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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 · Made 10 March 2011 · Extends to United Kingdom

Up to date with all changes known to legislation.gov.uk, revised to 1 January 2015.

Income Tax

Capital Gains Tax

Social Security

Made 10th March 2011

Laid before the House of Commons 11th March 2011

Coming into force 1st April 2011

The Treasury make the following Order in exercise of the powers conferred by sections 106(2) to (6) and 107(2) to (6) of the Finance Act 2009f1.

Annotations to the whole text

Footnotes

f1

2009 c. 10.

Contents

  1. 1Citation, commencement and interpretation
  2. 2Appointed days
  3. 3Appointed days
  4. 4Consequential amendments and repeals
  5. 5Consequential amendments and repeals
  6. 6Consequential amendments and repeals
  7. 7Consequential amendments and repeals
  8. 8Consequential amendments and repeals
  9. 9Consequential amendments and repeals
  10. 10Consequential amendments and repeals
  11. 11Consequential amendments and repeals
  12. 12Consequential amendments and repeals
  13. 13Consequential amendments and repeals
  14. 14Consequential amendments and repeals
  15. 15Consequential amendments and repeals
  16. 16Consequential amendments and repeals
  17. 17Consequential amendments and repeals
  18. 18Consequential amendments and repeals
  19. 19Consequential amendments and repeals
  20. 20Savings
  21. 21Savings
  22. 22Savings Repealed
  23. Signature
  24. Explanatory note

1Citation, commencement and interpretationI1

(1)

This Order may be cited as the Finance Act 2009, Schedules 55 and 56 (Income Tax Self Assessment and Pension Schemes) (Appointed Days and Consequential and Savings Provisions) Order 2011 and comes into force on 1st April 2011.

(2)

In this Order “return period” means each period of three months ending with 31st March, 30th June, 30th September or 31st December for which a return must be made under section 254(2) of the Finance Act 2004 (pension schemes; accounting for tax)f1.

2Appointed daysI1

The day appointed for the coming into force of Schedule 55 to the Finance Act 2009 (penalty for failure to make returns etc)f1—

(a)

is 6th April 2011 in relation to a return or other document which—

(i)

is required to be made or delivered to Her Majesty’s Revenue and Customs in relation to the tax year 2010-11f2 or any subsequent tax year, and

(ii)

falls within item 1, 2 or 3 of the Table in paragraph 1 of that Schedule, and

(b)

is 1st April 2011 in relation to a return under section 254 of the Finance Act 2004 (pension schemes; accounting for tax) to be made in respect of a return period ending on or after 31st March 2011.

3Appointed daysI1

The day appointed for the coming into force of Schedule 56 to the Finance Act 2009 (penalty for failure to make payments on time)f1 is 6th April 2011 in relation to an amount of taxf2 which—

(a)

is payable in relation to the tax year 2010-11 or any subsequent tax year, and

(b)

falls within—

(i)

item 1, 12, 18 or 19 of the Table in paragraph 1 of that Schedule, or

(ii)

insofar as the tax falls within item 1 of that Table, item 17, 23 or 24 of that Table.

4Consequential amendments and repealsI1

The Taxes Management Act 1970f1 is amended as follows.

5Consequential amendments and repealsI1

Omit section 59C (surcharges on unpaid income tax and capital gains tax)f1.

6Consequential amendments and repealsI1

In section 69 (recovery of penalty, surcharge or interest)f1—

(a)

for subsection (1)(b) substitute—

“(b)

penalties imposed under any paragraph of Schedule 56 to the Finance Act 2009 in respect of an amount falling within any of the following items of the Table in paragraph 1 of that Schedule—

(i)

item 1, 12, 18 or 19, or

(ii)

insofar as the tax falls within item 1, item 17, 23 or 24;”;

(b)

in subsection (2) omit “, surcharge”; and

(c)

accordingly, in the heading to that section, omit “, surcharge”.

7Consequential amendments and repealsI1

Omit—

(a)

section 93 (failure to make return for income tax and capital gains tax)f1; and

(b)

section 93A (failure to make partnership return)f2.

8Consequential amendments and repealsI1

In section 100 (determination of penalties by officer of the Board)f1—

(a)

omit subsection (2)(a); and

(b)

in subsection (6)(a) omit—

(i)

“section 93(2), (4) or (5) of this Act”, and

(ii)

“or section 260(1)(b) of the Finance Act 2004”.

9Consequential amendments and repealsI1

In section 100B (appeals against penalty determinations)f1—

(a)

in subsection (1) omit “sections 93 and 93A of this Act and”; and

(b)

in subsection (2) for “Subject to sections 93(8) and 93A(7) of this Act on” substitute “On”.

10Consequential amendments and repealsI1

(1)

In section 107A (relevant trustees)f1—

(2)

In subsection (2)—

(a)

in paragraph (a)—

(i)

omit “, 93”;

(ii)

after “Schedule 41 to the Finance Act 2008” insert “or Schedule 55 to the Finance Act 2009”;

(b)

for paragraph (c) substitute—

“(c)

to a penalty under Schedule 56 to the Finance Act 2009; or”; and

(c)

for “interest, payment or surcharge” substitute “interest or payment”.

(3)

In subsection (3)—

(a)

for paragraph (a) substitute—

“(a)

in relation to a penalty under paragraph 4 of Schedule 55 to the Finance Act 2009 in respect of a return or other document falling within item 1, 2 or 3 of the Table in paragraph 1 of that Schedule, the beginning of the penalty date as defined in paragraph 1(4) of that Schedule;”

(b)

in paragraph (b), omit “other”;

(c)

for paragraph (c) substitute—

“(c)

in relation to—

(i)

a penalty under Schedule 56 to the Finance Act 2009 in respect of an amount falling within item 1, 12, 18 or 19 of the Table in paragraph 1 of that Schedule, or

(ii)

a penalty under that Schedule in respect of an amount falling within item 17, 23 or 24 of that Table so far as the tax falls within item 1,

the beginning of the penalty date as defined in paragraph 1(4) of that Schedule;”.

(4)

Omit subsection (4).

11Consequential amendments and repealsI1

For section 824(1)(c) of the Income and Corporation Taxes Act 1988 (repayment supplements: surcharges) f1 substitute—

“(c)

a penalty payable under any paragraph of Schedule 56 to the Finance Act 2009 in respect of an amount falling within any of the following items of the Table in paragraph 1 of that Schedule—

(i)

item 1, 12, 18 or 19; or

(ii)

insofar as the tax falls within item 1, item 17, 23 or 24; and”.

12Consequential amendments and repealsI1

In section 178 of the Finance Act 1989 (setting of rates of interest)f1, in subsection (2)(f) omit “59C, ”.

13Consequential amendments and repealsI1

In section 16(1) of the Social Security Contributions and Benefits Act 1992 (application of Income Tax Acts to class 4 contributions)f1 after paragraph (b), insert—

“and

(c)

the provisions of Schedules 55 and 56 to the Finance Act 2009,”.

14Consequential amendments and repealsI1

In section 260 of the Finance Act 2004 (pension schemes; accounting return)f1, omit subsections (1) to (5).

15Consequential amendments and repealsI1

In the Finance Act 2009f1—

(a)

in section 68 (employment loss relief), omit subsection (4); and

(b)

in section 108 (suspension of penalties during currency of agreement for deferred payment), omit the first row of the Table in subsection (5).

16Consequential amendments and repealsI1

In the Taxes (Interest Rate) Regulations 1989f1, omit regulation 3(1)(aa).

17Consequential amendments and repealsI1

In regulation 2(4)(a) of the Pension Benefits (Insurance Company Liable as Scheme Administrator) Regulations 2006f1, for the words “section 260(1) (accounting return)” substitute “Schedule 55 to the Finance Act 2009 (penalty for failure to make returns)”.

18Consequential amendments and repealsI1

In Schedule 3 to the Registered Pension Schemes (Splitting of Schemes) Regulations 2006 (responsibilities and liabilities of sub-scheme administrators in respect of a sub-scheme – Finance Act 2004)f1—

(a)

in the fifteenth entry in the Table in Part I—

(i)

omit “(1), (4) and” ,

(ii)

for “Penalties for failure to make a return within S254” substitute “Penalty for fraudulently or negligently making an incorrect return under S254”, and

(b)

after Part I insert the following—

“PART 1A

Other legislation

  • Schedule 55 to the Finance Act 2009 (penalty for failure to make returns)”.

19Consequential amendments and repealsI1

In the Registered Pension Schemes and Overseas Pension Schemes (Electronic Communication of Returns and Information) Regulations 2006f1, in the last paragraph of Schedule 2—

(a)

in sub-paragraph (d) for “(failure to deliver accounting return)” substitute “(fraudulently or negligently making an incorrect return)”, and

(b)

at the end of sub-paragraph (j) insert the following —

“; or

(k)

Schedule 55 to the Finance Act 2009 (penalty for failure to make returns)”.

20SavingsI1

Articles 4 to 7, 8 (a) and (b)(i), 9 to 13, 15 and 16 have no effect in relation to—

(a)

a return or other document which is required to be made or delivered to Her Majesty’s Revenue and Customs, or

(b)

an amount of tax which is payable,

in relation to the tax year 2009-10 or any previous tax year.

21SavingsI1

Articles 8(b)(ii), 14 and 17 to 19 have no effect in respect of a return period ending on or before 31st December 2010.

22SavingsF1

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

Signature

Angela Watkinson

James Duddridge

Two of the Lords Commissioners of Her Majesty’s Treasury

10th March 2011

Explanatory note

(This note is not part of the Order)

Article 2 of this Order appoints 6th April 2011 as the day on which the penalty regime for failure to make returns in Schedule 55 to the Finance Act 2009 comes into force in respect of income tax self assessment returns. Those returns affected are those required to be made or delivered to HMRC in relation to the tax year 2010-11 or any subsequent tax year.

Article 2 of this Order also appoints 1st April 2011 as the day on which the penalty regime for failure to make returns in Schedule 55 to the Finance Act 2009 comes into force in respect of pension scheme returns. Section 254 of the Finance Act 2004 requires a scheme administrator of a registered pension scheme to make returns to HMRC of the income tax to which the scheme administrator is liable. The pension scheme returns affected are those to be made under section 254 in respect to a return period ending on or after 31st March 2011.

Article 3 appoints 6th April 2011 as the day on which the penalty regime for failure to make payments on time in Schedule 56 to the Finance Act 2009 comes into force in respect of the amounts of tax falling within the income tax self assessment regime. Those amounts of tax affected are those which are payable in relation to the tax year 2010-11 or any subsequent tax year.

Articles 4 to 19 provide for consequential amendments and the repeal of the existing penalty regimes for failure to make income tax self assessment returns, failure to make pension scheme returns and failure to pay amounts of tax within the income tax self assessment regime.

Articles 20 and 21 provide that returns and amounts of tax within the income tax self assessment regime in relation to the tax year 2009-10 or any previous tax year, and pension scheme returns in relation to return periods ending on or before 31st December 2010, will be dealt with under the pre Finance Act 2009 penalty regimes.

Article 22 provides that the existing penalty regime will continue to apply for the purposes of regulation 20 of the Stamp Duty Reserve Tax Regulations 1986.

A full Impact Assessment of the effect that the interest harmonisation and late filing and late payment penalties reform will have on the costs of business and the voluntary sector was published by HMRC on 14 April 2009 and is available at http:/www.hmrc.gov.uk/better-regulation/ia.htm.