Finance Act 2020
2020 c. 14 · Enacted 22 July 2020 · Extends to United Kingdom
Most Gracious Sovereign
WE, Your Majesty's most dutiful and loyal subjects, the Commons of the United Kingdom in Parliament assembled, towards raising the necessary supplies to defray Your Majesty's public expenses, and making an addition to the public revenue, have freely and voluntarily resolved to give and to grant unto Your Majesty the several duties hereinafter mentioned; and do therefore most humbly beseech Your Majesty that it may be enacted, and be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
Contents
- Part 1: Income tax, corporation tax and capital gains tax
- Income tax charge, rates etc
- 1Income tax charge for tax year 2020-21
- 2Main rates of income tax for tax year 2020-21
- 3Default and savings rates of income tax for tax year 2020-21
- 4Starting rate limit for savings for tax year 2020-21
- Corporation tax charge and rates
- 5Main rate of corporation tax for financial year 2020
- 6Corporation tax: charge and main rate for financial year 2021
- Employment income and social security income
- 7Workers' services provided through intermediaries
- 8Determining the appropriate percentage for a car: tax year 2020-21 onwards
- 9Determining the appropriate percentage for a car: tax year 2020-21 only
- 10Determining the appropriate percentage for a car: tax year 2021-22 only
- 11Apprenticeship bursaries paid to persons leaving local authority care
- 12Tax treatment of certain Scottish social security benefits
- 13Power to exempt social security benefits from income tax
- 14Voluntary office-holders: payments in respect of expenses
- Loan charge
- 15Loan charge not to apply to loans or quasi-loans made before 9 December 2010
- 16Election for loan charge to be split over three tax years
- 17Loan charge reduced where underlying liability disclosed but unenforceable
- 18Relief from interest on tax payable by a person subject to the loan charge
- 19Minor amendments relating to the loan charge
- 20Repaying sums paid to HMRC under agreements relating to certain loans etc
- 21Operation of the scheme
- Pensions
- 22Annual allowance: tapered reduction
- Chargeable gains
- 23Entrepreneurs' relief
- 24Relief on disposal of private residence
- 25Corporate capital losses
- 26Quarterly instalment payments
- 27Relief from CGT for loans to traders
- Reliefs for business
- 28Research and development expenditure credit
- 29Structures and buildings allowances: rate of relief
- 30Structures and buildings allowances: miscellaneous amendments
- 31Intangible fixed assets: pre-FA 2002 assets etc
- Miscellaneous measures affecting companies
- 32Non-UK resident companies carrying on UK property businesses etc
- 33Surcharge on banking companies: transferred-in losses
- 34CT payment plans for tax on certain transactions with EEA residents
- 35Changes to accounting standards affecting leases
- Investments
- 36Enterprise investment scheme: approved investment fund as nominee
- 37Gains from contracts for life insurance etc: top slicing relief
- 38Losses on disposal of shares: abolition of requirement to be UK business
- Part 2: Digital services tax
- Introduction
- 39Digital services tax: introduction
- Digital services revenues, UK digital services revenues etc
- 40Meaning of “digital services revenues”
- 41Meaning of “UK digital services revenues”
- 42UK digital services revenues: accommodation and land
- 43Meaning of “digital services activity” etc
- 44Meaning of “user” and “UK user”
- 45Exclusion for online financial marketplaces
- Charge to tax
- 46Meaning of “the threshold conditions”
- 47Charge to DST
- 48Alternative basis of charge
- 49Section 48: meaning of “relevant operating expenses”
- 50Relief for certain cross-border transactions
- 51When DST is due and payable
- Duty to submit returns etc
- 52Meaning of “the responsible member”
- 53Continuity of obligations etc where change in the responsible member
- 54Duty to notify HMRC when threshold conditions are met
- 55Duty to notify HMRC of change in relevant information
- 56Duty to file returns
- Groups, parents and members
- 57Meaning of “group”, “parent” etc
- 58Section 57: meaning of “relevant entity”
- 59Continuity of a group over time
- 60Treatment of stapled entities
- Accounting periods, accounts etc
- 61Accounting periods and meaning of “a group's accounts”
- 62Apportionment of revenues or expenses to accounting period
- 63Meaning of revenues arising, or expenses recognised, in a period
- 64Meaning of “the applicable accounting standards” etc
- Supplementary
- 65Anti-avoidance
- 66Notice requiring payment from other group members
- 67Interest on overdue DST
- 68Interest on overpaid DST etc
- 69Recovery of DST liability
- 70Minor and consequential amendments
- 71Review of DST
- General
- 72Interpretation of Part
- Part 3: Other taxes
- Inheritance tax
- 73Excluded property etc
- 74Transfers between settlements etc
- 75Relief for payments to victims of persecution during Second World War era
- Stamp duty land tax
- 76Exceptional circumstances preventing disposal of interest in three year period
- Stamp duty and stamp duty reserve tax
- 77Stamp duty: transfers of unlisted securities and connected persons
- 78SDRT: unlisted securities and connected persons
- 79Stamp duty: acquisition of target company's share capital
- Value added tax
- 80Call-off stock arrangements
- Alcohol liquor duties
- 81Post-duty point dilution of wine or made-wine
- Tobacco products duty
- 82Rates of tobacco products duty
- Vehicle taxes
- 83Rates for light passenger or light goods vehicles, motorcycles etc
- 84Applicable CO2 emissions figure determined using WLTP values
- 85Electric vehicles: extension of exemption
- 86Motor caravans
- 87Exemption in respect of medical courier vehicles
- 88HGV road user levy : exempt period
- 88AHGV road user levy: transitional provision for end of exempt period
- Hydrocarbon oil duties
- 89Rebated fuel: private pleasure craft
- Air passenger duty
- 90Rates of air passenger duty from 1 April 2021
- Gaming duty
- 91Amounts of gross gaming yield charged to gaming duty
- Environmental taxes
- 92Rates of climate change levy until 1 April 2021
- 93Rates of climate change levy from 1 April 2021
- 94Rates of landfill tax
- 95Carbon emissions tax Repealed
- 96Charge for allocating allowances under emissions reduction trading scheme
- Import duty
- 97International trade disputes
- Part 4: Miscellaneous and final
- Insolvency
- 98HMRC debts: priority on insolvency
- 99HMRC debts: regulations
- Joint and several liability
- 100Joint and several liability of company directors etc
- General anti-abuse rule
- 101Amendments relating to the operation of the GAAR
- Compensation schemes etc
- 102Tax relief for scheme payments etc
- Administration
- 103HMRC: exercise of officer functions
- 104Returns relating to LLP not carrying on business etc with view to profit
- 105Interest on unpaid tax in case of disaster etc of national significance
- Coronavirus
- 106Taxation of coronavirus support payments
- 107Enterprise management incentives
- 108Protected pension age of members re-employed as a result of coronavirus
- 109Modifications of the statutory residence test in connection with coronavirus
- 110Future Fund: EIS and SEIS relief
- Preparing for new tax
- 111Preparing for a new tax in respect of certain plastic packaging
- Local loans
- 112Limits on local loans
- Other
- 113Interpretation
- 114Short title
- Schedule 1: Workers' services provided through intermediaries
- Part 1: Amendments to Chapter 8 of Part 2 of ITEPA 2003
- 1Paragraph 1
- 2Paragraph 2
- 3Paragraph 3
- 4Paragraph 4
- 5Paragraph 5
- 6Paragraph 6
- Part 2: Amendments to Chapter 10 of Part 2 of ITEPA 2003
- 7Paragraph 7
- 8Paragraph 8
- 9Paragraph 9
- 10Paragraph 10
- 11Paragraph 11
- 12Paragraph 12
- 13Paragraph 13
- 14Paragraph 14
- 15Paragraph 15
- 16Paragraph 16
- 17Paragraph 17
- Part 3: Consequential and miscellaneous amendments
- 18Paragraph 18
- 19Paragraph 19
- 20Paragraph 20
- 21Paragraph 21
- 22Paragraph 22
- 23Paragraph 23
- Part 4: Commencement and transitional provisions
- Commencement
- 24Paragraph 24
- 25Paragraph 25
- 26Paragraph 26
- 27Paragraph 27
- 28Paragraph 28
- 29Paragraph 29
- Transitional provisions
- 30Paragraph 30
- 31Paragraph 31
- 32Paragraph 32
- 33Paragraph 33
- 34Paragraph 34
- Schedule 2: The loan charge: consequential amendments
- Part 1: Amendments to F(No.2)A 2017 in consequence of section 15
- 1Paragraph 1
- 2Paragraph 2
- 3Paragraph 3
- 4Paragraph 4
- 5Paragraph 5
- 6Paragraph 6
- 7Paragraph 7
- 8Paragraph 8
- 9Paragraph 9
- 10Paragraph 10
- 11Paragraph 11
- 12Paragraph 12
- 13Paragraph 13
- 14Paragraph 14
- 15Paragraph 15
- 16Paragraph 16
- 17Paragraph 17
- 18Paragraph 18
- 19Paragraph 19
- 20Paragraph 20
- 21Paragraph 21
- 22Paragraph 22
- Part 2: Amendments in consequence of section 16
- ITEPA 2003
- 23Paragraph 23
- 24Paragraph 24
- 25Paragraph 25
- F(No.2)A 2017
- 26Paragraph 26
- 27Paragraph 27
- 28Paragraph 28
- 29Paragraph 29
- 30Paragraph 30
- 31Paragraph 31
- 32Paragraph 32
- 33Paragraph 33
- 34Paragraph 34
- 35Paragraph 35
- 36Paragraph 36
- 37Paragraph 37
- 38Paragraph 38
- Social Security (Contributions) Regulations 2001
- 39Paragraph 39
- Schedule 3: Entrepreneurs' relief
- Part 1: Reduction in lifetime limit
- Reduction in lifetime limit
- 1Paragraph 1
- Commencement
- 2Paragraph 2
- Anti-forestalling: unconditional contracts
- 3Paragraph 3
- Anti-forestalling: reorganisations of share capital
- 4Paragraph 4
- Anti-forestalling: exchanges of securities etc
- 5Paragraph 5
- Interpretation
- 6Paragraph 6
- Part 2: Re-naming the relief
- 7Paragraph 7
- 8Paragraph 8
- Schedule 4: Corporate capital losses
- Part 1: Corporate capital loss restriction
- Restriction on deduction from chargeable gains: main provisions
- 1Paragraph 1
- 2Paragraph 2
- 3Paragraph 3
- 4Paragraph 4
- 5Paragraph 5
- 6Paragraph 6
- 7Paragraph 7
- Insolvent companies
- 8Paragraph 8
- 9Paragraph 9
- Companies without a source of chargeable income
- 10Paragraph 10
- Offshore collective investment vehicles
- 11Paragraph 11
- Insurance companies: ring fence
- 12Paragraph 12
- 13Paragraph 13
- 14Paragraph 14
- 15Paragraph 15
- Oil activities: ring fence
- 16Paragraph 16
- Clogged losses
- 17Paragraph 17
- Pre-entry losses
- 18Paragraph 18
- Real estate investment trusts
- 19Paragraph 19
- 20Paragraph 20
- 21Paragraph 21
- 22Paragraph 22
- Counteraction of avoidance arrangements
- 23Paragraph 23
- Minor and consequential amendments to Part 7ZA of CTA 2010
- 24Paragraph 24
- 25Paragraph 25
- 26Paragraph 26
- 27Paragraph 27
- 28Paragraph 28
- 29Paragraph 29
- 30Paragraph 30
- 31Paragraph 31
- 32Paragraph 32
- 33Paragraph 33
- 34Paragraph 34
- 35Paragraph 35
- Minor and consequential amendments to Part 7A of CTA 2010
- 36Paragraph 36
- 37Paragraph 37
- 38Paragraph 38
- Part 2: Corporate capital loss deductions: miscellaneous provision
- Companies without a source of chargeable income: carry back of losses
- 39Paragraph 39
- Insurance companies: minor amendments to TCGA 1992 and FA 2012
- 40Paragraph 40
- 41Paragraph 41
- Part 3: Commencement and anti-forestalling provision
- Commencement
- 42Paragraph 42
- 43Paragraph 43
- 44Paragraph 44
- 45Paragraph 45
- Anti-forestalling provision
- 46Paragraph 46
- Schedule 5: Structures and buildings allowances
- Introduction
- 1Paragraph 1
- Research and development allowances
- 2Paragraph 2
- Contribution allowances
- 3Paragraph 3
- Minor amendments
- 4Paragraph 4
- 5Paragraph 5
- 6Paragraph 6
- 7Paragraph 7
- Commencement
- 8Paragraph 8
- 9Paragraph 9
- 10Paragraph 10
- Schedule 6: Non-UK resident companies carrying on UK property businesses etc
- Calculation of non-trading profits and deficits from loan relationships or derivative contracts
- 1Paragraph 1
- 2Paragraph 2
- Debits referable to times before UK property business etc is carried on
- 3Paragraph 3
- 4Paragraph 4
- 5Paragraph 5
- Duty to notify chargeability to corporation tax: exceptions
- 6Paragraph 6
- 7Paragraph 7
- Period for making election under regulation 6A of the Disregard Regulations
- 8Paragraph 8
- 9Paragraph 9
- Commencement
- 10Paragraph 10
- 11Paragraph 11
- Schedule 7: CT payment plans for tax on certain transactions with EEA residents
- CT payment plans
- 1Paragraph 1
- 2Paragraph 2
- Penalties
- 3Paragraph 3
- Commencement
- 4Paragraph 4
- Power of repeal
- 5Paragraph 5
- Schedule 8: Digital services tax: returns, enquiries, assessments and appeals
- Part 1: Introduction
- 1Paragraph 1
- Part 2: DST returns
- DST returns
- 2Paragraph 2
- Amendment of return by responsible member
- 3Paragraph 3
- Part 3: Duty to keep and preserve records
- Duty to keep and preserve records
- 4Paragraph 4
- Preservation of information etc
- 5Paragraph 5
- Part 4: Enquiry into return
- Notice of enquiry
- 6Paragraph 6
- Scope of enquiry
- 7Paragraph 7
- Amendment of self-assessment during enquiry to prevent loss of tax
- 8Paragraph 8
- Amendment of return by responsible member during enquiry
- 9Paragraph 9
- Referral of questions to the tribunal during enquiry
- 10Paragraph 10
- Withdrawal of notice of referral
- 11Paragraph 11
- Effect of referral on enquiry
- 12Paragraph 12
- Effect of determination
- 13Paragraph 13
- Completion of enquiry
- 14Paragraph 14
- Direction to complete enquiry
- 15Paragraph 15
- Part 5: HMRC determinations
- Determination of tax chargeable if no return delivered
- 16Paragraph 16
- Determination to have effect as a self-assessment
- 17Paragraph 17
- Determination superseded by actual self-assessment
- 18Paragraph 18
- Part 6: HMRC assessments
- Assessments where loss of tax discovered
- 19Paragraph 19
- Restrictions on assessments
- 20Paragraph 20
- Time limits for discovery assessments
- 21Paragraph 21
- Assessment procedure etc
- 22Paragraph 22
- Liability to amounts charged by way of discovery assessment
- 23Paragraph 23
- Part 7: Relief in case of overpaid tax
- Claim for relief for overpaid tax
- 24Paragraph 24
- Making a claim
- 25Paragraph 25
- Cases in which Commissioners not liable to give effect to claim
- 26Paragraph 26
- Power to enquire into claims
- 27Paragraph 27
- Completion of enquiry into claim etc
- 28Paragraph 28
- Assessment for excessive repayment etc
- 29Paragraph 29
- Supplementary assessments
- 30Paragraph 30
- Further provision about assessments under paragraphs 29 and 30
- 31Paragraph 31
- Time limits for assessments
- 32Paragraph 32
- Part 8: Appeals against HMRC decisions on tax
- Right of appeal
- 33Paragraph 33
- Notice of appeal
- 34Paragraph 34
- Late notice of appeal
- 35Paragraph 35
- Steps that may be taken following notice of appeal
- 36Paragraph 36
- Right of appellant to require review
- 37Paragraph 37
- Offer of review by HMRC
- 38Paragraph 38
- Nature of review
- 39Paragraph 39
- Effect of conclusions of review
- 40Paragraph 40
- Notifying appeal to tribunal after appellant has required review
- 41Paragraph 41
- Notifying appeal to tribunal after HMRC have offered review
- 42Paragraph 42
- Interpretation of paragraphs 36 to 42
- 43Paragraph 43
- Settling of appeals by agreement
- 44Paragraph 44
- Appeal does not postpone recovery of tax
- 45Paragraph 45
- Application for payment of tax to be postponed
- 46Paragraph 46
- Agreement to postpone payment of tax
- 47Paragraph 47
- Assessments and self-assessments
- 48Paragraph 48
- Payment of tax where appeal has been determined
- 49Paragraph 49
- Payment of tax where there is a further appeal
- 50Paragraph 50
- Tribunal determinations
- 51Paragraph 51
- Part 9: Penalties
- Failure to deliver return: flat-rate penalty
- 52Paragraph 52
- Failure to deliver return: tax-related penalty
- 53Paragraph 53
- Failure to deliver a return: reasonable excuse
- 54Paragraph 54
- Failure to keep and preserve records: penalty
- 55Paragraph 55
- Assessment of penalty, etc
- 56Paragraph 56
- Special reduction
- 57Paragraph 57
- Right to appeal against penalty
- 58Paragraph 58
- Procedure on appeal against penalty
- 59Paragraph 59
- Payments in respect of penalties
- 60Paragraph 60
- Schedule 9: DST payment notices
- Introduction
- 1Paragraph 1
- Payment notice: effect
- 2Paragraph 2
- Payment notice: appeals
- 3Paragraph 3
- Payment notices: effect of making payment etc
- 4Paragraph 4
- Schedule 10: Digital services tax: minor and consequential amendments
- Provisional Collection of Taxes Act 1968
- 1Paragraph 1
- FA 1989
- 2Paragraph 2
- FA 2007
- 3Paragraph 3
- FA 2008
- 4Paragraph 4
- 5Paragraph 5
- 6Paragraph 6
- Schedule 11: Private pleasure craft
- Amendments of HODA 1979
- 1Paragraph 1
- 2Paragraph 2
- 3Paragraph 3
- 4Paragraph 4
- 5Paragraph 5
- 6Paragraph 6
- 7Paragraph 7
- 8Paragraph 8
- 9Paragraph 9
- 10Paragraph 10
- 11Paragraph 11
- 12Paragraph 12
- 13Paragraph 13
- 14Paragraph 14
- Other amendments
- 15Paragraph 15
- 16Paragraph 16
- 17Paragraph 17
- General
- 18Paragraph 18
- 19Paragraph 19
- 20Paragraph 20
- 21Paragraph 21
- 22Paragraph 22
- 23Paragraph 23
- Schedule 12: Carbon emissions tax Repealed
- Introduction Repealed
- 1Paragraph 1 Repealed
- Power to set emissions allowance Repealed
- 2Paragraph 2 Repealed
- Power to make further provision by regulations Repealed
- 3Paragraph 3 Repealed
- 4Paragraph 4 Repealed
- 5Paragraph 5 Repealed
- 6Paragraph 6 Repealed
- Interpretation Repealed
- 7Paragraph 7 Repealed
- Commencement and transitional provision Repealed
- 8Paragraph 8 Repealed
- Penalty for failure to make payments on time Not yet in force
- 9Paragraph 9 Not yet in force
- Commencement Repealed
- 10Paragraph 10 Repealed
- Schedule 13: Joint and several liability of company directors etc
- Introduction
- 1Paragraph 1
- Tax avoidance and tax evasion cases
- 2Paragraph 2
- Repeated insolvency and non-payment cases
- 3Paragraph 3
- 4Paragraph 4
- Cases involving penalty for facilitating avoidance or evasion
- 5Paragraph 5
- “Tax-avoidance arrangements”
- 6Paragraph 6
- “Tax-evasive conduct”
- 7Paragraph 7
- “Insolvency procedure” etc
- 8Paragraph 8
- Interaction with penalties
- 9Paragraph 9
- Withdrawal or modification of notice
- 10Paragraph 10
- Right of review
- 11Paragraph 11
- Reviews under paragraph 11
- 12Paragraph 12
- Right of appeal
- 13Paragraph 13
- Appeals under paragraph 13
- 14Paragraph 14
- Appeal in respect of liability of company
- 15Paragraph 15
- Proceedings for determination of penalty to be imposed on company
- 16Paragraph 16
- Cases where company has ceased to exist
- 17Paragraph 17
- Application to limited liability partnerships
- 18Paragraph 18
- Interpretation
- 19Paragraph 19
- Schedule 14: Amendments relating to the operation of the GAAR
- Introduction
- 1Paragraph 1
- Protecting adjustments under the GAAR before time limits expire
- 2Paragraph 2
- 3Paragraph 3
- 4Paragraph 4
- 5Paragraph 5
- 6Paragraph 6
- 7Paragraph 7
- Minor amendments
- 8Paragraph 8
- 9Paragraph 9
- Commencement
- 10Paragraph 10
- 11Paragraph 11
- 12Paragraph 12
- 13Paragraph 13
- 14Paragraph 14
- 15Paragraph 15
- Schedule 15: Tax relief for scheme payments etc
- Part 1: Income tax and other related relief
- Introductory
- 1Paragraph 1
- Qualifying payments
- 2Paragraph 2
- Exemption from income tax
- 3Paragraph 3
- Exemptions from capital gains tax
- 4Paragraph 4
- Relief from inheritance tax
- 5Paragraph 5
- Part 2: Corporation tax and other related relief
- 6Introductory
- 7Relevant compensation payments
- 8Relevant onward payments
- 9Exemption from corporation tax
- 10Exemption from income tax and capital gains tax
- 11Power to make further provision
- 12Regulations: general
- 13Interpretation
- Schedule 16: Taxation of coronavirus support payments
- Accounting for coronavirus support payments referable to a business
- 1Paragraph 1
- Amounts not referable to activities of a business which is being carried on
- 2Paragraph 2
- Amounts referable to businesses in certain cases
- 3Paragraph 3
- Exemptions, reliefs and deductions
- 4Paragraph 4
- Charge where employment costs deductible by another
- 5Paragraph 5
- Charge where no business carried on
- 6Paragraph 6
- Modification of the Tax Acts
- 7Paragraph 7
- Charge if person not entitled to coronavirus support payment
- 8Paragraph 8
- Assessments of income tax chargeable under paragraph 8
- 9Paragraph 9
- Calculation of income tax liability
- 10Paragraph 10
- Calculation of tax liability: companies chargeable to corporation tax
- 11Paragraph 11
- Notification of liability under paragraph 8
- 12Paragraph 12
- Penalty for failure to notify: knowledge of non-entitlement to payment
- 13Paragraph 13
- Penalties: partnerships
- 14Paragraph 14
- Liability of officers of insolvent companies
- 15Paragraph 15