Finance Act 2021

53 Tax credits

(1) The Commissioners may by regulations make provision in relation to cases where after a person has become liable to pay plastic packaging tax in respect of a prescribed plastic packaging component (the “charged component”), that component is—

(a) exported from the United Kingdom;

(b) converted into a different packaging component.

(2) The provision that may be made is provision—

(a) for the person to be entitled to a tax credit in respect of any plastic packaging tax charged on the charged component;

(b) for the tax credit to be brought into account when the person is accounting for plastic packaging tax due from the person for the prescribed accounting period or periods;

(c) for the person to be entitled to a repayment of plastic packaging tax (instead of a tax credit) in prescribed cases.

(3) Regulations under this section may (among other things) make provision—

(a) for any entitlement to a tax credit to be conditional on the making of a claim by the person, and specifying the period within which and the manner in which a claim may be made;

(b) for any entitlement to a tax credit or to bring a tax credit into account to be—

(i) conditional on compliance with prescribed requirements;

(ii) subject to prescribed minimum or maximum amounts;

(c) specifying circumstances in which, and criteria for determining the period for which, the person is or is not entitled to a tax credit;

(d) requiring a claim for a tax credit to be evidenced and quantified by reference to prescribed records and other documents;

(e) requiring a person claiming any entitlement to a tax credit to keep, for the prescribed period and in the prescribed form and manner, those records and documents and a record of prescribed information relating to the claim;

(f) for the withdrawal of a tax credit where any requirement of the regulations is not complied with;

(g) about adjustments of liability for plastic packaging tax in connection with entitlement or withdrawal of an entitlement to a tax credit in prescribed circumstances;

(h) about the treatment of a tax credit where the person ceases to carry on a business or otherwise is no longer liable to plastic packaging tax;

(i) for anything falling to be determined in accordance with the regulations to be determined by reference to a direction given in accordance with the regulations by the Commissioners;

(j) about the meaning of “converted” for the purposes of subsection (1)(b).

(4) In this section, “prescribed” means specified in or under, or determined in accordance with provision made in or under, regulations under this section.