Finance Bill 2021 contents. The bill was published on 11 March 2021 and received Royal Asset on 10 June 2021.
CONTENTS
PART 1 INCOME TAX, CORPORATION TAX AND CAPITAL GAINS TAX
Income tax charge, rates etc
1 Income tax charge for tax year 2021-22
2 Main rates of income tax for tax year 2021-22
3 Default and savings rates of income tax for tax year 2021-22
4 Starting rate limit for savings for tax year 2021-22
5 Basic rate limit and personal allowance for future tax years
Corporation tax charge and rates
6 Charge and main rate for financial years 2022 and 2023
7 Small profits rate chargeable on companies from 1 April 2023 Rate of diverted profits tax
8 Increase in the rate of diverted profits tax
Capital allowances: super-deductions etc
9 Super-deductions and other temporary first-year allowances
10 Further provision about super-deductions etc
11 Reduced super-deduction
12 Disposal of assets where super-deduction made
13 Disposal of assets where SR allowance made
14 Counteraction where arrangements are contrived etc
Capital allowances: other measures
15 Extension of temporary increase in annual investment allowance
16 Meaning of “general decommissioning expenditure”
17 Extensions of plant or machinery leases for reasons related to coronavirus
Reliefs for business
18 Temporary extension of periods to which trade losses may be carried back
19 R&D tax credits for SMEs
20 Extension of social investment tax relief for further two years
Employment income
21 Workers’ services provided through intermediaries
22 Payments on termination of employment
23 Cash equivalent benefit of a zero-emissions van 24 Enterprise management incentives
25 Cycles and cyclist’s safety equipment
26 Exemption for coronavirus tests
27 Optional remuneration arrangements: statutory parental bereavement pay
Pensions
28 Freezing the standard lifetime allowance
29 Collective money purchase benefits
Construction industry scheme
30 Construction industry scheme
Coronavirus support payments etc
31 Covid-19 support scheme: working households receiving tax credits
32 Self-employment income support scheme
33 Deduction where business rates etc repaid
Exemptions from income tax
34 Repeal of provisions relating to the Interest and Royalties Directive
35 Payments made to victims of modern slavery etc
Miscellaneous corporation tax measures
36 Hybrid and other mismatches
37 Relief for losses etc
38 Corporate interest restriction: minor amendments
39 Northern Ireland Housing Executive
Capital gains tax
40 Annual exempt amount
41 Hold-over relief for foreign-controlled companies
PART 2 PLASTIC PACKAGING TAX
42 - 85 Plastic packaging tax
PART 3 OTHER TAXES
Inheritance tax
86 Rate bands etc for tax years 2021-22 to 2025-26
Stamp duty land tax
87 Temporary period for reduced rates on residential property
88 Increased rates for non-resident transactions
89 Relief from higher rate charge for certain housing co-operatives etc
Annual tax on enveloped dwellings
90 Relief for certain housing co-operatives
91 Repayment to certain housing co-operatives: 2020-21 chargeable period
Value added tax
92 Extension of temporary 5% reduced rate for hospitality and tourism sectors
93 Temporary 12.5% reduced rate for hospitality and tourism sectors
94 Extending digital record-keeping for VAT purposes to all businesses
95 Deferring VAT payment by reason of the coronavirus emergency
96 Refunds to S4C
Customs duty
97 Steel removed to Northern Ireland
Fuel duties
98 Restriction of use of rebated diesel and biofuels
Tobacco products duty
99 Rates of tobacco products duty
Vehicle taxes
100 Rates for light passenger or light goods vehicles, motorcycles etc
101 Rebates where higher rate of duty paid
102 HGV road user levy (extension of suspension)
Air passenger duty
103 Rates of air passenger duty from 1 April 2022
Gaming duty
104 Amounts of gross gaming yield charged to gaming duty
Environmental taxes
105 Rates of climate change levy from 1 April 2022 to 31 March 2023
106 Rates of climate change levy from 1 April 2023
107 Rates of landfill tax
108 Repeal of carbon emissions tax
PART 4 MISCELLANEOUS AND FINAL
Freeports
109 Designation of freeport tax sites
110 Capital allowances for freeport tax sites
111 Relief from stamp duty land tax for freeport tax sites
Penalties
112 Penalties for failure to make returns etc
113 Penalties for failure to pay tax
114 Penalties for failure to make returns etc or pay tax: consequential provision
115 Follower notice penalties
Interest
116 Late payment interest and repayment interest: VAT Avoidance
117 Promoters of tax avoidance schemes
118 Disclosure of tax avoidance schemes
119 Penalties for enablers of defeated tax avoidance
120 The GAAR and partnerships
Conditionality
121 Licensing authorities: requirements to give or obtain tax information
HMRC powers
122 Financial institution notices
123 Collection of tax debts
124 Miscellaneous amendments of Schedule 36 to FA 2008
125 International arrangements for exchanging information on the gig economy
126 Unauthorised removal or disposal of seized goods
127 Temporary approvals etc pending review or appeal
Banking
128 Replacement of LIBOR with incremental borrowing rate
129 Tax consequences of reform etc of LIBOR and other reference rates
130 Powers of the Treasury to amend legislation relating to banks
Other
131 Interpretation: lists abbreviations.
132 Short title: This Act may be cited as the Finance Act 202
Schedules
Schedule 1 — Small profits rate for non-ring fence profits
Part 1 — Small profits rate
Part 2 — Amendments of Chapter 3A of Part 8 of CTA 2010
Part 3 — Consequential amendments Part 4 — Commencement etc
Schedule 2 — Temporary extension of periods to which trade losses may be carried back
Part 1 — Income tax
Part 2 — Corporation tax
Schedule 3 — R&D tax credits for SMEs
Schedule 4 — R&D tax credits for SMEs: Northern Ireland companies
Schedule 5 — Pension schemes: collective money purchase benefits
Part 1 — Amendments of Part 4 of FA 2004
Part 2 — Commencement
Schedule 6 — Construction industry scheme: amendments
Schedule 7 — Hybrid and other mismatches
Part 1 — Meaning of “tax”
Part 2 — Meaning of “hybrid entity” and “investor”
Part 3 — Chapter 3 mismatches: relevant debt relief circumstances
Part 4 — Chapter 3 mismatches: Investment trusts
Part 5 — Deemed dual inclusion income
Part 6 — Deemed dual inclusion income: anti-avoidance
Part 7 — Allocation of dual inclusion income within group
Part 8 — Financing cost of loan capital
Part 9 — Chapters 9 and 10: carry forward of illegitimate overseas deduction
Part 10 — Imported mismatches
Part 11 — Meaning of “act together”
Part 12 — Exempt investors in hybrid entities
Part 13 — Interaction with Part 4 of TIOPA 2010 Part 14 — Securitisation companies
Part 15 — Transparent funds
Part 16 — Commencement
Schedule 8 — Relief from corporation tax for losses and other amounts
Part 1 — Allocation of deductions allowance of former groups
Part 2 — Other amendments of CTA 2010
Part 3 — Commencement and transitional provision
Schedule 9 — Plastic packaging tax: secondary liability and assessment notices and joint and several liability notices
Part 1 — Secondary liability and assessment notices
Part 2 — Joint and several liability notices
Part 3 — Application of Schedule 10
Part 4 — Interpretation
Schedule 10 — Plastic packaging tax: recovery and overpayments
Part 1 — Recovery
Part 2 — Repayments
Schedule 11 — Plastic packaging tax: reviews and appeals
Part 1 — Appealable decisions etc
Part 2 — Reviews
Part 3 — Appeals
Schedule 12 — Plastic packaging tax: information and evidence
Part 1 — Information
Part 2 — Evidence
Schedule 13 — Plastic packaging tax: groups of companies
Schedule 14 — Plastic packaging tax: assessment of penalties under section 80
Schedule 15 — Plastic packaging tax: amendments of other legislation
Part 1 — Penalties
Part 2 — Miscellaneous
Schedule 16 — SDLT: increased rates for non-resident transactions
Schedule 17 — SDLT (relief from higher rate charge for certain housing cooperatives etc): minor and consequential amendments
Schedule 18 — Deferring VAT payment by reason of the coronavirus emergency
Schedule 19 — Customs duty: steel products
Schedule 20 — Restriction of use of rebated diesel and biofuels
Schedule 21 — Capital allowances for freeport tax sites
Part 1 — First-year allowance for plant and machinery
Part 2 — Structures and buildings allowances
Part 3 — Related amendments
Schedule 22 — Relief from stamp duty land tax for freeport tax sites
Schedule 23 — Penalties for failure to make returns etc
Part 1 — Introduction
Part 2 — Liability to a penalty
Part 3 — Supplementary provision
Schedule 24 — Penalties for deliberately withholding information
Part 1 — Introduction
Part 2 — Liability to a penalty
Part 3 — Supplementary provision
Schedule 25 — Penalties for failure to pay tax
Part 1 — Introduction
Part 2 — Liability to a penalty
Part 3 — Supplementary provision
Schedule 26 — Schedules 23 to 25: consequential provision
Schedule 27 — Follower notice penalties
Part 1 — Amendment of Chapter 2 of Part 4 of FA 2014
Part 2 — Amendments consequential on Part 1
Part 3 — Amendment of Schedule 20 to FA 2015
Part 4 — Commencement
Schedule 28 — Late payment interest and repayment interest: VAT
Schedule 29 — Amendments of Part 5 of FA 2014
Part 1 — Stop notices and information & inspection powers
Part 2 — Promotion structures
Part 3 — Conduct and monitoring notices: transferees
Part 4 — Miscellaneous amendments
Schedule 30 — Disclosure of tax avoidance schemes
Part 1 — Amendments of Part 7 of FA 2004
Part 2 — Amendments of Schedule 17 to F(No.2)A 2017
Part 3 — Other amendments
Part 4 — Commencement
Schedule 31 — The GAAR and partnerships
Part 1 — New Schedule to FA 2013
Part 2 — Minor and consequential amendments to Part 5 of FA 2013
Schedule 32 — Licensing authorities: requirements to give or obtain tax information
Schedule 33 — Information powers: miscellaneous amendments
