Finance Act 2021

Miscellaneous

68 Statements for business customers

(1) A person who—

(a) supplies to a business customer a plastic packaging component in respect of which a charge to plastic packaging tax has arisen, and

(b) is liable to pay plastic packaging tax on that component,

must, when invoicing that customer in respect of that component, include with that invoice a statement of the amount of plastic packaging tax arising in relation to that component (a “PPT statement”).

(2) The reference in subsection (1)(a) to supplying a plastic packaging component to a business customer includes supplying that component by virtue of supplying other goods, such as goods that are contained within the component.

(3) A PPT statement must contain such particulars as the Commissioners may prescribe in regulations.

(4) In this section, “business customer” means a person who is supplied with a plastic packaging component in the course of their carrying out a business (within the meaning of section 43(2)).

69 Tax representatives of non-resident taxpayers

(1) The Commissioners may by regulations make provision requiring that every non-resident taxpayer appoint a person resident in the United Kingdom to act as the taxpayer’s tax representative for the purposes of plastic packaging tax.

(2) Regulations under subsection (1) may, in particular, make provision—

(a) requiring notification to be given to the Commissioners where a person becomes a non-resident taxpayer;

(b) requiring notification to be given to the Commissioners where a person appoints a person as a tax representative;

(c) for the appointment of a person as a tax representative to take effect only where the person appointed is approved by the Commissioners;

(d) authorising the Commissioners to give a direction requiring the replacement of a tax representative;

(e) about the circumstances in which a person ceases to be a tax representative and about the withdrawal by the Commissioners of their approval of a tax representative;

(f) enabling a tax representative to act on behalf of the person for whom they are the tax representative through an agent of the representative;

(g) for the purposes of any provision made by virtue of paragraphs (a) to (f) regulating the procedure to be followed in any case and imposing requirements as to the information and other particulars to be provided to the Commissioners;

(h) as to the time at which things done under or for the purposes of the regulations are to take effect.

(3) The tax representative of a non-resident taxpayer—

(a) may act on the non-resident taxpayer’s behalf for the purposes of any provision relating to plastic packaging tax, and

(b) is under a duty, except to such extent as the Commissioners may by regulations otherwise provide, to secure the non-resident taxpayer’s compliance with, and discharge of, the obligations and liabilities to which the non-resident taxpayer is subject by virtue of any provision relating to plastic packaging tax (including obligations and liabilities arising or incurred before the representative was appointed).

(4) A person who is or has been the tax representative of a non-resident taxpayer is personally liable—

(a) in respect of any failure to secure compliance with, or the discharge of, any obligation or liability to which subsection (3)(b) applies while they are or were the non-resident taxpayer’s tax representative, and

(b) in respect of anything done in the course of, or for purposes connected with, acting on the non-resident taxpayer’s behalf,

as if the obligations and liabilities to which subsection (3)(b) applies were imposed jointly and severally on the tax representative and the non-resident taxpayer.

(5) A tax representative is not liable by virtue of this section to be registered for the purposes of plastic packaging tax; but the Commissioners may by regulations—

(a) require the registration of the names of tax representatives against the names of the non-resident taxpayers of whom they are the representatives;

(b) make provision for the deletion of the names of persons who cease to be tax representatives.

(6) A tax representative is not, by virtue of this section, guilty of an offence except in so far as—

(a) they consented to, or connived in, the commission of the offence by the non-resident taxpayer;

(b) the commission of the offence by the non-resident taxpayer is attributable to any neglect on the part of the tax representative;

(c) the offence consists in a contravention by the tax representative of an obligation which, by virtue of this section, is imposed both on the tax representative and on the non-resident taxpayer.

(7) In this section “non-resident taxpayer” means a person who—

(a) is, or is liable to be, registered under this Part, and

(b) is not resident in the United Kingdom.

(8) For the purposes of subsection (7), a person is resident in the United Kingdom at any time if, at that time—

(a) that person has an established place of business in the United Kingdom;

(b) that person has a usual place of residence in the United Kingdom;

(c) that person is a firm or unincorporated body which (without being resident in the United Kingdom by virtue of paragraph (a)) has amongst its partners or members at least one individual with a usual place of residence in the United Kingdom.

70 Adjustment of contracts

(1) Subsection (2) applies where—

(a) a person (S) supplies a chargeable plastic packaging component that S has produced, or that was imported on behalf of S, to another person (P) under a contract,

(b) a payment falls to be made under the contract for the supply of the component, and

(c) after the making of the contract—

(i) plastic packaging tax becomes chargeable on the component, or

(ii) there is a change in the plastic packaging tax chargeable on the component.

(2) Unless the contract otherwise provides, S may adjust the amount of the payment mentioned in subsection (1)(b) so as to reflect the tax chargeable on the component.

(3) Subsection (4) applies where a person (S) supplies another person (P) with a chargeable plastic packaging component under a contract.

(4) Unless the contract provides otherwise, S may adjust the contract so that if P subsequently converts the component into a different chargeable plastic packaging component, P must provide S with information about the conversion.

(5) For the purposes of subsections (1) and (3), it is immaterial—

(a) when the contract was made;

(b) whether the contract also provides for other matters.

71 Groups of companies

(1) Subsection (2) applies where a body corporate (P) is liable to pay an amount of plastic packaging tax (or an amount recoverable on the basis that it is an amount of plastic packaging tax)—

(a) in respect of plastic packaging components produced by, or imported on behalf of, P, or

(b) by virtue of a secondary liability and assessment notice or a joint and several liability notice,

at the time P is a member of a group.

(2) For the purposes of this Part, the representative member of the group is to be treated as if it were liable to pay the amount instead of P.

(3) All the bodies corporate who are treated as members of a group when any amount becomes due from the representative member, together with any bodies corporate who become treated as members of the group while any such amount remains unpaid, are jointly and severally liable for the amount due from the representative member.

(4) For the purposes of this Part—

(a) a body corporate is to be treated as a member of a group at any time in relation to which it falls to be treated as such in accordance with provision made by Schedule 13, and

(b) the representative member of a group at any time is the body corporate which falls to treated as such in accordance with that Schedule.

(5) Schedule 13 makes provision about applications by two or more bodies corporate to be treated as members of the same group for the purposes of this Part.

72 Prevention of artificial separation of business activities: directions

(1) This section, and section 73, apply for the purpose of preventing the maintenance or creation of any artificial separation of business activities carried on by two or more persons from resulting in an avoidance of plastic packaging tax.

(2) The Commissioners may make a direction under this section naming any person only if they are satisfied that—

(a) the person is producing or importing, or has produced or imported, chargeable plastic packaging components,

(b) the activities in the course of which the person produces or imports, or produced or imported, chargeable plastic packaging components form only part of certain activities, the other activities being carried on concurrently or previously (or both) by one or more other persons,

(c) the activities carried on by those persons have been, or are, artificially separated, having regard to whether the persons carrying on those activities are connected within the meaning of section 1122 of CTA 2010 (“connected” persons), and

(d) if all the activities of those persons were taken into account, a single person carrying on that business would at the time of the direction be liable to be registered by virtue of section 55.

(3) Subsection (4) applies where, after making a direction under this section that specifies a description of business, it appears to the Commissioners that a person (P) who was not named in that direction is producing or importing, or has produced or imported, chargeable plastic packaging components in the course of activities which should be regarded as part of the activities of that business.

(4) The Commissioners may make a supplementary direction referring to the earlier direction and the description of business specified in it and adding P’s name to those of the persons named in the earlier direction with effect from—

(a) the date on which P began to produce or import those components, or

(b) if later, the date with effect from which the single taxable person referred to in the earlier direction became liable to be registered under this Part.

(5) If, immediately before a direction (including a supplementary direction) is made under this section, any person named in the direction is registered under this Part, the person ceases to be liable to be so registered with effect from the later of—

(a) the date with effect from which the single taxable person concerned became liable to be registered, and

(b) the date of the direction.

(6) A direction under this section must be given to each person named in it.

73 Prevention of artificial separation of business activities: effect of directions

(1) For the purposes of this Part, where a direction is made under section 72—

(a) the persons named in the direction are to be treated as a single taxable person carrying on the activities of a business described in the direction;

(b) the taxable person is liable to be registered under this Part with effect from—

(i) the date of the direction, or

(ii) such later date as may be specified in the direction;

(c) the taxable person is to be registrable in such name as—

(i) the persons named in the direction may jointly nominate in writing to the Commissioners not later than 14 days after the date of the direction, or

(ii) if no such name is nominated, in such name as may be specified in the direction;

(d) any production or import of chargeable plastic packaging components by or on behalf of one of the constituent members in the course of the activities of the taxable person is to be treated as production by or import on behalf of that person;

(e) each of the constituent members is to be jointly and severally liable for any plastic packaging tax due from the taxable person;

(f) any failure by the taxable person to comply with any requirement imposed by or under this Part is to be treated as a failure by each of the constituent members severally;

(g) subject to the preceding paragraphs, for the purposes of this Part the constituent members are to be treated as a partnership carrying on the business of the taxable person and any question as to the scope of the activities of that business at any time are to be determined accordingly.

(2) Subsection (3) applies where—

(a) it appears to the Commissioners that any person (P) who is one of the constituent members should no longer be regarded as such for the purposes of subsection (1)(e) and (f), and

(b) the Commissioners give notice to that effect.

(3) P is not liable by virtue of subsection (1)(e) and (f) for anything done after the date specified in that notice (and accordingly on that date P is to be treated as having ceased to be a member of the partnership referred to in subsection (1)(g)).

(4) In subsections (1) and (2), the “constituent members” means, in relation to a business specified in a direction under section 72, the persons named in the direction, together with any person named in a supplementary direction relating to that business (together being the persons who are to be treated as the taxable person).

74 Death, incapacity or insolvency of person carrying on a business: regulations

(1) The Commissioners may by regulations make provision for the purposes of plastic packaging tax in relation to cases where a person carries on the business of—

(a) an individual who has died or become incapacitated;

(b) a person (whether or not an individual) who is subject to an insolvency procedure (as defined in the regulations).

(2) Provision may be made by regulations under this section—

(a) requiring the person who is carrying on the business (P) to inform the Commissioners that P is carrying on the business and of the event that has led to P carrying it on;

(b) allowing P to be treated for a limited time as if P and the person who has died, become incapacitated or is subject to an insolvency procedure were the same person;

(c) about such other matters as the Commissioners think fit for securing continuity in the application of this Part in cases to which the regulations apply.

75 Transfer of business as a going concern: regulations

(1) The Commissioners may by regulations make provision for the purposes of plastic packaging tax in relation to cases where any business carried on by a person (P) is transferred to another person (T) as a going concern.

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

(a) provision requiring P to inform the Commissioners of the transfer;

(b) provision for P’s liabilities and duties under this Part to become, to such extent as may be provided by the regulations, liabilities and duties of T;

(c) provision for any right of either P or T to a tax credit or repayment of plastic packaging tax to be satisfied by allowing the credit or making the repayment to the other;

(d) provision as to the preservation of any records or accounts relating to the business which, by virtue of any regulations under section 63, are required to be preserved for any period after the transfer;

(e) such other provision as the Commissioners think fit for securing continuity in the application of this Part in cases to which the regulations apply.

(3) Regulations under this section may provide that no such provision as is mentioned in subsection (2)(b) or (c) has effect in relation to any transferor or transferee unless an application for the purpose has been made by them under the regulations.

76 Isle of Man: import and export of chargeable plastic packaging components

(1) Subsections (2) and (3) apply if—

(a) a chargeable plastic packaging component is imported into the United Kingdom from the Isle of Man, and

(b) a charge corresponding to plastic packaging tax (the “corresponding charge”) has arisen in relation to the component under the law of the Isle of Man.

(2) If the corresponding charge has arisen at a rate equal to, or greater than, the United Kingdom rate, the component is to be treated as not being imported into the United Kingdom for the purposes of plastic packaging tax.

(3) If the corresponding charge has arisen at a rate lower than the United Kingdom rate, the amount of plastic packaging tax charged under this Part in relation to the component is to be reduced by an amount equal to the corresponding charge.

(4) “The United Kingdom rate” in relation to a chargeable plastic packaging component is the rate of plastic packaging tax that would (apart from this section) be chargeable in relation to the component under this Part.

(5) For the purposes of provision made by or under sections 51 and 53, a chargeable plastic packaging component is to be treated as not being exported from the United Kingdom if it is exported from the United Kingdom to the Isle of Man.

(6) For the purposes of determining, in accordance with section 50, when a chargeable plastic packaging component is imported into the United Kingdom from the Isle of Man, section 8 of the Isle of Man Act 1979 (removal of goods from the Isle of Man) is to have effect as if, in subsection (2), at the end of paragraph (c), there were inserted “; or

(d) goods which are chargeable plastic packaging components for the purposes of plastic packaging tax.”