Legislation – Finance Act 2021

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Introduction

PART 1
Income tax, corporation tax and capital gains tax

1 Income tax charge for tax year 2021-22

2 Main rates of income tax for tax year 2021-22

3 Default and savings rates of income tax for tax year 2021-22

4 Starting rate limit for savings for tax year 2021-22

5 Basic rate limit and personal allowance for future tax years

6 Charge and main rate for financial years 2022 and 2023

7 Small profits rate chargeable on companies from 1 April 2023

8 Increase in the rate of diverted profits tax

9 Super-deductions and other temporary first-year allowances

10 Further provision about super-deductions etc

11 Reduced super-deduction

12 Disposal of assets where super-deduction made

13 Disposal of assets where SR allowance made

14 Counteraction where arrangements are contrived etc

15 Extension of temporary increase in annual investment allowance

16 Meaning of “general decommissioning expenditure”

17 Extensions of plant or machinery leases for reasons related to coronavirus

18 Temporary extension of periods to which trade losses may be carried back

19 R&D tax credits for SMEs

20 Extension of social investment tax relief for further two years

21 Workers’ services provided through intermediaries

22 Payments on termination of employment

23 Cash equivalent benefit of a zero-emissions van

24 Enterprise management incentives

25 Cycles and cyclist’s safety equipment

26 Exemption for coronavirus tests

27 Optional remuneration arrangements: statutory parental bereavement pay

28 Freezing the standard lifetime allowance

29 Collective money purchase benefits

30 Construction industry scheme

31 Covid-19 support scheme: working households receiving tax credits

32 Self-employment income support scheme

33 Deduction where business rates etc repaid

34 Repeal of provisions relating to the Interest and Royalties Directive

35 Payments made to victims of modern slavery etc

36 Hybrid and other mismatches

37 Relief for losses etc

38 Corporate interest restriction: minor amendments

39 Northern Ireland Housing Executive

40 Annual exempt amount

41 Hold-over relief for foreign-controlled companies

PART 2
Plastic packaging tax

42 Plastic packaging tax

43 Charge to plastic packaging tax

44 Liability to pay plastic packaging tax

45 Rate

46 Payment

47 Chargeable plastic packaging components

48 Meaning of “plastic packaging component”

49 Meaning of “plastic” and “recycled plastic”

50 Time of importation

51 Plastic packaging components intended for export

52 Exempt plastic packaging components

53 Tax credits

54 The register

55 Liability to register: producers and importers

56 Notification of liability and registration

57 Cancellation of registration

58 Correction of the register

59 Notices imposing secondary or joint and several liability

60 Measurement of weight etc

61 Payment, collection, recovery

62 Reviews and appeals

63 Records

64 Information and evidence

65 Security for tax

66 Unincorporated bodies

67 Service

68 Statements for business customers

69 Tax representatives of non-resident taxpayers

70 Adjustment of contracts

71 Groups of companies

72 Prevention of artificial separation of business activities: directions

73 Prevention of artificial separation of business activities: effect of directions

74 Death, incapacity or insolvency of person carrying on a business: regulations

75 Transfer of business as a going concern: regulations

76 Isle of Man: import and export of chargeable plastic packaging components

77 Fraudulent evasion

78 Misstatements

79 Conduct involving evasions or misstatements

80 Penalty for contravening relevant requirements

81 Criminal proceedings

82 Minor and consequential amendments

83 Interpretation

84 Regulations

85 Commencement etc

PART 3
Other taxes

86 Rate bands etc for tax years 2021-22 to 2029-30

87 Temporary period for reduced rates on residential property

88 Increased rates for non-resident transactions

89 Relief from higher rate charge for certain housing co-operatives etc

90 Relief for certain housing co-operatives

91 Repayment to certain housing co-operatives: 2020-21 chargeable period

92 Extension of temporary 5% reduced rate for hospitality and tourism sectors

93 Temporary 12.5% reduced rate for hospitality and tourism sectors

94 Extending digital record-keeping for VAT purposes to all businesses

95 Distance selling: Northern Ireland

96 Distance selling: power to make further provision

97 Supply of imported works of art etc

98 Continuing effect of principle preventing the abuse of the VAT system

99 Deferring VAT payment by reason of the coronavirus emergency

100 Refunds to S4C

101 Steel removed to Northern Ireland

102 Restriction of use of rebated diesel and biofuels

103 Rates of tobacco products duty

104 Rates for light passenger or light goods vehicles, motorcycles etc

105 Rebates where higher rate of duty paid

106 HGV road user levy (extension of suspension)

107 Rates of air passenger duty from 1 April 2022

108 Amounts of gross gaming yield charged to gaming duty

109 Rates of climate change levy from 1 April 2022 to 31 March 2023

110 Rates of climate change levy from 1 April 2023

111 Rates of landfill tax

112 Repeal of carbon emissions tax

PART 4
Miscellaneous and final

113 Designation of special tax sites

114 Capital allowances for freeport tax sites

115 Relief from stamp duty land tax for freeport tax sites

116 Penalties for failure to make returns etc

117 Penalties for failure to pay tax

118 Penalties for failure to make returns etc or pay tax: consequential provision

119 Follower notice penalties

120 Late payment interest and repayment interest: VAT

121 Promoters of tax avoidance schemes

122 Disclosure of tax avoidance schemes

123 Penalties for enablers of defeated tax avoidance

124 The GAAR and partnerships

125 Licensing authorities: requirements to give or obtain tax information

126 Financial institution notices

127 Collection of tax debts

128 Miscellaneous amendments of Schedule 36 to FA 2008

129 International arrangements for exchanging information on the gig economy

130 Unauthorised removal or disposal of seized goods

131 Temporary approvals etc pending review or appeal

132 Replacement of LIBOR with incremental borrowing rate

133 Tax consequences of reform etc of LIBOR and other reference rates

134 Powers of the Treasury to amend legislation relating to banks

135 Interpretation

136 Short title

SCHEDULES

SCHEDULE 1 Small profits rate for non-ring fence profits

SCHEDULE 2 Temporary extension of periods to which trade losses may be carried back

SCHEDULE 3 R&D tax credits for SMEs

SCHEDULE 4 R&D tax credits for SMEs: Northern Ireland companies

SCHEDULE 5 Pension schemes: collective money purchase benefits

SCHEDULE 6 Construction industry scheme: amendments

SCHEDULE 7 Hybrid and other mismatches

SCHEDULE 8 Relief from corporation tax for losses and other amounts

SCHEDULE 9 Plastic packaging tax: secondary liability and assessment notices and joint and several liability notices

SCHEDULE 10 Plastic packaging tax: recovery and overpayments

SCHEDULE 11 Plastic packaging tax: reviews and appeals

SCHEDULE 12 Plastic packaging tax: information and evidence

SCHEDULE 13 Plastic packaging tax: groups of companies

SCHEDULE 14 Plastic packaging tax: assessment of penalties under section 80

SCHEDULE 15 Plastic packaging tax: amendments of other legislation

SCHEDULE 16 SDLT: increased rates for non-resident transactions

SCHEDULE 17 SDLT (relief from higher rate charge for certain housing co-operatives etc): minor and consequential amendments

SCHEDULE 18 VAT and distance selling: Northern Ireland

SCHEDULE 19 Deferring VAT payment by reason of the coronavirus emergency

SCHEDULE 20 Customs duty: steel products

SCHEDULE 21 Restriction of use of rebated diesel and biofuels

SCHEDULE 22 Capital allowances for freeport tax sites

SCHEDULE 23 Relief from stamp duty land tax for freeport tax sites

SCHEDULE 24 Penalties for failure to make returns etc

SCHEDULE 25 Penalties for deliberately withholding information

SCHEDULE 26 Penalties for failure to pay tax

SCHEDULE 27 Schedules 24 to 26: consequential provision

SCHEDULE 28 Follower notice penalties

SCHEDULE 29 Late payment interest and repayment interest: VAT

SCHEDULE 30 Amendments of Part 5 of FA 2014

SCHEDULE 31 Disclosure of tax avoidance schemes

SCHEDULE 32 The GAAR and partnerships

SCHEDULE 33 Licensing authorities: requirements to give or obtain tax information

SCHEDULE 34 Information powers: miscellaneous amendments

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SCHEDULES

SCHEDULE 2Temporary extension of periods to which trade losses may be carried back

PART 1Income tax

Further provision about relief under paragraph 1 or 2

3

(1)

The following sections of ITA 2007 apply in relation to relief under paragraph 1 or 2 as they apply in relation to relief under section 64 of that Act—

(a)

sections 66 to 70 (restrictions on relief under section 64),

(b)

sections 74ZA to 74D (general restrictions on relief),

(c)

section 74E (no relief where cash basis used to calculate losses),

(d)

sections 75 to 79 (restrictions on relief under section 64 and early trade losses relief in relation to capital allowances), and

(e)

section 80 (restrictions on those reliefs in relation to ring fence income).

(2)

Paragraphs 1 and 2 apply to professions and vocations as they apply to trades.

(3)

Paragraphs 1 and 2 are subject to paragraph 2 of Schedule 1B to TMA 1970 (claims to loss relief involving 2 or more years).

(4)

Sections 61 to 63 of ITA 2007 (meaning of “making a loss in a tax year” etc and prohibition against double counting) have effect as if paragraphs 1 and 2 were included in Chapter 2 of Part 4 of that Act.

(5)

The reference in paragraph 3(1) of Schedule 2 to the Social Security Contributions and Benefits Act 1992 and Social Security Contributions and Benefits (Northern Ireland) Act 1992 (levy of Class 4 contributions with income tax) to section 64 of ITA 2007 includes paragraphs 1 and 2.