fact so) the person was a taxable person, b that the goods were not removed to Northern Ireland or exported (and VAT was charged on the supply of the goods to the person on that basis), and c that the person resold the goods in Great Britain at the relevant time in the course of carrying on the business. 4 “VAT-related payment”, in respect of a supply of goods, means a payment of an amount equal to so much of the consideration for the supply as would have constituted VAT if— a the supply had taken place at the relevant time, and b VAT had been chargeable on the value of the supply, subject to any provision made in reliance on subsection (5) . 5 An order under this section may make provision for the amount of a VAT-related payment to be less than the amount described in subsection (4) . 6 An order under this section may, among other things— a make entitlement to a VAT-related payment subject to conditions; b make provision about the making of claims under the order; c make provision for claims to be treated as if they were returns under this Act in respect of a particular period; d make provision about the calculation of VAT-related payments, including provision about the calculation of the consideration for, or value of, a supply; e make provision about how VAT-related payments are to be paid; f make provision for VAT-related payments to be treated as if they were repayments of input tax; g make provision requiring claims and payments to be made through agents in the United Kingdom; h make provision for agents dealing with claims and payments under the order to be treated under this Act as if they were taxable persons; i make provision for and in connection with the payment of interest to or by the Commissioners, including provision about interest wrongly paid. 7 An order under this section may, among other things— a confer power on the Commissioners to make provision in a direction or notice; b make provision, or enable the Commissioners to make provision, generally or for particular purposes; c make provision applying a provision of or made under this Act or another enactment, with or without modifications, including provision relating to penalties and offences; d make different provision for different purposes, including different provision in relation to persons carrying on business in different places or in relation to the removal or export of goods to different places; e make consequential, incidental, supplementary, transitional, transitory or saving provision. 8 The provision that may be made under subsection (7)(e) includes provision amending an enactment or subordinate legislation. 9 References in this section to carrying on a business are to doing so in the United Kingdom or elsewhere. Margin schemes and removal or export of goods: zero-rating 71 1 VATA 1994 is amended as follows. 2 In section 30 (zero-rating), after subsection (6) insert— 6A Subsection (6) does not apply in the case of goods exported from Great Britain if, in respect of the supply, the supplier exercises an option under an order made under section 50A. 3 In paragraph 3 of Schedule 9ZB (movements between Northern Ireland and Great Britain), after sub-paragraph (1) insert— 1A A supply of goods that involves the removal of goods from Great Britain to Northern Ireland is not zero-rated under sub-paragraph (1) if, in respect of the supply, the supplier exercises an option under an order made under section 50A. 4 Subsections (1) to (3) come into force on such day as the Treasury may by regulations made by statutory instrument appoint. 5 Regulations under this section may specify different days for different purposes. 6 The Treasury may by regulations made by statutory instrument make transitional, transitory or saving provision in connection with the coming into force of subsections (1) to (3) , including provision making different provision for different purposes. Relief on the importation of dental prostheses 72 1 In Schedule 2 to the Value Added Tax (Imported Goods) Relief Order 1984 ( S.I. 1984/746 ), in Group 5 (health), after Item 10 insert— 11 Dental prostheses imported by or on behalf of— a a person registered in the dentists register; b a person registered in the dental care professionals register established under section 36B of the Dentists Act 1984. 2 The amendment made by subsection (1) — a has effect in relation to imports on or after IP completion day, and b is to be treated as having been made under section 37(1) of VATA 1994 (VAT on importation of goods: reliefs etc) (and may be amended or revoked under that power accordingly). Insurance premium tax Identifying where the risk is situated 73 1 In Schedule 7A to FA 1994 (insurance premium tax: contracts that are not taxable), paragraph 8 (contracts relating to risks outside the United Kingdom) is amended as follows. 2 In sub-paragraph (2) for the words from “regulations made under section 424(3) of the Financial Services and Markets Act 2000” to the end substitute “the Table in sub-paragraph (3) ” . 3 After that sub-paragraph insert— 3 This is the Table referred to in sub-paragraph (2)— Where— The risk is situated in— the contract relates to a building, to some or all of the contents of a building or to a building and some or all of its contents the country or territory in which the building is situated the contract relates to vehicles of any type the country or territory in which the vehicle is registered the contract covers travel or holiday risks and has a duration of four months or less the country or territory in which the policyholder entered into the contract the contract does not fall within any of the previous entries and the policyholder is an individual the country or territory in which the policyholder is habitually resident on the date on which the contract is entered into the contract does not fall within any of the previous entries the country or territory in which the establishment of the policyholder to which the contract relates is situated on the date on which the contract is entered into. 4 For the purposes of the last entry in the Table, “ establishment ”, in relation to a policyholder (“ P ”), means— a P’s head office or any of P’s agencies or branches, or b any permanent presence of P (which need not take the form of a branch or agency and, for example, may consist of an office managed by P’s staff or by a person who is independent of P but who has permanent authority to act for P as if the person were an agency). 4 The amendments made by this section have effect in relation to contracts of insurance entered into on or after the day on which this Act is passed. Import duty Transitioned trade remedies: decisions by Secretary of State 74 1 Subsections (2) to (10) apply where a relevant review or reconsideration of a transitioned trade remedy has been initiated by the Trade Remedies Authority (“the TRA”) but has not been concluded. 2 The Secretary of State may notify the TRA in writing that, in relation to the matters under review or reconsideration, the Secretary of State is to decide whether to— a vary, maintain or revoke a tariff rate quota, anti-dumping amount or countervailing amount that is applicable to the goods to which the review or reconsideration relates, or b replace a tariff rate quota that is applicable to the goods to which the review or reconsideration relates with an additional amount of import duty. 3 Accordingly— a functions of the TRA that would otherwise be exercisable in relation to the matters under review or reconsideration cease to be exercisable by the TRA (but this is subject to subsection (6)(d) ); b the Secretary of State’s decision need not be based on a recommendation or decision of the TRA in relation to the matters under review or reconsideration; c provisions made by the Safeguards Regulations, the Dumping and Subsidisation Regulations and the Reconsideration and Appeals Regulations have effect subject to provision made by or under this section. 4 The Secretary of State must publish notice giving effect to a decision under subsection (2) . 5 The Secretary of State may by regulations make provision for the purposes of subsection (2) . 6 The following are examples of provision that regulations under subsection (5) may make in relation to a decision under subsection (2)— a provision specifying steps that are to be taken by the Secretary of State before notifying the TRA under subsection (2) , b provision specifying factors that are, or are not, to be taken into account by the Secretary of State in making the decision, c provision treating steps taken by the TRA in relation to the matters under review or reconsideration as steps taken by the Secretary of State, d provision requiring the TRA to do specified things of any kind (including things specified by the Secretary of State in directions) for the purpose of assisting the Secretary of State in making the decision, e provision authorising the disclosure of information between the Secretary of State and the TRA, f provision treating notice of the decision and anything having effect under the decision as having effect under TCTA 2018, g provision for and in connection with appeals against the decision, and h provision amending or otherwise modifying the Safeguards Regulations, the Dumping and Subsidisation Regulations or the Reconsideration and Appeals Regulations. 7 For the purposes of this section— a a relevant review or reconsideration of a transitioned trade remedy is initiated when— i the TRA publishes notice of initiation of a review under regulation 49(2)(a) of the Safeguards Regulations or regulation 98(1) of the Dumping and Subsidisation Regulations, ii the TRA publishes notice of initiation of a reconsideration of an original decision under regulation 12(1) of the Reconsideration and Appeals Regulations, or iii the Upper Tribunal refers an original decision back to the TRA under regulation 18(3) of the Reconsideration and Appeals Regulations; b a relevant review or reconsideration of a transitioned trade remedy is concluded when— i the Secretary of State accepts or rejects the TRA’s recommendation or decision following the review or reconsideration, ii the TRA publishes notice or notifies the Secretary of State that it is upholding the original decision under regulation 14(5) of the Reconsideration and Appeals Regulations (whichever is earlier), or iii the TRA makes a new decision following a referral by the Upper Tribunal under regulation 18(3) of the Reconsideration and Appeals Regulations. 8 For the purposes of subsection (7) , an “ original decision ” means a recommendation made by the TRA to the Secretary of State under— a regulation 100(1) of the Dumping and Subsidisation Regulations, or b regulation 51(1) of the Safeguards Regulations. 9 Section 32(7) and (8) of TCTA 2018 apply to regulations made under this section as if they were regulations made under Part 1 of that Act. 10 Regulations under this section are to be made by statutory instrument; and an instrument containing regulations made under this section is subject to annulment in pursuance of a resolution of the House of Commons. 11 In regulation 14 of the Reconsideration and Appeals Regulations, after paragraph (5) insert— 5A Where the original decision is a recommendation under regulation 100(1) of the Dumping and Subsidisation Regulations or regulation 51(1) of the Safeguards Regulations, the TRA must notify the Secretary of State of its intention to uphold the original decision at least 30 days before taking the steps under paragraph (5). 12 In this section— “ the Safeguards Regulations ” means the Trade Remedies (Increase in Imports Causing Serious Injury to UK Producers) (EU Exit) Regulations 2019 ( S.I. 2019/449 ); “ the Dumping and Subsidisation Regulations ” means the Trade Remedies (Dumping and Subsidisation) (EU Exit) Regulations 2019 ( S.I. 2019/450 ); “ the Reconsideration and Appeals Regulations ” means the Trade Remedies (Reconsideration and Appeals) (EU Exit) Regulations 2019 ( S.I. 2019/910 ). 13 This section is treated as having come into force on 3 November 2021. Reference documents: amount of import duty 75 After section 32 of TCTA 2018 insert— Reference documents 32A 1 This section applies where regulations made under any of sections 8 to 19 make provision by reference to a document. 2 The reference is to be construed— a as a reference to the document as modified by notice by the appropriate authority from time to time; b if the appropriate authority declares by notice that the document is replaced by another document, as a reference to that other document. 3 Subsection (2) does not apply to the extent that the effect of the modification or replacement of the document would be to alter the amount of import duty applicable under this Part to any goods. 4 A notice under this section must be published in such manner as the authority issuing it considers appropriate. 5 Section 32(10) applies to a notice under this section as it applies to a public notice. 6 In this section— “ appropriate authority ”, in relation to regulations that make provision by reference to a document, means the person who made the regulations; “ modified ” means amended, added to or omitted from. Fuel duties Restriction of use of rebated diesel and biofuels 76 1 Schedule 11 makes— a provision amending HODA 1979 to restrict the use of rebated diesel and biofuels to specified categories of machines, and b related provision. 2 Part 1 of Schedule 11 comes into force on 1 April 2022. 3 The Treasury may by regulations— a make provision that is consequential on Schedule 11; b such supplementary, incidental, transitional, transitory or saving provision as the Treasury consider appropriate in connection with the coming into force of Schedule 11. 4 Regulations under subsection (3) may— a amend, repeal or revoke provision made by or under an Act passed before this Act; b make different provision for different purposes or areas. 5 Regulations under subsection (3) are to be made by statutory instrument. 6 A statutory instrument containing regulations under subsection (3) is subject to annulment in pursuance of a resolution of the House of Commons. 7 In Schedule 11 to FA 2020 (amendments of HODA 1979 relating to private pleasure craft), in paragraph 21 (power to make consequential amendments), after “ FA 2021 ” (as inserted by section 102(7) of FA 2021) insert “and Schedule 11 to FA 2022,” . Tobacco products duty Rates of tobacco products duty 77 1 In Schedule 1 to TDPA 1979 (table of rates of tobacco products duty), for the Table substitute— TABLE 1 Cigarettes An amount equal to the higher of— 16.5% of the retail price plus £262.90 per thousand cigarettes, or £347.86 per thousand cigarettes. 2 Cigars £327.92 per kilogram 3 Hand-rolling tobacco £302.34 per kilogram 4 Other smoking tobacco and chewing tobacco £144.17 per kilogram 5 Tobacco for heating £270.22 per kilogram . 2 In consequence of the provision made by subsection (1), in Schedule 2 to the Travellers’ Allowances Order 1994 (which provides in certain circumstances for a simplified calculation of excise duty on goods brought into Great Britain)— a in the entry relating to cigarettes, for “£320.90” substitute “£347.86” , b in the entry relating to hand rolling tobacco, for “£271.40” substitute “£302.34” , c in the entry relating to other smoking tobacco and chewing tobacco, for “£134.24” substitute “£144.17” , d in the entry relating to cigars, for “£305.32” substitute “£327.92” , e in the entry relating to cigarillos, for “£305.32” substitute “£327.92” , and f in the entry relating to tobacco for heating, for “£75.48” substitute “£81.07” . 3 The amendments made by this section are treated as having come into force at 6pm on 27 October 2021. Vehicle taxes Rates for light passenger or light goods vehicles, motorcycles etc 78 1 Schedule 1 to VERA 1994 (annual rates of vehicle excise duty) is amended as follows. 2 In paragraph 1 (general rate)— a in sub-paragraph (2) (vehicle not covered elsewhere in Schedule with engine cylinder capacity exceeding 1,549cc), for “£280” substitute “£295” , and b in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc), for “£170” substitute “£180” . 3 In paragraph 1B (graduated rates for light passenger vehicles registered before 1 April 2017), for the Table substitute— CO 2 emissions figure Rate (1) (2) (3) (4) Exceeding Not exceeding Reduced rate Standard rate g/km g/km £ £ 100 110 10 20 110 120 20 30 120 130 125 135 130 140 155 165 140 150 170 180 150 165 210 220 165 175 255 265 175 185 280 290 185 200 320 330 200 225 350 360 225 255 605 615 255 — 620 630 . 4 In the sentence immediately following the Table in that paragraph, for paragraphs (a) and (b) substitute— a in column (3), in the last two rows, “350” were substituted for “605” and “620”, and b in column (4), in the last two rows, “360” were substituted for “615” and “630”. 5 In paragraph 1GC (graduated rates for first licence for light passenger vehicles registered on or after 1 April 2017), for Table 1 (vehicles other than higher rate diesel vehicles) substitute— CO 2 emissions figure Rate (1) (2) (3) (4) Exceeding Not exceeding Reduced rate Standard rate g/km g/km £ £ 0 50 0 10 50 75 15 25 75 90 110 120 90 100 140 150 100 110 160 170 110 130 180 190 130 150 220 230 150 170 575 585 170 190 935 945 190 225 1410 1420 225 255 2005 2015 255 — 2355 2365 . 6 In that paragraph, for Table 2 (higher rate diesel vehicles) substitute— CO 2 emissions figure Rate (1) (2) (3) Exceeding Not exceeding Rate g/km g/km £ 0 50 25 50 75 120 75 90 150 90 100 170 100 110 190 110 130 230 130 150 585 150 170 945 170 190 1420 190 225 2015 225 255 2365 255 — 2365 . 7 In paragraph 1GD(1) (rates for any other licence for light passenger vehicles registered on or after 1 April 2017)— a in paragraph (a) (reduced rate), for “£145” substitute “£155” , and b in paragraph (b) (standard rate), for “£155” substitute “£165” . 8 In paragraph 1GE(2) (rates for light passenger vehicles registered on or after 1 April 2017 with a price exceeding £40,000)— a in paragraph (a), for “£480” substitute “£510” , and b in paragraph (b), for “£490” substitute “£520” . 9 In paragraph 1J(a) (rates for light goods vehicles that are not pre-2007 or post-2008 lower emission vans), for “£275” substitute “£290” . 10 In paragraph 2(1) (rates for motorcycles)— a in paragraph (a) (engine cylinder capacity not exceeding 150cc), for “£21” substitute “£22” , b in paragraph (b) (motorbicycles with engine cylinder capacity exceeding 150cc but not exceeding 400cc), for “£45” substitute “£47” , c in paragraph (c) (motorbicycles with engine cylinder capacity exceeding 400cc but not exceeding 600cc), for “£69” substitute “£73” , and d in paragraph (d) (other cases), for “£96” substitute “£101” . 11 The amendments made by this section have effect in relation to licences taken out on or after 1 April 2022. Vehicle excise duty: exemption for certain cabotage operations 79 1 The Motor Vehicles (International Circulation) Order 1975 ( S.I. 1975/1208 ) is modified in accordance with subsection (2). 2 Article 5 (excise exemption and documents for vehicles brought temporarily into the United Kingdom) has effect as if— a in paragraph (2), after sub-paragraph (c) there were inserted— d in a case of a vehicle being used for or in connection with a cabotage operation in Great Britain that is not exempt from excise duty under sub-paragraph (b) or (c), the vehicle is exempt from excise duty if and for so long as— i the cabotage operation consists of national carriage for hire or reward by a haulier; ii no more than 14 days has elapsed beginning with the day on which the vehicle arrived in the United Kingdom in the course of a laden journey; iii the vehicle is being used at any time during the permitted period; and iv either paragraph (2ZA) or (2ZB) applies in the case of the vehicle. ; b after paragraph (2) there were inserted— 2ZA This paragraph applies in the case of a vehicle if— a the haulier is the holder of a Community licence, and b the driver of the vehicle, if a national of a country which is not a member State, holds a driver attestation. 2ZB This paragraph applies in the case of a vehicle if— a the vehicle is a foreign goods vehicle, and b the vehicle lawfully entered the United Kingdom in the course of a laden international road transport. 2ZC The definition of “foreign goods vehicle” in regulation 3(1) of the Goods Vehicles (Licensing of Operators) (Temporary Use in Great Britain) Regulations 1996 ( S.I. 1996/2186 ) applies for the purposes of paragraph (2ZB)(a), but as if paragraph (d) of that definition were omitted. 2ZD Paragraphs (2ZE) and (2ZF) apply in determining the “ permitted period ” for the purposes of paragraph (2)(c)(d)(iii). 2ZE In the case of vehicles arriving in the United Kingdom on or after 28th October 2021, the “ permitted period ” means the period ending with— a 30th April 2022, or b such later date as regulations made by the Treasury may specify. 2ZF Where regulations made by the Treasury provide for this paragraph to apply in the case of vehicles arriving in the United Kingdom on or after a date specified in the regulations that is after 30th April 2022, the “ permitted period ” means the period— a beginning with that specified date, and b ending with such later date as the regulations may specify. 2ZG The later date specified in regulations under paragraph (2ZE)(b) or (2ZF)(b) must be no later than 31st December 2022. 2ZH Regulations under paragraph (2ZE) or (2ZF) are to be made by statutory instrument. 2ZI A statutory instrument containing regulations under paragraph (2ZE) or (2ZF) is subject to annulment in pursuance of a resolution of the House of Commons. HGV road user levy: extension of suspension 80 1 In section 88 of FA 2020 (suspension of HGV road user levy), in subsection (3) (exempt period), for “24” substitute “36” . 2 In FA 2021 omit section 106 (HGV road user levy: extension of suspension). Gaming duty Amounts of gross gaming yield charged to gaming duty 81 1 In section 11(2) of FA 1997 (rates of gaming duty), for the table substitute— TABLE Part of gross gaming yield Rate The first £2,686,000 15% The next £1,852,000 20% The next £3,243,000 30% The next £6,845,000 40% The remainder 50% . 2 The amendment made by this section has effect in relation to accounting periods beginning on or after 1 April 2022. Penalties relating to excise duty Excise duty: penalties 82 1 Schedule 41 to FA 2008 (penalties: failure to notify and certain VAT and excise wrongdoing) is amended as follows. 2 In paragraph 1 (penalty payable on failure to comply with relevant obligation), in the table (relevant obligations), in the fourth entry for “excise duties”, for “their release for free circulation” substitute “a declaration for the free-circulation procedure or an authorised use procedure being accepted” . 3 In paragraph 4 (handling goods subject to unpaid excise duty etc), in sub-paragraph (2), in the definition of “excise duty point”, after “1992” insert “(and includes any excise duty point created or deemed to be created as a result of provision in regulations under section 45 of the Taxation (Cross-border Trade) Act 2018 (general regulation making power for excise duty purposes etc))” . 4 This section is treated as having come into force on 3 November 2021. Environmental taxes Rates of landfill tax 83 1 Section 42 of FA 1996 (amount of landfill tax) is amended as follows. 2 In subsection (1)(a) (standard rate), for “£96.70” substitute “£98.60” . 3 In subsection (2) (reduced rate for certain disposals), in the words after paragraph (b)— a for “£96.70” substitute “£98.60” , and b for “£3.10” substitute “£3.15” . 4 The amendments made by this section have effect in relation to disposals made (or treated as made) on or after 1 April 2022. Plastic packaging tax 84 Schedule 12 makes miscellaneous amendments to Part 2 of FA 2021 (plastic packaging tax). PART 6 Miscellaneous and final Avoidance Winding-up petitions by an officer of Revenue and Customs 85 1 Subsection (2) applies where it appears to an officer of Revenue and Customs that it is expedient in the public interest, for the purposes of protecting the public revenue, that a relevant body should be wound up. 2 The officer may present a petition to the court for the winding up of the body. 3 On such a petition, the court may wind up the body if the court is of the opinion that it is just and equitable that it should be wound up. 4 In this section— “ court ” means— the court having jurisdiction for the purposes of the Insolvency Act 1986, or in Northern Ireland, the High Court; “ indirect tax ” has the same meaning as in Schedule 17 to F(No.2)A 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes); “ relevant body ” means a body, including a partnership, that— carries on a business as a promoter within the meaning of Part 5 of FA 2014 (promoters of tax avoidance schemes) as if, in sections 234 and 235 of that Part, references to— “tax” included value added tax and other indirect taxes, and “tax advantage” included a tax advantage as defined for value added tax in paragraph 6, and for other indirect taxes in paragraph 7, of Schedule 17 to F(No.2)A 2017; is connected to a body within paragraph (a) (within the meaning of section 1122 of CTA 2010 (“connected” persons)). 5 If a petition is presented under subsection (2) for the winding up of a partnership, the court has jurisdiction, and the Insolvency Act 1986 (or the Insolvency (Northern Ireland) Order 1989 ( S.I. 1989/2405 (N.I. 19) )) has effect, as if the partnership were an unregistered company as defined by section 220 of that Act (or Article 184 of that Order). 6 The rules governing the practice and procedure (including fees) in respect of petitions under section 124A of the Insolvency Act 1986 or Article 104A of the Insolvency (Northern Ireland) Order 1989 ( S.I. 1989/2405 (N.I. 19) ) apply to petitions under this section, subject to any necessary modifications. Publication by HMRC of information about tax avoidance schemes 86 1 If an authorised officer suspects that a proposal or arrangements are a relevant proposal or relevant arrangements the officer may arrange for the publication of any information (including documents) the officer considers appropriate for the purposes of— a informing taxpayers about risks associated with, or concerns the officer has about, the proposal or arrangements, or b protecting the public revenue. 2 The information that may be published includes information (including documents) identifying or about any person— a who is or has been, or who the officer suspects is or has been— i a promoter in relation to the proposal or arrangements, ii a connected person in relation to the proposal or arrangements or to a person within sub-paragraph (i) , or iii a member of a promotion structure any member of which has or has had, or is suspected by the officer of having or having had, a role in relation to making the proposal or arrangements available for implementation, or b who has or has had, or who the officer suspects has or has had, any other role in relation to making the proposal or arrangements available for implementation. 3 No information may be published under this section that identifies a person— a who is not within subsection (2) , or b where there are reasonable grounds for believing that the person’s role in relation to the proposal or arrangements is limited to activities subject to legal professional privilege. 4 Information may be published under this section in such manner as the officer considers appropriate, including by communicating it to particular persons. 5 If an authorised officer intends to publish information under this section that identifies a person, an officer of Revenue and Customs must— a notify the person, and b give the person 30 days from that notification in which to make representations about whether or not the information should be published. 6 Before arranging for the publication of information under this section identifying a person, an authorised officer must have regard to any representations received in accordance with subsection (5) . 7 An authorised officer must amend or withdraw information published under this section if the officer subsequently considers it to be incorrect or misleading in a significant respect. 8 Nothing in this section authorises a disclosure of information if the disclosure would contravene the data protection legislation or would be prohibited by the investigatory powers legislation (but in determining whether a disclosure would do either of those things, the power conferred by this section is to be taken into account). 9 In subsection (8) — “ the data protection legislation ” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act); “ the investigatory powers legislation ” means Parts 1 to 7 and Chapter 1 of Part 9 of the Investigatory Powers Act 2016. 10 Nothing in this section limits the circumstances in which information may be disclosed under section 18(2) of the Commissioners for Revenue and Customs Act 2005 or under any other enactment or rule of law. 11 For the purposes of this section, a person is a connected person in relation to a proposal or arrangements, or a person within subsection (2)(a)(i) , if the person is— a involved in the promotion of the proposal or arrangements; b in the case of a proposal or arrangements that involve a trust, a settlor, trustee or beneficiary of the trust, or other person involved in the administration of the trust; c a director, manager, secretary or other similar officer of the person within subsection (2)(a)(i) ; d a person who controls or has significant influence over (within the meaning of Part 2 of Schedule 34 to FA 2014) the person within subsection (2)(a)(i) ; e an employee or shareholder of the person within subsection (2)(a)(i) . 12 In this section “ authorised 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 the purposes of this section. 13 Expressions used in Part 5 of FA 2014 have the same meaning in this section as in that Part, unless the contrary intention appears (and, in particular, see sections 234 and 235 of FA 2014 for the meanings of “relevant proposal”, “relevant arrangements” and “promoter” and Schedule 33A to that Act for the meaning of “promotion structure”). Freezing orders: England and Wales 87 1 Subsection (2) applies where — a an application is made on behalf of HMRC to a court in England and Wales for a freezing order in relation to a relevant penalty (see section 90) before the penalty is determined, and b the court considering the application is satisfied that HMRC have a good arguable case in relation to the penalty and— i have commenced proceedings before the First-tier Tribunal in relation to it, or ii intend to commence proceedings before the First-tier Tribunal in relation to it within the initial period. 2 The court is to determine the application as if it were being made immediately after the First-tier Tribunal had determined the penalty on the basis sought, or to be sought, by HMRC. 3 A freezing order granted by virtue of subsection (2) may not take effect unless HMRC commence proceedings before the First-tier Tribunal in relation to the penalty before the end of the initial period (whether before or after the making of the application for the order). 4 In this section, a “freezing order” is an order granted in accordance with rule 25.1(1)(f) of the Civil Procedure Rules. Warrants for diligence on the dependence: Scotland 88 1 Subsection (2) applies where — a an application is made on behalf of HMRC to a court in Scotland for a warrant for diligence on the dependence under Part 1A of the Debtors (Scotland) Act 1987 in relation to a relevant penalty (see section 90) before the penalty is determined, and b the court considering the application is satisfied that HMRC have a good arguable case in relation to the penalty and— i have commenced proceedings before the First-tier Tribunal in relation to it, or ii intend to commence proceedings before the First-tier Tribunal in relation to it within the initial period. 2 The court is to determine the application as if the relevant penalty were a contingent debt in terms of section 15C of the 1987 Act. 3 Execution of diligence on the dependence under a warrant granted under Part 1A of the 1987 Act in relation to a relevant penalty is not competent unless HMRC commence proceedings before the First-tier Tribunal in relation to the penalty before the end of the initial period (whether before or after the making of the application for the warrant). Freezing injunctions: Northern Ireland 89 1 Subsection (2) applies where — a an application is made on behalf of HMRC to a court in Northern Ireland for a freezing injunction in relation to a relevant penalty (see section 90) before the penalty is determined, and b the court considering the application is satisfied that HMRC have a good arguable case in relation to the penalty and— i have commenced proceedings before the First-tier Tribunal in relation to it, or ii intend to commence proceedings before the First-tier Tribunal in relation to it within the initial period. 2 The court is to determine the application as if it were being made immediately after the First-tier Tribunal had determined the penalty on the basis sought, or to be sought, by HMRC. 3 A freezing injunction granted by virtue of subsection (2) may not take effect unless HMRC commence proceedings before the First-tier Tribunal in relation to the penalty before the end of the initial period (whether before or after the making of the application for the injunction). 4 In this section, a “freezing injunction” is an injunction granted in accordance with Order 29 of the Rules of the Court of Judicature (NI) 1980 ( S.R. (N.I.) 1980 No. 346 ) or Order 14 of the County Court Rules (Northern Ireland) 1981 (S.R. (N.I.) 1981 No. 225 ), which restrains a party from— a removing from the jurisdiction assets located there, or b dealing with any assets, whether located within the jurisdiction or not. Sections 87, 88 and 89: interpretation etc 90 1 This section applies for the purposes of sections 87, 88 and 89. 2 “ HMRC ” means “Her Majesty’s Revenue and Customs”. 3 A relevant penalty is a penalty that is to be determined by the First-tier Tribunal under— a section 98C of TMA 1970 (disclosure of tax avoidance schemes); b Schedule 35 to FA 2014 (promoters of tax avoidance schemes: penalties); c Schedule 36 to FA 2008 (information and inspection powers) as it has effect in relation to Schedule 16 to F(No.2)A 2017 (penalties for enablers of defeated tax avoidance) (see Part 9 of Schedule 16 to F(No.2)A 2017); d Schedule 17 to F(No.2)A 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes). 4 The “initial period” is the period of 72 hours beginning with the time at which the application mentioned in section 87, 88 or 89, as the case may be, is determined. 5 In calculating the period of 72 hours in subsection (4) , disregard the whole of any day that is— a a Saturday, b a Sunday, c Christmas Day, d Good Friday, or e a bank holiday under the Banking and Financial Dealings Act 1971 in the part of the United Kingdom in which the application mentioned in section 87, 88 or 89, as the case may be, is made. Penalties for facilitating avoidance schemes involving non-resident promoters 91 1 Schedule 13 makes provision for and about penalties for facilitating avoidance schemes involving non-resident promoters. 2 In consequence of that Schedule, in Schedule 13 to FA 2020 (joint and several liability of company directors etc), in paragraph 5(6), after paragraph (e) insert— f Schedule 13 to FA 2022 (penalties for facilitating avoidance schemes involving non-resident promoters). Electronic sales suppression penalties 92 Schedule 14 makes provision for and in connection with— a penalties for persons who engage in activities involving tools used, or capable of being used, to suppress electronic sales records, and b powers for Her Majesty’s Revenue and Customs to gather information in relation to such persons and such tools. Tobacco products: tracing and security 93 1 TPDA 1979 is amended in accordance with subsections (2) to (4) . 2 After section 8J insert— Tracing and security: regulations 8JA 1 The Commissioners may by regulations— a establish, and make provision about the operation of, a traceability system for tobacco products; b require security features to be applied to tobacco products. 2 For the purposes of subsection (1) — a a traceability system for tobacco products means a system under which the movements of tobacco products are recorded; b security features applied to tobacco products are features that a unit pack, or the packaging containing more than one unit pack, of tobacco products must carry for the purpose of enabling the identification of the products and the verification of their authenticity. 3 Tracing and security regulations may (among other things)— a require a unit pack, or the packaging containing more than one unit pack, of tobacco products to be marked with a unique code; b confer functions on the Commissioners or other persons (including functions involving the exercise of a discretion); c make provision by reference to things set out (whether by the Commissioners or other persons) in a notice given in accordance with the regulations; d specify technical standards (including by making provision under paragraph (c) ); e make provision about the processing of data (including provision about the recording, transmission, storing and accessing of data); f impose, or enable the imposition of, restrictions or requirements on persons of a specified description; g provide for the imposition of sanctions for failure to comply with such restrictions or requirements (see section 8JB); h provide for appeals from, and reviews of, decisions taken under the regulations. 4 Regulations under subsection (3)(f) may, in particular— a specify, or provide for the specification of, equipment or other material for use in connection with a restriction or requirement imposed by or under the regulations; b require persons of a specified description to provide such equipment or material to other persons of a specified description for specified purposes; c make provision about the way in which such equipment or material is to be provided, including how any costs are to be met by persons providing or receiving it. 5 Tracing and security regulations may— a make provision generally in relation to tobacco products or only in relation to specified descriptions of tobacco products; b make different provision for different areas; c make provision by supplementing or otherwise amending relevant existing law; d revoke relevant existing law. 6 The power to make regulations under this section is exercisable only where the Commissioners consider that doing so would facilitate the administration, collection or enforcement of the duty charged under section 2. 7 In this section and sections 8JB and 8JC — “ relevant existing law ” means— Chapter 2 of Part 1 of the Finance Act 1994 (customs and excise: appeals and penalties); the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009 ( S.I. 2009/273 ); the Standardised Packaging of Tobacco Products Regulations 2015 ( S.I. 2015/829 ); Commission Delegated Regulation (EU) 2018/573 of 15 December 2017 on key elements of data storage contracts to be concluded as part of a traceability system for tobacco products; Commission Implementing Regulation (EU) 2018/574 of 15 December 2017 on technical standards for the establishment and operation of a traceability system for tobacco products; Commission Implementing Decision (EU) 2018/576 of 15 December 2017 on technical standards for security features applied to tobacco products; the Tobacco Products (Traceability and Security Features) Regulations 2019 ( S.I. 2019/594 ); “ specified ” means specified by or under tracing and security regulations; “ traceability system for tobacco products ” has the meaning given in subsection (2)(a) ; “ tracing and security regulations ” means regulations under subsection (1) ; “ unit pack ” means the smallest individual packaging in which a tobacco product is, or is intended to be, presented for sale to a consumer (but not including any transparent wrapper). Tracing and security: sanctions 8JB 1 This section applies to tracing and security regulations that make provision for sanctions under section 8JA (3)(g) . 2 The regulations may provide for the following kinds of sanction— a the imposition of monetary penalties of such amounts, not exceeding £10,000, as are determined in accordance with the regulations; b for tobacco products involved in a contravention of applicable law to be liable to forfeiture under the customs and excise Acts; c the application by the Commissioners of measures to restrict or prohibit a person’s participation, or continued participation, in any part of a traceability system for tobacco products (including measures to deactivate, or require the deactivation of, any code issued to the person for the purposes of such a system or to prevent such a code from being issued or reissued). 3 Provision under subsection (2)(a) may (among other things)— a provide for a penalty to be payable on the giving of a notice (“a penalty notice”) by such persons as are authorised by or under the regulations; b specify matters to which such persons may or must have regard when determining whether to give a penalty notice; c provide for the action to be taken if a monetary penalty is not paid in accordance with a penalty notice. 4 For the purposes of subsection (2)(b) , tobacco products are “involved in a contravention of applicable law” if— a the products do not comply with a requirement imposed under tracing and security regulations or under relevant existing law, or b the products are found together with other products falling within paragraph (a) . Tracing and security: disclosure of information 8JC 1 The Commissioners (or anyone acting on their behalf) may, for a purpose within subsection (3) , disclose information to— a a person on whom functions have been conferred by or under tracing and security regulations or relevant existing law; b an authorised officer of such a person. 2 A person mentioned in subsection (1)(a) or (b) may, for a purpose within subsection (3) , disclose information to the Commissioners (or anyone acting on their behalf). 3 A purpose is within this subsection if it is connected with— a a function conferred by or under tracing and security regulations or relevant existing law, or b the enforcement of a restriction or requirement imposed by or under tracing and security regulations or relevant existing law. 4 A person who receives information as a result of subsection (1) may not— a use the information for a purpose other than a purpose within subsection (3) , or b further disclose the information, except with the consent of the Commissioners (which may be general or specific). 5 If— a a person discloses information in contravention of subsection (4)(b) , and b the information relates to a person whose identity is specified in, or can be deduced from, the disclosure, section 19 of the Commissioners for Revenue and Customs Act 2005 (offence of wrongful disclosure) applies in relation to that disclosure as it applies in relation to a disclosure of information in contravention of section 20(9) of that Act. 6 Nothing in this section authorises the making of a disclosure which would— a contravene the data protection legislation, or b be prohibited by the investigatory powers legislation. In determining whether a disclosure would do either of those things, the powers conferred by this section are to be taken into account. 7 In subsection (6) — “ the data protection legislation ” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act); “ the investigatory powers legislation ” means Parts 1 to 7 and Chapter 1 of Part 9 of the Investigatory Powers Act 2016. 8 Nothing in this section limits the circumstances in which information may be disclosed under section 18(2) of the Commissioners for Revenue and Customs Act 2005 or under any other enactment or rule of law. 9 References in this section to an authorised officer of any person are to any person who has been designated by the principal as a person to and by whom information may be disclosed by virtue of this section. 3 In section 9 (regulations), in subsection (1A) after “section” insert “ 8JA ,” . 4 In section 10 (interpretation), in subsection (3), after ““the Commissioners”” insert— “the customs and excise Acts” . 5 In Schedule 41 to FA 2008 (penalties for certain VAT and excise wrongdoing etc), in paragraph 15 (interaction with other penalties and late payment surcharges), after sub-paragraph (2) insert— 2A If P has incurred a penalty under regulations under section 8JA (1) of TPDA 1979 (tracing and security regulations) in respect of conduct for which P is liable to a penalty under paragraph 4(1), the amount of the penalty under paragraph 4(1) is to be reduced by the amount of the penalty under those regulations. Free zones and freeports Treatment of goods in free zones 94 Schedule 15 makes provision about the treatment of goods in free zones for the purposes of value added tax. Freeport tax site reliefs: provision about regulations 95 Schedule 16 makes provision about powers to vary the circumstances in which certain reliefs are available in relation to freeports. Uncertain tax treatment Large businesses: notification of uncertain tax treatment 96 Schedule 17 makes provision requiring bodies to notify Her Majesty’s Revenue and Customs if amounts included in a tax return have an uncertain tax treatment. Discovery assesments etc Discovery assessments for unassessed income tax or capital gains tax 97 1 In section 29 of TMA 1970 (assessment where loss of tax discovered), in subsection (1), for paragraph (a) substitute— a that an amount of income tax or capital gains tax ought to have been assessed but has not been assessed, . 2 In the Registered Pension Schemes (Accounting and Assessment) Regulations 2005 ( S.I. 2005/3454 ), omit regulation 9 (which modifies section 29(1)(a) of TMA 1970). 3 The amendments made by this section— a have effect in relation to the tax year 2021-22 and subsequent tax years, and b also have effect in relation to the tax year 2020-21 and earlier tax years but only if the discovery assessment is a relevant protected assessment (see subsections (4) to (6) ). 4 A discovery assessment is a relevant protected assessment if it is in respect of an amount of tax chargeable under— a Chapter 8 of Part 10 of ITEPA 2003 (high income child benefit charge), b section 424 of ITA 2007 (gift aid: charge to tax), c section 205 or 206 of FA 2004 (pensions) but only where the section is applied by Schedule 34 to that Act, or d section 208, 209, 214, 227 or 244A of FA 2004 (pensions), including where the section is applied by that Schedule. 5 But a discovery assessment is not a relevant protected assessment if it is subject to an appeal notice of which was given to HMRC on or before 30 June 2021 where— a an issue in the appeal is that the assessment is invalid as a result of its not relating to the discovery of income which ought to have been assessed to income tax but which had not been so assessed, and b the issue was raised on or before 30 June 2021 (whether by the appellant or in a decision given by the tribunal). 6 In addition, a discovery assessment is not a relevant protected assessment if— a it is subject to an appeal notice of which was given to HMRC on or before 30 June 2021, b the appeal is subject to a temporary pause which occurred before 27 October 2021, and c it is reasonable to conclude that the temporary pausing of the appeal occurred (wholly or partly) on the basis that an issue of a kind mentioned in subsection (5)(a) is, or might be, relevant to the determination of the appeal. 7 For the purposes of this section the cases where notice of an appeal was given to HMRC on or before 30 June 2021 include a case where— a notice of an appeal is given after that date as a result of section 49 of TMA 1970, but b a request in writing was made to HMRC on or before that date seeking HMRC’s agreement to the notice being given after the relevant time limit (within the meaning of that section). 8 For the purposes of this section an appeal is subject to a temporary pause which occurred before 27 October 2021 if— a the appeal has been stayed by the tribunal before that date, b the parties to the appeal have agreed before that date to stay the appeal, or c HMRC have notified the appellant (“ A ”) before that date that they are suspending work on the appeal pending the determination of another appeal the details of which have been notified to A. 9 In this section— “ discovery assessment ” means an assessment under section 29(1)(a) of TMA 1970, and “ HMRC ” means Her Majesty’s Revenue and Customs, and “ notified ” means notified in writing. Notification of liability to income tax and capital gains tax 98 1 Section 7 of TMA 1970 (notice of liability to income tax and capital gains tax) is amended in accordance with subsections (2) and (3) . 2 In subsection (2A), in the words after paragraph (b)— a after “chargeable to” insert “an amount of” ; b omit “on any income or gain”. 3 In subsection (3), in paragraph (c), for “a high income child benefit charge” substitute “an amount of tax under any provision listed in relation to the person in section 30 of ITA 2007 (additional tax)” . 4 In Schedule 16 to FA 2020 (taxation of coronavirus support payments), in paragraph 12(4) (notification of liability: modifications to section 7 of TMA 1970), for “after “child benefit charge”” substitute “at the end” . 5 The amendments made by this section have effect in relation to the tax year 2021-22 and subsequent tax years. Calculation of income tax liability for certain charges relating to pensions 99 1 In section 30(1) of ITA 2007 (Step 7: additional tax)— a in the entry for section 208(2)(a), for “section 208(2)(a)” substitute “section 208” , b in the entry for section 209(3)(a), for “section 209(3)(a)” substitute “section 209” , and c after the entry for section 227 of FA 2004 insert— section 244A of FA 2004 (pension schemes: the overseas transfer charge), . 2 The amendments made by this section have effect in relation to the tax year 2021-22 and subsequent tax years. Temporary powers in disaster or emergency Power to make temporary modifications of taxation of employment income 100 1 The Treasury may by regulations modify Part 3, 4 or 5 of ITEPA 2003 so as to provide that a liability to income tax that would otherwise arise does not arise. 2 Regulations under this section— a may be made only if the Treasury considers that the modifications contained in the regulations are necessary or desirable for the purpose of addressing circumstances arising as a result of a disaster or emergency; b must provide for the modifications to cease to have effect at the end of such period as is specified (and different periods may be specified in relation to different modifications). 3 Regulations under this section— a must specify the disaster or emergency in respect of which they are made; b may only specify a disaster or emergency which the Treasury considers to be of national significance. 4 The period specified under subsection (2)(b) in relation to a modification— a must be no longer than the Treasury considers necessary for the purpose mentioned in subsection (2)(a) ; b must in any event end before the last day of the tax year following the tax year in which the modification first takes effect. 5 The expiry of a modification contained in regulations under this section in relation to a disaster or emergency is not to be taken as preventing the making of provision to the same or similar effect in further regulations under this section in relation to that (or another) disaster or emergency. 6 Regulations under this section may— a make different provision for different cases; b make retrospective provision; c make incidental or supplemental provision; d make consequential provision (which may include provision modifying any provision of the Income Tax Acts). 7 In this section, “ specified ” means specified in the regulations. Emissions certificates for vehicles Vehicle CO 2 emissions certificates 101 Schedule 18 makes provision about certificates in relation to the CO 2 emissions of vehicles for the purposes of— a section 268C(1) of CAA 2001 (meaning of “ qualifying emissions certificate ”), b Chapter 6 of Part 3 of ITEPA 2003 (taxable benefits: cars etc), and c Part 1A of Schedule 1 to VERA 1994 (light passenger vehicles: rates of duty). ... Increase in membership of the Office of Tax Simplification 102 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Final Interpretation 103 In this Act the following abbreviations are references to the following Acts— CAA 2001 Capital Allowances Act 2001 CRCA 2005 Commissioners for Revenue and Customs Act 2005 CTA 2009 Corporation Tax Act 2009 CTA 2010 Corporation Tax Act 2010 FA followed by a year Finance Act of that year F(No.2)A followed by a year Finance (No.2) Act of that year FISMA 2000 Financial Services and Markets Act 2000 HODA 1979 Hydrocarbon Oil Duties Act 1979 ITA 2007 Income Tax Act 2007 ITEPA 2003 Income Tax (Earnings and Pensions) Act 2003 ITTOIA 2005 Income Tax (Trading and Other Income) Act 2005 TCGA 1992 Taxation of Chargeable Gains Act 1992 TCTA 2018 Taxation (Cross-border Trade) Act 2018 TIOPA 2010 Taxation (International and Other Provisions) Act 2010 TMA 1970 Taxes Management Act 1970 TPDA 1979 Tobacco Products Duty Act 1979 VATA 1994 Value Added Tax Act 1994 VERA 1994 Vehicle Excise and Registration Act 1994 Short title 104 This Act may be cited as the Finance Act 2022.