Finance (No. 2) Act 2023

Part 1Income tax, corporation tax and capital gains tax

Income tax charge, rates etc

1Income tax charge for tax year 2023-24

2Main rates of income tax for tax year 2023-24

3Default and savings rates of income tax for tax year 2023-24

4Freezing starting rate limit for savings for tax year 2023-24

Corporation tax charge and rates

5Charge and main rate for financial year 2024

6Standard small profits rate and fraction for financial year 2024

Capital allowances

7Temporary full expensing etc for expenditure on plant or machinery

8Annual investment allowance to remain at £1M beyond temporary period

9First-year allowance for expenditure on electric vehicle charge points

Other reliefs relating to businesses

10Relief for research and development

11Treatment of profits from patents etc: small profits rate of corporation tax

12Energy (oil and gas) profits levy: de-carbonisation allowance

13Museums and galleries exhibition tax relief: extension of sunset date

14Extension of the temporary increase in theatre tax credit etc

15Seed enterprise investment scheme: increase of limits etc.

Reliefs for employees

16CSOP schemes: share value limit and share class

17Enterprise management incentives: restricted shares and declarations

18Lifetime allowance charge abolished

19Certain lump sums to be taxed at marginal rate

20Annual allowance increased

21Money purchase annual allowance

22Annual allowance: tapering

23Modification of certain existing transitional protections

24Collective money purchase arrangements

25Relief relating to net pay arrangements

Social security

26Payments under Jobs Growth Wales Plus

27Power to clarify tax treatment of devolved social security benefits

Foster carers etc

28Qualifying care relief: increase in individual’s limit

Estates in administration and trusts

29Estates in administration and trusts

Provisions relating to insurance

30Transfer of basic life assurance and general annuity business

31Certain re-insurance sums not to count as deemed I-E receipts

32Insurers in difficulties: write-down orders for corporation tax purposes

33Insurers in difficulties: write-down orders in case of pension schemes

Miscellaneous corporation tax matters

34Corporate interest restriction

35Investment vehicles

International matters

36Share exchanges involving non-UK incorporated close companies

37Records relating to transfer pricing

38Double taxation relief: foreign nominal rates

Chargeable gains

39Payments to farmers under the lump sum exit scheme etc

40Contracts completed after ordinary notification period

41Separated spouses and civil partners

42Carried interest: election to pay tax as scheme profits arise

43Relief on disposal of joint interests in land

Part 2Alcohol Duty

Chapter 1Charge to alcohol duty

Alcoholic products

44Meaning of “alcoholic product”

45Alcoholic strength

46Categories of alcoholic products: regulations

Charge and rates

47Alcohol duty: charge

49Excise duty point and payment

Chapter 2Draught relief

50Qualifying draught products: reduced rates

51Alcoholic products qualifying for draught relief

52Repackaging qualifying draught products

53Repackaging in contravention of section 52 (2)

Chapter 3Small producer relief

Main provisions

54Small producer relief: discounted rates

55Small producer alcoholic products

56Small production premises

57“Alcohol production amount” etc

59Duty discount for small producer alcoholic products

60Assessments where incorrectly low rate of alcohol duty applied

Mergers and demergers

61Mergers: general provisions

62Modified “small production premises” test

63Modified duty discount

64Adjusted post-merger amount

65Early termination of merger transition period

66Subsequent mergers

67Simultaneous mergers

Interpretation of Chapter 3

69“Producer”, “production premises”, “group premises” etc

70Connected persons

71Index of defined expressions: Chapter 3

Chapter 4Other reliefs and exemptions

72Exemption: production for personal consumption

73Research and experiments

74Spoilt alcoholic products

75Alcoholic ingredients

76Imported medical articles

78Authorised use for certain purposes

79Imported goods not for human consumption

80Restrictions on use of certain articles

Remission and repayment

81Further provision about remission and repayment

Chapter 5Regulated activities and approvals

82Approval requirement: producers

83Supplementary provision about approvals

84Exemption: production for personal consumption

85Exemption: research and experiments

86Mixing alcoholic products

87Post-duty point dilution of alcoholic products

88Alcoholic products regulations

89Penalties and forfeiture

Chapter 6Denatured alcohol

90Denatured alcohol

91Licence to manufacture and deal wholesale in denatured alcohol

92Regulations relating to denatured alcohol

93Penalties and forfeiture

94Defaults in respect of denatured alcohol: possession of excess alcoholic products

95Defaults in respect of denatured alcohol: supply and use of denatured alcohol

96Inspection of premises etc

97Prohibition of use of denatured alcohol etc as beverage or medicine

Chapter 7Wholesaling of controlled alcoholic products

99Further provision relating to definitions

100Approval to carry on controlled activity

101The register of approved wholesalers

102Regulations relating to approval, registration and controlled activities

103Restriction on buying controlled alcoholic products wholesale

107Index of defined expressions: Chapter 7

Chapter 8Supplementary

108Reviews and appeals

109Forfeiture: supplementary provision

110Removal of goods: application of section 95 of CEMA 1979

Chapter 9repeals, further amendments and transitional provisions

Repeals and further amendments

114Minor and consequential amendments

Transitional provision

115Temporary provision: wine

116Temporary provision: cider

Chapter 10Final provisions

117Interpretation of this Part

118Regulations: supplementary and general

119Regulations: procedure

120Commencement

Part 3Multinational top-up tax

Chapter 1Introduction and charge

121Introduction to multinational top-up tax

122Chargeable persons

123Amount charged by reference to “top-up amounts”

124How to calculate top-up amounts and attribute them

125Administration of multinational top-up tax

Chapter 2Qualifying multinational groups and their members

Multinational groups

126Meaning of “multinational group” and “ultimate parent”

127Excluded entities

Responsible members

128Responsible members

Qualifying multinational groups

129Qualifying multinational groups

130Change in composition of multinational group

131Whether de-merged groups meet the revenue threshold

Chapter 3Effective tax rate of members of a multinational group in a territory

132Effective tax rate

Chapter 4Calculation of adjusted profits of members of a multinational group

Adjusted profits of a member of a multinational group

133Adjusted profits of a member of a multinational group

134Underlying profits as determined for statements of ultimate parent

135Underlying profits of permanent establishments

136Underlying profits accounts

137No amounts outside of profit and loss account to be included

Adjustments of underlying profits

138Profits adjusted to be before tax

139Profits adjusted to be profits before consolidation adjustments to eliminate intragroup transactions

140Profits adjusted to be profits before certain purchase accounting adjustments

141General exclusion of dividends

142Excluded equity gain or loss

143Included revaluation method gain or loss

144Adjustments for asymmetric foreign currency income and losses

145Exclusion of expenses for illegal payments, fines and penalties

146Adjustment for changes in accounting policies and prior period errors

147Accrued pension expense

147ATreatment of tax credits

148Meaning of qualifying refundable tax credits

148ATransferable tax credits

148BValue of marketable transferable tax credits: originator

148CValue of marketable transferable tax credits: purchaser

149Arm’s length requirement for certain transactions

150Transactions between members of a multinational group: differences with accounting for tax

151Adjustments for companies in distress

152Adjustments where life assurance business carried on

153Exclusion of certain insurance reserve movement expense

154Exclusion of qualifying intra-group financing arrangement expenses

155Qualifying tier one capital

156Exclusion of international shipping profits

157Core international shipping profits

158Ancillary international shipping profits

Adjustments only applicable to permanent establishments

159Permanent establishment income and expense attribution

160Attribution of losses between permanent establishment and main entity

Elections to treat certain amounts differently

161Election to use realisation principle

162Election to reflect deductions for stock-based compensation

163Election to spread certain capital gains over five years

164Election to exclude intra-group transactions

165Election to have excluded equity gains and losses included

166Election in relation to hedging currency risk in ownership interests

Dealing with transparency and entities subject to qualifying dividend regime

167Underlying profits of hybrids

168Underlying profits of transparent and reverse hybrid entities

169Certain non tax resident entities to be treated as flow-through entities

170Adjustments for ultimate parent that is a flow-through entity

171Ultimate parent subject to qualifying dividend regime

172Application of section 171 to members in the same territory as the ultimate parent

Chapter 5Covered tax balance

Amount of covered taxes

173Covered taxes

174Amount of covered tax balance

175Amounts excluded from covered tax balance

176Amounts to be reflected in covered tax balance

Transferable tax credits

176AMeaning of “non-marketable transferable tax credits”

176BValue of non-marketable transferable tax credits: originator

176CValue of non-marketable transferable tax credits: purchaser

Tax equity partnerships

176DTax credits etc allocated under tax equity partnerships

176EFlow-through tax benefits: proportional amortisation method

176FFlow-through tax benefits: subtraction method

Allocation of covered taxes

177Permanent establishments

178Reallocation of tax expense

179Controlled foreign company tax regimes

180Blended CFC regimes

181Distributions from other members of a group

Dealing with deferred tax assets etc

182Total deferred tax adjustment amount

183Qualifying foreign tax credits (substitute loss carry forward assets)

183AAlternative to section 183 where carry forward of credits not permitted

184Recaptured deferred tax liabilities

185Inclusion of existing deferred tax assets and liabilities on entry into regime

186Deferred tax assets recorded at less than minimum rate

187Election for losses to be treated as special loss deferred tax assets

188Further provision about elections under section 187

Eligible distribution tax systems: deemed taxes

189Deemed distribution tax election

190Deemed distribution tax amount

191Reduction of recapture amount

192Recalculation where member leaves the group

Chapter 6Calculation of top-up amounts

193Calculation of top-up amounts

194Total top-up amount for a territory

195Substance based income exclusion

196Eligible payroll costs

197Eligible tangible asset amount

197AOperating leases

198Eligible payroll costs and eligible tangible asset amount: permanent establishments and flow-through entities

198APower to make provision about treatment of payroll costs and assets

199Election to treat total top-up amount as nil

Chapter 7Allocating top-up amounts to responsible members

200Top-up amounts multiplied by inclusion ratio

201Inclusion ratio

Chapter 8Further adjustments

Covered taxes less than nil

202Covered taxes balance less than nil when members in a territory have a profit

203Additional top-up amounts where covered taxes less than expected

204Allocation of collective additional amount under section 203 to members

205Election to carry forward and reduce collective additional amount

Additional top-up amounts on recalculations

206Additional top-up amounts where recalculations required

207Allocation of collective additional amounts under section 206 to members

Restructuring of groups

208Member joining or leaving multinational group

209When transfer of controlling interest treated as acquisition of assets and liabilities

210Transfer of assets or liabilities from a member of a multinational group

211Transfer of assets or liabilities to a member of a multinational group

212Meaning of “qualifying reorganisation”

Elections in relation to investment entities

213Investment entity tax transparency election

214Taxable distribution method election

215Undistributed income amount

Other adjustments

216Election where assets and liabilities adjusted to fair value for tax purposes

217Post filing adjustments of covered taxes

218Effect of rate changes to deferred tax expense

219Adjustment where covered taxes not paid

Chapter 9Special provision for investment entities, joint venture groups and minority-owned members

Investment entities

220Top-up amount of investment entity

221Substance based income exclusion for investment entity

222Investment entity effective tax rate

224Additional top-up amounts of investment entities

225Attribution of top-up amounts and additional top-up amounts to responsible member

Joint venture group

226Joint venture group

227Application of Part to joint venture groups

Minority owned members

228Minority owned members

Application to multi-parent groups

229Multi-parent groups

Chapter 10Definitions etc

230Meaning of terms and concepts used in this Part

Meaning of “entity” etc

231Meaning of entity

232Permanent establishments treated as entities

232APartnerships

233Treatment of protected cell companies

234Governmental, international and non-profit entities

235Pension funds and pension services entities

236Investment funds and investment entities

237Intermediate and partially-owned parent members

238Tax transparency of entities

Provision relating to location of entities

239Location of entities

240Location of flow-through entities and permanent establishments

241Pillar Two territories

Ownership of entities

242Ownership interests and controlling interests

243Calculating percentage ownership interests of a specific entity or individual

244Calculating percentage ownership interests of a class

245Calculating percentage ownership interests: excluded entities

246Calculating percentage direct and indirect ownership interests

247Timing of transfers of interests

248Exclusion of indirect interests held through ultimate parent

Financial statements and accounting period

249Consolidated financial statements

250Acceptable accounting standards

251Accounting periods

251AMeaning of country-by-country report

252Application to sovereign wealth funds

253Disqualified and qualified refundable imputation taxes

254Use of currency

255Pillar Two rules

256Qualifying domestic top-up tax

256AQualifying domestic top-up tax treated as not accruing where contested etc

257Qualifying undertaxed profits tax

258Meaning of “connected”

259Other definitions

Chapter 11General and miscellaneous provision

260Transitional provision and safe harbours

261Index of defined expressions

262Power to amend to ensure consistency with Pillar Two

264Multinational top-up tax to apply from 31 December 2023

Part 4Domestic top-up tax

Chapter 1Introduction

265Introduction to domestic top-up tax

266Qualifying entities

267DTT excluded entities

267ASecuritisation companies in a group treated as not consolidated

268Permanent establishments

268APartnerships

Chapter 2Charge to domestic top-up tax

269Chargeable persons

270Amount charged

271Election to make one member of a group liable for amounts charged

Chapter 3Application of multinational top-up tax provisions

272Determining top-up amounts of entity that is a member of a group

272ATreatment of covered bond vehicles

273Determining top-up amounts of entity that is not a member of a group

273AReferences to Pillar Two rules

273BEffect of becoming subject to Pillar Two rules

273CDividends from protected cell companies

274Application of section 262

275Application of Schedule 14

276Application of transitional provision

277Index of defined expressions

278Domestic top-up tax to apply from 31 December 2023

Part 5Electricity generator levy

Introduction and charge

279Charge on exceptional generation receipts

280Key concepts (generating undertaking etc)

281Benchmark amount

Calculation of exceptional generation receipts

282Attribution of generation

283Generation receipts

284Allowable costs

285Exceptional generation fuel costs

286Exceptional revenue sharing costs

Groups, partnerships and joint ventures

288Lead member of a group and its qualifying periods

289Liability of members of groups

290Election for members with significant minority shareholding to pay levy

291Qualifying partnerships

292Qualifying joint ventures

Attribution and surrender of amounts: joint ventures and significant minority shareholders

293Non-chargeable amounts of joint venture to be attributed to participants

294Generation acquired and supplied by JV participants

295Arrangements that reflect receipts (JV participants)

296Generation acquired and supplied by significant minority shareholders

297Arrangements that reflect receipts (significant minority shareholders)

298Surrender of shortfalls

299Amount that may be surrendered and use of that amount

Treatment of company as transparent as alternative to attribution and surrender

300Election to treat certain companies as transparent

301Effect of company being transparent

Management and administration

302General application of corporation tax administration

303Company tax returns

304Requirement to provide information about payments

305Claims to shortfall amounts

306Application of Part 5A of TMA 1970 and Instalment Payments Regulations

307Application of Part 5 of CTA 2010 for the purposes of determining interests

308Anti-avoidance

309Information sharing

310Interaction of electricity generator levy with corporation tax

311Regulations under this Part

311AMeaning of “qualifying new generating plant”

312Minor definitions relating to electricity market

313Definitions in this Part

Part 6Other taxes

Stamp duty land tax

314Transactions funded with the assistance of a public subsidy

Value added tax

315Deposit schemes

316Dumping, subsidisation and safeguarding remedies

317Rulings as to method of valuation of goods

318Discharging goods from free-circulation procedure subject to guarantee

319Excepted machines etc

Tobacco products duty

320Rates of tobacco products duty

Soft drinks industry levy

321Flavour concentrates

Air passenger duty

322New bands and rates

323Northern Ireland rates

324Rates of vehicle excise duty

325Reform of HGV road user levy

326End of exempt period for HGV road user levy

Environmental taxes

327Rates of landfill tax

328Rates of climate change levy

329Rate of plastic packaging tax

330Aggregates levy: exemptions and exploitation

Part 7Miscellaneous and final

Freeports and investment zones

331Designation of sites

332Sunset date for reliefs

333Right to repayment of income tax to be inalienable

334Late payment interest on value added tax

335Penalties for failure to pay value added tax

336VAT credits: repayment interest due where evidence not provided

337Insurance premium tax: power to make regulations about notifications

338Penalties for failure to make payments of plastic packaging tax on time

Management of customs and excise

339Approval of aerodromes

340Approved aerodromes: minor and consequential amendments

341Temporary approvals etc

342Licensing authorities: requirements to give or obtain tax information

343Section 342: consequential amendments

Charities and community amateur sports clubs

344Definition of “charity” restricted to UK charities

345Definition of “community amateur sports club” restricted to UK clubs

Homes for Ukraine Sponsorship Scheme

346Exemptions from tax

Office of Tax Simplification

347Abolition of the Office of Tax Simplification

The dormant assets scheme

348Pension benefits and inheritance tax

349International arrangements for exchanging information

350Payment of unclaimed money in court into the Consolidated Fund

351Financial sanctions regulations: prohibition on certain payments by HMRC

352Communications data

353Interpretation

Schedule 1Relief for research and development

Part 1Claim notifications

1Requirement to make claim notifications in relation to certain R&D claims

2(1) Part 13 of CTA 2009 (additional relief for expenditure...

Part 2R&D expenditure on data and cloud computing

3Relief for R&D expenditure on data and cloud computing

4Relief for R&D expenditure on data and cloud computing: consequential amendments

5In Chapter 6A of Part 3 (trade profits: R&D expenditure...

6In Part 13 (additional relief for expenditure on R&D)—

7In Schedule 2 (transitionals and savings), in Part 15 (research...

8In Schedule 4 (index of defined expressions), in both places...

9In section 357BLB of CTA 2010 (qualifying expenditure on relevant...

Part 3Amendments to Schedule 18 to FA 1998

11Power of HMRC to collect overpaid R&D tax relief or expenditure credit

12Time limits for R&D claims

13Requirement to provide additional information in relation to R&D claims

14Power of HMRC to remove R&D claims made in error from return

Part 4Miscellaneous amendments

15Amendment of CTA 2009

16R&D tax relief: circumstances in which enterprises are treated as SMEs

17Accounts treated as prepared on going concern basis

18Meaning of expenditure incurred on payments

Part 5Commencement

19The amendment made by paragraph 13 of this Schedule has...

20The amendments made by the remaining provisions of this Schedule...

Schedule 2Estates in administration and trusts

Part 1Estates in administration

Chapter 1Income tax

1The applicable rate for grossing up basic amounts of estate income

2The applicable rate for grossing up for determining shares in an estate in the final tax year

3Income from stock dividends etc treated as bearing income tax at 0%

4Income treated as dividend income and savings income

5Order in which basic amounts are treated as paid from aggregate income

Chapter 2Corporation tax

6The applicable rate for grossing up basic amounts of estate income

7The applicable rate for grossing up for determining shares in an estate in the final tax year

8Income from stock dividends etc treated as bearing income tax at 0%

9Order in which basic amounts are treated as paid from aggregate income

Part 2Low income trusts and estates

Chapter 1Income tax

10Low income estates and trusts: tax liability of personal representatives and trustees

11Low income estates: tax liability of beneficiaries

Chapter 2Corporation tax

12Low income estates: tax liability of beneficiaries

Part 3Rate of tax charged on trustees’ first slice of trust rate income: income tax

13(1) ITA 2007 is amended as follows.

Part 4Commencement

14(1) The amendments made by this Schedule have effect as...

Schedule 3Corporate interest restriction etc.

Part 1Amendments to TIOPA 2010

2Tax-interest expense amounts of a company: charities

3First period of account where new holding company

4In section 400A (carry forward of excess debt cap: new...

5Amounts not brought into account in determining a company’s tax-EBITDA

6“Relevant expense amount” and “relevant income amount”

7In section 412 (interpretation of section 411), in subsection (7),...

8Adjusted net group-interest expense: debits referable to times before UK property business etc carried on

9Adjusted net group-interest expense: debits in respect of pre-trading expenditure

10Qualifying net group-interest expense: meaning of “equity notes”

11In section 415 (qualifying net group-interest expense: interpretation), for subsection...

12Capitalised interest brought into account for tax purposes in accordance with GAAP

13Interest allowance (non-consolidated investment) election: “non-consolidated associate”

14Public infrastructure

15(1) Section 436 (meaning of “qualifying infrastructure activity”) is amended...

16After section 438 insert— Application of section 438: certain creditors...

17Partnerships and other transparent entities

18Investments held by investment managers

19Determining the worldwide group: “non-consolidated subsidiary” and “consolidated subsidiary”

20Appointment of a reporting company by Revenue and Customs

21Revised interest restriction return

22(1) Paragraph 29 of Schedule 7A (penalty for failure to...

23Enquiry into interest restriction return

24Determinations by officers of Revenue and Customs

25Consequential claims to company tax returns

Part 2Other amendments

26Penalties for errors: CIR alterations to be ignored in calculating potential lost revenue

27Disapplication of carry forward rule for deficits

28Defined expressions used in Part 10 of TIOPA 2010: “insurance company”

29Determining the worldwide group: consequential amendment

Part 3Parts 1 and 2: commencement and transitional provision

30Except as provided in paragraphs 31 to 35, the amendments...

31The amendments made by paragraph 5(1) and (3) have effect...

32(1) The amendments made by paragraph 8 have effect for...

33The amendments made by paragraph 9 have effect for periods...

34The amendments made by paragraphs 2, 14 to 16, and...

35The amendment made by paragraph 20 has effect in relation...

36References in this Part of this Schedule to periods of...

Part 4Tax treatment of financing costs and income

37This Part of this Schedule applies if—

38(1) Part 7 of TIOPA 2010 has effect in relation...

39For the purposes of this Part (and of the application...

40(1) References in this Part to any provision of Part...

Schedule 4Investment vehicles

Part 1UK property rich collective investment vehicles etc

1Genuine diversity of ownership

Part 2Real estate investment trusts

2Amendment of CTA 2010

3REITs involving single commercial property

43-year development rule

5Genuine diversity of ownership

6Amendment of the Real Estate Investment Trusts (Assessment and Recovery of Tax) Regulations 2006

Part 3Qualifying asset holding companies

7Amendment of Schedule 2 to FA 2022

8Securitisation companies unable to be QAHCs

9Beneficial entitlement held only through QAHCs

10Determining relevant interests

11Dealing with bodies corporate without share capital

12Genuine diversity of ownership

13Investment strategy condition

14Disposal of derivatives where underlying subject matter is shares

15Alternative finance arrangements

Schedule 5Records relating to transfer pricing

Part 1Amendments relating to corporation tax

1Records to be kept for the purposes of corporation tax

2Assessments relating to corporation tax

Part 2Amendments relating to income tax

3Records to be kept for the purposes of income tax

4Assessments relating to income tax

Part 3Amendments relating to corporation tax and income tax

5Penalties for errors

6Information and inspection powers

Part 4Commencement

7Regulations made under— (a) paragraph 21 of Schedule 18 to...

Schedule 6Categories of alcoholic products: interpretation

2The extraction of spirits absorbed in a wooden cask is...

4(1) A qualifying beer-based beverage is treated as beer for...

6In paragraph 5, “permitted substance” means a substance that—

7(1) For the purposes of paragraph 5, the juice content...

8(1) “Sparkling cider” means cider which— (a) if it is...

9Rendering cider sparkling, at any time after the excise duty...

10“Still cider” means cider that is not sparkling cider.

12Other fermented products

Schedule 7Rates of alcohol duty

Schedule 8Qualifying draught products: reduced rates

Schedule 9Small producer alcoholic products: duty discount

Part 1Alcoholic products, other than qualifying draught products, of an alcoholic strength of less than 8.5%

Part 2Qualifying draught products of an alcoholic strength of less than 8.5%

Schedule 10Penalties for contraventions of alcohol wholesaling provisions

1Liability to penalty

2Amount of penalty

3Reductions for disclosure

4(1) Where P discloses a contravention, the Commissioners must reduce...

5Special reduction

7Reasonable excuse

8Companies: officer’s liability

9Double jeopardy

10The maximum amount

11Appeal tribunal

Schedule 11Alcohol duty: reviews and appeals

1(1) Section 13A(2) of FA 1994 (meaning of “relevant decision”)...

2In Schedule 5 to FA 1994 (decisions subject to review...

Schedule 12Alcohol duty: duty stamps

1Retail containers to be stamped

2Power to alter alcoholic products, and capacity of containers, to which this Schedule applies

3Acquisition of, and payment for, duty stamps

5Offences of possession, sale etc of unstamped containers

6Offence of using premises for sale of alcoholic products in or from unstamped containers

7Alcohol sales ban following conviction for an offence under paragraph 6

8Penalty for altering duty stamps

9Penalty for affixing wrong, altered or forged stamps, or over-labelling

10Penalty for failing to comply with regulations

11Forfeiture of forged, altered or stolen duty stamps

12Interpretation

Schedule 13Alcohol duty: minor and consequential amendments

2(1) Section 1 (interpretation) is amended as follows.

3In section 112 (power of entry upon premises, etc of...

4(1) Section 114 (power to prohibit use of certain substances...

5In section 163A (power to search articles), in subsection (2),...

6Customs and Excise Duties (General Reliefs) Act 1979

7Excise Duties (Surcharges or Rebates) Act 1979

9In section 12 (assessments to excise duty), in subsection (2)(ca),...

10In section 12A (other assessments relating to excise duty matters),...

11(1) Section 12B (section 12A: supplementary provisions) is amended as...

12In section 16 (appeals to a tribunal), in subsection (3A),...

13In section 16A (temporary approvals etc. pending review or appeal),...

14In Schedule 5 (decisions subject to review and appeal)—

20Taxation (Post-transition Period) Act 2020

Part 2Approvals etc.

22(1) Section 1(1) (interpretation:defined terms) is amended as follows.

23(1) Section 112 (power of entry upon premises, etc of...

24In section 113 (power to search for concealed pipes etc),...

25In section 136 (offences in connection with claims for drawback...

26(1) Section 160 (power to take samples) is amended as...

27In section 178 (citation) in subsection (2), omit “the Alcoholic...

32(1) In Schedule 55 (penalty for failure to make returns...

33(1) In Schedule 56 (penalty for failure to make payments...

Schedule 14Administration of multinational top-up tax

1(1) The Commissioners for His Majesty’s Revenue and Customs are...

Part 2Meaning of “filing member”

2(1) The filing member of a multinational group is the...

3(1) This paragraph applies where— (a) the filing member of...

4(1) The obligations of a filing member of a multinational...

5(1) This paragraph applies if at any time (“the relevant...

Part 3Registration

6(1) The filing member of a multinational group must register...

7(1) This paragraph applies where the filing member of a...

8(1) This paragraph applies where the filing member of a...

9(1) The filing member of a registered group must notify...

Part 4Information returns

10(1) The filing member of a registered group must submit...

11(1) The filing member may amend a return submitted under...

12HMRC may take into account an information return in performing...

Part 5Self-assessment returns

13(1) The filing member of a registered group must submit...

14(1) The filing member may amend a return submitted under...

Part 6Enquiries into a self-assessment return

15(1) This Part of this Schedule applies if the filing...

16(1) An officer of Revenue and Customs may enquire into...

17(1) An enquiry may extend to anything contained in the...

18(1) For the purposes of this Part an enquiry is...

19(1) If at a time when an enquiry is in...

20(1) This paragraph applies if a return is amended at...

21(1) At any time when an enquiry is in progress...

22(1) Any matter to which an enquiry into a return...

23(1) The filing member may apply to the tribunal for...

Part 7Determinations where self-assessment return not submitted

24This Part of this Schedule applies if the filing member...

25(1) An officer of Revenue and Customs may make a...

26(1) If, after a determination has been made—

Part 8Discovery assessments

27(1) If, in respect of an accounting period, an officer...

28(1) This paragraph applies where the filing member of the...

29(1) The general rule is that no discovery assessment may...

30(1) The officer of Revenue and Customs must give notice...

Part 9Record-keeping requirements

31(1) The filing member of the group must—

Part 10Payments of multinational top-up tax

32Timing of payments

33(1) Interest is to accrue on amounts payable under paragraph...

33A(1) Where a person has paid an amount that has...

34Group payment notices

35(1) Where the multinational group contains ring-fenced entities, a group...

36(1) The effect of a group payment notice being issued...

37Effect of group payment for tax purposes

37APartnership payment notices

37BRecovery of partnership payment and effect for tax purposes etc

39Power to make regulations

Part 11Penalties

40Penalties payable in connection with this Schedule

41In paragraph 1 of Schedule 41 to FA 2008 (penalties...

42(1) A penalty is payable if the filing member fails...

43(1) A penalty is payable if the filing member fails...

44(1) This paragraph applies if the filing member satisfies HMRC...

45In paragraph 1 of Schedule 24 to FA 2007 (penalties...

46(1) A penalty is payable if— (a) the member breaches...

47Penalties under paragraphs 42, 43 and 46: administration and supplemental provision

48(1) HMRC must— (a) assess the penalty, and

49(1) If HMRC thinks it right because of special circumstances,...

50Multiple penalties in respect of same accounting period

Part 12Appeals and claims

51Claims in relation to overpaid tax

52(1) This paragraph applies where one or more of Cases...

53(1) An officer of Revenue and Customs may enquire into...

54(1) This paragraph applies where— (a) an amount has been...

55Appeals of decisions: general

56(1) The effect of a notice of appeal being given...

57Reviews by HMRC

58(1) The review is to be conducted as follows.

59(1) The review may conclude that HMRC's view of the...

60(1) In paragraphs 57 to 59, a reference to the...

61Settlement agreements

62Determination by tribunal

63Postponement of payment pending appeal

64(1) The appellant may apply to HMRC for a determination...

65(1) The appellant may apply to the tribunal for a...

66(1) HMRC and the appellant may agree that payment of...

67Special provisions as to penalties

Part 13Other amendments

68(1) In section 1(1) of the Provisional Collection of Taxes...

Schedule 15Multinational top-up tax: elections

1Long term elections

2Annual elections

Schedule 16Multinational top-up tax: transitional provision

Part 1General transitional measures

1Transitional relief for substance-based income exclusion

2Intra-group transfers before entry into regime

Part 2Transitional safe harbour

Chapter 1Transitional safe harbour election

4Qualified financial statements and basis of calculations

5Qualifying income tax expense

7Threshold test

8Simplified effective tax rate test

9Routine profits test

Chapter 2Application to joint ventures etc

10Application in the case of joint venture group

11Application to investment entities in same territory as owners

12Minority owned members

Part 3Transitional reporting election

13Transitional reporting election

Schedule 16AMultinational top-up tax: safe harbours

Part 1Qualifying domestic top-up tax safe harbour

Chapter 1Qualifying domestic top-up tax safe harbour election

1Election for qualifying domestic top-up tax safe harbour

2Accredited qualifying domestic top-up tax

3Disqualifying conditions

Chapter 2Application to non-standard members of a multinational group

4Application in the case of joint venture group

5Application in the case of investment entities

6Application in the case of minority owned members

Schedule 17Index of expressions defined or explained in Parts 3 and 4

Schedule 18Administration of domestic top-up tax

2Meaning of “filing member”

4Other administrative provisions

5(1) In Part 11 of Schedule 14 (penalties), only paragraphs...

6Amendments: penalties

7Other amendments

Schedule 19Dumping, subsidisation and safeguarding remedies

Part 1Dumping and subsidisation remedies

2Notification etc

3Provisional remedies

4Definitive remedies

6Revocation in the public interest

7Power to request assistance etc

Part 2Safeguarding remedies

9Notification etc

10Provisional remedies

11Definitive remedies

13Revocation in the public interest

14Power to request assistance etc

Part 3Consequential and related provision

15In section 13 of TCTA 2018 (dumping of goods, foreign...

16(1) The Treasury or the Secretary of State may by...

Part 4Commencement

17(1) Any power to make regulations under or by virtue...

Schedule 20Bilateral safeguarding remedies

Part 1Amendments to TCTA 2018

1(1) Section 13 of TCTA 2018 is amended as follows....

2After Schedule 5 of that Act insert— Schedule 5A Increase...

Part 2Commencement

3(1) Any power to make regulations under or by virtue...

Schedule 21Soft drinks industry levy: flavour concentrates

2Meaning of “soft drink” and “package”

3Meaning of “prepared drinks”

4Sugar content condition

5Exempt soft drinks

Schedule 22Reforms of HGV road user levy

1The HGV Road User Levy Act 2013 is amended as...

2In section 1(1) (charge to HGV road user levy), for...

3(1) Section 3 (roads to which this Act applies) is...

4In section 5(7) (payment of levy for UK heavy goods...

5(1) Section 6 (payment of levy for non-UK heavy goods...

6In section 7(2) (rebate of levy), for paragraph (c) substitute—...

7In section 11 (offence of using or keeping heavy goods...

8(1) Section 14 (register of levy paid or due to...

9In section 19 (interpretation), in subsection (1), in the definition...

10(1) Schedule 1 (rates of HGV road user levy) is...

11(1) In consequence of the amendments made by paragraph 10,...

12The amendments made by this Schedule come into force on...

Schedule 23Freeports and investment zones: consequential amendments

2In section 61A— (a) in subsection (1), for “freeport tax...

3In section 81— (a) in subsection (1A)(aa), for “freeport tax sites”...

4In section 81ZA— (a) in subsection (1), for “freeport tax...

5In section 85(3), for “freeport tax sites” substitute “special tax...

6In section 86(2)(zb) and (2A), for “freeport tax sites” substitute...

7In section 87(3)(azaa) and (azab), for “freeport tax sites” substitute...

8In Schedule 6C— (a) for paragraph 2 and the italic...

10In section 3— (a) in subsection (2ZZA), for “freeport tax...

11In the following provisions of Part 2 (plant and machinery...

12In section 45Q— (a) in subsection (1)(b), for “the “non-freeport...

13In the following provisions of Part 2A (structures and building...

14In the following provisions of that Part—

15For section 573A substitute— Special tax sites In this Act “special tax site” means an area for...

16In Part 2 of Schedule 1— (a) omit the definition...

18In the italic heading before section 113 at the end...

19In the heading for section 113 (designation of freeport tax...

20National Insurance Contributions Act 2022

21In the italic heading before section 1, for “Freeports” substitute...

22In section 1— (a) in subsections (1)(b) and (6), for...

23In section 2— (a) in subsection (1)—

24In section 3— (a) omit subsection (1),

25In section 5, in the heading, for “freeport tax sites”...

26In section 12(2), omit paragraph (a).

27In section 13(2)— (a) omit the definition of “freeport tax...

Schedule 24Homes for Ukraine Sponsorship Scheme: exemptions from tax

1Income tax and corporation tax

2Annual tax on enveloped dwellings

3Stamp duty land tax

Royal arms

Finance (No. 2) Act 2023

2023 CHAPTER 30

An Act to make provision in connection with finance.

[11th July 2023]

Most Gracious Sovereign

We , Your Majesty’s most dutiful and loyal subjects, the Commons of the United Kingdom in Parliament assembled, towards raising the necessary supplies to defray Your Majesty’s public expenses, and making an addition to the public revenue, have freely and voluntarily resolved to give and to grant unto Your Majesty the several duties hereinafter mentioned; and do therefore most humbly beseech Your Majesty that it may be enacted, and be it enacted by the King’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—