Finance (No. 2) Act 2017 - Legislation.gov.uk

1 Finance (No. 2) Act 2017 CHAPTER 32 (No. 2) Act 2017 CHAPTER 32 CONTENTSPART 1 DIRECT TAXESI ncome tax: employment and pensions1 Taxable benefits: time limit for making good2 Taxable benefits: ultra-low emission vehicles3 Pensions advice4 Legal expenses etc5 Termination payments etc: amounts chargeable on employment income6 PAYE settlement agreements7 Money purchase annual allowanceIncome tax: investments8 Dividend nil rate for tax year 2018-19 etc9 Life insurance policies: recalculating gains on part surrenders etc10 Personal portfolio bonds11 EIS and SEIS: the no pre-arranged exits requirement12 VCTs: follow-on funding13 VCTs: exchange of non-qualifying shares and securities14 Social investment tax relief15 Business investment reliefIncome tax: trading and property businesses16 Calculation of profits of trades and property businesses17 Trading and property allowancesCorporation tax18 Carried-forward lossesFinance (No.)

2 2) Act 2017 (c. 32)ii19 Losses: counteraction of avoidance arrangements20 Corporate interest restriction21 Museum and gallery exhibitions22 Grassroots sport23 Profits from the exploitation of patents: cost-sharing arrangements24 Hybrid and other mismatches25 Trading profits taxable at the Northern Ireland rateChargeable gains26 Elections in relation to assets appropriated to trading stock27 Substantial shareholding exemption28 Substantial shareholding exemption: institutional investorsDomicile, overseas property etc29 Deemed domicile: income tax and capital gains tax30 Deemed domicile: inheritance tax31 Settlements and transfer of assets abroad: value of benefits32 Exemption from attribution of carried interest gains33 Inheritance tax on overseas property representing UK residential propertyDisguised remuneration34 Employment income provided through third parties35 Trading income provided through third parties36 Disguised remuneration schemes: restriction of income tax relief37 Disguised remuneration schemes: restriction of corporation tax reliefCapital allowances38 First-year allowance for expenditure on electric vehicle charging pointsTransactions in UK land39 Disposals concerned with land in United KingdomCo-ownership authorised contractual schemes40Co-ownership authorised contractual schemes: capital allowances41Co-ownership authorised contractual schemes: information requirements42Co-ownership authorised contractual schemes.

3 Offshore fundsPART 2 INDIRECT TAXES43 Air passenger duty: rates of duty from 1 April 201844 Petroleum revenue tax: elections for oil fields to become non-taxable45 Gaming duty: rates46 Remote gaming duty: freeplay47 Tobacco products manufacturing machinery: licensing schemeFinance (No. 2) Act 2017 (c. 32)iiiPART 3 FULFILMENT BUSINESSES48 Carrying on a third country goods fulfilment business49 Requirement for approval50 Register of approved persons51 Regulations relating to approval, registration of information by HMRC53 Offence54 Forfeiture55 Penalties56 Appeals57 Regulations58 Interpretation59 CommencementPART 4 ADMINISTRATION, AVOIDANCE AND ENFORCEMENTR eporting and record-keeping60 Digital reporting and record-keeping for income tax etc61 Digital reporting and record-keeping for income tax etc: further amendments62 Digital reporting and record-keeping for VATE nquiries63 Partial closure noticesAvoidance etc64 Errors in taxpayers documents65 Penalties for enablers of defeated tax avoidance66 Disclosure of tax avoidance schemes.

4 VAT and other indirect taxes67 Requirement to correct certain offshore tax non-compliance68 Penalty for transactions connected with VAT fraud etcInformation69 Data-gathering from money service businessesPART 5 FINAL70 Northern Ireland welfare payments: updating statutory reference71 Interpretation72 Short titleFinance (No. 2) Act 2017 (c. 32)ivSchedule 1 Social investment tax reliefPart 1 Amendments of Part 5B of ITA 2007 Part 2 Consequential amendmentsPart 3 CommencementSchedule 2 Trades and property businesses: calculation of profitsPart 1 Trades etc: amendments of ITTOIA 2005 Part 2 Property businesses: amendments of ITTOIA 2005 Part 3 Trades etc: amendments of other ActsPart 4 Commencement and transitional provisionSchedule 3 Trading and property allowancesPart 1 Main provisionsPart 2 Consequential amendmentsPart 3 CommencementSchedule 4 Relief for carried-forward lossesPart 1 Amendment of general rules about carrying forward lossesPart 2 Restriction on deductions in respect of carried-forward lossesPart 3 Group relief for carried-forward lossesPart 4 Insurance companies.

5 Carrying forward BLAGAB trade lossesPart 5 Carrying forward trade losses in certain creative industriesPart 6 Oil activitiesPart 7 Oil contractorsPart 8 Transferred tradesPart 9 Tax avoidancePart 10 Northern Ireland trading losses etcPart 11 Minor and consequential amendmentsPart 12 Commencement etcSchedule 5 Corporate interest restrictionPart 1 New Part 10 of TIOPA 2010 Part 2 New Schedule 7A to TIOPA 2010 Part 3 Consequential amendmentsPart 4 Commencement and transitional provisionSchedule 6 Relief for production of museum and gallery exhibitionsPart 1 Amendment of CTA 2009 Part 2 Consequential amendmentsPart 3 CommencementSchedule 7 Trading profits taxable at the Northern Ireland ratePart 1 Amendments relating to SMEsPart 2 Minor amendmentsPart 3 Commencement etcSchedule 8 Deemed domicile: income tax and capital gains taxPart 1 Application of deemed domicile rulePart 2 Protection of overseas trustsPart 3 Capital gains tax rebasingPart 4 Cleansing of mixed fundsSchedule 9 Settlements and transfer of assets abroad: value of benefitsSchedule 10 Inheritance tax on overseas property representing UKresidential propertySchedule 11 Employment income provided through third parties: loans etcoutstanding on 5 April 2019 Part 1 Application of Part 7A of ITEPA 2003 Part 2 Approval of a qualifying loan 3 ExclusionsPart 4 Supplementary provisionPart 5 Consequential amendmentsFinance (No.)

6 2) Act 2017 (c. 32)vSchedule 12 Trading income provided through third parties: loans etcoutstanding on 5 April 2019 Schedule 13 Third country goods fulfilment businesses: penaltySchedule 14 Digital reporting and record-keeping for income tax etc:further amendmentsPart 1 Amendments of TMA 1970 Part 2 Amendments of other ActsSchedule 15 Partial closure noticesSchedule 16 Penalties for enablers of defeated tax avoidancePart 1 Liability to penaltyPart 2 Abusive and tax arrangements : meaningPart 3 Defeat in respect of abusive tax arrangementsPart 4 Persons who enabled the arrangementsPart 5 Amount of penaltyPart 6 Assessment of penaltyPart 7 GAAR Advisory Panel opinion, and representationsPart 8 AppealsPart 9 InformationPart 10 Publishing details of persons who have incurred penaltiesPart 11 MiscellaneousPart 12 GeneralSchedule 17 Disclosure of tax avoidance schemes.

7 VAT and other indirecttaxesPart 1 Duties to disclose avoidance schemes etcPart 2 PenaltiesPart 3 Consequential amendmentsPart 4 SupplementalSchedule 18 Requirement to correct certain offshore tax non-compliancePart 1 Liability for penalty for failure to correctPart 2 Amount of penaltyPart 3 Further provisions relating to the requirement to correctPart 4 SupplementaryELIZABETH IIc. 32 Finance (No. 2) Act 20172017 CHAPTER 32An 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 .[16th November 2017 ]Most Gracious SovereignE, Your Majesty s most dutiful and loyal subjects, the Commons of theUnited Kingdom in Parliament assembled, towards raising the necessarysupplies to defray Your Majesty s public expenses, and making an addition to thepublic revenue, have freely and voluntarily resolved to give and to grant unto YourMajesty the several duties hereinafter mentioned.

8 And do therefore most humblybeseech Your Majesty that it may be enacted, and be it enacted by the Queen s mostExcellent Majesty, by and with the advice and consent of the Lords Spiritual andTemporal, and Commons, in this present Parliament assembled, and by the authorityof the same, as follows: PART 1 DIRECT TAXESI ncome tax: employment and pensions1 Taxable benefits: time limit for making good(1)Part 3 of ITEPA 2003 (employment income: earnings and benefits etc treated asearnings) is amended as follows.(2)In section 87 (cash equivalent of benefit of non-cash voucher) WFinance (No. 2) Act 2017 (c. 32)Part 1 Direct taxes2(a)in subsection (2)(b), for to the person incurring it substitute , to theperson incurring it, on or before 6 July following the relevant tax year ,and(b)after subsection (2) insert (2A)If the voucher is a non-cash voucher other than a chequevoucher, the relevant tax year is (a)the tax year in which the cost of provision is incurred, or(b)if later, the tax year in which the employee receives thevoucher.

9 (2B)If the voucher is a cheque voucher, the relevant tax year is thetax year in which the voucher is handed over in exchange formoney, goods or services. (3)In section 88(3) (time at which cheque voucher treated as handed over), at thebeginning insert For the purposes of subsection (2) and sections 87(2B) and87A(6), . (4)In section 94(2) (cash equivalent of benefit of credit-token), in paragraph (b), forthe words from employee to the end substitute employee (i)to the person incurring it, and(ii)on or before 6 July following the tax year which containsthe occasion in question. (5)In section 105(2) (cash equivalent of benefit of living accommodation costing 75,000 or less), in paragraph (b), after made good insert , on or before 6 Julyfollowing the tax year which contains the taxable period.

10 (6)In section 106(3) (cash equivalent of benefit of living accommodation costingover 75,000), in paragraph (a), for the words from paid to exceeds substitute paid (i)by the employee,(ii)in respect of the accommodation,(iii)to the person providing it, and(iv)on or before 6 July following the tax year which containsthe taxable period,exceeds .(7)In section 144 (deduction for payments for private use of car) (a)in subsection (1)(b), for in substitute on or before 6 July following ,(b)in subsection (2), after paid insert as mentioned in subsection (1)(b) ,and(c)in subsection (3), after paid insert as mentioned in subsection (1)(b) .(8)In section 151(2) (when cash equivalent of benefit of car fuel is nil) (a)in the words before paragraph (a) omit in the tax year in question ,(b)in paragraph (a), at the beginning insert in the tax year in question, ,and(c)in paragraph (b), at the end insert on or before 6 July following that taxyear.