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

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: 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

Capital allowances

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

Leases

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

38.Entrepreneurs’ relief

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

51.Treatment of vouchers

52.Groups: eligibility

Alcohol

53.Rates of duty on cider, wine and made-wine

54.Excise duty on mid-strength cider

Tobacco

55.Rates

56.Tobacco for heating

Vehicle duties

57.VED: rates for light passenger vehicles, light goods vehicles, motorcycles etc

58.VED: taxis capable of zero emissions

59.HGV road user levy

Air passenger duty

60.Rates of duty from 1 April 2020

Gaming

61.Remote gaming duty: rate

62.Gaming duty

Environmental taxes

63.Climate change levy: exemption for mineralogical and metallurgical 
processes

64.Landfill tax rates

Inheritance tax

65.Residence nil-rate band

Soft drinks industry levy

66.Application of penalty provisions

67.Isle of Man

Part 3

Introductory

68.Carbon emissions tax

Charge to tax

69.Charge to carbon emissions tax

70.“Reported carbon emissions”

71.“Emissions report” and “reporting period”

72.“Emissions allowance”

73.Liability to pay carbon emissions tax

Administration etc.

74.Power to make further provision about carbon emissions tax

75.Consequential provision

General

76.Interpretation

77.Regulations

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

85.Section 84: supplementary

Voluntary returns

86.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

91.Interpretation

92.Short title

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

Schedule 18 Gaming duty

Schedule 19 Taxation of hybrid capital instruments

 

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