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