Finance Act 2018

13 (1) FA 2014 is amended as follows. U.K.

(2) In each of sections 220 and 221 (content of accelerated payment notice), at the end of subsection (3) insert “ (and disregarding any dispute which has been referred to a tribunal under section 12ABZB(3) of TMA 1970 but not yet determined) ”.

(3) In section 226 (penalty for failure to pay accelerated payment), after subsection (7) insert—

“(8) Where an amendment to an accelerated payment notice made under section 227(7A) (amendment following tribunal determination about partnership return) increases the amount of the accelerated payment, the amount of the increase is to be ignored for the purposes of—

(a) this section, and

(b) any other enactment imposing a penalty or surcharge for non-payment or late payment of tax.”

(4) In section 227 (withdrawal, modification or suspension of accelerated payment notice)—

(a) after subsection (7) insert—

“(7A) Where—

(a) an accelerated payment notice is given, and

(b) a partnership return (as defined in Schedule 32) to which the notice relates is amended under section 12ABZB(7)(b) of TMA 1970 (amendment following tribunal determination),

HMRC may by notice given to P make consequential amendments to the accelerated payment notice.”;

(b) in subsection (13), after “subsection (2)(c)” insert “ or an amendment made under subsection (7A) ”;

(c) after subsection (13) insert—

“(13A) If, as a result of an amendment made under subsection (7A), an amount payable to HMRC under section 223(2) is increased, the amount of that increase must be paid before—

(a) the end of the period of 30 days beginning with the day on which notice of the amendment is given, or

(b) if later, the end the payment period (within the meaning given by section 223(5)).”

(5) In Schedule 32 (accelerated payments and partnerships)—

(a) in paragraph 4(2), at the end insert “ (and disregarding any dispute which has been referred to a tribunal under section 12ABZB(3) of TMA 1970 but not yet determined) ”;

(b) in paragraph 7—

(i) in paragraph (b), omit the final “and”;

(ii) after paragraph (b) insert—

“(ba) the reference in section 226(8) to an amendment to an accelerated payment notice made under section 227(7A) were to an amendment to a partner payment notice made under that section as applied by paragraph 8 of this Schedule, and”;

(c) in paragraph 8(2)—

(i) after paragraph (a) insert—

“(aa) section 227(7A) has effect as if the reference to a partnership return to which the accelerated payment notice relates were a reference to the partnership return in relation to which the partner payment notice is given;”;

(ii) in paragraph (b), omit the final “and”;

(iii) after paragraph (c) insert “and

(d) section 227(13A) has effect as if the reference to section 223(2) were to paragraph 6(2) of this Schedule and the reference to section 223(5) were to paragraph 6(5) of this Schedule.”