Finance Act 2017 - legislation

1 Finance Act 2017 CHAPTER 10 Act 2017 CHAPTER 10 CONTENTSPART 1 DIRECT AND INDIRECT TAXESI ncome tax charge and rates1 Income tax charge for tax year 2017 -182 Main rates of income tax for tax year 2017 -183 Default and savings rates of income tax for tax year 2017 -184 Starting rate limit for savings for tax year 2017 -18 Corporation tax charge5 Corporation tax charge for financial year 2018 Income tax: general6 Workers services provided to public sector through intermediaries7 Optional remuneration arrangements8 Taxable benefits: asset made available without transfer9 Overseas pensions10 Pensions: offshore transfers11 Deduction of income tax at sourceEmployee shareholder shares12 Employee shareholder shares: amount treated as earnings13 Employee shareholder shares: abolition of CGT exemption14 Employee shareholder shares.

2 Purchase by companyDisguised remuneration15 Employment income provided through third partiesFinance Act 2017 (c. 10)iiIndirect taxes16 VAT: zero-rating of adapted motor vehicles etc17 Insurance premium tax: standard rate18 Insurance premium tax: anti-forestalling provision19 Air passenger duty: rates from 1 April 201720 Vehicle excise duty: rates21 Alcoholic liquor duties: rates22 Tobacco products duty: rates23 Tobacco products duty: minimum excise dutyAvoidance24 Promoters of tax avoidance schemes: threshold conditions etcPART 2 SOFT DRINKS INDUSTRY LEVYI ntroductory25 Soft drinks industry levy26 Soft drink and package 27 Meaning of prepared drink Chargeable soft drinks28 Meaning of chargeable soft drink 29 Sugar content condition30 Exempt soft drinksCharging of the soft drinks industry levy31 Charge to soft drinks industry levy32 Chargeable events: soft drinks packaged in the UK33 Chargeable events.

3 Soft drinks imported into the UK34 Secondary warehousing regulations35 Liability to pay the levy36 Levy ratesExemption etc37 Small producer exemption38 Meaning of small producer 39 Tax creditsRegistration40 The register41 Liability to register: packagers42 Liability to register: producers43 Liability to register: imported chargeable soft drinks44 Notification of liability and registration45 Voluntary registration: small producers46 Cancellation of registration under section 41, 42 or 43 Finance Act 2017 (c.)

4 10)iii47 Cancellation of voluntary registration48 Correction of the register49 Applications, notifications etcOffences50 Fraudulent evasion51 Failure to notify registration liabilityAdministration and enforcement52 Payment, collection and recovery53 Records54 Power to make further provision about enforcement55 Appeals etc56 Supplementary amendmentsMiscellaneous57 Regulations: death, incapacity or insolvency of person carrying on a business58 Provisional collection of soft drinks industry levyGeneral59 Interpretation of Part 260 Regulations61 CommencementPART 3 FINAL62 Interpretation63 Short titleSchedule 1 Workers services provided to public sector throughintermediariesPart 1 Preliminary amendmentsPart 2 New Chapter 10 of Part 2 of ITEPA 2003 Part 3 Consequential amendmentsPart 4 CommencementSchedule 2 Optional remuneration arrangementsSchedule 3 Overseas

5 PensionsPart 1 Registered pension schemes established outside the UKPart 2 Income tax on pension incomePart 3 Lump sums for UK residents from foreign pension schemesSchedule 4 Pensions: offshore transfersPart 1 Charges where payments made in respect of overseaspensionsPart 2 Income tax on pension transfers: overseas transfer chargeSchedule 5 Deduction of income tax at sourceFinance Act 2017 (c. 10)ivPart 1 Interest distributions of investment trust or authorisedinvestment fundPart 2 Interest on peer-to-peer lendingPart 3 Further amendment and commencementSchedule 6 Employment income provided through third partiesSchedule 7 VAT: zero-rating of adapted motor vehicles etcSchedule 8 Soft drinks industry levy: recovery and overpaymentsPart 1 RecoveryPart 2 OverpaymentsPart 3 Further provision about notices 9 Soft drinks industry levy.

6 Requirements to keep records etc:penaltiesPart 1 PenaltiesPart 2 AssessmentsSchedule 10 Soft drinks industry levy: appeals and reviewsPart 1 Appealable decisionsPart 2 ReviewsPart 3 AppealsSchedule 11 Soft drinks industry levy: supplementary amendmentsELIZABETH IIc. 10 Finance Act 20172017 CHAPTER 10An Act to grant certain duties, to alter other duties, and to amend the lawrelating to the national debt and the public revenue, and to make furtherprovision in connection with Finance .

7 [27th April 2017 ]Most Gracious SovereignE, Your Majesty s most dutiful and loyal subjects, the Commons of the UnitedKingdom in Parliament assembled, towards raising the necessary supplies todefray Your Majesty s public expenses, and making an addition to the publicrevenue, have freely and voluntarily resolved to give and to grant unto Your Majestythe several duties hereinafter mentioned; and do therefore most humbly beseechYour Majesty that it may be enacted, and be it enacted by the Queen s most ExcellentMajesty, by and with the advice and consent of the Lords Spiritual and Temporal, andCommons, in this present Parliament assembled, and by the authority of the same, asfollows.

8 PART 1 DIRECT AND INDIRECT TAXESI ncome tax charge and rates1 Income tax charge for tax year 2017 -18 Income tax is charged for the tax year rates of income tax for tax year 2017 -18 For the tax year 2017 -18 the main rates of income tax are as follows (a)the basic rate is 20%;WFinance Act 2017 (c. 10)Part 1 Direct and indirect taxes2(b)the higher rate is 40%;(c)the additional rate is 45%.3 Default and savings rates of income tax for tax year 2017 -18(1)For the tax year 2017 -18 the default rates of income tax are as follows (a)the default basic rate is 20%;(b)the default higher rate is 40%;(c)the default additional rate is 45%.

9 (2)For the tax year 2017 -18 the savings rates of income tax are as follows (a)the savings basic rate is 20%;(b)the savings higher rate is 40%;(c)the savings additional rate is 45%.4 Starting rate limit for savings for tax year 2017 -18(1)For the amount specified in section 12(3) of ITA 2007 (starting rate for savings)substitute 5000 .(2)The amendment made by subsection (1) has effect in relation to the tax year2017-18 and subsequent tax years.(3)Section 21 of ITA 2007 (indexation), so far as relating to the starting rate limitfor savings, does not apply in relation to the tax year 2017 -18 (but this sectiondoes not override that section for subsequent tax years).

10 Corporation tax charge5 Corporation tax charge for financial year 2018 Corporation tax is charged for the financial year tax: general6 Workers services provided to public sector through intermediariesSchedule 1 makes provision about workers services provided to the publicsector through remuneration arrangementsSchedule 2 makes provision about optional remuneration benefits: asset made available without transfer(1)ITEPA 2003 is amended as follows.(2)In section 205 (cost of taxable benefit subject to the residual charge: asset madeavailable without transfer) (a)in subsection (1), for paragraph (a) substitute (a)the benefit consists in an asset being made available forprivate use, and , Finance Act 2017 (c.)