Legislation – Finance Act 2021
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
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
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
38 Corporate interest restriction: minor amendments
39 Northern Ireland Housing Executive
41 Hold-over relief for foreign-controlled companies
PART 2
Plastic packaging tax
43 Charge to plastic packaging tax
44 Liability to pay plastic packaging tax
47 Chargeable plastic packaging components
48 Meaning of “plastic packaging component”
49 Meaning of “plastic” and “recycled plastic”
51 Plastic packaging components intended for export
52 Exempt plastic packaging components
55 Liability to register: producers and importers
56 Notification of liability and registration
57 Cancellation of registration
59 Notices imposing secondary or joint and several liability
61 Payment, collection, recovery
68 Statements for business customers
69 Tax representatives of non-resident taxpayers
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
79 Conduct involving evasions or misstatements
80 Penalty for contravening relevant requirements
82 Minor and consequential amendments
PART 3
Other taxes
86 Rate bands etc for tax years 2021-22 to 2025-26
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
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
112 Repeal of carbon emissions tax
PART 4
Miscellaneous and final
113 Designation of freeport 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
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
125 Licensing authorities: requirements to give or obtain tax information
126 Financial institution notices
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
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 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 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
PART 1Income tax, corporation tax and capital gains tax
Construction industry scheme
30Construction industry scheme
(1)
Schedule 6 contains provision amending Chapter 3 of Part 3 of FA 2004 (construction industry scheme).
(2)
In particular, the Schedule makes provision about—
(a)
contractors,
(b)
deductions on account of tax from contract payments,
(c)
the treatment of sums deducted, and
(d)
penalties.