Finance Act 2020 received Royal Assent on 22 July 2020.
CHAPTER 1
CONTENTS
PART 1
INCOME TAX, CORPORATION TAX AND CAPITAL GAINS TAX
Income tax charge, rates etc
1 Income tax charge for tax year 2020-21
2 Main rates of income tax for tax year 2020-21
3 Default and savings rates of income tax for tax year 2020-21
4 Starting rate limit for savings for tax year 2020-21
Corporation tax charge and rates
5 Main rate of corporation tax for financial year 2020
6 Corporation tax: charge and main rate for financial year 2021
Employment income and social security income
7 Workers' services provided through intermediaries - NEW
8 Determining the appropriate percentage for a car: tax year 2020-21 onwards
9 Determining the appropriate percentage for a car: tax year 2020-21 only
10 Determining the appropriate percentage for a car: tax year 2021-22 only
11 Apprenticeship bursaries paid to persons leaving local authority care
12 Tax treatment of certain Scottish social security benefits
13 Power to exempt social security benefits from income tax
14 Voluntary office-holders: payments in respect of expenses
Loan charge
15 Loan charge not to apply to loans or quasi-loans made before 9 December 2010
16Election for loan charge to be split over three tax years
17 Loan charge reduced where underlying liability disclosed but unenforceable
18 Relief from interest on tax payable by a person subject to the loan charge
19 Minor amendments relating to the loan charge
20 Repaying sums paid to HMRC under agreements relating to certain loans etc
21 Operation of the scheme
Pensions
22 Annual allowance: tapered reduction
Chargeable gains
23 Entrepreneurs’ relief
24 Relief on disposal of private residence
25 Corporate capital losses
26 Quarterly instalment payments
27 Relief from CGT for loans to traders
Reliefs for business
28 Research and development expenditure credit
29 Structures and buildings allowances: rate of relief
30 Structures and buildings allowances: miscellaneous amendments
31 Intangible fixed assets: pre-FA 2002 assets etc
Miscellaneous measures affecting companies
32 Non-UK resident companies carrying on UK property businesses etc
33 Surcharge on banking companies: transferred-in losses
34 CT payment plans for tax on certain transactions with EEA residents
35 Changes to accounting standards affecting leases Investments
Investments
36 Enterprise investment scheme: approved investment fund as nominee
37 Gains from contracts for life insurance etc: top slicing relief
38 Losses on disposal of shares: abolition of requirement to be UK business
PART 2
DIGITAL SERVICES TAX
Introduction
39 Digital services tax: introduction
Digital services revenues, UK digital services revenues etc
40 Meaning of 'digital services revenues'
41 Meaning of 'UK digital services revenues'
42 UK digital services revenues: accommodation and land
43 Meaning of 'digital services activity' etc
44 Meaning of 'user' and 'UK user'
45 Exclusion for online financial marketplaces
Charge to tax
46 Meaning of 'the threshold conditions'
47 Charge to DST
48 Alternative basis of charge
49 Section 47: meaning of 'relevant operating expenses'
50 Relief for certain cross-border transactions
51 When DST is due and payable
Duty to submit returns etc
52 Meaning of 'the responsible member'
53 Continuity of obligations etc where change in the responsible member
54 Duty to notify HMRC when threshold conditions are met
55 Duty to notify HMRC of change in relevant information
56 Duty to file returns
Groups, parents and members
57 Meaning of 'group', 'parent' etc
58 Section 56: meaning of “relevant entity”
59 Continuity of a group over time
60 Treatment of stapled entities
Accounting periods, accounts etc
61 Accounting periods and meaning of 'a group’s accounts'
62 Apportionment of revenues or expenses to accounting period
63 Meaning of revenues arising, or expenses recognised, in a period
64 Meaning of 'the applicable accounting standards' etc
Supplementary
65 Anti-avoidance
66 Notice requiring payment from other group members
67 Interest on overdue DST
68 Interest on overpaid DST etc
69 Recovery of DST liability
70 Minor and consequential amendments
71 Review of DST
General
72 Interpretation of Part
PART 3
OTHER TAXES
Inheritance tax
73 Excluded property etc
74 Transfers between settlements etc
75 Relief for payments to victims of persecution during Second World War era
Stamp duty and stamp duty reserve tax
77 Stamp duty: transfers of unlisted securities and connected persons
78 SDRT: unlisted securities and connected persons
79 Stamp duty: acquisition of target company’s share capital
Value added tax
80 Call-off stock arrangements
Alcohol liquor duties
81 Post-duty point dilution of wine or made-wine
Tobacco products duty
82 Rates of tobacco products duty
Vehicle excise duty
83 Rates for light passenger or light goods vehicles, motorcycles etc
84 Applicable CO2 emissions figure determined using WLTP values
85 Electric vehicles: extension of exemption
86 Motor caravans
87 Exemption in respect of medical courier vehicles
88 HGV road user levy
Hydrocarbon oil duties
89 Rebated fuel: private pleasure craft
Air passenger duty
90 Rates of air passenger duty from 1 April 2021
Gaming duty
91 Amounts of gross gaming yield charged to gaming duty
Environmental taxes
92 Rates of climate change levy until 1 April 2021
93 Rates of climate change levy from 1 April 2021
94 Rates of landfill tax
95 Carbon emissions tax
96 Charge for allocating allowances under emissions reduction trading scheme
Import duty
97 International trade disputes
PART 4
MISCELLANEOUS AND FINAL
Insolvency
98 HMRC debts: priority on insolvency
99 HMRC debts: regulations
Joint and several liability
100 Joint and several liability of company directors etc
General anti-abuse rule
101 Amendments relating to the operation of the GAAR
Compensation schemes etc
102 Tax relief for scheme payments etc
Administration
103 HMRC: exercise of officer functions
104 Returns relating to LLP not carrying on business etc with view to profit
105 Interest on unpaid tax in the case of disaster of national significance
Coronavirus
106.Taxation of coronavirus support payments
107.Enterprise management incentives: disqualifying events
108.Protected pension age of members re-employed as a result of coronavirus
109.Modifications of the statutory residence test in connection with coronavirus
110.Future Fund: EIS and SEIS relief
Preparing for new tax
102 Preparing for a new tax in respect of certain plastic packaging
Local loans
103 Limits on local loans
Other
104 Interpretation
105 Short title: Finance Act 2020
Schedule 1 Workers’ services provided through intermediaries
Schedule 2 The loan charge: consequential amendments
Schedule 3 Entrepreneurs’ relief
Schedule 4 Corporate capital losses
Schedule 5 Structures and buildings allowances
Schedule 6 Non-UK resident companies carrying on UK property businesses etc
Schedule 7 CT payment plans for tax on certain transactions with EEA residents
Schedule 8 DST returns
Schedule 9 DST payment notices
Schedule 10 Digital services tax: minor and consequential amendments
Schedule 11 Private pleasure craft
Schedule 12 Carbon emissions tax
Schedule 13 Joint and several liability of company directors etc
Schedule 14 Amendments relating to the operation of the GAAR