Finance Act 2016
Finance Act 2016 (2016 c. 24)
- Finance Act 2016 (2016 c. 24)
- PART 1 Income tax
- Charge and principal rates etc
- 1 Income tax charge and rates for 2016-17
- 2 Basic rate limit for 2017-18
- 3 Personal allowance for 2017-18
- Rate structure
- 4 Savings allowance, and savings nil rate etc
- 5 Rates of tax on dividend income, and abolition of dividend tax credits etc
- 6 Structure of income tax rates
- Employment income: taxable benefits
- 7 Taxable benefits: application of Chapters 5 to 7 of Part 3 of ITEPA 2003
- 8 Cars: appropriate percentage for 2019-20 and subsequent tax years
- 9 Cars which cannot emit CO2: appropriate percentage for 2017-18 and 2018-19
- 10 Diesel cars: appropriate percentage
- 11 Cash equivalent of benefit of a van
- 12 Tax treatment of payments from sporting testimonials
- 13 Exemption for trivial benefits provided by employers
- 14 Travel expenses of workers providing services through intermediaries
- 15 Taxable benefits: PAYE
- Employment income: other provision
- 16 Employee share schemes
- 17 Securities options
- 18 Employment income provided through third parties
- Pensions
- 19 Standard lifetime allowance from 2016-17
- 20 Pensions bridging between retirement and state pension
- 21 Dependants' scheme pensions
- 22 Pension flexibility
- 23 Netherlands Benefit Act for Victims of Persecution 1940-1945
- Trading and other income
- 24 Fixed-rate deductions for use of home for business purposes
- 25 Averaging profits of farmers etc
- 26 Relief for finance costs related to residential property businesses
- 27 Individual investment plans of deceased investors
- Reliefs: enterprise investment scheme, venture capital trusts etc
- 28 EIS, SEIS and VCTs: exclusion of energy generation
- 29 EIS and VCTs: definition of certain periods
- 30 EIS and VCTs: election
- 31 VCTs: requirements for giving approval
- Reliefs: peer-to-peer lending
- 32 Income tax relief for irrecoverable peer-to-peer loans
- Transactions in securities
- 33 Transactions in securities: company distributions
- 34 Transactions in securities: procedure for counteraction of advantage
- 35 Distributions in a winding up
- Disguised fees and carried interest
- 36 Disguised investment management fees
- 37 Income-based carried interest
- 38 Income-based carried interest: persons coming to the UK
- Deduction at source
- 39 Deduction of income tax at source
- 40 Deduction of income tax at source: intellectual property
- 41 Deduction of income tax at source: intellectual property - tax avoidance
- Receipts from intellectual property
- 42 Receipts from intellectual property: territorial scope
- 43 Receipts from intellectual property: diverted profits tax
- Supplementary welfare payments: Northern Ireland
- 44 Tax treatment of supplementary welfare payments: Northern Ireland
- PART 2 Corporation tax
- Charge and rates
- 45 Charge for financial year 2017
- 46 Rate of corporation tax for financial year 2020
- Research and development
- 47 Abolition of vaccine research relief
- 48 Cap on R&D aid
- Loan relationships
- 49 Loan relationships and derivative contracts
- 50 Loans to participators etc: rate of tax
- 51 Loans to participators etc: trustees of charitable trusts
- Intangible fixed assets
- 52 Intangible fixed assets: pre-FA 2002 assets
- 53 Intangible fixed assets: transfers treated as at market value
- Creative industry reliefs
- 54 Tax relief for production of orchestral concerts
- 55 Television and video games tax relief: consequential amendments
- Banking companies
- 56 Banking companies: excluded entities
- 57 Banking companies: restrictions on loss relief etc
- Oil and gas
- 58 Reduction in rate of supplementary charge
- 59 Investment allowance: disqualifying conditions
- 60 Investment allowance: power to expand meaning of “relevant income”
- 61 Onshore allowance: disqualifying conditions
- 62 Cluster area allowance: disqualifying conditions
- 63 Cluster area allowance: power to expand meaning of “relevant income”
- Exploitation of patents etc
- 64 Profits from the exploitation of patents etc
- Miscellaneous
- 65 Power to make regulations about the taxation of securitisation companies
- 66 Hybrid and other mismatches
- 67 Insurance companies carrying on long-term business
- 68 Taking over payment obligations as lessee of plant or machinery
- PART 3 Income tax and corporation tax
- Capital allowances
- 69 Capital allowances: designated assisted areas
- 70 Capital allowances: anti-avoidance relating to disposals
- Trade and property business profits
- 71 Trade and property business profits: money's worth
- 72 Replacement and alteration of tools
- Property business deductions
- 73 Property business deductions: replacement of domestic items
- 74 Property business deductions: wear and tear allowance
- Transfer pricing
- 75 Transfer pricing: application of OECD principles
- Transactions in UK land
- 76 Corporation tax: territorial scope etc
- 77 Corporation tax: transactions in UK land
- 78 Income tax: territorial scope etc
- 79 Income tax: transactions in UK land
- 80 Pre-trading expenses
- 81 Commencement and transitional provision: sections 76, 77 and 80
- 82 Commencement and transitional provision: sections 78 and 79
- PART 4 Capital gains tax
- Rate
- 83 Reduction in rate of capital gains tax
- Entrepreneurs' relief
- 84 Entrepreneurs' relief: associated disposals
- 85 Entrepreneurs' relief: disposal of goodwill
- 86 Entrepreneurs' relief: “trading company” and “trading group”
- Investors' relief
- 87 Investors' relief
- Employee shareholder shares
- 88 Employee shareholder shares: limit on exemption
- 89 Employee shareholder shares: disguised fees and carried interest
- Other provisions
- 90 Disposals of UK residential property by non-residents etc
- 91 NRCGT returns
- 92 Addition of CGT to Provisional Collection of Taxes Act 1968
- PART 5 Inheritance tax etc
- 93 Inheritance tax: increased nil-rate band
- 94 Inheritance tax: pension drawdown funds
- 95 Inheritance tax: victims of persecution during Second World War era
- 96 Inheritance tax: gifts for national purposes etc
- 97 Estate duty: objects of national, scientific, historic or artistic interest
- PART 6 Apprenticeship levy
- Basic provisions
- 98 Apprenticeship levy
- 99 Charge to apprenticeship levy
- 100 A person's pay bill for a tax year
- Connected companies and charities
- 101 Connected companies
- 102 Connected charities
- Anti-avoidance
- 103 Anti-avoidance
- 104 Application of other regimes to apprenticeship levy
- Payment, collection and recovery
- 105 Assessment, payment etc
- 106 Recovery from third parties
- 107 Real time information
- 108 Time limits for assessment
- 109 No deduction in respect of levy to be made from earnings
- 110 Collectors and court proceedings
- Information and penalties
- 111 Records
- 112 Information and inspection powers
- 113 Penalties
- Appeals
- 114 Appeals
- General
- 115 Tax agents: dishonest conduct
- 116 Provisional collection of apprenticeship levy
- 117 Crown application
- 118 Charities which are “connected” with one another
- 119 Connection between charities: further provision
- 120 General interpretation
- 121 Regulations
- PART 7 VAT
- 122 VAT: power to provide for persons to be eligible for refunds
- 123 VAT: representatives and security
- 124 VAT: joint and several liability of operators of online marketplaces
- 125 VAT: Isle of Man charities
- 126 VAT: women's sanitary products
- PART 8 SDLT and ATED
- Stamp duty land tax
- 127 SDLT: calculating tax on non-residential and mixed transactions
- 128 SDLT: higher rates for additional dwellings etc
- 129 SDLT higher rate: land purchased for commercial use
- 130 SDLT higher rate: acquisition under regulated home reversion plan
- 131 SDLT higher rate: properties occupied by certain employees etc
- 132 SDLT: minor amendments of section 55 of FA 2003
- 133 SDLT: property authorised investment funds and co-ownership authorised contractual schemes
- Annual tax on enveloped dwellings
- 134 ATED: regulated home reversion plans
- 135 ATED: properties occupied by certain employees etc
- 136 ATED: alternative property finance - land in Scotland
- PART 9 Other taxes and duties
- Stamp duty and stamp duty reserve tax
- 137 Stamp duty: acquisition of target company's share capital
- 138 Stamp duty: transfers to depositaries or providers of clearance services
- 139 SDRT: transfers to depositaries or providers of clearance services
- Petroleum revenue tax
- 140 Petroleum revenue tax: rate
- Insurance premium tax
- 141 Insurance premium tax: standard rate
- Landfill tax
- 142 Landfill tax: rates from 1 April 2017
- 143 Landfill tax: rates from 1 April 2018
- Climate change levy
- 144 CCL: abolition of exemption for electricity from renewable sources
- 145 CCL: main rates from 1 April 2017
- 146 CCL: main rates from 1 April 2018
- 147 CCL: main rates from 1 April 2019
- 148 CCL: reduced rates from 1 April 2019
- Air passenger duty
- 149 APD: rates from 1 April 2016
- Vehicle excise duty
- 150 VED: rates for light passenger vehicles, light goods vehicles, motorcycles etc
- 151 VED: extension of old vehicles exemption from 1 April 2017
- Other excise duties
- 152 Gaming duty: rates
- 153 Fuel duties: aqua methanol etc
- 154 Tobacco products duty: rates
- 155 Alcoholic liquor duties: rates
- PART 10 Tax avoidance and evasion
- General anti-abuse rule
- 156 General anti-abuse rule: provisional counteractions
- 157 General anti-abuse rule: binding of tax arrangements to lead arrangements
- 158 General anti-abuse rule: penalty
- Tackling frequent avoidance
- 159 Serial tax avoidance
- 160 Promoters of tax avoidance schemes
- 161 Large businesses: tax strategies and sanctions for persistently unco-operative behaviour
- Offshore activities
- 162 Penalties for enablers of offshore tax evasion or non-compliance
- 163 Penalties in connection with offshore matters and offshore transfers
- 164 Offshore tax errors etc: publishing details of deliberate tax defaulters
- 165 Asset-based penalties for offshore inaccuracies and failures
- 166 Offences relating to offshore income, assets and activities
- PART 11 Administration, enforcement and supplementary powers
- Assessment and returns
- 167 Simple assessments
- 168 Time limit for self assessment tax returns
- 169 HMRC power to withdraw notice to file a tax return
- Judgment debts
- 170 Rate of interest applicable to judgment debts etc: Scotland
- 171 Rate of interest applicable to judgment debts etc: Northern Ireland
- 172 Rate of interest applicable to judgment debts etc: England and Wales
- Enforcement powers
- 173 Gift aid: power to impose penalties on charities and intermediaries
- 174 Proceedings under customs and excise Acts: prosecuting authority
- 175 Detention and seizure under CEMA 1979: notice requirements etc
- 176 Data-gathering powers: providers of payment or intermediary services
- 177 Data-gathering powers: daily penalties for extended default
- Payment
- 178 Extension of provisions about set-off to Scotland
- Raw tobacco
- 179 Raw tobacco approval scheme
- State aids granted through provision of tax advantages
- 180 Powers to obtain information about certain tax advantages
- 181 Power to publish state aid information
- 182 Information powers: supplementary
- Qualifying transformer vehicles
- 183 Qualifying transformer vehicles
- PART 12 Office of Tax Simplification
- 184 Office of Tax Simplification
- 185 Functions of the OTS: general
- 186 Functions of the OTS: reviews and reports
- 187 Annual report
- 188 Review of the OTS
- 189 Commencement
- PART 13 Final
- 190 Interpretation
- 191 Short title
- SCHEDULES
- SCHEDULE 1 Abolition of dividend tax credits etc
- Main repeals
- Further amendments in ITTOIA 2005
- Further amendments in CTA 2010
- Other amendments
- Commencement
- SCHEDULE 2 Sporting testimonial payments
- Income tax: sporting testimonial payments treated as earnings
- Income tax: limited exemption for sporting testimonial payments
- Corporation tax: deductions from total profits for sporting testimonial payments and associated payments
- Application of this Schedule
- SCHEDULE 3 Employee share schemes: minor amendments
- Enterprise management incentives and employee ownership trusts
- Share incentive plans
- Notification of plans and schemes to HMRC
- Price for acquisition of shares under share option
- Tag-along rights
- Exercise of EMI options
- SCHEDULE 4 Pensions: lump sum allowance and lump sum and death benefit allowance: transitional provision
- PART 1 “Fixed protection 2016”
- The protection
- The initial conditions
- Protection-cessation events
- Protection-cessation events: interpretation: “benefit accrual”
- Protection-cessation events: interpretation: “impermissible transfer”
- Protection-cessation events: interpretation: “permitted transfer”
- Protection-cessation events: interpretation: “permitted circumstances”
- Protection-cessation events: interpretation: relieved non-UK pension schemes
- PART 2 “Individual protection 2016”
- The protection
- Amount A (pre-6 April 2006 pensions in payment)
- Amount B (pre-6 April 2016 benefit crystallisation events)
- Amount C (uncrystallised rights at end of 5 April 2016 under registered pension schemes)
- Amount D (uncrystallised rights at end of 5 April 2016 under relieved non-UK schemes)
- PART 3 Reference numbers etc
- Issuing of reference numbers for fixed or individual protection 2016
- Withdrawal of reference numbers
- Appeals against non-issue or withdrawal of reference numbers
- Notification of subsequent protection-cessation events
- Notification of subsequent pension debits
- Personal representatives
- Penalties for non-supply, or fraudulent etc supply, of information under paragraph 17 or 18
- PART 4 Information
- Preservation of records in connection with individual protection 2016
- Amendments of regulations
- PART 5 Amendments in connection with protection of pre-6 April 2006 rights
- PART 6 Interpretation and regulations
- Interpretation of Parts 1, 2 and 3
- Interpretation of Parts 3 and 4 and this Part
- Regulations
- SCHEDULE 5 Pension flexibility
- Serious ill-health lump sums
- Charity lump sum death benefits
- Dependants' flexi-access drawdown funds
- Trivial commutation lump sum
- Top-up of dependants' death benefits
- Inheritance tax as respects cash alternatives to annuities for dependants etc
- SCHEDULE 6 Deduction of income tax at source
- PART 1 Abolition of duty to deduct tax from interest on certain investments
- PART 2 Deduction of tax from yearly interest: exception for deposit-takers
- PART 3 Amendments of or relating to Chapter 2 of Part 15 of ITA 2007
- Amendments of Chapter 2 of Part 15 of ITA 2007
- Amendments relating to Chapter 2 of Part 15 of ITA 2007
- PART 4 Deduction of tax from UK public revenue dividends
- PART 5 Commencement
- SCHEDULE 7 Loan relationships and derivative contracts
- Introductory
- Non-market loans
- Transfer pricing
- Exchange gains and losses
- Commencement
- SCHEDULE 8 Tax relief for production of orchestral concerts
- PART 1 Amendment of CTA 2009
- PART 2 Consequential amendments
- ICTA
- FA 1998
- CAA 2001
- FA 2007
- CTA 2009
- FA 2009
- CTA 2010
- PART 3 Commencement
- SCHEDULE 9 Profits from the exploitation of patents etc: consequential
- SCHEDULE 10 Hybrid and other mismatches
- PART 1 Main provisions
- PART 2 Consequential amendments
- FA 1998
- CTA 2009
- CTA 2010
- TIOPA 2010
- PART 3 Commencement
- SCHEDULE 11 Disposals of non-UK residential property interests
- SCHEDULE 12 Disposals of residential property interests: gains and losses
- SCHEDULE 13 Entrepreneurs' relief: “trading company” and “trading group”
- SCHEDULE 14 Investors' relief
- SCHEDULE 15 Inheritance tax: increased nil-rate band
- SCHEDULE 16 Property authorised investment funds and co-ownership authorised contractual schemes
- PART 1 Co-ownership authorised contractual schemes
- PART 2 Seeding relief for property authorised investment funds and co-ownership authorised contractual schemes
- PART 3 Consequential amendments
- PART 4 Commencement
- SCHEDULE 17 Aqua methanol etc
- PART 1 Aqua methanol
- Introductory
- Definition
- Charging of excise duty
- Mixing of aqua methanol
- Enforcement
- Consequential amendments
- PART 2 Hydrocarbon oils: miscellaneous amendments
- HODA 1979
- FA 1994
- PART 3 Commencement
- SCHEDULE 18 Serial tax avoidance
- PART 1 Contents of Schedule
- PART 2 Entry into the regime and basic concepts
- Duty to give warning notice
- Warning period
- Meaning of “tax”
- Meaning of “tax advantage” in relation to VAT
- Meaning of “non-deductible tax”
- “Tax advantage”: other taxes
- “DOTAS arrangements”
- “Disclosable Schedule 11A VAT arrangements”
- “Disclosable indirect tax arrangements”
- Paragraphs 8 to 9A: “failure to comply”
- “Relevant defeat”
- Condition A
- Condition B
- Condition C
- Condition D
- Condition E
- Condition F
- PART 3 Annual information notices and naming
- Annual information notices
- Naming
- PART 4 Restriction of reliefs
- Duty to give a restriction relief notice
- Restriction of relief
- The restricted period
- Reasonable excuse
- Mitigation of restriction of relief
- Appeal
- Meaning of “avoidance-related rule”
- Meaning of “relief”
- “Claim” for relief
- VAT and indirect taxes
- Power to amend
- PART 5 Penalty
- Penalty
- Simultaneous defeats etc
- Value of the counteracted advantage: basic rule for taxes other than VAT
- Value of counteracted advantage: losses for purposes of direct tax
- Value of counteracted advantage: deferred tax
- Meaning of “the counteracted advantage” in paragraphs 33 and 34
- Value of the counteracted advantage: Conditions D and E
- Value of counteracted advantage: delayed VAT
- Assessment of penalty
- Alteration of assessment of penalty
- Aggregate penalties
- Appeal against penalty
- Penalties: reasonable excuse
- Paragraph 42: meaning of “the relevant failure”
- Mitigation of penalties
- PART 6 Corporate groups, associated persons and partnerships
- Representative member of a VAT group
- Corporate groups
- Associated persons treated as incurring relevant defeats
- Meaning of “associated”
- Partners treated as incurring relevant defeats
- Partnership returns to which this paragraph applies
- Partnerships: information
- Partnerships: special provision about taxpayer emendations
- Supplementary provision relating to partnerships
- PART 7 Supplemental
- Meaning of “adjustments”
- Time of “use” of defeated arrangements
- Inheritance tax
- National insurance contributions
- General interpretation
- Consequential amendments
- Commencement
- SCHEDULE 19 Large businesses: tax strategies and sanctions
- PART 1 Interpretation
- Purpose of Part 1
- “Relevant body”
- “UK company”
- “UK permanent establishment”
- “Qualifying company”
- “Group” and related expressions
- “Qualifying group”
- “UK sub-group” and “head” (in relation to a UK sub-group)
- “UK partnership”, “qualifying partnership” and “representative partner”
- “Financial year”
- “Turnover” and “balance sheet total”
- “UK taxation”
- PART 2 Publication of tax strategies
- Qualifying UK groups: duty to publish a group tax strategy
- Content of group tax strategy
- Penalty for non-compliance with paragraph 16
- UK sub-groups: duty to publish a sub-group tax strategy
- Content of a sub-group tax strategy
- Penalty for non-compliance with requirements of paragraph 19
- Qualifying companies: duty to publish a company tax strategy
- Content of a company tax strategy
- Penalty for non-compliance with paragraph 22
- Qualifying partnerships: duty to publish a partnership tax strategy
- Penalties under this Part: general provisions
- Failure to comply with a time limit
- Reasonable excuse
- Assessment of penalties
- Appeal
- Enforcement
- Power to change amount of penalties
- Application of provisions of TMA 1970
- Meaning of “tax strategy”
- PART 3 Sanctions for persistently unco-operative large businesses
- Large groups falling within Part 3
- Warning notices
- Special measures notices
- Circumstances in which warning and special measures notices are treated as having been given
- Sanctions: liability for penalties for errors in documents given to HMRC
- Sanctions: Commissioners publishing information
- Application of Part 3 to large UK sub-groups
- Application of Part 3 to large companies
- Application of Part 3 to large partnerships
- Meaning of “designated HMRC officer”
- PART 4 Supplementary
- Amendment of power under section 122 of FA 2015
- Regulations
- SCHEDULE 20 Penalties for enablers of offshore tax evasion or non-compliance
- PART 1 Liability for penalty
- Liability for penalty
- Meaning of “involving offshore activity” and related expressions
- Amount of penalty
- Potential lost revenue: enabling Q to commit relevant offence
- Potential lost revenue: enabling Q to engage in conduct incurring relevant civil penalty
- Treatment of potential lost revenue attributable to both offshore tax evasion or non-compliance and other tax evasion or non-compliance
- Reduction of penalty for disclosure etc by P
- Procedure for assessing penalty, etc
- Appeals
- Double jeopardy
- Application of provisions of TMA 1970
- Interpretation of Part 1
- PART 2 Application of Schedule 36 to FA 2008: information powers
- General application of information and inspection powers to suspected enablers
- General modifications
- Specific modifications
- PART 3 Publishing details of persons found liable to penalties
- Naming etc of persons assessed to penalty or penalties under paragraph 1
- SCHEDULE 21 Penalties relating to offshore matters and offshore transfers
- Amendments to Schedule 24 to the Finance Act 2007 (c. 11)
- Amendments to Schedule 41 to the Finance Act 2008 (c. 9)
- Amendments to Schedule 55 to the Finance Act 2009 (c.10)
- SCHEDULE 22 Asset-based penalty for offshore inaccuracies and failures
- PART 1 Liability for penalty
- Circumstances in which asset-based penalty is payable
- Meaning of standard offshore tax penalty
- Tax year to which standard offshore tax penalty relates
- Potential lost revenue threshold
- Offshore PLR
- Restriction on imposition of multiple asset-based penalties in relation to the same asset
- PART 2 Amount of penalty
- Standard amount of asset-based penalty
- Reductions for disclosure and co-operation
- Special reduction
- PART 3 Identification and valuation of assets
- Introduction
- Capital gains tax
- Inheritance tax
- Asset-based income tax
- Jointly held assets
- PART 4 Procedure
- Assessment
- Appeal
- PART 5 General
- Interpretation
- Consequential amendments etc
- SCHEDULE 23 Simple assessments
- SCHEDULE 24 Tax advantages constituting the grant of state aid
- PART 1 Tax advantages to which section 180(2)applies
- Enhanced capital allowances
- Creative tax reliefs
- Research and development reliefs
- Enterprise management incentives exemptions and reliefs
- PART 2 Tax advantages to which section 180(5) applies
- SCHEDULE 25 Office of Tax Simplification
- Membership
- Term of office
- Appointment of initial members
- Termination of appointments
- Remuneration
- Provision of staff and facilities etc.
- Validity of proceedings
- Supplementary powers
- Finance
- Disqualification
- Freedom of information
- Public sector equality duty
Feedback