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Finance Act 2015

  • Explanatory Notes Table of contents

Please note:

All reference to 'Parts' and 'sections' are from the Finance Act 2015. For other versions of these Explanatory Notes, see More Resources.

  1. Introduction

    1. Section 1: Charge and Rates for 2015-16

      1. Summary

      2. Details of the Section

      3. Background Note

    2. Section 2: Limits and Allowances for 2015-16

      1. Summary

      2. Details of the Section

      3. Background Note

    3. Section 3: Personal Allowances for 2015-16

      1. Summary

      2. Details of the Section

      3. Background Note

    4. Section 4: Basic Rate Limit from 2016

      1. Summary

      2. Details of the Section

      3. Background Note

    5. Section 5: Personal Allowance from 2016

      1. Summary

      2. Details of the Section

      3. Background Note

    6. Section 6: Charge for Financial Year 2016

      1. Summary

      2. Details of the Section

      3. Background Note

    7. Section 7: Cars: the Appropriate Percentage for 2017-18

      1. Summary

      2. Details of the Section

      3. Background Note

    8. Section 8: Cars: the Appropriate Percentage for Subsequent Tax Years

      1. Summary

      2. Details of the Section

      3. Background Note

    9. Section 9: Diesel Cars: the Appropriate Percentage for 2015-16

      1. Summary

      2. Details of the Section

      3. Background Note

    10. Section 10: Zero-Emission Vans

      1. Summary

      2. Details of the Section

      3. Background Note

    11. Section 11: Exemption for Amounts Which Would Otherwise Be Deductible

      1. Summary

      2. Details of the Section

      3. Background Note

    12. Section 12: Abolition of Dispensation Regime

      1. Summary

      2. Details of the Section

      3. Background Note

    13. Section 13 and Schedule 1: Extension of Benefits Code Except in Relation to Certain Ministers of Religion

      1. Summary

      2. Details of the Section

      3. Details of the Schedule

        1. Part 1

      4. Background Note

    14. Section 14: Exemption for Board Or Lodging Provided to Carers

      1. Summary

      2. Details of the Section

      3. Background Note

    15. Section 15: Lump Sums Provided under Armed Forces Early Departure Scheme

      1. Summary

      2. Details of the Section

      3. Background Note

    16. Section 16: Bereavement Support Payment: Exemption from Income Tax

      1. Summary

      2. Details of the Section

      3. Background Note

    17. Section 17: Paye: Benefits in Kind

      1. Summary

      2. Details of the Section

      3. Background Note

    18. Section 18: Employment Intermediaries: Determination of Penalties

      1. Summary

      2. Details of the Section

      3. Background Note

    19. Section 19: Arrangements Offering a Choice of Capital Income Return

      1. Summary

      2. Details of the Schedule

      3. Background Note

    20. Section 20: Intermediaries and Gift Aid

      1. Summary

      2. Details of the Section

      3. Background Note

    21. Section 21: Disguised Investment Management Fees

      1. Summary

      2. Details of the Section

      3. Background Note

    22. Section 22: Miscellaneous Loss Relief

      1. Summary

      2. Details of the Section

      3. Background Note

    23. Section 23: Exceptions from Duty to Deduct Tax: Qualifying Private Placements

      1. Summary

      2. Details of the Section

      3. Background Note

    24. Section 24: Increased Remittance Basis Charge

      1. Summary

      2. Details of the Section

      3. Background Note

    25. Section 25: Loan Relationships: Repeal of Certain Provisions Relating to Late Interest Etc

      1. Summary

      2. Details of the Section

      3. Background Note

    26. Section 26: Intangible Fixed Assets: Goodwill Etc Acquired from a Related Party

      1. Summary

      2. Details of the Section

        1. New Section 849B CTA 2009

        2. New section 849C CTA 2009

        3. New Section 849D CTA 2009

        4. Commencement

      3. Background Note

    27. Section 27: Amount of Relief for Expenditure on Research and Development

      1. Summary

      2. Details of the Section

      3. Background Note

    28. Section 28: Expenditure on Research and Development: Consumable Items

      1. Summary

      2. Details of the Section

        1. New section 1126A

        2. New section 1126B

      3. Background Note

    29. Section 29: Film Tax Relief

      1. Summary

      2. Details of the Section

      3. Background Note

    30. Section 30: Reliefs for Makers of Children’s Television Programmes

      1. Summary

      2. Details of the Section

      3. Background Note

    31. Section 31: Television Tax Relief

      1. Summary

      2. Details of the Section

      3. Background Note

    32. Section 32 and Schedule 2: Restrictions Applying to Certain Deductions Made by Banking Companies

      1. Summary

      2. Details of the Section

      3. Details of the Schedule

        1. Part 1: New Part 7A CTA 2010

          1. Chapter 1 – Introduction

          2. Chapter 2 – Key definitions

          3. Chapter 3 – Restriction on obtaining certain deductions

        2. Part 2: Consequential amendments

        3. Part 3: Commencement and anti-forestalling

      4. Background Note

    33. Section 33 and Schedule 3: Tax Avoidance Involving Carried-Forward Losses

      1. Summary

      2. Details of the Section

      3. Details of the Schedule

        1. Part 1: New Part 14B Corporation Tax Act (CTA) 2010

        2. Part 2: Commencement for Part 14B

      4. Background Note

    34. Section 34 and Schedule 4: Pension Flexibility: Annuities Etc

      1. Summary

      2. Details of the Section

      3. Details of the Schedule

        1. Part 1

        2. Part 2

      4. Background Note

    35. Section 35 and Schedule 5: Relief for Contributions to Flood and Coastal Erosion Risk Management Projects

      1. Summary

      2. Details of the Section

      3. Details of the Schedule

      4. Background Note

    36. Section 36 and Schedule 6: Investment Reliefs: Excluded Activities

      1. Summary

      2. Details of the Section

      3. Details of the Schedule

        1. Part 1

        2. Parts 2 and 3

        3. Part 4

      4. Background Note

    37. Section 37 and Schedule 7: Disposals of Uk Residential Property Interests by Non-Residents Etc

      1. Summary

      2. Details of the Section

      3. Details of the Schedule

        1. Schedule 7 Part 1

        2. Schedule 7 Part 2

        3. Schedule 7 Part 3

      4. Background Note

    38. Section 38 and Schedule 8: Relevant High Value Disposals: Gains and Losses

      1. Summary

      2. Details of the Section

      3. Details of the Schedule

      4. Background Note

    39. Section 39 and Schedule 9: Private Residence Relief

      1. Summary

      2. Details of the Section

      3. Details of the Schedule

        1. Private Residence Relief

      4. Background Note

    40. Section 40: Wasting Assets

      1. Summary

      2. Details of the Section

      3. Background Note

    41. Section 41: Entrepreneurs’ Relief: Associated Disposals

      1. Summary

      2. Details of the Section

      3. Background Note

    42. Section 42: Entrepreneurs’ Relief: Exclusion of Goodwill in Certain Circumstances

      1. Summary

      2. Details of the Section

      3. Background Note

    43. Section 43: Entrepreneurs’ Relief: Trading Company Etc

      1. Summary

      2. Details of the Section

      3. Background Note

    44. Section 44: Deferred Entrepreneurs’ Relief on Invested Gains

      1. Summary

      2. Details of the Section

      3. Background Note

    45. Section 45: Zero-Emission Goods Vehicles

      1. Summary

      2. Details of the Section

      3. Background Note

    46. Section 46 and Schedule 10: Plant and Machinery Allowances: Anti-Avoidance

      1. Summary

      2. Details of the Section

      3. Details of the Schedule

      4. Background Note

    47. Section 47 and Schedule 11: Extension of Ring Fence Expenditure Supplement

      1. Summary

      2. Details of the Section

      3. Details of the Schedule

      4. Background Note

    48. Section 48: Reduction in Rate of Supplementary Charge

      1. Summary

      2. Details of the Section

      3. Background Note

    49. Section 49 and Schedule 12: Supplementary Charge: Investment Allowance

      1. Summary

      2. Details of the Section

      3. Details of the Schedule

        1. Part 1 – Amendments of Part 8 of Corporation Tax Act 2010 (CTA 2010)

        2. Part 2 – Commencement and Transitional Provision

      4. Background Note

    50. Section 50 and Schedule 13: Supplementary Charge: Cluster Area Allowance

      1. Summary

      2. Details of the Section

      3. Details of the Schedule

        1. Part 1 - Amendments to Part 8 of Corporation Tax Act 2010 (CTA 2010)

        2. Part 2 - Transitional Provisions

      4. Background Note

    51. Section 51 and Schedule 14: Amendments Relating to Investment Allowance and Cluster Area Allowance

      1. Summary

      2. Details of the Section

      3. Details of the Schedule

        1. Part 1 – Amendments of CTA 10

        2. Part 2 – Commencement

      4. Background Note

    52. Section 52: Reduction in Rate of Petroleum Revenue Tax

      1. Summary

      2. Details of the Section

      3. Background Note

    53. Section 53: Rates of Alcoholic Liquor Duties

      1. Summary

      2. Details of the Section

      3. Background Note

    54. Section 54: Wholesaling of Controlled Liquor

      1. Summary

      2. Details of the Section

        1. Definitions

        2. Further provision relating to definitions

        3. Approval to carry on controlled activity

        4. The register of approved persons

        5. Regulations relating to approval, registration and controlled activities

        6. Restriction on buying controlled liquor wholesale

        7. Offences

        8. Penalties

        9. Regulations

        10. Groups

      3. Schedule 2B – Penalties for contraventions of Part 6A

        1. Liability to a penalty

        2. Amount of penalty

        3. Reductions for disclosure

        4. Special reduction

        5. Assessment

        6. Reasonable excuse

        7. Companies: officer’s liability

        8. Double jeopardy

        9. The maximum amount

        10. Appeal tribunal

      4. Background Note

    55. Section 55: Rates of Tobacco Products Duty

      1. Summary

      2. Details of the Section

      3. Background Note

    56. Section 56: Excise Duty on Tobacco: Anti-Forestalling Restrictions

      1. Summary

      2. Details of the Section

      3. Background Note

    57. Section 57: Air Passenger Duty: Exemption for Children in Standard Class

      1. Summary

      2. Details of the Section

      3. Background Note

    58. Section 58: Ved Rates for Light Passenger Vehicles and Motorcycles

      1. Summary

      2. Details of the Section

      3. Background Note

    59. Section 59: Ved: Extension of Old Vehicles Exemption from 1 April 2016

      1. Summary

      2. Details of the Section

      3. Background

    60. Section 60: Rates of Gaming Duty

      1. Summary

      2. Details of the Section

      3. Background Note

    61. Section 61: Tax Credit in Northern Ireland

      1. Summary

      2. Details of the Section

      3. Background Note

    62. Section 62: Climate Change Levy: Main Rates from 1 April 2016

      1. Summary

      2. Details of the Section

      3. Background Note

    63. Section 63: Combined Heat and Power Stations

      1. Summary

      2. Details of the Section

      3. Background Note

    64. Section 64: Landfill Tax: Rates from 1 April 2016

      1. Summary

      2. Details of the Section

      3. Background Note

    65. Section 65 and Schedule 15: Landfill Tax: Material Consisting of Fines

      1. Summary

      2. Details of the Section

      3. Details of the Schedule

      4. Background Note

    66. Section 66: Vat: Refunds to Certain Charities

      1. Summary

      2. Details of the Section

      3. Background Note

    67. Section 67: Vat: Refunds to Strategic Highways Companies

      1. Summary

      2. Details of the Section

      3. Background Note

    68. Section 68: Sdlt: Alternative Property Finance Relief

      1. Summary

      2. Details of the Section

      3. Background Note

    69. Section 69: Sdlt: Multiple Dwellings Relief

      1. Summary

      2. Details of the Section

      3. Background Note

    70. Section 70: Ated: Annual Chargeable Amount

      1. Summary

      2. Details of the Section

      3. Background Note

    71. Section 71: Ated: Taxable Value

      1. Summary

      2. Details of the Section

      3. Background Note

    72. Section 72: Ated: Interests Held by Connected Persons

      1. Summary

      2. Details of the Section

      3. Background Note

    73. Section 73: Ated: Returns

      1. Summary

      2. Details of the Section

      3. Background Note

    74. Section 74: Inheritance Tax: Exemption for Decorations and Other Awards

      1. Summary

      2. Details of the Section

      3. Background Note

    75. Section 75: Inheritance Tax: Exemption for Emergency Service Personnel Etc

      1. Summary

      2. Details of the Section

      3. Background Note

    76. Section 76: the Bank Levy: Rates from 1 April 2015

      1. Summary

      2. Details of the Schedule

      3. Background Note

    77. Section 77: Introduction to the Tax

      1. Summary

      2. Details of the Section

      3. Background Note

    78. Section 78: Overview of Part 3

      1. Summary

      2. Details of the Section

      3. Background Note

    79. Section 79: Charge to Tax

      1. Summary

      2. Details of the Section

      3. Background Note

    80. Section 80: Uk Company: Involvement of Entities Or Transactions Lacking Economic Substance

      1. Summary

      2. Details of the Section

      3. Background Note

    81. Section 81: Non-Uk Company: Involvement of Entities Or Transactions Lacking Economic Substance

      1. Summary

      2. Details of the Section

      3. Background Note

    82. Section 82: Calculation of Taxable Diverted Profits in Section 80 Or 81 Case: Introduction

      1. Summary

      2. Details of the Section

      3. Background Note

    83. Section 83: Section 80 Or 81 Cases Where No Taxable Diverted Profits Arise

      1. Summary

      2. Details of the Section

      3. Background Note

    84. Section 84: Section 80 Or 81: Calculation of Profits by Reference to the Actual Provision

      1. Summary

      2. Details of the Section

      3. Background Note

    85. Section 85: Section 80 Or 81: Calculation of Profits by Reference to the Relevant Alternative Provision

      1. Summary

      2. Details of the Section

      3. Background Note

    86. Section 86: Non-Uk Company Avoiding a Uk Taxable Presence

      1. Summary

      2. Details of the Section

      3. Background Note

    87. Section 87: Exception for Companies With Limited Uk-Related Sales Or Expenses

      1. Summary

      2. Details of the Section

      3. Background Note

    88. Section 88: Calculation of Taxable Diverted Profits in Section 86 Case: Introduction

      1. Summary

      2. Details of the Section

      3. Background Note

    89. Section 89: Section 86: Calculation of Profits Where Only Tax Avoidance Condition is Met

      1. Summary

      2. Details of the Section

      3. Background Note

    90. Section 90: Section 86: Mismatch Condition is Met: Calculation of Profits by Reference to the Actual Provision

      1. Summary

      2. Details of the Section

      3. Background Note

    91. Section 91: Section 86: Mismatch Condition is Met: Calculation of Profits by Reference to the Relevant Alternative Provision

      1. Summary

      2. Details of the Section

      3. Background Note

    92. Section 92: Duty to Notify If Potentially Within Scope of Tax

      1. Summary

      2. Details of the Section

      3. Background Note

    93. Section 93: Preliminary Notice

      1. Summary

      2. Details of the Section

      3. Background Note

    94. Section 94: Representations

      1. Summary

      2. Details of the Section

      3. Background Note

    95. Section 95: Charging Notice

      1. Summary

      2. Details of the Section

      3. Background Note

    96. Section 96: Section 80 Or 81 Cases: Estimating Profits for Preliminary and Charging Notices

      1. Summary

      2. Details of the Section

      3. Background Note

    97. Section 97: Section 86 Cases: Estimating Profits for Preliminary and Charging Notices

      1. Summary

      2. Details of the Section

      3. Background Note

    98. Section 98 and Schedule 16: Payment of Tax

      1. Summary

      2. Details of the Section

      3. Details of the Schedule

        1. Part 1

          1. Paragraph 1

        2. Part 2

          1. Paragraph 2

          2. Paragraph 3

          3. Paragraph 4

          4. Paragraph 5

          5. Paragraph 6

          6. Paragraph 7

          7. Paragraph 8

      4. Background Note

    99. Section 99: Diverted Profits Tax Ignored for Tax Purposes

      1. Summary

      2. Details of the Section

      3. Background Note

    100. Section 100: Credit for Uk Or Foreign Tax on Same Profits

      1. Summary

      2. Details of the Section

      3. Background Note

    101. Section 101: Hmrc Review of Charging Notice

      1. Summary

      2. Details of the Section

      3. Background Note

    102. Section 102: Appeal Against Charging Notice Or Supplementary Charging Notice

      1. Summary

      2. Details of the Section

      3. Background Note

    103. Section 103: Responsibility for Collection and Management

      1. Summary

      2. Details of the Section

      3. Background Note

    104. Section 104: Penalties Etc

      1. Summary

      2. Details of the Section

      3. Background Note

    105. Section 105: Information and Inspection Powers Etc

      1. Summary

      2. Details of the Section

      3. Background Note

    106. Section 106: “the Participation Condition”

      1. Summary

      2. Details of the Section

      3. Background Note

    107. Section 107: “Effective Tax Mismatch Outcome”

      1. Summary

      2. Details of the Section

      3. Background Note

    108. Section 108: Provision Supplementing Section 107

      1. Summary

      2. Details of the Section

      3. Background Note

    109. Section 109: “Excepted Loan Relationship Outcome”

      1. Summary

      2. Details of the Section

      3. Background Note

    110. Section 110: “the Insufficient Economic Substance Condition”

      1. Summary

      2. Details of the Section

      3. Background Note

    111. Section 111: “Transaction” and “Series of Transactions”

      1. Summary

      2. Details of the Section

      3. Background Note

    112. Section 112: Treatment of a Person Who is a Member of a Partnership

      1. Summary

      2. Details of the Section

      3. Background Note

    113. Section 113: “Accounting Period” and “Corresponding Accounting Period”

      1. Summary

      2. Details of the Section

      3. Background Note

    114. Section 114: Other Defined Terms in Part 3

      1. Summary

      2. Details of the Section

      3. Background Note

    115. Section 115: Application of Other Enactments to Diverted Profits Tax

      1. Summary

      2. Details of the Section

      3. Background Note

    116. Section 116: Commencement and Transitional Provision

      1. Summary

      2. Details of the Section

      3. Background Note

    117. Section 117 and Schedule 17: Disclosure of Tax Avoidance Schemes

      1. Summary

      2. Details of the Section

      3. Details of the Schedule

      4. Background Note

    118. Section 118 and Schedule 18: Accelerated Payments and Group Relief

      1. Summary

      2. Details of the Section

      3. Details of the Schedule

      4. Background Note

    119. Section 119 and Schedule 19: Promoters of Tax Avoidance Schemes

      1. Summary

      2. Details of the Section

      3. Details of the Schedule

      4. Background Note

    120. Section 120 and Schedule 20: Penalties in Connection With Offshore Matters and Offshore Transfers

      1. Summary

      2. Details of the Section

      3. Details of the Schedule

        1. Penalties for errors

        2. Penalties for failure to notify

        3. Penalties for failure to make returns etc

      4. Background Note

    121. Section 121 and Schedule 21: Penalties in Connection With Offshore Asset Moves

      1. Summary

      2. Details of the Section

      3. Details of the Schedule

      4. Background Note

    122. Section 122: Country-by-Country Reporting

      1. Summary

      2. Details of the Section

      3. Background Note

    123. Section 123: Status for Tax Purposes of Certain Bodies

      1. Summary

      2. Details of the Section

      3. Background Note

    124. Section 124: Redemption of Undated Government Stocks

      1. Summary

      2. Details of the Section

      3. Background Note

    125. Section 125: Commencement orders and regulations

      1. Summary

      2. Details of the Section

      3. Background Note

    126. Section 126 and 127: Final Provisions

      Section 126: Interpretation

    127. Section 127: Short Title

  2. Hansard References

  • Explanatory Notes Table of contents

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Explanatory Notes

Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.

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