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The Finance Act 2008, Section 135 (Coronavirus) Order 2020

S.I. 2020/934 · Made 2 September 2020

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.

Income Tax

Value Added Tax

Made 2nd September 2020

Laid before the House of Commons 3rd September 2020

Coming into force 25th September 2020

The Treasury make the following Order in exercise of the powers conferred by section 135 of the Finance Act 2008f1.

The Treasury, in accordance with section 135(9) of that Act, consider the emergency referred to in this Order to be of national significance.

Annotations to the whole text

Footnotes

f1

2008 c. 9. Section 135 was amended by section 105 of the Finance Act 2020 (c. 14).

Contents

  1. 1Citation and commencement
  2. 2Specified emergency
  3. 3Specified liabilities
  4. 4Specified liabilities
  5. 5Specified liabilities
  6. 6Specified date
  7. Signature
  8. Explanatory note

1Citation and commencement

This Order may be cited as the Finance Act 2008, Section 135 (Coronavirus) Order 2020 and comes into force on 25th September 2020.

2Specified emergency

For the purposes of section 135 of the Finance Act 2008, the incidence of severe acute respiratory syndrome coronavirus 2 in the United Kingdom is an emergency.

3Specified liabilities

For the purposes of section 135 of the Finance Act 2008, the liabilities described in articles 4 and 5 are specified liabilities.

4Specified liabilities

A liability that consists of an amount in relation to the year of assessment 2019-20f1 payable under—

(a)

section 59A(2)(b) (payments on account of income tax) of the Taxes Management Act 1970f2, or

(b)

section 15(1) and (2) (class 4 contributions recoverable under the Income Tax Acts) of the Social Security Contributions and Benefits Act 1992f3 in relation to an amount within paragraph (a).

5Specified liabilities

A liability that—

(a)

consists of an amount payable under section 73 (failure to make returns etc) of the Value Added Tax Act 1994f1 where the assessment—

(i)

is in respect of a prescribed accounting periodf2 where the return to which the prescribed accounting period relates was required by regulation 25 (making of returns) of the Value Added Tax Regulations 1995f3 to be made in the period beginning on 20th March 2020 and ending on 30th June 2020, and

(ii)

is made on or before 31st March 2021, or

(b)

consists of an amount payable during the period beginning on 20th March 2020 and ending on 30th June 2020 under—

(i)

article 4 (payments on account) of the Value Added Tax (Payments on Account) Order 1993f4,

(ii)

regulation 40(2) or (3) (VAT to be accounted for on returns and payment of VAT) of the Value Added Tax Regulations 1995, or

(iii)

regulation 50(2) (annual accounting scheme) of the Value Added Tax Regulations 1995f5.

6Specified date

For the purposes of section 135(4)(a) of the Finance Act 2008, the date specified is 20th March 2020.

Signature

Maggie Throup

James Morris

Two of the Lords Commissioners of Her Majesty’s Treasury

2nd September 2020

Explanatory note

(This note is not part of the Order)

This Order is made in exercise of the powers conferred in section 135 of the Finance Act 2008 (c. 9) (“the Act”). That section provides that, in the case of a disaster or emergency specified by the Treasury as having national significance, no interest or surcharges will be charged where the Commissioners for Her Majesty’s Revenue and Customs have agreed to defer payments in respect of specified liabilities under an enactment or contract settlement.

Section 135(4) of the Act defines the period over which relief is extended. Section 135(10) of the Act provides authority for the retrospective effect of this Order.

Article 2 specifies that the incidence of coronavirus in the United Kingdom is an emergency which qualifies for relief under section 135 of the Act.

Article 3 specifies the liabilities to which the relief applies are those set out by Article 4 and Article 5. Article 4 deals with income tax liabilities and Class 4 National Insurance contributions liabilities. Article 5 deals with VAT liabilities.

Article 6 specifies that the commencement date for the relief period is 20th March 2020.

A Tax Information and Impact Note covering this instrument was published on 25th June 2020 alongside the amendment to section 135 of the Finance Act 2008 and is available on the website at https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/895358/Amending_section_135_.pdf. It remains an accurate summary of the impacts that apply to this instrument.