OpenLegislation

Finance (No. 2) Act 2015 in Scotland

2015 c. 33 · Enacted 18 November 2015 · Extends to United Kingdom

Up to date with all changes known to legislation.gov.uk, revised to 22 July 2020.

An Act to grant certain duties, to alter other duties, and to amend the law relating to the National Debt and the Public Revenue, and to make further provision in connection with finance.

[18th November 2015]

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

  1. Part 1: Principal rates etc
  2. Tax lock
  3. 1Income tax lock
  4. 2VAT lock
  5. Personal allowance and basic rate limit for income tax
  6. 3Personal allowance and national minimum wage Repealed
  7. 4Personal allowance and national minimum wage: Chancellor's duties Repealed
  8. 5Personal allowance from 2016
  9. 6Basic rate limit from 2016
  10. Corporation tax
  11. 7Rate of corporation tax for financial years 2017-2020
  12. Capital allowances
  13. 8Annual investment allowance
  14. Part 2: Inheritance tax
  15. Rate bands
  16. 9Increased nil-rate band where home inherited by descendants
  17. 10Rate bands for tax years 2018-19, 2019-20 and 2020-21
  18. Settlements
  19. 11Calculation of rate of inheritance tax on settled property
  20. 12Exemption from ten-yearly charge for heritage property
  21. 13Settlements with initial interest in possession
  22. 14Distributions etc from property settled by will
  23. Interest
  24. 15Inheritance tax: interest
  25. Part 3: Banking
  26. Bank levy
  27. 16Bank levy rates for 2016 to 2021
  28. Banking companies
  29. 17Banking companies: surcharge
  30. 18Banking companies: expenses relating to compensation
  31. 19Banks established under Savings Bank (Scotland) Act 1819: loss allowance
  32. 20Definitions relating to banks
  33. Part 4: Income tax, corporation tax and capital gains tax
  34. Income tax
  35. 21Pensions: special lump sum death benefits charge
  36. 22Pensions: some lump sum death benefits taxed as pension income
  37. 23Pensions: annual allowance
  38. 24Relief for finance costs related to residential property businesses
  39. 25Enterprise investment scheme
  40. 26Venture capital trusts
  41. 27EIS, VCTs etc: excluded activities
  42. 28EIS, VCTs and EMI: meaning of “farming”
  43. 29Travel expenses of members of local authorities etc
  44. 30London Anniversary Games
  45. Corporation tax
  46. 31R&D expenditure credits: ineligible companies
  47. 32Loan relationships and derivative contracts
  48. 33Intangible fixed assets: goodwill etc
  49. 34Election of designated currency by UK resident investment company
  50. 35Group relief
  51. 36CFC charge: abolition of relief
  52. 37CFC charge: tax avoidance involving carried-forward losses
  53. 38Restitution interest payments
  54. 39Corporation tax instalment payments
  55. Income tax and corporation tax
  56. 40Changes in trading stock not made in course of trade
  57. 41Valuation of trading stock on cessation
  58. 42Transfer of intangible assets not at arm's length
  59. Income tax and capital gains tax
  60. 43Carried interest
  61. 44Disguised investment management fees
  62. 45Carried interest and disguised investment management fees: “arise”
  63. Part 5: Excise duties and other taxes
  64. Vehicle excise duty
  65. 46Vehicle excise duty
  66. Insurance premium tax
  67. 47Insurance premium tax: standard rate
  68. Aggregates levy
  69. 48Aggregates levy: restoration of exemptions
  70. Climate change levy
  71. 49CCL: removal of exemption for electricity from renewable sources
  72. Part 6: Administration and enforcement
  73. 50International agreements to improve compliance: client notification
  74. 51Enforcement by deduction from accounts
  75. Part 7: Final
  76. 53Interpretation
  77. 54Short title
  78. Schedule 1: Rate of tax charged under Chapter 3 of Part 3 IHTA 1984
  79. 1Paragraph 1
  80. 2Paragraph 2
  81. 3Paragraph 3
  82. 4Paragraph 4
  83. 5Paragraph 5
  84. 6Paragraph 6
  85. 7Paragraph 7
  86. Schedule 2: Bank levy rates for 2016 to 2021
  87. Bank levy rate for 2016
  88. 1Paragraph 1
  89. Bank levy rate for 2017
  90. 2Paragraph 2
  91. Bank levy rate for 2018
  92. 3Paragraph 3
  93. Bank levy rate for 2019
  94. 4Paragraph 4
  95. Bank levy rate for 2020
  96. 5Paragraph 5
  97. Bank levy rate for 2021
  98. 6Paragraph 6
  99. Schedule 3: Banking companies: surcharge
  100. Part 1: Main provisions
  101. 1Paragraph 1
  102. Part 2: Consequential amendments
  103. TMA 1970
  104. 2Paragraph 2
  105. FA 1998
  106. 3Paragraph 3
  107. CTA 2010
  108. 4Paragraph 4
  109. 5Paragraph 5
  110. 6Paragraph 6
  111. TIOPA 2010
  112. 7Paragraph 7
  113. 8Paragraph 8
  114. 9Paragraph 9
  115. 10Paragraph 10
  116. FA 2015
  117. 11Paragraph 11
  118. 12Paragraph 12
  119. 13Paragraph 13
  120. Part 3: Commencement
  121. Surcharge
  122. 14Paragraph 14
  123. 15Paragraph 15
  124. CFCs
  125. 16Paragraph 16
  126. Diverted profits tax
  127. 17Paragraph 17
  128. Interpretation
  129. 18Paragraph 18
  130. Schedule 4: Pensions: annual allowance
  131. Part 1: Alignment of pension input periods with tax years
  132. 1Paragraph 1
  133. 2Paragraph 2
  134. 3Paragraph 3
  135. 4Paragraph 4
  136. 5Paragraph 5
  137. Part 2: Annual allowance for, and carry-forward from, 2015-16
  138. 6Paragraph 6
  139. Part 3: Calculation of pension input amounts for periods ending in 2015-16
  140. 7Paragraph 7
  141. 8Paragraph 8
  142. 9Paragraph 9
  143. Part 4: Reduction of annual allowance for high-income individuals
  144. 10Paragraph 10
  145. Part 5: Other amendments
  146. 11Paragraph 11
  147. Schedule 5: Enterprise investment scheme
  148. Introductory
  149. 1Paragraph 1
  150. Limiting eligibility for relief to investments made before 2025
  151. 2Paragraph 2
  152. The investor
  153. 3Paragraph 3
  154. 4Paragraph 4
  155. 5Paragraph 5
  156. General requirements
  157. 6Paragraph 6
  158. 7Paragraph 7
  159. 8Paragraph 8
  160. 9Paragraph 9
  161. 10Paragraph 10
  162. 11Paragraph 11
  163. 12Paragraph 12
  164. The issuing company
  165. 13Paragraph 13
  166. 14Paragraph 14
  167. Repayment etc of share capital
  168. 15Paragraph 15
  169. Information to be provided by issuing company etc
  170. 16Paragraph 16
  171. Acquisition of issuing company
  172. 17Paragraph 17
  173. Powers to amend Part 5 of ITA 2007
  174. 18Paragraph 18
  175. “Knowledge-intensive companies”
  176. 19Paragraph 19
  177. Consequential repeals
  178. 20Paragraph 20
  179. Commencement and transitional provision
  180. 21Paragraph 21
  181. 22Paragraph 22
  182. 23Paragraph 23
  183. Schedule 6: Venture capital trusts
  184. Introductory
  185. 1Paragraph 1
  186. Limiting eligibility for relief to investments made before 2025
  187. 2Paragraph 2
  188. Requirements for the giving of VCT approval
  189. 3Paragraph 3
  190. VCT approvals
  191. 4Paragraph 4
  192. The first commercial sale condition and the no business acquisition condition
  193. 5Paragraph 5
  194. Qualifying holdings
  195. 6Paragraph 6
  196. 7Paragraph 7
  197. 8Paragraph 8
  198. 9Paragraph 9
  199. 10Paragraph 10
  200. 11Paragraph 11
  201. 12Paragraph 12
  202. 13Paragraph 13
  203. Power to amend Chapter 4 of Part 6
  204. 14Paragraph 14
  205. Interpretation of Chapter 4 of Part 6
  206. 15Paragraph 15
  207. Acquisitions for restructuring purposes
  208. 16Paragraph 16
  209. 17Paragraph 17
  210. 18Paragraph 18
  211. Power to amend Chapters 3 and 4 of Part 6 of ITA 2007
  212. 19Paragraph 19
  213. Interpretation of Part 6
  214. 20Paragraph 20
  215. Repeal of saving for investment of “protected money”
  216. 21Paragraph 21
  217. Consequential repeal
  218. 22Paragraph 22
  219. Application and transitional provision
  220. 23Paragraph 23
  221. Schedule 7: Loan relationships and derivative contracts
  222. Part 1: Loan relationships: amendments of Parts 5 and 6 of CTA 2009
  223. 1Paragraph 1
  224. 2Paragraph 2
  225. 3Paragraph 3
  226. 4Paragraph 4
  227. 5Paragraph 5
  228. 6Paragraph 6
  229. 7Paragraph 7
  230. 8Paragraph 8
  231. 9Paragraph 9
  232. 10Paragraph 10
  233. 11Paragraph 11
  234. 12Paragraph 12
  235. 13Paragraph 13
  236. 14Paragraph 14
  237. 15Paragraph 15
  238. 16Paragraph 16
  239. 17Paragraph 17
  240. 18Paragraph 18
  241. 19Paragraph 19
  242. 20Paragraph 20
  243. 21Paragraph 21
  244. 22Paragraph 22
  245. 23Paragraph 23
  246. 24Paragraph 24
  247. 25Paragraph 25
  248. 26Paragraph 26
  249. 27Paragraph 27
  250. 28Paragraph 28
  251. 29Paragraph 29
  252. 30Paragraph 30
  253. 31Paragraph 31
  254. 32Paragraph 32
  255. 33Paragraph 33
  256. 34Paragraph 34
  257. 35Paragraph 35
  258. 36Paragraph 36
  259. 37Paragraph 37
  260. 38Paragraph 38
  261. 39Paragraph 39
  262. 40Paragraph 40
  263. 41Paragraph 41
  264. 42Paragraph 42
  265. 43Paragraph 43
  266. 44Paragraph 44
  267. 45Paragraph 45
  268. 46Paragraph 46
  269. 47Paragraph 47
  270. 48Paragraph 48
  271. 49Paragraph 49
  272. 50Paragraph 50
  273. 51Paragraph 51
  274. 52Paragraph 52
  275. 53Paragraph 53
  276. 54Paragraph 54
  277. 55Paragraph 55
  278. 56Paragraph 56
  279. 57Paragraph 57
  280. 58Paragraph 58
  281. Part 2: Derivative contracts: amendments of Part 7 of CTA 2009
  282. 59Paragraph 59
  283. 60Paragraph 60
  284. 61Paragraph 61
  285. 62Paragraph 62
  286. 63Paragraph 63
  287. 64Paragraph 64
  288. 65Paragraph 65
  289. 66Paragraph 66
  290. 67Paragraph 67
  291. 68Paragraph 68
  292. 69Paragraph 69
  293. 70Paragraph 70
  294. 71Paragraph 71
  295. 72Paragraph 72
  296. 73Paragraph 73
  297. 74Paragraph 74
  298. 75Paragraph 75
  299. 76Paragraph 76
  300. 77Paragraph 77
  301. 78Paragraph 78
  302. 79Paragraph 79
  303. 80Paragraph 80
  304. 81Paragraph 81
  305. 82Paragraph 82
  306. 83Paragraph 83
  307. 84Paragraph 84
  308. 85Paragraph 85
  309. 86Paragraph 86
  310. 87Paragraph 87
  311. 88Paragraph 88
  312. 89Paragraph 89
  313. 90Paragraph 90
  314. 91Paragraph 91
  315. 92Paragraph 92
  316. 93Paragraph 93
  317. 94Paragraph 94
  318. 95Paragraph 95
  319. 96Paragraph 96
  320. 97Paragraph 97
  321. Part 3: Amendments of TCGA 1992 relating to loan relationships
  322. 98Paragraph 98
  323. Part 4: Consequential amendments
  324. 99Paragraph 99
  325. 100Paragraph 100
  326. Part 5: Repeal of uncommenced repeal provisions
  327. 101Paragraph 101
  328. Part 6: Commencement and transitional provisions
  329. Introductory
  330. 102Paragraph 102
  331. Commencement: the general rule
  332. 103Paragraph 103
  333. 104Paragraph 104
  334. 105Paragraph 105
  335. Commencement: sections 321, 349 and 605 of CTA 2009
  336. 106Paragraph 106
  337. Commencement: insolvency, corporate rescue etc
  338. 107Paragraph 107
  339. 108Paragraph 108
  340. 109Paragraph 109
  341. 110Paragraph 110
  342. Commencement: anti-avoidance provisions etc
  343. 111Paragraph 111
  344. 112Paragraph 112
  345. 113Paragraph 113
  346. 114Paragraph 114
  347. Transitional adjustments relating to loan relationships
  348. 115Paragraph 115
  349. 116Paragraph 116
  350. 117Paragraph 117
  351. 118Paragraph 118
  352. 119Paragraph 119
  353. Transitional adjustments relating to derivative contracts
  354. 120Paragraph 120
  355. 121Paragraph 121
  356. 122Paragraph 122
  357. 123Paragraph 123
  358. 124Paragraph 124
  359. Straddling accounting periods treated as split for certain purposes
  360. 125Paragraph 125
  361. Transitional provision relating to abolition of “fairly represents” test
  362. 126Paragraph 126
  363. 127Paragraph 127
  364. Transitional provision relating to fixed capital asset or project
  365. 128Paragraph 128
  366. 129Paragraph 129
  367. Schedule 8: Enforcement by deduction from accounts
  368. Introduction
  369. 1Paragraph 1
  370. “Relevant sum”
  371. 2Paragraph 2
  372. Information notice
  373. 3Paragraph 3
  374. Hold notice
  375. 4Paragraph 4
  376. Persons at a particular disadvantage in dealing with Revenue and Customs affairs
  377. 5Paragraph 5
  378. Effect of hold notice
  379. 6Paragraph 6
  380. Determination of held amounts
  381. 7Paragraph 7
  382. Duty to notify HMRC and account holders etc
  383. 8Paragraph 8
  384. Cancellation or variation of effects of hold notice
  385. 9Paragraph 9
  386. Making objections to hold notice
  387. 10Paragraph 10
  388. Consideration of objections
  389. 11Paragraph 11
  390. Appeals
  391. 12Paragraph 12
  392. Deduction notice
  393. 13Paragraph 13
  394. Penalties
  395. 14Paragraph 14
  396. Assessment of penalty
  397. 15Paragraph 15
  398. Appeal against penalty
  399. 16Paragraph 16
  400. Enforcement of penalty
  401. 17Paragraph 17
  402. Protection of deposit-takers acting in good faith
  403. 18Paragraph 18
  404. Power to modify amounts and time limits
  405. 19Paragraph 19
  406. Power to make further provision
  407. 20Paragraph 20
  408. Regulations
  409. 21Paragraph 21
  410. Joint accounts
  411. 22Paragraph 22
  412. Defined terms
  413. 23Paragraph 23
  414. Extent
  415. 24Paragraph 24
  416. Part 2: Miscellaneous amendments
  417. TMA 1970
  418. 25Paragraph 25
  419. Insolvency Act 1986
  420. 26Paragraph 26
  421. 27Paragraph 27
  422. 28Paragraph 28
  423. 29Paragraph 29
  424. 30Paragraph 30
  425. 31Paragraph 31
  426. 32Paragraph 32
  427. 33Paragraph 33
  428. Insolvency (Northern Ireland) Order 1989
  429. 34Paragraph 34
  430. 35Paragraph 35
  431. 36Paragraph 36
  432. 37Paragraph 37
  433. 38Paragraph 38
  434. 39Paragraph 39
  435. FA 1998
  436. 40Paragraph 40
  437. FA 2003
  438. 41Paragraph 41
  439. FA 2013
  440. 42Paragraph 42