Legislation – Finance Act 2026

“Overview

A1

(1)

This Schedule confers powers on the Commissioners to make regulations requiring or authorising certain persons and certain partnerships (“relevant persons” and “relevant partnerships”) to take certain steps relating to digital reporting and record-keeping.

(2)

This Part of this Schedule contains introductory provision, in particular explaining what is meant by a “relevant person” and a “relevant partnership”.

(3)

Part 2 of this Schedule contains the powers to make regulations and sets out the penalties for non-compliance with certain obligations which may be imposed by the regulations.

(4)

Part 3 of this Schedule contains provision about exempting relevant persons or relevant partnerships from requirements imposed by the regulations.

(5)

Part 4 of this Schedule contains supplementary provision.

Interpretation: relevant persons

1

(1)

For the purposes of this Schedule a person is a “relevant person” if the person is carrying on or has carried on a relevant activity.

(2)

A “relevant activity”, in relation to a person, means any activity which may give rise to profits or other income for which the person would be liable to income tax chargeable under Part 2 or Part 3 of ITTOIA 2005 if the person were UK resident.

(3)

But the following activities are not relevant activities—

(a)

any activity carried on in partnership;

(b)

any activity carried on by the trustees of a charitable trust or the trustees of an exempt unauthorised unit trust (within the meaning of the Unauthorised Unit Trusts (Tax) Regulations 2013 (S.I. 2013/2819));

(c)

the underwriting business of a member of Lloyd’s (within the meaning of section 184 of the Finance Act 1993);

(d)

holding shares in respect of which a distribution may be made which is chargeable to income tax under Part 3 of ITTOIA 2005 by virtue of section 548(6) of CTA 2010 (distributions to shareholders in real estate investment trusts);

(e)

participating in an open-ended investment company which may make distributions chargeable to income tax under Part 3 of ITTOIA 2005 by virtue of regulation 69Z18 of the Authorised Investment Funds (Tax) Regulations 2006 (S.I. 2006/964) (property income distributions).

Interpretation: relevant partnerships

2

(1)

For the purposes of this Schedule a partnership is a “relevant partnership” if one or more of the partners is an individual, unless all of the activities of the partnership which may give rise to profits or income are activities falling within sub-paragraph (2).

(2)

The following activities fall within this sub-paragraph—

(a)

the underwriting business of a Lloyd’s partnership (as defined in section 184(1) of the Finance Act 1993);

(b)

holding shares in respect of which a distribution may be made which is chargeable to income tax under Part 3 of ITTOIA 2005 by virtue of section 548(6) of CTA 2010 (distributions to shareholders in real estate investment trusts);

(c)

participating in an open-ended investment company which may make distributions chargeable to income tax under Part 3 of ITTOIA 2005 by virtue of regulation 69Z18 of the Authorised Investment Funds (Tax) Regulations 2006 (S.I. 2006/964) (property income distributions).”

“6

In this Part of this Schedule “business”—

(a)

in relation to a relevant person (see paragraph 1), means the relevant activity or activities that the person is carrying on or has carried on, and

(b)

in relation to a relevant partnership (see paragraph 2), means the activity or activities of the partnership that may give rise to profits or income and do not fall within paragraph 2(2).”