OpenLegislation

Finance (No. 2) Act 2015

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  6. 3Personal allowance and national minimum wage Repealed
  7. 4Personal allowance and national minimum wage: Chancellor's duties Repealed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. 52Rate of interest applicable to judgment debts etc in taxation matters
  76. Part 7: Final
  77. 53Interpretation
  78. 54Short title
  79. Schedule 1: Rate of tax charged under Chapter 3 of Part 3 IHTA 1984
  80. 1Paragraph 1
  81. 2Paragraph 2
  82. 3Paragraph 3
  83. 4Paragraph 4
  84. 5Paragraph 5
  85. 6Paragraph 6
  86. 7Paragraph 7
  87. Schedule 2: Bank levy rates for 2016 to 2021
  88. Bank levy rate for 2016
  89. 1Paragraph 1
  90. Bank levy rate for 2017
  91. 2Paragraph 2
  92. Bank levy rate for 2018
  93. 3Paragraph 3
  94. Bank levy rate for 2019
  95. 4Paragraph 4
  96. Bank levy rate for 2020
  97. 5Paragraph 5
  98. Bank levy rate for 2021
  99. 6Paragraph 6
  100. Schedule 3: Banking companies: surcharge
  101. Part 1: Main provisions
  102. 1Paragraph 1
  103. Part 2: Consequential amendments
  104. TMA 1970
  105. 2Paragraph 2
  106. FA 1998
  107. 3Paragraph 3
  108. CTA 2010
  109. 4Paragraph 4
  110. 5Paragraph 5
  111. 6Paragraph 6
  112. TIOPA 2010
  113. 7Paragraph 7
  114. 8Paragraph 8
  115. 9Paragraph 9
  116. 10Paragraph 10
  117. FA 2015
  118. 11Paragraph 11
  119. 12Paragraph 12
  120. 13Paragraph 13
  121. Part 3: Commencement
  122. Surcharge
  123. 14Paragraph 14
  124. 15Paragraph 15
  125. CFCs
  126. 16Paragraph 16
  127. Diverted profits tax
  128. 17Paragraph 17
  129. Interpretation
  130. 18Paragraph 18
  131. Schedule 4: Pensions: annual allowance
  132. Part 1: Alignment of pension input periods with tax years
  133. 1Paragraph 1
  134. 2Paragraph 2
  135. 3Paragraph 3
  136. 4Paragraph 4
  137. 5Paragraph 5
  138. Part 2: Annual allowance for, and carry-forward from, 2015-16
  139. 6Paragraph 6
  140. Part 3: Calculation of pension input amounts for periods ending in 2015-16
  141. 7Paragraph 7
  142. 8Paragraph 8
  143. 9Paragraph 9
  144. Part 4: Reduction of annual allowance for high-income individuals
  145. 10Paragraph 10
  146. Part 5: Other amendments
  147. 11Paragraph 11
  148. Schedule 5: Enterprise investment scheme
  149. Introductory
  150. 1Paragraph 1
  151. Limiting eligibility for relief to investments made before 2025
  152. 2Paragraph 2
  153. The investor
  154. 3Paragraph 3
  155. 4Paragraph 4
  156. 5Paragraph 5
  157. General requirements
  158. 6Paragraph 6
  159. 7Paragraph 7
  160. 8Paragraph 8
  161. 9Paragraph 9
  162. 10Paragraph 10
  163. 11Paragraph 11
  164. 12Paragraph 12
  165. The issuing company
  166. 13Paragraph 13
  167. 14Paragraph 14
  168. Repayment etc of share capital
  169. 15Paragraph 15
  170. Information to be provided by issuing company etc
  171. 16Paragraph 16
  172. Acquisition of issuing company
  173. 17Paragraph 17
  174. Powers to amend Part 5 of ITA 2007
  175. 18Paragraph 18
  176. “Knowledge-intensive companies”
  177. 19Paragraph 19
  178. Consequential repeals
  179. 20Paragraph 20
  180. Commencement and transitional provision
  181. 21Paragraph 21
  182. 22Paragraph 22
  183. 23Paragraph 23
  184. Schedule 6: Venture capital trusts
  185. Introductory
  186. 1Paragraph 1
  187. Limiting eligibility for relief to investments made before 2025
  188. 2Paragraph 2
  189. Requirements for the giving of VCT approval
  190. 3Paragraph 3
  191. VCT approvals
  192. 4Paragraph 4
  193. The first commercial sale condition and the no business acquisition condition
  194. 5Paragraph 5
  195. Qualifying holdings
  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. Power to amend Chapter 4 of Part 6
  205. 14Paragraph 14
  206. Interpretation of Chapter 4 of Part 6
  207. 15Paragraph 15
  208. Acquisitions for restructuring purposes
  209. 16Paragraph 16
  210. 17Paragraph 17
  211. 18Paragraph 18
  212. Power to amend Chapters 3 and 4 of Part 6 of ITA 2007
  213. 19Paragraph 19
  214. Interpretation of Part 6
  215. 20Paragraph 20
  216. Repeal of saving for investment of “protected money”
  217. 21Paragraph 21
  218. Consequential repeal
  219. 22Paragraph 22
  220. Application and transitional provision
  221. 23Paragraph 23
  222. Schedule 7: Loan relationships and derivative contracts
  223. Part 1: Loan relationships: amendments of Parts 5 and 6 of CTA 2009
  224. 1Paragraph 1
  225. 2Paragraph 2
  226. 3Paragraph 3
  227. 4Paragraph 4
  228. 5Paragraph 5
  229. 6Paragraph 6
  230. 7Paragraph 7
  231. 8Paragraph 8
  232. 9Paragraph 9
  233. 10Paragraph 10
  234. 11Paragraph 11
  235. 12Paragraph 12
  236. 13Paragraph 13
  237. 14Paragraph 14
  238. 15Paragraph 15
  239. 16Paragraph 16
  240. 17Paragraph 17
  241. 18Paragraph 18
  242. 19Paragraph 19
  243. 20Paragraph 20
  244. 21Paragraph 21
  245. 22Paragraph 22
  246. 23Paragraph 23
  247. 24Paragraph 24
  248. 25Paragraph 25
  249. 26Paragraph 26
  250. 27Paragraph 27
  251. 28Paragraph 28
  252. 29Paragraph 29
  253. 30Paragraph 30
  254. 31Paragraph 31
  255. 32Paragraph 32
  256. 33Paragraph 33
  257. 34Paragraph 34
  258. 35Paragraph 35
  259. 36Paragraph 36
  260. 37Paragraph 37
  261. 38Paragraph 38
  262. 39Paragraph 39
  263. 40Paragraph 40
  264. 41Paragraph 41
  265. 42Paragraph 42
  266. 43Paragraph 43
  267. 44Paragraph 44
  268. 45Paragraph 45
  269. 46Paragraph 46
  270. 47Paragraph 47
  271. 48Paragraph 48
  272. 49Paragraph 49
  273. 50Paragraph 50
  274. 51Paragraph 51
  275. 52Paragraph 52
  276. 53Paragraph 53
  277. 54Paragraph 54
  278. 55Paragraph 55
  279. 56Paragraph 56
  280. 57Paragraph 57
  281. 58Paragraph 58
  282. Part 2: Derivative contracts: amendments of Part 7 of CTA 2009
  283. 59Paragraph 59
  284. 60Paragraph 60
  285. 61Paragraph 61
  286. 62Paragraph 62
  287. 63Paragraph 63
  288. 64Paragraph 64
  289. 65Paragraph 65
  290. 66Paragraph 66
  291. 67Paragraph 67
  292. 68Paragraph 68
  293. 69Paragraph 69
  294. 70Paragraph 70
  295. 71Paragraph 71
  296. 72Paragraph 72
  297. 73Paragraph 73
  298. 74Paragraph 74
  299. 75Paragraph 75
  300. 76Paragraph 76
  301. 77Paragraph 77
  302. 78Paragraph 78
  303. 79Paragraph 79
  304. 80Paragraph 80
  305. 81Paragraph 81
  306. 82Paragraph 82
  307. 83Paragraph 83
  308. 84Paragraph 84
  309. 85Paragraph 85
  310. 86Paragraph 86
  311. 87Paragraph 87
  312. 88Paragraph 88
  313. 89Paragraph 89
  314. 90Paragraph 90
  315. 91Paragraph 91
  316. 92Paragraph 92
  317. 93Paragraph 93
  318. 94Paragraph 94
  319. 95Paragraph 95
  320. 96Paragraph 96
  321. 97Paragraph 97
  322. Part 3: Amendments of TCGA 1992 relating to loan relationships
  323. 98Paragraph 98
  324. Part 4: Consequential amendments
  325. 99Paragraph 99
  326. 100Paragraph 100
  327. Part 5: Repeal of uncommenced repeal provisions
  328. 101Paragraph 101
  329. Part 6: Commencement and transitional provisions
  330. Introductory
  331. 102Paragraph 102
  332. Commencement: the general rule
  333. 103Paragraph 103
  334. 104Paragraph 104
  335. 105Paragraph 105
  336. Commencement: sections 321, 349 and 605 of CTA 2009
  337. 106Paragraph 106
  338. Commencement: insolvency, corporate rescue etc
  339. 107Paragraph 107
  340. 108Paragraph 108
  341. 109Paragraph 109
  342. 110Paragraph 110
  343. Commencement: anti-avoidance provisions etc
  344. 111Paragraph 111
  345. 112Paragraph 112
  346. 113Paragraph 113
  347. 114Paragraph 114
  348. Transitional adjustments relating to loan relationships
  349. 115Paragraph 115
  350. 116Paragraph 116
  351. 117Paragraph 117
  352. 118Paragraph 118
  353. 119Paragraph 119
  354. Transitional adjustments relating to derivative contracts
  355. 120Paragraph 120
  356. 121Paragraph 121
  357. 122Paragraph 122
  358. 123Paragraph 123
  359. 124Paragraph 124
  360. Straddling accounting periods treated as split for certain purposes
  361. 125Paragraph 125
  362. Transitional provision relating to abolition of “fairly represents” test
  363. 126Paragraph 126
  364. 127Paragraph 127
  365. Transitional provision relating to fixed capital asset or project
  366. 128Paragraph 128
  367. 129Paragraph 129
  368. Schedule 8: Enforcement by deduction from accounts
  369. Part 1: Scheme for enforcement by deduction from accounts
  370. Introduction
  371. 1Paragraph 1
  372. “Relevant sum”
  373. 2Paragraph 2
  374. Information notice
  375. 3Paragraph 3
  376. Hold notice
  377. 4Paragraph 4
  378. Persons at a particular disadvantage in dealing with Revenue and Customs affairs
  379. 5Paragraph 5
  380. Effect of hold notice
  381. 6Paragraph 6
  382. Determination of held amounts
  383. 7Paragraph 7
  384. Duty to notify HMRC and account holders etc
  385. 8Paragraph 8
  386. Cancellation or variation of effects of hold notice
  387. 9Paragraph 9
  388. Making objections to hold notice
  389. 10Paragraph 10
  390. Consideration of objections
  391. 11Paragraph 11
  392. Appeals
  393. 12Paragraph 12
  394. Deduction notice
  395. 13Paragraph 13
  396. Penalties
  397. 14Paragraph 14
  398. Assessment of penalty
  399. 15Paragraph 15
  400. Appeal against penalty
  401. 16Paragraph 16
  402. Enforcement of penalty
  403. 17Paragraph 17
  404. Protection of deposit-takers acting in good faith
  405. 18Paragraph 18
  406. Power to modify amounts and time limits
  407. 19Paragraph 19
  408. Power to make further provision
  409. 20Paragraph 20
  410. Regulations
  411. 21Paragraph 21
  412. Joint accounts
  413. 22Paragraph 22
  414. Defined terms
  415. 23Paragraph 23
  416. Extent
  417. 24Paragraph 24
  418. Part 2: Miscellaneous amendments
  419. TMA 1970
  420. 25Paragraph 25
  421. Insolvency Act 1986
  422. 26Paragraph 26
  423. 27Paragraph 27
  424. 28Paragraph 28
  425. 29Paragraph 29
  426. 30Paragraph 30
  427. 31Paragraph 31
  428. 32Paragraph 32
  429. 33Paragraph 33
  430. Insolvency (Northern Ireland) Order 1989
  431. 34Paragraph 34
  432. 35Paragraph 35
  433. 36Paragraph 36
  434. 37Paragraph 37
  435. 38Paragraph 38
  436. 39Paragraph 39
  437. FA 1998
  438. 40Paragraph 40
  439. FA 2003
  440. 41Paragraph 41
  441. FA 2013
  442. 42Paragraph 42