Finance Act 2024

2024 c. 3 · Enacted 22 February 2024 · Extends to United Kingdom

Contents

1. Part 1: Income tax and corporation tax
2. Chapter 1: Reliefs for businesses etc
3. Capital allowances for companies
4. 1Permanent full expensing etc for expenditure on plant or machinery
5. Research and development
6. 2New regime for research and development carried out by companies
7. Films, television programmes, video games etc
8. 3Films, television programmes and video games produced by companies
9. 4Theatrical productions made by companies
10. 5Orchestral concerts produced by companies
11. 6Museum and gallery exhibitions produced by companies
12. 7Sections 3 to 6: administration of reliefs
13. Real Estate Investment Trusts
14. 8Miscellaneous amendments relating to REITs
15. Tonnage tax
16. 9Managers of ships
17. 10Increase in capital allowances limit for ship leasing
18. Other reliefs
19. 11Extension of EIS relief and VCT relief to shares issued before 6 April 2035
20. 12Relief for payments of compensation by government etc to companies
21. 13Enterprise management incentives: time limits
22. Chapter 2: Pensions
23. 14Provision in connection with abolition of the lifetime allowance charge
24. 15MPs’ pension scheme etc: rectification of discrimination
25. Chapter 3: Other income tax measures
26. Calculation of trade profits etc
27. 16Provision relating to the cash basis
28. Other
29. 17PAYE regulations: special types of payer or payee
30. 18Carer’s allowance supplement: correction of statutory reference
31. Part 2: Other taxes
32. Stamp duty and stamp duty reserve tax
33. 19Growth market exemption: qualifying UK multilateral trading facilities etc
34. 20Capital-raising arrangements etc
35. Electricity generator levy
36. 21New investment exemption
37. Pillar Two
38. 22Ensuring consistency of Parts 3 and 4 of F(No.2)A 2023 with OECD rules etc
39. Excise duty rates
40. 23Rates of tobacco products duty
41. 24Rates of vehicle excise duty
42. 25Rates of air passenger duty
43. Miscellaneous VAT and excise measures
44. 26Rebate on heavy oil and certain bioblends used for heating
45. 27Vehicle excise duty exemption for foreign vehicles
46. 28Interpretation of VAT and excise law
47. Environmental taxes
48. 29Rates of landfill tax
49. 30Rate of aggregates levy
50. 31Rate of plastic packaging tax
51. Part 3: Miscellaneous and final
52. Evasion, avoidance etc
53. 32Increase in maximum terms of imprisonment for tax offences
54. 33Disqualification of directors etc promoting tax avoidance schemes
55. 34Promoters of tax avoidance: failure to comply with stop notice etc
56. 35Construction industry scheme: gross payment status
57. Administration
58. 36Additional information to be contained in returns under TMA 1970 etc
59. 37Commencement of rules imposing penalties for failure to make returns etc
60. Final
61. 38Abbreviations used in Act
62. 39Short title
63. Schedule 1: Research and development
64. Part 1: Main amendments of CTA 2009
65. 1Paragraph 1
66. 2Paragraph 2
67. 3Paragraph 3
68. 4Paragraph 4
69. 5Paragraph 5
70. 6Paragraph 6
71. 7Paragraph 7
72. 8Paragraph 8
73. 9Paragraph 9
74. Part 2: Consequential amendments
75. 10FA 1998
76. 11FA 2007
77. 12CTA 2009
78. 13CTA 2010
79. 14TIOPA 2010
80. 15FA 2013
81. Part 3: Commencement and transitional and transitory provision
82. 16General commencement of Parts 1 and 2
83. 17Assignments and nominations
84. 18Avoidance of overlaps and gaps in entitlement during transition
85. 19Transitional provision relating to claim notifications
86. 20Transitional provision relating to the R&D intensity condition
87. 21Higher rate of payable credit for R&D-intensive SMEs from 1 April 2023
88. Schedule 2: Films, television programmes and video games
89. Part 1: New regime for films, television programmes and video games
90. 1Paragraph 1
91. Part 2: Amendments consequential on Part 1
92. 2Films Act 1985
93. 3FA 1998
94. 4FA 2007
95. 5CTA 2009
96. 6CTA 2010
97. Part 3: Repeal of existing regimes for films, television programmes and video games
98. 7Paragraph 7
99. Part 4: Amendments consequential on Part 3
100. 8Films Act 1985
101. 9ICTA
102. 10FA 1998
103. 11FA 2007
104. 12CTA 2009
105. 13FA 2009
106. 14CTA 2010
107. 15FA 2016
108. Part 5: Commencement and transitional provision
109. 16General commencement
110. 17Closure of existing regimes to new productions
111. 18Opting into new regime during transitional period
112. 19Productions not moving into new regime
113. 20Continuity between regimes: taxation as separate trade
114. 21Continuity between regimes: calculation of expenditure credit
115. 22Continuity between regimes: British certification
116. 23Continuity between regimes: UK expenditure (films and television programmes)
117. 24Transition of video games from European expenditure condition to UK expenditure condition
118. 24ACalculation of expenditure credit where company previously benefiting from video games tax relief
119. 25Transfer of terminal losses between productions in existing and new regimes
120. Schedule 3: Theatrical productions
121. Part 1: Amendments of Part 15C of CTA 2009
122. 1Introduction
123. 2Meaning of “theatrical production”
124. 3Meaning of “core expenditure”
125. 4Provision to emphasise that capital expenditure does not generally qualify for relief
126. 5UK expenditure threshold to replace EEA expenditure threshold
127. 6EEA expenditure not to qualify for relief
128. 7Profit element of non-arm's-length payments to connected parties not to qualify for relief
129. 8Amendment of R&D exclusion
130. 9Restriction where tax liabilities outstanding: meaning of “payment period”
131. 10Relief not to be available for companies in insolvency
132. Part 2: Changes from European to UK expenditure: transitional provision
133. 11Transitional provision in relation to paragraph 5
134. 12Transitional provision in relation to paragraph 6
135. Schedule 4: Orchestral concerts
136. Part 1: Amendments of Part 15D of CTA 2009
137. 1Introduction
138. 2Time of election for orchestral concerts to be treated as a series
139. 3Meaning of “core expenditure”
140. 4Provision to emphasise that capital expenditure does not generally qualify for relief
141. 5UK expenditure threshold to replace EEA expenditure threshold
142. 6EEA expenditure not to qualify for relief
143. 7Profit element of non-arm's-length payments to connected parties not to qualify for relief
144. 8Amendment of exclusion for other reliefs
145. 9Restriction where tax liabilities outstanding: meaning of “payment period”
146. 10Relief not to be available for companies in insolvency
147. Part 2: Changes from European to UK expenditure: transitional provision
148. 11Transitional provision in relation to paragraph 5
149. 12Transitional provision in relation to paragraph 6
150. Schedule 5: Museum and gallery exhibitions
151. Part 1: Amendments of Part 15E of CTA 2009
152. 1Introduction
153. 2Museum and gallery exhibitions not to be wholly remote
154. 3Meaning of “core expenditure”
155. 4UK expenditure threshold to replace European expenditure threshold
156. 5EEA expenditure not to qualify for relief
157. 6Profit element of non-arm's-length payments to connected parties not to qualify for relief
158. 7Amendment of exclusion for R&D relief and other creative sector reliefs
159. 8Restriction where tax liabilities outstanding: meaning of “payment period”
160. 9Relief not to be available for companies in insolvency
161. Part 2: Changes from European to UK expenditure: transitional provision
162. 10Transitional provision in relation to paragraph 4
163. 11Transitional provision in relation to paragraph 5
164. Schedule 6: Administration of creative sector reliefs
165. 1Power to recover overpayments
166. 2Time limit for claims
167. 3Supporting information
168. Schedule 7: Real Estate Investment Trusts
169. 1Amendment of CTA 2010
170. 2CoACS to be institutional investors
171. 3Non-close condition
172. 4Certain institutional investors required to meet GDO or non-close condition
173. 5Paragraph 4: transitional provision
174. 6Insurance companies may be included in group UK REIT
175. 7Property financing costs
176. 8Single property rule
177. 9Disposal of rights or interests in UK property rich funds
178. 10Holders of excessive rights
179. 11Corporate interest restriction and disposal of interests in UK property rich companies
180. Schedule 8: Tonnage tax
181. 1Introduction
182. 2Qualifying companies to include companies managing qualifying ships
183. 3Daily profits of managed ships
184. 4Tonnage tax activities include activities in managing ships
185. 5Effect of temporarily ceasing to manage or operate qualifying ships
186. 6Training requirement
187. 7Disapplication of 75% limit for ship managers
188. 8Commencement
189. Schedule 9: Pensions
190. Part 1: Abolition of lifetime allowance charge
191. 1Paragraph 1
192. 2Paragraph 2
193. 3Paragraph 3
194. 4Paragraph 4
195. 5Paragraph 5
196. 6Paragraph 6
197. 7Paragraph 7
198. 8Paragraph 8
199. 9Paragraph 9
200. 10Paragraph 10
201. 11Paragraph 11
202. 12Paragraph 12
203. 13Paragraph 13
204. 14Paragraph 14
205. Part 2: Taxation of lump sums
206. 15Amendments of Part 4 of FA 2004 (pension schemes etc)
207. 16Amendments of Part 4 of FA 2004 (pension schemes etc)
208. 17Amendments of Part 4 of FA 2004 (pension schemes etc)
209. 18Amendments of Part 4 of FA 2004 (pension schemes etc)
210. 19Amendments of Part 4 of FA 2004 (pension schemes etc)
211. 20Amendments of Part 4 of FA 2004 (pension schemes etc)
212. 21Amendments of Part 4 of FA 2004 (pension schemes etc)
213. 22Amendments of Part 4 of FA 2004 (pension schemes etc)
214. 23Amendments of Part 4 of FA 2004 (pension schemes etc)
215. 24Amendments of Part 4 of FA 2004 (pension schemes etc)
216. 25Amendments of Part 4 of FA 2004 (pension schemes etc)
217. 26Amendments of Part 4 of FA 2004 (pension schemes etc)
218. 27Amendments of Part 4 of FA 2004 (pension schemes etc)
219. 28Amendments of Part 4 of FA 2004 (pension schemes etc)
220. 29Amendments of Part 4 of FA 2004 (pension schemes etc)
221. 30Amendments of Part 4 of FA 2004 (pension schemes etc)
222. 31Amendments of Part 4 of FA 2004 (pension schemes etc)
223. 32Amendments of Part 4 of FA 2004 (pension schemes etc)
224. 33Amendments of Part 4 of FA 2004 (pension schemes etc)
225. 34Amendments of Part 4 of FA 2004 (pension schemes etc)
226. 35Amendments of Part 4 of FA 2004 (pension schemes etc)
227. 36Amendments of Part 4 of FA 2004 (pension schemes etc)
228. 37Amendments of Part 4 of FA 2004 (pension schemes etc)
229. 38Amendments of Part 9 of ITEPA 2003
230. 39Amendments of Part 9 of ITEPA 2003
231. 40Amendments of Part 9 of ITEPA 2003
232. 41Amendments of Part 9 of ITEPA 2003
233. 42Amendments of the Registered Pension Schemes (Authorised Payments) Regulations 2009
234. Part 3: Non-UK schemes
235. 43Amendments of Part 4 of FA 2004
236. 44Amendments of Part 4 of FA 2004
237. 45Amendments of Part 4 of FA 2004
238. 46Amendments of Part 4 of FA 2004
239. 47Amendments of Part 4 of FA 2004
240. 48Amendments of Part 4 of FA 2004
241. 49Amendments of Part 4 of FA 2004
242. 50Amendments of Part 4 of FA 2004
243. 51Amendments of Part 4 of FA 2004
244. 52Amendments of Part 4 of FA 2004
245. 53Amendments of Part 4 of FA 2004
246. 54Amendments of Part 4 of FA 2004
247. 55Amendments of Part 4 of FA 2004
248. 56Amendments of Part 4 of FA 2004
249. 57Amendments of Part 4 of FA 2004
250. 58Amendments of Part 4 of FA 2004
251. 59Amendments of Part 4 of FA 2004
252. 60Amendments of Part 4 of FA 2004
253. 61Amendments of Chapter 4 of Part 9 of ITEPA 2003
254. 62Amendments of the Pension Schemes (Application of UK Provisions to Relevant Non-UK Schemes) Regulations 2006
255. Part 4: Transitional protections
256. 63Amendments of Schedule 29 to FA 2004
257. 64Amendments of Schedule 34 to FA 2004
258. 65Amendments of Part 2 of Schedule 36 to FA 2004
259. 66Amendments of Part 2 of Schedule 36 to FA 2004
260. 67Amendments of Part 2 of Schedule 36 to FA 2004
261. 68Amendments of Part 2 of Schedule 36 to FA 2004
262. 69Amendments of Part 2 of Schedule 36 to FA 2004
263. 70Amendments of Part 2 of Schedule 36 to FA 2004
264. 71Amendments of Part 2 of Schedule 36 to FA 2004
265. 72Amendments of Part 2 of Schedule 36 to FA 2004
266. 73Amendments of Part 2 of Schedule 36 to FA 2004
267. 74Amendments of Part 2 of Schedule 36 to FA 2004
268. 75Amendments of Part 2 of Schedule 36 to FA 2004
269. 76Amendments of Part 2 of Schedule 36 to FA 2004
270. 77Amendments of Part 2 of Schedule 36 to FA 2004
271. 78Amendments of Part 2 of Schedule 36 to FA 2004
272. 79Amendments of Part 3 of Schedule 36 to FA 2004
273. 80Amendments of Part 3 of Schedule 36 to FA 2004
274. 81Amendments of Part 3 of Schedule 36 to FA 2004
275. 82Amendments of Part 3 of Schedule 36 to FA 2004
276. 83Amendments of Part 3 of Schedule 36 to FA 2004
277. 84Amendments of Part 3 of Schedule 36 to FA 2004
278. 85Amendments of Part 3 of Schedule 36 to FA 2004
279. 86Amendments of Part 3 of Schedule 36 to FA 2004
280. 87Amendments of Part 3 of Schedule 36 to FA 2004
281. 88Amendments of Part 3 of Schedule 36 to FA 2004
282. 89Amendment of Part 4 of Schedule 36 to FA 2004
283. 90Amendments of Schedule 18 to FA 2011
284. 91Amendments of Schedule 22 to FA 2013
285. 92Amendments of Schedule 6 to FA 2014
286. 93Amendments of Schedule 4 to FA 2016
287. 94Amendments of the Registered Pension Schemes (Enhanced Lifetime Allowance) Regulations 2006
288. 95Amendments of the Taxation of Pension Schemes (Transitional Provisions) Order 2006
289. 96Amendments of the Registered Pension Schemes (Lifetime Allowance Transitional Protection) Regulations 2011
290. 97Amendments of the Registered Pension Schemes and Relieved Non-UK Pension Schemes (Lifetime Allowance Transitional Protection) (Notification) Regulations 2013
291. 98Amendments of the Registered Pension Schemes and Relieved Non-UK Pension Schemes (Lifetime Allowance Transitional Protection) (Individual Protection 2014 Notification) Regulations 2014
292. Part 5: Provision of information
293. 99Amendments of Part 4 of FA 2004
294. 100Amendments of Part 4 of FA 2004
295. 101Amendments of Part 4 of FA 2004
296. 102Amendments of Part 4 of FA 2004
297. 103Amendments of Part 4 of FA 2004
298. 104Amendments of the Registered Pension Schemes (Provision of Information) Regulations 2006
299. 105Amendments of the Registered Pension Schemes (Provision of Information) Regulations 2006
300. 106Amendments of the Registered Pension Schemes (Provision of Information) Regulations 2006
301. 107Amendments of the Registered Pension Schemes (Provision of Information) Regulations 2006
302. 108Amendments of the Registered Pension Schemes (Provision of Information) Regulations 2006
303. 109Amendments of the Registered Pension Schemes (Provision of Information) Regulations 2006
304. 110Amendments of the Registered Pension Schemes (Provision of Information) Regulations 2006
305. 111Amendments of the Registered Pension Schemes (Provision of Information) Regulations 2006
306. 112Amendments of the Registered Pension Schemes (Provision of Information) Regulations 2006
307. 113Amendments of the Registered Pension Schemes (Provision of Information) Regulations 2006
308. 114Amendments of the Registered Pension Schemes (Provision of Information) Regulations 2006
309. 115Amendments of the Registered Pension Schemes (Provision of Information) Regulations 2006
310. 116Amendments of the Registered Pension Schemes (Provision of Information) Regulations 2006
311. 117Amendments of the Registered Pension Schemes (Provision of Information) Regulations 2006
312. 118Amendments of the Registered Pension Schemes (Provision of Information) Regulations 2006
313. 119Amendments of the Registered Pension Schemes (Provision of Information) Regulations 2006
314. 120Amendments of the Registered Pension Schemes (Provision of Information) Regulations 2006
315. 121Amendments of the Registered Pension Schemes (Provision of Information) Regulations 2006
316. 122Amendments of the Registered Pension Schemes (Provision of Information) Regulations 2006
317. 123Amendments of the Registered Pension Schemes and Overseas Pension Schemes (Electronic Communication of Returns and Information) Regulations 2006
318. Part 6: Commencement and transitional provision etc
319. 124Commencement
320. 125Availability of individual’s lump sum allowance
321. 126Availability of individual’s lump sum and death benefit allowance
322. 127Transitional tax-free amount certificates
323. 127AAvailability of member’s overseas transfer allowance
324. 127BProvision of information by individuals to certification administrators
325. 128Provision of information by scheme administrators to members
326. 129Paragraphs 125 to 128: interpretation
327. 130Statements for certain members who would not otherwise receive one in the tax year 2024-25
328. 130ALump sums paid on or after 6 April 2024 where entitlement arose before that date
329. 131Lump sum death benefits paid on or after 6 April 2024 that crystallised before that date
330. 132Modifications of scheme rules
331. 132AContinuity of the law
332. 133Power to make further transitional provision
333. 134Power to make further provision in connection with the abolition of lifetime allowance charge
334. Schedule 10: Calculation of trade profits etc
335. Part 1: Main provisions
336. 1Introduction of cash basis default
337. 2Introduction of cash basis default
338. 3Introduction of cash basis default
339. 4Introduction of cash basis default
340. 5Introduction of cash basis default
341. 6Removal of turnover restrictions etc
342. 7Removal of interest payments restriction
343. 8Removal of loss restrictions
344. Part 2: Minor and consequential amendments
345. Chapter 1: Amendments of ITTOIA 2005
346. 9Other amendments of Chapter 3 of Part 2
347. 10Other amendments of Chapter 3 of Part 2
348. 11Other amendments of Chapter 3 of Part 2
349. 12Other amendments of Chapter 3 of Part 2
350. 13Other amendments of Chapter 3 of Part 2
351. 14Other amendments of Chapter 3 of Part 2
352. 15Amendments of other provisions
353. 16Amendments of other provisions
354. 17Amendments of other provisions
355. 18Amendments of other provisions
356. 19Amendments of other provisions
357. 20Amendments of other provisions
358. 21Amendments of other provisions
359. 22Amendments of other provisions
360. 23Amendments of other provisions
361. 24Amendments of other provisions
362. 25Amendments of other provisions
363. 26Amendments of other provisions
364. 27Amendments of other provisions
365. 28Amendments of other provisions
366. 29Amendments of other provisions
367. 30Amendments of other provisions
368. 31Amendments of other provisions
369. 32Amendments of other provisions
370. 33Amendments of other provisions
371. 34Amendments of other provisions
372. 35Amendments of other provisions
373. Chapter 2: Amendments of other Acts
374. 36TMA 1970
375. 37TCGA 1992
376. 38CAA 2001
377. 39CAA 2001
378. 40CAA 2001
379. 41CAA 2001
380. 42CAA 2001
381. 43CAA 2001
382. 44CAA 2001
383. 45ITA 2007
384. 46Consequential repeals
385. Part 3: Commencement and transitional provision
386. 47Commencement
387. 48Transitional provision
388. 49Transitional provision
389. 50Transitional provision
390. Schedule 11: Capital-raising arrangements etc
391. Part 1: Depositary receipts and clearance services
392. 1Introduction
393. 2Stamp duty
394. 3Stamp duty
395. 4Stamp duty
396. 5Stamp duty
397. 6Stamp duty reserve tax
398. 7Stamp duty reserve tax
399. 8Stamp duty reserve tax
400. 9Stamp duty reserve tax
401. 10Stamp duty reserve tax
402. 11Stamp duty reserve tax
403. 12Stamp duty reserve tax
404. 13Stamp duty reserve tax
405. 14Stamp duty reserve tax
406. 15Stamp duty reserve tax
407. 16Stamp duty reserve tax
408. 17Stamp duty reserve tax
409. Part 2: Bearer instruments
410. 18Paragraph 18
411. 19Paragraph 19
412. Part 3: Minor and consequential amendments
413. 20Paragraph 20
414. 21Paragraph 21
415. 22Paragraph 22
416. 23Paragraph 23
417. 24Paragraph 24
418. Part 4: Commencement and transitional provision
419. 25Commencement
420. 26Transitional provision: depositary receipts: exception from SDRT for replacement securities
421. 27Transitional provision: clearance services: exception from SDRT for replacement securities
422. 28Transitional provision: bearer instruments
423. 29Transitional provision: warrants to purchase Government stock etc
424. Schedule 12: Pillar Two
425. Part 1: Introduction
426. 1Paragraph 1
427. Part 2: Multinational top-up tax
428. 2Partnerships
429. 3Qualifying non-profit subsidiaries
430. 4Charging permanent establishments of intermediate/partially-owned parent members
431. 5De-merged groups
432. 6Adjustment for changes in accounting policies and prior period errors
433. 7Pension expense
434. 8Tax credits
435. 9Adjustments for companies in distress
436. 10Adjustments where life assurance business carried on
437. 11Exclusion of certain insurance reserve movement expense
438. 12Permanent establishment income and expense attribution
439. 13Election to spread certain capital gains
440. 14Transparent entities etc
441. 15Covered taxes
442. 16Tax equity partnerships
443. 17Reallocation of tax expense
444. 18Controlled foreign company tax regimes
445. 19Blended CFC regimes
446. 20Qualifying foreign tax credits (substitute loss carry forward assets)
447. 21Substance based income exclusion: inter-jurisdictional employees and assets
448. 22Substance based income exclusion: inclusion of payroll costs and assets voluntary
449. 23Substance based income exclusion: impairment losses
450. 24Substance based income exclusion: dual use assets
451. 25Substance based income exclusion: leases
452. 26Substance based income exclusion: power to make further provision
453. 27Transfer of assets or liabilities to a member of a multinational group
454. 28Investment entity tax transparency election
455. 29Meaning of country-by-country report
456. 30Joint ventures
457. 31Insurance investment entities
458. 32Location of entities
459. 33Currency
460. 34Application of Pillar Two rules to members of a group
461. 35Qualifying domestic top-up tax not treated as accruing
462. 36Consistency with Pillar Two rules
463. 37Overpaid tax
464. 38Intragroup transfers before entry into regime
465. 39Transitional safe harbour
466. 40Transitional reporting election
467. 41Qualifying domestic top-up tax safe harbour
468. Part 3: Domestic top-up tax
469. 42Securitisation entities
470. 43Investment entities
471. 44Treatment of qualifying refundable tax credits
472. 45Effect of becoming subject to Pillar Two rules
473. 46Dividends from protected cell companies
474. 47Consistency with Pillar Two rules
475. Part 4: Minor and technical changes
476. 48Chapter 2 of Part 3 (qualifying multinational groups and their members)
477. 49Chapter 3 of Part 3 (effective tax rate)
478. 50Chapter 4 of Part 3 (calculation of adjusted profits)
479. 51Chapter 5 of Part 3 (covered tax balance)
480. 52Chapter 6 of Part 3 (calculation of top-up amounts)
481. 53Chapter 7 of Part 3 (allocating top-up amounts)
482. 54Chapter 8 of Part 3 (further adjustments)
483. 55Chapter 9 of Part 3 (special provision for investment entities etc)
484. 56Chapter 10 of Part 3 (definitions etc)
485. 57Part 4 (domestic top-up tax)
486. 58Schedules 14 to 17
487. Schedule 13: Promotion of tax avoidance schemes
488. 1Disqualification for promoting tax avoidance
489. 2Minor and consequential amendments
490. 3Minor and consequential amendments
491. 4Extent
492. 5Practice and procedure
493. 6Interpretation