Finance Act 2015

2015 c. 11 · Enacted 26 March 2015 · Extends to United Kingdom

Contents

1. Part 1: Income tax, corporation tax and capital gains tax
2. Chapter 1: Charge, rates etc
3. Income tax
4. 1Charge and rates for 2015-16
5. 2Limits and allowances for 2015-16
6. 3Personal allowances for 2015-16
7. 4Basic rate limit from 2016
8. 5Personal allowance from 2016
9. Corporation tax
10. 6Charge for financial year 2016
11. Chapter 2: Income tax: general
12. 7Cars: the appropriate percentage for 2017-18
13. 8Cars: the appropriate percentage for subsequent tax years
14. 9Diesel cars: the appropriate percentage for 2015-16
15. 10Zero-emission vans
16. 11Exemption for amounts which would otherwise be deductible
17. 12Abolition of dispensation regime
18. 13Extension of benefits code except in relation to certain ministers of religion
19. 14Exemption for board or lodging provided to carers
20. 15Lump sums provided under armed forces early departure scheme
21. 16Bereavement support payment: exemption from income tax
22. 17PAYE: benefits in kind
23. 18Employment intermediaries: determination of penalties
24. 19Arrangements offering a choice of capital or income return
25. 20Intermediaries and Gift Aid
26. 21Disguised investment management fees
27. 22Miscellaneous loss relief
28. 23Exceptions from duty to deduct tax: qualifying private placements
29. 24Increased remittance basis charge
30. Chapter 3: Corporation tax: general
31. 25Loan relationships: repeal of certain provisions relating to late interest etc
32. 26Intangible fixed assets: goodwill etc acquired from a related party Repealed
33. 27Amount of relief for expenditure on research and development
34. 28Expenditure on research and development: consumable items
35. 29Film tax relief
36. 30Reliefs for makers of children's television programmes
37. 31Television tax relief
38. 32Restrictions applying to certain deductions made by banking companies
39. 33Tax avoidance involving carried-forward losses
40. Chapter 4: Other provisions
41. Pensions
42. 34Pension flexibility: annuities etc
43. Flood and coastal defence
44. 35Relief for contributions to flood and coastal erosion risk management projects
45. Investment reliefs
46. 36Investment reliefs: excluded activities
47. Capital gains tax
48. 37Disposals of UK residential property interests by non-residents etc
49. 38Relevant high value disposals: gains and losses
50. 39Private residence relief
51. 40Wasting assets
52. 41Entrepreneurs' relief: associated disposals
53. 42Entrepreneurs' relief: exclusion of goodwill in certain circumstances
54. 43Entrepreneurs' relief: trading company etc
55. 44Deferred entrepreneurs' relief on invested gains
56. Capital allowances
57. 45Zero-emission goods vehicles
58. 46Plant and machinery allowances: anti-avoidance
59. Oil and gas
60. 47Extension of ring fence expenditure supplement
61. 48Reduction in rate of supplementary charge
62. 49Supplementary charge: investment allowance
63. 50Supplementary charge: cluster area allowance
64. 51Amendments relating to investment allowance and cluster area allowance
65. Part 2: Excise duties and other taxes
66. Petroleum revenue tax
67. 52Reduction in rate of petroleum revenue tax
68. Alcohol
69. 53Rates of alcoholic liquor duties
70. 54Wholesaling of controlled liquor
71. Tobacco
72. 55Rates of tobacco products duty
73. 56Excise duty on tobacco: anti-forestalling restrictions
74. Air passenger duty
75. 57Air passenger duty: exemption for children in standard class
76. Vehicle excise duty
77. 58VED rates for light passenger vehicles and motorcycles
78. 59VED: extension of old vehicles exemption from 1 April 2016
79. Gaming duty
80. 60Rates of gaming duty
81. Aggregates levy
82. 61Tax credit in Northern Ireland
83. Climate change levy
84. 62Climate change levy: main rates from 1 April 2016
85. 63Combined heat and power stations
86. Landfill tax
87. 64Landfill tax: rates from 1 April 2016
88. 65Landfill tax: material consisting of fines
89. Value added tax
90. 66VAT: refunds to certain charities
91. 67VAT: refunds to strategic highways companies
92. Stamp duty land tax
93. 68SDLT: alternative property finance relief
94. 69SDLT: multiple dwellings relief
95. Annual tax on enveloped dwellings
96. 70ATED: annual chargeable amount
97. 71ATED: taxable value
98. 72ATED: interests held by connected persons
99. 73ATED: returns
100. Inheritance tax
101. 74Inheritance tax: exemption for decorations and other awards
102. 75Inheritance tax: exemption for emergency service personnel etc
103. The bank levy
104. 76The bank levy: rates from 1 April 2015
105. Part 3: Diverted profits tax Repealed
106. Introduction and overview Repealed
107. 77Introduction to the tax Repealed
108. 78Overview of Part 3 Repealed
109. Charge to tax Repealed
110. 79Charge to tax Repealed
111. Involvement of entities or transactions lacking economic substance Repealed
112. 80UK company: involvement of entities or transactions lacking economic substance Repealed
113. 81Non-UK company: involvement of entities or transactions lacking economic substance Repealed
114. Calculation of taxable diverted profits: section 80 or 81 cases Repealed
115. 82Calculation of taxable diverted profits in section 80 or 81 case: introduction Repealed
116. 83Section 80 or 81 cases where no taxable diverted profits arise Repealed
117. 84Section 80 or 81: calculation of profits by reference to the actual provision Repealed
118. 85Section 80 or 81: calculation of profits by reference to the relevant alternative provision Repealed
119. Avoidance of a UK taxable presence Repealed
120. 86Non-UK company avoiding a UK taxable presence Repealed
121. 87Exception for companies with limited UK-related sales or expenses Repealed
122. Calculation of taxable diverted profits: section 86 cases Repealed
123. 88Calculation of taxable diverted profits in section 86 case: introduction Repealed
124. 89Section 86: calculation of profits where only tax avoidance condition is met Repealed
125. 90Section 86: mismatch condition is met: calculation of profits by reference to the actual provision Repealed
126. 91Section 86: mismatch condition is met: calculation of profits by reference to the relevant alternative provision Repealed
127. Duty to notify if within scope Repealed
128. 92Duty to notify if potentially within scope of tax Repealed
129. Process for imposing charge Repealed
130. 93Preliminary notice Repealed
131. 94Representations Repealed
132. 95Charging notice Repealed
133. 96Section 80 or 81 cases: estimating profits for preliminary and charging notices Repealed
134. 97Section 86 cases: estimating profits for preliminary and charging notices Repealed
135. Payment and recovery of tax Repealed
136. 98Payment of tax Repealed
137. 99Diverted profits tax ignored for tax purposes Repealed
138. 100Credits for tax on the same profits Repealed
139. 100ARelief from corporation tax Repealed
140. Review and appeals Repealed
141. 101HMRC review of charging notice Repealed
142. 101AAmendment of CT return during review period: section 80 or 81 case Repealed
143. 101BAmendment of CT return during review period: section 86 case Repealed
144. 101CClosure notices: rules during review period Repealed
145. 102Appeal against charging notice or supplementary charging notice Repealed
146. Administration of tax Repealed
147. 103Responsibility for collection and management Repealed
148. 104Penalties etc Repealed
149. 105Information and inspection powers etc Repealed
150. Interpretation Repealed
151. 106“The participation condition” Repealed
152. 107“Effective tax mismatch outcome” Repealed
153. 108Provision supplementing section 107 Repealed
154. 109“Excepted loan relationship outcome” Repealed
155. 110“The insufficient economic substance condition” Repealed
156. 111“Transaction” and “series of transactions” Repealed
157. 111AAdjustment required to be made to the material provision Repealed
158. 112Treatment of a person who is a member of a partnership Repealed
159. 113“Accounting period” and “corresponding accounting period” Repealed
160. 114Other defined terms in Part 3 Repealed
161. 114AApplication of section 124 of TIOPA 2010 in relation to diverted profits tax Repealed
162. Final provisions Repealed
163. 115Application of other enactments to diverted profits tax Repealed
164. 116Commencement and transitional provision Repealed
165. Part 4: Other provisions
166. Anti-avoidance
167. 117Disclosure of tax avoidance schemes
168. 118Accelerated payments and group relief
169. 119Promoters of tax avoidance schemes
170. 120Penalties in connection with offshore matters and offshore transfers
171. 121Penalties in connection with offshore asset moves
172. Other tax-related matters
173. 122Country-by-country reporting Repealed
174. 123Status for tax purposes of certain bodies
175. Government stock
176. 124Redemption of undated government stocks
177. Part 5: Final provisions
178. 125Commencement orders and regulations
179. 126Interpretation
180. 127Short title
181. Schedule 1: Extension of benefits code except in relation to certain ministers of religion
182. Part 1: Amendments of ITEPA 2003
183. 1Paragraph 1
184. 2Paragraph 2
185. 3Paragraph 3
186. 4Paragraph 4
187. 5Paragraph 5
188. 6Paragraph 6
189. 7Paragraph 7
190. 8Paragraph 8
191. 9Paragraph 9
192. 10Paragraph 10
193. 11Paragraph 11
194. 12Paragraph 12
195. 13Paragraph 13
196. 14Paragraph 14
197. 15Paragraph 15
198. 16Paragraph 16
199. 17Paragraph 17
200. 18Paragraph 18
201. 19Paragraph 19
202. 20Paragraph 20
203. 21Paragraph 21
204. 22Paragraph 22
205. Part 2: Amendments of other enactments
206. 23Paragraph 23
207. 24Paragraph 24
208. 25Paragraph 25
209. 26Paragraph 26
210. Schedule 2: Restrictions applying to certain deductions made by banking companies
211. Part 1: Main provisions
212. 1Paragraph 1
213. Part 2: Consequential amendments
214. FA 1998
215. 2Paragraph 2
216. CTA 2009
217. 3Paragraph 3
218. CTA 2010
219. 4Paragraph 4
220. 5Paragraph 5
221. TIOPA 2010
222. 6Paragraph 6 Repealed
223. Part 3: Commencement and anti-forestalling provision
224. Commencement
225. 7Paragraph 7
226. 8Paragraph 8 Repealed
227. Anti-forestalling provision
228. 9Paragraph 9
229. Schedule 3: Tax avoidance involving carried-forward losses
230. Part 1: Amendments of CTA 2010
231. 1Paragraph 1
232. 2Paragraph 2
233. 3Paragraph 3
234. Part 2: Commencement
235. 4Paragraph 4
236. Schedule 4: Pension flexibility: annuities etc
237. Part 1: Death benefits for nominees, successors and dependants
238. Introductory
239. 1Paragraph 1
240. Nominees' annuities and successors' annuities to be authorised payments
241. 2Paragraph 2
242. Nominees' annuities and successors' annuities: definitions
243. 3Paragraph 3
244. Dependants' and nominees' annuities: testing against deceased member's lifetime allowance
245. 4Paragraph 4
246. 5Paragraph 5
247. 6Paragraph 6
248. 7Paragraph 7
249. Minor and consequential amendments
250. 8Paragraph 8
251. 9Paragraph 9
252. 10Paragraph 10
253. 11Paragraph 11
254. 12Paragraph 12
255. 13Paragraph 13
256. 14Paragraph 14
257. 15Paragraph 15
258. Consequential repeal
259. 16Paragraph 16
260. Part 2: Income tax on beneficiaries' annuities etc
261. Exemption in certain cases for annuities for dependants, nominees and successors
262. 17Paragraph 17
263. Exemption from tax under Part 9 of ITEPA 2003 not to give rise to tax under other provisions
264. 18Paragraph 18
265. Annuity for dependant purchased before 6 April 2006 jointly with annuity for member
266. 19Paragraph 19
267. Minor and consequential amendments
268. 20Paragraph 20
269. 21Paragraph 21
270. 22Paragraph 22
271. 23Paragraph 23
272. Schedule 5: Relief for contributions to flood and coastal erosion risk management projects
273. Income tax: trade profits
274. 1Paragraph 1
275. Income tax: profits of a property business
276. 2Paragraph 2
277. Corporation tax: trading income and trade profits
278. 3Paragraph 3
279. Corporation tax: profits of a property business
280. 4Paragraph 4
281. Corporation tax: investment business
282. 5Paragraph 5
283. 6Paragraph 6
284. 7Paragraph 7
285. 8Paragraph 8
286. Commencement
287. 9Paragraph 9
288. Schedule 6: Investment reliefs: excluded activities
289. Part 1: Part 5B of ITA 2007: amendment coming into force on passing of Act
290. Tax relief for social investments: power to amend excluded activities
291. 1Paragraph 1
292. Part 2: Part 5 of ITA 2007: excluded activities from 6 April 2015
293. Introductory
294. 2Paragraph 2
295. Generation of electricity involving contracts for difference
296. 3Paragraph 3
297. Subsidised energy-related activities: anaerobic digestion and hydroelectric power
298. 4Paragraph 4
299. Application
300. 5Paragraph 5
301. Part 3: Part 6 of ITA 2007: excluded activities from 6 April 2015
302. Introductory
303. 6Paragraph 6
304. Generation of electricity involving contracts for difference
305. 7Paragraph 7
306. Subsidised energy-related activities: anaerobic digestion and hydroelectric power
307. 8Paragraph 8
308. Application
309. 9Paragraph 9
310. Part 4: Further amendments of Parts 5 to 6 of ITA 2007
311. Parts 5 and 6: certain community-based activities to be excluded activities
312. 10Paragraph 10
313. 11Paragraph 11
314. 12Paragraph 12
315. Part 5B: subsidised generation or export of electricity to cease to be excluded activity
316. 13Paragraph 13 Repealed
317. Application of Part
318. 14Paragraph 14
319. Schedule 7: Disposals of UK residential property interests by non-residents etc
320. Part 1: Amendments of TCGA 1992
321. 1Paragraph 1
322. 2Paragraph 2
323. 3Paragraph 3
324. 4Paragraph 4
325. 5Paragraph 5
326. 6Paragraph 6
327. 7Paragraph 7
328. 8Paragraph 8
329. 9Paragraph 9
330. 10Paragraph 10
331. 11Paragraph 11
332. 12Paragraph 12
333. 13Paragraph 13
334. 14Paragraph 14
335. 15Paragraph 15
336. 16Paragraph 16
337. 17Paragraph 17
338. 18Paragraph 18
339. 19Paragraph 19
340. 20Paragraph 20
341. 21Paragraph 21
342. 22Paragraph 22
343. 23Paragraph 23
344. 24Paragraph 24
345. 25Paragraph 25
346. 26Paragraph 26
347. 27Paragraph 27
348. 28Paragraph 28
349. 29Paragraph 29
350. 30Paragraph 30
351. 31Paragraph 31
352. 32Paragraph 32
353. 33Paragraph 33
354. 34Paragraph 34
355. 35Paragraph 35
356. 36Paragraph 36
357. 37Paragraph 37
358. 38Paragraph 38
359. 39Paragraph 39
360. 40Paragraph 40
361. Part 2: Other amendments
362. 41Paragraph 41
363. 42Paragraph 42
364. 43Paragraph 43
365. 44Paragraph 44
366. 45Paragraph 45
367. 46Paragraph 46
368. 47Paragraph 47
369. 48Paragraph 48
370. 49Paragraph 49
371. 50Paragraph 50
372. 51Paragraph 51
373. 52Paragraph 52
374. 53Paragraph 53
375. 54Paragraph 54
376. 55Paragraph 55
377. 56Paragraph 56
378. 57Paragraph 57
379. 58Paragraph 58
380. 59Paragraph 59
381. Part 3: Commencement
382. 60Paragraph 60
383. Schedule 8: Relevant high value disposals: gains and losses
384. Introduction
385. 1Paragraph 1
386. “Relevant high value disposal”
387. 2Paragraph 2
388. Threshold amount for the tax year 2015-16
389. 3Paragraph 3
390. Threshold amount from 6 April 2016
391. 4Paragraph 4
392. Restriction of losses
393. 5Paragraph 5
394. Calculation of gains and losses
395. 6Paragraph 6
396. 7Paragraph 7
397. 8Paragraph 8
398. 9Paragraph 9
399. 10Paragraph 10
400. 11Paragraph 11
401. 12Paragraph 12
402. 13Paragraph 13
403. Schedule 9: Private residence relief
404. 1Paragraph 1
405. 2Paragraph 2
406. 3Paragraph 3
407. 4Paragraph 4
408. 5Paragraph 5
409. 6Paragraph 6
410. 7Paragraph 7
411. 8Paragraph 8
412. 9Paragraph 9
413. 10Paragraph 10
414. Schedule 10: Plant and machinery allowances: anti-avoidance
415. 1Paragraph 1
416. Transfer and long funding leaseback: restrictions on lessee's allowances
417. 2Paragraph 2
418. Restriction on qualifying expenditure on sale, hire purchase (etc) and assignment
419. 3Paragraph 3
420. Transfer followed by hire-purchase etc: restrictions on hirer's allowances
421. 4Paragraph 4
422. Restriction on qualifying expenditure on sale, hire purchase (etc) and assignment: VAT
423. 5Paragraph 5
424. Schedule 11: Extension of ring fence expenditure supplement
425. Amendments of Chapter 5 of Part 8 of CTA 2010
426. 1Paragraph 1
427. 2Paragraph 2
428. 3Paragraph 3
429. 4Paragraph 4
430. 5Paragraph 5
431. 6Paragraph 6
432. 7Paragraph 7
433. 8Paragraph 8
434. 9Paragraph 9
435. 10Paragraph 10
436. Abolition of extended ring fence expenditure supplement for onshore activities
437. 11Paragraph 11
438. 12Paragraph 12
439. 13Paragraph 13
440. Commencement
441. 14Paragraph 14
442. Schedule 12: Supplementary charge: investment allowance
443. Part 1: Amendments of Part 8 of CTA 2010
444. 1Paragraph 1
445. Investment allowance
446. 2Paragraph 2
447. 3Paragraph 3
448. Part 2: Commencement and transitional provision
449. Interpretation
450. 4Paragraph 4
451. General rules for commencement
452. 5Paragraph 5
453. 6Paragraph 6
454. Unactivated field allowance to become unactivated investment allowance
455. 7Paragraph 7
456. Activated field allowance to become activated investment allowance
457. 8Paragraph 8
458. Schedule 13: Supplementary charge: cluster area allowance
459. Part 1: Amendments of Part 8 of CTA 2010
460. 1Paragraph 1
461. Cluster area allowance
462. 2Paragraph 2
463. Restriction of field allowances
464. 3Paragraph 3
465. 4Paragraph 4
466. Part 2: Transitional provision
467. Proposed determinations of cluster areas
468. 5Paragraph 5
469. Option to exclude certain fields from cluster area allowance
470. 6Paragraph 6
471. Schedule 14: Investment allowance and cluster area allowance: further amendments
472. Part 1: Amendments of CTA 2010
473. 1Paragraph 1
474. 2Paragraph 2
475. 3Paragraph 3
476. 4Paragraph 4
477. 5Paragraph 5
478. 6Paragraph 6
479. 7Paragraph 7
480. 8Paragraph 8
481. 9Paragraph 9
482. Part 2: Commencement
483. 10Paragraph 10
484. Schedule 15: Landfill tax: material consisting of fines
485. 1Paragraph 1
486. 2Paragraph 2
487. 3Paragraph 3
488. 4Paragraph 4
489. 5Paragraph 5
490. 6Paragraph 6
491. 7Paragraph 7
492. 8Paragraph 8
493. Schedule 16: Recovery of unpaid diverted profits tax due from non-UK resident company
494. Part 1: Imposing liability on UK representative of non-UK resident company
495. 1Paragraph 1
496. Part 2: Recovery of diverted profits tax from related companies
497. Cases in which this Part applies
498. 2Paragraph 2
499. Meaning of “the relevant period”
500. 3Paragraph 3
501. Meaning of “related company”
502. 4Paragraph 4
503. Notice requiring payment of unpaid tax
504. 5Paragraph 5
505. Time limit for giving notice
506. 6Paragraph 6
507. Amount payable in consortium case
508. 7Paragraph 7
509. Part 2: supplementary
510. 8Paragraph 8
511. Schedule 17: Disclosure of tax avoidance schemes
512. Requirement to update DOTAS information
513. 1Paragraph 1
514. 2Paragraph 2
515. 3Paragraph 3
516. Arrangements to be given reference number
517. 4Paragraph 4
518. Notification of employees
519. 5Paragraph 5
520. 6Paragraph 6
521. 7Paragraph 7
522. 8Paragraph 8
523. Employers' duty of disclosure
524. 9Paragraph 9
525. 10Paragraph 10
526. 11Paragraph 11
527. Identifying scheme users
528. 12Paragraph 12
529. 13Paragraph 13
530. Additional information
531. 14Paragraph 14
532. 15Paragraph 15
533. Protection of persons making voluntary disclosures
534. 16Paragraph 16
535. Publication of DOTAS information
536. 17Paragraph 17
537. Increase in penalties for failure to comply with section 313 of FA 2004
538. 18Paragraph 18
539. Transitional provisions
540. 19Paragraph 19
541. 20Paragraph 20
542. 21Paragraph 21
543. Schedule 18: Accelerated payments: group relief
544. Amendments of Part 4 of FA 2014
545. 1Paragraph 1
546. 2Paragraph 2
547. 3Paragraph 3
548. 4Paragraph 4
549. 5Paragraph 5
550. 6Paragraph 6
551. 7Paragraph 7
552. 8Paragraph 8
553. 9Paragraph 9
554. 10Paragraph 10
555. Consequential amendment
556. 11Paragraph 11
557. Transitional provision
558. 12Paragraph 12
559. Schedule 19: Promoters of tax avoidance schemes
560. 1Paragraph 1
561. Treating persons as meeting a threshold condition
562. 2Paragraph 2
563. 3Paragraph 3
564. 4Paragraph 4
565. 5Paragraph 5
566. Failure to comply with Part 7 of FA 2004
567. 6Paragraph 6
568. Disciplinary action in relation to professionals etc
569. 7Paragraph 7
570. Power to amend Schedule 34
571. 8Paragraph 8
572. Commencement
573. 9Paragraph 9
574. Schedule 20: Penalties in connection with offshore matters and offshore transfers
575. Penalties for errors
576. 1Paragraph 1 Not yet in force
577. 2Paragraph 2 Not yet in force
578. 3Paragraph 3
579. 4Paragraph 4
580. 5Paragraph 5 Not yet in force
581. 6Paragraph 6 Not yet in force
582. 7Paragraph 7 Not yet in force
583. 8Paragraph 8
584. Penalties for failure to notify
585. 9Paragraph 9 Not yet in force
586. 10Paragraph 10 Not yet in force
587. 11Paragraph 11
588. 12Paragraph 12
589. 13Paragraph 13 Not yet in force
590. Penalties for failure to make returns etc
591. 14Paragraph 14 Not yet in force
592. 15Paragraph 15 Not yet in force
593. 16Paragraph 16
594. 17Paragraph 17
595. 18Paragraph 18 Not yet in force
596. 19Paragraph 19 Not yet in force
597. General anti-abuse rule: aggregate penalties
598. 20Paragraph 20
599. Follower notices: aggregate penalties
600. 21Paragraph 21
601. Schedule 21: Penalties in connection with offshore asset moves
602. Penalty linked to offshore asset moves
603. 1Paragraph 1
604. Original penalties triggering penalties under this Schedule
605. 2Paragraph 2
606. “Deliberate failure”
607. 3Paragraph 3
608. “Relevant offshore asset move”
609. 4Paragraph 4
610. “Relevant time”
611. 5Paragraph 5
612. Amount of the penalty
613. 6Paragraph 6
614. Assessment
615. 7Paragraph 7
616. Appeal
617. 8Paragraph 8
618. Commencement and transitionals
619. 9Paragraph 9