The Finance Act 2019 received Royal Assent on 12 February 2019.
Finance Act 2019
Finance Act 2019
CHAPTER 1
CONTENTS
PART 1
DIRECT TAXES
Charge to tax
1 Income tax charge for tax year 2019-20
2 Corporation tax charge for financial year 2020
Income tax rates, allowances and limits
3 Main rates of income tax for tax year 2019-20
4 Default and savings rates of income tax for tax year 2019-20
5 Basic rate limit and personal allowance
6 Starting rate limit for savings for tax year 2019-20
Employment and social security income
7 Optional remuneration arrangements: arrangements for cars and vans
8 Exemption for benefit in form of vehicle-battery charging at workplace
9 Exemptions relating to emergency vehicles
10 Exemption for expenses related to travel
11 Beneficiaries of tax-exempt employer-provided pension benefits
12 Tax treatment of social security income
Chargeable gains: interests in UK land etc
13 Disposals by non-UK residents etc
14 Disposals of UK land etc: payments on account of capital gains tax
International matters
15 Offshore receipts in respect of intangible property
16 Avoidance involving profit fragmentation arrangements
17 Non-UK resident companies carrying on UK property businesses etc
18 Diverted profits tax
19 Hybrid and other mismatches: scope of Chapter 8 and “financial instrument”
20 Controlled foreign companies: finance company exemption and control
21 Permanent establishments: preparatory or auxiliary activities
22 Payment of CGT exit charges
23 Corporation tax exit charges
24 Group relief etc: meaning of “UK related” company
Corporation tax: miscellaneous
25 Intangible fixed assets: restrictions on goodwill and certain other assets
26 Intangible fixed assets: exceptions to degrouping charges etc
27 Corporation tax relief for carried-forward losses
28 Corporate interest restriction
29 Debtor relationships of company where money lent to connected companies
Capital allowances
30 Construction expenditure on buildings and structures
31 Special rate expenditure on plant and machinery
32 Temporary increase in annual investment allowance
33 First-year allowances and first-year tax credits
34 First-year allowance: expenditure on electric vehicle charge points
35 Qualifying expenditure: buildings, structures and land
Leases
36 Changes to accounting standards etc
Oil activities and petroleum revenue tax
37 Oil activities: transferable tax history
38 Petroleum revenue tax: post-transfer decommissioning expenditure
Miscellaneous reliefs
39 Entrepreneurs’ relief
40 Gift aid etc: restrictions on associated benefits
41 Charities: exemption for small trades etc
PART 2
OTHER TAXES
Stamp duty land tax
42 Relief for first-time buyers in cases of shared ownership
43 Repayment to first-time buyers in cases of shared ownership
44 Higher rates of tax for additional dwellings etc
45 Exemption in respect of financial institutions in resolution
46 Changes to periods for delivering returns and paying tax Stamp duty and SDRT
47 Stamp duty: transfers of listed securities and connected persons
48 SDRT: listed securities and connected persons
49 Stamp duty: exemption in respect of financial institutions in resolution
50 Stamp duty and SDRT: exemptions in respect of share incentive plans
Value added tax
51 Duty of customers to account for tax on supplies
52 Treatment of vouchers
53 Groups: eligibility
Alcohol
54 Rates of duty on cider, wine and made-wine
55 Excise duty on mid-strength cider Tobacco
56 Rates
57 Tobacco for heating
Vehicle duties
58 VED: rates for light passenger vehicles, light goods vehicles, motorcycles etc
59 VED: taxis capable of zero emissions
60 HGV road user levy
Air passenger duty
61 Rates of duty from 1 April 2020
Gaming
62 Remote gaming duty: rate
63 Gaming duty
Environmental taxes
64 Climate change levy: exemption for mineralogical and metallurgical processes
65 Landfill tax rates
Inheritance tax
66 Residence nil-rate band
Soft drinks industry levy
67 Application of penalty provisions
68 Isle of Man
PART 3
CARBON EMISSIONS TAX
Introductory
69 Carbon emissions tax Charge to tax
70 Charge to carbon emissions tax
71 “Reported carbon emissions”
72 “Emissions report” and “reporting period”
73 “Emissions allowance”
74 Liability to pay carbon emissions tax
Administration etc.
75 Power to make further provision about carbon emissions tax
76 Consequential provision
General
77 Interpretation
78 Regulations
79 Commencement and transitional provision
PART 4
ADMINISTRATION AND ENFORCEMENT
Time limits for assessments etc
80 Offshore matters or transfers: income tax and capital gains tax
81 Offshore matters or transfers: inheritance tax
Security deposits
82 Construction industry scheme and corporation tax etc
International agreements
83 Resolution of double taxation disputes
84 International tax enforcement: disclosable arrangements
Payment of unlawful advance corporation tax
85 Interest in respect of unlawful ACT
86 Section 85: supplementary
Voluntary returns
87 Voluntary returns
Interest
88 Interest under section 178 of FA 1989 and section 101 of FA 2009
PART 5
MISCELLANEOUS AND FINAL
Regulatory capital securities
89 Regulatory capital securities and hybrid capital instruments EU withdrawal
90 Minor amendments in consequence of EU withdrawal Preparatory expenditure
91 Emissions reduction trading scheme: preparatory expenditure Reviews
92 Impact analyses of the anti-avoidance provisions of this Act
93 Review of effectiveness of provisions on tax avoidance
94 Review of public health effects of gaming provisions
95 Review of changes made by sections 80 and 81
Other
96 Interpretation
97 Short title
Schedule 1 — Chargeable gains accruing to non-residents etc
Part 1 — Extending cases in which non-residents are charged to tax etc
Part 2 — Consequential amendments
Part 3 — Commencement and transitional provisions etc
Schedule 2 — Returns for disposals of UK land etc
Part 1 — Returns and payments on account: disposals of UK land etc
Part 2 — Notification of chargeable amounts, amendments of returns, enquiries etc
Part 3 — Consequential amendments
Schedule 3 — Offshore receipts in respect of intangible property
Schedule 4 — Avoidance involving profit fragmentation arrangements
Schedule 5 — Non-UK resident companies carrying on UK property businesses etc
Part 1 — Extension of scope of charge
Part 2 — Supplementary & Consequential amendments
Part 3 — Commencement and transitional provisions
Schedule 6 — Diverted profits tax
Schedule 7 — Payment of CGT exit charges
Schedule 8 — Corporation tax exit charges
Part 1 — CT exit charge payment plans
Part 2 — Repeal of certain postponement provisions
Part 3 — Treatment of assets subject to EU exit charges
Schedule 9 — Intangible fixed assets: restrictions on goodwill and certain other assets
Schedule 10 — Corporation tax relief for carried-forward losses
Schedule 11 — Corporate interest restriction
Schedule 12 — Eliminating tax mismatch for certain debt
Schedule 13 — Annual investment allowance: periods straddling 1 January 2019 or 1 January 2021
Schedule 14 — Leases: changes to accounting standards etc
Part 1 — Finance leases: amendments as a result of changes to accounting standards
Part 2 — Long funding leases
Part 3 — Changes to accounting standards and tax adjustments
Schedule 15 — Oil activities: transferable tax history
Part 1 — Election to transfer tax history
Part 2 — The total TTH amount
Part 3 — Effect of a TTH election on the seller
Part 4 — Effect of a TTH election on the purchaser
Part 5 — TTH activation
Part 6 — Allocation of activated TTH amount
Part 7 — Supplementary charge: recalculation of adjusted ring fence profits
Part 8 — TTH elections: conditions and procedure
Part 9 — TTH elections: approval
Part 10 — TTH elections: effective date and withdrawal
Part 11 — TTH elections: inaccuracies
Part 12 — Chargeable gains
Part 13 — Onward sale
Part 14 — Supplementary
Part 15 — Interpretation
Schedule 16 — Entrepreneurs’ relief
Schedule 17 — VAT treatment of vouchers
Schedule 18 — VAT groups: eligibility
Part 1 — Eligibility of individuals and partnerships
Part 2 — Consequential amendments
Schedule 19 — Gaming duty
Schedule 20 — Taxation of hybrid capital instruments
Part 1 — Revocation of special rules for regulatory capital securities
Part 2 — Corporation tax, income tax and capital gains tax
Part 3 — Stamp duty and stamp duty reserve tax
Finance Bill 2019
This is the bill that became the Act (see first tab), it contained measures proposed at Budget 2018 and the majority of measures will apply from the date of Royal Assent to the eventual Finance Act 2019, unless backdated by the legislation.
Finance Bill 2019, or more formally 'Finance (No. 3) Bill (HC Bill 282)' was published on 7 November 2018. It amends and replaces the previous draft bill that was published in July 2018.
CONTENTS
Part 1
Charge to tax
1.Income tax charge for tax year 2019-20
2. Corporation tax charge for financial year 2020
Income tax rates, allowances and limits
3.Main rates of income tax for tax year 2019-20
4.Default and savings rates of income tax for tax year 2019-20
5.Basic rate limit and personal allowance
6.Starting rate limit for savings for tax year 2019-20
Employment and social security income
7.Optional remuneration arrangements: arrangements for cars and vans
8.Exemption for benefit in form of vehicle-battery charging at workplace
9.Exemptions relating to emergency vehicles
10.Exemption for expenses related to travel
11.Beneficiaries of tax-exempt employer-provided pension benefits
12.Tax treatment of social security income
Chargeable gains: interests in UK land etc
13.Disposals by non-UK residents etc
14.Disposals of UK land etc: payments on account of capital gains tax
15.Offshore receipts in respect of intangible property
16.Avoidance involving profit fragmentation arrangements
17.Non-UK resident companies carrying on UK property businesses etc
19.Hybrid and other mismatches: scope of Chapter 8 and “financial instrument”
20.Controlled foreign companies: finance company exemption and control
21.Permanent establishments: preparatory or auxiliary activities
22.Payment of CGT exit charges
23.Corporation tax exit charges
24.Group relief etc: meaning of “UK related” company
Corporation tax: miscellaneous
25.Intangible fixed assets: exceptions to degrouping charges etc
26.Corporation tax relief for carried-forward losses
27.Corporate interest restriction
28.Debtor relationships of company where money lent to connected companies
29.Construction expenditure on buildings and structures
30.Special rate expenditure on plant and machinery
31.Temporary increase in annual investment allowance
32.First-year allowances and first-year tax credits
33.First-year allowance: expenditure on electric vehicle charge points
34.Qualifying expenditure: buildings, structures and land
35.Changes to accounting standards etc
Oil activities and petroleum revenue tax
36.Oil activities: transferable tax history
37.Petroleum revenue tax: post-transfer decommissioning expenditure
Miscellaneous reliefs
39.Gift aid etc: restrictions on associated benefits
40.Charities: exemption for small trades etc
Part 2
Stamp duty land tax
41.Relief for first-time buyers in cases of shared ownership
42.Repayment to first-time buyers in cases of shared ownership
43.Higher rates of tax for additional dwellings etc
44.Exemption for financial institutions in resolution
45.Changes to periods for delivering returns and paying tax
Stamp duty and SDRT
46.Stamp duty: transfers of listed securities and connected persons
47.SDRT: listed securities and connected persons
48.Stamp duty: exemption for financial institutions in resolution
49.Stamp duty and SDRT: exemptions for share incentive plans
Value added tax
50.Duty of customers to account for tax on supplies
Alcohol
53.Rates of duty on cider, wine and made-wine
54.Excise duty on mid-strength cider
Tobacco
Vehicle duties
57.VED: rates for light passenger vehicles, light goods vehicles, motorcycles etc
58.VED: taxis capable of zero emissions
Air passenger duty
60.Rates of duty from 1 April 2020
Gaming
Environmental taxes
63.Climate change levy: exemption for mineralogical and metallurgical
processes
Inheritance tax
Soft drinks industry levy
66.Application of penalty provisions
Part 3
Introductory
Charge to tax
69.Charge to carbon emissions tax
70.“Reported carbon emissions”
71.“Emissions report” and “reporting period”
73.Liability to pay carbon emissions tax
Administration etc.
74.Power to make further provision about carbon emissions tax
General
78.Commencement and transitional provision
Carbon emissions tax
Part 4
Time limits for assessments etc
79.Offshore matters or transfers: income tax and capital gains tax
80.Offshore matters or transfers: inheritance tax
Security deposits
81.Construction industry scheme and corporation tax etc
International agreements
82.Resolution of double taxation disputes
83.International tax enforcement: disclosable arrangements
Payment of unlawful advance corporation tax
84.Interest in respect of unlawful ACT
Voluntary returns
Interest
87.Interest under section 178 of FA 1989 and section 101 of FA 2009
Administration and enforcement
Part 5 Miscellaneous and final
Regulatory capital securities
88.Regulatory capital securities and hybrid capital instruments
EU withdrawal
89.Minor amendments in consequence of EU withdrawal
Preparatory expenditure
90.Emissions reduction trading scheme: preparatory expenditure
Other
Schedules
Schedule 1 Chargeable gains accruing to non-residents etc
Schedule 2 Returns for disposals of UK land etc
Schedule 3 Offshore receipts in respect of intangible property
Schedule 4 Avoidance involving profit fragmentation arrangements
Schedule 5 Non-UK resident companies carrying on UK property
businesses etc
Schedule 6 Diverted profits tax
Schedule 7 Payment of CGT exit charges
Schedule 8 Corporation tax exit charges
Schedule 9 Corporation tax relief for carried-forward losses
Schedule 10 Corporate interest restriction
Schedule 11 Eliminating tax mismatch for certain debt
Schedule 12 Annual investment allowance: periods straddling 1/1/19 or 1/1/21
Schedule 13 Leases: changes to accounting standards etc
Schedule 14 Oil activities: transferable tax history
Schedule 15 Entrepreneurs’ relief
Schedule 16 VAT treatment of vouchers
Schedule 17 VAT groups: eligibility