Finance (No. 2) Act 2017

Duty to provide loan charge information U.K.

[F1 35A (1) Paragraphs 35B and 35C apply if one of the following conditions is met.

(2) The first condition is that—

(a) a person (“P”) is treated as taking a relevant step within paragraph 1 immediately before the end of 5 April 2019, and

(b) Chapter 2 of Part 7A of ITEPA 2003 applies by reason of that relevant step.

(3) The second condition is that—

(a) a person (“Q”) has made a loan which is an approved fixed term loan on 5 April 2019,

(b) if that day were the approved repayment date in relation to the loan—

(i) Q would be treated as taking a relevant step within paragraph 1 immediately before the end of that day, and

(ii) Chapter 2 of Part 7A of ITEPA 2003 would apply by reason of that relevant step, and

(c) A is living immediately before the end of—

(i) 30 September 2019, or

(ii) if earlier, the approved repayment date.

(4) The third condition is that—

(a) paragraph 24(1) applies by reference to a loan, or a quasi-loan, made by a person (“S”) to a relevant person (“R”),

(b) R makes an application under paragraph 24(1) for S to be treated as mentioned in paragraph 24(1) in relation to the relevant step concerned,

(c) a favourable decision is made on the application before 6 April 2019,

(d) that decision is not revoked before 6 April 2019,

(e) the first condition is not met, and

(f) A is living immediately before—

(i) the end of 30 September 2019, or

(ii) if earlier, the time given by sub-paragraphs (i) and (ii) of paragraph 24(1)(b).

(5) The fourth condition is that—

(a) none of the first, second and third conditions is met, and

(b) if the date specified in paragraph 1(1)(c) and (2)(b) were 16 March 2016 (and if paragraph 1(2)(a), and the words “in any other case” in paragraph 1(2)(b), were omitted)—

(i) a person (“T”) would be treated as taking a relevant step within paragraph 1 immediately before the end of 16 March 2016, and

(ii) Chapter 2 of Part 7A of ITEPA 2003 would apply by reason of that relevant step (using, for this purpose, the law that would be used to test whether that Chapter applies to a relevant step taken on 5 April 2019), and

(c) A is living immediately before the end of 5 April 2019.

(6) Paragraph 35C does not apply in a case where one of the first to fourth conditions is met if—

(a) a person agrees, with an officer of Revenue and Customs, terms for the discharge of liability for income tax,

(b) the terms cover all liability (if any) under Chapter 2 of Part 7A of ITEPA 2003 by reason of any loan-charge relevant step or result in there being no such liability, and

(c) the terms are agreed before 1 October 2019.

(7) In sub-paragraph (6)(b) “loan-charge relevant step” means (as the case may be)—

(a) the relevant step that P is treated as taking,

(b) any relevant step within paragraph 1 that Q is, or has yet to be, treated as taking by reference to the approved fixed term loan mentioned in sub-paragraph (3),

(c) any relevant step within paragraph 1 that S is, or has yet to be, treated as taking by reference to the loan or quasi-loan mentioned in sub-paragraph (4), or

(d) any relevant step within paragraph 1 that T is, or has yet to be, treated as taking by reference to the loan or quasi-loan by reference to which T would be treated as taking the relevant step mentioned in sub-paragraph (5)(b)(i).]

Textual Amendments

F1 Sch. 11 Pt. 3A inserted (15.3.2018) by Finance Act 2018 (c. 3), Sch. 1 para. 10