Legislation – Finance Act 2024

Part 1
Income tax and corporation tax

Chapter 1 Reliefs for businesses etc

Capital allowances for companies

1 Permanent full expensing etc for expenditure on plant or machinery

Research and development

2 New regime for research and development carried out by companies

Films, television programmes, video games etc

3 Films, television programmes and video games produced by companies

4 Theatrical productions made by companies

5 Orchestral concerts produced by companies

6 Museum and gallery exhibitions produced by companies

7 Sections 3 to 6: administration of reliefs

Real Estate Investment Trusts

8 Miscellaneous amendments relating to REITs

9 Managers of ships

10 Increase in capital allowances limit for ship leasing

11 Extension of EIS relief and VCT relief to shares issued before 6 April 2035

12 Relief for payments of compensation by government etc to companies

13 Enterprise management incentives: time limits

Chapter 2 Pensions

14 Provision in connection with abolition of the lifetime allowance charge

15 MPs’ pension scheme etc: rectification of discrimination

Chapter 3 Other income tax measures

Calculation of trade profits etc

16 Provision relating to the cash basis

17 PAYE regulations: special types of payer or payee

18 Carer’s allowance supplement: correction of statutory reference

Part 2
Other taxes

19 Growth market exemption: qualifying UK multilateral trading facilities etc

20 Capital-raising arrangements etc

21 New investment exemption

22 Ensuring consistency of Parts 3 and 4 of F(No.2)A 2023 with OECD rules etc

23 Rates of tobacco products duty

24 Rates of vehicle excise duty

25 Rates of air passenger duty

26 Rebate on heavy oil and certain bioblends used for heating

27 Vehicle excise duty exemption for foreign vehicles

28 Interpretation of VAT and excise law

29 Rates of landfill tax

30 Rate of aggregates levy

31 Rate of plastic packaging tax

Part 3
Miscellaneous and final

32 Increase in maximum terms of imprisonment for tax offences

33 Disqualification of directors etc promoting tax avoidance schemes

34 Promoters of tax avoidance: failure to comply with stop notice etc

35 Construction industry scheme: gross payment status

36 Additional information to be contained in returns under TMA 1970 etc

37 Commencement of rules imposing penalties for failure to make returns etc

38 Abbreviations used in Act

SCHEDULES

Schedule 1 Research and development

Schedule 2 Films, television programmes and video games

Schedule 3 Theatrical productions

Schedule 4 Orchestral concerts

Schedule 5 Museum and gallery exhibitions

Schedule 6 Administration of creative sector reliefs

Schedule 7 Real Estate Investment Trusts

Schedule 8 Tonnage tax

Schedule 9 Pensions

Schedule 10 Calculation of trade profits etc

Schedule 11 Capital-raising arrangements etc

Schedule 12 Pillar Two

Schedule 13 Promotion of tax avoidance schemes

Which version?
Latest available (Revised)
Original (As enacted)

Changes to legislation:

There are currently no known outstanding effects for the Finance Act 2024, Section 21.

Changes to Legislation

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Part 2Other taxes

Electricity generator levy

21New investment exemption

(1)

Part 5 of F(No.2)A 2023 (electricity generator levy) is amended as follows.

(2)

In section 280 (key concepts), in subsection (1), in the definition of “relevant” (as in relevant generating station)—

(a)

omit the “and” after paragraph (a), and

(b)

after paragraph (b) insert “, and

(c)

to the extent it is not comprised of qualifying new generating plant (see section 311A);”.

(3)

After section 311 insert—

“311AMeaning of “qualifying new generating plant”

(1)

Generating plant is “qualifying new generating plant” if it is new generating plant commissioned as part of a qualifying project that meets the new investment condition.

(2)

The new investment condition is met in relation to a qualifying project if on 21 November 2023 it was reasonable to conclude, having regard to all of the circumstances, that there is a significant likelihood of the project not proceeding.

(3)

The Treasury may by regulations provide for cases in which qualifying projects are to be treated as meeting the new investment condition.

(4)

“Qualifying project” means a project to commission—

(a)

new generating plant for—

(i)

a new generating station, or

(ii)

an existing generating station which (as a result of the project) is to be wholly or substantially comprised of new generating plant, or

(b)

new generating plant that increases the generating capacity of an existing generating station.

(5)

Subsection (6) applies where new generating plant that increases the generating capacity of an existing generating station replaces existing generating plant.

(6)

Only so much of the new generating plant as represents generating capacity in excess of the capacity of the generating plant it replaces is to be regarded as qualifying new generating plant.”

(4)

In section 313 (definitions in this Part), in the table, at the appropriate place insert—

“qualifying new generating plant

section 311A”.