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: purchase by companyDisguised remuneration15 Employment income provided through third partiesFinance Act 2017 (c.)

2 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: 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.

3 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 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.

4 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: 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.

5 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 .[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: 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.)

6 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%.(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.

7 (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).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.)

8 10)Part 1 Direct and indirect taxes3(b)after subsection (1) insert (1A)In this section and section 205A, private use means privateuse by the employee or a member of the employee s family orhousehold.(1B)For the purposes of subsection (1) and sections 205A and 205B,an asset made available in a tax year for use by the employee ora member of the employee s family or household is to be treatedas made available throughout the year for private use unless (a)at all times in the year when it is available for use by theemployee or a member of the employee s family orhousehold, the terms under which it is made availableprohibit private use, and (b)no private use is made of it in the year.(1C)The cost of the taxable benefit is (a)the annual cost of the benefit determined in accordancewith subsection (2), less(b)any amount required to be deducted by section 205A(deduction for periods when asset unavailable forprivate use).

9 (1D)In certain cases, the cost of the taxable benefit is calculatedunder this section in accordance with section 205B (reduction ofcost of taxable benefit where asset is shared). , and(c)in subsection (2), in the words before paragraph (a), for cost of thetaxable substitute annual cost of the .(3)After section 205 insert 205A Deduction for periods when asset unavailable for private use(1)A deduction is to be made under section 205(1C)(b) if the assetmentioned in section 205(1) has been unavailable for private use on anyday during the tax year concerned.(2)For the purposes of this section an asset is unavailable for private useon any day if (a)that day falls before the day on which the asset is first availableto the employee,(b)that day falls after the day on which the asset is last available tothe employee,(c)for more than 12 hours during that day the asset (i)is not in a condition fit for use,(ii)is undergoing repair or maintenance,(iii)could not lawfully be used,(iv)is in the possession of a person who has a lien over it andwho is not the employer, not a person connected withthe employer, not the employee, not a member of theemployee s family and not a member of the employee shousehold, or(v)

10 Is used in a way that is neither use by, nor use at thedirection of, the employee or a member of theemployee s family or household, or Finance Act 2017 (c. 10)Part 1 Direct and indirect taxes4(d)on that day the employee (i)uses the asset in the performance of the duties of theemployment, and(ii)does not use the asset otherwise than in the performanceof the duties of the employment.(3)The amount of the deduction is given by where U is the number of days, in the tax year concerned, on which theasset is unavailable for private use,Y is the number of days in that year, andA is the annual cost of the benefit of the asset determined undersection 205(2).(4)The reference in subsection (2)(a) to the time when the asset is firstavailable to the employee is to the earliest time when the asset is madeavailable, by reason of the employment and without any transfer of theproperty in it, for private use.