Finance (No. 3) Bill - publications.parliament.uk

1 bill 28257/1 Finance (No. 3) BillEUROPEAN CONVENTION ON HUMAN RIGHTSThe Chancellor of the Exchequer has made the following statement under section19(1)(a) of the Human Rights Act 1998:In my view the provisions of the Finance (No. 3) bill are compatible with theConvention 28257/1 Finance (No. 3) BillCONTENTSPART 1 DIRECT TAXESC harge to tax1 Income tax charge for tax year 2019-202 Corporation tax charge for financial year 2020 Income tax rates, allowances and limits3 Main rates of income tax for tax year 2019-204 Default and savings rates of income tax for tax year 2019-205 Basic rate limit and personal allowance6 Starting rate limit for savings for tax year 2019-20 Employment and social security income7 Optional remuneration arrangements.

2 Arrangements for cars and vans8 Exemption for benefit in form of vehicle-battery charging at workplace9 Exemptions relating to emergency vehicles10 Exemption for expenses related to travel11 Beneficiaries of tax-exempt employer-provided pension benefits12 Tax treatment of social security incomeChargeable gains: interests in UK land etc13 Disposals by non-UK residents etc14 Disposals of UK land etc: payments on account of capital gains taxInternational matters15 Offshore receipts in respect of intangible property16 Avoidance involving profit fragmentation arrangements17 Non-UK resident companies carrying on UK property businesses etc18 Diverted profits tax19 Hybrid and other mismatches: scope of Chapter 8 and financial instrument 20 Controlled foreign companies: Finance company exemption and controlFinance (No.)

3 3) Billii21 Permanent establishments: preparatory or auxiliary activities22 Payment of CGT exit charges23 Corporation tax exit charges24 Group relief etc: meaning of UK related companyCorporation tax: miscellaneous25 Intangible fixed assets: exceptions to degrouping charges etc26 Corporation tax relief for carried-forward losses27 Corporate interest restriction28 Debtor relationships of company where money lent to connected companiesCapital allowances29 Construction expenditure on buildings and structures30 Special rate expenditure on plant and machinery31 Temporary increase in annual investment allowance32 First-year allowances and first-year tax credits33 First-year allowance: expenditure on electric vehicle charge points34 Qualifying expenditure.

4 Buildings, structures and landLeases35 Changes to accounting standards etcOil activities and petroleum revenue tax36 Oil activities: transferable tax history37 Petroleum revenue tax: post-transfer decommissioning expenditureMiscellaneous reliefs38 Entrepreneurs relief39 Gift aid etc: restrictions on associated benefits40 Charities: exemption for small trades etcPART 2 OTHER TAXESS tamp duty land tax41 Relief for first-time buyers in cases of shared ownership42 Repayment to first-time buyers in cases of shared ownership43 Higher rates of tax for additional dwellings etc44 Exemption for financial institutions in resolution45 Changes to periods for delivering returns and paying taxStamp duty and SDRT46 Stamp duty: transfers of listed securities and connected persons47 SDRT: listed securities and connected persons48 Stamp duty.

5 Exemption for financial institutions in resolution49 Stamp duty and SDRT: exemptions for share incentive plansFinance (No. 3) BilliiiValue added tax50 Duty of customers to account for tax on supplies51 Treatment of vouchers52 Groups: eligibilityAlcohol53 Rates of duty on cider, wine and made-wine54 Excise duty on mid-strength ciderTobacco55 Rates56 Tobacco for heatingVehicle duties57 VED: rates for light passenger vehicles, light goods vehicles, motorcycles etc58 VED: taxis capable of zero emissions59 HGV road user levyAir passenger duty60 Rates of duty from 1 April 2020 Gaming61 Remote gaming duty.

6 Rate62 Gaming dutyEnvironmental taxes63 Climate change levy: exemption for mineralogical and metallurgicalprocesses64 Landfill tax ratesInheritance tax65 Residence nil-rate bandSoft drinks industry levy66 Application of penalty provisions67 Isle of ManPART 3 carbon EMISSIONS TAXI ntroductory68 carbon emissions taxFinance (No. 3) BillivCharge to tax69 Charge to carbon emissions tax70 Reported carbon emissions 71 Emissions report and reporting period 72 Emissions allowance 73 Liability to pay carbon emissions taxAdministration to make further provision about carbon emissions tax75 Consequential provisionGeneral76 Interpretation77 Regulations78 Commencement and transitional provisionPART 4 ADMINISTRATION AND ENFORCEMENTTime limits for assessments etc79 Offshore matters or transfers.

7 Income tax and capital gains tax80 Offshore matters or transfers: inheritance taxSecurity deposits81 Construction industry scheme and corporation tax etcInternational agreements82 Resolution of double taxation disputes83 International tax enforcement: disclosable arrangementsPayment of unlawful advance corporation tax84 Interest in respect of unlawful ACT85 Section 84: supplementaryVoluntary returns86 Voluntary returnsInterest87 Interest under section 178 of FA 1989 and section 101 of FA 2009 Finance (No. 3) BillvPART 5 MISCELLANEOUS AND FINALR egulatory capital securities88 Regulatory capital securities and hybrid capital instrumentsEU withdrawal89 Minor amendments in consequence of EU withdrawalPreparatory expenditure90 Emissions reduction trading scheme.

8 Preparatory expenditureOther91 Interpretation92 Short titleSchedule 1 Chargeable gains accruing to non-residents etcPart 1 Extending cases in which non-residents are charged to tax etcPart 2 Consequential amendmentsPart 3 Commencement and transitional provisions etcSchedule 2 Returns for disposals of UK land etcPart 1 Returns and payments on account: disposals of UK land etcPart 2 Notification of chargeable amounts, amendments of returns,enquiries etcPart 3 Consequential amendmentsSchedule 3 Offshore receipts in respect of intangible propertySchedule 4 Avoidance involving profit fragmentation arrangementsSchedule 5 Non-UK resident companies carrying on UK propertybusinesses etcPart 1 Extension of scope of chargePart 2 Supplementary & Consequential amendmentsPart 3 Commencement and transitional provisionsSchedule 6 Diverted profits taxSchedule 7 Payment of CGT exit chargesSchedule 8 Corporation tax exit chargesPart 1

9 CT exit charge payment plansPart 2 Repeal of certain postponement provisionsPart 3 Treatment of assets subject to EU exit chargesSchedule 9 Corporation tax relief for carried-forward lossesSchedule 10 Corporate interest restrictionSchedule 11 Eliminating tax mismatch for certain debt Schedule 12 Annual investment allowance: periods straddling 1 January2019 or 1 January 2021 Schedule 13 Leases: changes to accounting standards etcPart 1 Finance leases: amendments as a result of changes toaccounting standardsFinance (No.)

10 3) BillviPart 2 Long funding leasesPart 3 Changes to accounting standards and tax adjustmentsSchedule 14 Oil activities: transferable tax historyPart 1 Election to transfer tax historyPart 2 The total TTH amountPart 3 Effect of a TTH election on the sellerPart 4 Effect of a TTH election on the purchaserPart 5 TTH activationPart 6 Allocation of activated TTH amountPart 7 Supplementary charge: recalculation of adjusted ring fenceprofitsPart 8 TTH elections: conditions and procedurePart 9 TTH elections: approvalPart 10 TTH elections: effective date and withdrawalPart 11 TTH elections: inaccuraciesPart 12 Chargeable gainsPart 13 Onward salePart 14 SupplementaryPart 15 InterpretationSchedule 15 Entrepreneurs reliefSchedule 16 VAT treatment of vouchersSchedule 17 VAT groups: eligibilityPart 1 Eligibility of individuals and partnershipsPart 2 Consequential amendmentsSchedule 18 Ga