Finance (No. 2) Act 2017

[F1 “Loan charge information” U.K.

Textual Amendments

F1 Sch. 12 paras. 21-30 and cross-headings inserted (15.3.2018) by Finance Act 2018 (c. 3), Sch. 2 para. 1

23 (1) For the purposes of paragraph 22, the “loan charge information” consists of — U.K.

(a) T’s name and, if T’s personal representatives are providing the information, their names,

(b) the address and telephone number, and e-mail address (if any), of each person providing the information,

(c) T’s national insurance number (if any),

(d) the unique taxpayer reference number (if any) allocated to T by HMRC,

(e) the name of the arrangement mentioned in section 23A(3)(a) of ITTOIA 2005,

(f) the reference number (if any) allocated to the arrangement by HMRC under section 311 of FA 2004 (disclosure of tax avoidance schemes: arrangements to be given reference number),

(g) any other reference number allocated by HMRC in connection with the arrangement or with the loan or quasi-loan mentioned in paragraph 21(2) or (3),

(h) if the loan or quasi-loan mentioned in paragraph 21(2) or (3) is made to someone other than T, the name of the person to whom it is made,

(i) if a person has agreed terms with an officer of Revenue and Customs for the partial discharge of the liability for income tax arising because of the application of section 23E of ITTOIA 2005 in relation to the loan or quasi-loan mentioned in paragraph 21(2) or (3), the date of that agreement and the amount of the liability to which it relates,

(j) if the condition in paragraph 21(2) or (3) is met by reference to a loan, the loan payment information (see sub-paragraph (2)), and

(k) if the condition in paragraph 21(2) or (3) is met by reference to a quasi-loan, the quasi-loan payment information (see sub-paragraph (3)).

(2) The “loan payment information”, in relation to a loan, consists of statements of the following—

F2 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) the initial principal amount of the loan,

(c) the amount that has become principal under the loan, otherwise than by capitalisation of interest, in each relevant tax year,

(d) the amount of principal under the loan repaid in each relevant tax year, ignoring any repayments not in money made on or after 5 December 2016,

(e) the details of any repayment that is to be disregarded under paragraph 3(4),

(f) the amount of principal under the loan that has been released or written off in each relevant tax year,

(g) whether any liability for income tax arising because of the application of section 23E of ITTOIA 2005 by reason of the release or writing-off has been paid, and

(h) any amount released that has, in accordance with section 97 of ITTOIA 2005, been brought into account as a receipt in calculating the profits of the relevant trade.

(3) The “quasi-loan payment information”, in relation to a quasi-loan, consists of statements of the following—

(a) the amount equal to the value of the acquired debt,

(b) the amount equal to the value of the additional debts acquired in each relevant tax year,

(c) the amount by which the initial debt amount has been reduced by way of repayment in each relevant tax year, ignoring any repayments not in money made on or after 5 December 2016,

(d) where the acquired debt or an additional debt is a right to a transfer of assets, and the assets have been transferred, the amount of the market value of the assets at the time of the transfer,

(e) the details of any repayment that is to be disregarded under paragraph 9(5),

(f) the amount by which the initial debt amount has been reduced by release or writing off in each relevant tax year,

(g) whether any liability for income tax arising because of the application of section 23E of ITTOIA 2005 by reason of the release or writing-off has been paid, and

(h) any amount released that has, in accordance with section 97 of ITTOIA 2005, been brought into account as a receipt in calculating the profits of the relevant trade.

(4) In this paragraph “relevant tax year” in relation to a loan, or a quasi-loan, means—

(a) the tax year in which the loan or quasi-loan was made, and

(b) each subsequent tax year.

(5) In sub-paragraph (3), “acquired debt”, “additional debt” and “initial debt amount” have the same meaning as in paragraph 9.

(6) In this paragraph and in paragraphs 26 to 29, “HMRC” means Her Majesty’s Revenue and Customs.

Textual Amendments

F2 Sch. 12 para. 23(2)(a) omitted (22.7.2020) by virtue of Finance Act 2020 (c. 14), Sch. 2 para. 22

24 U.K. The Commissioners for Her Majesty’s Revenue and Customs may by regulations amend paragraph 23 so as to—

(a) add, remove or amend an entry in a list of information, and

(b) make incidental provision.]