# Finance (No. 2) Act 2017, Paragraph 1A


(1) This paragraph applies where—
(a) a loan or quasi-loan is to be treated for the purposes of sections 23A to 23H of ITTOIA 2005 as a relevant benefit by reason of paragraph 1,
(b) a reasonable case could have been made that for a qualifying tax year (“the relevant year”) T was chargeable to income tax on an amount that was referable to the loan or quasi-loan,
(c) at a time when an officer of Revenue and Customs had power to recover (from T or any other person) income tax for the relevant year in respect of that amount, a qualifying tax return or two or more qualifying tax returns taken together contained a reasonable disclosure of the loan or quasi-loan, and
(d) as at 6 April 2019 an officer of Revenue and Customs had not taken steps to recover (from T or any other person) income tax for the relevant year in respect of that amount.
(2) But this paragraph does not apply if—
(a) a reasonable case could have been made that for a tax year other than the relevant year (“the alternative year”) T was chargeable to income tax on an amount within sub-paragraph (3), and
(b) it is the case that—
(i) on or before 5 April 2019 an officer of Revenue and Customs took steps to recover (from T or any other person) income tax for the alternative year in respect of that amount, or
(ii) the alternative year is not a qualifying tax year.
(3) An amount is within this sub-paragraph if—
(a) it is the same amount as is mentioned in sub-paragraph (1),
(b) it is part of the amount mentioned in sub-paragraph (1), or
(c) it is derived from or represents the whole or part of the amount mentioned in sub-paragraph (1).
(4) Where this paragraph applies, then for the purposes of paragraph 1(3)(a) and (3A)(a) the amount of the loan or quasi-loan that is outstanding is to be taken to be reduced (but not below nil) by the amount mentioned in sub-paragraph (1).
(5) For the purposes of sub-paragraph (1)(c) a qualifying tax return, or two or more qualifying tax returns taken together, contained a reasonable disclosure of the loan or quasi-loan if the return or returns taken together—
(a) identified the loan or quasi-loan,
(b) identified the person to whom the loan or quasi-loan was made in a case where the loan or quasi-loan was made to a person other than T,
(c) identified the relevant arrangements in pursuance of which or in connection with which the loan or quasi-loan was made, and
(d) provided such other information as was sufficient for it to be apparent that a reasonable case could be made that for the relevant year T was chargeable to income tax on an amount that was referable to the loan or quasi-loan.
(6) In this paragraph—
“qualifying tax year” means the tax year 2015-16 and any earlier tax year, and
“qualifying tax return” means a return made by T under section 8 of TMA 1970 for a qualifying tax year, and any accompanying accounts, statements or documents.

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Source: https://www.legislation.gov.uk/ukpga/2017/32/schedule/12/paragraph/1A (the official version)
Page: https://openlegislation.uk/finance-no-2-act-2017/schedule-12/paragraph-1A
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.