Finance Act 2026

Statutes amended

69 affected Acts; 834 amendments in total. Each block shows the target Act's text with this Act's changes applied.

Income Tax Act 2007

141 amendments · open Act

Section 1(1)(a)1 insertion
1 Overview of the Income Tax Acts
1 The following Acts make provision about income tax—
a ITEPA 2003 (which is about charges to tax on employment income, pension income and social security income and makes provision for the high income child benefit and winter fuel payment charge),
b ITTOIA 2005 (which is about charges to tax on trading income, property income, savings and investment income and some other miscellaneous income), and
c this Act (which contains the other main provisions about income tax).
subsections (2) – (7) unchanged
Section 6(3)2 changes, 1 insertion
6 The basic rate, higher rate and additional rate
subsections (1)–(2) unchanged
3For other rates at which income tax is charged see—
za. . .
zbsection 6B (~~the Welsh basic, higher and additional rates~~the Welsh rates),
zcsection 6C (default basic, higher and additional rates),
zdsection 6D (property basic, higher and additional rates),
asection 7 (starting rate for savings and savings nil rate),
bsection 8 (Scottish rates),
csection 8A (trust rate, property trust rate, savings trust rate and dividend trust rate).

Section 6B1 change, 1 insertion

6B The Welsh basic, higher and additional amountsThe Welsh rates

1The Welsh basic rate, the Welsh higher rate and the Welsh additional rate for a tax year are calculated as follows. Step 1 Take the basic rate, higher rate or additional rate. Step 2 Deduct 10 percentage points. Step 3 Add the Welsh rate (if any) set by Senedd Cymru.

1AThe Welsh property basic rate, the Welsh property higher rate and the Welsh property additional rate for a tax year are calculated as follows. Step 1 Take the property basic rate, property higher rate or property additional rate. Step 2 Deduct 10 percentage points. Step 3 Add the Welsh rate (if any) set by Senedd Cymru for that year for the purpose of calculating the Welsh basic rate, the Welsh higher rate or the Welsh additional rate (as the case may be).

subsections (2)–(3) unchanged

Section 6B(1A)1 change

6B The Welsh rates

subsection (1) unchanged

1A The Welsh property basic rate, the Welsh property higher rate and the Welsh property additional rate for a tax year are calculated as follows.

Step 1
Take the property basic rate, property higher rate or property additional rate.
Step 2
Deduct 10 percentage points.
Step 3
~~Add the Welsh rate (if any) set by Senedd Cymru for that year for the purpose of calculating the Welsh basic rate, the Welsh higher rate or the Welsh additional rate (as the case may be).~~Add the Welsh rate (if any) set by Senedd Cymru for that year for the purpose of calculating the Welsh property basic rate, the Welsh property higher rate or the Welsh property additional rate (as the case may be).

subsection (2) unchanged

Section 6C1 insertion

6C [existing section]

section 6C unchanged

6D The property basic rate, the property higher rate and the property additional rate for a tax year are the rates determined as such by Parliament for the tax year.

Section 8(1)1 change

8 The dividend nil rate, dividend ordinary rate, dividend upper rate and dividend additional rate

subsection (A1) unchanged

1 The dividend ordinary rate is ~~8.75%~~10.75%.

subsections (2) – (3) unchanged

Section 8(2)1 change

8 The dividend nil rate, dividend ordinary rate, dividend upper rate and dividend additional rate

subsections (A1) – (1) unchanged

2 The dividend upper rate is ~~33.75%~~35.75%.

subsection (3) unchanged

Section 91 change, 2 insertions

9 The trust rate, property trust rate, savings trust rate and dividend trust rate

1The trust rate is 45%.

1AThe property trust rate is 47%.

1BThe savings trust rate is 47%.

2The dividend trust rate is 39.35%.

Section 10(4)1 insertion

10 Income charged at the basic, higher and additional rates: individuals

subsections (1)–(3A) unchanged

4This section is subject to—section 11A (income charged at Scottish rates), section 11B (income charged at the Welsh basic, higher and additional rates), section 11C (income charged at the default basic, higher and additional rates: non-UK resident individuals), section 11CA (income charged at the property basic, higher and additional rates: individuals), section 11CB (income charged at the Welsh property basic, higher and additional rates: individuals), and other provisions of the Income Tax Acts.

subsections (5)–(7) unchanged

Section 11(2)1 change, 1 insertion

11 Income charged at the default basic rate: non-individuals

1Income tax is charged at the default basic rate on the income of persons other than individuals.

2This section is subject to—section 11CC (income charged at the property basic rate: non-individuals), section 11DA (income charged at the savings basic rate: non-individuals), section 14 (income charged at the dividend ordinary rate: non-individuals), Chapters 3 to 5 of Part 9 (which provide for some income of trustees to be charged at ~~the trust rate or~~ the property trust rate, the savings trust rate or the dividend trust rate or the trust rate), and other provisions of the Income Tax Acts.

Section 11B3 changes, 1 deletion

11B Income charged at the Welsh basic, higher and additional rates

1Income tax is charged at the Welsh basic rate on the income of a Welsh taxpayer which—

ais ~~non-savings income~~neither property income nor savings income, and

bwould otherwise be charged at the basic rate.

2Income tax is charged at the Welsh higher rate on the income of a Welsh taxpayer which—

ais ~~non-savings income~~neither property income nor savings income, and

bwould otherwise be charged at the higher rate.

3Income tax is charged at the Welsh additional rate on the income of a Welsh taxpayer which—

ais ~~non-savings income~~neither property income nor savings income, and

bwould otherwise be charged at the additional rate.

4[provision omitted]

6~~Section 16 has~~Sections 16 and 16A have effect for determining the extent to which the income of a Welsh taxpayer would otherwise be charged at the basic, higher or additional rate and the extent to which it would otherwise be charged at the default rates. For this purpose the ~~non-savings income of a Welsh taxpayer~~income of a Welsh taxpayer which is neither property income nor savings income is treated as the lowest part of total income.

Section 11C1 insertion

11C [existing section]

section 11C unchanged

11CA Income charged at the property basic, higher and additional rates: individuals

1 Income tax is charged at the property basic rate on an individual’s income which is property income and would otherwise be charged at the basic rate or the default basic rate.

2 Income tax is charged at the property higher rate on an individual’s income which is property income and would otherwise be charged at the higher rate or the default higher rate.

3 Income tax is charged at the property additional rate on an individual’s income which is property income and would otherwise be charged at the additional rate or the default additional rate.

4 Subsections (1) to (3) are subject to section 11A (income charged at Scottish rates), section 11CB (income charged at the Welsh property basic, higher and additional rates: individuals), and any other provisions of the Income Tax Acts which provide for income to be charged at different rates of income tax in some circumstances.

5 Sections 16 and 16A have effect for determining the extent to which an individual’s property income would otherwise be charged at the basic, higher or additional rate or the default basic, default higher or default additional rate.

Section 11C(4)1 insertion

11C Income charged at the default basic, higher and additional rates: non-UK resident individuals

subsections (1)–(3) unchanged

4This section is subject to—section 11CA (income charged at the property basic, higher and additional rates: individuals), section 11D (income charged at the savings basic, higher and additional rates), and other provisions of the Income Tax Acts.

Section 11D1 change

11D Income charged at the savings basic, higher and additional rates: individuals

subsections (1)–(4) unchanged

Section 12B(8)2 changes

12B Individual's entitlement to a savings allowance

subsections (1)–(7) unchanged

8For the purposes of this section—

aeach of the following is “additional-rate income”—

iincome on which income tax is charged at the additional rate, property additional rate, default additional rate, savings additional rate, dividend additional rate, Scottish additional rate or Welsh additional rate,

paragraphs (ii) and (iii) unchanged

ivincome on which income tax is charged at the additional rate, property additional rate, default additional rate, savings additional rate, dividend additional rate, Scottish additional rate or Welsh additional rate as a result of section 465A;

beach of the following is “higher-rate income”—

iincome on which income tax is charged at the higher rate, property higher rate, default higher rate, savings higher rate, dividend upper rate, Scottish higher rate or Welsh higher rate,

paragraphs (ii) and (iii) unchanged

ivincome on which income tax is charged at the higher rate, property higher rate, default higher rate, savings higher rate, dividend upper rate, Scottish higher rate or Welsh higher rate as a result of section 465A.

Section 142 changes

14 Income charged at the dividend ordinary rate: other personsnon-individuals

1Income tax is charged at the dividend ordinary rate on the income of persons other than individuals which—

ais dividend income,

bwould otherwise be charged at ~~the basic rate~~the default basic rate, and

cis not relevant foreign income charged in accordance with section 832 of ITTOIA 2005.

subsection (2) unchanged

Section 152 changes

15 Income charged at the trust rate, the property trust rate, the savings trust rate and the dividend trust rate

1Income tax is charged at the trust rate, the property trust rate, the savings trust rate or the dividend trust rate instead of at the rates which would otherwise apply in the cases described in Chapters 3 to 5 of this Part.

subsections (2)–(3) unchanged

Section 161 insertion

16 [existing section]

section 16 unchanged

16A Treatment of property income in hierarchy of total income

1 This section has effect for determining (a) which part of a Scottish taxpayer’s income consists of property income, (b) the rate at which income tax would be charged on a person’s property income apart from section 11CA, and (c) the rate at which income tax would be charged on the property income of a Welsh taxpayer apart from section 11CB.

2 It also has effect for all other income tax purposes except for the purposes of sections 535 to 537 of ITTOIA 2005 (gains from contracts for life insurance etc: top slicing relief).

3 If a person has property income but no dividend income or savings income, the property income is treated as the highest part of the person’s total income.

4 If a person has property income and dividend income or savings income (or both), the property income is treated as the part of the person’s total income immediately before the savings income or, if the person does not have savings income, immediately before the dividend income.

Section 16(1)1 change

16 Savings and dividend income to be treated as highest part of total income

1This section has effect for determining—

zawhich part of a Scottish taxpayer's income consists of savings income,

zb~~the rate at which income tax would be charged on the non-savings income of a Welsh taxpayer apart from section 11B but taking into account the effect of section 16A,~~the rate at which income tax would be charged on the income of a Welsh taxpayer which is neither property income nor savings income apart from section 11B but taking into account the effect of section 16A,

remainder of subsection (1) and subsections (2)–(7) unchanged

Section 171 insertion

17 [existing section]

section 17 unchanged

17A Meaning of “property income”

1 This section applies for the purposes of the Income Tax Acts.

2 “Property income” is income which is chargeable under Chapter 3 of Part 3 of ITTOIA 2005 (the profits of a UK property business or an overseas property business), Chapter 7 of that Part (amounts treated as adjustment income under section 330), Chapter 8 of that Part (rent receivable in connection with a UK section 12(4) concern), Chapter 9 of that Part (rent receivable for UK electric-line wayleaves), and Chapter 10 of that Part (post-cessation receipts arising from a UK property business).

Section 18(4)2 changes

18 Meaning of “savings income”

subsections (1)–(3) unchanged

4Income is within this subsection if—

ait is chargeable under Chapter 9 of Part 4 of ITTOIA 2005 (gains from contracts for life insurance etc), and

ban individual is, or personal representatives or trustees is, or are, liable for tax on it under Chapter 9 of Part 4 of ITTOIA 2005 and sections 465, ~~or 466~~466 or 467 of ITTOIA 2005 apply.

Section 252 insertions

25 Reliefs and allowances deductible at Steps 2 and 3: supplementary

subsections (1) – (2) unchanged

3 The following provisions give priority to specific reliefs or allowances at Step 2 or 3—

existing list items unchanged

section 41P of ITEPA 2003 (qualifying foreign employment income);

section 845A of ITTOIA 2005 (qualifying foreign income).

remaining subsections unchanged

Section 251 insertion

25 Reliefs and allowances deductible at Steps 2 and 3: supplementary

subsections (1) – (3) unchanged

3A Subsection (2) is also subject to a requirement that the reliefs and allowances in Steps 2 and 3 must be deducted from components of income other than property income, savings income or dividend income (so far as it would otherwise be possible to do so) before they are deducted from property income, savings income or dividend income.

Section 302 insertions

30 Additional tax

1 The following provisions charge income tax—

existing list items unchanged

section 809ZMA (tainted donations: clawback where tainting occurs in later year),

section 809ZMB (tainted donations: associated donations)

subsection (2) amended identically; subsections (3)–(4) unchanged

Section 30(1)1 insertion

30 Additional tax

1 If the taxpayer is an individual, the provisions referred to at Step 7 of the calculation in section 23 are—

earlier list items unchanged

Chapter 8 of Part 10 of ITEPA 2003 (high income child benefit charge),

Chapter 9 of Part 10 of ITEPA 2003 (winter fuel payment charge),

remaining list items unchanged

subsections (2) onwards unchanged

Section 31(2)1 insertion

31 Total income: supplementary

1This section applies for the purposes of calculating total income.

2Income from which a deduction in respect of income tax is to be made (or treated as made) at the basic rate, the property basic rate, the savings basic rate, the Welsh basic rate or the Scottish basic rate is treated as a net amount corresponding to a gross amount from which income tax at that rate has been deducted.

subsections (3)–(5) unchanged

part-13-chapter-5F1 deletion

Chapter 5F Disguised investment management fees: carried interest

Chapter 5F of Part 13 of ITA 2007 (sections 809EZN onwards) — chapter omitted in full

Section 55B(2)2 insertions

55B Tax reduction: entitlement

2The conditions are that—

athe individual is the gaining party in the case of an election under section 55C which is in force for the tax year,

bthe individual is not, for the tax year, liable to tax at a rate other than the basic rate, the property basic rate, the default basic rate, the Scottish basic rate, the Welsh basic rate, the Welsh property basic rate, or the savings nil rate.

subsections (3)–(7) unchanged

Section 55C(1)2 insertions

55C Election to reduce personal allowance

1An individual may make an election for the purposes of section 55B if—

athe individual is married to, or in a civil partnership with, the same person (“the gaining party”) for the whole or part of the tax year and when the election is made, and

cthe individual is not liable to tax at a rate other than the basic rate, the property basic rate, the default basic rate, the Scottish basic rate, the Welsh basic rate, the Welsh property basic rate, or the savings nil rate for the tax year concerned.

subsections (2)–(5) unchanged

Section 58(4)1 change

58 Meaning of "adjusted net income"

subsections (1)–(3) unchanged

4 ~~This section is subject to section 809ZM(6) (which prevents tainted donations from being deducted at Step 2 in subsection (1)).~~This section is subject to section 809ZM(6) and section 809ZMB(3) (which prevent tainted donations and associated donations from being deducted at Step 2 in subsection (1)).

Section 173A(1)1 change

173A The maximum amount raised annually through risk finance investments requirement

1 The total amount of relevant investments made in the issuing company in the year ending with the date the relevant shares are issued must not exceed—
(a) if at that date the issuing company is a knowledge-intensive company (see section 252A and subsection (5A)), £10 million;
(b) in any other case, £5 million.
(a) if at that date the issuing company is a knowledge-intensive company (see section 252A and subsection (5A)) and—
   (i) not a specified Northern Ireland company, £20 million;
   (ii) a specified Northern Ireland company, £10 million, and
(b) if at that date the issuing company is not a knowledge-intensive company and—
   (i) not a specified Northern Ireland company, £10 million;
   (ii) a specified Northern Ireland company, £5 million.

subsections (2) onwards unchanged

Section 173AA(1)1 change

173AA Maximum risk finance investments at the issue date requirement

1 The total amount of relevant investments made in the issuing company at any time up to and including the issue date must not exceed—
(a) if at the issue date the issuing company is a knowledge-intensive company (see section 252A), £20 million;
(b) in any other case, £12 million.
(a) if at the issue date the issuing company is a knowledge-intensive company (see section 252A) and—
   (i) not a specified Northern Ireland company, £40 million;
   (ii) a specified Northern Ireland company, £20 million, and
(b) if at the issue date the issuing company is not a knowledge-intensive company and—
   (i) not a specified Northern Ireland company, £24 million;
   (ii) a specified Northern Ireland company, £12 million.

subsections (2) onwards unchanged

Section 173AB(4)1 change

173AB Maximum risk finance investments during period B requirement

subsections (1) – (3) unchanged

4 The total amount of relevant investments made in the issuing company during period B must not exceed—
(a) if at the issue date the issuing company is a knowledge-intensive company (see section 252A), £20 million;
(b) in any other case, £12 million.
(a) if at the issue date the issuing company is a knowledge-intensive company (see section 252A) and—
   (i) not a specified Northern Ireland company, £40 million;
   (ii) a specified Northern Ireland company, £20 million, and
(b) if at the issue date the issuing company is not a knowledge-intensive company and—
   (i) not a specified Northern Ireland company, £24 million;
   (ii) a specified Northern Ireland company, £12 million.

subsections (5) onwards unchanged

Section 175(1)1 change

175 The use of the money raised requirement

1 ~~The~~A requirement of this section is that all of the money raised by the issue of the relevant shares is employed wholly for the purposes of a qualifying business activity within two years of the relevant share issue.

subsection (1A) onwards unchanged

Section 175(1A)2 insertions

175 The use of the money raised requirement

subsections (1) – (1A) unchanged

1B Another requirement of this section is that, of the money raised by the issue of the relevant shares (other than any of them which are bonus shares), only such part of that money as could have been raised by an issue of shares falling within subsection (1C) is employed for the purposes of a qualifying business activity that is carried on by one or more specified Northern Ireland companies.

1C Shares fall within this subsection if the general requirements referred to in section 172 as they apply in relation to shares issued by a specified Northern Ireland company are met in respect of them.

remaining subsections unchanged

Section 1862 insertions

186 The gross assets requirement

A1 In the case of relevant shares issued by a single company that is not a specified Northern Ireland company, the value of the company’s gross assets— (a) must not exceed £30 million immediately before the relevant share issue, and (b) must not exceed £35 million immediately afterwards.

A2 In the case of relevant shares issued by a parent company that is not a specified Northern Ireland company, the value of the group assets— (a) must not exceed £30 million immediately before the relevant share issue, and (b) must not exceed £35 million immediately afterwards.

subsections (1) – (2) unchanged (as amended by subsections (b) and (c) of section 14)

Section 186(1)1 change

186 The gross assets requirement

subsections (A1) – (A2) unchanged

1 In the case of relevant shares issued by a single company that is a specified Northern Ireland company, the value of the company’s gross assets must not exceed [amount] immediately before the relevant share issue and must not exceed [amount] immediately afterwards.

subsection (2) onwards unchanged

Section 186(2)1 change

186 The gross assets requirement

subsections (A1) – (1) unchanged

2 In the case of relevant shares issued by a parent company that is a specified Northern Ireland company, the value of the group assets must not exceed [amount] immediately before the relevant share issue and must not exceed [amount] immediately afterwards.

Section 256A1 insertion

256A [existing section]

section 256A unchanged

256B Meaning of “specified Northern Ireland company”

For the purposes of this Part, a “specified Northern Ireland company” means a company that— (a) has its registered office in Northern Ireland, and (b) carries on a trade involving— (i) a trade in goods, or (ii) the generation, transmission, distribution, supply, wholesale trade or cross-border exchange of electricity.

Section 263(2)1 change

263 Form and amount of relief

subsection (1) unchanged

2 The tax reduction is equal to ~~30%~~20% of the amount in respect of which the claim is made.

subsection (3) unchanged

Section 292A(1)1 change

292A The maximum amount raised annually through risk finance investments requirement

1 The total amount of relevant investments made in the relevant company in the year ending with the investment date must not exceed—
(a) if at that date the relevant company is a knowledge-intensive company, £10 million;
(b) in any other case, £5 million.
(a) if at that date the relevant company is a knowledge-intensive company (see section 331A and subsection (6A)) and—
   (i) not a specified Northern Ireland company, £20 million;
   (ii) a specified Northern Ireland company, £10 million, and
(b) if at that date the relevant company is not a knowledge-intensive company and—
   (i) not a specified Northern Ireland company, £10 million;
   (ii) a specified Northern Ireland company, £5 million.

subsections (2) onwards unchanged

Section 292AA(1)1 change

292AA Maximum risk finance investments when relevant holding is issued requirement

1 The total amount of relevant investments made in the relevant company at any time up to and including the investment date must not exceed—
(a) if at the investment date the relevant company is a knowledge-intensive company, £20 million;
(b) in any other case, £12 million.
(a) if at the investment date the relevant company is a knowledge-intensive company (see section 331A) and—
   (i) not a specified Northern Ireland company, £40 million;
   (ii) a specified Northern Ireland company, £20 million, and
(b) if at the investment date the relevant company is not a knowledge-intensive company and—
   (i) not a specified Northern Ireland company, £24 million;
   (ii) a specified Northern Ireland company, £12 million.

subsections (2) onwards unchanged

Section 292AB(4)1 change

292AB Maximum risk finance investments during the 5-year post-investment period requirement

subsections (1) – (3) unchanged

4 The total amount of relevant investments made in the relevant company during the 5-year post-investment period must not exceed—
(a) if at the investment date the relevant company is a knowledge-intensive company, £20 million;
(b) in any other case, £12 million.
(a) if at the investment date the relevant company is a knowledge-intensive company (see section 331A) and—
   (i) not a specified Northern Ireland company, £40 million;
   (ii) a specified Northern Ireland company, £20 million, and
(b) if at the investment date the relevant company is not a knowledge-intensive company and—
   (i) not a specified Northern Ireland company, £24 million;
   (ii) a specified Northern Ireland company, £12 million.

subsections (5) onwards unchanged

Section 293(1)1 change

293 The use of the money raised requirement

1 ~~The~~A requirement of this section is that all of the money raised by the issue of the relevant holding is employed wholly for the purposes of a qualifying business activity within two years of the relevant holding being issued.

subsection (1A) onwards unchanged

Section 293(5A)2 insertions

293 The use of the money raised requirement

subsections (1) – (5A) unchanged

5B Another requirement of this section is that, of the money raised by the issue of the relevant holding, only such part of that money as could have been raised by an issue of shares and securities falling within subsection (5C) is employed for the purposes of a qualifying business activity that is carried on by one or more specified Northern Ireland companies.

5C Shares and securities fall within this subsection if the requirements in section 286(2) as they apply in relation to a relevant company that is a specified Northern Ireland company are met in respect of them.

remaining subsections unchanged

Section 2972 insertions

297 The gross assets requirement

A1 The requirement of this section in the case of a relevant company that is a single company and not a specified Northern Ireland company is that the value of the company’s gross assets— (a) did not exceed £30 million immediately before the issue of the relevant holding, and (b) did not exceed £35 million immediately afterwards.

A2 The requirement of this section in the case of a relevant company that is a parent company and not a specified Northern Ireland company is that the value of the group assets— (a) did not exceed £30 million immediately before the issue of the relevant holding, and (b) did not exceed £35 million immediately afterwards.

subsections (1) – (2) unchanged (as amended by subsections (b) and (c) of section 15)

Section 297(1)1 change

297 The gross assets requirement

subsections (A1) – (A2) unchanged

1 In the case of a relevant company that is a single company and a specified Northern Ireland company, the value of the company’s gross assets must not exceed [amount] immediately before the issue of the relevant holding, and must not exceed [amount] immediately afterwards.

subsection (2) onwards unchanged

Section 297(2)1 change

297 The gross assets requirement

subsections (A1) – (1) unchanged

2 In the case of a relevant company that is a parent company and a specified Northern Ireland company, the value of the group assets must not exceed [amount] immediately before the issue of the relevant holding, and must not exceed [amount] immediately afterwards.

Section 331B1 insertion

331B [existing section]

section 331B unchanged

331C Meaning of “specified Northern Ireland company”

Section 399B(3)2 changes

399B Property partnerships: tax reduction for non-deductible loan interest

subsections (1)–(2) unchanged

3The amount of the relief is given by BRPBR × the relievable amount where BRPBR is the ~~basic rate~~property basic rate of income tax for the year.

Section 413(4A)1 change

413 Gift aid: overview

subsections (1)–(4) unchanged

4A This Chapter is subject to ~~section 809ZM~~sections 809ZM and 809ZMB of this Act (removal of relief in respect of tainted charity donations).

subsections (5)–(7) unchanged

Section 425(5)(a)1 deletion

425 Total income tax to which individual is charged

subsections (1)–(4) unchanged

5 From the amount calculated in accordance with subsections (2) to (4) deduct—

a any tax treated as having been paid under—

i ~~section 399 of ITTOIA 2005 (tax treated as paid on distributions received by non-UK resident persons),~~

ii [unchanged] ...

remainder unchanged

Section 431(7)1 change

431 Gifts of shares, securities and real property to charities etc

subsections (1)–(6) unchanged

7 This section is subject to ~~section 809ZM~~sections 809ZM and 809ZMB of this Act (removal of relief in respect of tainted charity donations).

Section 462(3)1 insertion

462 Overview of Part

subsections (1)–(2) unchanged

3Chapter 3 provides for income tax to be charged at the property trust rate, the savings trust rate or the dividend trust rate or at the trust rate on certain amounts included in the net income of the trustees of a settlement.

subsections (4)–(12) unchanged

Section 4632 changes

463 Interpretation of Part

1In this Part—“other income” means income which is ~~neither savings income nor dividends income~~not property income, dividends income or savings income, and “the trustees of a settlement” does not include personal representatives.

2References in this Part to the trust rate income for a tax year of the trustees of a settlement are references to the trustees’ net income for the tax year so far as it includes amounts on which income tax is charged at the property trust rate, the savings trust rate or the dividend trust rate, or at the trust rate.

Section 4792 insertions

479 Trustees’ accumulated or discretionary income to be charged at special rates

1This section applies if accumulated or discretionary income arises to the trustees of a settlement and the income does not arise under a charitable trust.

2Income tax is charged on the income at the rates referred to in this section instead of at the rates which would otherwise apply.

2AIncome tax is charged on the income at the property trust rate so far as the income is property income.

2BIncome tax is charged on the income at the savings trust rate so far as the income is savings income.

3Income tax is charged on the income at the dividend trust rate so far as the income is dividend income.

4Otherwise, income tax is charged on the income at the trust rate.

Section 4812 insertions

481 Other amounts to be charged at special rates for trustees

subsections (1)–(3) unchanged

3AIf the amount is within Type 2, 6 or 7 as set out in section 482, income tax is charged on the amount at the savings trust rate.

3BIf the amount is within Type 5 as set out in section 482, income tax is charged on the amount at the property trust rate.

4Otherwise, income tax is charged on the amount at the trust rate.

subsections (5)–(6) unchanged

Section 483(1)1 insertion

483 Sums paid by personal representatives to trustees

1This section applies if, during or at the end of the administration period for an estate—

athe personal representatives pay the trustees of a settlement a sum representing income of the personal representatives, and

bif this Chapter had applied to personal representatives, the sum would have been charged to income tax at the property trust rate, the savings trust rate or the dividend trust rate, or at the trust rate, or both.

subsections (2)–(3) unchanged

Section 4862 changes, 1 insertion

486 How allowable expenses are to be set against trust rate income

1Take the following steps to determine how the allowable expenses are to be set against the trustees’ trust rate income for the current tax year. Step 1 Reduce the allowable expenses by any excluded proportion. Step 2 Gross up by reference to the trust rate so much of the remaining expenses as is necessary to give a result equal to the savings income, property income or other income. ...Step 5 If there are remaining expenses and there is savings income—gross up by reference to ~~the basic rate~~the savings basic rate so much of the remaining expenses as is necessary to give a result equal to the amount of that income, or, if there are not enough remaining expenses, gross up all remaining expenses by reference to the savings basic rate. Step 5A If there are remaining expenses and there is property income—gross up by reference to the property basic rate so much of the remaining expenses as is necessary to give a result equal to the amount of that income, or, if there are not enough remaining expenses, gross up all remaining expenses by reference to the property basic rate.

subsections (2)–(3) unchanged

Section 503(2)1 change, 1 insertion

503 How beneficiary's income is reduced

1This section applies if the beneficiary's income is to be reduced for income tax purposes by expenses of the trustees.

2The beneficiary's income is to be reduced in the following order—first, reduce dividend income within subsection (3) (if any), second, reduce dividend income not within that subsection (if any), third, reduce savings income (if any), ~~and~~ fourth, reduce ~~other income (if any)~~property income (if any), and fifth, reduce other income (if any).

subsections (3)–(5) unchanged

Section 518(1)1 change

518 Overview of Part

1 This Part makes provision about some gifts and payments made to charitable trusts, including provision imposing charges to income tax and conferring exemptions from those charges (see sections 520 to ~~523~~523A).

subsections (2) – (6) unchanged

Section 5231 insertion

523 Gifts entitling donor to gift aid relief

section 523 unchanged

523A Legacies: income tax liability and exemption

1 This section applies to a gift of property—

a that is made by will to a charitable trust, and

b that is not charged to income tax, apart from this section.

2 Income tax is charged on the gift.

3 It is charged on the total value of the property so received in the tax year; and for that purpose the value of any property other than money is its market value as at the time of the death of the person by whose will the gift of the property is made.

4 But property is not taken into account in calculating total income so far as it is applied to charitable purposes only.

5 The trustees of the charitable trust are liable for any tax charged under this section.

6 A gift of property made to a charitable trust is treated for the purposes of this section as made by will if—

a the gift is made to the trust by virtue of the variation, after a person's death, of a disposition of property effected by the person's will, and

b the variation is treated under section 142 of IHTA 1984 (alteration of dispositions taking effect on death) as having been effected by the deceased.

7 In this section—“property” includes rights and interests of any description; “will” includes a testament, a codicil and any testamentary disposition of property.

Section 5581 change, 2 insertions

558 Approved charitable investments

1 For the purposes of section 543 “approved charitable investment” means an investment—

a that is of a type listed in subsection (2) and is made for an allowable purpose, or

b that is not of a type listed in subsection (2) but that is approved under subsection (3).

2 ~~For the purposes of section 543 “approved charitable investment” means an investment of one of the following types—~~The following are the types of investment mentioned in subsection (1)(a)—

Types 1 – 11 unchanged; Type 12 omitted

3 An officer of Revenue and Customs may approve a loan or other investment under this subsection if satisfied, on a claim, that it is made for an allowable purpose.

4 For the purposes of this section an investment is made “for an allowable purpose” if it is reasonable to draw the conclusion, from all the circumstances of the case, that the investment is made—

a for the sole purpose of benefiting the charitable trust, or

b for that purpose and one or more ancillary or incidental purposes,

and is not made for the avoidance of tax (whether by the trust or any other person).

Section 733(2B)1 deletion

733 Benefits charge: amount of deemed income

subsections (1)–(2A) unchanged

2B For the purposes of subsection (1), if in a tax year—

a income is treated as arising to an individual under section 721, 728 or 732, and

b the income is identified as qualifying foreign income on a foreign income claim,

the amount of income treated as arising ~~under section 731~~ to an individual under section 732(2) for the tax year is to be reduced by [amount].

remainder unchanged

Section 733(2B)(a)1 change

733 Benefits charge: amount of deemed income

subsections (1)–(2A) unchanged

2B For the purposes of subsection (1), if in a tax year—

a income is treated as arising to an individual under ~~section 732(2)~~section 721, 728 or 732, and

b the income is identified as qualifying foreign income on a foreign income claim,

remainder unchanged

Section 734(5)1 deletion

734 Reduction in amount charged: previous capital gains tax charge

subsections (1) – (4) unchanged

5 References in this section to chargeable gains treated as accruing to an individual include offshore income gains treated as arising to the individual (see regulations ~~20 and~~ 22 to 24 of the Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001)).

Section 809EZA6 changes, 3 deletions

809EZA Disguised investment management fees: charge to income tax

subsections (1) – (2) unchanged

2A . . . [carried interest adjustment — omitted]

2B . . . [carried interest adjustment — omitted]

2C . . . [carried interest adjustment — omitted]

subsections (3) – (5) unchanged

6 In this Chapter "investment scheme" means—
a a collective investment scheme, or
b ~~[previous paragraph (b) text]~~an AIF within the meaning of regulation 3 of the Alternative Investment Fund Managers Regulations 2013, or any part of an AIF (within that meaning), that is not a collective investment scheme.

7 ~~In subsection (6) "collective investment scheme" includes~~The references in subsection (6) to a collective investment scheme or AIF include—
a arrangements which permit an external investor to participate in investments acquired by the ~~scheme~~collective investment scheme or AIF without participating in the ~~scheme~~scheme or AIF itself, and
b arrangements under which sums arise to an individual performing investment management services in respect of the ~~scheme~~collective investment scheme or AIF without those sums arising from the ~~scheme~~scheme or AIF.

Section 809EZB1 change, 4 insertions, 1 deletion

809EZB Meaning of "management fee" in section 809EZA

1 Subject as follows, for the purposes of section 809EZA "management fee" means any sum (including a sum in the form of a loan or advance or an allocation of profits) except so far as the sum constitutes—
a a repayment (in whole or part) of an investment made directly or indirectly by the individual, or a person who is connected with the individual, in the scheme,
b an arm's length return on an investment made directly or indirectly by the individual, or a person who is connected with the individual, in the scheme~~, or~~;
c carried interest within the meaning of section 23I of ITTOIA 2005 arising to the individual for the purposes of that section., or
d a sum that would fall within paragraph (c) had it not been deferred as specified in paragraph 9(2)(a) or (b) of Schedule A1 to ITTOIA 2005.

2 For the purposes of subsection (1)(b) a return on an investment is "an arm's length return" if (and only if) — [subsections (2) – (4) unchanged]

5 Section 993 (meaning of "connected") applies for the purposes of this section, but as if—
a subsection (4) of that section were omitted, and
b partners in a partnership in which the individual is also a partner were not "associates" of the individual for the purposes of sections 450 and 451 of CTA 2010 ("control").

Section 809EZC2 deletions

809EZC Disguised investment management fees: carried interest

section omitted

809EZD Disguised investment management fees: co-investment

section omitted

Section 809EZDA(1)2 deletions

809EZDA Sums arising to connected persons other than companies

1 This section applies in relation to an individual ("A") if—
a a sum arises to a person ("B") who is connected with A,
b B is not a company,
~~c [carried interest condition — omitted],~~
~~d [carried interest condition — omitted],~~
e the sum does not arise to A apart from this section.

subsections (2) – (4) unchanged

Section 809EZDB4 changes, 1 insertion

809EZDB Sums arising to connected company or unconnected person

1 This section applies in relation to an individual ("A") if—
a a sum arises to— i a company connected with A, or ii a person not connected with A,
b any of the enjoyment conditions isare met, and
c the sum does not arise to A apart from this section.

subsections (2) – (4) unchanged

5 In determining whether any of the enjoyment conditions isare met in relation to a sum or part of a sum—
a regard must be had to the substantial result and effect of all the relevant circumstances, and
b all benefits which may at any time accrue to a person as a result of the sum arising as specified in subsection (1)(a) must be taken into account.

6 The enjoyment condition in subsection (2)(b), (c) or (d) is to be treated as not met if it would be met only by reason of A or a person connected with A holding shares or an interest in shares in a company.

7 The enjoyment condition in subsection (2)(a) or (e) is to be treated as not met if the sum referred to in subsection (1)(a) arises to ~~a person connected with A~~a company connected with A or a person not connected with A and— [conditions (a) and (b) unchanged]

subsection (8) unchanged

9 The condition in subsection (8)(b) is to be regarded as met in a case where—
[previous text: the sum is applied directly or indirectly as an investment in an investment scheme, and the persons providing investment management services to both schemes are the same or substantially the same]a the sum arose from an investment scheme,
b the sum is applied directly or indirectly as an investment in an investment scheme, and
c the persons providing investment management services to the schemes mentioned in paragraphs (a) and (b) are the same or substantially the same.

subsection (10) unchanged

Section 809EZE3 changes, 2 insertions

809EZE Interpretation of Chapter

1 In this Chapter—
… "investment management services", in relation to an investment scheme, includes—
za the provision of investment advice,
a seeking funds for the purposes of the scheme from participants or potential participants,
b researching potential investments to be made for the purposes of the scheme,
c acquiring, managing or disposing of property for the purposes of the scheme, ~~and~~
d acting for the purposes of the scheme with a view to assisting a body in which the scheme has made an investment to raise funds, and
e any activity incidental or ancillary to any activity mentioned in paragraphs (za) to (d); …

subsection (2) unchanged

3 For the purposes of subsection (2) a person who holds a ~~share in an investment scheme~~direct or indirect interest in an investment scheme and who acquired the ~~share~~interest from a person other than the scheme is to be taken to have made a contribution towards the property subject to the scheme equal to—
a the consideration given by the person for the acquisition of the ~~share~~interest, or
b if less, the market value of the ~~share~~interest at the time of the acquisition.

subsection (4) unchanged

Section 809EZH(1)1 deletion

809EZH Powers to amend Chapter

1 The Treasury may by regulations amend this Chapter—
a so as to change the definition of "investment scheme" for the purposes of this Chapter;
b so as to change the definition of "participant" for those purposes;
~~c so as to change the definition of "carried interest" for those purposes.~~

subsections (2) – (5) unchanged

Section 809Q(9)1 deletion

809Q Mixed fund transfers: supplementary

subsections (1) – (8) unchanged

9 For the purposes of this section a payment or transfer is a qualifying payment or transfer if—

a ~~[paragraph (a) omitted]~~

b it is not a payment or transfer made in the period in ~~that Part of that Schedule~~Part 1 of Schedule 10 to FA 2025 to which section ~~8(7)~~8(7) of that Schedule applies.

Section 809Q(9)(b)1 change

809Q Mixed fund transfers: supplementary

subsections (1) – (8) unchanged; subsection (9) paragraph (a) already omitted:

b it is not a payment or transfer made in the period in ~~that Part of that Schedule~~Part 1 of Schedule 10 to FA 2025 to which section 8(7) applies.

Section 809Q(9)(b)1 insertion

809Q Mixed fund transfers: supplementary

subsections (1) – (8) unchanged; subsection (9) paragraph (a) omitted, paragraph (b) amended:

b it is not a payment or transfer made in the period in Part 1 of Schedule 10 to FA 2025 to which section 8(7) of that Schedule applies.

Section 809ZH(2)1 change

809ZH Overview of Chapter

subsection (1) unchanged

2 See ~~section 257A~~sections 257A and 257B of TCGA 1992 and Part 21C of CTA 2010 for the removal of entitlement to other reliefs where a person makes a relievable charity donation which is a tainted donation.

Section 809ZI(3)(b)1 change

809ZI Relievable charity donations

subsections (1)–(2) unchanged

3 "The tainted donation provisions" are—

a this Chapter,

b ~~section 257A~~sections 257A and 257B of TCGA 1992 (tainted charity donations: disapplication of section 257), and

c Part 21C of CTA 2010 (tainted charity donations: removal of corporation tax reliefs).

subsections (4)–(5) unchanged

Section 809ZJ(1)1 insertion

809ZJ Tainted donations

1 For the purposes of this Chapter, a relievable charity donation

a is a tainted donation if (and only if) Conditions A, B and C are met, and

b becomes a tainted donation at the earliest time when all those conditions are met.

subsections (2)–(10) unchanged

Section 809ZJ(10)1 change

809ZJ Tainted donations

subsections (1)–(9) unchanged

10 "Financial ~~advantages~~assistance" means financial ~~advantages~~assistance provided—

paragraphs (a)–(b) unchanged

Section 809ZJ(2)(b)1 insertion

809ZJ Tainted donations

subsection (1) unchanged

2 Condition A is that—

a a linked person enters into arrangements (whether before or after the donation is made), and

b it is reasonable to assume from either or both of—

i the likely effects of the donation and the arrangements as at the later of the time when the donation is made and the time when the arrangements are entered into, and

ii the circumstances in which the donation is made and the circumstances in which the arrangements are entered into,

that the donation would not have been made and the arrangements would not have been entered into independently of one another.

subsections (3)–(10) unchanged

Section 809ZJ(4)1 change

809ZJ Tainted donations

subsections (1)–(3) unchanged

4 "Relevant time" means ~~a time~~any time after the earliest of the following times—

paragraphs (a)–(b) unchanged

subsections (5)–(10) unchanged

Section 809ZJ(5)2 changes

809ZJ Tainted donations

subsections (1) – (4) unchanged

5 Condition B is that a linked person who is not a charity receives financial assistance—~~by reason of the donation.~~

a under or in connection with the arrangements, and

b directly or indirectly from the charity to which the donation is made or from a connected charity.

subsections (6) – (7) unchanged

8 In this section—“financial assistance” includes a loan, a guarantee, an indemnity or any form of investment (in each case, whether or not on arm's length terms); ...

Section 809ZJ(8)2 changes

809ZJ Tainted donations

subsections (1)–(7) unchanged

8 In this section— "qualifying charity-owned company", in relation to a relievable charity donation, means a company that is a charity and in which a ~~potentially advantaged person~~linked person has a substantial interest (see subsection (9)); "relevant housing provider" means a body which is a ~~potentially advantaged person~~linked person for the purposes of this section and is a registered provider of social housing or registered social landlord within the meaning of subsection (10).

subsections (9)–(10) unchanged

Section 809ZK1 deletion

809ZK Circumstances in which financial advantage deemed to be obtained

entire section omitted

Section 809ZL1 change

809ZL Certain financial advantagesassistance to be ignored

subsections (1)–(6) unchanged

Section 809ZL1 insertion

809ZL Certain financial assistance to be ignored

subsections (1)–(2) unchanged

2A Financial assistance is within this subsection if it constitutes a payment made by a charity, on arm's length terms, in respect of—

a work carried out by a person for or on behalf of the charity, or

b expenses incurred by a person in the course of such work.

subsections (3)–(6) unchanged

Section 809ZL(1)2 changes

809ZL Certain financial assistance to be ignored

1 When determining whether a relievable charity donation is a tainted donation, ~~a financial advantage~~financial assistance within subsection ~~(2)~~(2A), (3), (4) or (5) is to be ignored.

subsections (2)–(6) unchanged

Section 809ZL(2)1 deletion

809ZL Certain financial assistance to be ignored

subsection (1) unchanged

2 A financial advantage is within this subsection if it consists of a payment of money to the donor or a connected person for goods or services which are provided to the charity on arm's length terms.

subsections (3)–(6) unchanged

Section 809ZL(3)3 changes

809ZL Certain financial assistance to be ignored

subsections (1)–(2A) unchanged

3 ~~A financial advantage~~Financial assistance is within this subsection if (ignoring the tainted donation provisions) it is—

paragraphs (a)–(b) unchanged

4 ~~A financial advantage~~Financial assistance is within this subsection if (ignoring the tainted donation provisions)—

paragraphs (a)–(b) unchanged

5 ~~A financial advantage~~Financial assistance is within this subsection if—

paragraphs (a)–(c) unchanged

subsection (6) unchanged

Section 809ZL(4)(b)2 changes

809ZL Certain financial assistance to be ignored

subsections (1)–(3) unchanged

4 Financial assistance is within this subsection if (ignoring the tainted donation provisions)—

a the relievable charity donation is a disposal in respect of which tax relief would be available under Chapter 3 of Part 8 of this Act or Chapter 3 of Part 6 of CTA 2010, and

b ~~the advantage~~the assistance is a benefit the value of which would be taken into account in determining the relievable amount in respect of the disposal.

5 Financial assistance is within this subsection if—

paragraph (a) unchanged

b ~~the advantage~~the assistance consists of the charitable instalment referred to in paragraph (a).

subsection (6) unchanged

Section 809ZL(6)1 insertion

809ZL Certain financial assistance to be ignored

subsections (1)–(5) unchanged

6 In this section— "financial assistance" has the same meaning as in section 809ZJ; "linked person" has the meaning given by section 809ZJ(3).

Section 809ZM1 change

809ZM Removal of income tax relief in respect of tainted donations etcwhere donation becomes tainted in same tax year

subsections (1)–(8) unchanged

Section 809ZM2 insertions

809ZM Removal of income tax relief where donation becomes tainted in same tax year

section 809ZM unchanged

809ZMA Clawback of income tax relief where donation becomes tainted in later tax year

1 This section applies where a person makes a relievable charity donation in a tax year ("the donation year"), the donation becomes a tainted donation in a later tax year ("the tainting year"), and if the donation had become a tainted donation in the donation year, the person's liability to income tax for the donation year would have been greater than it in fact was.

2 Income tax is charged under this section, for the tainting year, of an amount equal to the difference between the income tax for which the person would have been liable for the donation year had the donation become tainted in that year, and the amount they were in fact liable for.

3 The person liable for tax charged under this section is the person who made the donation.

4 Section 101 of FA 2009 (late payment interest) has effect in relation to tax charged under this section as though the tax had become due and payable on 1 February in the tax year following the donation year.

809ZMB Removal or clawback of income tax relief for associated donations

1 This section applies where a person makes a relievable charity donation that becomes a tainted donation, and a person makes an associated donation in relation to the tainted donation.

2 If the tainted donation becomes a tainted donation before the end of the tax year in which the associated donation is made, any income tax relief that would otherwise be available in respect of the associated donation is not available.

subsections (3)–(9) inserted — see full text

Section 809ZM(1)1 change

809ZM Removal of income tax relief where donation becomes tainted in same tax year

1 ~~This section applies if a person makes a relievable charity donation which is a tainted donation.~~

1 This section applies where—

a a person makes a relievable charity donation, and

b the donation becomes a tainted donation in the same tax year in which it is made.

subsections (2)–(8) unchanged

Section 809ZM(3)1 deletion

809ZM Removal of income tax relief where donation becomes tainted in same tax year

subsections (1)–(2) unchanged

3 Subsections (1) and (2) have effect in relation to a relievable charity donation which becomes a tainted donation after being made as if the donation were a tainted donation at the time it was made.

subsections (4)–(8) unchanged

Section 809ZM(4)4 deletions

809ZM Removal of income tax relief where donation becomes tainted in same tax year

subsections (1)–(3) unchanged

4 In this section— ~~"associated donation" has the meaning given by section 809ZMB(9);~~ "income tax relief" means any income tax relief or repayment of income tax; ~~"qualifying charity-owned company" has the meaning given by section 809ZJ(8);~~ ~~"relevant housing provider" has the meaning given by section 809ZJ(8);~~ ~~"the relevant arrangements" means the arrangements by reference to which Conditions A and B are met.~~

subsections (5)–(8) unchanged

Section 809ZN(1)1 change, 1 insertion

809ZN Income tax charge where gift aid is withdrawn

1 This section applies if—

a a gift aid payment is made and the payment is a ~~tainted donation~~relievable charity donation,

aa the donation becomes a tainted donation (whether in that tax year or a later tax year),

b the charity repays all or part of the associated basic rate tax credit to an officer of Revenue and Customs,

c it does so because the donation is a tainted donation, and

d the repayment is of the full basic rate tax credit associated with the payment.

subsections (2)–(7) unchanged

Section 809ZN(2)1 insertion

809ZN Income tax charge where gift aid is withdrawn

subsections (1)–(2) unchanged

2A Tax charged under this section is charged for the tax year in which the donation mentioned in subsection (1)(a) becomes a tainted donation.

subsections (3)–(7) unchanged

Section 809ZN(4)1 change

809ZN Income tax charge where gift aid is withdrawn

subsections (1)–(3) unchanged

4 The persons who are jointly and severally liable for the charge under this section are—

a the persons who made the tainted donation,

b the charity,

c ~~each potentially advantaged person in relation to the tainted donation~~each linked person (as defined in section 809ZJ(3)) by reference to whom Condition B in section 809ZJ(5) is met in relation to the tainted donation,

d persons who are trustees of a settlement if, in connection with the arrangements by reference to which the donation is a tainted donation, a linked person is or has been a beneficiary of the settlement.

subsections (5)–(7) unchanged

Section 809ZN(5)1 change

809ZN Income tax charge where gift aid is withdrawn

subsections (1)–(4) unchanged

5 A person who is jointly and severally liable by virtue of subsection (4) is not liable if they show that—

a they did not enter into ~~the relevant arrangements relating to~~the arrangements by reference to which Conditions A and B in section 809ZJ are met in relation to the tainted donation, and

b they were not aware, and could not reasonably have been expected to be aware, that the donation was a tainted donation.

subsections (6)–(7) unchanged

Section 809ZN(5)1 change

809ZN Income tax charge where gift aid is withdrawn

subsections (1)–(4) unchanged

5 A person who is jointly and severally liable by virtue of subsection (4) is not liable if they show that—

a they did not enter into the arrangements by reference to which Conditions A and B in section 809ZJ are met in relation to the tainted donation, and

b ~~they were not aware, and could not reasonably have been expected to be aware, that the donation was a tainted donation~~was aware or ought reasonably to have been aware, at the time it entered into those arrangements, that Condition B in section 809ZJ was or would be met by reference to the arrangements.

subsections (6)–(7) unchanged

Section 809ZN(7)1 change

809ZN Income tax charge where gift aid is withdrawn

subsections (1)–(6) unchanged

7 In this section— "associated donation" has the meaning given by section ~~809ZM~~809ZMB; "gift aid payment" means a payment which is a qualifying donation within the meaning of Chapter 2 of Part 8 of this Act (gift aid); "linked person" has the meaning given by section 809ZJ(3).

Section 809ZN(7)1 deletion

809ZN Income tax charge where gift aid is withdrawn

subsections (1)–(6) unchanged

7 In this section— "associated donation" has the meaning given by section 809ZMB; "gift aid payment" means a payment which is a qualifying donation within the meaning of Chapter 2 of Part 8 of this Act; "linked person" has the meaning given by section 809ZJ(3); ~~"the relevant arrangements" means the arrangements by reference to which Conditions A and B in section 809ZJ are met.~~

Section 809ZO(1)1 change, 1 insertion

809ZO Income tax charge where payment of trust income to charity

1 This section applies if—

a trustees of a settlement make a payment to a charity that is a ~~tainted donation~~relievable charity donation,

aa the donation becomes a tainted donation (whether in that tax year or a later tax year),

b the charity is entitled to claim a repayment of income tax in respect of the payment under section 520 of ITTOIA 2005, and

c the charity repays the income tax to an officer of Revenue and Customs because the payment is a tainted donation.

subsections (2)–(7) unchanged

Section 809ZO(2)1 insertion

809ZO Income tax charge where payment of trust income to charity

subsections (1)–(2) unchanged

2A Tax charged under this section is charged for the tax year in which the donation mentioned in subsection (1)(a) becomes a tainted donation.

subsections (3)–(7) unchanged

Section 809ZO(4)1 change

809ZO Income tax charge where payment of trust income to charity

subsections (1)–(3) unchanged

4 The persons who are jointly and severally liable for the charge under this section are—

a the trustees of the settlement,

b the charity,

c each linked person (as defined by section 809ZO(6)) who is a beneficiary of the settlement at the time the payment is made,

d ~~each potentially advantaged person in relation to the tainted donation~~each linked person (as defined in section 809ZJ(3)) by reference to whom Condition B in section 809ZJ(5) is met in relation to the tainted donation,

e persons who are trustees of any other settlement if a linked person is or has been a beneficiary of the settlement in connection with the relevant arrangements.

subsections (5)–(7) unchanged

Section 809ZO(5)1 change

809ZO Income tax charge where payment of trust income to charity

subsections (1)–(4) unchanged

5 A person who is jointly and severally liable by virtue of subsection (4) is not liable if they show that—

a they did not enter into ~~the relevant arrangements relating to~~the arrangements by reference to which Conditions A and B in section 809ZJ are met in relation to the tainted donation, and

b they were not aware, and could not reasonably have been expected to be aware, that the donation was a tainted donation.

subsections (6)–(7) unchanged

Section 809ZO(5)1 change

809ZO Income tax charge where payment of trust income to charity

subsections (1)–(4) unchanged

5 A person who is jointly and severally liable by virtue of subsection (4) is not liable if they show that—

a they did not enter into the arrangements by reference to which Conditions A and B in section 809ZJ are met in relation to the tainted donation, and

b ~~they were not aware, and could not reasonably have been expected to be aware, that the donation was a tainted donation~~the charity was aware or ought reasonably to have been aware, at the time it entered into those arrangements, that Condition B in section 809ZJ was or would be met by reference to the arrangements.

subsections (6)–(7) unchanged

Section 809ZO(7)1 change

809ZO Income tax charge where payment of trust income to charity

subsections (1)–(6) unchanged

7 In this section— "associated donation" has the meaning given by section ~~809ZM~~809ZMB; "linked person" has the meaning given by section 809ZJ(3).

Section 809ZO(7)1 deletion

809ZO Income tax charge where payment of trust income to charity

subsections (1)–(6) unchanged

7 In this section— "associated donation" has the meaning given by section 809ZMB; "linked person" has the meaning given by section 809ZJ(3); ~~"the relevant arrangements" means the arrangements by reference to which Conditions A and B in section 809ZJ are met.~~

Section 812A3 insertions

812A Relevant investment income: temporary non-residents

subsections (1) – (4) unchanged

4A Where—
a. a company ("company A") makes a payment (including by way of a loan) to the individual in the non-resident year,
b. the individual is, at a relevant time, a material participator in, or is an associate of a material participator in, another company that is a close company ("company B"),
c. at the time the payment was made, company B controls (within the meaning of sections 450 and 451 of CTA 2010) company A, and
d. it is reasonable to suppose that the making of that payment is intended to avoid the amount of the payment being included in the individual's income for the non-resident year as relevant investment income,
the amount of the payment is to be treated as relevant investment income of the individual for the non-resident year.

4B [avoidance arrangements provision for investment income]

4C For the purposes of subsection (4B)(c) "arrangements" include any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).

remaining subsections unchanged

Section 812A1 insertion

812A Relevant investment income: temporary non-residents

subsections (1) – (4C) unchanged

4D Where tax of a similar character to income tax is payable by the individual under the law of a territory outside the United Kingdom on relevant investment income—
a. credit for any such tax paid by the individual is to be allowed against income tax chargeable in respect of the relevant investment income, and
b. the credit is to be given effect by treating the amount of the relevant investment income as reduced to such amount as would secure that so much of the credit is given as does not exceed the income tax chargeable in respect of the relevant investment income.

remaining subsections unchanged

Section 812A(11)1 deletion

812A Relevant investment income: temporary non-residents

subsections (1) – (10) unchanged

11 In this section—~~"trade profits of the distributing company" [definition omitted];~~
…

Section 812A(5)2 deletions

812A Relevant investment income: temporary non-residents

subsections (1) – (4D) unchanged

5 ~~[subsection (5) omitted]~~

6 ~~[subsection (6) omitted]~~

remaining subsections unchanged

Section 812A(8)1 deletion

812A Relevant investment income: temporary non-residents

subsections (1) – (7) unchanged

8 …

a ~~[paragraph (a) omitted]~~

remaining paragraphs unchanged

Section 814(6)1 deletion

814 Meaning of "disregarded transaction income"

subsections (1) – (5) unchanged

6 Income is not disregarded transaction income if the non-UK resident satisfies the 20% rule in section 819 or 835N.

subsection (7) unchanged

Section 816(1)2 deletions

816 Meaning of disregarded company income

1 For the purposes of this Chapter income arising to a non-UK resident company is "disregarded company income" if it is—

a disregarded savings and investment income (see section 825),

b disregarded annual payments (see section 826),

c ~~disregarded investment management income (see sections 827 to 830),~~

d ~~relevant disregarded income (see section 833),~~

e income of such other description as the Treasury may by regulations designate for the purposes of this section.

subsections (2) – (4) omitted in consequence

Section 817(1)1 change

817 The independent broker conditions

1 The independent broker conditions are met in relation to a transaction carried out on behalf of a non-UK resident by a broker in the United Kingdom ~~if—~~if conditions A to D are met.

subsections (2) – (5) unchanged

Section 817(6)1 deletion

817 The independent broker conditions

subsections (1) – (5) unchanged

6 Condition E is that the non-UK resident is not a company that has, or would have but for an exemption, a UK permanent establishment for the purposes of the Corporation Tax Acts in the tax year in question.

Section 818(5)1 deletion

818 The independent investment manager conditions

subsections (1) – (4) unchanged

5 Condition D is that the non-UK resident does not fail to satisfy the 20% rule in section 819.

subsection (6) unchanged

Section 8192 deletions

819 Investment managers: the 20% rule

entire section omitted

835N Investment managers: the 20% rule (non-UK resident companies without UK permanent establishment)

entire section omitted

Section 8205 deletions

820 Interpretation of section 819: basic definitions

entire section omitted

821 Interpretation of section 819: the non-UK resident's share

entire section omitted

822 Interpretation of section 819: investment in non-UK resident

entire section omitted

823 Interpretation of section 819: investment in investment manager

entire section omitted

824 Application of 20% rule to collective investment schemes

entire section omitted

Section 827(1)1 change

827 Meaning of "investment manager" and "investment transaction"

1 In this Chapter "investment manager" means a person who provides investment management services (which may include or comprise the provision of investment advice).

Section 827(2)2 changes

827 Meaning of "investment manager" and "investment transaction"

1 In this Chapter "investment manager" means a person who provides investment management services (which may include or comprise the provision of investment advice).

2 ~~In this Chapter "investment transaction" means a transaction of a description specified in an order made by the Treasury.~~An "investment transaction" means any transaction other than a transaction with an excluded subject matter.

3 ~~The Treasury may by order amend any provision of this Chapter so far as relating to investment transactions.~~The following are excluded subject matters—

a land in the United Kingdom, and

b any commodity or other physical asset.

subsections (4) – (5) inserted (excluded subject matter exceptions)

Section 835E(5)1 change

835E Branch or agency treated as UK representative

subsections (1) – (4) unchanged

5 This section needs to be read with sections 835G to ~~835K~~835J (which provide for descriptions of persons who are not to be regarded as the UK representative of a non-UK resident if certain conditions are met).

Section 835K1 deletion

835K Lloyd's agents

entire section omitted

Section 835M(5)1 deletion

835M The independent investment manager conditions

subsections (1) – (4) unchanged

5 Condition D is that the non-UK resident does not fail to satisfy the 20% rule in section 835N.

subsection (6) unchanged

Section 835O3 deletions

835O Interpretation of section 835N: basic definitions

entire section omitted

835P Interpretation of section 835N: the non-UK resident's share

entire section omitted

835Q Application of 20% rule to non-UK resident companies

entire section omitted

Section 835S(3)1 change

835S Interpretation of Chapter 2B of Part 14

subsections (1) – (2) unchanged

3 "Investment manager" ~~has the same meaning~~and "investment transaction" have the same meanings as in section 827.

Section 835S(4)1 deletion

835S Interpretation of Chapter 2B of Part 14

subsections (1) – (3) unchanged

4 "Investment transaction" ~~has the meaning given by subsection (2) of that section as applied by that subsection.~~

Section 874(2)1 change

874 Duty to deduct from certain payments of yearly interest

subsection (1) unchanged

2The person by or through whom the payment is made must, on making the payment, deduct from it a sum representing income tax on it at ~~the basic rate~~the savings basic rate in force for the tax year in which it is made.

subsections (3)–(7) unchanged

Section 889(4)1 change

889 Payments in respect of building society securities

subsections (1)–(3) unchanged

4The person by or through whom the payment is made must, on making it, deduct from it a sum representing income tax on it at ~~the basic rate~~the savings basic rate in force for the tax year.

subsections (5)–(7) unchanged

Section 919(2)1 change

919 Manufactured interest on UK securities: payments by UK residents etc

subsection (1) unchanged

2The payer of the manufactured interest must, on making the payment, deduct from the gross amount of the manufactured interest a sum representing income tax on it at ~~the basic rate~~the savings basic rate in force for the tax year in which the payment is made.

subsections (3)–(8) unchanged

Section 939(2)1 change

939 Duty to retain bonds where issue treated as payment of interest

subsection (1) unchanged

2The person by or through whom the bonds are issued must retain bonds the value of which is, at the time of their issue, equal to income tax on the deemed interest at ~~the basic rate~~the savings basic rate in force for the tax year in which the bonds are issued.

subsections (3)–(6) unchanged

Section 974(1)1 change

974 Regulations under section 973

1Regulations under section 973 may, in particular—

arequire a company to deduct sums representing income tax at ~~the basic rate~~the property basic rate before payment of distributions,

bspecify classes of shareholder to whom distributions may be made without deduction…

subsections (2)–(7) unchanged

Section 975A(4)1 change

975A Statements about certain payments of interest

subsections (1)–(3) unchanged

4Subsection (5) applies where a person—

ais treated as making a payment of an amount of interest (“the deemed interest”) by virtue of section 413 of CTA 2009 or section 380 of ITTOIA 2005 (funding bonds), and

bis under a duty under section 939(2) to retain funding bonds the value of which equals income tax on the deemed interest at ~~the basic rate~~the savings basic rate.

subsections (5)–(9) unchanged

Section 9891 insertion

989 Definitions

existing definitions unchanged; new definition inserted at appropriate place:

"foreign gain claim" means a claim under paragraph 1 of Schedule D1 to TCGA 1992,

remaining definitions unchanged

Section 10261 deletion

1026 Meaning of “non-qualifying income”

a ~~income to which section 399 of ITTOIA 2005 applies (tax treated as paid on distributions received by non-UK resident persons),~~

remaining paragraphs unchanged

Schedule 44 insertions

Schedule 4 — Index of defined expressions

existing entries unchanged; new entries inserted at appropriate places:

foreign employment election — section 989 (and see section 41M of ITEPA 2003)

foreign gain claim — section 989 (and see paragraph 1 of Schedule D1 to TCGA 1992)

foreign income claim — section 989 (and see section 845A of ITTOIA 2005)

qualifying new resident — section 989 (and see section 845B of ITTOIA 2005)

Schedule 41 deletion

Schedule 4 — Index of defined expressions

other index entries unchanged

~~potentially advantaged person (in Chapter 8 of Part 13) — section 809ZK(2)~~

Taxes Management Act 1970

21 amendments · open Act

Section 7(3)(c)1 insertion
7 Notice of liability to income tax and capital gains tax
subsections (1) – (2) unchanged
3 A person shall not be required to give notice under subsection (1) above in respect of a year of assessment if for that year—
a the person’s total income consists of income from sources falling within subsections (4) to (7) below,
b the person has no chargeable gains, and
c the person is not liable to an amount of tax under any provision listed in relation to the person in section 30 of ITA 2007 (additional tax) other than Chapter 9 of Part 10 of ITEPA 2003 (winter fuel payment charge).
subsections (4) – (7) unchanged
Section 7(6)1 change, 1 insertion
7 Notice of liability to income tax and capital gains tax
subsections (1)–(5) unchanged
6A source of income falls within this subsection in relation to any person and any year of assessment if all income from it for that year is—
aincome from which income tax has been deducted; or
bincome paid without deduction of tax which would otherwise be chargeable at a rate other than the basic rate, the property basic rate, the savings basic rate, the savings nil rate, the Welsh basic rate, the Welsh property basic rate, or the starting rate for savings.
6ZAA source of income falls within this subsection in relation to any person and any year of assessment if for that year—
aall income from the source is savings income (see section 18 of ITA 2007), and
bthe person is UK resident and is not liable to tax at the savings basic rate or any rate above it, or is not UK resident.
subsections (6A)–(9) unchanged
Section 8C3 changes, 1 deletion
8C Returns so far as relating to capital gains tax
1 A return must state—
a the amount of chargeable gains accruing to the person in the tax year, where—
i the person does not [remainder of original paragraph (a) text renumbered as (i)]
ii where the person is not entitled to the annual exempt amount for the tax year, is nil,
c ~~[omitted sub-paragraph (c)]~~
2 …for ~~to (c)~~and (b)…
4 ~~[subsection (4) omitted]~~
Section 48(2)(b)1 insertion
48 Application to appeals and other proceedings
subsection (1) unchanged
2In the case of—
aan appeal other than an appeal against an assessment, the following provisions of this Part of this Act shall, in their application to the appeal, have effect subject to any necessary modifications, including the omission of sections 54A to 54C and 56 below;
bany proceedings other than an appeal which, under the Taxes Acts, are to be subject to the relevant provisions of this Part of this Act, the relevant provisions—
ishall apply to the proceedings as they apply to appeals;
iibut shall, in that application, have effect subject to any necessary modifications, including (except in the case of applications under section 55 below or section 217K of TIOPA 2010) the omission of section 56 below.
subsection (3) unchanged
Section 49E1 insertion
49E Nature of review etc
subsections (1) – (5) unchanged
5ASee section 49EA concerning additional conclusions a review can reach in the case of penalties under Schedule 24 to the Finance Act 2021.
5BSee section 217N of TIOPA 2010 concerning the application of this section in the case of an assessment of a company's unassessed transfer pricing profits under Part 4A of that Act.
subsections (6) – (9) unchanged
Section 98C1 deletion
98C Notification under Part 7 of Finance Act 2004
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 100(2)1 deletion
100 Determination of penalties by officer of the Board
subsection (1) unchanged
2 Subsection (1) above does not apply where the penalty is a penalty under—
a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b section 94(1) above as it has effect before the substitution made by section 83 of the Finance (No. 2) Act 1987,
c section 98(1) above as it has effect before the amendments made by section 164 of the Finance Act 1989 or section 98(1)(i) above as it has effect after those amendments, subject to subsection (2A), or
d paragraph (a)(i) of section 98A(2) above as it has effect by virtue of section 165(2) of the Finance Act 1989, or
e section 98B(2)(a) above, or
f . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
g . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
subsections (2A) – (6) unchanged
Section 103A1 change
103A Interest on penalties
A penalty under any of the provisions of Part II, IV or VA or this Part of this Act ~~(other than section 98C)~~, or Schedule 18 to the Finance Act 1998, shall carry interest at the rate applicable under section 178 of the Finance Act 1989 from the date on which it becomes due and payable until payment.
Section 103ZA1 change
103ZA Disapplication of sections 100 to 103 in the case of certain penalties
paragraphs (a)–(f) unchanged
gSchedule 38 to FA 2012 (~~tax agents: dishonest conduct~~tax advisers: sanctionable conduct),
remaining paragraphs unchanged
Schedule A11 change
Schedule A1 — Digital reporting and record-keeping
text up to Part 1 heading unchanged
~~Part 1 — Persons to whom Schedule applies~~Part 1 — Introduction
remaining paragraphs unchanged
Schedule A11 insertion
Schedule A1 — Digital reporting and record-keeping: Part 1
Part 1 heading (as amended) unchanged
A1 1 This Schedule confers powers on the Commissioners to make regulations requiring or authorising certain persons and certain partnerships ("relevant persons" and "relevant partnerships") to take certain steps relating to digital reporting and record-keeping.
2 This Part of this Schedule contains introductory provision, in particular explaining what is meant by a "relevant person" and a "relevant partnership".
3 Part 2 of this Schedule contains the powers to make regulations and sets out the penalties for non-compliance with certain obligations which may be imposed by the regulations.
4 Part 3 of this Schedule contains provision about exempting relevant persons or relevant partnerships from requirements imposed by the regulations.
5 Part 4 of this Schedule contains supplementary provision.
Schedule A11 change
Schedule A1 — paragraph 7 (periodic updates)
1 The regulations may require a ~~person or partnership to whom this Schedule applies~~relevant person or relevant partnership to provide to HMRC, at such times and in such manner as may be specified in the regulations, such updates to information already provided as may be so specified.
Schedule A11 change
Schedule A1 — paragraph 10 (partnership return)
1 The regulations may require or authorise the use of electronic communications for the delivery by a ~~partnership to which this Schedule applies~~relevant partnership of a return required by section 12AA of this Act.
Schedule A11 change
Schedule A1 — paragraph 11 (record-keeping)
1 The regulations may require a ~~person or partnership to whom this Schedule applies~~relevant person or relevant partnership to keep and preserve records of a specified description.
Schedule A11 change
Schedule A1 — paragraph 18 (regulations)
3 Regulations under this Schedule which impose a requirement on a ~~person or partnership to whom this Schedule applies~~relevant person or relevant partnership may make different provision for different cases.
Schedule A12 insertions
Schedule A1 — paragraph 14 (exemption for the digital excluded)
1 The regulations may provide for relevant persons or relevant partnerships to be exempt from requirements imposed by the regulations if the Commissioners are satisfied that the person or partnership is digitally excluded.
1A The regulations may provide that where the Commissioners are satisfied that a person or partnership is digitally excluded, prior requirements imposed on the person or partnership are to be treated as never having been imposed.
1B In sub-paragraph (1A) "prior requirements" means requirements imposed by regulations under paragraphs 7, 9 and 11 which are required to be complied with before the date on which the Commissioners are satisfied that the person or partnership is digitally excluded.
sub-paragraphs (2) onwards unchanged
Schedule A11 insertion
Schedule A1 — paragraph 15 (further exemptions)
1 The regulations may make provision for further exemptions from requirements imposed by the regulations, including exemptions the conditions of which are to be taken to be satisfied only where the Commissioners are satisfied as to specified matters.
sub-paragraph (2) unchanged
Schedule A12 insertions
Schedule A1 — paragraph 15 (further exemptions)
sub-paragraphs (1) – (2) unchanged
3 The regulations may provide that where the conditions of a further exemption are met by a person or partnership, prior requirements imposed on the person or partnership are to be treated as never having been imposed.
4 In sub-paragraph (3) "prior requirements", in relation to a further exemption, means requirements imposed by regulations under paragraphs 7, 9 and 11 which are required to be complied with before the date on which the conditions of the further exemption are met.
Schedule A11 deletion
Schedule A1 — paragraph 8 (partnership return: electronic communications)
8 The regulations may require or authorise the use of electronic communications for the delivery by a relevant partnership of a return required by section 12AA of this Act (partnership return).
Schedule A11 insertion
Schedule A1 — paragraph 9 (Personal or trustee return etc)
Personal or trustee return etc

9 The Commissioners may by regulations require or authorise the use of electronic communications for the delivery by a relevant person of—
(a) a return required by section 8(1)(a) or 8A(1)(a) of this Act;
(b) any accounts, statements and documents required by section 8(1)(b) or 8A(1)(b) of this Act;
(c) a notice amending a return under section 9ZA of this Act.
Schedule A11 change
Schedule A1 — paragraph 14 (exemptions for the digitally excluded)
1 The regulations may provide for relevant persons or relevant partnerships to be exempt from requirements imposed by the regulations if the Commissioners are satisfied that the person or partnership is digitally excluded. In sub-paragraph (1)(a)—
(a) the reference to paragraph 89 is amended accordingly.

Taxation of Chargeable Gains Act 1992

35 amendments · open Act

Section 1H1 change, 6 deletions
1H The main rates of CGT
subsections (1) – (2) unchanged
3 Chargeable gains accruing in a tax year to an individual are charged to capital gains tax at a rate of 18% or 24% ~~other than carried interest gains (see subsections (4B) and (9) to (11))~~.
4 The question as to which of the rates applies to the gains concerned is determined by section 1I (income taxed at higher rates or gains exceeding unused basic rate band).
subsection (4A) unchanged
4B [Carried interest gains: 28% rate — omitted]
5 [Carried interest gains: supplementary — omitted]
6 ~~Other c~~Chargeable gains accruing in a tax year to the personal representatives of a deceased individual are charged to capital gains tax at a rate of 24%.
subsections (7) – (8) unchanged
9 [Carried interest gains: rate definition — omitted]
10 [Carried interest gains: definition — omitted]
11 [Carried interest gains: interpretation — omitted]
Section 1I(A1)1 deletion
1I Income taxed at higher rates or gains exceeding unused basic rate band
A1 [Carried interest gains: exclusion from section 1I — omitted]
subsections (1) – (9) unchanged
Section 1J1 change, 1 insertion
1J Section 1I: definitions and other supplementary provision
1For the purposes of section 1I—
a“higher income tax rate” means—the higher rate or the default higher rate,
abthe property higher rate,
bthe savings higher rate, or the dividend upper rate, and
remainder of subsection (1) unchanged
subsections (2)–(4) unchanged
5In the words after paragraph (c), after “the default higher rate” insert “, the property higher rate, the savings higher rate”.
subsections (6)–(8) unchanged
Section 1K1 deletion
1K Annual exempt amount
subsections (1) – (5) unchanged
6 An individual is not entitled to the annual exempt amount for a tax year if—
a ~~the individual is a long-term UK resident within the meaning of IHTA 1984 for the year and is not domiciled in the United Kingdom during the year, or~~
b …
remaining subsections unchanged
Section 1M1 insertion
1M Temporary non-residents
1 If, in the case of the disposal of an asset by an individual who is temporarily non-resident— the gain or loss is treated instead as accruing to the individual in the period of return.
1A Subsection (1) does not apply to a gain that accrues to an individual who was temporarily non-resident in tax year 2025-26 or an earlier tax year under section 103KA(2) or (3) of TCGA 1992 (as it then had effect). But see section 23M of ITTOIA 2005 which charges the amount of the gain to income tax in the period of return.
subsections (2) – (7) unchanged
Section 2B(3)(a)1 deletion
2B Territorial scope of charge to corporation tax on chargeable gains
subsections (1) – (2) unchanged
3 A company which is not resident in the United Kingdom is chargeable to corporation tax on chargeable gains that—
a accrue to the company on the disposal of assets situated in the United Kingdom ~~that have a relevant connection to the company's UK permanent establishment (see section 2C)~~,
paragraphs (b) – (c) unchanged
Section 2B(3)(b)1 change
2B Territorial scope of charge to corporation tax on chargeable gains
subsections (1) – (2) unchanged
3
b accrue at a time when it has ~~that permanent establishment~~a UK permanent establishment (see section 2C), and
Section 2B(3)(c)1 change
2B Territorial scope of charge to corporation tax on chargeable gains
subsections (1) – (2) unchanged
3
c are, in accordance with sections 20 to 3224 of CTA 2009, attributable to that permanent establishment.
Section 2C(2)1 deletion
2C Non-UK resident company with UK permanent establishment
1 For the purposes of section 2B(3) a company has a UK permanent establishment at any time if, at that time, the company carries on a trade in the United Kingdom through a permanent establishment there.
2 In determining whether an asset of a non-UK resident company has a relevant connection to the company's UK permanent establishment, the relevant connection test is met if the asset is, or was, used in or for the purposes of the permanent establishment at or before that time.
subsections (3) – (5) unchanged
Section 62(3)1 deletion
62 Death: general provisions
subsections (1) – (2) unchanged
3 Personal representatives are treated for the purposes of this Act as if they were a single and continuing body of persons (distinct from the persons who may from time to time be the personal representatives), and that body is treated as if it were resident and ordinarily resident in the United Kingdom unless the deceased was at the time of death neither domiciled nor resident in the United Kingdom ~~or a long-term UK resident within the meaning of IHTA 1984~~.
remaining subsections unchanged
Section 86(4ZB)2 changes
86 Attribution of gains to settlors with interest in non-resident or dual resident settlements
subsections (1) – (4ZA) unchanged
4ZB [Previous text: Where (apart from this subsection) the amount mentioned in subsection (1)(e) would include an amount of chargeable gains accruing by virtue of the trustee's entitlement to a sum of carried interest within the meaning of Chapter 5E of Part 13 of ITA 2007, the amount of those gains is to be disregarded.]Where (apart from this subsection) the amount mentioned in subsection (1)(e) would include an amount of chargeable gains accruing by virtue of the trustee's entitlement to a sum of carried interest, the amount of the gains is to be disregarded for the purposes of subsection (1)(e).
4ZC ~~[Previous text: In subsection (4ZB), "carried interest" has the same meaning as in Chapter 5E of Part 13 of ITA 2007.]~~In subsection (4ZB)—
a "carried interest" has the same meaning as in section 23I of ITTOIA 2005 (see Part 1 of Schedule A1 to that Act), and
b that definition has effect as if references to a sum arising to an individual included a reference to a sum arising to the trustees.
subsections (4A) – (6) unchanged
Section 87(5B)2 changes
87 Non-UK resident settlements: attribution of gains to beneficiaries
subsections (1) – (5A) unchanged
5B [Previous text: Where (apart from this subsection) the amount mentioned in subsection (4)(a) would include an amount of chargeable gains accruing by virtue of the trustee's entitlement to a sum of carried interest within the meaning of Chapter 5E of Part 13 of ITA 2007, the amount of the gains is to be disregarded.]Where (apart from this subsection)—
a the amount mentioned in subsection (4)(a) would include an amount of chargeable gains accruing by virtue of the trustee's entitlement to a sum of carried interest, and
b at the time when those chargeable gains accrue, income tax is chargeable by virtue of section 23I of ITTOIA 2005 in respect of the sum of carried interest,
the amount of the gains is to be disregarded for the purposes of determining the section 1(3) amount.
5C ~~[Previous text: In subsection (5B), "carried interest" has the same meaning as in Chapter 5E of Part 13 of ITA 2007.]~~In subsection (5B) and section 87BA—
a "carried interest" has the same meaning as in section 23I of ITTOIA 2005 (see Part 1 of Schedule A1 to that Act), and
b that definition has effect as if references to a sum arising to an individual included a reference to a sum arising to the trustees.
subsections (6) – (8) unchanged
Section 87B1 insertion
87B Section 87: remittance basis
subsections (1) – (5) unchanged
87BA Sections 87 and 87A: disregard of capital payments made from carried interest gains
1 This section applies to a settlement where—
a a chargeable gain accruing by virtue of the trustee's entitlement to a sum of carried interest in respect of which income tax is chargeable by virtue of section 23I of ITTOIA 2005 ("a carried interest gain") is or has been disregarded for the purposes of determining the section 1(3) amount for the settlement for a tax year as a result of section 87(5B), and
b the unused disregarded amount in relation to the carried interest gain is not nil.
2 For the purposes of sections 87 and 87A as they apply in relation to the settlement, no account is to be taken of a capital payment (or part of a capital payment) received by a beneficiary from the trustees at or after the time when the carried interest gain accrued if (or to the extent that) the amount of the capital payment does not exceed the unused disregarded amount at that time.
3 But if subsection (2) applies in a case where two or more capital payments are received by beneficiaries at the same time, and the total exceeds the unused disregarded amount, no account is to be taken of the relevant proportion of each capital payment.
subsections (4) – (5) inserted
Section 103G(4)1 change
103G Exchange of units for those in another collective investment scheme
subsections (1)–(3) unchanged
4 This section has effect subject to ~~section 103K(1)~~section 103K (anti-avoidance).
subsections (5) onwards unchanged
Section 103H(5)1 change
103H Scheme of reconstruction involving issue of units
subsections (1)–(4) unchanged
5 This section has effect subject to ~~section 103K(1)~~section 103K (anti-avoidance).
Section 103I(4)1 change
103I Scheme of reconstruction involving conversion scheme
subsections (1)–(3) unchanged
4 This section has effect subject to ~~section 103K(1)~~section 103K (anti-avoidance).
Section 103K3 changes, 1 insertion
103K ~~Restriction on application of sections 103G, 103H and 103I~~Restriction on application of sections 103G, 103H and 103I: anti-avoidance
1 Sections 103G, 103H and 103I do not apply in relation to an exchange or scheme of reconstruction if the exchange or reconstruction is not effected for bona fide commercial reasons or forms part of a scheme or arrangement of which the main purpose, or one of the main purposes, is avoidance of liability to capital gains tax or corporation tax.This section applies in respect of arrangements relating to an exchange or scheme of reconstruction as regards which section 103G, 103H or 103I applies if the main purpose, or one of the main purposes, of the arrangements is to reduce or avoid liability to capital gains tax, corporation tax or income tax.
1A Any such reduction or avoidance that would (in the absence of this section) arise from such arrangements is to be counteracted by the making of such adjustments as are just and reasonable (in light of the reduction or avoidance).
1B This includes, in an appropriate case, disapplying section 103G, 103H or 103I insofar as is required to counteract the reduction or avoidance.
1C Any adjustments required to be made under this section (whether or not by an officer of Revenue and Customs) may be made by way of—
a an assessment, or
b the modification of an assessment.
1D Where sub-paragraph (1) applies as part of the exchange or scheme of reconstruction, the assumption is that the exchange or reconstruction is effected without arrangements in respect of which section 103K applies.
subsections (2) onwards — unchanged
Section 103KA1 change
103KA ~~Carried interest~~ Carried interest: no chargeable gain
1 This section applies where—
a an individual performs investment management services directly or indirectly in respect of an investment scheme under any arrangements, and
b the individual is entitled to carried interest under the arrangements.
2 Any gain or loss accruing to the individual by virtue of the individual's entitlement to carried interest is treated as not accruing.
3 In this section "arrangements", "carried interest", "investment scheme" and "investment management services" have the same meaning as in section 23I of ITTOIA 2005 (see section 23R of and Part 1 of Schedule A1 to that Act).
Section 103KB4 deletions
103KB Carried interest: amount of gain or loss
section omitted
103KC Carried interest: base cost shift
section omitted
103KD Carried interest: carried interest held through partnerships
section omitted
103KE Carried interest: anti-avoidance
section omitted
Section 103KF1 insertion
103KF Relief for external investors on disposal of partnership asset
subsections (1) – (2) unchanged
3 In this section, "external investor" and "investment scheme" have the same meaning as in section 23I of ITTOIA 2005 (see section 23R of that Act).
Section 103KFA5 deletions
103KFA Carried interest: rate of tax
section omitted
103KFB Carried interest: deferred amounts
section omitted
103KG Carried interest: consequential
section omitted
103KGA Carried interest: chargeable persons
section omitted
103KH Carried interest: interpretation
section omitted
Section 135(6)1 change
135 Exchange of securities for those in another company
subsections (1)–(5) unchanged
6 This section has effect subject to ~~section 137(1)~~section 137 (anti-avoidance).
Section 136(6)1 change
136 Scheme of reconstruction involving issue of securities
subsections (1)–(5) unchanged
6 This section has effect subject to ~~section 137(1)~~section 137 (anti-avoidance).
Section 1373 changes, 1 insertion, 1 deletion
137 ~~Restriction on company reconstruction provisions~~Restriction on company reconstruction provisions: anti-avoidance
1 Sections 135 and 136 do not apply in relation to an exchange or scheme of reconstruction if the exchange or reconstruction is not effected for bona fide commercial reasons or forms part of a scheme or arrangement of which the main purpose, or one of the main purposes, is avoidance of liability to capital gains tax or corporation tax.This section applies in respect of arrangements relating to an exchange or scheme of reconstruction as regards which section 135 or 136 applies if the main purpose, or one of the main purposes, of the arrangements is to reduce or avoid liability to capital gains tax or corporation tax.
1A Any such reduction or avoidance that would (in the absence of this section) arise from such arrangements is to be counteracted by the making of such adjustments as are just and reasonable (in light of the reduction or avoidance).
1B This includes, in an appropriate case, disapplying section 135 or 136 insofar as is required to counteract the reduction or avoidance.
1C Any adjustments required to be made under this section (whether or not by an officer of Revenue and Customs) may be made by way of—
a an assessment, or
b the modification of an assessment.
2 Subsection (1) shall not apply where the Board of Inland Revenue have, on application, notified the company that the proposed exchange or scheme of reconstruction will be effected for bona fide commercial reasons.
3 Sections 135 and 136 do not apply where, in either case, at the time of the exchange or issue, HMRC have reasonable grounds for believing that the transaction or transactions, or any one or more of them, may form part of such an arrangement or scheme as is mentioned in subsection (1).
4 For the purposes of section 138~~(1)~~ (advance clearance), the reference in ~~that subsection~~subsection (1) of that section to subsection (1) of this section is to be read as a reference to subsection (1) of this section and section 103K(1). For the purposes of section 138~~(4)~~ (refusal to give clearance), the reference in ~~that subsection~~subsection (4) of that section to arrangements within subsection (1) of this section is to be read as a reference to arrangements in respect of which this section or section 103K applies.
subsections (5) onwards unchanged
Section 1393 changes, 1 insertion
139 Reconstruction involving transfer of business
subsections (1)–(4) unchanged
4A Subsection (4B) applies in respect of arrangements relating to a reconstruction as regards which this section applies if the main purpose, or one of the main purposes, of the arrangements is to reduce or avoid liability to capital gains tax, corporation tax or income tax.
4B Any such reduction or avoidance that would (in the absence of this subsection) arise from such arrangements is to be counteracted by the making of such adjustments as are just and reasonable (in light of the reduction or avoidance).
4C This includes, in an appropriate case, disapplying this section insofar as is required to counteract the reduction or avoidance.
4D Any adjustments required to be made under subsection (4B) (whether or not by an officer of Revenue and Customs) may be made by way of—
a an assessment, or
b the modification of an assessment.
5 This section shall not apply where the reconstruction is not effected for bona fide commercial reasons, or forms part of a scheme or arrangement of which the main purpose or one of the main purposes is avoidance of liability to corporation tax or capital gains tax.Subsections (4A) to (4D) do not apply where the reconstruction is effected ~~for bona fide commercial reasons~~without arrangements in respect of which subsection (4B) applies.
subsections (6)–(9) unchanged (references to “subsection (5)” updated to “subsection (4B)”)
10 In this section, “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).
Section 162(1)1 insertion
162 Roll-over relief on transfer of business
1 This section shall apply for the purposes of this Act—
a where a person who is not a company transfers to a company a business as a going concern, together with the whole assets of the business, or together with the whole of those assets other than cash, and the business is so transferred wholly or partly in exchange for shares issued by the company to the person transferring the business, and
b the person makes a claim in respect of the transfer, including such information as the Commissioners may require, on or before the first anniversary of the 31 January following the tax year in which the transfer of the business took place.
subsections (2)–(4) unchanged
Section 162(5)1 insertion
162 Roll-over relief on transfer of business
subsections (1)–(5) unchanged
6 In this section, “the Commissioners” means the Commissioners for His Majesty’s Revenue and Customs.
Section 162A1 deletion
162A Election for section 162 not to apply
entire section omitted
Section 169I(7D)(b)1 change, 1 insertion
169I Material disposal of business assets
subsections (1) – (7C) unchanged
7D This subsection applies to shares of a company acquired by an individual if the individual—
a acquires them on or after 6 April 2013, and
b acquires them as a result of the exercise of a qualifying option within the meaning given by section 527(4) of ITEPA 2003 (enterprise management incentives) where the option is exercised on or before the ~~tenth~~ specified anniversary of the date mentioned in section 529(2) of that Act (with “specified anniversary” having the meaning given in section 529(2A) of that Act).
subsections (7E) onwards unchanged
Section 236H(2)1 change, 1 insertion
236H Disposals to employee-ownership trusts
subsection (1) unchanged
2 Where this section applies, section 17(1) (disposals and acquisitions treated as made at market value) does not apply to the disposal and, taking account of that disapplication—
a if a gain accrues, subsection (2A) applies, or
b if no gain accrues, subsection (3) applies.
2A Where this subsection applies—
a only 50% of the gain is a chargeable gain,
b the disposal is not to be regarded as a qualifying business disposal for the purposes of Chapter 3 of Part 5 (business asset disposal relief),
c the ordinary share capital disposed of is to be regarded, immediately before the disposal, as comprised wholly of excluded shares for the purposes of Chapter 5 of that Part (investors’ relief), and
d the acquisition by the trustees is to be treated for the purposes of this Act as made for the consideration for the disposal less an amount equal to so much of the gain as is not a chargeable gain as a result of paragraph (a).
subsections (3) onwards unchanged
Section 236H(3)1 change
236H Disposals to employee-ownership trusts
subsections (1)–(2A) unchanged
3 ~~The~~Where this subsection applies, the amount or value of the consideration for the disposal is treated as equal to the market value of the shares disposed of.
subsections (4) onwards unchanged
Section 257A1 change
257A Tainted charity donations
existing section 257A replaced in its entirety
1 Section 257 does not apply in relation to a relievable charity donation that becomes a tainted donation in the same tax year in which it is made.
2 Subsection (3) applies if a person makes a relievable charity donation in a tax year ("the donation year"), the donation becomes a tainted donation in a later tax year ("the tainting year"), and if the donation had become a tainted donation in the donation year, the liability to tax for the donation year of the person who made the donation would have been greater than it in fact was for the donation year.
3 The liability to tax for the tainting year of the person that made the donation is increased by an amount equal to the difference between the amount of tax for which the person would have been liable for the donation year had the donation become a tainted donation in the donation year, and the amount of tax for which the person was in fact liable for the donation year.
4 Section 101 of FA 2009 (interest on CGT etc) has effect in relation to capital gains tax for which a person is liable by virtue of subsection (3) as though the tax had become due and payable on 1 February in the tax year following the donation year.
5 Section 87A of TMA 1970 (interest on overdue corporation tax etc) has effect in relation to corporation tax for which a company is liable by virtue of subsection (3).
6 Definitions: "relievable charity donation" means a relievable charity donation within the meaning of Chapter 8 of Part 13 of ITA 2007 or Part 21C of CTA 2010; "tainted donation" has equivalent meaning.
7 In relation to any donation made by a company, references in this section to a tax year are to be read as references to an accounting period.
257B Associated donations in relation to tainted charity donations
new section inserted — see full text
Schedule 1A Part 41 change, 1 insertion
Schedule 1A — ~~Anti-avoidance~~Cell companies and anti-avoidance
paragraphs 1–10 unchanged (Part 1–3)
10A Cell companies
1 In the application of this Schedule in relation to the disposal of an asset consisting of a right or an interest in a cell company, each cell of the company is to be treated as if it were an individual company.
2 For the purposes of this paragraph, “cell company” and “cell” have the meanings given by [the provision inserted by this section].
paragraph 11 onwards unchanged
Schedule D1 ¶ 22 changes
Schedule D1 — Gains of qualifying new residents
paragraph 1 unchanged
2 Relief for ~~chargeable~~qualifying foreign gains
2 …for the purposes of giving relief to an individual in that tax year…
remaining paragraphs unchanged
Schedule D1 ¶ 62 changes, 1 insertion
Schedule D1 — Gains of qualifying new residents
paragraphs 1–5 unchanged; paragraph 6 amended:
6 In this Schedule "qualifying QAHC gain" means a gain accruing to an individual who provided investment management services in connection with investment arrangements to which a QAHC is party, from an interest in ~~a QAHC~~the QAHC that were acquired during the course of the provision of those services.
"QAHC" and "investment management services" have the meanings they have in that Schedule.
remaining paragraphs unchanged

Income Tax (Trading and Other Income) Act 2005

38 amendments · open Act

Section 7(1)1 insertion
7 Income charged
1 Income tax is charged on the profits of a trade, profession or vocation (but see section 3 (overview of charges to income tax on trade profits)) carried on by—
list items unchanged
... other than profits of such a trade brought into charge by virtue of section 23E(1), section 23I or section 23M.
subsections (2) onwards unchanged
Section 23H1 insertion
23H Double taxation
section 23H unchanged
23I Tax treatment of carried interest
1 This section applies where—
a an individual performs investment management services in any tax year directly or indirectly in respect of an investment scheme under any arrangements, and
b under the arrangements, one or more sums of carried interest arise to the individual from an investment scheme in a tax year.
2 For income tax purposes—
a the individual is treated as carrying on a trade, by virtue of the arrangements, for the tax year referred to in subsection (1)(b),
b the amount to be treated as the profits of the trade for that tax year is the sum of the non-qualifying profits of the trade and 72.5% of the qualifying profits of the trade (see subsection (3)), and
c the individual is treated as the person receiving or entitled to those profits.
subsections (3) – (6) of inserted section 23I omitted for brevity
sections 23J – 23R also inserted (see Finance Act 2026 section 58(2))
Section 108(5)(b)1 change
108 Gifts of trading stock to charities etc
subsections (1)–(4) unchanged
5 This section—
a needs to be read with section 109 (receipt by donor or connected person of benefit attributable to certain gifts), and
b is subject to ~~section 809ZM~~sections 809ZM and 809ZMB of ITA 2007 (removal of income tax relief in respect of tainted charity donations etc).
Section 274AA(5)2 changes
274AA Reduction for individuals: calculation
subsections (1)–(4) unchanged
5The amount of the relief for the year in respect of a relievable amount is given by AA × BRPBR where AA is the actual amount on which relief for the year is to be given in respect of the relievable amount, and BRPBR is the ~~basic rate~~property basic rate of income tax for the year.
subsection (6) unchanged
Section 274C(2)2 changes
274C Reduction for accumulated or discretionary trust income: calculation
1This section applies if for a tax year the trustees of a settlement are entitled to relief under section 274B.
2The amount of the relief in respect of a relievable amount is given by L × BRPBR where BRPBR is the ~~basic rate~~property basic rate of income tax for the year, and L is the lower of: the relievable amount, and the profits for income tax purposes of the property business concerned.
subsection (3) unchanged
Section 3991 deletion
399 Tax treated as paid on distributions received by non-UK resident persons
entire section omitted
Section 401C2 insertions
401C Distributions from close companies: temporary non-residents
subsections (1) – (6) unchanged
6A Where—
a. a company ("company A") makes a payment (including by way of a loan) to the individual in the temporary period of non-residence,
b. the individual is, at a relevant time, a material participator in, or is an associate of a material participator in, another company that is a close company ("company B"),
c. at the time the payment is made, company B controls (within the meaning of sections 450 and 451 of CTA 2010) company A, and
d. it is reasonable to suppose that the making of that payment is intended to avoid an amount being received by the individual by way of relevant distribution made, or treated as made, by company B,
company A is to be treated as making a relevant distribution of that amount to the individual in that period.
6B Where—
a. a company makes a payment (including by way of a loan) to any person other than the individual at any time in the temporary period of non-residence,
b. if the company had made a dividend to the individual at that time, it would have been a relevant distribution, and
c. the individual receives an amount or a benefit ("the relevant receipt") as a result of arrangements…
the company is to be treated as making a relevant distribution to the individual in that period in the amount of the value of the relevant receipt.
6C For the purposes of subsection (6B)(c) "arrangements" include any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).
remaining subsections unchanged
Section 401C1 insertion
401C Distributions from close companies: temporary non-residents
subsections (1) – (6C) unchanged
6D Where tax of a similar character to income tax is payable by the individual under the law of a territory outside the United Kingdom on a relevant distribution—
a. credit for any such tax paid by the individual is to be allowed against income tax chargeable in respect of the relevant distribution, and
b. the credit is to be given effect by treating the amount of the relevant distribution as reduced to such amount as would secure that so much of the credit is given as does not exceed the income tax chargeable in respect of the relevant distribution.
remaining subsections unchanged
Section 401C(12)1 deletion
401C Distributions from close companies: temporary non-residents
subsections (1) – (11) unchanged
12 In this section—
"close company" has the meaning given by CTA 2010;
~~"trade profits of the close company" [definition omitted];~~
…
Section 401C(7)3 deletions
401C Distributions from close companies: temporary non-residents
subsections (1) – (6D) unchanged
7 ~~[subsection (7) omitted]~~
8 ~~[subsection (8) omitted]~~
9 ~~[subsection (9) omitted]~~
remaining subsections unchanged
Section 408A3 insertions
408A Non-UK resident companies: temporary non-residents
subsections (1) – (4) unchanged
4A Where—
a. a company ("company A") makes a payment (including by way of a loan) to the individual in the temporary period of non-residence,
b. the individual is, at a relevant time, a material participator in, or an associate of a material participator in, another company ("company B") that would be a close company if it were UK resident,
c. at the time the payment was made, company B controls (within the meaning of sections 450 and 451 of CTA 2010) company A, and
d. it is reasonable to suppose that the making of that payment is intended to avoid—
i. an amount being received by the individual by way of dividend that falls within subsection (3)(c), or
ii. the individual becoming entitled to such a dividend,
the individual is to be treated as having received, at that time, a dividend in that amount that falls within subsection (3)(b) and (c).
4B Where—
a. a company makes a payment (including by way of a loan) to any person other than the individual in the temporary period of non-residence,
b. if the company had made a dividend to the individual at that time, it would have been a dividend within subsection (3), and
c. the individual receives an amount or a benefit ("the relevant receipt") as a result of arrangements…
the individual is to be treated as having received, in that period, a dividend…
4C For the purposes of subsection (4B)(c) "arrangements" include any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).
remaining subsections unchanged
Section 408A1 insertion
408A Non-UK resident companies: temporary non-residents
subsections (1) – (4C) unchanged
4D Where tax of a similar character to income tax is payable by the individual under the law of a territory outside the United Kingdom on a dividend within subsection (3)—
a. credit for any such tax paid by the individual is to be allowed against income tax chargeable in respect of the dividend, and
b. the credit is to be given effect by treating the amount of the dividend as reduced to such amount as would secure that so much of the credit is given as does not exceed the income tax chargeable in respect of the dividend.
remaining subsections unchanged
Section 408A(10)1 change
408A Non-UK resident companies: temporary non-residents
subsections (1) – (9) unchanged
10 ~~[previous subsection (10) text]~~In this section—
a. "associate" and "participator" have the same meanings as in Part 10 of CTA 2010 (see sections 448 and 454),
b. a "material participator" is a participator who has a material interest in the company, as defined in section 457 of that Act,
c. "relevant time" means—
i. any time in the year of departure or, if the year of departure is a split year as respects the individual, the UK part of that year, or
ii. any time in one or more of the 3 tax years preceding that year.
Section 408A(4)3 deletions
408A Non-UK resident companies: temporary non-residents
subsections (1) – (3) unchanged
4 The individual is treated as receiving in the year of return a dividend that falls within subsection (3)(b) and (c) from the company if—
a ~~[paragraph (a) omitted]~~
b ~~[paragraph (b) omitted]~~
c ~~[paragraph (c) omitted]~~
remaining subsections unchanged
Section 408A(5)4 deletions
408A Non-UK resident companies: temporary non-residents
subsections (1) – (4D) unchanged
5 ~~[subsection (5) omitted]~~
6 ~~[subsection (6) omitted]~~
7 ~~[subsection (7) omitted]~~
8 ~~[subsection (8) omitted]~~
remaining subsections unchanged
Section 413A3 insertions
413A Stock dividends from close companies: temporary non-residents
subsections (1) – (6) unchanged
6A Where—
a. a company ("company A") makes a payment (including by way of a loan) to the individual in the temporary period of non-residence,
b. the individual is, at a relevant time, a material participator in, or is an associate of a material participator in, another company that is a close company ("company B"),
c. at the time the payment was made, company B controls (within the meaning of sections 450 and 451 of CTA 2010) company A, and
d. it is reasonable to suppose that the making of that payment is intended to avoid an amount of relevant stock dividend income being treated under this Chapter as arising to the individual in that period,
relevant stock dividend income in that amount is treated as arising to the individual in that period.
6B [avoidance arrangements provision for stock dividends]
6C For the purposes of subsection (6B)(c) "arrangements" include any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).
remaining subsections unchanged
Section 413A1 insertion
413A Stock dividends from close companies: temporary non-residents
subsections (1) – (6C) unchanged
6D Where tax of a similar character to income tax is payable by the individual under the law of a territory outside the United Kingdom on relevant stock dividend income—
a. credit for any such tax paid by the individual is to be allowed against income tax chargeable in respect of the relevant stock dividend income, and
b. the credit is to be given effect by treating the amount of the relevant stock dividend income as reduced to such amount as would secure that so much of the credit is given as does not exceed the income tax chargeable in respect of the relevant stock dividend income.
remaining subsections unchanged
Section 413A(11)1 deletion
413A Stock dividends from close companies: temporary non-residents
subsections (1) – (10) unchanged
11 In this section—~~"trade profits of the close company" [definition omitted];~~
…
Section 413A(7)3 deletions
413A Stock dividends from close companies: temporary non-residents
subsections (1) – (6D) unchanged
7 ~~[subsection (7) omitted]~~
8 ~~[subsection (8) omitted]~~
9 ~~[subsection (9) omitted]~~
remaining subsections unchanged
Section 465A(1)1 change
465A Amounts for which individuals liable to be treated as highest part of total income
1This section applies if—
aan individual is liable for tax under this Chapter in respect of an amount, and
bthe individual is treated by section 530 as having paid income tax at ~~the basic rate~~the savings basic rate on the amount.
subsections (2)–(4) unchanged
Section 466(2)1 change
466 Person liable: personal representatives
1Personal representatives are liable for tax under this Chapter if the rights under the policy or contract are held by them and the condition in subsection (2) is met.
2The condition is that if an individual were liable for tax on a gain in respect of the policy or contract, section 530(1) (individual treated as having paid tax at ~~the basic rate~~the savings basic rate) would be disapplied as a result of section 531(1) or similar provision.
subsection (3) unchanged
Section 467(7)1 change
467 Person liable: UK resident trustees
subsections (1)–(6) unchanged
7If trustees are liable for tax under this Chapter, it is charged at ~~the basic rate~~the savings basic rate if—
acondition A is met, or
bcondition D is met and the trustees are trustees of a charitable trust.
Section 530(1)1 change
530 Income tax treated as paid etc
1An individual or trustees who are liable for tax on an amount under this Chapter are treated as having paid income tax at ~~the basic rate~~the savings basic rate on that amount.
subsections (2)–(7) unchanged
Section 533(4)1 change
533 Meaning of “comparable EEA tax charge”
subsections (1)–(3) unchanged
4Condition C is that the charge applies at a rate of at least ~~20%~~22% in relation to the amounts subject to tax in the insurer's hands.
subsections (5)–(7) unchanged
Section 535(3)2 changes
535 Top slicing relief
subsections (1)–(2A) unchanged
3An individual's liability for a tax year for the purposes of subsection (1)(a) equals TL − ~~BRL~~SBRL, where—TL is the amount of the individual's total liability to income tax on income charged to tax under this Chapter for the tax year, calculated on the basis that no relief is available under this section, and ~~BRL~~SBRL is the amount of income tax at ~~the basic rate~~the savings basic rate on the aggregate amount of the gains.
subsections (4)–(8) unchanged
Section 536(1)1 change
536 Top slicing relieved liability: one chargeable event
1To calculate an individual's relieved liability for the purposes of section 535(1) for a tax year—Step 2 Calculate the notional liability of the individual on the annual equivalent, in doing so, ignore—
bany income tax at ~~the basic rate~~the savings basic rate treated as paid under section 530.
subsections (2)–(8) unchanged
Section 5371 change
537 Top slicing relieved liability: two or more chargeable events
1To calculate an individual's relieved liability for the purposes of section 535(1) for a tax year for which the individual is liable for tax on gains from two or more chargeable events—Step 1 Calculate the notional liability of the individual on each annual equivalent. In doing so, ignore—
bany income tax at ~~the basic rate~~the savings basic rate treated as paid under section 530.
Section 539(8)2 insertions
539 Relief for deficiencies
subsections (1)–(7) unchanged
8Here is the Table referred to in subsection (7)—the higher rate / the basic rate; the default higher rate / the default basic rate; the savings higher rate / the savings basic rate; the property higher rate / the property basic rate; the dividend upper rate / the dividend ordinary rate; the Scottish higher rate / the Scottish basic rate; … the Welsh property higher rate / the Welsh property basic rate.
Section 643C(1)1 insertion
643C Meaning of “available protected income”
1 For the purposes of section 643A, take the following steps to determine the amount of available protected income in relation to an individual (“P”), a settlement and a tax year (“the current tax year”)—
Step 1–Step 4 unchanged
Step 5 Add back the amount of any income falling within Step 2 or Step 4 that is identified as qualifying foreign income on a foreign income claim made by P or any other individual for any tax year.
subsections (2) onwards unchanged
Section 643C(3)(b)1 insertion
643C Meaning of “available protected income”
subsection (1) unchanged
subsection (2) unchanged
3 For the purposes of Step 1 in subsection (1), “protected foreign-source income” means income that is—
a income of a settlor or a settlor’s spouse or civil partner [unchanged]
b income arising outside the United Kingdom and not exempt from income tax by virtue of any of sections 737 to 742A of that Act.
Section 669(3)2 insertions
669 Reduction in residuary income: inheritance tax on accrued income
subsections (1)–(2) unchanged
3A person's extra liability is the amount by which the person's liability to income tax exceeds the amount it would be if—
aincome charged at an applicable rate were charged at the basic rate, ~~and~~
bincome charged at the dividend additional rate or the dividend upper rate were charged at the dividend ordinary rate, and
cincome charged at the property additional rate or the property higher rate were charged at the property basic rate, and
dincome charged at the savings additional rate or the savings higher rate were charged at the savings basic rate.
subsections (3A)–(8) unchanged
Section 680(4)1 change
680 Income treated as bearing income tax
subsections (1)–(3) unchanged
4A sum that is part of the aggregate income of the estate because of falling within section 664(2)(e) (gains from life insurance contracts etc) is treated as bearing income tax at ~~the basic rate~~the savings basic rate.
subsection (5) unchanged
Section 680B1 insertion
After section 680B insert—
680CIncome treated as property income
1This section applies to estate income relating to a person's interest in the residue of an estate so far as that interest relates to income that—
afalls within section 664(2)(a) (income of personal representatives charged to UK income tax), and
bis property income (see section 17A of ITA 2007).
2The income is treated as being property income.
Section 845A1 insertion
845A Claim for relief for qualifying new residents: qualifying foreign income
subsections (1) – (3) unchanged
3A But a deduction for that purpose is to be made only from qualifying foreign income.
remaining subsections unchanged
Section 845B1 insertion
845B Meaning of "qualifying new resident"
1 An individual is a qualifying new resident for a tax year if—
a …
b …
c …~~[no "and"]~~, and
d the individual is at least 10 years old at the commencement of that tax year.
remaining subsections unchanged
Section 845H3 changes
845H Foreign income and gains of qualifying new residents: supplementary
subsections (1) – (2) unchanged
3 The table referred to in subsection (1) is as follows—
items 1–22 unchanged; item 23 amended:
23. Income arising to an individual who provided investment management services in connection with investment arrangements to which a QAHC is party, from ~~paragraph 46~~paragraph 46(4) to (6) of Schedule 2 to FA 2022, being income accruing ~~to a QAHC (within the meaning of that Schedule)~~to the QAHC as a result of an interest the individual acquired during the course of the provision of those services
"QAHC" and "investment management services" have the meanings they have in that Schedule.
remaining subsections unchanged
Schedule 11 insertion
Schedule A1 Carried Interest: interpretation of key terms
Section 23I
Part 1 Meaning of carried interest — paragraphs 1–6 (inserted)
Part 2 Sums arising to other persons treated as arising to the individual — paragraphs 7–10 (inserted)
Part 3 Qualifying carried interest — paragraphs 11–35 (inserted)
Part 4 Carried interest elections — paragraphs 36–40 (inserted)
Schedule 44 insertions
Schedule 4, Part 2 — Index of expressions defined in this Act
existing entries unchanged; new entries inserted at appropriate places:
foreign employment election — section 989 of ITA 2007 (and see section 41M of ITEPA 2003)
foreign gain claim — section 989 of ITA 2007 (and see paragraph 1 of Schedule D1 to TCGA 1992)
foreign income claim — section 989 of ITA 2007 (and see section 845A of this Act)
qualifying new resident — section 989 of ITA 2007 (and see section 845B of this Act)

Corporation Tax Act 2010

47 amendments · open Act

Section 9A1 insertion
9A Designated currency of a UK resident investment company
1 The designated currency of a UK resident investment company is the currency which the company elects as its designated currency.
2 An election under this section by a company (“X”) takes effect only if, at the time when it is to take effect (see section 9B(1))— (a) X is a UK resident investment company, and (b) Condition A or Condition B is met.
2A For the purposes of determining whether an election under this section takes effect, ignore the effect (if any) of Part 4 of TIOPA 2010 (transfer pricing).
subsections (3) – (9) unchanged
Section 5111 change, 2 insertions
511 Approved charitable investments
1 For the purposes of section 496 “approved charitable investment” means an investment—
a that is of a type listed in subsection (2) and is made for an allowable purpose, or
b that is not of a type listed in subsection (2) but that is approved under subsection (3).
2 ~~For the purposes of section 496 “approved charitable investment” means an investment of one of the following types—~~The following are the types of investment mentioned in subsection (1)(a)—
Types 1 – 11 unchanged; Type 12 omitted
3 An officer of Revenue and Customs may approve a loan or other investment under this subsection if satisfied, on a claim, that it is made for an allowable purpose.
4 For the purposes of this section an investment is made “for an allowable purpose” if it is reasonable to draw the conclusion, from all the circumstances of the case, that the investment is made—
a for the sole purpose of benefiting the charitable company, or
b for that purpose and one or more ancillary or incidental purposes,
and is not made for the avoidance of tax (whether by the company or any other person).
Section 5524 changes
552 “The section 552 amount”
1For the purposes of section 551, the section 552 amount is calculated by taking 3 steps.
2Step 1: find the amount given by DO × SO × ~~BRT~~PBRT / MCT where ~~BRT~~PBRT is the ~~basic rate~~property basic rate of income tax, and the other factors are as defined.
3Step 2: find the amount given by DP × SP × ~~BRT~~PBRT / MCT where ~~BRT~~PBRT is the ~~basic rate~~property basic rate of income tax, and the other factors are as defined.
4Step 3: add together the amounts given by steps 1 and 2.
Section 939A(2)1 change
939A Overview
subsection (1) unchanged
2 See ~~section 257A~~sections 257A and 257B of TCGA 1992 and Chapter 8 of Part 13 of ITA 2007 for the removal of entitlement to other reliefs where a person makes a relievable charity donation which is a tainted donation.
Section 939B(3)(b)1 change
939B Relievable charity donations
subsections (1)–(2) unchanged
3 "The tainted donation provisions" are—
a this Part,
b ~~section 257A~~sections 257A and 257B of TCGA 1992, and
c Chapter 8 of Part 13 of ITA 2007.
subsections (4)–(5) unchanged
Section 939C(1)1 insertion
939C Tainted donations
1 For the purposes of this Part, a relievable charity donation
a is a tainted donation if (and only if) Conditions A, B and C are met, and
b becomes a tainted donation at the earliest time when all those conditions are met.
subsections (2)–(10) unchanged
Section 939C(10)1 change
939C Tainted donations
subsections (1)–(9) unchanged
10 "Financial ~~advantages~~assistance" means financial ~~advantages~~assistance provided—
paragraphs (a)–(b) unchanged
Section 939C(2)(b)1 insertion
939C Tainted donations
subsection (1) unchanged
2 Condition A is that—
a a linked person enters into arrangements (whether before or after the donation is made), and
b it is reasonable to assume from either or both of—
i the likely effects of the donation and the arrangements as at the later of the time when the donation is made and the time when the arrangements are entered into, and
ii the circumstances in which the donation is made and the circumstances in which the arrangements are entered into,
subsections (3)–(10) unchanged
Section 939C(4)1 change
939C Tainted donations
subsections (1)–(3) unchanged
4 "Relevant time" means ~~a time~~any time after the earliest of the following times—
paragraphs (a)–(b) unchanged
subsections (5)–(10) unchanged
Section 939C(5)2 changes
939C Tainted donations
subsections (1) – (4) unchanged
5 Condition B is that a linked person who is not a charity receives financial assistance—~~by reason of the donation.~~
a under or in connection with the arrangements, and
b directly or indirectly from the charity to which the donation is made or from a connected charity.
subsections (6) – (7) unchanged
8 In this section—“financial assistance” includes a loan, a guarantee, an indemnity or any form of investment (in each case, whether or not on arm's length terms); ...
Section 939C(8)2 changes
939C Tainted donations
subsections (1)–(7) unchanged
8 In this section— "qualifying charity-owned company", in relation to a relievable charity donation, means a company that is a charity and in which a ~~potentially advantaged person~~linked person has a substantial interest; "relevant housing provider" means a body which is a ~~potentially advantaged person~~linked person and is a registered provider of social housing or registered social landlord.
subsections (9)–(10) unchanged
Section 939D1 deletion
939D Circumstances in which financial advantage deemed to be obtained
entire section omitted
Section 939E1 change
939E Certain financial ~~advantages~~assistance to be ignored
subsections (1)–(6) unchanged
Section 939E1 insertion
939E Certain financial assistance to be ignored
subsections (1)–(2) unchanged
2A Financial assistance is within this subsection if it constitutes a payment made by a charity, on arm's length terms, in respect of—
a work carried out by a person for or on behalf of the charity, or
b expenses incurred by a person in the course of such work.
subsections (3)–(6) unchanged
Section 939E(1)2 changes
939E Certain financial assistance to be ignored
1 When determining whether a relievable charity donation is a tainted donation, ~~a financial advantage~~financial assistance within subsection ~~(2)~~(2A), (3), (4) or (5) is to be ignored.
subsections (2)–(6) unchanged
Section 939E(2)1 deletion
939E Certain financial assistance to be ignored
subsection (1) unchanged
2 A financial advantage is within this subsection if it consists of a payment of money to a linked person for goods or services which are provided to the charity on arm's length terms.
subsections (3)–(6) unchanged
Section 939E(3)3 changes
939E Certain financial assistance to be ignored
subsections (1)–(2A) unchanged
3 ~~A financial advantage~~Financial assistance is within this subsection if (ignoring the tainted donation provisions) it is—
paragraphs (a)–(b) unchanged
4 ~~A financial advantage~~Financial assistance is within this subsection if (ignoring the tainted donation provisions)—
paragraphs (a)–(b) unchanged
5 ~~A financial advantage~~Financial assistance is within this subsection if—
paragraphs (a)–(c) unchanged
subsection (6) unchanged
Section 939E(4)(b)2 changes
939E Certain financial assistance to be ignored
subsections (1)–(3) unchanged
4 Financial assistance is within this subsection if (ignoring the tainted donation provisions)—
a the relievable charity donation is a disposal in respect of which tax relief would be available under Chapter 3 of Part 6 of this Act, and
b ~~the advantage~~the assistance is a benefit the value of which would be taken into account in determining the relievable amount.
5 Financial assistance is within this subsection if—
paragraph (a) unchanged
b ~~the advantage~~the assistance consists of the charitable instalment referred to in paragraph (a).
subsection (6) unchanged
Section 939E(6)1 insertion
939E Certain financial assistance to be ignored
subsections (1)–(5) unchanged
6 In this section— "financial assistance" has the same meaning as in section 939C; "linked person" has the meaning given by section 939C(3).
Section 939F1 change
939F Removal of corporation tax relief ~~in respect of tainted donations etc~~where donation becomes tainted in same accounting period
subsections (1)–(8) unchanged
Section 939F2 insertions
939F Removal of corporation tax relief where donation becomes tainted in same accounting period
section 939F unchanged
939FA Clawback of corporation tax relief where donation becomes tainted in later accounting period
1 This section applies where a company makes a relievable charity donation in an accounting period ("the donation period"), the donation becomes a tainted donation in a later accounting period ("the tainting period"), and if the donation had become a tainted donation in the donation period, the company's liability to corporation tax for the donation period would have been greater than it in fact was.
2 The company's liability to corporation tax for the tainting period is increased by an amount equal to the difference between the corporation tax for which it would have been liable for the donation period had the donation become tainted in that period, and the amount it was in fact liable for.
3 Section 87A of TMA 1970 (interest on overdue corporation tax etc) has effect in relation to tax for which a company is liable by virtue of subsection (2) as though the tax had become due and payable on the day following the expiry of 9 months from the end of the donation period.
939FB Removal or clawback of corporation tax relief for associated donations
subsections (1)–(7) inserted — see full text
Section 939F(1)1 change
939F Removal of corporation tax relief where donation becomes tainted in same accounting period
1 ~~This section applies if a company makes a relievable charity donation which is a tainted donation.~~
1 This section applies where—
a a company makes a relievable charity donation, and
b the donation becomes a tainted donation in the same accounting period in which it is made.
subsections (2)–(8) unchanged
Section 939F(3)1 deletion
939F Removal of corporation tax relief where donation becomes tainted in same accounting period
subsections (1)–(2) unchanged
3 Subsections (1) and (2) have effect in relation to a relievable charity donation which becomes a tainted donation after being made as if the donation were a tainted donation at the time it was made.
subsections (4)–(8) unchanged
Section 939F(4)4 deletions
939F Removal of corporation tax relief where donation becomes tainted in same accounting period
subsections (1)–(3) unchanged
4 In this section— ~~"associated donation" has the meaning given by section 939FB(7);~~ "corporation tax relief" means any corporation tax relief or repayment of corporation tax; ~~"qualifying charity-owned company" has the meaning given by section 939C(8);~~ ~~"relevant housing provider" has the meaning given by section 939C(8);~~ ~~"the relevant arrangements" means the arrangements by reference to which Conditions A and B are met.~~
subsections (5)–(8) unchanged
Section 1139(2)2 changes
1139 "Tax advantage"
subsection (1) unchanged
2"Tax advantage" means—
paragraphs (a) – (d) unchanged
dathe avoidance or reduction of a charge or assessment to a charge under Part 9A of TIOPA 2010 (controlled foreign companies), or
ethe avoidance or reduction of a charge or assessment to the bank levy under Schedule 19 to FA 2011 (the bank levy) ...
f. . . [diverted profits tax provision — omitted by this Act]
subsections (3) – (4) unchanged
Section 11411 insertion
Chapter 2 — Permanent Establishments
Introduction
1140A Introduction
1 This Chapter applies for the purpose of determining when a company has a permanent establishment in a territory for the purposes of the Corporation Tax Acts.
2 So far as provisions in this Chapter are in substantially the same terms as Article 5 of the Model Tax Convention on Income and on Capital approved by the OECD Council on 18 November 2025 they are to be read and given effect, so far as possible, in a way that is consistent with the OECD commentaries on that article.
subsections (3) – (5) inserted (OECD document references and Treasury power)
Section 1141(1)(b)1 change
1141 Permanent establishment of companies
1 For the purposes of the Corporation Tax Acts a company has a permanent establishment in a territory if (and only if)—
a it has a fixed place of business there through which the business of the company is wholly or partly carried on, or
b ~~a person who is authorised to do business on behalf of the company acts on behalf of the company in the territory and has, and habitually exercises, authority to do so~~a person acting on behalf of the company in the territory habitually concludes contracts, or habitually plays the principal role leading to the conclusion of contracts, that are routinely concluded without material modification by the company, and the contracts are—
i for the transfer of the ownership of, or for the granting of the right to use, property owned by the company or that the company has the right to use, or
ii for the provision of services by the company.
subsections (2) – (3) unchanged
Section 11422 insertions
1142 Agent of independent status
1 A company is not regarded as having a permanent establishment in a territory by reason of the fact that it carries on business there through an agent of independent status acting in the ordinary course of the agent's business.
1A A person is not to be regarded for the purposes of subsection (1) as an agent of independent status in relation to a company where the person—
a is closely related to the company, and
b acts exclusively or almost exclusively on behalf of—
i the company, or
ii the company and other companies to which the person is closely related.
1B In subsection (1A), "closely related" has the meaning that it has in section 1143 (see subsection (2CA) of that section).
subsection (2) unchanged
Section 1142(2)1 change
1142 Agent of independent status
subsections (1) – (1B) unchanged
2 Sections 1145 to 1150 ~~apply for the purpose of supplementing subsection (1)~~modify the application of this section in relation to transactions carried out on behalf of a non-UK resident company by a person in the United Kingdom acting as—
Section 1142(2)1 change
1142 Agent of independent status
subsections (1) – (1B) unchanged
2 Sections 1145 to ~~1151~~1150 modify the application of this section in relation to transactions carried out on behalf of a non-UK resident company by a person in the United Kingdom acting as—
Section 1142(2)(a)1 change
1142 Agent of independent status
subsections (1) – (1B) unchanged
2 Sections 1145 to 1150 modify the application of this section in relation to transactions carried out on behalf of a non-UK resident company by a person in the United Kingdom acting as—
a a broker (section 1145), or
b an investment manager (sections 1146 to 1150), or
Section 1142(2)(c)1 deletion
1142 Agent of independent status
subsections (1) – (1B) unchanged
2 Sections 1145 to 1150 modify the application of this section in relation to transactions…
a a broker (section 1145), or
b an investment manager (sections 1146 to 1150).
c ~~a Lloyd's agent (section 1151).~~
Section 1142(2)(c)1 deletion
1142 Agent of independent status
subsections (1) – (1B) unchanged
2 Sections 1145 to 1150 modify the application of this section…
a a broker (section 1145), or
b an investment manager (sections 1146 to 1150).
c ~~a Lloyd's agent (section 1151).~~
Section 1143(2D)1 change
1143 Preparatory or auxiliary activities
subsections (1) – (2C) unchanged
2CA For the purposes of this section, one person (“A”) is closely related to another person (“B”) if A has a 25% investment in B, or B has a 25% investment in A, or a third person has a 25% investment in each of A and B, and references to a “25% investment” are to be read in accordance with section 259ND of TIOPA 2010.For the purposes of this section, one person (“A”) is closely related to another person (“B”) if, based on all the relevant facts and circumstances, A has control of B or A and B are under the control of the same persons, including if the 50% investment condition is met in relation to A and B.
subsections (2E) onwards unchanged
Section 1146(2)1 change
1146 The independent investment manager conditions
1 This section applies if an investment transaction is carried out on behalf of a non-UK resident company in the course of the company's trade by a person in the United Kingdom acting as an investment manager.
2 In relation to the investment transaction, the circumstances in which the investment manager is regarded for the purposes of section 1142(1) as an agent of independent status acting in the ordinary course of the investment manager's business ~~are those~~include where each of the following conditions (the independent investment manager conditions) are met.
Section 1146(2)1 change
1146 The independent investment manager conditions
2 In relation to the investment transaction, the circumstances in which the investment manager is regarded for the purposes of section 1142(1) as an agent of independent status acting in the ordinary course of the investment manager's business include where — each of the following conditions (the independent investment manager conditions) are met.
Section 1146(6)1 deletion
1146 The independent investment manager conditions
subsections (1) – (5) unchanged
6 Condition D is that the non-UK resident company does not fall, for the purposes of section 1142, to be treated as not having a permanent establishment in the territory because of the 20% rule in section 1147.
subsection (7) unchanged
Section 11471 deletion
1147 Investment managers: the 20% rule
entire section omitted
Section 11481 deletion
1148 Interpretation of section 1147
entire section omitted
Section 11491 deletion
1149 Application of 20% rule to collective investment schemes
entire section omitted
Section 11506 insertions, 1 deletion
1150 Meaning of "investment manager" and "investment transaction"
former subsection (1) (definition of "investment manager" as person carrying on business of managing investments) replaced
1 The following definitions apply for the purposes of this Chapter.
2 An "investment manager" means a person who provides investment management services (which may include or comprise the provision of investment advice).
3 An "investment transaction" means any transaction other than a transaction with an excluded subject matter.
4 The following are excluded subject matters—
a land in the United Kingdom, and
b any commodity or other physical asset.
subsections (5) – (6) inserted (excluded subject matter exceptions)
Section 11511 deletion
1151 Lloyd's agents
entire section omitted
Section 11521 deletion
1152 Investment managers: disregard of certain chargeable profits
entire section omitted
Schedule 41 change
Schedule 4 — Index of defined expressions
investment manager (in Chapter 5 of Part 8B) … section ~~1150(1)~~1150
Schedule 41 change
Schedule 4 — Index of defined expressions
investment manager (in Chapter 2 of Part 24) … section ~~1150(1)~~1150
Schedule 41 change
Schedule 4 — Index of defined expressions
investment transaction (in Chapter 5 of Part 8B) … section ~~1150(1)~~1150
Schedule 41 deletion
Schedule 4 — Index of defined expressions
other index entries unchanged
~~potentially advantaged person (in Part 21C) — section 939D(2)~~

Finance Act 2012

34 amendments · open Act

Section 102(3)1 change
102 Policyholders’ rate of tax on policyholders’ share of I – E profit
subsections (1)–(2) unchanged
3The policyholders’ rate of tax is the rate at which income tax at ~~the basic rate~~the savings basic rate is charged for the tax year that begins on 6 April in the financial year.
subsections (4)–(5) unchanged
Section 2232 changes
223 Tax ~~agents~~advisers: ~~dishonest~~sanctionable conduct
1Schedule 38 contains provision about tax ~~agents~~advisers who engage in ~~dishonest~~sanctionable conduct.
subsections (2)–(5) unchanged
Schedule 24 ¶ 31 insertion
Schedule 24 — Machine games duty
paragraph 3 sub-paragraphs (1) – (4) unchanged (as amended by paragraph 16(a))
5 In this paragraph, "bingo" includes any version of that game, whatever name it is called.
Schedule 24 ¶ 3 11 change
Schedule 24 — Machine games duty
paragraph 3 heading and introductory text: "Exclusions from dutiable machine games"
1 A game that would otherwise be a dutiable machine game does not count as one if—
a it involves betting on future real events,
b ~~bingo duty is charged on the playing of it,~~it is a game of bingo in which two or more persons participate on the same premises,
c lottery duty is charged on the taking of a ticket or chance in it, or
d it is a real game of chance and playing it— (i) amounts to dutiable gaming for the purpose of gaming duty, and (ii) takes place in a casino on licensed premises.
sub-paragraphs (2) – (4) unchanged
Schedule 381 change
Schedule 38 — ~~Tax agents: dishonest conduct~~Tax advisers: sanctionable conduct
Schedule 381 insertion
Part 3 unchanged
Part 3AConduct notices
25BGiving of conduct notice
1This paragraph applies if HMRC determine that a person is engaging in or has engaged in sanctionable conduct.
2An authorised officer (or an officer of Revenue and Customs with the approval of an authorised officer) may notify the person of the determination.
3The notice must state the grounds on which the determination was made.
4For the effect of notifying the person, see paragraph 29(2).
5A notice under this paragraph is referred to as a "conduct notice".
25CWithdrawal of conduct notice
1An officer of Revenue and Customs may withdraw a conduct notice at any time.
2If they do so, they must notify the person of the withdrawal.
3A conduct notice given to a person is to be treated as withdrawn at the applicable deadline if HMRC have not, before such deadline, assessed the person to a penalty under Part 4 in respect of the conduct forming the subject of the notice.
4In this paragraph "the applicable deadline" has the same meaning as in paragraph 30(3) (assessment of penalties).
Schedule 38 ¶ 14 changes
Schedule 38 — Tax advisers: sanctionable conduct
1This Schedule is arranged as follows—
athis Part explains who is a tax ~~agent~~adviser and what it means to engage in ~~dishonest~~sanctionable conduct,
bPart 2 sets out the process for establishing whether someone is engaging in or has engaged in dishonest conduct,
cPart 3 confers power on HMRC to obtain relevant documents,
caPart 3A confers power on HMRC to issue conduct notices,
dPart 4 sets out sanctions for engaging in ~~dishonest~~sanctionable conduct, and
paragraph (e) unchanged
Schedule 38 ¶ 103 changes, 2 insertions
Content of notice
10
1A file access notice may, subject to sub-paragraph (1A), require the provision of—
a particular relevant documents specified in the notice, or
b all relevant documents in the document-holder's possession or power.
1AIn a case falling within case A (see paragraph 7), a file access notice may only require the provision of relevant documents relating to clients of the tax adviser with respect to whom the authorised officer of Revenue and Customs mentioned in paragraph 7(2) has reasonable grounds to suspect the tax adviser is engaging in or has engaged in sanctionable conduct.
1BIn a case falling within Case A (see paragraph 7), a file access notice—
a must identify the clients of the tax adviser (in relation to whom relevant documents are required to be provided), and
b may identify those clients by reference to a class or description of clients.
2~~A file access notice does not need to identify the clients of the tax agent.~~In a case falling within Case B (see paragraph 7), a file access notice does not need to identify the clients of the tax ~~agent~~adviser.
3A file access notice addressed to anyone other than the tax ~~agent~~adviser must name the tax ~~agent~~adviser.
Schedule 38 ¶ 133 changes
Approval by tribunal
13
1The tribunal may not approve the giving of a file access notice unless—
paragraphs (a)–(c) unchanged
dthe document-holder and (where different) the tax ~~agent~~adviser have been told that relevant documents are to be required and given a reasonable opportunity to make representations to an officer of Revenue and Customs, and
paragraph (e) unchanged
2Nothing in sub-paragraph (1) requires the tribunal to determine whether ~~an individual~~a person is engaging in or has engaged in ~~dishonest~~sanctionable conduct.
Schedule 38 ¶ 21 insertion
Tax adviser
italic heading: Tax agent — substituted
2Tax adviser
1In this Schedule "tax adviser" means—
aan organisation that, in the course of a business carried on by it, assists other persons with their tax affairs, or
ban individual who, in the course of a business (whether carried on by the individual as a sole trader or by an organisation for which the individual works), assists other persons with their tax affairs.
2An organisation or individual assists another person with their tax affairs if the organisation or individual does any of the following—
aadvises the other person in relation to tax;
bacts or purports to act as an agent on behalf of the other person in relation to tax;
cprovides assistance with any document that is likely to be relied on by HMRC to determine the other person's tax position;
dprovides assistance for non-tax purposes, if the assistance is provided in the knowledge that it will be, or is likely to be, used by the other person in connection with the other person's tax affairs.
3A person can be a tax adviser even if they, or an organisation for which they work, are appointed indirectly (for example, at the request of someone other than their client).
4In this Schedule (except in paragraph 17) "client", in relation to a tax adviser, means a person who the adviser, in the course of a business (whether carried on by the adviser or by an organisation for which the adviser works), assists with their tax affairs.
Schedule 38 ¶ 202 changes, 1 insertion
Appeal against file access notice
20
1If the document-holder is a person other than the tax ~~agent~~adviser, the document-holder may appeal against the file access notice, or any requirement in it, on the ground that it would be unduly onerous to comply with the notice or requirement.
1AIf—
a the document-holder is the tax adviser, and
b the giving of the file access notice was not approved by the tribunal (see paragraph 7(1A)),
the document-holder may appeal against the file access notice or any requirement in it.
2Notice of appeal must be given— under sub-paragraph (1) or (1A)
remainder of sub-paragraph (2) unchanged
sub-paragraphs (3)–(5) unchanged
Schedule 38 ¶ 231 insertion
Increased daily default penalty
paragraph 23 unchanged
23AIncreased daily default penalty
1This paragraph applies if—
a a penalty under paragraph 23 is assessed in respect of a person's failure to comply with a file access notice,
b the failure continues for more than 30 days beginning with the date on which notification of that assessment was issued, and
c HMRC has (at any time) told the person that an application may be made under this paragraph for an increased daily penalty to be assessable.
2An officer of Revenue and Customs may make an application to the tribunal for the person to be liable to an increased daily penalty.
3If the tribunal decides that the person should be liable to an increased daily penalty—
a the tribunal must determine the day from which the increased daily penalty is to apply and the maximum amount of that penalty ("the new maximum amount"), and
b from that day, paragraph 23 has effect in the person's case as if the new maximum amount were substituted for the amount for the time being specified there.
4The new maximum amount may not be more than £1,000.
5In determining the new maximum amount the tribunal must have regard to—
a the likely cost to the person of complying with the notice,
b any benefits to the person of not complying with it, and
c any benefits to anyone else resulting from the person's non-compliance.
6If the tribunal makes a determination under this paragraph, HMRC must notify the person.
7The notification must specify the new maximum amount and the day from which it applies.
Schedule 38 ¶ 251 insertion
paragraph 25 unchanged
25APenalties for inaccurate documents
1If a person, in purported compliance with a file access notice, provides a document that contains an inaccuracy, the person is liable to a penalty not exceeding £3,000 where—
a the inaccuracy is deliberate or due to a failure by the person to take reasonable care,
b the person knows of the inaccuracy at the time the document is provided but does not inform HMRC at that time, or
c the person discovers the inaccuracy some time later and fails to take reasonable steps to inform HMRC.
2Where the document contains more than one inaccuracy, a penalty is payable for each inaccuracy.
Schedule 38 ¶ 261 insertion
Penalty for ~~dishonest~~sanctionable conduct
261 An individual who engages in dishonest conduct is liable to a penalty.
2 Subject to paragraph 27, the penalty to which the individual is liable is to be—
a no less than £5,000, and
b no more than £50,000.
3 In assessing the amount of the penalty, regard must be had to—
a whether the individual disclosed the dishonest conduct,
b whether that disclosure was prompted or unprompted,
c the quality of that disclosure, and
d the quality of the individual's compliance with any file access notice in connection with the dishonest conduct.
4 An individual "discloses" dishonest conduct by—
a telling HMRC about it,
b giving HMRC reasonable help in identifying the client or clients concerned and in quantifying the loss of tax revenue (if any) brought about by it, and
c allowing HMRC access to records for the purpose of ensuring that any such loss is recovered or otherwise properly accounted for.
5 A disclosure is "unprompted" if it is made at a time when the individual has no reason to believe that HMRC have discovered or are about to discover the dishonest conduct.
6 Otherwise, a disclosure is "prompted".
7 In relation to disclosure or compliance, "quality" includes timing, nature and extent.
26Penalty for sanctionable conduct
1 A person who engages in sanctionable conduct is liable to a penalty.
2 The penalty to which the person is liable is—
a in a case in which potential lost revenue is attributable to the sanctionable conduct (see paragraph 26C)—
i the appropriate percentage of the potential lost revenue determined in accordance with paragraph 26C, or
ii if higher, £7,500;
b in any other case, £7,500.
3 But if the person would, but for this sub-paragraph, be liable to a penalty of an amount that is higher than £1,000,000, the person is instead liable to a penalty of that amount.
4 For the purposes of this paragraph, the "appropriate percentage" is—
a 70%, or
b if the person disclosed the sanctionable conduct, the percentage determined in accordance with sub-paragraphs (5) and (6).
5 If the person disclosed the sanctionable conduct, HMRC must reduce the appropriate percentage from 70% to a percentage that reflects the quality of the disclosure.
6 But the appropriate percentage may not be reduced to a percentage that is below—
a in the case of a prompted disclosure, 35%, and
b in the case of an unprompted disclosure, 20%.
7 This paragraph is subject to paragraphs 26B (increased penalties) and 27 (special reduction).
26ADisclosure of conduct
1 For the purposes of paragraph 26, a person "discloses" sanctionable conduct by—
a telling HMRC about it,
b giving HMRC reasonable help in identifying the client or clients concerned and in quantifying the loss of tax revenue (if any) brought about by it, and
c allowing HMRC access to records for the purpose of ensuring that any such loss is recovered or otherwise properly accounted for.
2 A disclosure is "unprompted" if it is made at a time when the person has no reason to believe that HMRC have discovered or are about to discover the sanctionable conduct.
3 Otherwise, a disclosure is "prompted".
4 In relation to disclosure, "quality" includes timing, nature and extent.
26BIncreased penalties — see new paragraph 26B inserted by this provision
26CPotential lost revenue — see new paragraph 26C inserted by this provision
Schedule 38 ¶ 272 changes
Special reduction
27
1This paragraph applies if HMRC propose to assess ~~an individual~~a person to a penalty under paragraph 26 ~~of £5,000~~.
2If they think it right because of special circumstances, HMRC may take one or more of the following steps—
areduce the penalty ~~to an amount below £5,000 (which may be nil)~~,
paragraphs (b)–(c) unchanged
sub-paragraph (3) unchanged
Schedule 38 ¶ 288 changes, 1 deletion
Power to publish details
28
1~~The Commissioners may publish information about an individual if the individual incurs a penalty under paragraph 26.~~The Commissioners must publish information about a person if the person incurs a penalty under paragraph 26 of more than £7,500.
2The information that may be published is—
athe ~~individual's~~person's name (including any trading name, previous name or pseudonym),
bthe ~~individual's address~~person's postcode,
cthe nature of any business carried on by the ~~individual~~person,
paragraph (d) unchanged
ethe periods or times to which the ~~dishonest~~sanctionable conduct relates,
fany other information the Commissioners consider it appropriate to publish in order to make clear the ~~individual's~~person's identity, and
gthe link (if there is one) between the ~~dishonest~~sanctionable conduct and any inaccuracy, failure or action as a result of which information is published under section 94 of FA 2009.
3No information may be published under this paragraph if the penalty incurred by the individual is £5,000 or less.
4Subsections (5), (7) to (9) and (11) of section 94 of FA 2009 apply to publishing information about ~~an individual~~a person under this paragraph as they apply to publishing information about a person under that section.
5If, in acting as a tax ~~agent~~adviser, the ~~individual~~person works or worked for an organisation, sub-paragraph (2)(f) includes power to publish such information about that organisation as the Commissioners consider appropriate in order to make clear the ~~individual's~~person's identity.
sub-paragraph (6) unchanged
Schedule 38 ¶ 291 change, 1 deletion
Assessment of penalties
29
sub-paragraph (1) unchanged
2But, in the case of a penalty under Part 4, they may only do so if a conduct notice has been given to the person and either—
a the time allowed for giving notice of appeal against the determination has expired without notice of appeal being given, or
b notice of appeal against the determination was given within the time allowed, but the appeal has been withdrawn or the determination confirmed.not withdrawn.
3Paragraph 7(4) applies for the purposes of sub-paragraph (2)(b).
sub-paragraph (4) unchanged
Schedule 38 ¶ 31 change
~~Dishonest~~Sanctionable conduct
italic heading substituted
Schedule 38 ¶ 31 insertion
Sanctionable conduct
3Dishonest conduct / Sanctionable conduct
1An individual "engages in dishonest conduct" if, in the course of acting as a tax agent, the individual does something dishonest with a view to bringing about a loss of tax revenue.
1For the purposes of this Schedule, a person "engages in sanctionable conduct" if, in the course of acting as a tax adviser, the person does something with the intention of bringing about a loss of tax revenue.
sub-paragraphs (2), (4)–(6) unchanged
Schedule 38 ¶ 31 change
Sanctionable conduct
sub-paragraphs (1)–(2) unchanged
3Nor does it matter whether the ~~individual~~person is acting on the instruction of clients.
sub-paragraphs (4)–(7) unchanged
Schedule 38 ¶ 31 insertion
Sanctionable conduct
sub-paragraphs (1)–(6) unchanged
7A reference in this paragraph to doing something dishonest includes—
a dishonestly omitting to do something, and
b advising or assisting a client to do something that the individual knows to be dishonest.
7A reference in this paragraph to doing something includes omitting to do something.
Schedule 38 ¶ 302 changes
Deadline for assessment
30
sub-paragraphs (1)–(2) unchanged
3For a penalty under Part 4, the applicable deadline is the end of the period of 12 months beginning with the later of—
athe first day on which HMRC may assess the penalty (see paragraph 29(2)) ~~(see paragraph 29(2))~~, and
paragraph (b) unchanged
4If a loss of tax revenue is brought about by the ~~dishonest~~sanctionable conduct, day X is—
paragraphs (a)–(b) unchanged
5Otherwise, day X is the day on which HMRC first knew about the ~~dishonest~~sanctionable conduct.
Schedule 38 ¶ 311 change, 1 insertion
Appeal against penalty
31
1A person may appeal against a decision of HMRC—
athat a penalty is payable under Part 3 or 4 of this Schedule, or
paragraph (b) unchanged
1ABut sub-paragraph (1)(b) does not give a right of appeal against the amount of an increased daily penalty payable as a result of paragraph 23A (increased daily default penalty).
sub-paragraphs (2)–(6) unchanged
Schedule 38 ¶ 351 change, 1 deletion
Power to change amount of penalties
35
1If it appears to the Treasury that there has been a change in the value of money since the last relevant day, they may by regulations substitute for the sums for the time being specified in paragraphs 22(1), 23, 26(2), 27(1) and (2)(a) and 28(3) such other sums as appear to them to be justified by the change.
1The Treasury may by regulations amend any of paragraphs 22(1), 23, 23A(4), 25A(1), 26(2) and (3), 26B(2) and 28(1) so as to increase or decrease the amount of a penalty for the time being specified in those paragraphs to reflect a change in the value of money.
2"Relevant day", in relation to a specified sum, means—
a the day on which this Act is passed, and
b each day on which the power conferred by sub-paragraph (1) has been exercised in relation to that sum.
sub-paragraphs (3)–(5) unchanged
Schedule 38 ¶ 371 insertion
Tax
37
1"Tax" means—
paragraphs (a)–(la) unchanged
lbdiverted profits tax,
lcmultinational top-up tax,
lddomestic top-up tax,
leannual tax on enveloped dwellings,
lfplastic packaging tax,
lgeconomic crime (anti-money laundering) levy,
lhdigital services tax,
lisoft drinks industry levy,
paragraphs (m)–(n) unchanged
sub-paragraphs (2)–(4) unchanged
Schedule 38 ¶ 383 changes
General interpretation
38In this Schedule—
"appointed" and other definitions unchanged
"client" (except in paragraph 17)—
has the meaning given in paragraph 2(1), and
has the meaning given in paragraph 2(4), and
remainder of "client" definition unchanged
"conduct notice" has the meaning given in ~~paragraph 4~~paragraph 25B;
other definitions unchanged
"organisation" includes any person or firm carrying on a business;
"organisation" means any body corporate, partnership or other organisation;
remaining definitions unchanged
Schedule 38 ¶ 391 deletion
39 Clients
paragraph 39 omitted in full
Schedule 38 ¶ 401 change
Loss of tax revenue
40A loss of tax revenue is attributable to ~~dishonest~~sanctionable conduct if the conduct brought about the loss.
Schedule 38 ¶ 79 changes, 1 insertion
Circumstances in which power is exercisable
7
1The power in paragraph 8 is exercisable only in case A or case B and, in respect of a person other than a tax adviser, only with the approval of the tribunal.
1AAn officer of Revenue and Customs may ask for the approval of the tribunal before exercising the power in paragraph 8 in respect of a tax adviser (and for the effect of not obtaining such approval see paragraph 20(1A) (appeals)).
2Case A is where a conduct notice has been given to an individual and either—
a the time allowed for giving notice of appeal against the determination has expired without any such notice being given, or
b notice of appeal against the determination was given within that time, but the appeal has been withdrawn or the determination confirmed.Case A is where an authorised officer of Revenue and Customs has reasonable grounds to suspect that a person is engaging in, or has engaged in, sanctionable conduct.
3Case B is where—
a~~an individual~~a person has been convicted of an offence relating to tax that involves fraud or dishonesty,
bthe offence was committed after the ~~individual~~person became a tax ~~agent~~adviser (whether or not the ~~individual~~person was still a tax ~~agent~~adviser when it was committed and regardless of the capacity in which it was committed),
sub-paragraph (3)(c)–(d) unchanged
4For the purposes of this paragraph, a ~~determination or~~ conviction that is appealed is not considered to have been ~~confirmed or~~ upheld until—
a the time allowed for bringing any further appeal has expired, or
b if a further appeal is brought within that time, that further appeal has been withdrawn or determined.
5In this Schedule, a reference to "the tax ~~agent~~adviser" is—
ain a case falling within case A, a reference to the ~~individual~~person mentioned in sub-paragraph (2), and
bin a case falling within case B, a reference to the ~~individual~~person mentioned in sub-paragraph (3).
6It does not matter whether the ~~individual~~person is still a tax ~~agent~~adviser when the power in paragraph 8 is to be exercised.
Schedule 38 ¶ 81 change
File access notice
8
2The persons are—
athe tax ~~agent~~adviser, and
paragraph (b) unchanged
sub-paragraphs (1), (3)–(5) unchanged
Schedule 38 ¶ 93 changes
Relevant documents
9
1"Relevant documents" means the tax ~~agent's~~adviser's working papers (whenever acting as a tax ~~agent~~adviser) and any other documents received, created, prepared or used by the tax ~~agent~~adviser for the purposes of or in the course of assisting clients with their tax affairs.
sub-paragraph (2) unchanged
3The reference in sub-paragraph (1) to clients—
aincludes former clients, and
bis not limited to the clients with respect to whom the tax agent is engaging in or has engaged in dishonest conduct.
Schedule 38 Part 21 deletion
PART 2 — Establishing dishonest conduct
paragraphs 4–6 omitted in full
Schedule 38 Part 31 change
PART 3 Power to obtain tax ~~agent's~~adviser's files etc
Schedule 38 Part 41 change
PART 4 Sanctions for ~~dishonest~~sanctionable conduct

Scotland Act 1998

2 amendments · open Act

Section 80C(2B)1 change
80C Power to set Scottish rates for Scottish taxpayers
1The Scottish Parliament may by resolution (a “Scottish rate resolution”) set the Scottish basic rate, and any other rates, for the purposes of section 11A of the Income Tax Act 2007.
2AWhere a Scottish rate resolution sets more than one rate it must also set limits or make other provision to enable it to be ascertained, for the purposes of that section, which rates apply in relation to a Scottish taxpayer.
2B~~A Scottish rate resolution may not provide for different rates to apply in relation to different types of income.~~If income tax is charged at Scottish rates on the non-savings income of a Scottish taxpayer for a tax year (within the meaning of section 11A of the Income Tax Act 2007), those rates are treated for income tax purposes as if they were—
aScottish rates for all non-savings income other than property income which are set for the tax year at the same rates as the Scottish rates, and
bseparate Scottish rates for property income which are set for the tax year at the same rates as the Scottish rates,
but, subject to that, a Scottish rate resolution may not provide for different rates to apply in relation to different types of income.
subsections (2C)–(8) unchanged
Section 80C(2B)1 change, 1 insertion
80C Power to set Scottish rates for Scottish taxpayers
subsections (1) – (2A) unchanged
2B If income tax is charged at Scottish rates on the non-savings income of a Scottish taxpayer for a tax year (within the meaning of section 11A of the Income Tax Act 2007), those rates are treated for income tax purposes as if they were—A Scottish rate resolution—
a ~~Scottish rates for all non-savings income other than property income which are set for the tax year at the same rates as the Scottish rates, and~~may provide for the rates applicable in relation to property income to be different from the rates applicable in relation to other income, but
b ~~separate Scottish rates for property income which are set for the tax year at the same rates as the Scottish rates,~~may not provide for different rates to apply in relation to different types of other income.
~~but, subject to that, a Scottish rate resolution may not provide for different rates to apply in relation to different types of income.~~
2BA But Scottish rates applicable in relation to property income must set the same limits or make the same other provision enabling those rates to be ascertained as are set or made in relation to rates applicable in relation to income other than property income.
subsections (2C) – (8) unchanged

Government of Wales Act 2006

6 amendments · open Act

Section 116D(1)3 insertions
116D Power to set Welsh rates for Welsh taxpayers
1 The Senedd may by resolution (a "Welsh rate resolution") set one or more of the following—
a a Welsh rate for the purpose of calculating the Welsh basic rate;
b a Welsh rate for the purpose of calculating the Welsh higher rate;
c a Welsh rate for the purpose of calculating the Welsh additional rate.
d a Welsh rate for the purpose of calculating the Welsh property basic rate;
e a Welsh rate for the purpose of calculating the Welsh property higher rate;
f a Welsh rate for the purpose of calculating the Welsh property additional rate.
subsections (2) – (7) unchanged
Section 116D(2)1 change, 1 insertion
116D Power to set Welsh rates for Welsh taxpayers
subsection (1) unchanged
2 See section 6B of the Income Tax Act 2007 for provision about the calculation of the Welsh basic, higher and additional rates and the Welsh property basic, higher and additional rates, and ~~section 11B~~sections 11B and 11CB of that Act for provision about the income of Welsh taxpayers charged at those rates.
subsections (3) – (7) unchanged
Section 116I1 insertion
116I Supplemental powers to modify enactments
subsections (1) – (2) unchanged
2A The Treasury may by order modify any enactment not contained in Chapter 2 of Part 2 of the Income Tax Act 2007 (rates at which income tax is charged) so that it makes provision, in relation to a Welsh taxpayer, by reference to the Welsh property basic rate, the Welsh property higher rate or the Welsh property additional rate, instead of the property basic rate, the property higher rate or the property additional rate.
subsections (3) – (8) unchanged
Section 116I(1)3 changes
116I Supplemental powers to modify enactments
1 The Treasury may by order modify ~~section 11B of the Income Tax Act 2007 (income charged at the Welsh basic, higher and additional rates)~~sections 11B and 11CB of the Income Tax Act 2007 (income charged at Welsh rates) for the purpose of altering—
a the definition of the income which is charged to income tax at the rates provided for under the section concerned, or
b the application of the section concerned in relation to a particular class of income which is so charged.
subsections (2) – (8) unchanged
Section 116I(3)(a)1 insertion
116I Supplemental powers to modify enactments
subsections (1) – (2) unchanged
3 If the Treasury consider it necessary or expedient to do so, they may by order provide that—
a a Welsh rate set by the Senedd for a tax year for the purpose of calculating the Welsh basic rate, Welsh higher rate or Welsh additional rate, or, as the case may be, the Welsh property basic rate, the Welsh property higher rate or the Welsh property additional rate, or
b the fact that a Welsh rate has not been set by the Senedd for a tax year for any one or more of those purposes,
does not require any change in the amounts repayable or deductible under PAYE regulations between the beginning of that year and such later date as may be specified in the order.
subsections (4) – (8) unchanged
Section 116K(3)(b)1 insertion
116K Report by the Comptroller and Auditor General
subsections (1) – (2) unchanged
3 "The Welsh rate provisions" are—
a any provision made by or under this Chapter, and
b any provision made by or under the Income Tax Acts relating to the Welsh basic rate, the Welsh higher rate or the Welsh additional rate or relating to the Welsh property basic rate, the Welsh property higher rate or the Welsh property additional rate.
subsections (4) – (8) unchanged

Income Tax (Earnings and Pensions) Act 2003

74 amendments · open Act

Section 1(3)1 insertion
1 Overview of contents of this Act
subsections (1) – (2) unchanged
3 This Act also—
a confers certain reliefs in respect of liabilities of former employees (see Part 8),
aa makes provision for the high income child benefit charge (see Chapter 8 of Part 10),
ab makes provision for the winter fuel payment charge (see Chapter 9 of Part 10),
b provides for the assessment, collection and recovery of income tax in respect of employment, pension or social security income that is PAYE income (see Part 11),
paragraphs (ba) – (c) unchanged
Section 7(5)(a)2 changes, 1 insertion
7 Meaning of “employment income”, “general earnings” and “specific employment income”
subsections (1) – (4) unchanged
5 Subsection (2)(b) or (3)(b) refers to any amount treated as earnings under—
a Chapters 7 to 1011 of this Part (agency workers, workers under arrangements made by intermediaries, ~~and~~ workers providing services through managed service companies and purported umbrella companies),
paragraphs (b) – (d) unchanged
subsection (6) unchanged
Section 274 changes, 1 deletion
27 UK-based earnings for year when employee not resident in UK
1 This section applies to general earnings for a tax year for which the employee is not resident in the United Kingdom if they are—
a general earnings in respect of duties performed in the United Kingdom that do not fall within paragraph (c),
b general earnings from overseas Crown employment subject to United Kingdom tax that do not fall within paragraph (c), or
c general earnings to which section 402B applies and which have been reduced by a claim for relief under section 414 (reduction in other cases of foreign service).
2 The full amount of any general earnings within subsection ~~(1)(a) or (b)~~(1) which are received in a tax year is an amount of “taxable earnings” from the employment in that year.
2A The percentage of the general earnings within subsection (1)(c) that are an amount of “taxable earnings” from the employment in the tax year in which they are received is given by a formula… [subsection (2A) omitted].
3 ~~Subsections (2) and (2A) apply~~Subsection (2) applies whether or not the employment is held when the earnings are received.
Section 381 change, 2 insertions
38 Earnings for period of absence from employment
1 ~~This section~~Subsection (2) applies if a person ordinarily performs the whole or part of the duties of an employment in the United Kingdom.
2 General earnings for a period of absence from the employment are to be treated for the purposes of this Chapter as general earnings for duties performed in the United Kingdom except in so far as they would, but for that absence, have been general earnings for duties performed outside the United Kingdom.
3 If and to the extent that general earnings for a period of absence from an employment are not treated for the purposes of this Chapter as general earnings in respect of duties performed in the United Kingdom, the general earnings are to be treated for the purposes of this Chapter as general earnings in respect of duties performed outside the United Kingdom.
4 For the purposes of this section references to “general earnings for a period of absence” do not include any general earnings to which section 221A (cancelled, moved or curtailed shift) applies (see section 38A).
Section 381 insertion
38 Earnings for period of absence from employment
section 38 (as amended by section 23(3)) unchanged
38A Earnings relating to duties not performed
1 This section applies for determining the extent to which general earnings that relate to duties that were not performed are to be treated for the purposes of this Chapter as general earnings in respect of duties performed in the United Kingdom.
2 For the purposes of this section—
a “general earnings” means an amount of general earnings specified in the first column of the table, and
b the “duties that were not performed”, in relation to general earnings, means the duties specified in the corresponding entry in the second column of the table.
Section 41P1 insertion
41P Claim for relief for qualifying new residents: qualifying foreign employment income
subsections (1) – (4) unchanged
4A But a deduction for that purpose is to be made only from qualifying foreign employment income.
remaining subsections unchanged
Section 441 change, 2 deletions
44 Treatment of workers supplied by agencies
subsections (1) – (3) unchanged
4 Subsection (5) applies if (whether before or after the worker begins to provide the services)—
a the client provides the agency with a fraudulent document which is intended to constitute evidence that, by virtue of subsection (2)(a), this section does not or will not apply.~~, or~~
b a relevant person provides the agency with a fraudulent document which is intended to constitute evidence that, by virtue of subsection (2)(b), this section does not or will not apply.
5 In relation to services the worker provides to the client after the fraudulent document is provided—
a subsection (3) does not apply,
b the worker is to be treated for income tax purposes as holding an employment with the client ~~or (as the case may be) with the relevant person~~, the duties of which consist of the services, and
6 In subsections (4) and (5) “relevant person” means a person, other than the client, the worker or a person connected with the client or with the agency, who carries on business in the United Kingdom.
part-101 insertion
Part 10 Social security income etc
contents of Part 10 unchanged
part-10-chapter-82 insertions
Part 10 — Social security income etc
Chapters 1 – 8 unchanged
Chapter 9
Winter fuel payment charge
681I Winter fuel payment charge
1 A person (“P”) is liable to a charge to income tax for a tax year if—
a P is entitled to a winter fuel payment in respect of the qualifying week, and
b P’s total income for the tax year exceeds £35,000.
2 The charge is to be known as the “winter fuel payment charge”.
3 The amount of the charge is equal to the amount of the winter fuel payment.
4 But P is not liable for the charge if P is entitled to a relevant benefit on any day in the qualifying week.
5 The following are “relevant benefits”—
a income support under section 124 of SSCBA 1992 or section 123 of SSCB(NI)A 1992;
b an income-based jobseeker’s allowance under section 1 of JSA 1995 or Article 3 of JS(NI)O 1995;
c state pension credit under section 1 of SPCA 2002 or section 1 of SPCA(NI) 2002;
d an income-related employment and support allowance under section 1(2)(b) of WRA 2007 or Part 1 of the Welfare Reform Act (Northern Ireland) 2007;
e universal credit under Part 1 of WRA 2012 or Part 2 of the Welfare Reform (Northern Ireland) Order 2015.
6 In this section—
a a “winter fuel payment” means a payment under the Social Fund Winter Fuel Payment Regulations 2025, the Winter Heating Assistance (Pension Age) (Scotland) Regulations 2024 or the Social Fund Winter Fuel Payment Regulations (Northern Ireland) 2025;
b the “qualifying week”, in relation to a tax year, means the week beginning on the third Monday in the September of that tax year.
681J Alteration of income limit by Treasury order
1 The Treasury may by order substitute another amount for the amount for the time being specified in section 681I(1)(b).
2 An order under this section has effect for tax years beginning after the order is made.
3 A statutory instrument containing an order under this section which increases any person’s liability to income tax may not be made unless a draft of it has been laid before and approved by a resolution of the House of Commons.
part-21 insertion
Part 2 — Employment income: charge to tax
Chapters 1 – 10 unchanged
Chapter 11 — Umbrella companies
61Y Umbrella companies: joint and several liability — Each relevant party (see section 61Z) is, along with the umbrella company, jointly and severally liable to pay any amount payable, in accordance with the PAYE provisions, by the umbrella company in relation to a qualifying umbrella company payment.
61Z Relevant parties — defines which contracting parties become jointly and severally liable alongside the umbrella company.
61Z1 Purported umbrella companies — extends liability to persons who hold themselves out as umbrella companies without employing the worker.
61Z2 Disclosures to liable persons — permits HMRC to disclose information to jointly and severally liable persons.
Section 61V1 insertion
61V Consequences of providing fraudulent information
subsections (1) – (4) unchanged
4A But where the fraudulent documentation condition would (ignoring this subsection) be met as a result of the provision of a fraudulent document intended to constitute evidence that section 61Y (umbrella companies) applies in relation to the services provided by the worker, that condition is to be treated as not met.
subsection (5) unchanged
Section 114(1)(a)2 changes
114 Cars, vans and related benefits
section 114 opening unchanged
1 This Chapter applies to a car or a van in relation to a particular tax year if in that year the car or van—
a is made available ~~(without any transfer of the property in it)~~ to an employee or a member of the employee's family or household—
i without any transfer of the property in it, or
ii in circumstances falling within section 116A (car or van made available with transfer of ownership),
paragraphs (b) and (c) unchanged
subsections (1A) – (2) unchanged
Section 1161 insertion
116 Meaning of when car or van is available to employee
section 116 unchanged
116A Car or van made available with transfer of ownership
1 A car or van is made available to an employee or a member of the employee's family or household in circumstances falling within this section if the car or van is made available—
a with a transfer of the property in it to the employee or member, and
b pursuant to qualifying arrangements.
2 For the purposes of this section, arrangements are “qualifying arrangements” if any of the following applies in relation to them—
a they include restrictions on the private use of the car or van by the employee or member;
b they provide for a person other than the employee or member to be the registered keeper of the car or van;
c they provide for the employee or member, after a certain period of time or in certain circumstances, to transfer the property in the car or van to another person for an amount determined in accordance with the arrangements;
d they are of a description specified in regulations made by the Treasury.
3 For the purposes of this Chapter, a car or van made available as mentioned in subsection (1) is to be treated as being so made available until the arrangements cease to have effect.
Section 116(1)2 changes
116 Meaning of when car or van is available to employee
1 For the purposes of this Chapter a car or van is available to an employee at a particular time if it is then made available, by reason of the employment ~~and without any transfer of the property in it,~~ to the employee or a member of the employee's family or household—
a without any transfer of the property in it, or
b in circumstances falling within section 116A.
subsections (2) – (3) unchanged
Section 117(1)1 change, 1 insertion
117 Meaning of car or van made available by reason of employment
1 For the purposes of this Chapter a car or van made available by an employer to an employee or member of an employee's family or household is to be regarded as made available by reason of the employment unless subsection (2) ~~, (3) or (3)~~, (3) or (4) excludes the application of this subsection.
subsections (2) – (3) unchanged
4 Subsection (1) does not apply where—
a the employer carries on a business under which cars or vans of the same kind are made available to members of the public for sale or lease,
b the car or van in question is sold or leased to the employee or member in the normal course of that business, and
c the terms on which the car or van is sold or leased to the employee or member might reasonably be expected to be agreed between the employer and a member of the public with whom the employer deals at arm's length.
Section 136A1 insertion
136A Car with a CO₂ emissions figure: registration on or after IP completion day
subsections (1) – (4) unchanged
5 Subsection (2) is also subject to section 138A (certain cars with a CO₂ emissions figure and an electric range figure).
Section 1381 insertion
138 Automatic car for a disabled employee
section 138 unchanged
138A Certain cars with a CO₂ emissions figure and an electric range figure
1 This section applies to a car if—
a the car was first registered under VERA 1994 on or after 1 January 2025 and before 6 April 2028,
b the car's CO₂ emissions figure (as determined under section 136A) is 51 or more,
c the CO₂ emissions figure or (as the case may be) the CO₂ emissions (combined) figure specified in the car's qualifying emissions certificate was calculated in accordance with an emission standard other than the Euro 6d-ISC-FCM emission standard or the Euro 6e emission standard, and
d the car's electric range figure is 1 or more.
2 For the purposes of this Chapter, the car is to be treated as having a CO₂ emissions figure of 1.
Section 2211 insertion
221 Payments where employee absent because of sickness or disability
section 221 unchanged
221A Payment for cancelled, moved or curtailed shift
1 This section applies to a payment made to an employee under section 27BP of the Employment Rights Act 1996 (right to payment for a cancelled, moved or curtailed shift) by reason of the employee's employment.
2 The payment—
a is to be treated as earnings from the employment for the relevant tax year, and
b does not constitute earnings from the employment by virtue of any other provision.
3 For the purposes of this section and the application of Part 2 of this Act (charge to tax) to amounts treated as earnings under this section—
a “employee” includes a former employee or individual who was a prospective employee immediately before the shift was cancelled, moved or curtailed, and
b employment is to be construed accordingly.
Section 266(3)1 change, 1 insertion
266 Exemption of non-cash vouchers for exempt benefits
subsections (1) – (2) unchanged
3 No liability to income tax arises by virtue of Chapter 4 of Part 3 in respect of a non-cash voucher if the voucher evidences the employer's obligation to provide exempt benefits under any of the following provisions—
a section 237(1) (parking provision),
paragraphs (b) – (e) unchanged
f section 320C (recommended medical treatment)~~, or~~
g ~~section 320D (flu vaccinations)~~
g section 320D (flu vaccinations).
Section 267(2)1 change, 1 insertion
267 Exemption of credit-tokens used for exempt benefits
subsection (1) unchanged
2 Those provisions are—
a section 237(1) (parking provision),
paragraphs (b) – (g) unchanged
h section 320A (eye tests and special corrective appliances) ~~and~~
i section 320B (health screening and medical check-ups), and
j section 320D (flu vaccinations).
Section 3161 insertion
316 Accommodation, supplies and services used in employment duties
section 316 unchanged
316ZA Accommodation, supplies and services used in employment duties: payment or reimbursement of expenses
1 No liability to income tax arises in respect of the payment or reimbursement of expenses incurred by an employee on behalf of the employer in respect of the provision for the employee of accommodation, supplies or services if conditions A and B are met.
2 Condition A is that, at the time the accommodation, supplies or services are first provided, the intention of the employer is that—
a they will be used by the employee in performing duties of the employment, and
b any use of them for private purposes by the employee or members of the employee's family or household will not be significant.
3 Condition B is that where the provision is otherwise than on premises occupied by the employer—
a its sole purpose is to enable the employee to perform the duties of the employee's employment, and
b what is provided is not an excluded benefit.
4 In this section “for private purposes” and “excluded benefit” have the same meaning as in section 316.
Section 320A1 change, 1 insertion
320A Eye tests and special corrective appliances
1 No liability to income tax arises in respect of the provision for an employee of—
a a test of the employee's eyesight, or
b any special corrective appliances required as a result of the test, if the test is required by virtue of regulations under section 90 of the Health and Safety at Work etc. Act 1974.
1A No liability to income tax arises in respect of the payment or reimbursement of expenses incurred by an employee in respect of the provision for the employee of a test or appliances of the kind mentioned in subsection (1) if conditions A and B are met.
subsection (2) unchanged
3 In this section “conditions A and B” has the meaning given by regulations, whether by way of provision under subsection (1) or payment or reimbursement under subsection (1A).
Section 320C1 insertion
320C Recommended medical treatment
section 320C unchanged
320D Flu vaccinations
1 No liability to income tax arises in respect of the provision for an employee of an influenza vaccination if the provision is not made pursuant to relevant salary sacrifice arrangements.
2 No liability to income tax arises in respect of the payment or reimbursement of expenses incurred by an employee in respect of the provision for the employee of an influenza vaccination if the payment or reimbursement is not made pursuant to relevant salary sacrifice arrangements.
3 In this section “relevant salary sacrifice arrangements” means arrangements (whenever made, whether before or after the employment began) under which the employee gives up the right to receive an amount of general earnings or specific employment income in return for the provision of an influenza vaccination or the payment or reimbursement of the cost of such a vaccination.
Section 360A1 insertion
360A No deduction from earnings for social security contributions
section 360A unchanged
360B Additional household expenses
1 No deduction from earnings is allowed under this Chapter for additional household expenses which the employee incurs in the performance of the duties of the employment at home.
2 In this section, “household expenses” has the same meaning as in section 316A.
Section 5292 changes
529 Scope of tax advantages: option must be exercised ~~within 10 years~~by the specified anniversary
subsection (1) unchanged
2 But those sections only apply in cases where the option is exercised on or before the ~~tenth~~specified anniversary of—
a the date of the grant of the option, or
b if it is a replacement option, the date of the grant of the original option.
Section 529(2)1 insertion
529 Scope of tax advantages: option must be exercised by the specified anniversary
subsections (1) – (2) unchanged
2A In this section, “specified anniversary” means—
a in cases where the employer company is a specified Northern Ireland company, the tenth anniversary, and
b otherwise, the fifteenth anniversary.
Section 567(5)1 insertion
567 Amount charged to tax
subsections (1) – (4) unchanged
5 The deductions allowed from a pension, annuity or other item of pension income are those under— … section 567B (deduction where inheritance tax is paid in respect of pension death benefit); …
Section 567A1 insertion
Section inserted after section 567A
567B Cases where inheritance tax is paid in respect of pension death benefit — This section applies where there is taxable pension income that reflects a benefit paid under a pension scheme on the death of a member, and an amount of inheritance tax attributable to the value of the deceased's notional pension property is paid by the beneficiary, the personal representatives (and passed on to the beneficiary), or the scheme administrator (under section 226B of IHTA 1984). A deduction is allowed from the taxable pension income equal to the lesser of the inheritance tax paid and the taxable pension income for the year.
Section 579CA1 insertion
Section inserted after section 579CA
579CB Refund of overpaid inheritance tax treated as pension — This section applies where an amount of inheritance tax attributable to notional pension property of a deceased member of a registered pension scheme is paid, some or all of that tax is repaid by HMRC, and some or all of the repayment is received by a person other than the deceased's estate. The amount of the repayment received by that person is treated as pension income of that person for the tax year in which it is received.
Section 637T1 insertion
637T Availability of individual's lump sum and death benefit allowance where multiple lump sum death benefits paid
subsections (1) – (4) unchanged
5 Where any inheritance tax is attributable to the value of the individual's notional pension property, references in subsection (4) to the amount of a lump sum death benefit are to be read as references to the amount of that benefit after any reduction made pursuant to an adjustment under section 226B(5) of IHTA 1984.
Section 655(1)1 insertion
655 Structure of Part 10
1 The structure of this Part is as follows—
Chapter 2 to Chapter 7 entries unchanged
Chapter 8 makes provision for the high income child benefit charge.
Chapter 9 makes provision for the winter fuel payment charge.
subsections (2) – (3) unchanged
Section 6601 deletion
660 Taxable UK benefits: Table A
1 This is Table A — TAXABLE UK BENEFITS
other entries unchanged
~~Bereavement allowance — SSCBA 1992, section 39B; SSCB(NI)A 1992, section 39B~~
remaining entries unchanged
Section 6778 deletions
677 UK social security benefits wholly exempt from tax: Table B
1 No liability to income tax arises on the United Kingdom social security benefits listed in Table B.
entries for other benefits unchanged
~~"back to work bonus"~~
~~"bereavement payment"~~
~~"child's special allowance"~~
~~"council tax benefit"~~
~~"health in pregnancy grant"~~
~~"in-work credit"~~
~~"in-work emergency discretion fund payment"~~
~~"return to work credit"~~
remaining entries unchanged
Section 683(3B)1 insertion
683 PAYE income
subsections (1) – (3A) unchanged
3B "PAYE pension income" for a tax year does not include any taxable pension income that is treated as accruing in that tax year by section 572A or 579CA (temporary non-residents) or section 579CB (inheritance tax overpaid by scheme administrator: refund treated as pension).
subsections (3C) – (5) unchanged
Section 684(2)1 insertion
684 PAYE regulations
subsection (1) unchanged
2 The provision that may be made in PAYE regulations includes any such provision as is set out in the following list.
Items 1 – 2ZA unchanged
2ZB Provision—
a for deductions to be made, if and to the extent that the payee does not object, with a view to securing that income tax payable for a tax year by the payee by virtue of section 681I (winter fuel payment charge) is deducted from PAYE income of the payee paid during that year,
b for repayments to be made in a tax year, if and to the extent that the payee does not object, in respect of any amounts overpaid on account of income tax under that section for that tax year, and
c as to the circumstances and manner in which a payee may object to the making of deductions or repayments.
remaining Items unchanged
subsections (3) – (5) unchanged
Section 684(2)1 insertion
684 PAYE regulations
subsection (1) unchanged
2 The provision that may be made in PAYE regulations includes any such provision as is set out in the following list.
items 1 – 7 unchanged
Provision in connection with the recovery of amounts to which a person is jointly and severally liable as a result of Chapter 11 of Part 2 (umbrella companies).
Section 689(4)1 change
689 Employee of non-UK employer
subsections (1) – (3) unchanged
4 References in this section to prescribed provisions are to provisions referred to in PAYE regulations for the purposes of this Chapter, after “sections” insert 61Z1(5)(c)(i), [the existing listed sections follow].
Section 690(3)1 insertion
690 Internationally mobile employees
subsections (1) – (2) unchanged
3 If the employer makes an uncertain payment to the employee in any tax year, the entire uncertain payment is to be treated for the purposes of PAYE regulations as a payment of PAYE income of the employee.
subsections (4) – (6) unchanged
Section 690(4)1 change, 1 insertion
690 Internationally mobile employees
subsections (1) – (3) unchanged
4 An "uncertain payment" means a payment or part of a payment of, or on account of, an amount of employment income of the employee in respect of ~~to the extent that~~which—
a the employer cannot determine the extent to which the income relating to that payment or part is PAYE income, and
b this inability connects to the employee's international mobility in the mobile tax year.
subsections (5) – (6) unchanged
Section 690(4)1 insertion
690 Internationally mobile employees
subsections (1) – (3) unchanged
4 An "uncertain payment" means a payment or part of a payment of, or on account of, an amount of employment income of the employee in respect of which—
a the employer cannot determine the extent to which the income relating to that payment or part is PAYE income, and
b this inability connects to the employee's international mobility in the mobile tax year.
subsections (5) – (6) unchanged
Section 690A1 insertion
690A Employer notification for internationally mobile employees
subsections (1) – (2) unchanged
2A For the purposes of this section and section 690B—
a "mobile payment" means a payment of, or on account of, an amount of employment income of the employee in respect of which—
i the extent to which the income is PAYE income depends or may depend on the extent to which the employee's duties during the mobile tax year are performed in the United Kingdom, and
ii the reason it depends or may depend on that extent is connected to the employee being or having been internationally mobile in the mobile tax year;
b "non-PAYE proportion" means the best estimate that can reasonably be made of the overall proportion of the amount of all mobile payments made by the employer to the employee that would not be PAYE income if the employee were non-UK resident for the mobile tax year or the mobile tax year were a split year as respects the employee (as appropriate).
subsections (3) – (9) unchanged by this sub-paragraph
Section 690A(2)1 change
690A Employer notification for internationally mobile employees
1 This section applies in relation to an employee if the employee is or has been internationally mobile within the meaning of section 690(2) at any time in tax year 2025-26 or a subsequent tax year ("the mobile tax year").
2 The appropriate person may notify HMRC during the mobile tax year that the employer proposes to treat ~~a proportion of any uncertain payment~~the non-PAYE proportion of any mobile payment made by the employer to the employee as not being PAYE income of the employee—
a for the purposes of PAYE regulations, and
b must specify the proportion.
subsections (2A) – (9) unchanged by this sub-paragraph
Section 690A(3)1 change
690A Employer notification for internationally mobile employees
subsections (1) – (2A) unchanged
3 When a notice takes effect, the specified proportion of ~~uncertain~~mobile payments is treated as non-PAYE for PAYE purposes.
subsections (4) – (9) unchanged by this sub-paragraph
Section 690A(4)1 change
690A Employer notification for internationally mobile employees
subsections (1) – (3) unchanged
4 ~~But subsection (3) does not apply to a payment to the extent that section 690D(4) or 690E(4) also applies.~~But subsection (3) does not apply to a mobile payment—
a to the extent that section 690D(4) or 690E(4) (qualifying payments or treaty affected payments) also applies to the payment, or
b if the payment is made after the end of the mobile tax year, other than to the extent the payment is also an uncertain payment.
subsections (5) – (9) unchanged
Section 690A(6)1 change, 2 insertions
690A Employer notification for internationally mobile employees
subsections (1) – (5) unchanged
6 A notice given under this section ceases to have effect if—
a a direction under section 690B is given to the appropriate person in relation to the employee and the mobile tax year,
aa as a result of a change in the employee's circumstances, the proportion specified in the notice ceases to be a reasonable estimate of the non-PAYE proportion,
b a subsequent notice under this section in relation to the employee and the mobile tax year is given by the appropriate person and acknowledged by an officer of Revenue and Customs,
c ~~[old paragraph (c) text]~~section 690D (qualifying new resident or treaty non-resident employee) begins to apply in relation to the employee and the mobile tax year and the mobile tax year is not likely to be a split year as respects the employee.
subsections (7) – (9) unchanged
Section 690B3 changes, 2 insertions, 1 deletion
690B Direction by HMRC in relation to internationally mobile employees
1 This section applies when—
a a notice given during the mobile tax year under section 690A has effect~~, and~~
b [paragraph (b) omitted]
2 An officer of Revenue and Customs may give a direction—
a for determining ~~a proportion of any uncertain payment~~the non-PAYE proportion, or
b that any ~~such~~uncertain payment is to be treated entirely as PAYE income for the purposes of PAYE regulations.
subsection (3) unchanged
4 If a direction under subsection (2) has effect and an uncertain payment or mobile payment (as applicable) is made during a tax year—
a the direction applies to the payment, and
b the direction specifies the proportion of the uncertain payment or mobile payment (as applicable) not to be treated as PAYE income.
4A But a direction for determining the non-PAYE proportion does not apply in relation to a mobile payment—
a to the extent that section 690D(4) or 690E(4) (qualifying payments or treaty affected payments) also applies to the payment, or
b if the payment is made after the end of the mobile tax year, other than to the extent the payment is also an uncertain payment.
subsections (5) – (7) unchanged
Section 690B(6)2 insertions
690B Direction by HMRC in relation to internationally mobile employees
subsections (1) – (5) unchanged
6 A direction under subsection (2) ceases to have effect if a notice has subsequently been—
a given by the appropriate person under section 690A (employer notification for internationally mobile employee) on the basis that the employee is or is likely to be non-UK resident for the mobile tax year, and
b of a new resident or treaty non-resident, in the first place it occurs, acknowledged by an officer of Revenue and Customs, following a notice given under section 690A on the basis that the employee is or is likely to be non-UK resident for the mobile tax year or treaty non-resident at any time in the mobile tax year.
subsection (7) unchanged
Section 690C(2)1 change
690C Employees who were internationally mobile etc. before 2025-26
subsection (1) unchanged
2 An employee meets this criterion if they worked both inside and outside the UK in that tax year AND either:
a the employee was non-UK resident for that tax year or it appears likely to the employer that the employee was non-UK resident, or
b the tax year was a ~~spilt~~split year as respects the employee or it appears likely to the employer that the tax year was such a year.
subsections (3) – (5) unchanged
Section 690D1 insertion
690D Employer notification for qualifying new residents or treaty non-residents
subsections (1) – (9) unchanged by this sub-paragraph
Section 690D1 insertion
690D Employer notification for qualifying new residents or treaty non-residents
subsection (1) unchanged
1A This section also applies in relation to an employee if—
a the employee is or is likely to be a treaty non-resident at any time in a tax year ("the notifiable year"), and
b the employee works or is likely to work outside the UK during the notifiable year.
subsections (2) – (9) unchanged by this sub-paragraph
Section 690D1 insertion
690D Employer notification for qualifying new residents or treaty non-residents
subsections (1) – (2) unchanged
2A If this section applies in relation to the employee by virtue of subsection (1A), the appropriate person may give a notice to an officer of Revenue and Customs at any time during the notifiable year—
a that the employer is proposing to treat the treaty relieved proportion of any treaty affected payment made by the employer to the employee as not being PAYE income of the employee for the purposes of PAYE regulations, and
b specifying that proportion (but see subsections (5A) and (5B)).
subsections (3) – (9) unchanged by this sub-paragraph
Section 690D2 insertions
690D Employer notification for qualifying new residents or treaty non-residents
subsections (1) – (5) unchanged
5A Subsection (5B) applies for the purposes of determining the proportion to be specified in a notice or notices under this section in circumstances where, if the notice or notices were to be given and acknowledged by an officer of Revenue and Customs, a notice given under both subsection (2) and subsection (2A) would have effect in relation to the employee and the notifiable year.
5B The proportion specified in the notice or notices must produce the result that no amount is reflected in both—
a the foreign proportion specified in the notice under subsection (2) as an amount that is likely to be qualifying foreign employment income, and
b the treaty relieved proportion specified in the notice under subsection (2A) as an amount in respect of which UK tax is likely to be relieved under double taxation arrangements.
subsections (6) – (9) unchanged by this sub-paragraph
Section 690D(1)2 changes
690D Employer notification for qualifying new residents or treaty non-residents
1 This section applies in relation to an employee if—
a the employee is or is likely to be a ~~qualifying~~notifiable new resident for a tax year ("the notifiable year"), and
b the employee works or is likely to work outside the UK during the ~~qualifying~~notifiable year.
subsections (1A) – (9) unchanged by this sub-paragraph
Section 690D(2)2 changes, 1 insertion
690D Employer notification for qualifying new residents or treaty non-residents
subsections (1) and (1A) unchanged
2 ~~The~~If this section applies in relation to the employee by virtue of subsection (1), the appropriate person may give a notice to an officer of Revenue and Customs at any time during the ~~qualifying~~notifiable year—
a that the employer is proposing to treat the foreign proportion of any qualifying payment made by the employer to the employee as not being PAYE income of the employee for the purposes of PAYE regulations, and
b specifying that proportion (but see subsections (5A) and (5B)).
subsections (2A) – (9) unchanged by this sub-paragraph
Section 690D(3)2 insertions
690D Employer notification for qualifying new residents or treaty non-residents
subsections (1) – (2A) unchanged
3 For the purposes of this section and section 690E—
a a "qualifying payment" means a payment of, or on account of, an amount of employment income of the employee that is likely to be qualifying employment income;
b the "foreign proportion" of a qualifying payment is the best estimate that can reasonably be made of the overall proportion of the amount of all qualifying payments made by the employer to the employee that is likely to be qualifying foreign employment income;
c a "treaty affected payment" means a payment of, or on account of, an amount of employment income of the employee a proportion in respect of which UK tax is likely to be relieved under double taxation arrangements as a result of the employee being treaty non-resident in the notifiable year;
d the "treaty relieved proportion" is the best estimate that can reasonably be made of the overall proportion of the amount of all treaty affected payments made by the employer to the employee in respect of which UK tax is likely to be relieved under double taxation arrangements.
subsections (4) – (9) unchanged by this sub-paragraph
Section 690D(3)1 change, 1 insertion
690D Employer notification for qualifying new residents or treaty non-residents
subsections (1) – (2A) unchanged
3 For the purposes of this section and section 690E—
a a "qualifying payment" means a payment of, or on account of, an amount of employment income of the employee that is likely to be qualifying employment income;
b the "foreign proportion" of a qualifying payment is—
i the best estimate that can reasonably be made of the overall proportion of the amount of all qualifying payments made by the employer to the employee that is likely to be qualifying foreign employment income ~~the proportion of any qualifying payment made by the employer to the employee that is likely to be qualifying foreign employment income~~,
ii if the best estimate mentioned in sub-paragraph (i) is greater than 30%, 30%.
subsections (4) – (9) unchanged by this sub-paragraph
Section 690D(4)1 insertion
690D Employer notification for qualifying new residents or treaty non-residents
subsections (1) – (3) unchanged
4 If a notice given under this section has effect, the proportion of any qualifying payment or treaty affected payment (as applicable) made by the employer to the employee in any tax year which is to be treated for the purposes of PAYE regulations as not being a payment of PAYE income is the proportion specified in the notice.
subsections (5) – (9) unchanged by this sub-paragraph
Section 690D(5)2 changes
690D Employer notification for qualifying new residents or treaty non-residents
subsections (1) – (4) unchanged
5 A notice given under this section—
a does not have effect if a direction has previously been given to the appropriate person under section 690E (direction by HMRC in relation to qualifying new residents or treaty non-residents) in relation to the employee and the ~~qualifying~~notifiable year;
b otherwise, has effect when it is acknowledged by an officer of Revenue and Customs.
subsections (5A) – (9) unchanged by this sub-paragraph
Section 690D(6)3 changes, 1 insertion
690D Employer notification for qualifying new residents or treaty non-residents
subsections (1) – (5B) unchanged
6 A notice given under this section ceases to have effect if—
a a direction under section 690E is given to the appropriate person in relation to the employee and the ~~qualifying~~notifiable year,
aa as a result of a change in the employee's circumstances, the proportion specified in the notice ceases to be a reasonable estimate of the overall proportion of the amount (as applicable) of all qualifying payments that is likely to be qualifying foreign employment income, or all treaty affected payments in respect of which UK tax is likely to be relieved under double taxation arrangements,
b a subsequent notice—
i is given by the appropriate person in relation to the employee and the notifiable year under the same subsection, and
ii is acknowledged by an officer of Revenue and Customs,
c the appropriate person notifies (in writing or otherwise) an officer of Revenue and Customs that the notice is to cease to have effect, or
d a subsequent notice—
i is given by the appropriate person under section 690A (employer notification for internationally mobile employee) on the basis that the employee is or is likely to be non-UK resident in the ~~qualifying~~notifiable year, and
ii is acknowledged by an officer of Revenue and Customs.
subsections (7) – (9) unchanged
Section 690D(9)2 insertions, 1 deletion
690D Employer notification for qualifying new residents or treaty non-residents
subsections (1) – (8) unchanged
9 For the purposes of this section and section 690E—
a where an amount of employment income is treated as PAYE income paid by the employer for the purposes of PAYE regulations by virtue of section 687A or 695A (employment income under Part 7A) or section 696 (readily convertible assets), the employer is to be treated as making payment of that amount of employment income~~, and~~
b "qualifying new resident", "qualifying employment income" and "qualifying foreign employment income" have the same meaning as in Chapter 5C of Part 2 (relief for new residents on foreign employment income).
c an individual is "treaty non-resident" at any time if, at that time, the individual falls to be regarded as resident in a territory outside the UK for the purposes of double relief arrangements having effect at the time, and
d "double taxation arrangements" means arrangements that have effect under section 2(1) of TIOPA 2010.
Section 690E1 insertion
690E Direction by HMRC in relation to qualifying new residents or treaty non-residents
subsections (1) – (7) unchanged by this sub-paragraph
Section 690E3 changes
690E Direction by HMRC in relation to qualifying new residents or treaty non-residents
1 This section applies where—
a a notice given during the ~~qualifying~~notifiable year under section 690D has effect.
subsection (2) unchanged
3 A direction under subsection (2)—
a must specify the employee and the ~~qualifying~~notifiable year,
b must be given by notice to the appropriate person, and
c may be varied by notice to the appropriate person from a day specified in the notice (which may not be earlier than 30 days from the date on which the notice is given).
subsections (4) – (5) unchanged
6 A direction under subsection (2) ceases to have effect if a notice has subsequently been—
a given by the appropriate person under section 690A (employer notification for internationally mobile employee) on the basis that the employee is or is likely to be non-UK resident for the ~~qualifying~~notifiable year, and
b acknowledged by an officer of Revenue and Customs.
subsection (7) unchanged
Section 690E2 insertions
690E Direction by HMRC in relation to qualifying new residents or treaty non-residents
subsection (1) unchanged
2 An officer of Revenue and Customs may give a direction—
a for determining a proportion of any qualifying payment or treaty affected payment (as applicable) made by the employer to the employee which is to be treated for the purposes of PAYE regulations as not being a payment of PAYE income, or
b that any such payment is to be treated entirely as PAYE income for the purposes of PAYE regulations.
subsection (3) unchanged
4 If—
a a direction under subsection (2) has effect, and
b any qualifying payment or treaty affected payment (as applicable) is made by the employer to the employee in any tax year,
remainder of subsection (4) and subsections (5) – (7) unchanged
Section 690E(1)1 deletion
690E Direction by HMRC in relation to qualifying new residents or treaty non-residents
1 This section applies where—
a a notice given during the notifiable year under section 690D has effect~~, and~~
b [paragraph (b) and the "and" before it omitted]
subsections (2) – (7) unchanged
Section 713(6)1 change
713 Donations to charity: payroll deduction scheme
subsections (1)–(5) unchanged
6 This section is subject to ~~section 809ZM~~sections 809ZM and 809ZMB of ITA 2007 (removal of income tax relief in respect of tainted charity donations etc).
Section 716B4 changes
716B Employment intermediaries to keep, preserve and provide information etc
1 PAYE regulations may require employment intermediaries within the meaning of ~~Part 2~~Chapter 7 of Part 2 (agency workers) or 11 (umbrella companies) of Part 2 to keep and preserve records, and to provide information to an officer of Revenue and Customs.
2 PAYE regulations may require a person (other than an individual mentioned in paragraph (a) or (b)) who makes or participates in qualifying arrangements to keep and preserve records, and to provide information to an officer of Revenue and Customs.
Section 717(4)1 insertion
717 Orders and regulations made by Treasury or Commissioners
subsections (1) – (3) unchanged
4 Subsection (3) does not apply to any statutory instrument made under … section 681F(3) or 681J(3) (variation of income limit etc for high income child benefit or winter fuel payment charge: orders increasing liability to tax) applies.
subsections (5) onwards unchanged
Section 717(4)1 insertion
717 Orders and regulations made by Treasury or Commissioners
subsections (1) – (3) unchanged
4 Subsection (3) does not apply to any statutory instrument … (variation of income limit etc for high income child benefit or winter fuel payment charge: orders increasing liability to tax) applies.
subsections (5) onwards unchanged
Schedule 12 insertions
Schedule 1, Part 2 — Index of expressions defined in this Act
existing entries unchanged; new entries inserted at appropriate places:
foreign employment election — section 989 of ITA 2007 (and see section 41M of this Act)
qualifying new resident — section 989 of ITA 2007 (and see section 845B of ITTOIA 2005)
Schedule 5 ¶ 122 insertions
Schedule 5 — Enterprise management incentives
paragraphs 8 – 11 unchanged
12 The gross assets requirement
1 (amended) The value of the gross assets of the relevant company must not exceed—
(a) £120 million, or
(b) where the company is a specified Northern Ireland company, [existing limit].
2 (amended) The value of the group assets must not exceed—
(a) £120 million, or
(b) where the employer company is a specified Northern Ireland company, [existing limit].
remaining sub-paragraphs unchanged
Schedule 5 ¶ 12A2 insertions
Schedule 5 — Enterprise management incentives
paragraph 12 unchanged
12A The number of employees requirement
1 The relevant company must have fewer employees than—
(a) 500, or
(b) where the company is a specified Northern Ireland company, [existing limit].
2 A member of a group must have fewer than 500 or, where the employer company is a specified Northern Ireland company, employees than the applicable limit.
Schedule 5 ¶ 363 changes, 1 insertion
Schedule 5 — Enterprise management incentives
paragraphs 13 – 35 unchanged
36 Option to be capable of exercise within ~~10 years~~the specified period
1 A qualifying option must be capable of being exercised within ~~the period of 10 years~~the specified period beginning with the date on which the option is granted.
2 ~~The period mentioned in sub-paragraph (1)~~The specified period is to be calculated ignoring any restriction imposed on the exercise of the option.
3 In this paragraph, the “specified period” means— (a) 15 years, or (b) where the employer company is a specified Northern Ireland company, 10 years.
Schedule 5 ¶ 57E1 insertion
Schedule 5 — Enterprise management incentives
paragraphs 37 – 57E unchanged
57F Meaning of “specified Northern Ireland company” In the EMI code, a “specified Northern Ireland company” means a company that— (a) has its registered office in Northern Ireland, and (b) carries on a trade involving— (i) a trade in goods, or (ii) the generation, transmission, distribution, supply, wholesale trade or cross-border exchange of electricity.
Schedule 5 ¶ 72 changes, 2 insertions
Schedule 5 — Enterprise management incentives
paragraphs 1 – 6 unchanged
7 Maximum value of options in respect of relevant company’s shares
1 The total value of the relevant company’s shares over which qualifying options held by an individual subsist at any one time must not exceed—
(a) £6 million, or
(b) where the employer company is a specified Northern Ireland company,
2 Qualifying options held by an individual that have not been exercised count towards the limit in sub-paragraph (1) where the option if the applicable limit were exceeded the options would not count as qualifying options.
sub-paragraphs (3) – (4) unchanged (sub-paragraph (4) also amended: “applies” + “(but see sub-paragraph (5A))”)
5A If— (a) the grant of two or more share options at the same time causes only the limit in paragraph 7(1)(b) to be exceeded, and (b) the employer company in respect of some of the share options is not a specified Northern Ireland company, the share options in respect of which the employer company is a specified Northern Ireland company are, for the purposes of this paragraph, to be treated as having been granted before the other share options.

Finance Act 2022

9 amendments · open Act

Section 544 changes, 1 insertion
54 Charge to the levy
1 The levy is charged for a financial year if— (a) a person carries on a regulated business …, and (b) the person's UK revenue for the financial year ~~is medium, large or very large~~is in any of the bands set out in section 55.
2 The amount charged for a financial year is— (a) in the case of a person whose UK revenue is ~~medium~~in band A, ~~£10,000~~£10,200; (b) in the case of a person whose UK revenue is ~~large~~in band B, £36,000; (ba) in the case of a person whose UK revenue for the financial year is in band C, £500,000; (c) in the case of a person whose UK revenue is ~~very large~~in band D, ~~£500,000~~£1million.
subsections (3) – (4) unchanged
Section 553 changes, 1 insertion
55 UK revenue: amount
1 A person's UK revenue— (a) is ~~medium~~in band A for a financial year if … more than £10.2 million but not more than £36 million; (b) is ~~large~~in band B for a financial year if … more than £36 million but not more than ~~£1billion~~£500 million; (ba) is in band C for a financial year if … more than £500 million but not more than £1 billion; (c) is ~~very large~~in band D for a financial year if … more than £1 billion.
subsections (2) – (3) unchanged
Section 86(3)2 deletions
86 Publication by HMRC of information about tax avoidance schemes
subsections (1) – (2) unchanged
3 No information may be published under this section that identifies a person—
a who is not within subsection (2)~~, or~~
b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
subsections (4) – (13) unchanged
Section 86(5)1 insertion
86 Publication by HMRC of information about tax avoidance schemes
subsections (1) – (4) unchanged
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—
i make representations about whether or not the information should be published, and
ii where section 209(2) of FA 2026 applies, provide a declaration made under that subsection substantiating those representations.
subsections (6) – (13) unchanged
Section 86(6)1 change
86 Publication by HMRC of information about tax avoidance schemes
subsections (1) – (5) unchanged
6 Before arranging for the publication of information under this section identifying a person, an authorised officer must have regard to any representations and any declaration received in accordance with subsection (5).
subsections (7) – (13) unchanged
Section 90(3)1 deletion
90 Sections 87, 88 and 89: interpretation etc
subsections (1) – (2) unchanged
3 A relevant penalty is a penalty that is to be determined by the First-tier Tribunal under—
a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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;
paragraph (d) omitted by section-218-4-a-ii
subsections (4) – (5) unchanged
Section 90(3)1 deletion
90 Sections 87, 88 and 89: interpretation etc
subsections (1) – (2) unchanged
3 A relevant penalty is a penalty that is to be determined by the First-tier Tribunal under—
paragraph (a) omitted by section-218-4-a-i
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;
d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
subsections (4) – (5) unchanged
Schedule 13 ¶ 1 4 a1 change
Schedule 13 — paragraph 1 — Liability to penalty
sub-paragraphs (1) – (3) unchanged
4 Penalties are within this paragraph if they are incurred under any of the following—
a ~~section 98C of the Taxes Management Act 1970 (penalties for failure to notify under Part 7 of FA 2004);~~section 315 or 315A of FA 2004 (disclosure of tax avoidance schemes);
sub-paragraphs (b) – (d) unchanged
sub-paragraphs (5) – (6) unchanged
Schedule 2 ¶ 461 change
Schedule 2 — Qualifying asset holding companies
paragraphs 1–45 unchanged; paragraph 46 amended:
46
sub-paragraphs (1)–(5) unchanged
6A …for ~~item 22~~item 23…
remaining sub-paragraphs unchanged

Finance Act 2025

12 amendments · open Act

Schedule 10 ¶ 102 changes, 1 insertion
Schedule 10 — Temporary repatriation facility
paragraph 10 amended:
10
1 This paragraph applies to a capital payment where the capital payment is—
a an amount of capital that is designated on the basis that it is qualifying overseas capital as a result of a remittance provision, or
b an amount of income treated as qualifying overseas capital under paragraph 6 that—
i. falls within sub-paragraph (1)(b) of that paragraph, and
ii. is designated on the basis that it is qualifying overseas capital as a result of a remittance provision.
2 …after "paragraph 6", and that falls within sub-paragraph (1)(a) or (c) of that paragraph,…
Schedule 10 ¶ 121 insertion
Schedule 10 — Temporary repatriation facility
paragraph 12 amended:
12
1 This paragraph applies to an amount of capital that is designated on the basis that it is qualifying overseas capital as a result of a remittance provision (other than paragraph 6(1)(b))…
Schedule 10 ¶ 131 insertion
Schedule 10 — Temporary repatriation facility
paragraphs 1–13 unchanged; new paragraph 13A inserted after paragraph 13:
13A Amounts derived from designated qualifying overseas capital
1. This paragraph applies to an amount ("amount A") if—
a. either—
i. the remittance of the amount to the United Kingdom would have the effect mentioned in paragraph 2(3)(a) or (b) by reference to income or gains, or
ii. the remittance of the amount would result in income being treated as arising to a settlement in accordance with section 648(3)…, and
b. the remittance of an amount ("amount B") of designated qualifying overseas capital to the United Kingdom would have one of the effects mentioned in paragraph (a)(i) or (ii) by reference to that same income or those same gains…
2. Where amount A falls within sub-paragraph (1)(a)(i)…
3. Where amount A falls within sub-paragraph (1)(a)(ii)…
Schedule 10 ¶ 131 insertion
Schedule 10 — Temporary repatriation facility
paragraphs 1–13A unchanged; new paragraph 13B inserted:
13B Effect of this Schedule on section 65(5) IHTA 1984 and section 260(2) of TCGA 1992
1. The effects of Parts 1 and 2 of this Schedule are to be ignored for the purposes of section 65(5)(b) of IHTA 1984 (and accordingly will not prevent any amount being regarded as income of a person for the purposes of income tax for the purposes of that section).
2. Where trustees of a settlement make a capital payment to an individual resulting in qualifying overseas capital that is designated, so much of the deemed disposal under section 71 of TCGA 1992 as reflects the designated qualifying overseas capital is treated as a chargeable transfer within the meaning of IHTA 1984 for the purposes only of section 260(2)(a) of TCGA 1992.
Schedule 10 ¶ 71 insertion
Schedule 10 — Temporary repatriation facility
paragraphs 1–6 unchanged; paragraph 7 amended:
7
1 …
1A For the purposes of applying those paragraphs for the purposes of sub-paragraph (1)(c)—
a. those paragraphs have effect as if…
b. those paragraphs are to be applied after they have been applied for the purposes of determining whether any amount of a capital payment is qualifying overseas capital.
remaining sub-paragraphs unchanged
Schedule 10 ¶ 7 21 insertion
Schedule 10 — Temporary repatriation facility
paragraph 7, sub-paragraphs (1) and (1A) unchanged:
7
2 …after "amount", in the first place it occurs, insert "of income"…
Schedule 10 ¶ 81 insertion
Schedule 10 — Temporary repatriation facility
paragraph 8, sub-paragraphs (1)–(2) unchanged:
8
2A For the purposes of designating an amount of qualifying overseas capital of an individual that—
a. is qualifying overseas capital as a result of paragraph 2(2) or (5), or
b. is treated as qualifying overseas capital as a result of paragraph 6(1)(b),
the value of that amount is the value of the amount when it first arose to the individual.
remaining sub-paragraphs unchanged
Schedule 10 ¶ 81 insertion
Schedule 10 — Temporary repatriation facility
paragraph 8, sub-paragraphs (1)–(4) unchanged:
8
4A But where—
a. an amount of relevant foreign tax has been paid, or will be paid, in respect of an amount of qualifying overseas capital ("the related qualifying overseas capital"), and
b. it has been, or will be, paid out of funds other than the related qualifying overseas capital,
sub-paragraph (3) does not apply to the related qualifying overseas capital to the extent that the tax has been, or will be, paid out of those funds.
remaining sub-paragraphs unchanged
Schedule 10 ¶ 83 insertions
Schedule 10 — Temporary repatriation facility
paragraph 8, sub-paragraphs (1)–(6) unchanged:
8
6A Sub-paragraph (6B) applies where—
a. an amount ("the TRF amount") is treated as designated qualifying overseas capital of an individual as a result of sub-paragraph (6), …
6B The amount of income tax or capital gains tax due and payable under section 59B of TMA 1970 in respect of the TRF amount is to be treated as reduced (but not below nil) by the amount of the TRF charge paid in respect of the TRF amount.
6C Where sub-paragraph (6B) applies, the individual may not amend the return in which the designation election relating to the TRF amount was included to alter or revoke that election…
Schedule 10 ¶ 82 changes, 4 insertions
Schedule 10 — Temporary repatriation facility
paragraph 8 amended further:
8
2 A designation is valid only if—
a …~~[no "and"]~~, and
aa for each amount designated, whether or not it is designated on the basis it is qualifying overseas capital as a result of a remittance provision, and
b …"designated" on that basis…
2B In this Part and in Part 2 "remittance provision" means paragraph 2(2) or (5) or paragraph 6(1)(b).
2C Where—
a. an amount is designated on the basis it is qualifying overseas capital as a result of a remittance provision, and
b. the amount would (ignoring this sub-paragraph) also be regarded as designated under paragraph 3 or 5 (matched capital payments),
it is not to be regarded as designated under that paragraph…
2D Accordingly two designations of the amount are required to secure the benefit of all of the reliefs that may be available under paragraphs 10(1), 10(7), 12(1) and 13…
5A Where the individual considers that an amount designated under sub-paragraph (5) could, if it were qualifying overseas capital, be designated on the basis that it is qualifying overseas capital as a result of a remittance provision, the individual may designate it on that basis.
Schedule 10 ¶ 91 insertion
Schedule 10 — Temporary repatriation facility
paragraph 9, sub-paragraphs (1)–(7) unchanged:
9
8 Paragraph 8(6) is not to be taken as preventing the amendment of a return so as to alter or revoke a designation of qualifying overseas capital made in that return, provided that amendment is made in accordance with section 9ZA of TMA 1970 (taxpayer permitted to amend return within 12 months of filing date).
Schedule 9 ¶ 21 insertion
Schedule 9 — Amendments of TCGA 1992 connected with end of remittance basis
paragraphs 1 unchanged; paragraph 2 amended:
2
sub-paragraphs (1)–(6) unchanged
7 …
b …where ""applies"", in the second place it occurs,…

Taxation (International and Other Provisions) Act 2010

26 amendments · open Act

part-4A1 insertion
Part 4A — Assessment of unassessed transfer pricing profits
New Part 4A inserted after Part 4 of TIOPA 2010. Contains Chapters 1–4 (sections 217A–217T).
Chapter 1: Unassessed transfer pricing profits (sections 217A–217B). Chapter 2: Conditions for assessment at the UTPP rate (sections 217C–217E). Chapter 3: Assessment process (sections 217F–217S). Chapter 4: Interpretation (section 217T).
Section 147(6)1 change, 1 insertion
147 Tax calculations to be based on arm's length, not actual, provision
subsections (1) – (5) unchanged
6 Subsections (3) and (5) have effect subject to— (a) section 165 (exemption for dormant companies), (b) section 166 (exemption for small and medium-sized enterprises), (bza) section 173A, (c) section 206A…(e) section 447(5) and (6) of CTA 2009 (this Part generally does not affect how exchange gains or losses from loan relationships are accounted for), and (f) section 694(8) and (9) of CTA 2009 (this Part generally does not affect how exchange gains or losses from derivative contracts are accounted for), and (g) section 938N of CTA 2010…
173A Exchange gains and losses arising as a result of qualifying loan relationships and derivative contracts
1 Neither subsection (3) nor (5) of section 147 applies in relation to exchange gains and losses to the extent they arise, or would arise if either subsection applied, in relation to a qualifying financial instrument of a company.
2 Accordingly, for the purposes of determining whether actual provision confers a potential advantage on a person, ignore the effect of so much of any exchange gain or loss as arises, or would have arisen, in relation to a qualifying financial instrument.
further subsections defining qualifying financial instrument follow
Section 1481 insertion
148 When the participation condition is met
section 148 unchanged
148A Participation condition treated as met: transfer pricing notice
1 Subsection (3) applies where—
a the basic pre-condition would be met, if the participation condition in section 148 were met,
b as a result of the application of sections 157 to 161, the participation condition is not met, and
c either (ignoring those sections) one of the affected persons was, at the time of the making or imposition of the actual provision, directly or indirectly participating in the management, control or capital of the other, or each of the affected persons was at that time directly or indirectly participating in the management, control or capital of a third person.
2 An officer of Revenue and Customs may give a notice (a “transfer pricing notice”) to a potentially advantaged person where subsection (1) is satisfied.
3 Where this subsection applies, section 147 applies in relation to the actual provision as if the participation condition were met.
Section 1511 insertion
151 "Arm's length provision"
1 In this Part "the arm's length provision" has the meaning given by section 147(1).
2 For the purposes of this Part, the cases in which provision made or imposed as between any two persons is to be taken to differ from the provision that would have been made as between independent enterprises include cases where the provision differs from the provision that would have been made as between independent enterprises in respect of any of the following matters…
3 For the purposes of determining the arm's length provision in relation to the actual provision involving—
a the transfer of intangible fixed assets for consideration other than money, or
b the grant of a licence or any other right in respect of intangible fixed assets for consideration other than money,
assume that the transfer or grant at arm's length would be for consideration of a sum of money.
4 For the purposes of subsection (3) "intangible fixed assets" has the meaning it has in Part 8 of CTA 2009.
Section 1521 deletion
152 Guarantees: basic rule
section 152 omitted in full
Section 1531 deletion
153 Guarantees: further provisions
section 153 omitted in full
Section 1542 insertions
153A Certain guarantees not capable of being arm's length
Where—
a the actual provision includes provision for the borrowing of an amount,
b the amount would not have been lent between independent enterprises but for a guarantee, and
c such a guarantee was provided by a person with whom the borrower has a participatory relationship,
provision for the guarantee (to the extent it relates to the borrowing of that amount) is never to be regarded as arm's length provision for the purposes of this Part.
153B Guarantees: election to treat as borrowing
1 This section applies where the actual provision includes provision for the borrowing of an amount.
2 A UK resident company (“the deemed guarantor”) with whom the borrower has a qualifying participation relationship may elect that subsection (3) shall apply in relation to the deemed guarantor for a chargeable period.
further subsections follow
Section 156(1)1 insertion
156 "Losses" and "profits"
1 In this Part "losses" includes amounts which are not losses but in respect of which relief may be given in accordance with the Tax Acts including (for example)—
a section 57 of ITTOIA 2005 (pre-trading expenses),
b section 88 of ITA 2007 (carry forward of certain interest),
paragraphs (c) onwards unchanged
2 In this Part "profits" includes income.
Section 1611 change
161 Indirect participation: ~~sections 148, 175 and 219(2): financing cases~~involvement in financing arrangements
1 At any time this subsection applies, a person (“P”), with a qualifying interest in a body corporate or firm (“A”) is to be regarded as indirectly participating in the management, control or capital of A for the purposes of applying any of—~~Subsection (2) applies for the purposes of sections 148(2)(a) and (3)(a) and 175(2)(a) and, in Part 5, section 219(2).~~
a section 148(2) or (3) (participation condition),
b section 175 (application of section 174 where guarantee disallowed), or
c section 219(2) (in Part 5),
in relation to provision comprising financing arrangements for A to which P and one or more other persons with a qualifying interest in A are party.
further subsections follow (new text inserted)
Section 162A1 insertion
162B Arrangements to avoid participation condition
1 Any arrangements that would result in the participation condition not being met are to be disregarded if the main purpose, or one of the main purposes, of the arrangements is to secure that the participation condition is not met.
2 In this section "arrangements" includes any agreement, understanding, scheme, transaction or series of transactions, whether or not legally enforceable.
Section 1631 insertion
162A Agreements for common management
1 Where a person (“A”) and another person (“B”) are the subject of common management arrangements, each of A and B is to be treated, for the purposes of this Chapter, as having control of the other.
2 Common management arrangements means arrangements that—
a result in the management of A and B by the same person or group of persons, and
b include a mechanism that it is reasonable to suppose is intended to secure that the economic interests of shareholders in A and B being aligned.
3 In this section "arrangements" includes any agreement, understanding, scheme, transaction or series of transactions, whether or not legally enforceable.
Section 1643 changes
164 Part to be interpreted in accordance with OECD principles
1 This Part is to be read in such manner as best secures consistency between—
a the effect given to sections 147(1)(a), (b) and (d) and (2) to (6), 148 and 151(2), and
b the effect which, in accordance with the transfer pricing guidelines, is to be given, in cases where double taxation arrangements incorporate the whole or any part of the OECD model, to so much of the arrangements as does so.the effect that would be given under double taxation arrangements that incorporate the OECD model in accordance with the transfer pricing guidelines.
2 Subsection (1) has effect subject to—
subsection (2) unchanged
3 In this section "the OECD model" means— (a) the rules which, at the passing of ICTA (which occurred on 9 February 1988), were contained in Article 9 of the Model Tax Convention on Income and on Capital published by the Organisation for Economic Co-operation and Development, or (b) any rules in the same or equivalent terms.In this section "the OECD model" means the rules contained in Article 9 of the Model Tax Convention on Income and on Capital approved by the OECD Council on 18 November 2025, as interpreted in accordance with, or supplemented by, the OECD's commentary on that Article, also approved on that date.
4 In this section "the transfer pricing guidelines" means— (a) the version of the Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations approved by the OECD on 22 July 2010 as revised…; or (b) such other document…In this section "the transfer pricing guidelines" means the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations 2022 published by the OECD.
Section 1651 insertion
164A UK to UK Exemption
1 Section 147(3) and (5) do not apply in calculating, for a chargeable period of a potentially advantaged person, the profits and losses of that person in relation to actual provision that is qualifying UK to UK provision in relation to that person for that period.
2 Actual provision is qualifying UK to UK provision in relation to a potentially advantaged person for a chargeable period of that person (“the relevant period”) if—
a the potentially advantaged person and the other affected person are both companies and are UK resident throughout the relevant period,
b the provision is relevant to the calculation of the profits and losses of both companies for the relevant period, and
further subsections defining qualifying UK to UK provision follow
Section 1741 change, 1 insertion
174 Claim by the affected person who is not potentially advantaged etc
1 Subsection (2) applies if—
subsection (1) unchanged
1A Subsection (2) also applies in any case where—
a one of the affected persons is a non-UK resident company with a permanent establishment in the United Kingdom,
b the taxable profits of that company are calculated, as a result of section 21 of CTA 2009, as if the arm's length provision (to some extent) had been made or imposed between the permanent establishment and the other affected person, and
c if the actual provision had been made or imposed between the permanent establishment and the other person, the other affected person would not have had a potential advantage in relation to UK taxation.
subsections (2) – (4) unchanged
Section 1815 changes
181 ~~Section 182 claims: cases involving a security~~Section 182 claims: cases involving borrowing
1 Section 182 applies to a company in relation to a chargeable period if—
a the company is an affected person that has issued a security,
b the actual provision includes ~~a security issued by one of those companies~~borrowing,
4 For the purposes of this section "borrowing" has the meaning it has in sections 153A and 153B (see section 154).
Section 1911 change
191 ~~Guarantor companies: liabilities under a security~~Guarantor companies: borrowing liabilities
section 191 otherwise unchanged
Section 1917 changes
191 When sections 192 to 194 apply
1 Sections 192 to 194 apply if—
a one of the affected persons (~~“the issuing company”~~“the borrower”) is a company that ~~has issued a security and has~~has borrowing liabilities ~~under that security~~,
b those liabilities are to any extent the subject of a guarantee provided by a company (“the guarantor company”),
c in calculating the profits and losses of the ~~issuing company~~borrower for tax purposes, the amounts to be deducted in respect of interest or other amounts payable ~~under the security~~in respect of the borrowing are required to be reduced (whether or not to nil) under section 147(3) or (5), and
d ~~that reduction is required because of section 153.~~the reduction is a result of provision for the guarantee not being regarded as arm's length in accordance with section 153A (certain guarantees not capable of being arm's length).
2 …
3 …
4 …
5 In this Chapter— "the ~~issuing company~~borrower" has the meaning given by subsection (1)(a), ~~"the security" means the security mentioned in subsection (1)(a), and~~ "the guarantor company" has the meaning given by subsection (1)(b).
Section 1926 changes
192 Attribution to ~~guarantor company of things done by issuing company~~guarantor company of things done by borrower
1 On the making of a claim, the guarantor company is, to the extent of the reduction mentioned in ~~section 191(1)(c)~~subsection (1)(c) of section 191 (so far as it meets the condition in subsection (1)(d) of that section), to be treated for all purposes of the Taxes Acts as if it (and not the ~~issuing company~~borrower)—
a had issued the security,
b ~~owed the liabilities under it~~was the person that owed the borrowing liabilities under the borrowing transaction, and
c had paid any interest or other amounts paid under itthe borrowing transaction by the ~~issuing company~~borrower.
3 Where the ~~issuing company's liabilities under the security~~borrower's liabilities under the borrowing transaction are the subject of two or more guarantees…
6 …
subsections (4) and (5) unchanged
Section 192A2 changes
192A Provision for cases within Part 6A
1 This section applies if…
a the amount of the excess that would arise under section 191(1)(a) if the ~~issuing company under the security~~borrower in respect of the borrowing transaction were within the charge to corporation tax…
d …the amount by which the profits and losses of the ~~issuing company~~borrower would have to be adjusted…
Section 1937 changes
193 Interaction between claims under sections 184 and 192(1)
1 This section applies if—
a a claim is made under section 192(1) by the ~~issuing company~~borrower…
b ~~a claim is made under section 174 (disadvantaged person) by the lending company,~~another person (“the lender”), and
…those claims relate to the same ~~security~~borrowing transaction.
2 …the ~~lending company~~lender is not entitled to…
3 The ~~lending company's~~lender's claim under section 174 has effect subject to…
4 …
a the amount of profits or gains of the ~~lending company~~lender to be treated as arising…
b the amount of the ~~lending company's~~lender's allowable loss…
Section 1943 changes
194 Claims under section 192(1)
1 A claim under section 192(1) may not be made unless—
paragraphs (a) and (b) unchanged
c the ~~issuing company~~borrower has not itself made a claim under section 174.
2 Where the ~~issuing company~~borrower has made a return on the basis that the arm's length provision applies…
3 …
a the ~~issuing company~~borrower has made such a return…
Section 2081 deletion
208 Determinations requiring Commissioners' sanction
sections 208 to 211 and italic heading before section 208 omitted in full
Section 407(1)(b)1 change, 1 insertion
407 Amounts not brought into account in determining a company's tax-EBITDA
1 An amount is an excluded amount for the purposes of conditions A and B in section 406 if it is any of the following—
paragraphs (a) unchanged
b an allowance or charge under CAA 2001 or capital expenditure for which a deduction is given under a relevant enactment;
paragraphs (c) – (h) unchanged
1A For the purposes of subsection (1)(b) “relevant enactment” means—
a section 86A of CTA 2009 (contributions to flood and coastal erosion risk management projects);
b section 142 of CTA 2009 (waste disposal site preparation expenditure);
c section 145 of CTA 2009 (waste disposal site restoration payments);
d section 147 of CTA 2009 (cemeteries and crematoria).
subsections (2) – (4) unchanged
Schedule 111 insertion
Schedule 11 — Index of defined expressions used in Parts 2 to 8
Part 2 (transfer pricing expressions) unchanged
Part 2A — Unassessed transfer pricing profits: index of defined expressions used in Part 4A
Parts 3–8 indices unchanged
Schedule 7A ¶ 11 change
Schedule 7A — Interest restriction returns
Schedule 7A introductory paragraphs preceding paragraph 1 unchanged
1 ~~A member of a worldwide group may appoint a company to be the group's reporting company for a period of account.~~
1 1 An interest restriction return for a period of account of a worldwide group is of no effect unless it is submitted to an officer of Revenue and Customs by the reporting company of the group for that period.
2 A member of a worldwide group may appoint a company to be the group's reporting company for a period of account.
3 The appointment is of no effect for the period of account unless—
a the company to be appointed as the group's reporting company for the period is an eligible company for that period, and
b the appointment is authorised by more than half of the eligible companies for that period.
4 For this purpose a company is “eligible” if and only if the company—
a was a UK group company at a time during the period of account, and
b was not dormant throughout that period.
paragraphs 2 onwards: see further amendments made by section 61
Schedule A11 insertion
Schedule A1 — Assessment of unassessed transfer pricing profits: partnerships and Lloyd's syndicates
New Schedule A1 inserted before Schedule 1 to TIOPA 2010. Contains 4 Parts.
Parts 1 to 3 apply to companies as corporate partners of partnerships. Part 4 applies to companies as corporate members of Lloyd's syndicates.

Finance Act 2015

1 amendment · open Act

part-31 deletion
Part 3 — Diverted profits tax
Part 3 of the Finance Act 2015 (sections 77–116: diverted profits tax) is repealed in its entirety.
Part 3 (sections 77–116) repealed.

Corporation Tax Act 2009

37 amendments · open Act

Section A1(2)1 insertion
A1 Overview of the Corporation Tax Acts
subsection (1) unchanged
2Enactments relating to corporation tax are also contained in other Acts: see in particular—
paragraphs (a) – (g) unchanged
gParts 4 and 5 of that Act (transfer pricing and advance pricing agreements),
gaPart 4A of that Act (assessment of unassessed transfer pricing profits),
paragraphs (h) – (l) unchanged
subsection (3) unchanged
Section 3(1)(b)1 change, 2 insertions
3 Exclusion of charge to income tax
1 The provisions of the Income Tax Acts relating to the charge to income tax do not apply to income of a company if—
a the company is UK resident, or
b the company is not UK resident and it is chargeable to corporation tax in respect of the income, or would be so chargeable but ~~for an exemption.~~is not as a result of—
i an exemption, or
ii the application of sections 1142 to 1144 of CTA 2010 (circumstances in which a company is not regarded as having a permanent establishment).
Section 18S1 change
18S Interpretation of Chapter
In this Chapter—
"the OECD model" means the Model Tax Convention on Income and on Capital ~~published by the Organisation for Economic Co-operation and Development in July 2010 ("the OECD")~~approved by the OECD Council on 18 November 2025 as it may be amended or replaced from time to time;
Section 18S1 change
18S Interpretation of Chapter
In this Chapter—
"the OECD model" means the Model Tax Convention on Income and on Capital approved by the OECD Council on 18 November 2025 ~~or the Model Tax Convention as from time to time modified or supplemented~~as it may be amended or replaced from time to time;
Section 19(2)1 change
19 Chargeable profits
subsections (1) – (2)(a) unchanged
b attributable to the permanent establishment in accordance with sections 20 to 3224.
subsections (2A) – (4) unchanged
Section 19(5)1 change
19 Chargeable profits
subsections (1) – (4) unchanged
5 That subsection provides (among other things) that the gains are chargeable to corporation tax only so far as they are attributable to the permanent establishment in accordance with sections 20 to 3224 of this Act.
Section 201 insertion
20 Profits attributable to permanent establishment: introduction
1A Sections 21 and 24—
a apply for the purpose of determining the amount of profits of a non-UK resident company that are attributable to a permanent establishment of the company in the United Kingdom, and
b contain provision about the separate enterprise principle.
1B So far as provisions in those sections are in substantially the same terms as Article 7(2) of the Model Tax Convention on Income and on Capital approved by the OECD Council on 18 November 2025 they are to be read and given effect, so far as possible, in a way that is consistent with the OECD commentaries on Article 7(2) and related transfer pricing guidance.
subsections (1C) – (1E) inserted (new definitions); subsection (3) omitted (see paragraph 18(2))
Section 21(1)1 change
21 The separate enterprise principle
1 The profits of the non-UK resident company that are attributable to the permanent establishment are those that the establishment ~~would have made~~might be expected to make if it were a separate and independent enterprise engaged in the same or similar activities under the same or similar conditions, taking into account the functions performed, assets used and risks assumed by the non-UK resident company through the permanent establishment and through the other parts of its business.
Section 21(1)1 change
21 The separate enterprise principle
1 The profits of the non-UK resident company that are attributable to the permanent establishment are those that the establishment might be expected to make if it were a ~~distinct and~~separate and independent enterprise engaged in the same or similar activities under the same or similar conditions, taking into account the functions performed, assets used and risks assumed by the non-UK resident company through the permanent establishment and through the other parts of its business.
Section 21(3)1 deletion
21 The separate enterprise principle
subsections (1) – (2) unchanged
3 For the purposes of subsection (1) it is to be assumed that the permanent establishment has the same credit rating as the non-UK resident company.
Section 222 deletions
22 Transactions treated as being at arm's length
entire section omitted
23 Provision of goods or services for permanent establishment
entire section omitted
Section 24(2)1 change
24 Application to insurance companies
subsection (1) unchanged
2 In accordance with the principle in that subsection, the permanent establishment is treated as holding—
a the same or a similar quantity of assets, and
b assets of the same or similar description,
as would have been held by a ~~distinct and~~separate and independent enterprise acting as mentioned in that subsection.
subsection (3) unchanged
Section 24(4)3 deletions
24 Application to insurance companies
subsections (1) – (3) unchanged
4 Subsection (5) applies for the purposes of subsection (2).
5 The assets held by a separate and independent enterprise acting as mentioned in subsection (1) would be assets—
paragraphs (a)–(b) omitted
6 In this section "the notional separate enterprise" means the enterprise referred to in subsection (1).
Section 258 deletions
25 Non-UK resident banks: introduction
entire section omitted
26 Transfer of financial assets
entire section omitted
27 Loans: attribution of financial assets and profits arising
entire section omitted
28 Borrowing: permanent establishment acting as agent or intermediary
entire section omitted
29 Allowable deductions
entire section omitted
30 Restriction on deductions: costs
entire section omitted
31 Restriction on deductions: payments in respect of intangible assets
entire section omitted
32 Restriction on deductions: interest or other financing costs
entire section omitted
Section 105(6)1 change
105 Gifts of trading stock to charities etc
subsections (1)–(5) unchanged
6 This section is subject to section 203 of CTA 2010 (certain disposals of investments to charity) and ~~section 939F~~sections 939F and 939FB of that Act (removal of corporation tax relief in respect of tainted charity donations).
Section 3201 insertion
320 Credits and debits treated as relating to capital expenditure
subsections (1) – (3) unchanged
3A Subsection (2) does not apply in relation to an amount so far as— (a) the amount is treated in the company's accounts as an amount recognised in determining the carrying value of an interest in an entity, (b) the fair value of the loan relationship when it was entered into differs from the transaction price, and (c) the amount represents that difference.
subsection (5) unchanged
Section 357LD(2)1 change
357LD The independent investment manager conditions
2 In relation to the investment transaction, the circumstances in which the investment manager is regarded for the purposes of section 357LC(1) as an agent of independent status acting in the ordinary course of the investment manager's business include where the circumstances in which each of the following conditions (the independent investment manager conditions) are met.
Section 357LD(2)1 change
357LD The independent investment manager conditions
2 In relation to the investment transaction, the circumstances in which the investment manager is regarded as an agent of independent status include where each of the following conditions are met ~~if (and only if)~~include where each of the following conditions (the independent investment manager conditions) are met.
Section 357LD(6)1 deletion
357LD The independent investment manager conditions
subsections (1) – (5) unchanged
6 Condition D is that the non-UK resident company does not fail to satisfy the 20% rule in section 357LE.
subsection (7) unchanged
Section 357LE3 deletions
357LE Investment managers: the 20% rule
entire section omitted
357LF Interpretation of section 357LE
entire section omitted
357LG Application of 20% rule to collective investment schemes
entire section omitted
Section 357LH1 change
357LH Meaning of investment manager and investment transaction
"Investment manager" has the meaning given by section ~~1150(1)~~1150 of CTA 2010.
Section 357LJ1 deletion
357LJ Disregard of certain chargeable profits
entire section omitted
Section 4451 change, 1 deletion
445 Disapplication of section 444 where Part 4 of TIOPA 2010 applies
1 Section 444 does not apply in relation to credits or debits of a company if— (a) as a result of Part 4 of TIOPA 2010 (transfer pricing), the profits and losses of the company are to be calculated for tax purposes as if the arm's length provision to which those credits or debits would relate had been made or imposed instead of the actual provision to which they relate, or (b) those profits would be so calculated if the actual provision— (i) conferred a potential advantage in relation to United Kingdom taxation (within the meaning of that Part) on the company, and (ii) differed from the arm's length provision.Section 444 does not apply in relation to credits or debits of a company if— (a) as a result of Part 4 of TIOPA 2010 (transfer pricing), the profits and losses of the company are to be calculated for tax purposes as if the arm's length provision to which those credits or debits would relate had been made or imposed instead of the actual provision to which they relate, or (b) those profits would be so calculated if the actual provision— (i) conferred a potential advantage in relation to United Kingdom taxation (within the meaning of that Part) on the company, and (ii) differed from the arm's length provision.
2 Subsection (1) applies despite section 464, but is subject to— (a) section 340(7)…
3 …
3A …
Section 445(2)1 deletion
445 Disapplication of section 444 where Part 4 of TIOPA 2010 applies
subsection (1) unchanged
2 Subsection (1) applies despite section 464, but is subject to— (a) section 340(7)… ~~and (b) section 371SD of TIOPA 2010 (CFC exempt period rules: loan relationships).~~
Section 4461 change
446 Bringing into account adjustments made under Part 4 of TIOPA 2010: loan relationships
subsections (1) – (7) unchanged
8 ~~Where a company makes a claim under this subsection…~~Where a company makes a claim under this subsection, any qualifying credit of the company which (ignoring this subsection) would be brought into account for the purposes of this Part is not to be brought into account.
9 But subsection (8) does not apply— (a) if the corresponding profits of the company are less than the corresponding arm's length profits, or (b) to the extent that its application would result in the corresponding profits being less than the corresponding arm's length profits.
10 A credit of a company is a “qualifying credit” to the extent it corresponds to an amount which, as a result of Part 4 of TIOPA 2010, has not previously been brought into account as a debit.
further new subsections (11)–(20) inserted
Section 4471 deletion
447 Treatment of exchange gains and losses subject to Part 4 of TIOPA 2010
section 447 repealed in full (and similarly sections 449–451 and 694)
Section 4522 changes
452 Exchange gains and losses where loan not on arm's length terms
1 This section applies if a company would be treated as having a debtor relationship, or would be treated as borrowing more under an existing debtor relationship, in relation to an accounting period if— ~~(a) an election were made under section 152(3) of TIOPA 2010…~~(a) a company would be treated as having a debtor relationship, or would be treated as borrowing more under an existing debtor relationship, in relation to an accounting period if— (i) an election were made under section 153B(2) of TIOPA 2010 in relation to that period, (ii) a claim were made under section 192(1) of that Act in relation to that period, or (iii) both an election and a claim were so made.
further subsections amended correspondingly
Section 6041 insertion
604 Credits and debits treated as relating to capital expenditure: derivative contracts
subsections (1) – (3) unchanged
3A Subsection (2) does not apply in relation to an amount so far as— (a) the amount is treated in the company's accounts as an amount recognised in determining the carrying value of an interest in an entity, (b) the fair value of the derivative contract when it was entered into differs from the transaction price, and (c) the amount represents that difference.
remaining subsections unchanged
Section 7391 insertion
739 Meaning of "proceeds of realisation"
1 In this Part "proceeds of realisation" of an asset means the amount recognised for accounting purposes as the proceeds of realisation, less the amount so recognised as incidental costs of realisation.
1A But if the realisation involved the receipt of something other than money, subsection (1) has effect as if the reference to the amount recognised for accounting purposes as the proceeds of realisation were a reference to the amount that would have been so recognised had the receipt been a receipt of the fair value of the thing received.
1B Subsection (1A) does not apply to a realisation by a company if— (a) either— (i) as a result of Part 4 of TIOPA 2010 (transfer pricing), the profits and losses of the company are to be calculated for tax purposes as if the arm's length provision in relation to the realisation had been made or imposed instead of the actual provision in relation to it, or (ii) those profits would be so calculated if the actual provision conferred a potential advantage in relation to United Kingdom taxation on the company and differed from the arm's length provision, and (b) the realisation is a cross-border realisation. See also section 151(3) of that Part for provision about applying the arm's length provision in relation to intangible fixed assets.
Section 8451 change, 1 insertion
845 Transfer between company and related party treated as at market value
4 That rule is subject to— ~~(a) section 846 (modification where there is no corresponding chargeable gain or allowable loss for the related party),~~ (b) section 847 (transfers involving other taxes),…
4ZA But the basic rule does not apply in relation to a transfer if— (a) the transfer is a cross-border transfer, and (b) the transfer is subject to transfer pricing.
4ZB See also section 846 for a different rule where— (a) the basic rule doesn't apply as a result of subsection (4ZA), and (b) the profits and losses of the company or the related person are not required, under Part 4 of TIOPA 2010, to be calculated as if the arm's length provision had been made instead of the provision comprising the transfer or of which the transfer forms part.
further new subsections (4ZC) onwards follow
Section 849AB2 insertions
849AB Grant of licence or other right treated as at market value
1 This section applies if— (a) a company which holds an intangible asset grants a licence or other right in respect of the asset to a related party, or (b) a company is granted a licence or other right in respect of an intangible asset by a related party that holds the asset.
1A But this section does not apply in relation to a person (either the company or the related party) if— (a) either— (i) the profits and losses of the person are to be calculated for tax purposes as if the arm's length provision in relation to the grant had been made or imposed instead of the actual provision in relation to the grant as a result of Part 4 of TIOPA 2010 (transfer pricing), or (ii) they would be so calculated if the actual provision conferred a potential advantage in relation to United Kingdom taxation (within the meaning of that Part) on the person, and (b) the grant is a cross-border grant.
1B A grant is a cross-border grant if, at the time of the grant, the related party is— (a) a UK resident company, but only if it has a qualifying permanent establishment in a territory outside the United Kingdom, (b) a non-UK resident company…
further subsections unchanged
Section 8574 changes
857 Deemed market value or arm's length acquisition: adjustment where nil or negligible accounting value
1 This section applies if— (a) a company is treated for the purposes of this Part as acquiring an asset at market value or by reference to the arm's length provision, but (b) the accounting value of the asset transferred is nil, or a negligible value, in the hands of the transferee.
2 In such a case any reference in this Part to— (a) the cost of the asset recognised for accounting purposes, (b) the accounting value of the asset, or (c) any loss recognised for accounting purposes in respect of capitalised expenditure on the asset, is a reference to the cost, value or loss that would have been recognised if the asset had been acquired at market value or (as the case may be) by reference to the arm's length provision.
Section 1042N(4)1 insertion
1042N Amounts surrendered to other group companies
subsections (1)–(4) unchanged
5 Subsection (6) applies (in addition to subsection (3)) if—
a the qualifying company and the other group member have an agreement between them in relation to the surrendering of amounts of expenditure credit, and
b as a result of the agreement the other group member makes a payment to the qualifying company that does not exceed the total amount of expenditure credit surrendered to the other group member.
6 The payment is not to be—
a taken into account in determining, for corporation tax purposes, the profits of the qualifying company or the other group member, or
b regarded for corporation tax purposes as a distribution.
Section 1138A(1)(b)1 insertion
1138A R&D undertaken outside the United Kingdom
1 This section applies to research and development undertaken outside the United Kingdom if—
a the research and development is undertaken in the circumstances described in subsection (2), or
b for the purposes of relief under Chapter 2 the research and development is undertaken, or contracted out, by a company whose registered office is in Northern Ireland.
subsections (2) onwards unchanged
Section 1179CE(4)1 insertion
1179CE Amounts surrendered to other group companies
subsections (1)–(4) unchanged
5 Subsection (6) applies (in addition to subsection (3)) if—
a the qualifying company and the other group member have an agreement between them in relation to the surrendering of amounts of expenditure credit, and
b as a result of the agreement the other group member makes a payment to the qualifying company that does not exceed the total amount of expenditure credit surrendered to the other group member.
6 The payment is not to be—
a taken into account in determining, for corporation tax purposes, the profits of the qualifying company or the other group member, or
b regarded for corporation tax purposes as a distribution.
Section 1179EC4 changes, 1 insertion
1179EC Special credit for visual effects
subsection (1) unchanged
2 The production company is entitled to claim an additional amount of audiovisual expenditure credit for an accounting period (“the claim period”) that is the completion period (see section 1179DY) or a subsequent accounting period if—
a the company has incurred relevant visual effects expenditure on the film or programme in that period or an earlier accounting period,
aa a claim for Chapter 3 credit has been made for the last accounting period in the AVEC period (which may be the claim period) in which the company incurred relevant global expenditure (see section 1179CA(2)) that is UK expenditure (see section 1179AB), and
b ~~where a claim has been made for Chapter 3 credit (whether for the claim period or earlier),~~ the relevant percentage for the purposes of all Chapter 3 credit claims in respect of the film or television programme~~such claims~~ was the percentage given by subsection (2) or (5) of section 1179DV.
3 The additional amount is equal to—
a 39% of the total amount of the relevant visual effects expenditure incurred on the film or programme in the claim period and in previous periods, less
b the sum of—
i the adjusted VFX portion of Chapter 3 credits claimed in respect of the film or television programme~~Chapter 3 credits claimed~~, and
ii any additional amounts of audiovisual expenditure credit previously claimed under this section.
subsection (4) amended (heading text substitutions) — unchanged
subsections (5)–(6) unchanged
6A Where a production company has claimed an additional amount of audiovisual expenditure credit for an accounting period and makes a claim for Chapter 3 credit for a subsequent accounting period—
a the additional amount is to be calculated for that subsequent accounting period, and
b if that additional amount is negative, the amount of Chapter 3 credit to which the company is entitled for that period is to be reduced by the additional amount.
6B Where Chapter 3 credit claimed by a company for an accounting period is reduced as a result of subsection (6A)(b), for the purposes of the application of subsection (3) and (4) in relation to the company for any subsequent accounting period the sum of the additional amounts of audiovisual expenditure credit previously claimed is to be treated as reduced by the amount of the reduction.
Section 1305A1 insertion
1305A [existing section heading]
section 1305A unchanged
1305B Avoidance schemes involving certain non-derecognition liabilities
1 This section applies if—
a assets (“the underlying assets”) are transferred to a relevant entity,
b for accounting purposes following the transfer—
i the underlying assets continue to be recognised to any extent by a member of the transferor group, and
ii a liability is also recognised by a member of the transferor group in connection with the underlying assets or otherwise in connection with the transfer,
c in calculating a company's profits for corporation tax purposes a deduction would (ignoring this section) be allowed for a loss, expense or debit in connection with the liability mentioned in paragraph (b)(ii), and
d the loss, expense or debit arises, to any extent, as a result of arrangements (whether or not they are or include the transfer mentioned in paragraph (a)) where the main purpose, or one of the main purposes, of any party to the arrangements in being a party to them is to secure a tax advantage for any person.
2 The deduction mentioned in subsection (1)(c) is not allowed so far as it is attributable on a just and reasonable apportionment to the purpose mentioned in subsection (1)(d).
subsections (3) onwards of inserted section 1305B omitted for brevity

Finance Act 2013

3 amendments · open Act

Section 80(4)1 insertion
80 Decommissioning relief agreements
subsections (1) – (4) unchanged
4A No payment is to be made to a company under a decommissioning relief agreement by reference to the energy (oil and gas) profits levy.
4B Every decommissioning relief agreement (whenever entered into) is to be read accordingly.
subsections (5) onwards unchanged
Section 106(6)1 deletion
106 Adjustment of amount chargeable
subsections (1) – (5) unchanged
6 ~~. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .~~
subsections (7) – (8) unchanged
Section 206(3)1 deletion
206 General anti-abuse rule
subsections (1) – (2) unchanged
3The general anti-abuse rule applies to the following taxes—
paragraphs (a) – (d) unchanged
dadiverted profits tax,
paragraphs (db) – (i) unchanged

Finance Act 2010

2 amendments · open Act

Section 191 deletion
19 Rate of bingo duty
1 In section 17(1)(b) of BGDA 1981 (bingo duty chargeable at 22 per cent of bingo promotion profits), for "22" substitute "20".
2 The amendment made by subsection (1) has effect in relation to accounting periods beginning on or after 29 March 2010.
Schedule 6 ¶ 72 changes
Schedule 6, paragraph 7 — Enactments to which definition of "charity" applies
The enactments to which this Part applies are the enactments relating to—
paragraphs (a) – (g) unchanged
hstamp duty reserve tax, and
iannual tax on enveloped dwellings. ~~and~~
jdiverted profits tax.

Finance Act 2011

4 amendments · open Act

Schedule 19 ¶ 26 21 change
Schedule 19 — The bank levy
Paragraph 26 — Assets of permanent establishment
2 The assets of the permanent establishment are those which it ~~would have~~might be expected to have were it a separate and independent enterprise engaged in the same or similar activities under the same or similar conditions, taking into account the functions performed, assets used and risks assumed by the relevant foreign bank through the permanent establishment and through the other parts of its business.
Schedule 19 ¶ 26 21 change
Schedule 19 — The bank levy
Paragraph 26 — Assets of permanent establishment
2 The assets of the permanent establishment are those which it might be expected to have were it a ~~distinct and independent enterprise~~separate and independent enterprise engaged in the same or similar activities under the same or similar conditions, taking into account the functions performed, assets used and risks assumed by the relevant foreign bank through the permanent establishment and through the other parts of its business.
Schedule 19 ¶ 26 31 change
Schedule 19 — The bank levy
Paragraph 26 — Assets of permanent establishment
sub-paragraph (2) unchanged
3 For this purpose, any relevant provisions of sections 21 and 24 of CTA 2009 are to be applied as they would be applied in determining profits attributable to the permanent establishment for corporation tax purposes (and for this purpose "relevant provisions" means provisions in sections 20 to 2824 of CTA 2009).
Schedule 23 ¶ 45 11 deletion
Schedule 23, paragraph 45 — Interpretation: "tax"
1In this Schedule "tax" means any or all of the following—
paragraphs (a) – (c) unchanged
cadiverted profits tax,
paragraphs (d) – (m) unchanged
sub-paragraphs (2) – (4) unchanged

Finance Act 2009

5 amendments · open Act

Section 201 deletion
20 Bingo duty
1 BGDA 1981 is amended as follows.
2 In section 17(1)(b) (bingo duty chargeable at 15 per cent of bingo promotion profits), for "15" substitute "22".
3 In paragraph 5(2)(c) of Schedule 3 (maximum prize for small-scale amusements exemption), for "£50" substitute "£70".
Section 115(2)1 deletion
115 Miscellaneous
1 BGDA 1981 is amended as follows.
2 In section 17 (bingo duty), after subsection (2) insert—2A Bingo duty is not charged on the playing of bingo which is not licensed bingo if remote gaming duty is charged on the provision of facilities for playing it.
subsections (3) – (4) unchanged
Schedule 56 ¶ 11 deletion
Schedule 56, paragraph 1 — Penalty for failure to make payments on time
1A penalty is payable by a person ("P") where P fails to pay an amount of tax specified in column 3 of the Table below on or before the date specified in column 4.
Table entries for income tax, corporation tax, PAYE, CIS, etc. unchanged
Diverted profits tax entry in Table (paragraph 1) omitted.
Schedule 56 ¶ 12 insertions
Schedule 56 — paragraph 1 (Table), item 18
Item 18 — Income tax or capital gains tax
Column 3 (due date): Amount payable under section 55 or 56(3)(b) of TMA 1970 — The date falling 30 days after the date determined in accordance with section 55(3), (4), (6) or (9) or section 56(3)(b) of TMA 1970 as the date by which the amount must be paid
Schedule 56 ¶ 3 11 deletion
Schedule 56, paragraph 3 — Amount of penalty: occasional amounts and amounts in respect of periods of 6 months or more
1This paragraph applies in the case of—
sub-paragraph (1)(a) unchanged
aaa payment of diverted profits tax.
sub-paragraphs (1)(b) – (d) unchanged
sub-paragraphs (2) – (4) unchanged

Finance Act 2008

11 amendments · open Act

Schedule 36 ¶ 61A 22 insertions

Schedule 36 — Information and inspection powers

paragraph 61A(1) unchanged

2 In this Schedule, in relation to an involved third party, “relevant documents” means the documents described in the following table.

	Involved third party	Relevant documents	Relevant tax
…	items 1 – 14 unchanged
15	A person involved (in any capacity) in the production, or importation to or exportation from the United Kingdom, of CBAM goods (within the meaning of section 2 of FA 2026) or in connected activities	Documents relating to matters in which the person is or has been involved	Carbon border adjustment mechanism
16	A person involved (in any capacity) in the supply, storage purchase, sale or transportation of CBAM goods (within the meaning of section 2 of FA 2026)	Documents relating to matters in which the person is or has been involved	Carbon border adjustment mechanism

Schedule 36 ¶ 63 11 deletion
Schedule 36, paragraph 63 — Information and inspection powers: meaning of "tax"
1In this Schedule, except where the context otherwise requires, "tax" means all or any of the following—
paragraphs (a) – (c) unchanged
cadiverted profits tax,
paragraphs (cb) – (m) unchanged
sub-paragraphs (2) – (4) unchanged
Schedule 36 ¶ 63 11 insertion
Schedule 36 — Information and inspection powers
paragraph 63 introductory text unchanged
1 In this Schedule, except where the context otherwise requires, “tax” means all or any of the following—
a income tax,
b capital gains tax,
c corporation tax,
paragraphs (ca) – (ce) unchanged
d VAT,
paragraphs (e) – (j) unchanged
k climate change levy,
ka carbon border adjustment mechanism,
paragraphs (l) – (m) and remainder unchanged
Schedule 41 ¶ 11 deletion
Schedule 41, paragraph 1 — Penalties: failure to notify
1A penalty is payable by a person (P) where P fails to comply with an obligation specified in the Table below (a "relevant obligation").
Table entries for income tax, corporation tax, digital services tax, etc. unchanged
Diverted profits tax entry in Table (paragraph 1) omitted.
Schedule 41 ¶ 11 deletion
Schedule 41 — Penalties: failure to notify and certain VAT and excise wrongdoing
1 A penalty is payable by a person (P) where P fails to comply with an obligation specified in the Table below (a "relevant obligation").
Table entries for income tax, capital gains tax, corporation tax, etc. unchanged
Tax to which obligation relates Obligation
~~Bingo duty~~ ~~Obligations under paragraph 10(1) and (1A) of Schedule 3 to BGDA 1981 (obligation to notify and register in respect of bingo-promotion).~~
Table entries for lottery duty, gaming duty, etc. unchanged

Tax to which obligation relates	Obligation
~~Bingo duty~~	~~Obligations under paragraph 10(1) and (1A) of Schedule 3 to BGDA 1981 (obligation to notify and register in respect of bingo-promotion).~~

Schedule 41 ¶ 11 insertion

Schedule 41 Penalties: failure to notify and certain VAT and excise wrongdoing

paragraph 1 table (preceding entries) unchanged

1 Table — penalties for failure to notify (extract, showing insertion after tobacco products duty entry):

Tobacco products duty	Obligation to manufacture tobacco products only on premises registered under regulations under section 7 of TPDA 1979.
Vaping products duty	Obligation not to produce vaping products unless approved or registered (in regulations under section 45 of TCTA 2018).
Vaping products duty	Obligation to produce vaping products only on approved or registered premises (in regulations under section 45 of TCTA 2018).
Vaping products duty	Obligation to be approved under section 122 of FA 2026 (approved stamp holders).

Schedule 41 ¶ 11 insertion
Schedule 41 — Penalties: failure to notify and certain VAT and excise wrongdoing
paragraph 1 — Table: entries up to and including climate change levy unchanged
Tax to which obligation relates Obligation
Carbon border adjustment mechanism Obligation of a person under paragraph 2 of Schedule 17 to FA 2026 to register with HMRC.
remaining entries unchanged
Schedule 41 ¶ 11 change
Schedule 41 — paragraph 1 (Table), alcohol duty entry
Alcohol duty — Obligations under ~~section 88~~section 82 of F(No. 2)A 2023 (approval requirement: producers).
Schedule 41 ¶ 16 11 change
Schedule 41 — Penalties: failure to notify and certain VAT and excise wrongdoing
paragraphs 1 – 15 unchanged
16
sub-paragraph heading: Assessment
1Where P becomes liable for a penalty under any of paragraphs 1 to 4 HMRC ~~shall~~may (in its application to CBAM)—
aassess the penalty,
bnotify P, and
cstate in the notice the period in respect of which the penalty is assessed.
Schedule 41 ¶ 71 insertion
Schedule 41 — Penalties: failure to notify and certain VAT and excise wrongdoing
paragraph 7, sub-paragraphs (1) – (9) unchanged
10In the case of a relevant obligation under paragraph 2 of Schedule 17 to FA 2026 (which relates to the carbon border adjustment mechanism), the potential lost revenue is the amount of the tax (if any) for which P is liable for the period—
abeginning with the end of the period specified in paragraph 2(4) of Schedule 17 to FA 2026, and
bending with the day on which P registers under paragraph 2 of Schedule 17 to FA 2026.
Schedule 41 ¶ 7 4A1 deletion
Schedule 41, paragraph 7 — Meaning of "potential lost revenue"
sub-paragraphs (1) – (4) unchanged
4ADiverted profits tax: potential lost revenue provision — omitted.
sub-paragraphs (4B) – (10) unchanged

Tax to which obligation relates	Obligation
Carbon border adjustment mechanism	Obligation of a person under paragraph 2 of Schedule 17 to FA 2026 to register with HMRC.

Finance Act 1989

2 amendments · open Act

Section 178(2)1 deletion
178 Setting of rates of interest
subsection (1) unchanged
2This section applies to—
paragraphs (aa) – (u) unchanged
vDiverted profits tax interest rate provision — omitted.
paragraphs (w) – (y) unchanged
subsections (3) – (4) unchanged
Section 178(2)3 changes
178 Setting of rates of interest
subsection (1) unchanged
2 This section applies to—
… [paragraphs (a) – (w) unchanged] …
x) paragraphs 33 and 5133A of Schedule 14 to the ~~Finance~~Finance (No.2) Act 2023.
y) paragraphs 33 and 5133A of Schedule 14 to the Finance (No.2) Act 2023, as applied in relation to domestic top-up tax by paragraph 4 of Schedule 18 to that Act.
subsections (3) – (7) unchanged

Provisional Collection of Taxes Act 1968

2 amendments · open Act

Section 1(1)1 deletion
1 Temporary statutory effect of House of Commons resolutions affecting income tax, purchase tax or customs or excise duties
1This section applies only to income tax, capital gains tax, corporation tax, the bank levy, the apprenticeship levy, digital services tax, multinational top-up tax, domestic top-up tax, plastic packaging tax, value added tax, climate change levy, carbon border adjustment mechanism, insurance premium tax, landfill tax, aggregates levy, soft drinks industry levy, petroleum revenue tax, carbon emissions tax, stamp duty reserve tax, stamp duty land tax, annual tax on enveloped dwellings, ~~diverted profits tax,~~ and duties of customs and excise.
subsections (1A) – (9) unchanged
Section 1(1)1 insertion
1 Temporary statutory effect of House of Commons resolutions
1 This section applies only to income tax, capital gains tax, corporation tax, the bank levy, the apprenticeship levy, digital services tax, multinational top-up tax, domestic top-up tax, plastic packaging tax, value added tax, climate change levy, carbon border adjustment mechanism, insurance premium tax, landfill tax, aggregates levy, soft drinks industry levy, petroleum revenue tax, carbon emissions tax, stamp duty reserve tax, stamp duty land tax, annual tax on enveloped dwellings, and duties of customs and excise.
subsections (2) – (9) unchanged

Finance (No. 2) Act 2023

51 amendments · open Act

Section 1281 insertion
128 Responsible members
subsections (1) – (3) unchanged
4 Such an intermediate parent member is responsible for—
a) every permanent establishment for which it is the main entity, and
b) all of the members of the group it has an ownership interest in that are not located in the territory it is located in, and
c) every permanent establishment of a member of the group it has an ownership interest in other than a permanent establishment located in the territory it is located in.
subsections (5) – (7) unchanged
6 Such a partially owned parent member is responsible for—
a) every permanent establishment for which it is the main entity, and
b) all of the members of the group it has an ownership interest in that are not located in the same territory it is located in, and
c) every permanent establishment of a member of the group it has an ownership interest in other than a permanent establishment located in the territory it is located in.
Section 1281 insertion
128 Responsible members
subsections (1) – (7) unchanged
7A If for an accounting period—
a) the application in relation to an entity located in a territory of a tax equivalent to the IIR provisions of multinational top-up tax depends on the making by any person of an election or claim, and
b) the election or claim has not been made,
subsections (4)(a) and (6)(a) apply in relation to that entity as they would apply if the entity's main entity were a responsible member of the multinational group located in the territory of the entity.
Section 131(3)1 change
131 Whether de-merged groups meet the revenue threshold
subsections (1) – (2) unchanged
3 …
b) the consolidated group's total revenues for that accounting period meet the revenue threshold, or would do ignoring any transitional safe harbour election.
Section 132(1)1 change
132 Effective tax rate
1 …Step 7: Divide the adjusted covered taxes by the net qualifying income. The result is the effective tax rate for the accounting period and rounded to the nearest fourth decimal place (if it would otherwise have more than four).
Section 135(1)2 changes
135 Underlying profits of permanent establishments
1 The underlying profits of a permanent establishment are the profits or losses of the permanent establishment as reflected in—
a) the financial accounts prepared in accordance with acceptable accounting standards of the permanent establishment prepared in accordance with … , or
b) …, on a net basis determined ~~in accordance with section 159~~on the same principles as those set out in section 159(1), (2) or (3) (as the case may be).
subsections (2) – (5) unchanged
Section 144(4)1 change
144 Adjustments for asymmetric foreign currency income and losses
subsections (1) – (3) unchanged
4 …
b) the ~~income~~gain or loss on the instrument as would be determined if the instrument were denominated in the functional currency of the member.
Section 1501 insertion
150 …
section 150 unchanged
150A Instruments held intragroup: issuer's accounting treatment to prevail
1 If—
a) a member of a multinational group ("the holder") holds an interest (of any description) in another member of the group ("the issuer"), and
b) the interest is accounted for as equity in the underlying profits accounts of the issuer but as a financial liability in the underlying profits accounts of the holder,
the interest is to be treated as equity in the underlying profits accounts of the holder for the purposes of this Part.
Section 1591 insertion
159 Permanent establishment income and expense attribution
subsections (1) – (4) unchanged
5 See also section 135(1)(b) (by virtue of which equivalent adjustments to those set out in subsections (1) to (3) will already be reflected in the underlying profits accounts of a permanent establishment that is not required to prepare financial accounts).
Section 1681 insertion
168 Underlying profits of transparent entities
subsections (1) – (10) unchanged
10ZA Where M is treated as a flow-through entity by virtue of an election made in relation to R and M under section 213 (investment entity tax transparency election), the underlying profits of R are to be adjusted so as to exclude any gain, profit or loss—
a) that arises from changes in the fair value of, or from a disposal of, M's interest in R, and
b) that is attributable to a change in the fair value of R's assets or liabilities that is not recognised in R's underlying profits.
subsections (10A) onwards unchanged
Section 1704 changes
170 Adjustments for ultimate parent that is a flow-through entity
1 Where—
a) the ultimate parent of a multinational group is a flow-through entity, and
b) on determining its adjusted profits for an accounting period (ignoring this section), it has made a profit for that period,
those profits are to be further adjusted so as to exclude any amount of ~~its profits~~those profits that is qualifying.
2 An amount of profits is qualifying if—
a) it represents an amount of ~~the ultimate parent's profits~~those profits to which the holder of a direct ownership interest in the ultimate parent is entitled as a result of that interest, and
b) condition A, B or C is met.
2A For the purposes of this section—
a) each holder of a direct ownership interest in the ultimate parent …
is also treated as holding an ownership interest in the ultimate parent for the purposes of this section.
subsections (3) – (5) unchanged
5A Subsections (5B) and (5C) apply where—
a) the holder of the ownership interest is not subject to tax …
subsections (6) – (9) unchanged
Section 174(5)1 change, 1 insertion
174 Amount of covered tax balance
subsections (1) – (4) unchanged
5 In this Part—references to the "covered tax balance" of a member of a multinational group are to a positive covered tax balance or a negative covered tax balance; "qualifying current tax expense" means the amount of the current tax expense as reflected in the member's ~~underlying profits~~partially adjusted profits to the extent the expense relates to covered taxes.
6 For the purposes of the definition of "qualifying current tax expense" in subsection (5), the member's "partially adjusted profits" are its underlying profits with the adjustments required by sections 136 to 165 applied.
Section 1751 insertion
175 Amounts excluded from qualifying current tax expense
subsections (1) – (2) unchanged
3 The reference in subsection (2)(a) to income or gains that are not included in the member's adjusted profits does not include any income or gains that are not included in its adjusted profits solely because of an election under section 164 (intra-group transactions).
Section 176(2)1 change
176 Amounts to be reflected in qualifying current tax expense
1 The amounts referred to in subsection (2) are to be reflected in a member of a multinational group's qualifying current tax expense (to the extent they were not already reflected).
2 Those amounts are as follows—
…
i) any amount of covered taxes that are paid or payable in respect of an accounting period and that were not reflected in the qualifying current tax expense for that period in accordance with this Part.
Section 176G(4)1 change
176G Clawback of earlier qualifying flow-through tax benefits
subsections (1) – (3) unchanged
4 For the purposes of this section, an investor has an "excess return" from an arrangement in an accounting period—
a) where section 176E applies, if the result of Step 6 in section 176E(1) exceeds the amount of the flow-through tax benefits provided under the arrangement in the accounting period …;
b) where section 176F applies and the investor did not have an excess return from the arrangement in an earlier accounting period, if the result of Step 2 in that section is less than nil …For the purposes of this section an investor has an "excess return" from an arrangement in an accounting period ("the current period") if the total relevant return exceeds the amount of capital investment provided by the investor to the arrangement at its commencement. The amount of the excess return is the amount of that excess. In this subsection "the total relevant return" means the sum of the amounts (if any) by which the flow-through tax benefits provided under the arrangement in each accounting period up to and including the current period exceed the amounts (if any) deducted under subsection (2) for each such period.
Section 181B(5)1 change
181B Cross-border allocation of deferred tax assets and liabilities
subsections (1) – (4) unchanged
5 … (and accordingly no allocation of deferred tax assets or liabilities is to be made under this Chapter in cases to which the deferred taxes methodology applies).
Section 182(1)1 change, 2 insertions
182 Total deferred tax adjustment amount
1 The total deferred tax adjustment amount for a member of a multinational group for an accounting period is the deferred tax expense relating to covered taxes reflected in the member's ~~underlying profits, adjusted as follows~~partially adjusted profits, but with that deferred tax expense adjusted as follows.
2 The deferred tax expense is to be adjusted to exclude the following—…
a) any amount of that expense that reflects items not reflected in the member's adjusted profits;
b) …
2A The deferred tax expense is to be adjusted to include (so far as it would not already) any amount of deferred tax expense in respect of covered taxes that is reflected in the member's underlying profits but not in the member's partially adjusted profits.
subsections (3) – (8) unchanged
9 In this section, "partially adjusted profits", in relation to a member of a multinational group, means its underlying profits with the adjustments required by sections 136 to 165 applied.
Section 182(2)1 change
182 Total deferred tax adjustment amount
subsection (1) unchanged
2 The deferred tax expense is to be adjusted to exclude the following—
a) any amount of that expense that reflects items not reflected in the member's adjusted profits (other than items that are not reflected solely because of an election under section 164 (intra-group transactions));
b) …
subsections (3) – (8) unchanged
Section 1851 change, 2 insertions
185 Inclusion of existing deferred tax assets and liabilities on entry into regime
1 This section applies to deferred tax assets and deferred tax liabilities of a member of a multinational group as at the beginning of the first accounting period for which Pillar Two rules apply to it ~~that is reflected~~that are reflected in its underlying profits accounts …
subsections (2) – (5) unchanged
6 Subsection (7) applies to a deferred tax asset of a member of a qualifying multinational group that arises—
~~a) before the commencement of the first accounting period for which Pillar Two rules apply to the member and~~a) before the commencement of the first accounting period for which Pillar Two rules apply to the member as a result of a transaction made after 30 November 2021 and before the commencement of that period, and
b) in relation to an item that either—
i) is included in the member's taxable income but which would not be included in the member's adjusted profits …
7 A deferred tax asset to which this subsection applies is to be ignored in determining the member's deferred tax expense.
7A Subsection (7D) applies to a deferred tax asset of a member of a multinational group that arises because of a temporary difference in respect of which—
a) the rules apply to the member for the first time in an accounting period beginning on or after 31 December 2025, and
b) the deferred tax asset was recognised before the commencement of the first accounting period for which Pillar Two rules apply to the member.
7D A deferred tax asset to which this subsection applies is to be ignored in determining the member's deferred tax expense.
Section 197A2 changes
197A Operating leases
2 For the purposes of this Part, income from an ~~operating lease~~property is to be treated as qualifying income …
3 For the purposes of this Part, income from an ~~operating lease~~property arrangement that is a tax equity partnership arrangement is not to be treated as qualifying income …
Section 210(2)1 change
210 Transfer of assets or liabilities from a member of a multinational group
1 This section applies where a member of a multinational group transfers assets or liabilities to another member of the same group.
2 The ~~transferee~~transferor is to use the carrying value of the assets or liabilities transferred as determined in the ~~transferee's~~transferor's financial accounts for the purposes of determining the adjusted profits and covered tax balance of the ~~transferee~~transferor.
Section 2174 changes
217 Post-filing adjustments of covered taxes
1 This section applies where, in an accounting period ("the current period"), the liability of a member of a multinational group to covered taxes for a prior accounting period ("the prior period") … has increased or decreased.
2 Subsection (4) applies where—
a) ~~that liability~~the relevant aggregate liability has increased, or
b) ~~that liability~~the relevant aggregate liability has decreased and the decrease is to be treated as insignificant.
3 Subsection (5) applies where ~~that liability~~the relevant aggregate liability has decreased, unless the decrease is to be treated as insignificant.
4 Where this subsection applies, the covered tax balance of the member for the current period is to be adjusted so as to reflect the amount of ~~that increase or decrease~~the increase or decrease referred to in subsection (1), if not already reflected in that balance.
5 Where this subsection applies—
a) the following are to be recalculated for the prior period to take account of the decrease ~~referred to in~~referred to in subsection (3) …
subsections (6) – (8) unchanged
9 In this section "the relevant aggregate liability", in relation to the member referred to in subsection (1), means the aggregate of—
a) the liability referred to in that subsection, and
b) the liabilities of any connected members.
Section 229C(3)1 insertion
229C UTPR: allocation of untaxed amounts to members
subsections (1) – (2) unchanged
3 For the purposes of this Chapter, a member of a multinational group is qualifying unless it is—
a) an investment entity, or
b) a member of a joint venture group, or
c) a securitisation company within the meaning of the Taxation of Securitisation Companies Regulations 2006 (S.I. 2006/3296).
Section 2323 changes
232 Permanent establishments ~~treated as entities~~
1 A "permanent establishment" of an entity ("the main entity") means a place of business of the main entity ~~that~~—
a) ~~is located~~that is situated in a territory other than the territory in which the main entity is located, and
b) meets any of the conditions in paragraphs (a) to (d) of subsection (2) ~~and the permanent establishment is not an entity that is treated as a transparent entity~~.
2 Those conditions are—
a) that the place of business ~~is situated~~is situated in a territory where it is treated as a permanent establishment… …
and the condition that the place of business's operations result in a net profit or net loss that, under the applicable tax treaty or under domestic law, is attributed to the permanent establishment.
aa) any profits in relation to which are reflected in the financial statements of the main entity, and
ii) the income attributable to the place of business's operations is exempted from tax by the territory …
Section 2321 insertion
232 Permanent establishments
section 232 unchanged
232ZA Legal main entity distinct from main entity
1 Where a permanent establishment has a legal main entity that is distinct from the main entity, this Part applies with the following modifications in relation to the permanent establishment.
subsections (2) onwards inserted
Section 2372 changes
237 Intermediate and partially-owned parent members
1 A member of a multinational group is a partially-owned parent member of that group if—
a) it is not a permanent establishment, investment entity or the ultimate parent,
~~b) it has (directly or indirectly) an ownership interest in another member of the group, and~~b) it has—
  i) a direct or indirect ownership interest in another member of the group, or
  ii) a permanent establishment, and
c) more than 20% of the ownership interests …
2 A member of a multinational group is an intermediate parent member of the group if—
a) it is not a permanent establishment, investment entity, a partially-owned parent member or the ultimate parent, and
~~b) it has (directly or indirectly) an ownership interest in another member of the group.~~b) it has—
  i) a direct or indirect ownership interest in another member of the group, or
  ii) a permanent establishment.
Section 239(7)1 insertion, 1 deletion
239 Location of entities
subsections (1) – (6) unchanged
7 For the purposes of this Part—
~~a) a "stateless entity" is to be treated as not being located in any territory;~~
b) where an entity's location changes during an accounting period, it is to be treated as being located in the territory it was located, or was treated as being located, at the start of that period.
8 As regards stateless entities see also section 132(3)(b) (stateless member of group treated as located in its own nominal territory).
Section 2411 deletion
241 Pillar Two territories
subsections (1) – (3) unchanged
4 A territory outside the United Kingdom is to be treated as a Pillar Two territory for the purposes of any accounting period that concluded before the first regulations under this section have been made, if it is a territory in which a tax applies for that accounting period—
a) that is a Qualified IIR for the purposes of the Pillar Two rules, or
b) that it is reasonable to conclude is likely to be a Qualified IIR for the purposes of those rules.
Section 242(2)1 change
242 Ownership interests and controlling interests
subsection (1) unchanged
2 For the purposes of this Part, A has an ownership interest in B if—
a) A holds a share or other interest in B that entitles A to a share of the profits or assets of B, or
b) that interest is accounted for as equity in the consolidated financial statements of the ultimate parent of the group of which B is a member (ignoring any requirement to consolidate the assets, liabilities, income, expenses and cash flows of B in those statements).b) that interest is accounted for as equity in—
i) where B is a member of a consolidated group, the consolidated financial statements of the ultimate parent of the group (ignoring any requirement to consolidate the assets, liabilities, income, expenses and cash flows of B in those statements), or
ii) otherwise, B's financial statements.
Section 247(1)1 change
247 Timing of transfers of interests
1 Where a transfer of an ownership interest in a member of a multinational group takes place in an accounting period of the group, and the income, expense, profit, loss, covered taxes and assets of the member are included in those of the group for only part of that period, the member's items are to be included in those of the group for the accounting period by reference to—
a) the portion of the period before the transfer takes place, and
b) in the words after paragraph (b), for ~~"earlier time when the transfer is effective"~~"other time".
Section 2561 deletion
256 Qualifying domestic top-up tax
subsections (1) – (4) unchanged
5 A tax (other than domestic top-up tax which is always a qualifying domestic top-up tax) is to be treated as a qualifying domestic top-up tax for the purposes of any accounting period that concluded before the first regulations under this section have been made if—
a) it is a Qualified Domestic Minimum Top-up Tax for that accounting period for the purposes of the Pillar Two rules, or
b) it is reasonable to conclude that it is likely to be a Qualified Domestic Minimum Top-up Tax for that accounting period for the purposes of those rules.
Section 2571 change, 1 insertion
257 Qualifying undertaxed profits tax
1 For the purposes of this Part a tax is a "qualifying undertaxed profits tax" if it is—
a) multinational top-up tax (see, in particular, Chapter 9A), or
b) specified in regulations made by the Treasury.
1A Regulations under subsection (1)(b) may provide for the specification of a tax to be made by notice published by the Commissioners for His Majesty's Revenue and Customs in accordance with the regulations.
2 ~~A tax may only be specified in regulations if the Treasury consider that the tax is an appropriate means of implementing the UTPR (within the meaning of the Pillar Two rules).~~A person may only specify a tax by virtue of this section if the person considers that the tax is an appropriate means of implementing the UTPR (within the meaning of the Pillar Two rules).
subsection (3) unchanged
Section 2674 changes
267 DTT excluded entities
subsections (1) – (3B) unchanged
3C ~~An investment entity that~~Where an investment entity—
a) ~~[words before paragraph]~~that entity is located in a territory that is not a Pillar Two territory, and
b) section 272(8)(e) ~~applies to it, it~~ applies to that entity as modified by a reference to "272(3A)" … is not a DTT excluded entity.
3D … paragraph (c)—
~~(c) omit "(8)(e)";~~(c) omit "(8)(e)" and at the end insert "and the section 193A(2) contained in subsection (3A) of that section".
Section 267(1)1 insertion
267 DTT excluded entities
1 An entity is a DTT excluded entity if—
a) it is a governmental entity, …
b) it is a pension fund, …
c) it is an investment entity that is not a member of a multinational group.
1A A UK REIT is a DTT excluded entity (so far as would not already be the case by virtue of subsection (1)(b) or (c)).
subsections (2) onwards unchanged
Section 2701 insertion
270 Domestic top-up tax: amount charged
subsections (A1) – (3) unchanged
4 The exchange rate to be used for a conversion to sterling required by Step 2 in subsection (A1) or Step 3 in subsection (1) is—
a) the average exchange rate published by the European Central Bank for the accounting period in question;
b) where no such rate is published by the European Central Bank, the average exchange rate published by the Bank of England for the accounting period in question;
c) where no such rate is published by either the European Central Bank or the Bank of England, such rate as appears, on a just and reasonable basis, to reflect the average exchange rate for the accounting period in question.
Section 2722 changes
272 Determining top-up amounts of entity that is a member of a group
subsections (1) – (7) unchanged
8 …
da) ~~in section 182(2)(e),~~section 182 (total deferred tax adjustment amount) has effect as if in subsection (2)(e), …
10 …
a) for ~~(8)(e)~~(3A) substitute …
Section 272(8)2 insertions
272 Domestic top-up tax: determining top-up amounts of entity that is a member of a group
subsections (1) – (7) unchanged
8 The following provisions of Part 3 have effect for the purposes of determining a member's domestic top-up tax with the following modifications—
a) …
aa) section 138 (profits adjusted to be before tax) has effect as if at the end of subsection (2) there were inserted—
  g) a group relief payment so far as excluded (and for that purpose "group relief payment" and "excluded" have the meaning given in section 173(3));
ab) section 173 (covered taxes) has effect, subject to paragraph (f) below, as if (in addition to the modification made by subsection (4)(a))—
  i) in subsection (1), the "and" after paragraph (c) were omitted and after paragraph (d) there were inserted, and
    e) a group relief payment so far as it is not excluded;
  ii) at the end there were inserted—
    3) For the purposes of subsection (1)(e)—
      a) "group relief payment" means a payment—
        i) in relation to which section 183 or 188FA of CTA 2010 applies to the member, and
        ii) that relates to group relief which the member claims under section 130 or 188CB of that Act by virtue of the group condition being met (see sections 132 and 188CE of that Act);
      b) a group relief payment is "excluded" so far as it exceeds 15% of the agreed loss amounts (within the meaning of section 183 or 188FA of that Act, as the case may be) …
    4) It follows from subsection (1)(e) that a group relief payment, so far as not excluded, operates to reduce the covered tax balance of the recipient.
…
f) section 239(4)(a) (location of entities: tie-breaker by reference to covered taxes) has effect without the modification made by paragraph (ab).
Section 272(8)1 change
272 Domestic top-up tax: determining top-up amounts of group member
subsections (1) – (7) unchanged
8 …
d) section 179 (controlled foreign companies) has effect as if for subsection (2) there were substituted—
2) But the amount of qualifying current tax expense in respect of mobile income allocated to F is not to exceed 15% of the profits of F.d) section 179 (controlled foreign companies) has effect as if for subsection (2) there were substituted—
2) But the amount of qualifying current tax expense in respect of mobile income allocated to F is not to exceed 15% of the adjusted profits of F.
Section 273(2)2 changes
273 Domestic top-up tax: determining top-up amounts of entity that is not a member of a group
subsection (1) unchanged
2 …in the section 132 contained in subsection (2)—
Steps 1 to 3: for ~~"member"~~"entity" substitute …
Step 6: at the end insert "and rounded to the nearest fourth decimal place (if it would otherwise have more than four)."
Schedule 14 ¶ 504 changes
Schedule 14 — Administration of multinational top-up tax
italic heading before paragraph 50 amended: for "Multiple" insert "tax-geared"
50 Multiple tax-geared penalties
(1) A penalty is payable by P if—
a) P is liable to a penalty under paragraph 44 or 45, and
b) P is liable to a penalty inwhose amount falls to be determined by reference to the tax payable in relation to the same accounting period.
(2) … penalties, so far as determined by reference to any particular part of the tax, under paragraph 44 or 45 may be charged in respect of the same accounting period, the penalty, so far as so determined, with the highest amount is the only one payable …
Schedule 151 change
Schedule 15 — Elections
1 ~~This paragraph applies to the following elections—~~For the elections to which this paragraph applies, see—
a) …
b) …
2 ~~This paragraph applies to the following elections—~~For the elections to which this paragraph applies, see—
a) …
Schedule 161 change, 2 insertions
Schedule 16 — Transitional provision
2 Intra-group transfers before entry into regime (sub-paragraph (3))—
a) …
~~and~~, and
c) a deferred tax asset is ignored if it is a deferred tax asset arising as described in section 185(7A) or (7B).
5 General transitional safe harbour election: qualifying income test (sub-paragraph (1)(a))—
a) …
~~and~~, and
c) any amount that relates to a deferred tax asset arising as described in section 185(7A) or (7B).
Schedule 16 ¶ 21 insertion
Schedule 16 — Multinational top-up tax: transitional provision
2 Intra-group transfers before entry into regime.
2A Transitional extension to deadline for elections
(1) Schedule 15 (multinational top-up tax: elections) has effect in its application to a pre-2026 election as if in paragraphs 1(2)(b) and 2(2)(b) of that Schedule for "no later than" there were substituted "before the end of the period of 12 months beginning with the day after".
(2) In sub-paragraph (1), a "pre-2026 election" means an election which specifies an accounting period beginning before 31 December 2025.
Schedule 16A1 insertion
Schedule 16A — Safe harbours
Part 1: qualifying domestic top-up tax safe harbour election; paragraph 1 sub-paragraphs (1)–(4) unchanged
5 If for an accounting period—
a) the application of a qualifying domestic top-up tax in relation to the members of a multinational group located in a territory depends on the making by any person of an election or claim, and
b) the election or claim has not been made,
the qualifying domestic top-up tax safe harbour election may not be made in respect of that territory for that accounting period.
Schedule 16A1 insertion
Schedule 16A — Safe harbours, paragraph 7
sub-paragraphs (1) – (5) unchanged
6 For the purposes of this paragraph, "territory" does not include the nominal territory of a stateless member of a multinational group (see section 132(3)(b)).
Schedule 16A1 insertion
Schedule 16A — Safe harbours
Parts 1 and 2 unchanged
Part 3 Simplified calculations for non-material members of group
Election in respect of non-material members
8(1) The filing member of a multinational group may for an accounting period make an election under this paragraph in respect of one or more members of the group in a territory.
(2) An election may be made only if for the accounting period in question—
a) the specified members are non-material members of the group,
b) the accounting conditions are met, and
c) any of the following is met—
  i) the routine profits test;
  ii) the de minimis test;
  iii) the effective tax rate test.
(3) Where an election is made, the total top-up amount for the accounting period for the territory is assumed to be nil …
Schedule 16A ¶ 21 deletion
Schedule 16A — Safe harbours, paragraph 2: Accredited qualifying domestic top-up tax
1 A qualifying domestic top-up tax is an "accredited qualifying domestic top-up tax" if it is accredited as such …
2 … [sub-paragraph (2) omitted]
3 … [sub-paragraph (3) omitted]
Schedule 16A ¶ 31 change, 1 insertion
Schedule 16A — Safe harbours, paragraph 3: Disqualifying conditions
1 The safe harbour election has effect only if none of ~~Conditions A to D~~the following conditions is met.
sub-paragraphs (2) – (6) (Conditions A to D) unchanged
7 Condition E is that—
a) a member of the group located in the territory has a relevant pre-entry deferred tax asset or relevant pre-entry deferred tax liability, and
b) the qualifying domestic top-up tax applying in the territory does not take into account the relevant pre-entry deferred tax asset or liability.
Schedule 16A ¶ 31 insertion
Schedule 16A — Safe harbours, Part 1, paragraph 3: Disqualifying conditions
sub-paragraphs (1) – (8) (including Condition E inserted by paragraph 22) unchanged
9 Condition F is that the qualifying domestic top-up tax applying in the territory is not charged in respect of a member of the group located in the territory because of an exemption (however framed) or special regime relating to persons that are members of a group subject to a domestic minimum top-up tax equivalent.
Schedule 71 change
Schedule 7 — Rates of alcohol duty
previous table substituted in full
TABLE 1: Alcoholic strength / Rate per litre of alcohol: Less than 3.5% — £9.96; At least 3.5% but less than 8.5% — See Table 2; At least 8.5% but not exceeding 22% — £30.62; Exceeding 22% — £33.99
Schedule 81 change
Schedule 8 — Qualifying draught products: reduced rates
previous schedule substituted in full
Alcoholic products of an alcoholic strength of less than 3.5% — £8.58; [rates for higher strength draught products as specified]
Schedule 91 change
Schedule 9 — Small producer alcoholic products: duty discount
previous schedule substituted in full — rates updated

Capital Allowances Act 2001

8 amendments · open Act

Section 391 insertion
39 First-year allowances available for certain types of qualifying expenditure only
A first-year allowance is not available unless the qualifying expenditure is first-year qualifying expenditure under any of the following provisions—
existing table entries including section 45S unchanged
section 45U — expenditure on plant or machinery in cases not falling within section 45S etc
Section 45D(1B)2 changes
45D Expenditure on zero-emission cars
subsection (1) unchanged
1B The “relevant period” is the period beginning with 17 April 2002 and ending with—
a in the case of expenditure incurred by a company within the charge to corporation tax, 31 March ~~2026~~2027, and
b in the case of expenditure incurred by a person within the charge to income tax, 5 April ~~2026~~2027.
Section 45EA(3)2 changes
45EA Expenditure on plant or machinery for electric vehicle charging point
subsections (1) – (2) unchanged
3 The “relevant period” is the period beginning with 23 November 2016 and ending with—
a in the case of expenditure incurred by a person within the charge to corporation tax, 31 March ~~2025~~2027, and
b in the case of expenditure incurred by a person within the charge to income tax, 5 April ~~2025~~2027.
subsections (4) – (5) unchanged
Section 45T1 insertion
45T Expenditure on plant or machinery for electric vehicle charging point
section 45T unchanged
45U Expenditure on plant or machinery in cases not falling within section 45S etc
Expenditure is first-year qualifying expenditure if—
a it is incurred on or after 1 January 2026,
b it is not special rate expenditure,
c it is expenditure on plant or machinery which is unused and not second-hand, and
d it is not excluded by section 45V (exclusion of expenditure under disqualifying arrangements) or 46 (general exclusions).
45V Exclusion of expenditure incurred under disqualifying arrangements
1 Expenditure is not first-year qualifying expenditure under section 45U if the expenditure is incurred directly or indirectly in consequence of, or otherwise in connection with, disqualifying arrangements.
Section 462 insertions
46 General exclusions
1 Expenditure within any of the general exclusions in subsection (2) is not first-year qualifying expenditure under any of the following provisions—
existing provisions list unchanged
section 45U (expenditure on plant or machinery in cases not falling within section 45S etc),
subsections (2) – (4A) unchanged
4B General exclusion 6 does not prevent expenditure being first-year qualifying expenditure under section 45U if—
a the plant or machinery is provided for leasing to a lessee for use by the lessee wholly, or almost wholly, for the purpose of earning income which is within the charge to tax, or
b the plant or machinery is provided for leasing to a lessee who is resident in the United Kingdom where the circumstances are such that the plant or machinery is not for use (to a significant extent) by the lessee for the purpose of earning income which is from a source outside the United Kingdom and which is outside the charge to tax.
Section 56(1)1 change
56 Amount of plant and machinery allowances
1 The amount of the writing-down allowance to which a person is entitled for a chargeable period is ~~18%~~14% of the amount by which AQE exceeds TDR.
subsections (1A) – (3) unchanged
Section 63(4)(b)1 change
63 Cases in which disposal value is nil
subsections (1)–(3) unchanged
4 In subsections (2) and (3)—
paragraph (a) unchanged
b the reference to income tax relief is a reference to relief under ~~section 809ZM~~sections 809ZM and 809ZMB of ITA 2007 (removal of income tax relief in relation to tainted donations) or ~~section 939F~~sections 939F and 939FB of CTA 2010.
Section 63(4)(b)1 change
63 Cases in which disposal value is nil
subsections (1)–(3) unchanged
4 In subsections (2) and (3)—
paragraph (a) unchanged
b the reference to income tax relief is a reference to relief under sections 809ZM and 809ZMB of ITA 2007 or ~~section 939F~~sections 939F and 939FB of CTA 2010.

Inheritance Tax Act 1984

66 amendments · open Act

Section 12A1 deletion
12A Pension drawdown fund not used up: no deemed disposition
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 181 insertion
18 Transfers between spouses or civil partners
subsections (1) – (3) unchanged
3A To the extent that the value transferred by a transfer of value made on the death of a member of a pension scheme is attributable to the member's notional pension property—(a) the value transferred is treated for the purposes of this section as also attributable to any property that the person's spouse or civil partner receives, or has a present or future right to receive, under the scheme on the death of the member otherwise than as an excluded benefit; (b) the estate of the transferor's spouse or civil partner is treated for the purposes of subsection (1) as increased by the value of any property that they receive, or have a right to receive, as mentioned in paragraph (a), and (c) subsection (3) does not apply in relation to the transfer of value.
subsection (4) unchanged
Section 231 insertion
23 Gifts to charities or registered clubs
subsections (1) – (5A) unchanged
5B To the extent that the value transferred by a transfer of value made on the death of a member of a pension scheme is attributable to the member's notional pension property—(a) the value transferred is treated for the purposes of this section as also attributable to any property that on the death of the member is given under the scheme to charities or registered clubs, and (b) subsection (2) does not apply in relation to the transfer of value.
subsections (6) – (7) unchanged
Section 23(6)2 deletions
23 Gifts to charities or registered clubs
subsections (1) – (5B) unchanged
6 For the purposes of this section—(a) property is given to charities if it becomes the property of charities ~~or is held on trust for charitable purposes only~~; and (b) property is given to registered clubs if it becomes the property of registered clubs ~~or is held on trust for purposes of registered clubs only~~; and "donor" shall be construed accordingly.
subsection (7) unchanged
Section 23(6)1 deletion
23 Gifts to charities or registered clubs
subsections (1) – (5B) unchanged
6 For the purposes of this section—(a) property is given to charities if it becomes the property of charities; and (b) property is given to registered clubs if it becomes the property of registered clubs ~~or is held on trust for purposes of registered clubs only~~; and "donor" shall be construed accordingly.
subsection (7) unchanged
Section 241 insertion
24 Gifts to political parties
subsections (1) – (4) unchanged
5 To the extent that the value transferred by a transfer of value made on the death of a member of a pension scheme is attributable to the member's notional pension property—(a) the value transferred is treated for the purposes of this section as also attributable to any property that on the death of the member is given under the scheme to a political party qualifying for exemption under this section, and (b) section 23(2) does not apply in relation to the transfer of value.
Section 24A1 insertion
24A Gifts to housing associations
subsections (1) – (3) unchanged
4 To the extent that the value transferred by a transfer of value made on the death of a member of a pension scheme is attributable to the member's notional pension property—(a) the value transferred is treated for the purposes of this section as also attributable to any property that on the death of the member is given under the scheme to a housing association qualifying for exemption under this section, and (b) section 23(2) does not apply in relation to the transfer of value.
Section 251 insertion
25 Gifts for national purposes etc
subsections (1) – (3) unchanged
4 To the extent that the value transferred by a transfer of value made on the death of a member of a pension scheme is attributable to the member's notional pension property—(a) the value transferred is treated for the purposes of this section as also attributable to any property that on the death of the member is given under the scheme to a body listed in Schedule 3, and (b) section 23(2) does not apply in relation to the transfer of value.
Section 271 insertion
27 Maintenance funds for historic buildings etc
subsections (1) – (2) unchanged
3 To the extent that the value transferred by a transfer of value made on the death of a member of a pension scheme is attributable to the member's notional pension property—(a) the value transferred is treated for the purposes of this section as also attributable to any property that on the death of the member is given under the scheme to a maintenance fund for historic buildings, and (b) section 23(2) does not apply in relation to the transfer of value.
Section 29A(6)1 deletion
29A Abatement of exemption where claim settled out of beneficiary's own resources
subsections (1) – (5) unchanged
6 In this section— "the exempt beneficiary", in relation to an exempt gift, means any of the following: (a) … (b) the trustee or trustees of a settlement under which a person has a life interest in, or other interest in possession in, the exempt gift, ~~and (ii) a trustee of a charitable trust in which the exempt gift is held~~;
Section 48ZA(10)1 change
48ZA Excluded property: property comprised in settlements
subsections (1) – (9) unchanged
10 Subsections (2) to (4) are subject to Schedule A1 (overseas property with value attributable to UK residential property or UK agricultural property).
Section 53(4A)1 change
53 Exceptions from charge under section 52
subsections (1) – (4) unchanged
4A Tax shall not be chargeable under section 52 above if—
(a) the settled property became comprised in the settlement before 30 October 2024,
(b) immediately before 30 October 2024, the settled property was excluded property by virtue of section 48(3) or (3A) (as it had effect at that time),
(c) the person whose interest comes to an end became beneficially entitled to the interest before 30 October 2024, and
(d) immediately before the person's interest in possession in it comes to an end, the settled property—
(i) was situated outside the United Kingdom and was not property to which paragraph 2 or 3 of Schedule A1 applied (overseas property with value attributable to UK residential property or UK agricultural property), or
(ii) was a holding in an authorised unit trust or a share in an open-ended investment company.
Section 54(2C)1 change
54 Exceptions from charge on death
subsections (1) – (2B) unchanged
2C Where—
(a) a person who is entitled to an interest in possession in settled property dies,
(b) the settled property became comprised in the settlement before 30 October 2024,
(c) immediately before 30 October 2024, the settled property was excluded property by virtue of section 48(3) or (3A) (as it had effect at that time),
(d) the person became beneficially entitled to the interest before 30 October 2024, and
(e) immediately before the person's death, the settled property—
(i) was situated outside the United Kingdom and was not property to which paragraph 2 or 3 of Schedule A1 applied (overseas property with value attributable to UK residential property or UK agricultural property), or
(ii) was a holding in an authorised unit trust or a share in an open-ended investment company,
the value of the settled property shall be left out of account in determining for the purposes of this Act the value of the deceased's estate immediately before their death.
subsection (2D) unchanged
Section 652 insertions
65 Charge at other times
subsections (1) – (8A) unchanged
8B None of subsections (7), (7A) and (8) applies in relation to property comprised in a settlement if—(a) a long-term residence change took place at a time—(i) before the event in question, and (ii) if there have been one or more ten-year anniversaries before the event in question, after the most recent of them, (b) the long-term residence change did not result in tax being charged under this section by reference to the property, and (c) the long-term residence change would have resulted in tax being charged under this section by reference to the property if the property had been property situated outside the United Kingdom when the long-term residence change took place.
8C In subsection (8B) "long-term residence change" means—(a) the settlor not being a long-term UK resident at the start of the tax year 2025-26, or (b) the settlor ceasing to be a long-term UK resident at the start of any later tax year.
subsection (9) unchanged
Section 69(1)1 change
69 Rate between ten-year anniversaries
1 Subject to subsection (2A) below, the rate at which tax is charged under section 65 above on an occasion following one or more ten-year anniversaries after the settlement's commencement shall be the appropriate fraction of the rate at which it ~~was last charged under section 64~~would have been last charged under section 64 if the following were disregarded—
(a) section 66(2) (reduction of rate where value attributable to property that is not comprised in the settlement or is not relevant property), and
(b) Chapters 1 to 2A of Part 5 (business property relief and agricultural property relief).
subsections (2) – (4) unchanged
Section 69(2A)1 change
69 Rate between ten-year anniversaries
subsections (1) – (2) unchanged
2A Whether or not all of the property within any of paragraphs (a) to (c) of subsection (2) above has remained relevant property comprised in the settlement, the rate at which tax is charged under section 65 is to be the appropriate fraction of the rate at which it would last have been charged under section 64 ~~above (apart from section 66(2) above)~~, disregarding section 66(2) and Chapters 1 to 2A of Part 5, if—
(a) immediately before the most recent ten-year anniversary, all of that property had been relevant property comprised in the settlement with a value determined in accordance with subsection (3) below, and
(b) any same-day additions had been made…
subsections (3) – (4) unchanged
Section 75A1 insertion
Section inserted after section 75A
75B Cap on charges for pre-30 October 2024 excluded property — This section applies if tax is charged under section 64 (ten-year anniversary charge) or 65 (exit charge) by reference to the value of property that: (a) became comprised in the settlement before 30 October 2024, (b) was excluded property by virtue of section 48(3) or (3A) immediately before 30 October 2024, and (c) immediately before the occasion of the charge is either outside the United Kingdom and not subject to Schedule A1, or is a holding in an authorised unit trust or share in an OEIC. The amount of tax is reduced (but not below zero) to the applicable cap less any amount already charged under section 65 in the relevant period. The cap is £125,000 per quarter in the first relevant period; £5 million for subsequent ten-year periods.
Section 811 insertion
81 Property moving between settlements
subsection (1) unchanged
1A Subsection (1) applies for the purposes of Chapters 1 to 2A of Part 5 as it applies for the purposes of this Chapter.
subsections (2) – (3) unchanged
Section 1043 insertions
104 Business property relief
subsection (1) amended separately
1A But so much of the value transferred as—
(a) is attributable to the value of relevant business property that falls within section 105(1)(a), (b) or (bb),
(b) constitutes a chargeable transfer that is not an occasion on which tax is chargeable under Chapter 3 of Part 3 (charges on certain settlements etc), and
(c) does not exceed the amount of the 100% relief allowance available in relation to that chargeable transfer (see section 124D),
is to be treated (instead) as reduced by 100%.
1B And so much of the value transferred as—
(a) is attributable to the value of relevant business property that falls within section 105(1)(a), (b) or (bb),
(b) constitutes a chargeable transfer that is an occasion on which tax is chargeable under Chapter 3 of Part 3, and
(c) does not exceed the amount of the 100% trust relief allowance available in relation to that occasion (see sections 124G to 124K),
is to be treated (instead) as reduced by 100%.
1C Subsections (1) to (1B) are subject to the following provisions of this Chapter.
Section 104(1)1 change, 1 deletion
104 Business property relief
1 Where the whole or part of the value transferred by a transfer of value is attributable to the value of any relevant business property, the whole or that part of the value transferred shall be treated as reduced by ~~the appropriate percentage~~50%.—
(a) . . .
(b) . . .
Section 105(1)2 changes, 1 insertion
105 Relevant business property
1 Subject to the following provisions of this section and to sections 106, 108, …, 112(3) and 113 below, in this Chapter "relevant business property" means, in relation to any transfer of value,—
(a) property consisting of a business or interest in a business;
(aa) any unquoted shares that are traded on a recognised stock exchange;
(ab) any unquoted securities of a company—
(i) that are traded on a recognised stock exchange, and
(ii) which (either by themselves or together with any unquoted shares in, or other unquoted securities of, the company that are owned by the transferor) gave the transferor control of the company immediately before the transfer;
(ac) any unquoted shares that are traded on an exchange outside the United Kingdom that is not a recognised stock exchange;
(ad) any unquoted securities of a company—
(i) that are traded on an exchange outside the United Kingdom that is not a recognised stock exchange, and
(ii) which (either by themselves or together with any unquoted shares in, or other unquoted securities of, the company that are owned by the transferor) gave the transferor control of the company immediately before the transfer;
(b) any other shares in or securities of a company which are unquoted;
(bb) any other [land, buildings etc];
…
subsections (1ZA) – (6) unchanged
Section 107(4)1 change
107 Replacements
subsections (1) – (3) unchanged
4 Without prejudice to subsection (1) above, where any shares falling within section 105(1)(aa), ~~(bb)~~(aa) or (bb) above which are owned by the transferor immediately before the transfer would under any of the provisions of sections 126 to 136 of the 1992 Act be identified with other shares previously owned by him, those other shares shall be treated as falling within section 105(1)(aa) or (bb) above.
Section 107(4)1 change
107 Replacements
subsections (1) – (3) unchanged
4 Without prejudice to subsection (1) above, where any shares falling within section 105(1)(aa), (ac) or (bb) above which are owned by the transferor immediately before the transfer would under any of the provisions of sections 126 to 136 of the 1992 Act be identified with other shares previously owned by him, those other shares shall be treated as falling within section 105(1)(aa), (ac) or (bb) above.
Section 113A1 insertion
113A Business property: transfers within seven years before death of transferor
subsections (1) – (2) unchanged
2A Where subsection (2) applies, the chargeable transfer is to be ignored for the purposes of determining the amount of the 100% relief allowance available in relation to a chargeable transfer under section 124D.
subsections (3) – (3B) unchanged
Section 113A(3A)1 change
113A Business property: transfers within seven years before death of transferor
subsections (1) – (3) unchanged
3A This subsection applies to shares or securities—
(a) which were quoted at the time of the chargeable transfer referred to in subsection (1) or subsection (2) above; or
(b) which fell within ~~paragraph (b) or~~any of paragraphs (aa) to (bb) of section 105(1) above in relation to that transfer and were unquoted throughout the period in question.
Section 1163 insertions
116 The relief
subsection (1) amended separately
1A But so much of that whole or that part as—
(a) constitutes a chargeable transfer that is not an occasion on which tax is chargeable under Chapter 3 of Part 3 (charges on certain settlements etc), and
(b) does not exceed the amount of the 100% relief allowance available in relation to that chargeable transfer (see section 124D),
is to be treated (instead) as reduced by 100%, but only if the transferor's interest condition is met.
1B And so much of that whole or that part as—
(a) constitutes a chargeable transfer that is an occasion on which tax is chargeable under Chapter 3 of Part 3, and
(b) does not exceed the amount of the 100% trust relief allowance available in relation to that occasion (see sections 124G to 124K),
is to be treated (instead) as reduced by 100%, but only if the transferor's interest condition is met.
1C Subsections (1) to (1B) are subject to the following provisions of this Chapter.
Section 116(1)1 change
116 The relief
1 Where the whole or part of the value transferred by a transfer of value is attributable to the agricultural value of agricultural property, the whole or that part of the value transferred shall be treated as reduced by ~~the appropriate percentage~~50%.
Section 116(2)1 change, 1 deletion
116 The relief
subsections (1) to (1C) amended separately
2 ~~The appropriate percentage is 100 per cent.~~For the purposes of subsections (1A) and (1B), the transferor's interest condition is met if the transferor's interest in the property—
(a) was an interest in possession in settled property and the property was agricultural property throughout the period of two years ending with the date of the transfer;
(b) was a share in a partnership and the property was agricultural property throughout the period of two years ending with that date; or
(c) [as before].~~[words after paragraph (c) omitted]~~
Section 116(4)2 changes
116 The relief
subsections (1) to (3) amended separately or unchanged
4 Where the property would be agricultural property, but the transferor's interest in the property would not satisfy the conditions of subsection (2), and—
(a) [conditions], and
(b) [conditions],
then if the ~~appropriate percentage would be 100 per cent.~~transferor's interest condition would be met had those conditions been satisfied, ~~the appropriate percentage~~subsections (1A) and (1B) have effect as if—
(a) the transferor's interest condition were met, and
(b) after paragraph (a) of each subsection there were inserted—
(aa) does not exceed the amount which would have attracted relief under Schedule 8 to the Finance Act 1975, and.
Section 124A1 insertion
124A Agricultural property: transfers within seven years before death of transferor
subsections (1) – (2) unchanged
2A Where subsection (2) applies, the chargeable transfer is to be ignored for the purposes of determining the amount of the 100% relief allowance available in relation to a chargeable transfer under section 124D.
subsections (3) – (5) unchanged
Section 131(2)1 change
131 Business or agricultural property
subsection (1) unchanged
2 If—
(a) the market value of the transferred property at the time of the chargeable transfer exceeds its market value on the relevant date, and
(b) a claim is made by a person liable to pay the whole or part of the tax or, as the case may be, additional tax,
the tax or, as the case may be, additional tax shall be calculated as if the value transferred ~~were reduced by the amount of the excess~~reflected the market value of the transferred property on the relevant date, rather than its market value at the time of the chargeable transfer.
subsections (2ZA), (3) – (5) unchanged
Section 131(2A)1 deletion
131 Business or agricultural property
subsections (1) – (2ZA) unchanged
2A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
subsections (3) – (5) unchanged
Section 142(3A)1 change
142 Alteration of dispositions taking effect on death
subsections (1) – (3) unchanged
3A Subsection (1) does not apply to a variation by virtue of which any property comprised in the estate immediately before the person's death becomes property in relation to which section 23(1) applies unless it is shown that ~~the appropriate person~~the charity or registered club to which the property is given has been notified of the existence of the instrument of variation.
subsections (4) – (7) unchanged
Section 142(3B)1 deletion
142 Alteration of dispositions taking effect on death
subsections (1) – (3A) unchanged
3B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
subsections (4) – (7) unchanged
Section 1512 insertions
150A Certain pension interests treated as part of estate
section 150A inserted before section 151 by Finance Act 2026 s. 66
1 For the purposes of this Act a member of a registered pension scheme, a qualifying non-UK pension scheme or a section 615(3) scheme is treated as beneficially entitled immediately before their death to property ("notional pension property") by reference to the arrangements under the scheme as they stand at that time.
2 The value of the member's notional pension property in relation to the scheme is calculated in accordance with steps set out in this section (dealing with money purchase arrangements and defined benefits arrangements).
subsections (3) – (9) inserted (see Finance Act 2026 s. 66 for full text)
Section 1511 change
151 ~~Treatment of pension rights etc~~Other provision about pension interests
subsections (1) – (5) unchanged
Section 1511 change
151 Other provision about pension interests
subsections (1) – (1A) unchanged (repealed)
3 ~~This section applies to a pension scheme if the scheme is a registered pension scheme ... [former text]~~Sections 49 to 53 (holder of interest in possession treated as directly entitled to property in which interest subsists etc) do not apply in relation to an interest in possession in property where the property is held for the purposes of a registered pension scheme, a qualifying non-UK pension scheme or a section 615(3) scheme.
subsection (5) unchanged
Section 1511 deletion
151 Other provision about pension interests
subsections (1) – (3) unchanged
4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
subsection (5) unchanged
Section 1521 deletion
152 Cash options
Where under the terms of an annuity contract or scheme approved by the Board... [section 152 omitted in full]
Section 1551 insertion
Section inserted after section 155
155ZA Foreign diplomats etc — In determining whether a person is a long-term UK resident for the purposes of this Act, the person is treated as not having been resident in the United Kingdom for any tax year in which they were subject at any time to a relevant international exemption. A person is "subject to a relevant international exemption" if an exemption in respect of inheritance tax would apply in relation to any of the person's property by virtue of any of the following: the Diplomatic Privileges Act 1964, the Consular Relations Act 1968, the International Organisations Act 1968, the European Communities Act 1972, the International Criminal Court Act 2001.
Section 157(3)2 deletions
157 Non-residents' bank accounts
subsections (1) – (2) unchanged
3 Subsection (1)(b) above does not apply in relation to settled property if—(a) the trustees are resident in the United Kingdom immediately before the beneficiary's death, (b) the settlor is alive and is a long-term UK resident immediately before the beneficiary's death, (c) the settlor died on or after 6 April 2025 and was ~~not~~ a long-term UK resident immediately before they died, or (d) the settlor died before 6 April 2025 and was ~~not~~ domiciled in the United Kingdom when the property became comprised in the settlement.
subsections (3A) – (6) unchanged
Section 1778 insertions
177 Scottish agricultural leases
subsections (1) – (4) amended separately or unchanged
5 The Treasury may by regulations make provision about relevant interests, corresponding to the provision made by this section in relation to the interest of a tenant in a lease of agricultural property in Scotland.
6 For the purposes of subsection (5), a "relevant interest" is the interest of a tenant in a specified type of lease or tenancy of agricultural property in Scotland forming part of the value of a person's estate immediately before that person's death.
7 Regulations under subsection (5) must specify the value which is to be left out of account for the purposes of determining the value of a person's estate or, as the case may be, part of a person's estate.
8 Regulations under this section are to be made by statutory instrument.
9 Regulations under this section may make such amendments or repeals of this section as appear to the Treasury to be expedient in consequence of provision made by virtue of subsections (1)(c), (2)(a)(iii) or (5).
10 Regulations under subsections (1)(c), (2)(a)(iii) or (5) may have effect in relation to deaths occurring before the regulations are made.
11 A statutory instrument containing regulations made under this section is subject to annulment in pursuance of a resolution of the House of Commons.
12 In this section—"agricultural property" has the same meaning as in Chapter 2 of Part 5; "enactment" includes an enactment contained in or made under an Act of the Scottish Parliament; "specified" means specified by regulations made by the Treasury.
Section 177(1)1 change
177 Scottish agricultural leases
1 Where any part of the value of a person's estate immediately before his death is attributable to the interest of a tenant in an unexpired portion of a lease for a fixed term of agricultural property in Scotland then, subject to subsection (3) below, there shall be left out of account in determining that value any value associated with any prospect of renewal of the lease by—~~tacit relocation~~(a) tacit relocation (or any provision in the lease having the same effect as tacit relocation),
(b) continuation by virtue of section 4, 8(6) or 8E(1) of the Agricultural Holdings (Scotland) Act 2003, or
(c) continuation by virtue of a specified enactment.
subsections (2) – (4) unchanged or separately amended
Section 177(2)1 change
177 Scottish agricultural leases
subsection (1) amended separately
2 Where any part of the value of a person's estate immediately before his death is attributable to the interest of a tenant of agricultural property in Scotland, being an interest which is—
(a) held by virtue of—
(i) tacit relocation (or any provision in the lease having the same effect as tacit relocation),
(ii) continuation by virtue of section 4, 8(6) or 8E(1) of the Agricultural Holdings (Scotland) Act 2003, or
(iii) continuation by virtue of a specified enactment,~~tacit relocation,~~ and
(b) [not being a lease for a fixed term],
there shall be left out of account in determining that value the value attributable to the prospect of continuation or renewal of the tenancy.
subsections (3) – (4) unchanged
Section 178(2)2 deletions
178 Sale of shares etc from deceased's estate: introductory
subsection (1) unchanged
2 In this Chapter "qualifying investments" means—
(a) shares or securities which are quoted ~~or dealing on the Unlisted Securities Market~~ at the date of death;
(b) holdings in authorised unit trusts at that date;
(c) shares in open-ended investment companies at that date;
and references in this Chapter to investments being sold or purchased include references to them being ~~or dealt in~~.
Section 180(3)1 deletion
180 Effect of purchasing qualifying investments
subsections (1) – (2) unchanged
3 For the purposes of subsection (2) the amount of the consideration shall be calculated without regard to the amount of any dividend or interest which is included in that consideration or which is payable in respect of the investments at that date but is not included in the consideration, and without regard to any stamp duty paid on the purchase; and any amount of dividend or interest so included shall be deducted. In this subsection "quoted" means listed on a recognised stock exchange ~~or separately dealt in on the Unlisted Securities Market~~.
Section 186B(1)1 deletion
186B Suspended investments
1 In this Chapter "suspended investments" means qualifying investments which cannot be sold by the [personal representatives] at the time and in the manner described in section 186A(1) because of a suspension or restriction on dealing in ~~or dealing on the Unlisted Securities Market~~ them on the day mentioned in that subsection.
subsections (2) – (3) unchanged
Section 2103 insertions
210 Pension rights
section 210 substituted in full by Finance Act 2026 s. 67(2)
1 This section applies to any tax that is attributable to the value of notional pension property of a deceased member of a registered pension scheme, a qualifying non-UK pension scheme or a section 615(3) scheme.
2 For the purposes of this Part the tax is treated as also attributable to the value of—(a) any property held for the purposes of the scheme that is available for paying a benefit on the deceased's death, except so far as the property may only be used to provide an excluded benefit, or an exempt benefit, on the deceased's death, and (b) any property that is received by a person under the scheme as a benefit on the deceased's death, other than an excluded benefit or an exempt benefit.
3 The persons liable for the tax (as well as including a person within section 200(1)(c)) include the deceased's personal representatives, the scheme administrator (in specified circumstances), but not the trustees of a registered pension scheme or section 615(3) scheme.
subsections (4) – (7) inserted (see Finance Act 2026 s. 67(2) for full text)
Section 211(3)1 change
211 Burden of tax on death
subsections (1) – (2) unchanged
3 If personal representatives pay an amount of tax, the amount does not fall to be borne as part of the general testamentary and administration expenses of the estate, and the recipient of the property to whose value the tax is attributable is under a duty to reimburse the personal representatives.If—(a) personal representatives pay an amount of tax, (b) the amount does not fall to be borne as part of the general testamentary and administration expenses of the estate, (c) property to whose value the tax is attributable is vested in someone other than the personal representatives ("the vestee"), and (d) the personal representatives can recover the tax from the vestee,—then the personal representatives are entitled to recover that amount from the vestee.
subsection (4) unchanged
Section 212(1)1 change
212 Powers to raise tax
1 Where a person is liable, otherwise than as transferor, and otherwise than under section 203 above, for tax attributable to the value of any property he shall, for the purpose of paying the tax or raising the amount of it when paid, have power, whether or not the property is vested in him, to raise the amount of the tax by sale or mortgage of, or a terminable charge on, that property~~, or any part of it~~, any property derived from that property, or any part of that property or of property derived from it.
subsections (2) – (4) unchanged
Section 218A1 insertion
Section inserted after section 218A
218B Pensions: information powers — The powers conferred on the Board by section 251 of the Finance Act 2004 (powers relating to the provision and preservation of information in connection with pensions) are exercisable for the purposes of this Act.
Section 2262 insertions
Sections inserted after section 226
226A Tax on notional pension property: withholding of benefits — The personal representatives of a deceased person may give a notice ("withholding notice") to the scheme administrator of a registered pension scheme. While a withholding notice has effect, no benefit may be paid under the scheme to a person if the total benefits previously paid to them exceed 50% of their benefit entitlement. The notice has effect until the tax liability is fully discharged or the notice is withdrawn.
226B Direct payment of tax on receipt of notice — On receiving a withholding notice, the scheme administrator must calculate the amount of tax attributable to notional pension property, pay it to HMRC, and adjust benefit payments to beneficiaries accordingly by making proportionate reductions.
Section 227(2)1 change, 1 insertion
227 Payment by instalments
subsection (1) – (1C) unchanged
2 In this section "qualifying property" means—
(a) land of any description, wherever situated;
(aa) property that is relevant business property for the purposes of Chapter 1 of Part 5;
(b) shares or securities to which section 228 below applies and that are not relevant business property for the purposes of that Chapter;
…
Section 234(1)1 change
234 Interest on instalments
1 Where tax payable on the value transferred by a chargeable transfer—
(a) is payable by instalments under section 227 above and is attributable to ~~the value of shares or securities to which section 228 below applies or to the value of a business or of an interest in a business~~—
(i) value treated as reduced under Chapter 1 or 2 of Part 5 of this Act, or
(ii) the value of any shares, securities, business or interest in a business, if that value is not treated as reduced under either Chapter of that Part, or,
(b) is payable by instalments under section 229 or 230 below,
interest shall not be payable except as provided in this section.
subsections (2) – (4) amended or unchanged
Section 234(2)1 change
234 Interest on instalments
subsection (1) amended separately
2 Subsection (1) above shall not apply to tax attributable to the value of shares or securities of a company falling within paragraph (a) of subsection (3) below ~~(not being tax attributable to value treated as reduced under Chapter II of Part V of this Act)~~that is not tax attributable to value treated as reduced under Chapter 1 or 2 of Part 5 of this Act unless it also falls within paragraph (b) of that subsection.
subsections (3) – (4) unchanged
Section 237(2A)1 change
237 Imposition of charge
subsections (1) – (2) unchanged
2A Where tax is charged by virtue of Schedule A1 on the value transferred by a chargeable transfer, the reference in subsection (1)(a) to property to the value of which the value transferred is wholly or partly attributable includes the ~~UK residential property interest~~relevant UK property (within the meaning of that Schedule) to which the charge relates.
subsections (3) – (4) unchanged
Section 2391 insertion
239 Certificates of discharge
subsections (1) – (4) unchanged
4A If—(a) the personal representatives of a deceased person are given a certificate under subsection (2), and (b) further property is afterwards shown to have been included in the estate of the deceased immediately before their death by virtue of section 150A(1) (notional pension property), then despite subsection (4)(b) the personal representatives are not liable for any tax attributable to that further property, to the extent that the further property is notional pension property.
subsection (5) unchanged
Section 239(4)1 change
239 Certificates of discharge
subsections (1) – (3) unchanged
4 A certificate under this section shall not discharge any person from tax in case of fraud or failure to disclose material facts and shall not affect any further tax—
(a) that may afterwards be shown to be payable by virtue of section 93, 142, 143, 144 or 145 above,
(aa) that may afterwards be shown to be payable by reason of too great an increase having been made under section 8A(3) ~~above~~or 124E(5), or
(b) that may be payable if any further property is afterwards shown to have been included in the estate of a deceased person immediately before his death;
Section 267ZD(8)1 change
267ZD Further provision about elections under section 267ZC
subsections (1) – (7) unchanged
8 If a person who made ~~a lifetime election~~an election under section 267ZC is, for a period of 10 successive tax years beginning after the date on which the election is made, not resident in the United Kingdom, the election ceases to have effect at the end of that period.
subsection (9) unchanged
Section 2722 changes, 1 insertion
272 General interpretation
1 In this Act, except where the context otherwise requires,—
…
"quoted", in relation to any shares or securities, means listed on a recognised stock exchange ~~or dealt in on the Unlisted Securities Market~~; and "unquoted", in relation to any shares or securities, means ~~neither so listed nor so dealt in~~not so listed;
…
"recognised stock exchange" has the meaning it has in the Income Tax Acts (see subsection (1) of section 1005 of the Income Tax Act 2007), and subsection (3) of that section (meaning of "listed" on a recognised stock exchange) applies for the purposes of this Act as it applies for the purposes of the Income Tax Acts;
…
Section 2721 insertion
272 General interpretation
1 In the definition of "member", after "scheme," insert "a qualifying non-UK pension scheme or a section 615(3) scheme,"
remainder of section unchanged
Section 2724 insertions
272 General interpretation
1 At the appropriate places insert new definitions: "excluded benefit", in relation to a pension scheme, has the meaning given by section 150A(6); "exempt benefit", in relation to a pension scheme and a deceased member of the scheme, has the meaning given by section 210(7); "notional pension property", in relation to a member of a pension scheme and a pension scheme, means property to which the member is treated under section 150A(1) as having been beneficially entitled immediately before their death by reference to the arrangements under the scheme; "qualifying non-UK pension scheme" has the same meaning as in section 271A of the Finance Act 2004.
Schedule A12 insertions
Schedule A1 — new definitions before paragraph 8
paragraphs 1 – 6 unchanged or separately amended
7A In this Schedule "relevant UK property" means—
(a) UK agricultural property, or
(b) a UK residential property interest.
7B (1) In this Schedule "UK agricultural property" means agricultural land or pasture in the United Kingdom and includes—
(a) woodland and any building used in connection with the intensive rearing of livestock or fish if the woodland or building is occupied with agricultural land or pasture and the occupation is ancillary to that of the agricultural land or pasture, and
(b) cottages, farm buildings and farmhouses, together with the land occupied with them.
(2) For the purposes of sub-paragraph (1), the breeding and rearing of horses on a stud farm and the grazing of horses in connection with those activities shall be taken to be agriculture and any buildings used in connection with those activities to be farm buildings.
Schedule A1 ¶ 22 changes
Schedule A1 — paragraph 2
In sub-paragraph (2)(a) and (b) and sub-paragraph (5), for ~~"a UK residential property interest"~~"relevant UK property".
In paragraph 4, sub-paragraph (1)(a)(i) and sub-paragraph (3) (in both places), for ~~"a UK residential property interest"~~"relevant UK property".
Schedule A1 ¶ 42 changes
Schedule A1 — paragraph 4
In sub-paragraphs (4) and (5), for ~~"UK residential property interest"~~"relevant UK property".
Schedule A1 Part 11 insertion
Schedule A1 — Overseas property with value attributable to UK residential property
Part 1 heading amended to read: "Overseas property with value attributable to UK residential property or UK agricultural property"

Finance Act 1986

7 amendments · open Act

Section 6(1)1 deletion
6 Customs and Excise and Value Added Tax
1 The Betting and Gaming Duties Act 1981 (in this section referred to as "the 1981 Act") shall have effect subject to the amendments in Part I of Schedule 4 to this Act, being amendments designed to extend to Northern Ireland—
a the provisions of the 1981 Act relating to general betting duty and pool betting duty (in place of the provisions of Part III of the Miscellaneous Transferred Excise Duties Act (Northern Ireland) 1972);
b the provisions of the 1981 Act relating to bingo duty; and
c the provisions of the 1981 Act relating to gaming machine licence duty.
subsections (2) – (5) unchanged
Section 6(3)1 deletion
6 Customs and Excise and Value Added Tax
subsections (1) – (2) unchanged
3 Schedule 4 to this Act,—
a so far as it relates to general betting duty or pool betting duty, shall come into force on the betting commencement date, but shall not have effect in relation to duty in respect of bets made before that date;
b so far as it relates to bingo duty, shall come into force on the bingo commencement date, but shall not impose any charge to duty in respect of bingo played in Northern Ireland before that date; and
c so far as it relates to gaming machine licence duty, shall come into force on the day when Parts I and II of Schedule 4 so far as relating to that duty are brought into force by an order under subsection (5) below.
subsections (4) – (5) unchanged
Section 6(5)1 deletion
6 Customs and Excise and Value Added Tax
subsections (1) – (4) unchanged
5 In this section and Schedule 4 to this Act—"the betting commencement date" means 29th September 1986 or, if later, the day appointed for the coming into operation of Part II (betting) of the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985; and~~"the bingo commencement date" means 29th September 1986 or, if later, the day appointed for the coming into operation of Chapter II (bingo) of that Order.~~
Section 89C1 insertion
89C Section 87: UK listing relief
1 Section 87 does not apply as regards an agreement to transfer chargeable securities in a listed company— (a) that was first listed after the beginning of the period of 3 years ending with the relevant day, and (b) whose shares are admitted to trading on a UK regulated market, if none of the following exclusions apply.
subsections (2) – (8) inserted in full
Section 102(7A)1 change
102 Gifts with reservation
subsections (1) – (7) unchanged
7A This section does not apply if—
(a) the disposal of property by way of gift took place before 30 October 2024,
(b) the property became settled property by virtue of the disposal and remained settled property at all times after the disposal and before the relevant time,
(c) immediately before 30 October 2024, the property was excluded property for the purposes of the 1984 Act by virtue of section 48(3) or (3A) (as it had effect at that time), and
(d) immediately before the relevant time, the property—
(i) was situated outside the United Kingdom and was not property to which paragraph 2 or 3 of Schedule A1 to the 1984 Act applied (overseas property with value attributable to UK residential property or UK agricultural property), or
(ii) was a holding in an authorised unit trust or a share in an open-ended investment company (within the meaning, in either case, of the 1984 Act).
Schedule 20 ¶ 81 change
Schedule 20 — Gifts with reservation
paragraphs 1 – 7 unchanged
8
sub-paragraphs (1) – (1) unchanged in part
In sub-paragraph (1A)(a), for ~~"paragraph (b), (bb) or"~~"any of paragraphs (aa) to"
Schedule 4 ¶ 161 deletion
Schedule 4 — Betting and Gaming Duties Act 1981: Extension to Northern Ireland
paragraph 16(1) unchanged
2 Any orders or regulations made under Schedule 3 (bingo duty) to that Act, in so far as they have effect immediately before the bingo commencement date, shall have effect on and after that date in relation to Northern Ireland as if—
a that Act extended to Northern Ireland at the time when the orders or regulations were made, and
b the orders or regulations were made in relation to Northern Ireland as well as Great Britain.

Finance Act 1969

1 amendment · open Act

Section 32 deletions
3 Bingo duty
1 A duty of excise, to be known as bingo duty, shall be charged on the playing of bingo for prizes in Great Britain.
subsections (2) – (8) omitted (bingo duty charging and administrative provisions)
Schedule 9 (Provisions Relating to Bingo Duty) omitted in full

Finance Act 1982

2 amendments · open Act

Section 8(1)1 deletion
8 Customs and Excise
1 Schedule 6 to this Act shall have effect for the purposes of—
a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b increasing gaming licence duty;
c amending the law relating to bingo duty; and
d increasing, and otherwise amending the law relating to, gaming machine licence duty.
subsections (2) – (3) unchanged
Schedule 61 deletion
Schedule 6 — Betting, Gaming and Lotteries
Parts I – III (general betting duty, gaming licence duty, gaming machine licence duty) unchanged
Part IV — Bingo Duty
Part IV omitted in full (amendments to bingo duty provisions of BGDA 1981)

Finance Act 1983

1 amendment · open Act

Section 51 deletion
5 Customs and Excise
1 In paragraph 2 of Schedule 3 to the Betting and Gaming Duties Act 1981 (exemption limits for small-scale bingo) after sub-paragraph (1) there shall be inserted the following sub-paragraph—
1A Where the total value of the card money taken in the bingo in question played at any premises exceeds during, or on any day in, a relevant week the total value of the prizes won in that bingo during that week or on that day, the bingo shall not be exempt from duty under paragraph 2 above by reason only of those sub-paragraphs.
subsections (2) – (4) unchanged

Finance (No. 2) Act 1992

1 amendment · open Act

Section 71 deletion
7 Customs and Excise, Value Added Tax and Car Tax
1 Schedule 3 to the Betting and Gaming Duties Act 1981 shall be amended as follows.
2 In paragraph 2 the following shall be substituted for sub-paragraph (1)(a) (exemption from bingo duty for clubs etc. where prizes do not exceed certain limits)—a person's eligibility to participate in that bingo depends upon his being a member of a particular society or his being a guest of such a member.
3 In paragraph 12(1) (promoter of bingo other than bingo exempt from duty by virtue of paragraph 1, 5 or 6 to keep accounts etc.) for "paragraph 1, 5 or 6 above" there shall be substituted "Part I of this Schedule".
4 This section shall apply as regards bingo played in any week beginning on or after 3rd August 1992.

Finance Act 1994

11 amendments · open Act

Section 12(2)(c)1 deletion
12 Assessments to excise duty
subsections (1) – (1A) unchanged
2 The defaults falling within this subsection are—
a any failure by any person to make, keep, preserve or produce as required or directed by or under any enactment any returns, accounts, books, records or other documents;
b any omission from or inaccuracy in any returns, accounts, books, records or other documents which any person is required or directed by or under any enactment to make, keep, preserve or produce;
c any failure by any person to take or permit to be taken any step which he is required under ~~Schedule 3 to the Betting and Gaming Duties Act 1981 or~~ Schedule 1 to the Finance Act 1997 or Part 1 of Schedule 24 to the Finance Act 2012 or Part 3 of the Finance Act 2014 to take or to permit to be taken;
subsections (3) – (4) unchanged
Section 13A(2)1 insertion
13A Review of certain decisions
subsection (1) unchanged
2 In this section "relevant decision" means—
paragraphs (a)–(gc) unchanged
gd any decision by HMRC that a person is liable to a penalty, or as the amount of the person's liability, under—
(i) section 125 of FA 2026;
(ii) section 126(1) of FA 2026;
paragraphs (h)–(j) unchanged
subsections (3)–(9) unchanged
Section 16(9)1 insertion
16 Appeals
subsections (1)–(8) unchanged
9 References in this section to a decision as to an ancillary matter do not include decisions of the following descriptions—
paragraph (a) unchanged
b paragraph 4(3);
ba paragraph 5B;
any further entries unchanged
Section 16A(2)1 insertion
16A Review of approval decisions
subsection (1) unchanged
2 In this section "approval decision" means a decision whether a person or place is to be, or is to continue to be, approved—
paragraphs (a)–(g) unchanged
h approved under section 122 of FA 2026 (approved stamp holders);
subsections (3) onwards unchanged
Section 30(1B)2 changes
30 Air passenger duty: rates
subsection (1) – (1A) unchanged
1B If the passenger's journey ends at a place in the United Kingdom— (a) if standard class travel, the rate is £8£8.26, and (b) in any other case, the rate is ~~£16~~£16.52.
subsections (2) – (4E) unchanged
Section 30(2)2 changes
30 Air passenger duty: rates
subsections (1) – (1B) unchanged
2 Short-haul journeys: (a) standard class, the rate is ~~£15~~£15.49, and (b) any other case, the rate is ~~£32~~£33.04.
subsections (2A) – (4E) unchanged
Section 30(2A)2 changes
30 Air passenger duty: rates
subsections (1) – (2) unchanged
2A Long-haul journeys: (a) standard class, the rate is ~~£102~~£105.33, and (b) any other case, the rate is ~~£244~~£251.95.
subsections (3) – (4E) unchanged
Section 30(4A)2 changes
30 Air passenger duty: rates
subsections (1) – (2A) unchanged
4A Ultra-long haul journeys: (a) standard class, the rate is ~~£106~~£109.46, and (b) any other case, the rate is ~~£253~~£261.25.
subsections (4B) – (12) unchanged
Section 30(4E)4 changes
30 Air passenger duty: rates
subsections (1) – (4A) unchanged
4E Aircraft equipped to carry fewer than 19 passengers: (za) if rate in subsection (1B)(a) or (b) would apply, ~~£142~~£146.63; (a) if rate in subsection (1B)(a) or (b) would apply, ~~£142~~£146.63; (aa) if rate in subsection (2A)(a) or (b) would apply, ~~£1,097~~£1,132.76; (d) if rate in subsection (4A)(a) or (b) would apply, ~~£1,141~~£1,178.20.
subsections (4F) – (12) unchanged
Schedule 51 insertion
Schedule 5 Decisions subject to review and appeal
paragraphs 1–5A unchanged
5B Part 4 of FA 2026 (vaping products duty)
Any decision as to whether or not any person is to be, or continues to be, approved under section 122 of FA 2026.
Schedule 7A ¶ 31 change
Schedule 7A — Insurance premium tax: contracts that are not taxable
paragraphs 1 – 2 unchanged
3
Contracts relating to ~~handicapped persons' motor vehicles~~motor vehicles let on relevant benefit terms (italic heading)
A contract falls within this paragraph if it relates only to a motor vehicle and the conditions mentioned in sub-paragraph (2) below are satisfied. The conditions referred to in sub-paragraph (1) above are that— (a) the vehicle is used, or intended for use, by a handicapped person in receipt of a disability living allowance or personal independence payment, by virtue of entitlement to the mobility component of the allowance or payment; (b) the letting on hire of the vehicle falls within item 2A of Group 12 in Schedule 8 to VATA 1994 (zero-rated supply); (c) the consideration for the letting of the vehicle consists wholly or partly of sums paid to the insured by the Department for Work and Pensions or the Department for Social Development in Northern Ireland.A contract falls within this paragraph if it relates only to a motor vehicle and— (a) the vehicle is let on hire on relevant benefit terms to a person, and (b) the supply of the vehicle to that person is zero-rated for the purposes of the Value Added Tax Act 1994 as a result of it being a supply falling within paragraph (f) in item 2 in Group 12 in Schedule 8 to that Act, or item 2A in that Group.
paragraphs 4 – end unchanged

Value Added Tax Act 1994

9 amendments · open Act

Section 23A1 insertion
23A Meaning of "relevant machine game"
subsections (1) – (2) unchanged (as amended by paragraph 7(a))
3 In this section—
"bingo" includes any version of that game, whatever name it is called;
"unlicensed bingo"—
a in Great Britain, means bingo which is not played at premises licensed under a bingo premises licence (within the meaning of Part 8 of the Gambling Act 2005), and
b in Northern Ireland, means bingo played at premises licensed under Chapter 2 of Part 3 of the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985.
existing subsection (3) (definitions of "game", "machine", "prize", "real game of chance") unchanged
subsection (4) unchanged
Section 23A(2)1 change
23A Meaning of "relevant machine game"
1 A "relevant machine game" is a game (whether of skill or chance or both) that—
a is played on a machine for a prize, and
b is not excluded by subsection (2).
2 A game is excluded by this subsection if—
a takings and payouts in respect of it are taken into account in determining any charge to machine games duty,
b it involves betting on future real events,
c ~~it is a game of bingo in the United Kingdom, or~~it is a game of bingo in the United Kingdom, other than a game of unlicensed bingo where every person playing the game participates by use of—
(i) the internet,
(ii) telephone,
(iii) television,
(iv) radio, or
(v) any other kind of electronic or other technology for facilitating communication,
subsection (3) (existing definitions) unchanged
Section 33(3)(a)1 change
33 Refunds of VAT in certain cases
subsections (1) – (2) unchanged
3 The bodies to which this section applies are—
a a local authority ~~and a combined authority established by an order made under section 103(1) of the Local Democracy, Economic Development and Construction Act 2009~~, a combined authority established by an order made under section 103(1) of the Local Democracy, Economic Development and Construction Act 2009 and a combined county authority established by regulations made under section 9(1) of the Levelling-up and Regeneration Act 2023;
paragraphs (aa) – (k) unchanged
subsections (4) – (6) unchanged
Section 531 insertion
53 Tour operators.
subsections (1) – (3) unchanged
3A But a person is not a tour operator if and so far as their business consists of making supplies of services consisting of the transport of passengers by private hire vehicle or taxi, unless those supplies are made in conjunction with, and are ancillary to, the making of supplies by the person consisting of—(a) the provision of accommodation, or (b) the transport of passengers by bus, coach, train, ship or aircraft.
subsection (4) unchanged
Schedule 41 insertion
Schedule 4 — Matters treated as supply of goods or services
paragraph 5 unchanged
5A In paragraph 5 "qualifying charitable donation" means (subject to sub-paragraphs (6) and (7)) a donation of an item to a charity where— (a) the item's value does not exceed the applicable limit, and (b) the item has not previously been used by the donor.
paragraphs 6 – end unchanged
Schedule 4 ¶ 52 insertions
Schedule 4 — Matters treated as supply of goods or services, paragraph 5
sub-paragraph (1) unchanged
2 Sub-paragraph (1) above does not apply where the transfer or disposal is— (a) a business gift …, (b) the provision to a person, otherwise than for a consideration, of a sample of goods, (c) a qualifying charitable donation.
2ZA In sub-paragraph (2) above— "business gift" means …; "cost", in relation to a gift …; "qualifying charitable donation" has the meaning given in paragraph 5A;
sub-paragraphs (2A) – (5) unchanged
Schedule 61 insertion
Schedule 6 — Valuation: special cases
paragraphs 1 – 11A unchanged
11B This paragraph applies for the purposes of determining the value of a supply consisting of the letting on hire of a motor vehicle on relevant benefit terms.
Schedule 81 deletion
Schedule 8 — Zero-rating
Groups 1 – 11 unchanged
Group 12 Drugs, medicines, aids for the disabled, etc
Items 1 – 13 unchanged
Item 14 The letting on hire of a motor vehicle to a handicapped person who is—(a) eligible for the zero-rating provided for in item 2A of Group 12, or (b) in receipt of a relevant disability benefit (within the meaning of Note 5 to Group 12),under an agreement for hire of a vehicle on terms meeting the conditions in Note (14) to this Group.
Items 15 – 16 unchanged
Schedule 81 insertion
Schedule 8 — Zero-rating, Group 12
Items 1 – 14 omitted or unchanged
Item 15 The sale of a motor vehicle that had been let on hire on relevant benefit terms, where such sale constitutes the first supply of the vehicle after the end of the period of such letting.
remaining items unchanged

Finance Act 1997

4 amendments · open Act

Section 10(3AA)1 insertion
10 Gaming duty
subsections (1) – (3AA) unchanged (as amended by paragraph 8(a)(i))
3AB This section does not apply to the playing of bingo.
subsections (3B) – (6) unchanged
Section 10(3AA)(a)1 deletion
10 Gaming duty
subsections (1) – (3) unchanged
3AA This section does not apply to the playing of a game in respect of which—
a ~~bingo duty or~~ lottery duty is chargeable, or would be chargeable but for an express exception, or
b machine games duty is chargeable.
subsections (3B) – (6) unchanged
Section 10(6)1 insertion
10 Gaming duty
subsections (1) – (6) unchanged
7 In this section, "bingo" includes any version of that game, whatever name it is called.
Schedule 1 ¶ 161 change
Schedule 1 — Administration and enforcement of gaming duty
paragraphs 1 – 15 unchanged
16 Where an officer of Customs and Excise takes any action in pursuance of instructions of the Commissioners of Customs and Excise in connection with the enforcement of the enactments relating to gaming duty or bingo duty and, apart from this paragraph, the officer would in taking that action be committing an offence under the enactments relating to betting or gaming, the officer shall not be guilty of that offence.Where an officer of Revenue and Customs takes any action in pursuance of instructions of the Commissioners for His Majesty's Revenue and Customs in connection with the enforcement of the enactments relating to gaming duty and, apart from this paragraph, the officer would in taking that action be committing an offence under the enactments relating to betting or gaming, the officer is not be guilty of that offence.
paragraphs 17 onwards unchanged

Finance Act 2003

1 amendment · open Act

Section 91 deletion
9 Bingo duty
1 For sections 17 to 20 of the Betting and Gaming Duties Act 1981 (bingo duty) substitute—[sections 17–20C inserted]
subsections (2) – (9) omitted (further bingo duty provisions and commencement)

Finance Act 2006

1 amendment · open Act

Section 11(3)1 deletion
11 Excise duties
1 For section 25(1) to (1B) of the Betting and Gaming Duties Act 1981 (amusement machine licence duty: definition of "amusement machine") substitute— [substituted text defining gaming and prize machines]
2 In section 25(1C) of the Betting and Gaming Duties Act 1981 ("prize machine") for "an amusement machine is a prize machine" substitute "a machine is a prize machine".
3 In Schedule 3 to the Betting and Gaming Duties Act 1981 (bingo duty) omit paragraph 6 (machine bingo).
4 Subsections (1) and (2) shall have effect in relation to the provision of a machine on or after 1st August 2006.

Finance Act 2007

6 amendments · open Act

Schedule 1 ¶ 41 deletion
Schedule 1 — Betting and Gaming Duties Act 1981: remote gaming duty
paragraphs 1 – 3 unchanged
4 In section 31 of that Act (protection of officers), after "bingo duty" insert ", remote gaming duty".
paragraphs 5 onwards unchanged
Schedule 24 ¶ 11 insertion
Schedule 24 Penalties for errors
paragraph 1 table (preceding entries) unchanged
1 Table — relevant documents (extract, showing insertion after tobacco products duty entry):
Tobacco products duty Tobacco products duty return.
Vaping products duty Vaping products duty return.
Schedule 24 ¶ 11 insertion
Schedule 24 — Penalties for errors
paragraph 1 — Table: entries up to and including climate change levy unchanged
Tax or duty Document
Carbon border adjustment mechanism Return under paragraph 7 of Schedule 17 to FA 2026
remaining entries unchanged
Schedule 24 ¶ 13 changes
Schedule 24 — paragraph 1(4) (Table), betting/gaming duty entries
General betting duty — Return under regulations under ~~paragraph 2 of Schedule 1 to BGDA 1981~~section 166 of FA 2014
Pool betting duty — Return under regulations under ~~paragraph 2A of Schedule 1 to BGDA 1981~~section 166 of FA 2014
Remote gaming duty — Return under regulations under ~~section 26K of BGDA 1981~~section 166 of FA 2014
Schedule 24 ¶ 13 11 change
Schedule 24 — Penalties for errors
paragraphs 1 – 12 unchanged
13
sub-paragraph heading: Assessment of penalty
1Where a person becomes liable for a penalty under paragraph 1, 1A or 2 HMRC ~~shall~~may (in its application to CBAM)—
aassess the penalty,
bnotify the person, and
cstate in the notice a tax period in respect of which the penalty is assessed.
Schedule 25 ¶ 91 deletion
Schedule 25 — Amendments
paragraphs 1 – 8 unchanged
9 Section 20C(2) (definitions for purposes of Part 2) is amended as follows. After the definition of "bingo" insert— "bingo premises licence" has the same meaning as in Part 8 of the Gambling Act 2005 (see section 150(1)(b)). For the definition of "licensed bingo" substitute—"licensed bingo"—in Great Britain, means bingo played at premises licensed under a bingo premises licence, and in Northern Ireland, means bingo played at premises licensed under Chapter 2 of Part 3 of the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985.
paragraphs 10 onwards unchanged

Tax or duty	Document
Carbon border adjustment mechanism	Return under paragraph 7 of Schedule 17 to FA 2026

Borders, Citizenship and Immigration Act 2009

1 amendment · open Act

Section 7(2)(e)1 deletion
7 Border functions
subsection (1) unchanged
2 For the purposes of this Part, each of the following is a "customs revenue matter"—
a . . .
b anti-dumping duty (within the meaning it has in Union customs legislation);
c countervailing duty (within the meaning it has in Union customs legislation);
d customs duties;
e duties of excise other than—
i . . .
ii bingo duty,
iii gaming duty,
iv general betting duty,
v lottery duty,
vi pool betting duty, . . .
subsections (3) – (4) unchanged

Finance Act 2014

15 amendments · open Act

Section 1222 deletions
122 Rate of bingo duty
1 In section 17(1)(b) of BGDA 1981 (bingo duty chargeable at 20 per cent of bingo promotion profits), for "20" substitute "10".
2 The amendment made by subsection (1) has effect in relation to accounting periods beginning on or after 30 June 2014.
123 Exemption from bingo duty: small-scale amusements provided commercially
1 In paragraph 5(1) of Schedule 3 to BGDA 1981 (exemptions from bingo duty for small-scale amusements provided commercially), for paragraph (b) substitute— [substituted text extending the exemption]
2 The amendment made by this section has effect in relation to games of bingo which begin to be played on or after the day on which this Act is passed.
Section 126(1)1 insertion
126 Meaning of "general bet"
1 A bet is a general bet for the purposes of this Part if— (a) it is not an on-course bet, (aa) it is not a remote bet, (b) it is not a spread bet, (c) it is not made by way of pool betting, and (d) one or more of conditions A to C is met in relation to it.
subsections (2) – (4) unchanged
Section 127A1 insertion
127A General betting duty charge on remote bets
1 General betting duty is charged on a remote bet made with a bookmaker.
2 It is charged at the rate of 25% of the bookmaker's profits on remote bets for an accounting period.
subsections (3) – (9) inserted in full
Section 154(4)1 deletion
154 Remote gaming
subsections (1) – (3) unchanged
4 The Treasury may by regulations—
a amend the definition of "remote gaming" in subsection (1),
b make such consequential amendments of section 17(2A) of BGDA 1981 (cases in which bingo duty is not charged on bingo played by means of remote communication) as appear to the Treasury to be necessary.
5 Nothing in subsection (4)(b) affects the generality of section 194(1).
Section 155(3)1 change
155 Remote gaming duty
subsections (1) – (2) unchanged
3 Remote gaming duty is chargeable at the rate of ~~21%~~40% of the gaming provider's profits on remote gaming for an accounting period.
subsections (4) – (5) unchanged
Section 161(3)1 deletion
161 Exemptions from remote gaming duty
subsections (1) – (2) unchanged
3 Subsection (2)(b)—
a does not prevent remote gaming duty being charged where the remote gaming in question is the playing of bingo which is not licensed bingo (as to the meaning of which terms see section 20C of BGDA 1981), and
b does not apply in cases where the other gambling tax is machine games duty.
subsections (4) – (6) unchanged
Section 161(4)1 deletion
161 Exemptions from remote gaming duty
subsections (1) – (3) unchanged (as amended by paragraph 17(c)(i))
4 In this section "gambling tax" means—
a machine games duty,
b bingo duty,
c gaming duty,
d general betting duty,
e lottery duty, and
f pool betting duty.
subsections (5) – (6) unchanged
Section 161(4)2 insertions
161 Exemptions from remote gaming duty
subsections (1) – (4) unchanged (as amended by paragraphs 17(c)(i) and 17(c)(ii))
4A Remote gaming duty is not charged on a chargeable person's participation in remote gaming where the remote gaming in question is the playing in the United Kingdom of a game of—
a licensed bingo, or
b unlicensed bingo, if at least one other person's participation in the game does not constitute remote gaming.
4B In subsection (4A)—
"bingo" includes any version of that game, whatever name it is called;
"licensed bingo"—
a in Great Britain, means bingo played at premises licensed under a bingo premises licence (within the meaning of Part 8 of the Gambling Act 2005), and
b in Northern Ireland, means bingo played at premises licensed under Chapter 2 of Part 3 of the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985;
"United Kingdom" includes the territorial sea of the United Kingdom;
"unlicensed bingo" means bingo which is not licensed bingo.
subsections (5) – (6) unchanged
Section 272A1 deletion
272A Information powers: promoters of tax avoidance schemes
1 Schedule 36 to FA 2008 (information and inspection powers) applies for a relevant purpose in relation to a relevant person as it applies for the purpose of checking the tax position of a person as if—
a any provisions which can have no application for that purpose were omitted (for example, paragraphs 10A, 11, 12A and 12B);
b references to "the taxpayer" were to "the relevant person";
c references to prejudice to the assessment or collection of tax included prejudice to the fulfilment of a relevant purpose;
d references to "business documents" included any documents (or copies of documents) in connection with any relevant arrangements or relevant proposal;
e references to a pending appeal relating to tax were to a pending appeal by the relevant person under this Part;
f in paragraph 13, after "paragraph 39" there were inserted "of this Schedule and paragraph 2(3A) of Schedule 35 to FA 2014";
g paragraphs 21 to 21B were omitted;
h paragraph 25 were omitted;
i in paragraph 29(1) for "a taxpayer", in the first place it occurs, there were substituted "a relevant person";
j Part 7 (penalties) were omitted (but see Schedule 35 of this Act).
2 A person is "relevant" if—
a the officer suspects that the person carries on, or has in the past carried on, a business as a promoter in relation to a relevant proposal or relevant arrangements and—
i the officer suspects that the person has met a threshold condition,
ii the officer suspects the person could be given a defeat notice, or
iii the officer suspects the person promotes, or has promoted, arrangements, or proposals for such arrangements, of a description that the officer suspects could be specified in a stop notice,
b the officer suspects that—
i the person made a relevant transfer, or
ii the person is a person to whom a relevant transfer was made, or
c the person is, or was, subject to a stop notice, conduct notice or monitoring notice.
3 The following are "relevant purposes" in relation to a relevant person—
a determining whether the relevant person carries on or has in the past carried on a business as a promoter in relation to a relevant proposal or relevant arrangements;
b determining whether the relevant person has met a threshold condition;
c determining whether the relevant person could be given a defeat notice;
d determining whether the person has provided false or misleading information or documents in relation to a stop notice, conduct notice or monitoring notice;
e determining whether arrangements, or proposals for such arrangements, that an officer suspects are promoted by the relevant person are of a description that could be specified in a stop notice;
f enabling HMRC to understand the operation of arrangements, or proposals for such arrangements, that an officer suspects are promoted by the relevant person;
g identifying any other person who has a connection with the relevant person that results (whether solely because of that connection or otherwise) in the relevant person being a member of a promotion structure;
h determining whether the relevant person made a relevant transfer, and if so to whom;
i determining whether a relevant transfer was made to the relevant person, and if so by whom;
j monitoring compliance with any stop notice, conduct notice or monitoring notice the relevant person is subject to.
4 In this section—
a reference to compliance with a stop notice, conduct notice or monitoring notice includes compliance with any provisions of this Part that a person subject to such a notice must comply with;
b reference to a person "promoting" is to be construed in accordance with section 236A(7);
c "relevant transfer" has the meaning it has in paragraph 5 of Schedule 33A (promotion structures).
Schedule 28 ¶ 201 deletion
Schedule 28 — Remote gaming duty: administration and enforcement
paragraph 20 sub-paragraphs (1) – (2) unchanged
3 In this paragraph "gaming provider" has the same meaning as in Part 3 of this Act and "bingo" has the same meaning as in section 20C of BGDA 1981.
Schedule 34 ¶ 41 insertion
Schedule 34 — Promoters of tax avoidance schemes: threshold conditions
italic heading: Dishonest tax agents — substituted
4Dishonest tax agents
A person meets this condition if—
a a conduct notice has been given to the person, and
b either—
i the time period during which a notice of appeal may be given against the determination has expired, or
ii an appeal against the determination has been made and the tribunal has confirmed the decision.
4Tax advisers
A person meets this condition if the person is given a notification of a penalty under paragraph 26 of Schedule 38 to FA 2012 (tax advisers: sanctionable conduct) and either—
a the time period during which a notice of appeal may be given in relation to the penalty has expired, or
b an appeal against the penalty has been made and the tribunal has confirmed the decision that a penalty is payable under that paragraph (whether or not the amount of the penalty is varied).
Schedule 34 ¶ 5 3 a1 change
Schedule 34 — paragraph 5 — Non-compliance with avoidance disclosure requirements
sub-paragraphs A1 – 2 unchanged
3 Condition A is met if—
a ~~the tribunal~~an authorised officer has determined that P has failed to comply with the provision concerned,
b the appeal period has ended, and
c the determination has not been overturned on appeal.
sub-paragraphs (4) – (6) unchanged
Schedule 34 ¶ 5 4 a1 insertion
Schedule 34 — paragraph 5 — Non-compliance with avoidance disclosure requirements
sub-paragraphs A1 – 3 unchanged
4 Condition B is met if—
a on appeal, the tribunal has determined for the purposes of section 315D(1) of FA 2004 or paragraph 48 of Schedule 17 to F(No.2)A 2017 that P is to be deemed not to have failed to comply with the provision concerned as P had a reasonable excuse for the failure,
b the appeal period has ended, and
c the determination has not been overturned on appeal.
sub-paragraphs (5) – (6) unchanged
Schedule 34 ¶ 5 4 a1 change
Schedule 34 — paragraph 5 — Non-compliance with avoidance disclosure requirements
sub-paragraphs A1 – 3 unchanged
4 Condition B is met if—
a on appeal, the tribunal has determined for the purposes of ~~section 118(2) of TMA 1970~~section 315D(1) of FA 2004 or paragraph 48 of Schedule 17 to F(No.2)A 2017 that P is to be deemed not to have failed to comply with the provision concerned as P had a reasonable excuse for the failure,
sub-paragraphs (b)–(c) and (5)–(6) unchanged
Schedule 34 ¶ 5 61 change
Schedule 34 — paragraph 5 — Non-compliance with avoidance disclosure requirements
sub-paragraphs A1 – 5 unchanged
6 For the purposes of this paragraph—
"appeal period" means—
(a) the period during which an appeal could be brought against the determination of an authorised officer or the tribunal, as applicable, or
(b) where an appeal mentioned in paragraph (a) has been brought, the period during which the appeal has not been finally determined, withdrawn or otherwise disposed of;
"relevant failure" has the meaning given by sub-paragraph (2).

Finance Act 2016

2 amendments · open Act

Schedule 18 ¶ 4 21 deletion
Schedule 18 — Serial tax avoidance
paragraph 4(1) unchanged
2 In this Schedule "tax" includes any of the following taxes—income tax, corporation tax, capital gains tax, petroleum revenue tax, diverted profits tax, apprenticeship levy, inheritance tax, stamp duty land tax, ~~bingo duty,~~ gaming duty, general betting duty, pool betting duty, lottery duty, remote gaming duty, machine games duty, insurance premium tax, air passenger duty, hydrocarbon oils duty, tobacco products duty, alcohol duties, soft drinks industry levy, aggregates levy, landfill tax, plastic packaging tax, climate change levy, customs duties.
Schedule 18 ¶ 4 21 insertion
Schedule 18 — Serial tax avoidance
paragraph 4(1) unchanged
2 For the purposes of this Schedule “indirect tax” means any of the following—
a insurance premium tax
b general betting duty
c pool betting duty
paragraphs (d) – (m) unchanged
n climate change levy
na carbon border adjustment mechanism
paragraph (o) (customs duties) unchanged

Finance (No. 2) Act 2017

7 amendments · open Act

Section 611 change, 3 deletions
61 Commencement
1 Section 60 and Schedule 14 come into force on such day as the Commissioners for His Majesty's Revenue and Customs may by regulations made by statutory instrument appoint.
2 The Treasury may by regulations made by statutory instrument make transitional, transitory or saving provision in connection with the coming into force of section 60 ~~or Schedule 14~~.
subsections (3) – (5) unchanged
6 Subsection ~~(1)~~(2) is subject to subsections (3) to (5) ~~and Schedule 14~~.
Schedule 17 ¶ 2 11 deletion
Schedule 17 — Penalty for enablers of defeated tax avoidance
2 1 "Indirect tax" means any of the following—VAT; insurance premium tax; general betting duty; pool betting duty; remote gaming duty; machine games duty; gaming duty; lottery duty; ~~bingo duty;~~ air passenger duty; hydrocarbon oils duty; tobacco products duty; duties on spirits, beer, wine, made-wine and cider; soft drinks industry levy; aggregates levy; landfill tax; plastic packaging tax; climate change levy; customs duties.
Schedule 17 ¶ 2 11 insertion
Schedule 17 Disclosure of tax avoidance schemes: indirect taxes
paragraph 2(1) preceding entries unchanged
2 In this Schedule "indirect tax" means any of the following—
…
duties on spirits, beer, wine, made-wine and cider;
vaping products duty;
…
Schedule 17 ¶ 2 11 insertion
Schedule 17 — Disclosure of tax avoidance schemes: VAT and other indirect taxes
paragraph 2 heading and introductory text unchanged
1 “Indirect tax” means any of the following—
a VAT
b insurance premium tax
c general betting duty
paragraphs (d) – (n) unchanged
o climate change levy
p carbon border adjustment mechanism
q customs duties.
paragraph 2(2) unchanged
Schedule 17 ¶ 361 deletion
Schedule 17 — Disclosure of tax avoidance schemes: VAT and other indirect taxes
paragraphs 1 – 35 unchanged; paragraph 36 sub-paragraphs (1) – (4) unchanged
4A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
sub-paragraphs (5) onwards unchanged
Schedule 17 ¶ 361 insertion
Schedule 17 — paragraph 36 — Publication by HMRC
sub-paragraphs (1) – (5) unchanged
6 Before publishing any information under this paragraph that identifies a person, HMRC must—
a inform the person that they are considering doing so, and
b give the person reasonable opportunity to—
i make representations about whether it should be published, and
ii where section 209(2) of FA 2026 applies, provide a declaration made under that subsection substantiating those representations.
Schedule 17 ¶ 362 deletions
Schedule 17 — paragraph 36 — Publication by HMRC
sub-paragraphs (1) – (6) unchanged
7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Finance Act 2024

5 amendments · open Act

Section 32(1)1 deletion
32 Evasion: offences involving dishonesty
section 32 introductory text unchanged
1 Table of offences to which section 32 applies:
entries for hydrocarbon oils duty, aqua methanol duty, marked oil etc. unchanged
Legislation Provision
~~BGDA 1981~~ ~~Paragraph 16(1)(b) of Schedule 3 (fraudulent evasion of bingo duty)~~
remaining table entries (FA 1993, VATA 1994, FA 1994, etc.) unchanged
Schedule 2 ¶ 241 insertion
Schedule 2 — Expenditure credits for films, television programmes and video games
paragraphs 1–24 unchanged
24A Calculation of expenditure credit where company previously benefiting from video games tax relief
1 Sub-paragraph (2) applies if—
a a company makes an election under section 1179B(1) of CTA 2009 in relation to a video game in its company tax return for an accounting period, and
b in an earlier accounting period, the company was entitled to, and claimed, special video games relief (within the meaning of section 1217E(1) of CTA 2009) in respect of that video game.
2 Section 1179CA(1) of CTA 2009 (amount of expenditure credit) has effect as if for Step 2 there were substituted—
Schedule 9 ¶ 134 22 changes
Schedule 9 — Pensions, Part 6 — Commencement and transitional provision etc
paragraph 134(1) unchanged
2 Regulations under this paragraph may—
a amend any provision of the Income Tax Acts (including any provision of, or amendment made by, this Schedule);
b ~~have effect for the tax year 2024-25 (as well as subsequent tax years);~~have effect for the tax years 2024-25 and 2025-26 (as well as subsequent tax years);
c make different provision for different purposes;
d include transitional, transitory or saving provision (including any provision that could be made under paragraph 133).
sub-paragraphs (3) – (5) unchanged (see below)
Schedule 9 ¶ 134 31 deletion
Schedule 9 — Pensions, Part 6 — Commencement and transitional provision etc
sub-paragraphs (1) – (2) unchanged
3 Regulations under this paragraph ~~that increase any person's liability to tax~~ may not be made unless a draft of the statutory instrument containing them has been laid before, and approved by a resolution of, the House of Commons.
sub-paragraphs (4) – (5) unchanged
Schedule 9 ¶ 134 41 change
Schedule 9 — Pensions, Part 6 — Commencement and transitional provision etc
sub-paragraphs (1) – (3) unchanged
4 No regulations under this paragraph may be made after ~~5 April~~30 June 2026.
sub-paragraph (5) unchanged

Legislation	Provision
~~BGDA 1981~~	~~Paragraph 16(1)(b) of Schedule 3 (fraudulent evasion of bingo duty)~~

Finance Act 2001

12 amendments · open Act

Section 16(4)1 change
16 Aggregates levy
subsections (1) – (3) unchanged
4 The levy shall be charged at the rate of ~~£2.08~~£2.16 per tonne of aggregate subjected to commercial exploitation …
subsections (5) – (6) unchanged
Section 17(2)2 insertions
17 Meanings of "aggregate" and "taxable aggregate"
subsection (1) unchanged
2 For the purposes of this Part any quantity of aggregate is, in relation to any occasion on which it is subjected to commercial exploitation, a quantity of taxable aggregate except to the extent that—
a it is exempt under this section;
b it has previously been used for construction purposes (whether before or after the commencement date);
c it is, or derives from, any aggregate that has already been subjected to a charge to aggregates levy;
ca it has on or after the day appointed under section 18(4) of the Scotland Act 2016 (and prior to being moved to England, Wales or Northern Ireland) been removed from a relevant Scottish site to premises in Scotland of a person carrying on a business in Scotland;
cb it has—
i on or after the day appointed under section 18(4) of the Scotland Act 2016 been removed from a site in England, Wales or Northern Ireland that falls within section 19(2) in relation to that quantity of aggregate, and
ii subsequently been moved to premises in Scotland of a person carrying on a business in Scotland, prior to being moved to the place in England, Wales or Northern Ireland where it is subjected to commercial exploitation;
paragraphs (d) onwards unchanged
subsections (3) – (7) unchanged
Section 17(3A)1 insertion
17 Meanings of "aggregate" and "taxable aggregate"
subsections (1) – (3) unchanged
3A In subsection (2)(ca) the reference to premises in Scotland does not include any premises located at a site that is a relevant Scottish site in relation to the quantity of aggregate.
subsections (4) onwards unchanged
Section 17(7)1 insertion
17 Meanings of "aggregate" and "taxable aggregate"
subsections (1) – (6) unchanged
7 In this section—
existing definitions unchanged
"relevant Scottish site", in relation to a quantity of aggregate, means a site in Scotland that falls within section 19(2) in relation to that quantity of aggregate, or would so fall if in section 20(1)(a)—
the reference to England, Wales or Northern Ireland included Scotland, and
the reference to relevant waters included Scottish waters.
Section 19(1)(a)1 insertion
19 Commercial exploitation
1 For the purposes of this Part a quantity of aggregate is subjected to exploitation if, and only if—
a it is removed from a site in England, Wales or Northern Ireland falling within subsection (2) below;
paragraph (aa) and remainder unchanged
subsections (2) onwards unchanged
Section 19(1)(aa)1 insertion
19 Commercial exploitation
1 For the purposes of this Part a quantity of aggregate is subjected to exploitation if, and only if—
a it is removed from a site in England, Wales or Northern Ireland falling within subsection (2) below;
aa it is removed to a place in England, Wales or Northern Ireland from a site in Scotland that falls within subsection (2) below, or would fall within that subsection if in subsection (1)(a) of section 20 (originating sites)—
i the reference to England, Wales or Northern Ireland included Scotland, and
ii the reference to relevant waters were to United Kingdom waters.
subsections (2) onwards unchanged
Section 19(5)1 change, 2 insertions
19 Commercial exploitation
subsections (1) – (4B) unchanged
5 For the purposes of this Part where a quantity of aggregate is subjected to exploitation, the exploitation shall be taken to be in England, Wales or Northern Ireland if, and only if—
a the aggregate is in England, Wales or Northern Ireland or ~~United Kingdom waters~~relevant waters when it is subjected to exploitation, or
b the exploitation falls within subsection (1)(aa).
subsections (5A) onwards unchanged
Section 19(5A)1 insertion
19 Commercial exploitation
subsections (1) – (5) unchanged
5A The Treasury may by regulations made by statutory instrument make further provision with regard to the circumstances in which the subjection of a quantity of aggregate to commercial exploitation is to be taken to occur in England, Wales or Northern Ireland, including provision amending this section or any other provision of this Part.
subsections (6) – (7) unchanged
Section 19(8)1 insertion
19 Commercial exploitation
subsections (1) – (7) unchanged
8 A statutory instrument containing regulations under subsection (5A) may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons.
Section 20(1)(a)1 change
20 Originating sites
1 In this Part references, in relation to any aggregate, to its originating site are references (subject to subsection (2) below)—
a in the case of aggregate which has been won from the seabed of any area of sea in England, Wales or Northern Ireland or ~~United Kingdom waters~~relevant waters . . ., to the site where it is first landed after being so won;
paragraphs (b) – (d) unchanged
subsection (2) unchanged
Section 441 deletion
44 Destination of receipts
section 44 omitted in full
Section 48(1)2 insertions
48 Interpretation of Part
1 In this Part—
existing definitions unchanged (in alphabetical order)
"relevant waters" means—
the territorial sea adjacent to the United Kingdom, other than Scottish waters, or
any area designated by Order in Council under section 1(7) of the Continental Shelf Act 1964;
"Scottish waters" means so much of the territorial sea adjacent to the United Kingdom as is to be treated as adjacent to Scotland for the purposes of the Scotland Act 1998 (see section 126(2) of that Act);
subsections (2) onwards unchanged

Aggregates Levy (General) Regulations 2002

3 amendments · open Act

regulation-13-21 insertion
13 Tax credits
paragraph (1) unchanged
2 Such a person is entitled to a tax credit in respect of any AL accounted for in respect of that commercial exploitation where the taxable aggregate in question—
za is moved without further processing from premises in England, Wales or Northern Ireland operated or used by a person registered under section 24 of the Act for any purpose specified in subsection (6) of that section to a place in Scotland or Scottish waters;
a is exported or removed from the United Kingdom without further processing;
paragraphs (b) – (d) unchanged
paragraphs (3) onwards unchanged
regulation-13-2-a1 insertion
13 Tax credits
paragraph (1) unchanged
2 Such a person is entitled to a tax credit in respect of any AL accounted for in respect of that commercial exploitation where the taxable aggregate in question—
a is exported or removed from the United Kingdom from a place in England, Wales or Northern Ireland without further processing;
paragraphs (b) – (d) and paragraphs (3) onwards unchanged
regulation-15-31 insertion
15 Procedure for making claims for tax credits
paragraphs (1) – (2) unchanged
3 In the case of a claim for a tax credit under regulation 13(2)(a) (export or removal from the United Kingdom from a place in England, Wales or Northern Ireland), a person shall be entitled to make such a claim in accordance with paragraph (1) above despite the fact that he is not in possession of the records required by paragraph (j) of regulation 10 provided that he obtains such records within three months of his making such a claim. If not, he shall make the appropriate adjustment to cancel the tax credit claimed in his next AL return. Any further claim will be subject to paragraphs (1) and (2) above.

Scotland Act 2016

3 amendments · open Act

Schedule 1 ¶ 5 31 change
Schedule 1 — Disapplication of UK aggregates levy
paragraphs 1 – 4 unchanged
5 Section 24 (levy register) is amended as follows.
sub-paragraph (2) unchanged
3 In subsection (6)(e) (registration of premises for landing of aggregate won from seabed) for "the United Kingdom", in ~~both places,~~the first place it occurs, substitute "England, Wales or Northern Ireland".
paragraphs 6 – 7 unchanged
Schedule 1 ¶ 81 deletion
Schedule 1 — Disapplication of UK aggregates levy
paragraphs 1 – 7 unchanged
8 ~~In section 44 of FA 2001, for "the Treasury" substitute "HMRC" and for "a Consolidated Fund" substitute "the Consolidated Fund".~~
paragraph 9 omitted separately
Schedule 1 ¶ 91 deletion
Schedule 1 — Disapplication of UK aggregates levy
paragraphs 1 – 8 unchanged
9 ~~In section 48 of the Finance Act 2001 (interpretation of Part 2), in subsection (1), omit the definition of "United Kingdom waters".~~

Finance Act 2021

25 amendments · open Act

Section 5(1)1 change
5 Basic rate limit and personal allowance for future tax years
1 For the tax years 2022-23, 2023-24, 2024-25, 2025-26, 2026-27 ~~and 2027-28~~, 2027-28, 2028-29, 2029-30 and 2030-31, the amount specified in section 10(5) of ITA 2007 (basic rate limit) is “£37,700”.
subsections (2) – (3) unchanged
Section 5(2)1 change
5 Basic rate limit and personal allowance for future tax years
subsection (1) unchanged
2 For the tax years 2022-23, 2023-24, 2024-25, 2025-26, 2026-27 ~~and 2027-28~~, 2027-28, 2028-29, 2029-30 and 2030-31, the amount specified in section 35(1) of ITA 2007 (personal allowance) is “£12,570”.
subsection (3) unchanged
Section 5(3)1 change
5 Basic rate limit and personal allowance for future tax years
subsections (1) – (2) unchanged
3 Accordingly— (a) section 21 of ITA 2007 (indexation of basic rate limit) does not apply in relation to the basic rate limit, and (b) section 57 of ITA 2007 (indexation of allowances) does not apply in relation to the amount specified in section 35(1) of that Act, for the tax years 2022-23, 2023-24, 2024-25, 2025-26, 2026-27 ~~and 2027-28~~, 2027-28, 2028-29, 2029-30 and 2030-31.
Section 45(1)1 change
45 Plastic packaging tax: charge
1 Plastic packaging tax is charged at the rate of ~~£223.69~~£228.82 per metric tonne of chargeable plastic packaging components of a single specification.
subsection (2) unchanged
Section 47(1)(a)2 insertions
47 Chargeable plastic packaging components
1 A plastic packaging component is chargeable if— (a) the ~~proportion~~combined proportion of recycled plastic and attributed recycled plastic in the component, when measured by weight, is less than 30% …
subsections (2) – (5) unchanged
Section 491 change, 2 insertions
49 Meaning of "plastic", ~~"recycled plastic"~~"recycled plastic" and "attributed recycled plastic"
subsections (1) – (2) unchanged
2A "Attributed recycled plastic" is plastic to which recovered material has been attributed in accordance with a chemical recycling certification scheme.
subsections (3) – (7) unchanged
7A Plastic is not to be taken as attributed recycled plastic unless it is shown that it is attributed recycled plastic.
subsections (8) – (10) unchanged
Section 492 deletions
49 Meaning of "plastic", "recycled plastic" and "attributed recycled plastic"
subsections (1) – (3) unchanged
4 "Recovered material" is ~~pre-consumer plastic or~~ post-consumer plastic that— (a) has been collected and recovered as a material input …
5 "Pre-consumer plastic" is plastic that is— (a) recovered from waste generated in a manufacturing process, and (b) processed by a reprocessing facility, but does not include plastic that is reused in the same process in which it was generated as scrap and from which it was recovered.
subsections (6) – (10) unchanged
Section 49A1 insertion
49A Meaning of "chemical recycling certification scheme"
1 For the purposes of this Part, a scheme is a "chemical recycling certification scheme" if— (a) it is a scheme under which a certified person produces plastic from recovered material and other material by means of a mass balance process …
subsections (2) – (4) inserted in full
Section 861 change
86 Rate bands etc for tax years 2021-22 to ~~2029-30~~2030-31
body of section unchanged — see section-72-a for paragraph (a) amendment
Section 86(a)2 changes
86 Rate bands etc for tax years 2021-22 to ~~2029-30~~2030-31
Sections 8 and 8D(7) of IHTA 1984 (indexation of rate bands, residential enhancement and taper threshold) do not have effect by virtue of any difference between—
a the consumer prices index for the month of September in 2020, 2021, 2022, 2023, 2024, 2025, 2026, 2027, ~~2028 or 2029~~2028 or 2029, and
b that index for the previous September.
Schedule 24 ¶ 21 insertion
Schedule 24 Penalties for failure to make returns etc
paragraph 2 table items 1–4 unchanged
2 Table — insertion after item 4 (columns 1, 2 and 5):
Item Tax Return
5 Vaping products duty Vaping products duty return under regulations under section 45 of TCTA 2018.
Schedule 24 ¶ 23 changes, 4 deletions
Schedule 24 — paragraph 2 (returns)
1 The Table identifies, for each item listed in column 1 of the Table, one or more groups of returns (according to the frequency with which returns are required to be made).
Table items — modified entries:
Item 1, Column A and B, paragraph (1): ~~return under section 8~~return, accounts, statements or documents required under section 8; paragraph (2): ~~[omitted]~~
Item 2, Column A and B, paragraph (1): ~~return under section 8A~~return, accounts, statements or documents required under section 8A; paragraph (2): ~~[omitted]~~
Items 1 & 2, Column B, paragraph (3): ~~[omitted]~~
Item 3, Column A, paragraph (1): ~~return under section 12AA(2)(a) or (3)(a)~~return, accounts, statements or documents required under section 12AA(2) or (3); paragraph (2): ~~[omitted]~~
sub-paragraphs (2) – (4) unchanged or separately amended
Schedule 24 ¶ 22 deletions
Schedule 24 — paragraph 2 (returns)
sub-paragraph (1) unchanged
3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Schedule 24 ¶ 2 11 insertion
Schedule 24 — Penalties for failure to make returns etc
paragraph 2(1) — Table: items 1 – 5 unchanged
Item Tax Column A Column B Column C
6 Carbon border adjustment mechanism - Return under paragraph 7 of Schedule 17 to FA 2026 -
Schedule 24 ¶ 51 change, 4 deletions
Schedule 24 — paragraph 5 (liability to penalty points)
sub-paragraph (1) unchanged
2 A person is liable to a penalty point for a group of returns for a relevant period if, during that period, the person fails to make a return in ~~the following groups of returns~~group 4A, 4B or 4C on or before the due date—
~~(a) [omitted]~~
~~(b) [omitted]~~
sub-paragraph (3) unchanged
4 ~~. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .~~
Schedule 24 ¶ 61 change
Schedule 24 — paragraph 6 (award of penalty points)
1 Where a person is liable to a penalty point for a group of returns, HMRC may award the person a penalty point for that group.
2 Where HMRC award a penalty point they must notify the person~~, and state in the notice—the failure (or failures) in respect of which the penalty point is awarded, andthe group of returns for which the penalty point is awarded.~~, and, in the notice—
(a) state the failure (or failures) in respect of which the penalty point is awarded, and
(b) include sufficient information for the person to be able to identify the group of returns for which the penalty point is awarded.
sub-paragraphs (3) onwards unchanged
Schedule 24 ¶ 61 insertion
Schedule 24 — after paragraph 6
paragraph 6 unchanged
6A Cancellation of individual penalty points
(1) HMRC may cancel a penalty point awarded under paragraph 6.
(2) Where HMRC cancel a penalty point after a notice under paragraph 6(2) in respect of the penalty point is given, they must notify the person and, in the notice—
(a) state the failure (or failures) in respect of which the penalty point was awarded, and
(b) include sufficient information for the person to be able to identify the group of returns for which the penalty point was awarded.
(3) Where HMRC cancel a penalty point before a notice under paragraph 6(2) in respect of the penalty point is given, HMRC is not required to give the notice under paragraph 6(2).
(4) Where HMRC cancel a penalty point, any assessment of a penalty under this Schedule that was made by reference to that penalty point (or was made partly by reference to it) ceases to have effect.
paragraphs 7 onwards unchanged
Schedule 25 ¶ 11 insertion
Schedule 25 Penalties for deliberately withholding information
paragraph 1 table items 1–4 unchanged
1 Table — insertion after item 4:
Item Tax to which return relates Return
5 Vaping products duty Vaping products duty return under regulations under section 45 of TCTA 2018.
Schedule 25 ¶ 12 changes, 2 deletions
Schedule 25 — paragraph 1 (penalties for deliberately withholding information)
1 A penalty is payable by a person (P) where P deliberately fails to deliver a document which includes information— (Table as amended:)
Row for section 8: ~~section 8(1AB)(b)~~section 8(1)(b)
Row for section 8A: ~~section 8A(1AB)(b)~~section 8A(1)(b)
sub-paragraph (2) unchanged
3 ~~. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .~~
4 ~~. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .~~

Item	Tax	Return
5	Vaping products duty	Vaping products duty return under regulations under section 45 of TCTA 2018.

Item	Tax	Column A	Column B	Column C
6	Carbon border adjustment mechanism	-	Return under paragraph 7 of Schedule 17 to FA 2026	-

Item	Tax to which return relates	Return
5	Vaping products duty	Vaping products duty return under regulations under section 45 of TCTA 2018.

Schedule 26 ¶ 11 insertion

Schedule 26 Penalties for failure to pay tax

paragraph 1 preceding tax tables unchanged

1 Table — insertion at end:

Vaping products duty
Item	Amount	Date by which amount must be paid
1	Amount of vaping products duty payable under Part 4 of FA 2026 (except an amount within item 2 or 3)	The date determined by or under regulations under section 45 of TCTA 2018 as the date by which the amount must be paid
2	Amount of vaping products duty shown in an assessment made by HMRC in default of a return	The date by which the amount would have been required to be paid if it had been shown in the return in question
3	Amount of vaping products duty shown in an amendment or correction of a return	The date falling 30 days after the date on which the amendment or correction is made

Schedule 26 ¶ 12 insertions
Schedule 26 — paragraph 1(1), Table: income tax or capital gains tax, item 1
Item 1 — Income tax or capital gains tax
Column 2: Amount payable under section 55 or 56(3)(b) of TMA 1970
Column 3: Amount payable under section 55 or 56(3)(b) of TMA 1970

Schedule 26 ¶ 1 11 insertion

Schedule 26 — Penalties for failure to pay tax

paragraph 1(1) — table relating to value added tax unchanged

Carbon border adjustment mechanism
Item	Amount of tax	Payment due date
1	Amount of CBAM payable under paragraph 6 of Schedule 17 to FA 2026 (except an amount within item 2, 3 or 4)	The date determined by paragraph 6 of Schedule 17 to FA 2026 as the date by which the amount must be paid
2	Amount of CBAM shown in an assessment made by HMRC in default of a return (see paragraph 3)	The date by which the amount would have been required to be paid if it had been shown in the return in question
3	Amount of CBAM shown in an amendment of a return	The date falling 30 days after the date on which the amendment is made
4	Amount of CBAM shown in an assessment made by HMRC otherwise than in default of a return (see paragraph 3)	The date falling 30 days after the date on which the assessment is made

remaining provisions unchanged

Schedule 26 ¶ 161 change
Schedule 26 — paragraph 16 (assessments)
1 Where a person is liable to a penalty under this Schedule HMRC may assess the penalty.
2 HMRC may by regulations make provision for HMRC to assess a penalty under paragraph 8 at times or intervals before the end of the further penalty period.
3 Where HMRC assess a penalty they must notify the person and state in the notice—
a the failure to pay the tax due, for which the person is liable to the penalty,
b the amount of the penalty, and
c how that amount has been calculated (including ~~the period to which the penalty relates~~, where the penalty is assessed under paragraph 8, the period by reference to which the penalty has been calculated).
sub-paragraphs (4) – (5) unchanged
Schedule 26 ¶ 171 insertion
Schedule 26 — after paragraph 17
paragraph 17 unchanged
17A (1) This paragraph applies where HMRC has assessed a penalty for which a person is liable under this Schedule in respect of a failure to pay the tax due.
(2) HMRC may withdraw the assessment by notice to the person.
(3) The withdrawn assessment ceases to have effect (and is to be taken as never having had any effect).
(4) But the withdrawal of the assessment does not prevent HMRC from subsequently assessing a penalty for the failure mentioned in sub-paragraph (1).
paragraph 18 onwards unchanged
Schedule 26 ¶ 181 deletion
Schedule 26 — paragraph 18 (time limit for assessments)
1 HMRC may not make an assessment after the end of the period of 2 years beginning with the date on which HMRC first became aware of the failure.
2 HMRC may not make an assessment after the end of the period of 4 years beginning with the date on which the failure occurred ~~(that is to say, the date on which the tax due became due and payable in accordance with the applicable obligation or enactment)~~.

Customs and Excise Management Act 1979

10 amendments · open Act

Section 1(1)1 change
1 Interpretation
1 In this Act, unless the context otherwise requires—
…
"the Customs and Excise Acts 1979" means this Act, the Customs and Excise Duties (General Reliefs) Act 1979, the Hydrocarbon Oil Duties Act 1979, the Tobacco Products Duty Act 1979; and Part 2 of the Finance (No. 2) Act 2023 (alcohol duty) and Part 4 of FA 2026 (vaping products duty);
…
remaining definitions and subsections unchanged
Section 1(3)1 insertion
1 Interpretation
subsections (1)–(2) unchanged
3 In this Act expressions used in—
…
Part 4 of FA 2026 (vaping products duty)
"vaping products"
…have the same meaning as in that Act or Part.
remaining subsections unchanged
Section 20(2)1 change, 3 insertions
20 Approval of wharves
subsection (1) unchanged
1A The Commissioners may by regulations— (a) specify conditions which must be met before an approval is granted, or (aa) impose conditions, or specify conditions which may be imposed, after an approval has been granted, (b) specify restrictions … (c) specify restrictions— (i) that apply in all cases, or (ii) which may be imposed …, (d) impose restrictions, or specify restrictions which may be imposed, after an approval has been granted, or (e) provide for the imposition of conditions or restrictions by direction …
1C Conditions and restrictions which may be imposed by or specified in regulations under subsection (1A) include— (a) conditions requiring the provision at the place approved under subsection (1) of specified facilities, services or infrastructure …
subsections (1B), (1D)–(1E) inserted; subsection (2) – (3) unchanged
Section 20A(1)1 change, 1 insertion
20A Approved wharves
1 An approved wharf is a place approved by the Commissioners under section 20(1)1) or an off-site facility.
subsections (1A) – end unchanged (subsection (1A) amended: "imposed" → "imposed by or")
Section 112(3)1 insertion
112 Power of entry upon premises, etc. of revenue traders
subsections (1)–(2) unchanged
3 Where any premises are the premises of a person who produces alcoholic products or vaping products, or of an occupier of an excise warehouse, and any officer demands entry to those premises for the purpose of exercising the powers conferred by this section but is refused entry, the officer may break open any door or window of the premises or break through any wall thereof for the purpose of obtaining admission.
subsections (4)–(6) unchanged
Section 112(5)1 insertion
112 Power of entry upon premises, etc. of revenue traders
subsections (1)–(4) unchanged
5 This section applies in relation to any vehicle, hovercraft or structure in or on which tobacco products or vaping products are sold or dealt in or alcoholic products are sold by retail as it applies in relation to premises of a revenue trader.
subsection (6) unchanged
Section 113(6)1 insertion
113 Power to search for concealed pipes, etc.
subsections (1)–(5) unchanged
6 The revenue traders to whom this section applies are persons who produce alcoholic products or vaping products.
Section 160(2A)1 insertion
160 Power to take samples
subsections (1)–(2) unchanged
2A The revenue traders to whom subsection (2) applies are persons who produce alcoholic products or vaping products.
remaining subsections unchanged
Section 161A(3)1 insertion
161A Power to search premises: search warrant
subsections (1)–(2A) unchanged
3 Where there are reasonable grounds to suspect that any still, vessel, utensil, spirits or materials for the manufacture of spirits or vaping products is or are unlawfully kept or deposited in any building or place, subsections (1), (2) and (2A) above apply to a constable in the same manner as they apply to an officer.
Section 163A(2)1 insertion
163A Power to search articles
subsection (1) unchanged
2 The goods referred to in subsection (1) above are—
(a) alcoholic products, vaping products, or tobacco products, which are—
(i) chargeable with any duty of excise, and
(ii) liable to forfeiture under the customs and excise Acts.

Excise Duties (Surcharges or Rebates) Act 1979

1 amendment · open Act

Section 11 insertion
1 Power to vary excise duty rates by order
1 This section applies to the following groups of excise duties—
a that chargeable in respect of alcoholic products;
ab that chargeable in respect of vaping products;
remaining paragraphs and subsections unchanged

Consumer Rights Act 2015

1 amendment · open Act

Schedule 5 ¶ 111 insertion
Schedule 5 Enforcers and their duties
paragraph 11 preceding table entries unchanged
11 Table — insertion at end:
A local weights and measures authority in Great Britain or a district council in Northern Ireland Section 136 of the Finance Act 2026 (vaping products duty)

Taxation (Cross-border Trade) Act 2018

9 amendments · open Act

Section 8(3A)1 insertion
8 The customs tariff
subsections (1) – (3) unchanged
3A The provision that the customs tariff may make under subsection (1)(c), by virtue of section 32(7), includes provision specifying different rates of import duty applicable to goods falling within a code by reference to their nature, origin or any other factor.
subsections (4) – (8) unchanged
Section 8(9)1 insertion
8 The customs tariff
subsections (1) – (8) unchanged
9 Regulations under this section may amend provision made under section 9 or 10 so as to provide that the rate of import duty that applies to goods in a standard case applies in any specified case to which either of those sections applies (instead of the rate specified in that section).
Section 491 change
49 Interpretation of sections 44 to 48
1 In sections 44 to 48—
"excise duty" means a duty charged under—
a Part 2 of the Finance (No. 2) Act 2023 (alcohol duty);
b the Hydrocarbon Oil Duties Act 1979~~; or~~;
c the Tobacco Products Duty Act 1979.; or
d Part 4 of the Finance Act 2026 (vaping products duty).
remaining definitions unchanged
Schedule 4 ¶ 91 change
Schedule 4 — Dumping of goods or foreign subsidies causing injury to UK industry
italic heading before paragraph 9 amended: "Initiation of a dumping or a subsidisation investigation: request made to TRA"
Schedule 4 ¶ 92 changes, 3 deletions
Schedule 4 — paragraph 9 (initiation of investigation)
sub-paragraph (1) Opening words: omit "only"; paragraph (a): sub-paragraph (ii) and the "or" before it ~~omitted~~.
sub-paragraph (2) In paragraph (a), omit ~~"in the case of an application under sub-paragraph (1)(a)(i),"~~; paragraph (b) ~~omitted~~.
Schedule 4 ¶ 9A1 insertion
Schedule 4 — paragraph 9A (Secretary of State direction)
9A(1) The Secretary of State may, in exceptional circumstances, direct the TRA to initiate a dumping or a subsidisation investigation in relation to goods if the Secretary of State is satisfied that— (a) there is sufficient evidence that goods are being dumped or subsidised …
sub-paragraphs (2) – (6) inserted in full
Schedule 5 ¶ 161 change
Schedule 5 — paragraph 16 (final affirmative determination)
sub-paragraphs (1) – (5) unchanged
6 Sub-paragraph (6) substituted with new provision about when the requirement in sub-paragraph (5)(b) does not apply.
Schedule 5 ¶ 72 changes, 3 deletions
Schedule 5 — paragraph 7 (initiation of safeguarding investigation)
italic heading amended: "request made to TRA" added
sub-paragraph (1): omit "only"; sub-paragraph (1)(a)(ii) ~~omitted~~; sub-paragraph (2)(a): omit "in the case of an application …"; sub-paragraph (2)(b) ~~omitted~~; sub-paragraph (3)(a): further omissions.
Schedule 5 ¶ 7A1 insertion
Schedule 5 — paragraph 7A (Secretary of State direction to initiate safeguarding investigation)
7A(1) The Secretary of State may direct the TRA to initiate a safeguarding investigation in relation to goods if the Secretary of State is satisfied that there is sufficient evidence that— (a) the goods have been imported …
sub-paragraphs (2) – (6) inserted in full

Social Security Administration Act 1992

4 amendments · open Act

Section 110ZA1 change
110ZA Class 1, 1A, 1B or 2 contributions: powers to call for documents etc
subsections (1)–(2) unchanged
2AThe following provisions of Schedule 38 to FA 2012 apply in relation to contributions as they apply in relation to tax (with appropriate modifications): Part 3 (power to obtain tax ~~agent's~~adviser's files etc).
Section 132A(2)(a)1 insertion
132A Disclosure of contributions avoidance arrangements
subsection (1) unchanged
2 The only provision which may be made under subsection (1) is provision applying (with or without modification), or corresponding to, any of the following provisions—
a any provision of, or made under, Part 7 of the Finance Act 2004 (disclosure of tax avoidance schemes) so far as that provision relates to income tax or to a penalty under that Part;
paragraphs (b) – (d) unchanged
subsections (3) – (7) unchanged
Section 132A(2)(b)1 change
132A Disclosure of contributions avoidance arrangements
subsection (1) unchanged
2 The only provision which may be made under subsection (1) is provision applying (with or without modification), or corresponding to, any of the following provisions—
paragraph (a) unchanged
b ~~any provision of the Taxes Management Act 1970 so far as it relates to a penalty under Part 7 of the Finance Act 2004;~~any provision of, or made under, Part 7 of the Finance Act 2004 so far as that provision relates to a penalty under that Part;
paragraphs (c) – (d) unchanged
subsections (3) – (7) unchanged
Section 132A(2)(b)1 change
132A Disclosure of contributions avoidance arrangements
subsection (1) unchanged; subsection (2)(a) unchanged
b any provision so far as it relates to a penalty under ~~that section~~Part 7 of the Finance Act 2004;
subsections (3) – (7) unchanged

Tobacco products duty	Tobacco products duty return.
Vaping products duty	Vaping products duty return.

Finance Act 2026

1 Overview of the Income Tax Acts

6 The basic rate, higher rate and additional rate

6B The Welsh basic, higher and additional amountsThe Welsh rates

6B The Welsh rates

6C [existing section]

8 The dividend nil rate, dividend ordinary rate, dividend upper rate and dividend additional rate

8 The dividend nil rate, dividend ordinary rate, dividend upper rate and dividend additional rate

9 The trust rate, property trust rate, savings trust rate and dividend trust rate

10 Income charged at the basic, higher and additional rates: individuals

11 Income charged at the default basic rate: non-individuals

11B Income charged at the Welsh basic, higher and additional rates

11C [existing section]

11CA Income charged at the property basic, higher and additional rates: individuals

11C Income charged at the default basic, higher and additional rates: non-UK resident individuals

11D Income charged at the savings basic, higher and additional rates: individuals

12B Individual's entitlement to a savings allowance

14 Income charged at the dividend ordinary rate: other personsnon-individuals

15 Income charged at the trust rate, the property trust rate, the savings trust rate and the dividend trust rate

16 [existing section]

16A Treatment of property income in hierarchy of total income

16 Savings and dividend income to be treated as highest part of total income

17 [existing section]

17A Meaning of “property income”

18 Meaning of “savings income”

25 Reliefs and allowances deductible at Steps 2 and 3: supplementary

25 Reliefs and allowances deductible at Steps 2 and 3: supplementary

30 Additional tax

30 Additional tax

31 Total income: supplementary

Chapter 5F Disguised investment management fees: carried interest

55B Tax reduction: entitlement

55C Election to reduce personal allowance

58 Meaning of "adjusted net income"

173A The maximum amount raised annually through risk finance investments requirement

173AA Maximum risk finance investments at the issue date requirement

173AB Maximum risk finance investments during period B requirement

175 The use of the money raised requirement

175 The use of the money raised requirement

186 The gross assets requirement

186 The gross assets requirement

186 The gross assets requirement

256A [existing section]

256B Meaning of “specified Northern Ireland company”

263 Form and amount of relief

292A The maximum amount raised annually through risk finance investments requirement

292AA Maximum risk finance investments when relevant holding is issued requirement

292AB Maximum risk finance investments during the 5-year post-investment period requirement

293 The use of the money raised requirement

293 The use of the money raised requirement

297 The gross assets requirement

297 The gross assets requirement

297 The gross assets requirement

331B [existing section]

331C Meaning of “specified Northern Ireland company”

399B Property partnerships: tax reduction for non-deductible loan interest

413 Gift aid: overview

425 Total income tax to which individual is charged

431 Gifts of shares, securities and real property to charities etc

462 Overview of Part

463 Interpretation of Part

479 Trustees’ accumulated or discretionary income to be charged at special rates

481 Other amounts to be charged at special rates for trustees

483 Sums paid by personal representatives to trustees

486 How allowable expenses are to be set against trust rate income

503 How beneficiary's income is reduced

518 Overview of Part

523 Gifts entitling donor to gift aid relief

523A Legacies: income tax liability and exemption

558 Approved charitable investments

733 Benefits charge: amount of deemed income

733 Benefits charge: amount of deemed income

734 Reduction in amount charged: previous capital gains tax charge

809EZA Disguised investment management fees: charge to income tax

809EZB Meaning of "management fee" in section 809EZA

809EZC Disguised investment management fees: carried interest

809EZD Disguised investment management fees: co-investment

809EZDA Sums arising to connected persons other than companies

809EZDB Sums arising to connected company or unconnected person

809EZE Interpretation of Chapter