Legislation – Finance (No. 2) Act 2023

HMRC may not, at any time on or after 15 March 2023, make a payment (whether directly or indirectly) to or for the benefit of a person who is, at that time, a designated person for the purposes of financial sanctions regulations.

(2)

The reference in subsection (1) to a payment—

(a)

is a reference to a payment, including a repayment or refund, that HMRC would (apart from that subsection) be required or permitted, by or under any enactment, to make to the person, and

(b)

includes a reference to a payment that HMRC would (apart from that subsection) be required or permitted to make to the person by way of setting off the amount payable (as a credit) against a liability of the person to pay an amount to HMRC (as a debit).

(3)

The reference in subsection (1) to a payment being made (directly or indirectly) to or for the benefit of a person (“P”) includes the payment being made to another person who is owned or controlled (directly or indirectly) by P.

(4)

Nothing in this section prevents the accrual of interest, in accordance with any enactment, on a withheld amount.

(5)

But no other supplementary amount is payable by HMRC under section 79(1) of VATA 1994 (repayment supplement in respect of certain delayed payments or refunds), or any other enactment, by reference to an amount that is (or was) a withheld amount not being paid to a person on or before a particular date (including a date falling before 15 March 2023).

(6)

Provision made by or under section 15 of SAMLA 2018 (exceptions and licences), and by section 44 of that Act (protection for acts done for the purposes of compliance), applies (with the necessary modifications) for the purposes of the prohibition under subsection (1) as it applies for the purposes of prohibitions under financial sanctions regulations.

(7)

The Treasury may by regulations made by statutory instrument—

(a)

specify further exceptions to the prohibition in subsection (1);

(b)

make such other provision as they consider appropriate for the purposes of, or for purposes connected to, any provision made by this section.

(8)

A statutory instrument containing regulations under subsection (7) is subject to annulment in pursuance of a resolution of the House of Commons.

(9)

References in this section to “financial sanctions regulations” are references to regulations made (whether before or after the passing of this Act) under section 1 of SAMLA 2018, so far as they make provision for or in connection with imposing financial sanctions (within the meaning of section 3 of that Act).

(10)

In this section—

“designated person” has the meaning given by section 9 of SAMLA 2018;

“enactment” means any provision made by or under an Act (whether before or after the passing of this Act);

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

“SAMLA 2018” means the Sanctions and Anti-Money Laundering Act 2018;

“a withheld amount” means an amount that HMRC would, apart from this section, be required or permitted to pay to a person.