Section 16 Application of Income Tax Acts and destination of Class 4 contributions.

United Kingdom

(1)

All the provisions of the Income Tax Acts, including in particular—

(a)

provisions as to assessment, collection, repayment and recovery, and

F1(b)

the provisions of Part VA (payment of tax) and Part X (penalties) of the Taxes Management Act 1970, F2and

(c)

the provisions of Schedules 55 and 56 to the Finance Act 2009 F3and of Schedule 38 to the Finance Act 2012, F4and

(d)

the provisions of Part 4 (follower notices and accelerated payments) and Part 5 (promoters of tax avoidance schemes) of the Finance Act 2014, F5and

(e)

the provisions of Schedule 18 to the Finance Act 2016 (serial tax avoidance), F6and

(f)

the provisions of Schedules 24 F7to 26 to the Finance Act 2021 (penalties),

shall, with the necessary modifications, apply in relation to Class 4 contributions under this Act and the Northern Ireland Contributions and Benefits Act as if those contributions were income tax chargeable under F8Chapter 2 of Part 2 of the Income Tax (Trading and Other Income) Act 2005 in respect of the profits of a trade, profession or vocation which is not carried on wholly outside the United Kingdom.

(2)

Subsection (1) above is subject to any provision made by or under—

(a)

sections 17(3) and (4) and 18 below;

(b)

sections 17(3) and (4) and 18 of the Northern Ireland Contributions and Benefits Act; and

(c)

Schedule 2 to this Act.

(3)

Schedule 2 to this Act has effect for the application or modification, in relation to Class 4 contributions under this Act and the Northern Ireland Contributions and Benefits Act, of certain provisions of the Income Tax Acts, and the exclusion of other provisions, and generally with respect to the contributions.

F9(4)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F10(5)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annotations

Textual amendments

F1: S. 16(1)(b) substituted (6.4.1996 with effect in accordance with s. 196 of the amending Act) by Finance Act 1994 (c. 9), Sch. 19 para. 45
F2: S. 16(1)(c) and word inserted (1.4.2011) by The Finance Act 2009, Schedules 55 and 56 (Income Tax Self Assessment and Pension Schemes) (Appointed Days and Consequential and Savings Provisions) Order 2011 (S.I. 2011/702), art. 13 (with arts. 20, 22)
F3: Words in s. 16(1)(c) inserted (1.4.2013) by Finance Act 2012 (c. 14), Sch. 38 para. 53; S.I. 2013/279, art. 2
F4: S. 16(1)(d) and word inserted (12.4.2015) by National Insurance Contributions Act 2015 (c. 5), Sch. 2 paras. 32, 33(1)
F5: S. 16(1)(e) and word inserted (with effect in relation to relevant defeats incurred after 15.9.2016 in accordance with Sch. 18 para. 63 of the amending Act) by Finance Act 2016 (c. 24), Sch. 18 para. 61(3)
F6: S. 16(1)(f) and word inserted (6.4.2024 for specified purposes, 1.4.2026 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 13; S.I. 2024/440, reg. 2; S.I. 2026/370, reg. 3
F7: Words in s. 16(1)(f) substituted (1.4.2026 for the purposes for which 2021 c. 26, Sch. 27 para. 13 is in force immediately before that date and for all other purposes at the same time as that parargraph comes into force for those purposes) by Finance Act 2026 (c. 11), s. 263(5)(8)
F8: Words in s. 16(1) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 421 (with Sch. 2)
F9: S. 16(4) omitted (1.4.1999) by virtue of Social Security Contributions (Transfer of Functions, etc.) Act 1999 (c. 2), s. 28(3), Sch. 3 para. 16, Sch. 10 Pt. 1; S.I. 1999/527, art. 2(b), Sch. 2 (with arts. 3-6)
F10: S. 16(5) repealed (with effect in relation to the tax year 2003-04 and subsequent tax years) by National Insurance Contributions Act 2002 (c. 19), ss. 7, 8(2), Sch. 2

Notes on Part I

Modifications

C1: Pt. 1 modified (2.4.1999) by The New Deal (25 plus) (Miscellaneous Provisions) Order 1999 (S.I. 1999/779), arts. 1(1), 2
C2: Pt. 1 modified (6.4.2001) by The Social Security (Contributions) Regulations 2001 (S.I. 2001/1004), regs. 1(1), 125 (as amended (6.4.2017) by S.I. 2017/416, regs. 1(2), 2; (6.4.2019) by S.I. 2019/555, regs. 1(2), 2)
C3: Pt. 1 modified (13.9.2001) by The New Deal (Lone Parents) (Miscellaneous Provisions) Order 2001 (S.I. 2001/2915), arts. 1(1), 2
C4: Pt. 1 modified (for the tax year 2022-23) by Health and Social Care Levy Act 2021 (c. 28), s. 5(2) (with s. 7(2)) (which Act was repealed (25.10.2022) by Health and Social Care Levy (Repeal) Act 2022 (c. 43), s. 1 (with savings and transitional modifications of Pt. 1 in s. 2, Sch. paras. 1-3, 5))
C5: Pt. 1 modified (in relation to the tax year 2023-24) by National Insurance Contributions (Reduction in Rates) Act 2023 (c. 57), Sch. para. 1(1)-(3)