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The Finance Act 2008 (Penalties for Errors and Failure to Notify etc) (Consequential Amendments) Order 2010

S.I. 2010/530 · Made 2 March 2010

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

Revenue And Customs

Made 2nd March 2010

Laid before the House of Commons 3rd March 2010

Coming into force 1st April 2010

The Treasury make the following Order in exercise of the powers conferred by sections 122 and 123 of the Finance Act 2008f1.

Annotations to the whole text

Footnotes

f1

2008 c. 9.

Contents

  1. 1Citation and commencement
  2. 2Consequential amendments
  3. Signature
  4. Schedule
  5. 1Taxes Management Act
  6. 2Taxes Management Act
  7. 3Taxes Management Act
  8. 4Finance Act 1994
  9. 5Value Added Tax Act 1994
  10. 6Finance Act 1996
  11. 7Income Tax (Trading and Other Income) Act 2005
  12. 8Income Tax (Trading and Other Income) Act 2005
  13. 9Income Tax (Trading and Other Income) Act 2005
  14. 10Corporation Tax Act 2009
  15. Explanatory note

1Citation and commencement

This Order may be cited as the Finance Act 2008 (Penalties for Errors and Failure to Notify etc) (Consequential Amendments) Order 2010 and comes into force on 1st April 2010.

2Consequential amendments

The Schedule to this Order contains amendments in consequence of Schedule 24 to the Finance Act 2007f1 and Schedule 41 to the Finance Act 2008.

Signature

Dave Watts

Tony Cunningham

Two of the Lords Commissioners of Her Majesty’s Treasury

1Taxes Management Act

The Taxes Management Act 1970f1 is amended as follows.

2Taxes Management Act

In section 59C(4)f1 (surcharges on unpaid income tax and capital gains tax) for “section 7 or 93(5) of this Act or Schedule 24 to the Finance Act 2007” substitute “section 93(5) of this Act, Schedule 24 to the Finance Act 2007 or Schedule 41 to the Finance Act 2008”.

3Taxes Management Act

In section 107A(2)(a)f1 (relevant trustees)—

(a)

omit “7,”, and

(b)

after “Schedule 24 to the Finance Act 2007” insert “or Schedule 41 to the Finance Act 2008”.

4Finance Act 1994

In Schedule 7 to the Finance Act 1994f1 (insurance premium tax), in paragraph 20 omit “14(3),”.

5Value Added Tax Act 1994

In section 74(4) of the Value Added Tax Act 1994f1 (interest on VAT recovered or recoverable by assessment), for “section 67(2)” substitute “paragraph 2(3) of Schedule 41 to the Finance Act 2008”.

6Finance Act 1996

In Schedule 5 to the Finance Act 1996f1 (landfill tax)—

(a)

in paragraph 27(9)(a) after “Part V of this Schedule” insert “or under Schedule 41 to the Finance Act 2008”;

(b)

in paragraphs 22(4)(b) and 23(2)(b), after “Schedule 24 to the Finance Act 2007 (penalties for errors)” insert “or a penalty under Schedule 41 to the Finance Act 2008 (penalties: failure to notify and certain VAT and excise wrongdoing)”.

7Income Tax (Trading and Other Income) Act 2005

The Income Tax (Trading and Other Income) Act 2005f1 is amended as follows.

8Income Tax (Trading and Other Income) Act 2005

In section 54(2) (no deduction allowed for penalties, interest and VAT surcharges), at the end of the table add—

“Penalty under Schedule 41 to FA 2008Various taxes and excise duties”

9Income Tax (Trading and Other Income) Act 2005

In section 869(4) (no deduction allowed for penalties, interest and VAT surcharges), at the end of the table add—

“Penalty under Schedule 41 to FA 2008Various taxes and excise duties”

10Corporation Tax Act 2009

In section 1303(2) Corporation Tax Act 2009f1 (no deduction allowed for penalties, interest and VAT surcharges), at the end of the table add—

“Penalty under Schedule 24 to FA 2007Various taxes and excise duties
Penalty under Schedule 41 to FA 2008Various taxes and excise duties”

Explanatory note

(This note is not part of the Order)

This Order contains amendments in consequence of Schedule 24 to the Finance Act 2007 and Schedule 41 to the Finance Act 2008. Schedule 24 introduced a single penalty regime for errors in documents given to Her Majesty’s Revenue and Customs (“HMRC”). Schedule 41 introduced a single penalty regime for failure to comply with a relevant obligation to notify HMRC of chargeability to tax, liability to register for tax etc., as well as penalties for issuing an unauthorised VAT invoice, putting a product to a use that attracts a higher rate of excise duty, and handling goods subject to unpaid excise duty.

Article 2 and the Schedule to the Order provide for consequential amendments to primary legislation.

An Impact Assessment on the wider penalties reform was published by HMRC on 27 March 2008 and is available from HMRC’s website at http://www.hmrc.gov.uk/ria/penalties.pdf .