Finance Act 2015

2015 CHAPTER 11

Introduction

Section 125: Commencement orders and regulations

Summary

1.This section amends the provisions relating to the parliamentary procedure applicable to statutory instruments which bring into force provisions of enactments relating to the taxation of chargeable gains, income tax and corporation tax

Details of the Section

2.Subsection (1) substitutes section 287(4)(b) of Taxation of Chargeable Gains Act (TGCA) 1992 so that the exception from the negative resolution procedure applies to orders or regulations which provide for any provision of an enactment relating to the taxation of chargeable gains to come into force or have effect in accordance with the order or regulations.

3.Subsection (2) substitutes section 1014(6)(b) of Income Tax Act (ita) 2007 to make equivalent provision in relation to provisions of the Income Tax Acts.

4.Subsection (3) substitutes section 1171(6)(b) of Corporation Tax Act (CTA) 2010 to make equivalent provision in relation to provisions of the Corporation Tax Acts.

5.Subsection (4) provides that the amendments do not have effect in relation to any power conferred by an Act passed before the day on which this Act is passed.

Background Note

6.The negative resolution procedure is the default parliamentary procedure for statutory instruments relating to capital gains tax, income tax and corporation tax (see section 287(3) of TCGA 1992, section 1014(4) of ITA 2007 and section 1171(4) of CTA 2010). But commencement orders are not generally subject to any parliamentary procedure, so section 287(4)(b) of TCGA 1992, section 1014(6)(b) of ITA 2007 and section 1171(6)(b) of CTA 2010 disapply the negative resolution procedure in the case of orders that provide for commencement on an appointed day.

7.Powers to make subordinate legislation (including commencement powers) are now generally drafted as powers to make regulations. Commencement regulations cannot benefit from section 287(4)(b) of TCGA 1992, section 1014(6)(b) of ITA 2007 or section 1171(6)(b) of CTA 2010 as those provisions refer only to orders. This section amends those sections to include regulations as well as orders and include orders and regulations which provide for commencement in accordance with provision contained in the order or regulations.