The Finance Act 2008, Schedule 40 (Appointed Day, Transitional Provisions and Consequential Amendments) Order 2009

• Citation: S.I. 2009/571
• Sections: 42

Section 1 Citation and interpretation

(1) This Order may be cited as the Finance Act 2008, Schedule 40 (Appointed Day, Transitional Provisions and Consequential Amendments) Order 2009 and comes into force on 1st April 2009.

(2) In this Order a reference to a paragraph (without more) is a reference to that paragraph of Schedule 40 to the Finance Act 2008.

(3) In this Order—

“filing date”, in relation to a relevant document, means—

where the document is required to be given to HMRC , the date by which it is required to be given, and

where the document is not required to be given to HMRC, the date on which it is given;

“HMRC” means Her Majesty’s Revenue and Customs ;

“relevant documents” means documents given to HMRC of a kind inserted in the Table in paragraph 1 of Schedule 24 by paragraph 2(4) or (5);

“relevant tax” means any tax inserted in the Table in paragraph 1 of Schedule 24 by paragraph 2(4) or (5);

“Schedule 24” means Schedule 24 to the Finance Act 2007 ; and

“tax period” has the meaning given in paragraph 28(g) of Schedule 24.

Section 2 Appointed day

The day appointed for the coming into force of Schedule 40 to the Finance Act 2008 is 1st April 2009.

Section 3 Appointed day

In their application in relation to penalties payable under paragraph 1 of Schedule 24 (error in taxpayer’s document), the entries inserted by paragraph 2(4) and (5) shall have effect in relation to—

(a) relevant documents—

(i) which relate to tax periods commencing on or after 1st April 2009, and

(ii) for which the filing date is on or after 1st April 2010;

(b) relevant documents relating to all claims for repayments of relevant tax made on or after 1st April 2010 which are not related to a tax period;

(c) relevant documents produced under regulations under section 256 of the Inheritance Tax Act 1984 (“ IHTA 1984 ”) (regulations about accounts, etc ), where the date of death is on or after 1st April 2009; and

(d) in any other case, relevant documents given where a person’s liability to pay relevant tax arises on or after 1st April 2010.

Section 4 Appointed day

In their application in relation to penalties payable under paragraph 1A of Schedule 24 (error in taxpayer’s document attributable to another person), the entries inserted by paragraph 2(4) and (5) shall have effect in relation to—

(a) relevant documents—

(i) which relate to tax periods commencing on or after 1st April 2009, and

(ii) for which the filing date is on or after 1st April 2010;

(b) relevant documents relating to all claims for repayments of relevant tax made on or after 1st April 2010 which are not related to a tax period;

(c) relevant documents produced under regulations under section 256 of IHTA 1984 (regulations about accounts, etc) where the date of death is on or after 1st April 2009; and

(d) in any other case, relevant documents given where a person’s liability to pay relevant tax arises on or after 1st April 2010.

Section 5 Appointed day

In their application in relation to assessments falling within paragraph 2 of Schedule 24 (under-assessment by HMRC), the entries inserted by paragraph 2(4) and (5) shall have effect in relation to tax periods commencing on or after 1st April 2009, where the filing date for the relevant document is on or after 1st April 2010.

Section 6 Transitional provisions

(1) Paragraph 21 (consequential repeals) repeals the provisions listed in paragraph (2) only in so far as those provisions relate to conduct involving dishonesty which relates to—

(a) an inaccuracy in a document, or

(b) a failure to notify HMRC of an under-assessment by HMRC.

(2) The provisions referred to in paragraph (1) are—

(a) in the Finance Act 1994 —

(i) section 8 (penalty for evasion of excise duty), and

(ii) paragraphs 12 and 13 of Schedule 7 (insurance premium tax: civil penalties),

(b) paragraphs 18 and 19 of Schedule 5 to the Finance Act 1996 (landfill tax: civil penalties: evasion and misdeclaration or neglect),

(c) paragraphs 98 and 99 of Schedule 6 to the Finance Act 2000 (climate change levy: civil penalties: evasion, liability of directors and misdeclaration or neglect),

(d) in Schedule 6 to the Finance Act 2001 —

(i) paragraphs 7 and 8 (aggregates levy: civil penalties: evasion, liability of directors and misdeclaration or neglect), and

(ii) paragraph 9A(5)(b) (penalty under paragraph 7 above),

(e) section 133(2) to (4) of the Finance Act 2002 (aggregates levy: amendments to provisions about civil penalties).

Section 7 Transitional provisions

Notwithstanding paragraph 29(d) of Schedule 24 (consequential amendments), sections 60 and 61 of the Value Added Tax Act 1994 ( VAT evasion) shall continue to have effect with respect to conduct involving dishonesty which does not relate to an inaccuracy in a document or a failure to notify HMRC of an under-assessment by HMRC.

Section 8 Consequential amendments to enactments

Schedule 1 contains amendments of enactments in consequence of the provisions omitted by paragraph 21 and by paragraph 29 of Schedule 24.

Section 9 Consequential amendments to enactments

Schedule 2 contains consequential amendments to secondary legislation.

Section 1 Taxes Management Act 1970

The Taxes Management Act 1970 is amended as follows.

Section 2 Taxes Management Act 1970

In section 59C(4) (surcharges on unpaid income tax and capital gains tax) for “section 7, 93(5), 95 or 95A of this Act” substitute “section 7 or 93(5) of this Act or Schedule 24 to the Finance Act 2007”.

Section 3 Taxes Management Act 1970

In section 100B(1) (appeals against penalty determinations) for “sections 93, 93A and 95A” substitute “sections 93 and 93A”.

Section 4 Taxes Management Act 1970

In section 107A (relevant trustees), in subsection (2)—

(a) omit “, 95”;

(b) after “Schedule 1A to this Act” insert “or Schedule 24 to the Finance Act 2007”.

Section 5 Betting and Gaming Duties Act 1981

The Betting and Gaming Duties Act 1981 is amended as follows.

Section 6 Betting and Gaming Duties Act 1981

In paragraph 15(1)(a)(ii) of Schedule 1 after “section 8 of the Finance Act 1994 (penalty for evasion)” insert “or a penalty for a deliberate inaccuracy under paragraph 1 of Schedule 24 to the Finance Act 2007 (penalties for errors)”.

Section 7 Finance Act 1982

Paragraph 10 of Schedule 18 to the Finance Act 1982 (alternative valuation of ethane for purposes of petroleum revenue tax: penalties for incorrect information etc) is amended as follows.

Section 8 Finance Act 1982

(1) In sub-paragraph (1) for “Paragraphs 8 and 9 of Schedule 2 to the principal Act (which penalise inaccurate returns etc. and are in this paragraph referred to as “the penalty provisions”)” substitute “Schedule 24 to the Finance Act 2007 (which penalises inaccurate documents and is in this paragraph referred to as “the penalty provisions”)”.

(2) Omit sub-paragraph (2)(b).

Section 9 Income and Corporation Taxes Act 1988

Section 827 of the Income and Corporation Taxes Act 1988 (VAT penalties etc) is amended as follows.

Section 10 Income and Corporation Taxes Act 1988

After subsection (1G) add—

(1H) Where a person is liable to make a payment by way of penalty under Schedule 24 to the Finance Act 2007 (penalties for errors) the payment shall not be allowed as a deduction in computing any income, profits or losses for any corporation tax purposes (but see also subsection (3)(a) below).

Section 11 Finance Act 1994

(1) Schedule 7 to the Finance Act 1994 (insurance premium tax) is amended as follows.

(2) In paragraph 14(4)(b) after “paragraph 12 above” insert “or to a penalty for a deliberate inaccuracy under Schedule 24 to the Finance Act 2007 (penalties for errors)”.

(3) In paragraph 15(6)(b) after “paragraph 12 above” insert “or to a penalty for a deliberate inaccuracy under Schedule 24 to the Finance Act 2007 (penalties for errors)”.

(4) In paragraph 17(4)(b) after “paragraph 12 above” insert “or to a penalty for a deliberate inaccuracy under Schedule 24 to the Finance Act 2007 (penalties for errors)”.

Section 12 Value Added Tax Act 1994

The Value Added Tax Act 1994 is amended as follows.

Section 13 Value Added Tax Act 1994

In section 66(7) (failure to submit EC sales statement or statement relating to section 55A)—

(a) after “76” insert “and Schedule 24 to the Finance Act 2007”, and

(b) after “any penalty under this section” insert “or that Schedule”.

Section 14 Value Added Tax Act 1994

In section 69(9)(c) (breaches of regulatory provisions) after “section 60 or 63” insert “ or a penalty under Schedule 24 to the Finance Act 2007”.

Section 15 Value Added Tax Act 1994

In section 69A(7)(a) (breach of record-keeping requirements etc in relation to transactions in gold) after “section 60” insert “or a penalty for a deliberate inaccuracy under Schedule 24 to the Finance Act 2007”.

Section 16 Value Added Tax Act 1994

In section 69B(7)(a) (breach of record keeping requirements imposed by directions) after “section 60” insert “or a penalty for a deliberate inaccuracy under Schedule 24 to the Finance Act 2007”.

Section 17 Value Added Tax Act 1994

In paragraph 10(3)(b) of Schedule 11A(a) (disclosure of avoidance schemes) after “section 60” insert “or a penalty for a deliberate inaccuracy under Schedule 24 to the Finance Act 2007”.

Section 18 Finance Act 1996

Schedule 5 to the Finance Act 1996 (landfill tax) is amended as follows.

Section 19 Finance Act 1996

In paragraphs 22(4) and 23(2) after “paragraph 18 above” insert “or a penalty for a deliberate inaccuracy under Schedule 24 to the Finance Act 2007 (penalties for errors)”.

Section 20 Finance Act 2000

(1) Schedule 6 to the Finance Act 2000 (climate change levy) is amended as follows.

(2) In paragraph 41(5)(b) after “paragraph 98 (penalty for evasion)” insert “or to a penalty for a deliberate inaccuracy under Schedule 24 to the Finance Act 2007 (penalties for errors)”.

(3) In paragraph 55(6)(b) after “paragraph 98 (penalty for evasion)” insert “or to a penalty for a deliberate inaccuracy under Schedule 24 to the Finance Act 2007 (penalties for errors)”.

(4) In paragraph 124(5)(b) after “paragraph 98 (penalty for evasion)” insert “or to a penalty for a deliberate inaccuracy under Schedule 24 to the Finance Act 2007 (penalties for errors)”.

(5) In paragraph 125(8)(b) after “paragraph 98 (penalty for evasion)” insert “or to a penalty for a deliberate inaccuracy under Schedule 24 to the Finance Act 2007 (penalties for errors)”.

(6) In paragraph 127(6)(b) after “paragraph 98 (penalty for evasion)” insert “or to a penalty for a deliberate inaccuracy under Schedule 24 to the Finance Act 2007 (penalties for errors)”.

(7) In paragraph 146(5)(b) after “paragraph 98” insert “or to a penalty for a deliberate inaccuracy under Schedule 24 to the Finance Act 2007 (penalties for errors)”.

Section 21 Finance Act 2001

Part 2 of the Finance Act 2001 is amended as follows.

Section 22 Finance Act 2001

In section 25(5)(b) (aggregates levy: returns and payment of levy) after “(penalty for evasion)” insert “or a penalty for a deliberate inaccuracy under Schedule 24 to the Finance Act 2007 (penalties for errors)”.

Section 23 Finance Act 2001

In section 45(3) after “Schedule 6 to this Act” insert “or a penalty for a deliberate inaccuracy under Schedule 24 to the Finance Act 2007 (penalties for errors)”.

Section 24 Finance Act 2001

In paragraph 1(6)(b) of Schedule 4 after “(penalty for evasion)” insert “or a penalty for a deliberate inaccuracy under Schedule 24 to the Finance Act 2007 (penalties for errors)”.

Section 25 Finance Act 2001

In paragraphs 1(5)(b), 2(8)(b) and 4(6)(b) of Schedule 7 after “(penalty for evasion)” in each case insert “or a penalty for a deliberate inaccuracy under Schedule 24 to the Finance Act 2007 (penalties for errors)”.

Section 26 Finance Act 2004

(1) Section 313 of the Finance Act 2004 (tax avoidance schemes: duty of parties to notifiable arrangements to notify Board of number, etc.) is amended as follows.

(2) For subsection (4)(a) to (g) substitute—

(a) any provision relating to incorrect or uncorrected returns made under section 98 of the Finance Act 1986 (administration of stamp duty reserve tax),

(b) Schedule 24 to the Finance Act 2007 (penalties for errors), or

(c) any other prescribed provision,

Section 27 Income Tax (Trading and Other Income) Act 2005

The Income Tax (Trading and Other Income) Act 2005 is amended as follows.

Section 28 Income Tax (Trading and Other Income) Act 2005

In section 54(2) (no deduction of certain amounts in calculating profits of a trade), at the end of the table add—

Section 29 Income Tax (Trading and Other Income) Act 2005

In section 869(4) (no deduction of certain amounts in calculating profits or other income charged to income tax), at the end of the table add—

Section 1 Registered Pension Schemes (Relief at Source) Regulations 2005

The Registered Pension Schemes (Relief at Source) Regulations 2005 are amended as follows.

Section 2 Registered Pension Schemes (Relief at Source) Regulations 2005

Omit paragraph (4) of regulation 14.

Section 3 Duty Stamps Regulations 2006

The Duty Stamps Regulations 2006 are amended as follows.

Section 4 Duty Stamps Regulations 2006

For regulation 10(8) substitute—

(8) A relevant penalty is a penalty that has been assessed and notified under Schedule 24 to the Finance Act 2007 (penalties for errors) and that has not been withdrawn or quashed.