Finance Act 2014 - legislation

1 Finance Act 2014 CHAPTER 26 .75 57 Finance Act 2014 CHAPTER 26 CONTENTSPART 1 INCOME TAX, CORPORATION TAX AND CAPITAL GAINS TAXCHAPTER 1 CHARGE, RATES ETCI ncome tax1 Charge, rates, basic rate limit and personal allowance for 2014 -152 Basic rate limit for 2015-16 and personal allowances from 20153 The starting rate for savings and the savings rate limit4 Indexation of limits and allowances under ITA 2007 Corporation tax5 Charge for financial year 20156 Small profits rate and fractions for financial year 20147 Rates for ring fence profits and abolition of small profits rate for non-ringfence profitsCapital gains tax8 Annual exempt amount for 2014 -159 Annual exempt amount for 2015-16 onwardsCapital allowances10 Temporary increase in annual investment allowanceFinance Act 2014 (c.)

2 26)iiCHAPTER 2 INCOME TAX: GENERALE xemptions and reliefs11 Tax relief for married couples and civil partners12 Recommended medical treatment13 Relief for loan interest: loan to buy interest in close company14 Relief for loan interest: loan to buy interest in employee-controlled companyOther provisions15 Restrictions on remittance basis16 Treatment of agency workers17 Recovery under PAYE regulations from certain company officers18 Employment intermediaries: information powers and related penalties19 Payments by employer on account of tax where deduction not possible20 PAYE obligations of UK intermediary in cases involving non-UK employer21 Oil and gas workers on the continental shelf: operation of PAYE22 Threshold for benefit of loan to be treated as earnings23 Taxable benefits: cars, vans and related benefits24 Cars: the appropriate percentage25 Cars and vans: payments for private useCHAPTER 3 CORPORATION TAX: GENERAL26 Release of debts: stabilisation powers under Banking Act 200927 Holdings treated as rights under loan relationships28De-grouping charges (loan relationships etc)29 Disguised distribution arrangements involving derivative contracts30 Avoidance schemes involving the transfer of corporate profits31R&D tax credits for small or medium-sized enterprises32 Film tax relief33 Television tax relief.

3 Activities to be treated as separate trade34 Video games development35 Community amateur sports clubs36 Tax relief for theatrical production37 Changes in company ownership38 Transfer of deductions: research and development allowances39 Tax treatment of financing costs and income40 Determination of beneficial entitlement for purposes of group reliefCHAPTER 4 OTHER PROVISIONSP ensions41 Pension flexibility: drawdown42 Pension flexibility: taking low-value pension rights as lump sum43 Pension flexibility: further amendmentsFinance Act 2014 (c. 26)iii44 Transitional provision for new standard lifetime allowance for 2014 -15 etc45 Taxable specific income: effect on pension input amount for non-UK schemes46 Pension schemesSporting events47 Glasgow Grand Prix48 Major sporting events: power to provide for tax exemptionsEmployee share schemes49 Share incentive plans: increases in maximum annual awards etc50 Share incentive plans.

4 Power to adjust maximum annual awards etc51 Employee share schemes52 Employment-related securities etcInvestment reliefs53 Venture capital trusts54 Removing time limit on seed enterprise investment scheme relief55 Removing time limit on CGT relief in respect of re-investment under SEIS56 Exclusion of incentivised electricity or heat generation activitiesSocial investment relief57 Relief for investments in social enterprisesCapital gains58 Relief on disposal of private residence59 Remittance basis and split year treatment60 Termination of life interest and death of life tenant: disabled persons61 Capital gains roll-over relief: relevant classes of assets62 Capital gains roll-over relief: intangible fixed assets63 Avoidance involving lossesCapital allowances64 Extension of capital allowances65 General Block Exemption Regulation66 Business premises renovation allowances67 Mineral extraction allowances: activities not within charge to tax68 Mineral extraction allowances: expenditure on planning permissionOil and gas69 Extended ring fence expenditure supplement for onshore activities70 Supplementary charge: onshore allowance71 Oil and gas: reinvestment after pre-trading disposal72 Substantial shareholder exemption: oil and gas73 Oil contractor activities: ring-fence trade etcFinance Act 2014 (c.)

5 26)ivPartnerships74 PartnershipsTransfer pricing75 Transfer pricing: restriction on claims for compensation adjustmentsPART 2 EXCISE DUTIES AND OTHER TAXESA lcohol76 Rates of alcoholic liquor dutiesTobacco77 Rates of tobacco products dutyAir passenger duty78 Air passenger duty: rates of duty from 1 April 201479 Air passenger duty: rates of duty from 1 April 201580 Air passenger duty: adjustments to Part 3 of Schedule 5A to FA 1994 Vehicle excise duty81 VED rates for light passenger vehicles, light goods vehicles, motorcycles etc82 VED rates: rigid goods vehicle with trailers83 VED rates: use for exceptional loads, rigid goods vehicles and tractive units84 VED: extension of old vehicles exemption from 1 April 201485 VED: extension of old vehicles exemption from 1 April 201586 Abolition of reduced VED rates for meeting reduced pollution requirements87 Six month licence: tractive units88 Vehicles subject to HGV road user levy: amount of 6 month licence89 Payment of vehicle excise duty by direct debit90 Definition of revenue weight 91 Vehicle excise and registration: other provisionsHGV road user levy92 HGV road user levy: rates tables93 HGV road user levy: disclosure of information by HMRCA ggregates levy94 Aggregates levy: removal of certain exemptions95 Aggregates levy: power to restore exemptionsClimate change levy96 Climate change levy: main rates for 2015-1697 Climate change levy: carbon price support rates for 2014 -15 and 2015-1698 Climate change levy.

6 Carbon price support rates for 2016-17 Finance Act 2014 (c. 26)v99 Climate change levy: exemptions: mineralogical & metallurgical processes etcLandfill tax100 Rates of landfill taxExcise and customs duties: general101 Goods carried as stores102 Penalties under section 26 of FA 2003: extension to excise dutyValue added tax103 VAT: special schemes104 VAT: place of belonging105 VAT: place of supply orders: disapplication of transitional provision106 VAT: supply of services through agents107 VAT: refunds to health service bodies108 VAT: prompt payment discountsStamp duty land tax and annual tax on enveloped dwellings109 ATED: reduction in threshold from 1 April 2015110 ATED: further reduction in threshold from 1 April 2016111 SDLT: threshold for higher rate applying to certain transactions112 SDLT.

7 Exercise of collective rights by tenants of flats113 SDLT: charities reliefStamp duty reserve tax and stamp duty114 Abolition of SDRT on certain dealings in collective investment schemes115 Abolition of stamp duty and SDRT: securities on recognised growth markets116 Temporary statutory effect of House of Commons resolutionInheritance tax117 Inheritance taxEstate duty118 Gifts to the nation: estate dutyBank levy119 Bank levy: rates from 1 January 2014120 Bank levy: miscellaneous changesGaming duty121 Rates of gaming dutyBingo duty122 Rate of bingo dutyFinance Act 2014 (c. 26)vi123 Exemption from bingo duty: small-scale amusements provided commerciallyMachine games duty124 Rates of machine games dutyPART 3 GENERAL BETTING DUTY, POOL BETTING DUTY AND REMOTE GAMING DUTYCHAPTER 1 GENERAL BETTING DUTYThe duty125 General betting dutyGeneral and spread bets126 General bets127 General betting duty charge on general bets128 Spread bets129 General betting duty charge on financial spread bets130 General betting duty charge on non-financial spread bets131 Ordinary profits132 Retained winnings profits133 Bet-brokersPool betting on horse and dog races134 Chapter 1 pool bets135 General betting duty charge on Chapter 1 pool bets136 Profits on pooled stake Chapter 1 pool bets137 Profits on ordinary Chapter 1 pool bets138 Profits on retained winnings on Chapter 1 pool betsStake money and winnings139 Chapter 1: stake money140 Chapter 1.

8 WinningsExchanges141 General betting duty charge on betting exchangesPayment142 Liability to payFinance Act 2014 (c. 26)viiCHAPTER 2 POOL BETTING DUTY143 Chapter 2 pool bets144 Pool betting duty charge on Chapter 2 pool bets145 Profits on pooled stake Chapter 2 pool bets146 Profits on ordinary Chapter 2 pool bets147 Profits on retained winnings on Chapter 2 pool bets148 Chapter 2: stake money149 Chapter 2: winnings150 Payments treated as bets151 Payment and recovery152 Notification of reliance on community benefit exemption153 Bets made for community benefitCHAPTER 3 REMOTE GAMING DUTY154 Remote gaming155 Remote gaming duty156 Profits on pooled prize gaming157 Profits on ordinary gaming158 Profits on retained prizes159 Gaming payments160 Prizes161 Exemptions162 Liability to payCHAPTER 4 GENERALA dministration163 Administration164 Registration165 Accounting period166 Returns167 Payment168 Information and records169 Stake funds and gaming prize fundsSecurity and enforcement170 Security for payment171 Appointment of UK representative172 Security and representatives.

9 Review and appeal173 Offence of failing to provide security or appoint representative174 Fraudulent evasion175 Penalties under section 9 of FA 1994176 Interest177 Suspension and revocation of remote operating licencesFinance Act 2014 (c. 26)viiiOffences and evidence178 Offences by bodies corporate179 Protection of officers180 Evidence by certificate, etc181 Facilities capable of being used in United Kingdom: burden of proofReview and appeal182 Review and appealDefinitions183 Bet184 Pool betting185 Fixed odds186UK person187On-course betting and excluded betting188 Gaming189 Other definitions190 IndexSupplementary191 Amounts not in sterling192 Limited liability partnerships193 Effect of imposition of duties194 Regulations195 Notices196 Consequential amendments and repeals197 Transitional and saving provisions198 Commencement and effectPART 4 FOLLOWER NOTICES AND ACCELERATED PAYMENTSCHAPTER 1 INTRODUCTIONO verview199 Overview of Part 4 Main definitions200 Relevant tax 201 Tax advantage and tax arrangements 202 Tax enquiry and return 203 Tax appeal Finance Act 2014 (c.)

10 26)ixCHAPTER 2 FOLLOWER NOTICESG iving of follower notices204 Circumstances in which a follower notice may be given205 Judicial ruling and circumstances in which a ruling is relevant 206 Content of a follower noticeRepresentations207 Representations about a follower noticePenalties208 Penalty if corrective action not taken in response to follower notice209 Amount of a section 208 penalty210 Reduction of a section 208 penalty for co-operation211 Assessment of a section 208 penalty212 Aggregate penalties213 Alteration of assessment of a section 208 penalty214 Appeal against a section 208 penaltyPartners and partnerships215 Follower notices: treatment of partners and partnershipsAppeals out of time216 Late appeal against final judicial rulingTransitional provision217 Transitional provisionDefined terms218 Defined terms used in Chapter 2 CHAPTER 3 ACCELERATED PAYMENTA ccelerated payment notices219 Circumstances in which an accelerated payment notice may be given220 Content of notice given while a tax enquiry is in progress221 Content of notice given pending an appeal222 Representations about a noticeForms of accelerated payment223 Effect of notice given while tax enquiry is in progressFinance Act 2014 (c.