National Insurance Contributions Act 2014

10 GAAR to apply to national insurance contributions U.K.

(1) In Part 5 of the Finance Act 2013 (general anti-abuse rule)—

(a) references to tax, other than in references to particular taxes, include national insurance contributions, and

(b) references to a charge to tax include a liability to pay national insurance contributions.

(2) Section 206(3) of that Act (list of taxes to which the general anti-abuse rule applies) has effect as if it included a reference to national insurance contributions.

(3) Section 207 of that Act (meaning of “tax arrangements” and “abusive”) has effect as if, in subsection (4)(a), after “income,” there were inserted “earnings (within the meaning of Part 1 of the Social Security Contributions and Benefits Act 1992 or Part 1 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992),”.

(4) Adjustments to be made in respect of national insurance contributions under section 209 of the Finance Act 2013 (counteracting the tax advantages) may be made by a notice given under paragraph 12 of Schedule 43 to that Act (notice of final decision) [F1 , paragraph 8 or 9 of Schedule 43A to that Act (pooling of tax arrangements: notice of final decision) or paragraph 8 of Schedule 43B to that Act (generic referral of arrangements: notice of final decision)].

(5) For the purposes of section 210 of that Act (consequential relieving adjustments)—

(a) if a claim under that section relates to Class 4 national insurance contributions, Schedule 1A to the Taxes Management Act 1970 (as that Schedule applies in relation to such contributions) applies to it, and

(b) if a claim under that section relates to any other class of national insurance contributions, it must be made in such form and manner, and contain such information, as HMRC may require.

(6) Adjustments to be made in respect of national insurance contributions under that section may be made by a notice given under subsection (7) of that section.

[F2 (6A) Where, by virtue of this section, a case falls within paragraph 4A of Schedule 43 to the Finance Act 2013 (referrals of single schemes: relevant corrective action) or paragraph 4 of Schedule 43A to that Act (pooled schemes: relevant corrective action)—

(a) the person (“P”) mentioned in sub-paragraph (1) of that paragraph takes the “relevant corrective action” for the purposes of that paragraph if (and only if)—

(i) in a case in which the tax advantage in question can be counteracted by making a payment to HMRC , P makes that payment and notifies HMRC that P has done so, or

(ii) in any case, P takes all necessary action to enter into an agreement in writing with HMRC for the purpose of relinquishing the tax advantage, and

(b) accordingly, sub-paragraphs (2) to (8) of that paragraph do not apply.]

(7) This section has effect in relation to tax arrangements (within the meaning of Part 5 of the Finance Act 2013 as modified by this section) entered into on or after the day on which this Act is passed.

(8) Subsections (9) and (10) apply where the tax arrangements—

(a) would not have been tax arrangements but for the modifications made by this section, and

(b) form part of other arrangements entered into before the day on which this Act is passed.

(9) The other arrangements are to be ignored for the purposes of section 207(3) of the Finance Act 2013, subject to subsection (10).

(10) Account is to be taken of the other arrangements for the purposes of that section if, as a result, the tax arrangements would not be abusive.

(11) In this section—

• “abusive”, “arrangements” [F3 , “HMRC” and “tax advantage”] have the same meaning as in Part 5 of the Finance Act 2013 [F4 (as modified by this section)];

• “national insurance contributions” means contributions under either Part 1 of SSCBA 1992 or Part 1 of SSCB(NI)A 1992.

[F5 (12) See section 10A for further modifications of Part 5 of the Finance Act 2013.]

Textual Amendments

F1 Words in s. 10(4) inserted (with effect in accordance with s. 157(30) of the amending Act) by Finance Act 2016 (c. 24), s. 157(13)

F2 S. 10(6A) inserted (with effect in accordance with s. 157(30) of the amending Act) by Finance Act 2016 (c. 24), s. 157(14)

F3 Words in s. 10(11) substituted (with effect in accordance with s. 157(30) of the amending Act) by Finance Act 2016 (c. 24), s. 157(15)(a)

F4 Words in s. 10(11) inserted (with effect in accordance with s. 157(30) of the amending Act) by Finance Act 2016 (c. 24), s. 157(15)(b)

F5 S. 10(12) inserted (with effect in accordance with s. 157(30) of the amending Act) by Finance Act 2016 (c. 24), s. 157(16)